TVA completes financing to lease Sevier plant
KNOXVILLE, Tenn. (AP) - The Tennessee Valley Authority says it has completed the financing needed to lease the John Sevier plant in Rogersville, Tenn.
The federal utility said Tuesday it will receive $1 billion for leasing the plant to John Sevier Combined Cycle Generation LLC. TVA will complete the 880-megawatt natural gas-fired plant, then lease it for 30 years.
The plant, to be operated by TVA, is scheduled to begin commercial operation this summer. TVA will assume ownership after 30 years.
Financing for the lease purchase consists of a $100 million equity investment and a $900 million bond issue, both secured by TVA's rental payments.
TVA said it has used leasing to fund capital investment projects in the past, along with traditional power bonds, and other third-party financing arrangements such as power prepayments.
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