FERC okays gas pipeline to support partial repower of TVA’s Paradise coal plant

The members of the Federal Energy Regulatory Commission at their Jan. 21 meeting approved a March 2015 application from Texas Gas Transmission LLC for certificate authorization to construct and operate its Western Kentucky Lateral Project, which will provide service for the partially repowered Paradise plant of the Tennessee Valley Authority.

The Paradise plant is located in Muhlenberg County, Kentucky. TVA plans to shut two of three coal units at the site and build new gas-fired capacity to replace those two units. The 1,150-MW Unit 3 would remain in operation on coal. Notable is that the Kentucky Coal Association, which has failed to get TVA’s repower decision struck down in federal court, intervened in this FERC proceeding.

Texas Gas transports natural gas in interstate commerce for customers in Texas, Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, Indiana, Illinois, and Ohio. It plans to construct and operate the Western Kentucky Lateral to provide 230,000 dekatherms per day (Dth/d) of firm natural gas transportation service for TVA at Paradise.

Texas Gas will construct an approximately 22.5-mile, 24-inch-diameter natural gas pipeline lateral that will extend from its Midland 3 Compressor Station to the proposed interconnection with the TVA’s Paradise Plant. At the proposed interconnection, Texas Gas will construct a meter and a regulator station, as well as appurtenant auxiliary facilities.

The Western Kentucky Lateral will have a total design capacity of 230,000 Dth/d. Texas Gas and TVA executed a binding 20-year precedent agreement for 230,000 Dth/d of firm natural gas transportation service using the proposed Western Kentucky Lateral. Texas Gas estimates that the Western Kentucky Lateral will cost $81 million.

Says the TVA website about this plant: “TVA’s Paradise Fossil Plant is located in western Kentucky on the Green River near the village of Paradise. The plant has three units and three large natural-draft cooling towers. … Units 1 and 2 went on-line in 1963, each with a generation capacity of 704 megawatts. At the time, they were the largest operating units in the world. A third unit became operational in 1970, with a capacity of 1,150 MW. … Paradise units 1 and 2 will be idled by the end of 2017. Unit 3 will continue operation. TVA is investing approximately $1 billion to build a gas-fired plant that will replace Paradise units 1 and 2. The new plant will be a 3×1 (three gas units and one steam unit) combined-cycle facility with 1,100 megawatts of power capacity.”

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.