TVA would purchase the asset from an affiliate of Quantum Utility Generation, which acquired the power plant three years ago from GDF Suez North America.
The transaction has an estimated value of US$340 million.
TVA directors has also approved a plan to enter into a 20-year power purchase agreement (PPA) with NextEra Energy for an 80 MW solar power facility in northern Alabama.
Since 2007, TVA has built or bought five combined-cycle gas plants with 3,900 MW of capacity. During the last year, TVA has approved the development of two more gas plants to replace aging coal-fired plants.
We have recently reported about several power transactions in the USA: