February 17, 2026 - The Tennessee Valley Authority (TVA) will keep two of its largest coal-fired power plants running longer than planned, including the Cumberland facility serving much of the eastern Upper Cumberland.

Those two plants (Powell Creek and Cumberland) are among the largest coal generators in TVA’s fleet. Why is TVA keeping the plants open? Officials say the move is driven by “rapidly growing electricity demand,” especially from data centers. While new natural gas plants are coming online to allow service flexibility, TVA says coal ensures power stays “affordable and reliable” for 10 million customers.

The Cumberland Fossil Plant near Cumberland City and the Kingston Fossil Plant serve local utilities, including:

• Upper Cumberland Electric Membership Corp. – Supplies parts of Jackson, Overton, Putnam, Smith and other counties.

• Cookeville Electric Department – Serves Cookeville city and the surrounding areas.

• Volunteer Energy Cooperative – Covers portions of Cumberland County and nearby communities.

Some environmental groups say the pollution isn’t worth the reward, and that the decision raises long-term strategy concerns, including hidden costs to customers.

They claim coal plants:

• Are expensive to maintain, upgrade and operate as they age

• Costs can be passed onto residential and small business customers in the form of higher electricity rates

• Create long-term price volatility, especially if unexpected repairs or regulatory fines arise

“Regular working people shouldn’t have to pay to keep these expensive, polluting power plants online just because some politicians want to prop up the coal industry, or for TVA to supply power to large industrial customers like data centers,” said Bri Knisley, Director of Public Power Campaigns at Appalachian Voices. “If TVA wants to meet demand quickly and affordably, it should choose distributed, clean solutions that will improve reliability for households during major storms and require data centers to pay for their own clean power.”

“Clean energy” investment may bring a different type of job (solar installation, maintenance, etc…), but with the continued operation of these plants, current jobs are protected. The question may be less about politics and more about practicality. The plants support workers, contractors, local suppliers and reliable energy plays a major role in attracting new industry to Tennessee.

With new industries come jobs and a strong economy.

“Since the 1950s, coal-fired plants have been critical in meeting power demand across the Tennessee Valley. They continue to produce nearly 6,000 megawatts, enough to power approximately 3.4 million homes, to keep the lights on in the region even on the hottest or coldest days.”

What does this mean for economic stability and monthly power bills?

Lower Wholesale Power Costs

• TVA’s coal plants produce a steady, predictable supply of electricity at a relatively low operational cost per megawatt-hour.

• Keeping them open helps stabilize wholesale power prices for local distributors, which prevents sharp increases in electricity bills for consumers, particularly during peak usage months.

Grid Stability and Reliability

• Coal plants provide baseload power (run continuously regardless of weather).

• A reliable baseload reduces the need for TVA to buy expensive emergency power or ramp up gas-fired plants, which are costlier.

• Fewer emergency purchases equal less “pass-through cost” to Upper Cumberland customers.

Hedging Against Fuel Price Volatility

• Natural gas prices can fluctuate significantly; coal costs are more stable and predictable because fuel can be stockpiled.

• TVA can therefore lock in a stable generation cost, which translates to more predictable bills for rural and municipal utilities in the Upper Cumberland.

Delaying Transmission Upgrades

• Existing coal plants already tie into TVA’s grid infrastructure.

• Shutting them down could force new investments in transmission or peaker plants, which are often funded by rate increases.

• Keeping plants operational avoids these short-term added costs.

Support for Cooperative and Municipal Utilities

• Utilities like Upper Cumberland EMC and Cookeville Electric Department rely on TVA’s wholesale pricing.

• A continuous coal-based supply means smaller utility rate adjustments, which benefits both residential and small-business customers.

“TVA’s coal fleet and the employees who operate it work year-round to deliver reliable power to communities across the region, supporting homes, businesses, and American energy dominance,” according to a release by TVA.