TVA Buys Gas Plant

The Tennessee Valley Authority says it has completed the purchase of a natural gas-fired power plant in northern Mississippi.

The deal with Kelson Limited Partnership was adopted by the TVA board Aug. 18 after approval by the Federal Energy Regulatory Commission a day earlier.

The federal utility said Wednesday it paid $436 million for the Magnolia Combined Cycle Gas Plant near Ashland, Miss.

The plant uses a method in which gas is burned to generate electricity and the heat of that process is captured and used to create steam to drive another set of generators.

The plant can generate 968 megawatts, making it the largest TVA-owned combined-cycle gas plant.

The gas-fired plants are used during periods of sustained high power demand.