The Tennessee Valley Authority (TVA) Board of Directors voted May 5 to approve a long-term service agreement with General Electric (NYSE:GE) for three natural gas power plants.
The long-term contracts involve the Magnolia combined-cycle plant in Mississippi; the Southaven combined-cycle plant in Mississippi and the Caledonia combined-cycle plant in Mississippi.
The TVA approved a fleet-wide non-nuclear maintenance and modifications contract with G-UB-MK.
Based in Louisville, Tenn., G•UB•MK is comprised of three companies: Worley Parsons Group, Williams Plant Services LLC and URS Corporation. Together, the collaborative G•UB•MK team provides construction and supplemental maintenance services for the TVA hydro and coal fueled plants. That’s according to the company website.
TVA is cutting its monthly fuel cost adjustment in May to the lowest level in six years. The overall system average fuel rate is approximately 34% lower than the thee-year average. The lower cost is driven by recent mild weather and lower natural gas prices.
On another issue, TVA President and CEO Bill Johnson lamented the dry weather that has hurt TVA hydroelectric output. “It’s been a very dry winter and spring,” Johnson said. “We are literally praying for rain.”
The TVA board met May 5, 2016, at Paris Landing State Park in Paris, Tenn.