Tennessee Valley Authority Keeps Coal Plants Open to Meet Growing Electricity Demand

Decision driven by need for affordable and reliable power, especially for data centers

Feb. 17, 2026 at 1:15pm

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The Tennessee Valley Authority (TVA) will keep two of its largest coal-fired power plants, Cumberland Fossil Plant and Kingston Fossil Plant, running longer than originally planned. TVA says this decision is driven by 'rapidly growing electricity demand,' particularly from data centers in the region. While new natural gas plants are coming online, TVA believes coal ensures power stays 'affordable and reliable' for its 10 million customers.

Why it matters

Some environmental groups have criticized the decision, arguing that the pollution from the aging coal plants outweighs the benefits. However, TVA and local utilities say the coal plants are critical for grid stability, fuel price hedging, and supporting cooperative and municipal utilities that rely on TVA's wholesale pricing.

The details

The Cumberland Fossil Plant and Kingston Fossil Plant are among the largest coal generators in TVA's fleet. They serve local utilities like Upper Cumberland Electric Membership Corp., Cookeville Electric Department, and Volunteer Energy Cooperative, which cover parts of the Upper Cumberland region. TVA says keeping these coal plants operational helps stabilize wholesale power prices, reduce the need for expensive emergency power purchases, and avoid costly transmission upgrades that could lead to rate increases for residential and small business customers.

  • TVA announced the decision to keep the coal plants open in February 2026.

The players

Tennessee Valley Authority (TVA)

A federally-owned electric utility that provides power to 10 million customers across seven states in the Southeastern United States.

Upper Cumberland Electric Membership Corp.

A rural electric cooperative that supplies parts of Jackson, Overton, Putnam, Smith and other counties in the Upper Cumberland region of Tennessee.

Cookeville Electric Department

The municipal electric utility that serves the city of Cookeville, Tennessee and the surrounding areas.

Volunteer Energy Cooperative

A rural electric cooperative that covers portions of Cumberland County, Tennessee and nearby communities.

Bri Knisley

Director of Public Power Campaigns at Appalachian Voices, an environmental advocacy group.

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What’s next

TVA has not announced any specific future plans or timelines related to the continued operation of the Cumberland Fossil Plant and Kingston Fossil Plant.

The takeaway

This decision by TVA highlights the ongoing debate between prioritizing affordable and reliable electricity versus transitioning to cleaner energy sources. While the coal plants support local jobs and grid stability, environmental advocates argue the pollution and long-term costs outweigh the benefits, especially as renewable energy technologies continue to advance.