TVA to Build Natural Gas Plant in Lowndes County, Mississippi

KNOXVILLE, Tenn. — Following a multi-year process that included public input and participation, the Tennessee Valley Authority has selected the option to construct and operate a simple cycle, frame combustion turbine facility at the New Caledonia site in Lowndes County, Mississippi. When complete, the new facility’s six units will add approximately 500 megawatts to the grid.

TVA has signed the Record of Decision (ROD) for the construction and operation of a simple cycle combustion turbine (CT) plant on a parcel of TVA-owned land known as the New Caledonia (NCG) Site. TVA is announcing this decision after a thorough environmental review and stakeholder engagement process. The Final Environmental Impact Statement was released on TVA’s website on January 6, 2025, and is expected to be published in the Federal Register by February 28, 2025. For more information, read the Record of Decision and other related documents found at tva.com/nepa. 

The NCG Site is located in Lowndes County, Mississippi, approximately 10 miles northeast of Columbus. The site has been vacant since 2007, when a private company dismantled their CT facility located on the property. With this decision, TVA will bring new power generation to the area and utilize existing natural gas and transmission infrastructure at the 145-acre site, including the adjacent substation property, which remains in operation.

“TVA is taking a holistic approach to our generation portfolio to ensure that we are doing our part to drive economic development and to make Mississippi the best place to live, work and raise a family,” said Amy Tate, Southwest Region executive. “We are adding the New Caledonia site to our portfolio to enable ongoing and future growth, focusing on more efficient energy generation while maintaining low rates and reliable power for people we are privileged to serve.”

“The Town of Caledonia is very excited to have the TVA Project, New Caledonia, coming to our community,” said Betty Darnell, Mayor, Caledonia. “Caledonia welcomes and supports this project. We welcome all of the TVA staff and construction workers who will be a part of our community and town during the construction phase as well as future operations. We look forward to them and their families becoming a part of us as long as they are here to bring this project to completion. We thank TVA for choosing to use this site as a vital energy system.”

“Lowndes County is excited about the New Caledonia combustion turbine plant project and the continued commitment demonstrated by TVA to increase capability and additional capacity to their footprint,” said Trip Hairston, President, Lowndes County Board of Supervisors. “Additionally, this project will continue to benefit the ever-increasing economic development and recruitment efforts in the Golden Triangle.”

CTs are needed to provide dispatchable generation capacity to ensure that TVA can reliably meet required year-round generation, maximum capacity system demands and planning reserve margin targets and comply with the requirement under the TVA Act that power be sold at rates as low as feasible. Additionally, CTs enable more renewables to be brought on to the system without compromising reliability.

About TVA

The Tennessee Valley Authority is the nation’s largest public power supplier, delivering energy to more than 10 million people across seven southeastern states. TVA has one of the most diverse energy systems – including nuclear, hydro, solar, gas, and advanced technologies. To prepare for the future, TVA is making significant investments in its power system toward new generation and transmission.

TVA is a corporate agency of the United States, receiving no taxpayer funding, deriving virtually all of its revenues from sales of electricity. TVA maintains some of the lowest energy costs and highest reliability in the nation. TVA’s retail rates are lower than 80 percent of the rest of the nation, while its industrial rates are lower than 95 percent of the top utilities. In addition, TVA provides flood control, navigation, and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation.