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Condition of Coal Plant Assets

Report Information

Date Issued
Report Number
2026-17610
Report Type
Inspection / Evaluation
Description
The Tennessee Valley Authority (TVA) has four coal plants that include 24 units with a combined net capacity of 5,815 megawatts.  These coal plants have operated well beyond their original book life and are among the oldest still in operation in the nation. Due to the performance and cost risks of operating an aging coal fleet, we performed an evaluation of coal plant asset condition to determine if TVA had assessed the condition of assets and had plans in place to address degradation.   We determined that TVA did not assess the condition of some assets annually, as required.  We also determined that some assets were not properly classified as “Tier 1” critical assets in TVA’s asset management system and/or tracked in the Generation Asset Health dashboard.  In addition, while TVA has plans to address some asset degradation, there are several assets in poor condition without a plan for remediation. 
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0

Recommendations

We recommend the Vice President, Coal Operations, take steps to ensure asset condition of Tier 1 assets are assessed annually.

We recommend the Vice President, Coal Operations, take steps to ensure assets are accurately classified and tracked as required.

We recommend the Vice President, Coal Operations, evaluate assets in poor condition at Shawnee and Gallatin without a planned project to determine if near-term actions are needed to address degradation.

We recommend the Vice President, Coal Operations, verify the completed project plans for Kingston and Cumberland properly address assets in poor condition.