TVA raises coal ash spill cost to $1.2B, reports 3Q loss
By DUNCAN MANSFIELD (AP) KNOXVILLE, Tenn. — The Tennessee Valley Authority raised its estimates for cleaning up a massive coal ash spill to $1.2 billion on Friday, and partly blamed its third-quarter loss of $167 million on that cleanup. Officials also suggested a rate increase could be looming. The nation’s largest public utility said in a filing to the Securities and Exchange Commission that the tab could reach $933 million to $1.2 billion to restore the Kingston, Tenn., community after 5.4 million cubic yards of toxic ash breached a holding pond at a coal-fired power plant on Dec. 22. No one was injured, but the spill of millions of tons of ash and sludge swept into a river, damaged two-dozen homes, covered 300 acres, raised health concerns throughout the community and brought congressional attention to the lack of regulation of similar sites around the country. TVA’s latest cleanup estimate is at least $200 million higher than previous calculations and still doesn’t include potential fines, penalties, or the outcome of seven federal lawsuits filed by residents. “This range could change significantly depending on whether new coal ash laws and regulations are implemented at the state or federal level,” said the report from TVA Chief Financial Officer Kim Greene. The cleanup cost also “is in large part dependent on the final disposal plan, which is still in development by TVA and by regulatory authorities,” the report said. TVA told the SEC it has spent $143 million so far on the spill, but recognizes at least $933 million in potential cleanup expenses. …
