Power Board reports engine fire at local plant; awaits TVA system study for potential new industry

At the Power Board's August meeting, the superintendent reported that one of the utility's generating engines caught fire on June 25 and is being sent out for repair, and board members were briefed that the utility is awaiting a system impact study from the Tennessee Valley Authority for a potential new industrial customer.

The superintendent said the engine damage required taking that unit offline and shipping it — likely to Little Rock — for repairs. "Right now, the estimated repair at this point about $993,000," the superintendent said, adding that each engine costs about $2.5 million. He said the incident is an insurance matter and that the utility expects coverage for repairs and lost revenue. "We get paid $40,000 a month. So we will only get $30,000 a month as long as it's out. But I think the insurance has to pay us loss of revenue," he said.

The report matters because the offline engine reduces local generation capacity and affects the utility's near-term revenue. Board members questioned whether outside investments or TVA projects could relieve capacity constraints. A board member asked whether recent TVA activity at a nearby site — referenced in the meeting as "New Oval" — might help. The superintendent said such projects could help but typically take time and formal agreements to implement.

Board members also discussed the potential for a new industry to connect to the system. The superintendent described the TVA process for evaluating large new loads: he said TVA requires prospective large customers to fund a system impact study — commonly about $20,000 on the front end for initial review — and that larger studies or system upgrades can cost substantially more. "Some of them, depending on the size, the larger you get, some of them will pay up to $300,000," he said. He added that if system upgrades are required, the cost to make those improvements could be in the millions: "you need to pay $3,000,000 for us to make these system improvements to allow it," he said.

No formal board action was taken on the engine repair or on any potential industrial customer during the meeting. The board approved the July 7 meeting minutes on a voice vote after Miss Austin moved adoption.

The superintendent said he had a meeting scheduled the following day with representatives of the prospective industrial customer and that TVA had completed an initial study "with no nothing that would stand in the way of it," though the board was still awaiting a formal system impact study. The superintendent characterized next steps as negotiation and contract work if the parties reach agreement.

The meeting ended with no further business; the board scheduled its regular meeting for 6 p.m. later the same day.