BUSINESS

TVA Keeps Coal Plants Open Amid Rising Demand

PUBLISHED Feb 10, 2026, 2:43 PM ET

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NASHVILLE, Tenn. The Tennessee Valley Authority this week announced it will retain its Kingston and Cumberland coal-fired plants, reversing prior closure plans, while pursuing new natural gas generation and battery storage to meet rising electricity demand from data centers and population growth. TVA filed a supplemental environmental impact statement in February 2026 and submitted filings asking the board to remove scheduled retirement dates. The board voted unanimously to extend coal operations and approved a 150-megawatt power increase for xAI in Memphis under contractual conditions. Decision drew debate. Environmental groups criticized the reversal. Based on 6 articles reviewed and supporting research.

By Daniel Hayes | JQJO News

Timeline of Events

TVA had previously targeted retirement of remaining coal units by 2035 as part of emissions reduction goals.
April 2024: TVA announced intent to retire Kingston units by the end of 2027.
February 2026: TVA published a supplemental environmental impact statement preferring to keep Kingston online and canceling a planned solar facility.
TVA filed board documents proposing removal of retirement dates for Kingston and Cumberland while planning gas and storage additions.
TVA board met and voted unanimously to extend coal operations and approved a 150-megawatt firm power increase for xAI.

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Who Benefited

Large electricity customers, including data centers and xAI, benefit from increased firm power allocations and extended plant operations that provide additional capacity and reliability to support growth.

Who Impacted

Local communities and environmental organizations suffered potential increased emissions exposure and the setback of delayed clean-energy transitions after TVA reversed planned coal plant retirements and canceled a proposed solar project.

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