MEMPHIS, TN (WMC) - A natural gas plant was unveiled in Memphis on Thursday.
According to the Tennessee Valley Authority, the Allen Combined Cycle Natural Gas Plant is more energy efficient and is also better for the environment.
The plant became operational in April of this year.
“The 1,100 megawatts that we’re able to produce out of this plant can serve about 100,000 homes,” said TVA Senior Vice President of Power Operations Jacinda Woodward.
Woodward said the company decided on this location for several reasons, and one of those is its proximity to MLGW.
"MLGW is the largest customer that we have,” Woodward said. “There's lots of need for megawatts in this area."
Earlier this year, MLGW’s former CEO signed a letter of intent saying the utility company would begin talks with a nuclear power group, moving MLGW away from TVA.
"We want to make sure that our customers have reliable energy supply at a reasonable cost so we're continuing to do that evaluation,” said current MLGW CEO and President J.T. Young. “That's going to take us some time."
Young said the partnership with TVA, which is decades long, has been a good one so the company isn't making any decisions just yet.
"Our customers have received great value from TVA,” Young said. “Our costs are the lowest in the valley and among the lowest in the nation and it's very reliable."
This is the seventh gas plant TVA has put online since 2007.
MLGW supplies the plant with water and gas needed to operate.