TVA buying former Enron gas-fired plant

CHATTANOOGA, Tenn. (AP) -- The Tennessee Valley Authority plans to buy a second Enron Corp.-built gas-fired plant to reduce its reliance on other electricity producers.

Six years after the collapse of Enron, TVA has agreed to pay $55 million to Duke Energy Corp., for the 480-megawatt, natural-gas fired plant at Brownsville.

The plant is similar to another Enron-built gas plant TVA bought in December 2006 in Gleason for $23 million.

TVA is making its fourth purchase of a gas-fired power plant site in the past two years in efforts to boost its own power capacity.

Enron is estimated to have spent about $200 million to build each of the two plants shortly before filing for bankruptcy in late 2001.

Information from: Chattanooga Times Free Press,

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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