The TVA board of directors approved plans to reduce the values of its assets by an estimated $3.4 billion. After the reduction, the total value of TVA's assets would be $29.7 billion.
The move is designed to bring the plants more in line with market value.
"These adjustments will more accurately reflect the value of our assets and help TVA maintain competitive prices in the electricity marketplace of the future," TVA Chairman Glenn McCullough Jr. says in a prepared statement.
The properties are Watts Bar nuclear plant Unit 2, $1.72 billion; Bellefonte nuclear plant, $500 million; the canceled Hartsville, TN-based nuclear plant, $410 million; and deferred debt-refinancing costs, $789 million. The move doesn't preclude TVA from making the assets productive in the future.
However, the 1,942-acre Hartsville (TN) site may have a future as an industrial or business park. The TVA's Hartsville site development team is trying to establish a local economic development authority that would market the property to industrial prospects, TVA spokesman John Moulton tells GlobeSt.com.
Under the proposal, about 600 acres would be subdivided into parcels of varying size to accommodate needs of different businesses and industries.
"TVA would make the entire property available to the local group and would transfer ownership as each parcel is sold for development," Moulton says.
Details have not been worked out but the team hopes to have a proposal for TVA board next year, says Moulton. The TVA board would have to approve the transfer of land.
The slowing economy hasn't changed the plans to develop the site, but it could have an impact on how quickly the team can find prospects, he notes.
"Assuming a slump continues, it could affect marketing efforts as the development authority begins to promote the site to prospects," Moulton says.
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