Knoxville News-Sentinel
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TVA wins delay on adding emissions controls

Agency avoids about $800,000 a month in fines

August 24, 2000

By Richard Powelson

The Tennessee Valley Authority has won a delay in the effect of a federal order that would force additional, expensive emissions controls at seven coal-fired power plants, avoiding at least temporarily the potential for about $800,000 a month in fines.

TVA has said it already has spent about $2.5 billion on pollution controls at the plants in Tennessee, Kentucky and Alabama since 1969, and earlier sued the Environmental Protection Agency to appeal an order requiring extra controls that TVA estimated would cost about $1 billion more. That higher cost, in TVA's view, is not required by federal law and could force a 14 percent rate hike, the agency has estimated.

Spokesman John Moulton of TVA's Knoxville headquarters confirmed Wednesday that the agency won the stay or delay in federal appeals court in Atlanta Aug. 17 based on a request filed May 4. A hearing on the merits of TVA's suit is set for Nov. 8.

Moulton said TVA is committed to meeting the federal Clean Air Act and helping the seven states in its service area comply with the act. But the EPA order, in TVA's view, went well beyond requirements of the act, prompting TVA's lawsuit in May, he said.

EPA spokeswoman Tanya Meekins said the stay issued by the Atlanta court allows TVA for now to avoid potential fines of $27,500 a day for noncompliance -- or about $800,000 a month. But she had no immediate comment on the court action.

Earlier, EPA said that TVA was among major power producers that for 20 years have been upgrading old coal-fired plants to extend their lives but were not complying with emissions standards for newer plants.

TVA maintains that it did only "normal maintenance" on its old plants, which is allowed under the Clean Air Act, without triggering greater reductions in emissions. The work was not "upgrades," Moulton said.

As an example of TVA's emissions work, Moulton said the agency is involved in adding $750 million to $850 million worth of pollution control equipment by 2005. The work on 18 units at six coal-burning plants will reduce smog-producing nitrogen oxides by 75 percent by 2005, Moulton said, helping states in TVA's service area to meet their federal mandate for cutting emissions contributing to harmful ground-based ozone.

Gaining the stay of EPA's order also allows TVA to avoid spending a lot of time documenting its maintenance and equipment replacement work at its coal-fired plants for the last 20 years, Moulton said.

"It was a favorable ruling for us," he said.

Separately, an appeals board within EPA is considering TVA's appeal and has said a decision will be issued by Sept. 15. However, TVA officials have not expected relief from the appeals board, leading to their May decision to appeal to federal court.