Paradise-Gas Addition & Coal Retirements

Nov. 14, 2013 

Fact Sheet 

The TVA board of directors on Nov. 14, 2013, approved a resolution to build a gas plant at 

Paradise Fossil Plant and retire coal Units 1 and 2 when the gas plant is available. Coal-fired 

operation will continue at Paradise Unit 3, one of TVA’s largest coal units. 

Background 

As part of a thorough evaluation of its entire fleet, TVA has been evaluating potential future 

investments at Paradise to meet stricter EPA Mercury and Air Toxics Standards (MATS) 

regulations. As a result, TVA is moving toward what it considers an ideal generating fleet that is 

cost-effective, efficient, clean and diversified in order to continue to provide low rates and high 

reliability. 

The Paradise decision considered risks and benefits related to demand for power, fuel costs, 

construction costs, anticipated future regulations and impact to our employees and 

communities around Paradise. 

 In the end, building a gas plant was the best long-term decision when all the benefits and risks 

were weighed and presented the best option for cleaner generation, while providing more 

flexibility to quickly meet peak loads during the day and come offline quickly at night when loads 

drop significantly. 

TVA is confident that this option fulfills the needed generation in this area in the most effective 

way so that we can continue to bring reliable, low-cost energy to the people of the Tennessee 

Valley. 

Key points 

 TVA recognizes that workers are impacted by these decisions. As we have done at John 

Sevier, Johnsonville and other sites across the Valley impacted by changes, our Human 

Resources and Labor Relations representatives will communicate with employees to 

provide timely information and work with those impacted. 

 The approximately $1 billion investment in building gas-fired units in Muhlenberg County, 

Ky., will help TVA achieve its vision of being one of the nation’s leaders in providing lowcost, cleaner power. 

 Coal will remain an important part of TVA’s overall generation mix for the foreseeable 

future. 

 TVA has taken numerous steps, including scrubber upgrades on Paradise units 1 & 2 in 

2012, to greatly reduce emissions at Paradise. However, additional controls are needed 

on these units to meet more stringent EPA Mercury and Air Toxics Standards (MATS) 

regulations. 

 Paradise Unit 3 already meets the stricter MATS regulations and does not currently 

require environmental upgrades. It will continue to run. 

 Paradise Units 1 and 2 will be retired when the gas plant is available. These retirements 

will add another 1,400 megawatts of retired coal to our prior EPA commitment as we 

work to provide cleaner energy. 

 As a result of lower demand, more stringent regulations, and other factors, TVA now has 

either retired or announced pending retirements of 26 coal units totaling more than 5,600 

megawatts at its Colbert, John Sevier, Johnsonville, Paradise and Widow’s Creek fossil 

plants. 
 Paradise-Gas Addition & Coal Retirements

Nov. 14, 2013 

Fact Sheet 

 These actions will result in lower air emissions, less dependence on coal and more 

reliance on cleaner power sources and greater energy efficiency – all key components of 

TVA’s vision, Integrated Resource Plan and business strategy. 

Other information 

 Paradise Fossil Plant, located on the Green River in western Kentucky’s Muhlenberg 

County, has three generating units with a summer net capability of 2,201 megawatts. 

 Paradise typically generates 14 billion kilowatt-hours of electricity each year, enough to 

supply more than 950,000 homes. 

 TVA began construction on Paradise Fossil Plant in 1959 and completed Units 1 and 2 

in 1963. Unit 3 was completed in 1970. 

 Units 1 and 2 have a rated capacity of 704 megawatts each, and Unit 3 has a rated 

capacity of 1,150 megawatts. 

 Paradise has nearly 400 full-time employees with an annual payroll of about $30 million. 

Unit 3 employs approximately 160 people and generates around 5 million MWH’s of 

electricity per year. The unit burns approximately 2.5 million tons of coal, about 88 

percent of which is from Kentucky mines. 

 Paradise’s peak coal consumption is about 20,000 tons of coal a day. The plant used 

6.15 million tons of Kentucky coal in FY12, 88 percent of it from Western Kentucky. 

 TVA made $13.19 million in tax equivalent payments to Muhlenberg County in FY12. 

 

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