SOUTHAVEN, Miss. - The Tennessee Valley Authority has made a lease-purchase agreement to buy the majority share of a natural-gas fired power plant in Southaven.
TVA and Seven States Power Corp., a group owned by TVA distributors, had bought the Southaven Combined Cycle Plant just south of Memphis in 2008. TVA owned 10 percent, while Seven States owned 90 percent.
Seven States is selling its share to TVA for $400 million. TVA is getting the money from a group of private investors, who will in turn get lease payments from TVA for 20 years. The federal power agency will own the plant at the end of the lease.
By using a lease, the borrowing doesn't count against TVA's $30 billion debt cap.
Seven States members will use the money to improve energy efficiency.