FERC okays certificate on extra gas pipeline capacity needed for TVA’s new Allen plant

The Federal Energy Regulatory Commission on Sept. 22 approved a Jan. 20 application from ANR Pipeline Co. for a certificate of public convenience and necessity on a new compressor station and modification of an existing meter station in Tennessee (called the Collierville Expansion Project), with this project needed to supply a new, gas-fired power plant of the Tennessee Valley Authority.

ANR owns and operates a 9,400-mile-long pipeline system extending from Texas and Oklahoma to points in Wisconsin and Michigan, and includes producing areas in the Gulf of Mexico. ANR’s existing Collierville Meter Station is located on its 30-inch-diameter Southeast Mainline aparallel 30- and 36-inch-diameter looping pipelines near Memphis in southwestern Tennessee.

The Tennessee Valley Authority (TVA) is constructing a 1,070-MW combined cycle gas-fired plant in Memphis called the Allen CC Project. It will repace coal-fired capacity at the same site. The Allen CC Project will enable TVA to meet a portion of its current and future electric demands.

ANR proposes to construct and operate a new 4,700 horsepower compressor station consisting of one gas-fired turbine compressor unit and appurtenant facilities close to the existing Collierville Meter Station near Memphis in Shelby County. ANR also proposes to modify the Collierville Meter Station to install a 12-inch ultrasonic meter run on an existing spare meter header, as well as other related facilities.

The Collierville Expansion Project will increase the delivery capability of the Collierville Meter Station by 200,000 dekatherms (Dth) per day to 300,000 Dth per day, enabling ANR to transport 200,000 Dth per day on a firm basis from its Southeast Head Station in Louisiana to Memphis Light, Gas and Water’s high-pressure local distribution system. In turn, Memphis Light will transport the gas to TVA for delivery to the Allen CC Project.

Prior to holding an open season, ANR and TVA executed a binding precedent agreement for a 20-year term for all of the service associated with the project. ANR subsequently held an open season in October 2015 to solicit interest for additional service. TVA was the sole bidder in ANR’s open season.

ANR estimates the cost of this expansion project to be $36,765,000.

Said the TVA website: “TVA’s Allen Fossil Plant is located on 500 acres on McKellar Lake, five miles southwest of downtown Memphis. Memphis Light Gas & Water built the plant, with construction beginning in 1956, and all three of its units were generating power by October 1959. The plant was leased to TVA in 1964, and TVA purchased it outright in 1984. … Allen’s three units have a total summer net capability of 741 megawatts. … Allen’s three coal-fired units are scheduled to be retired by June 2018 and replaced with a cleaner natural gas generators that will help ensure low-cost and reliable electricity for the greater Memphis area and TVA’s western service territory.”

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.