TVA, Calpine Energy Services to Sign Power Purchase Agreement
May 14, 2002
TVA and Calpine Corporation plan to implement an agreement that will provide TVA with the right to purchase up to 500 megawatts of power per day from June 1, 2004 through May 31, 2007.
Under the purchase agreement, Calpine would sell TVA power from its Decatur Energy Center, a natural-gas-fired combined-cycle plant nearing start-up in Decatur, Ala. TVA would purchase the power to meet anticipated future power supply needs in the Tennessee Valley.
Officials from TVA and Calpine signed a confirmation letter to enter into the power purchase agreement as a result of Calpine’s response to a TVA request for proposals issued in January 2001. In response to its request to provide up to 600 MW of base-load capacity beginning in 2004 for 15 years, TVA received approximately 45 proposals from more than 15 bidders.
After a detailed analysis of the base-load proposals as well as unsolicited proposals that were submitted, TVA staff concluded that the proposal from Calpine will provide the most value to TVA.
TVA is the nation’s largest public power producer, and its power system is self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
Kay Whittenburg, Chattanooga (423-751-7152) or TVA News Bureau, Knoxville (865-632-6000)
