TVA Asks NRC To Reinstate Bellefonte Construction Permits

Evaluating Feasibility of Existing Assets as Future Generation Resource

August 27, 2008

HOLLYWOOD, Ala. – TVA has asked the Nuclear Regulatory Commission to reinstate the construction permits for its two unfinished nuclear units at the Bellefonte site in North Alabama as part of efforts to evaluate the feasibility of completing them to meet future power needs.

No decision has been made to complete the Bellefonte units or to add any base load generating units beyond completing Unit 2 at Watts Bar Nuclear Plant in Spring City, Tenn. However, power supply studies show that additional generation is needed every five to seven years to meet the growing power demand in the Tennessee Valley. TVA continues to evaluate different ways to meet the growing demand.

TVA also is continuing to support NuStart and pursue a combined operating license for two advanced-design nuclear units at Bellefonte as its primary option for providing needed generating capacity for the future.

“We intend to thoroughly explore potential power supply sources to determine the best and most cost-effective methods of meeting future power needs in the Tennessee Valley,” said TVA Chief Operating Officer Bill McCollum. “That includes energy efficiency and demand reduction, which we are currently pursuing aggressively, as well as adding new generating units as the demand for power grows.“

McCollum said that it makes good business sense to look at existing TVA assets at Bellefonte and evaluate them along with other power supply alternatives. Reinstating the construction permits is the first step in helping TVA determine if completing the units is viable, he said.

“As we look for the best choice for new base load generation we recognize that nuclear fuel costs are much more stable over the long term than what we’ve recently experienced with coal prices,” McCollum said. “Nuclear power is safe and reliable, reduces our carbon footprint and will help stabilize energy costs.”

TVA deferred construction on Units 1 and 2 at Bellefonte in the late 1980s. The NRC approved TVA’s request to cancel the construction permits in early 2006.

“Restoring the construction permits would place the units in a deferred status again with the NRC,” said TVA Senior Vice President of Nuclear Generation Development & Construction Ashok Bhatnagar. ”Reinstating the permits now would help TVA clarify the regulatory requirements and continue to evaluate the feasibility of using Units 1 and 2 to meet future base load power demand.”

The NRC is currently reviewing TVA’s application for a combined operating license for two new nuclear units at Bellefonte. TVA’s application for two AP1000 reactors was filed in conjunction with the NuStart Consortium of nuclear utilities and is the reference application for the Westinghouse design for an advanced nuclear plant.

TVA is the nation’s largest public power provider and is completely self-financing. TVA provides power to large industries and 159 power distributors that serve approximately 8.8 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.

Media Contact:

Terry Johnson, Chattanooga, (865) 632-6875
TVA News Bureau, Knoxville, (865) 632-6000

TVA Newsroom