TVA to pay $11.5 mil in civil penalties from 2008 coal ash spill

Birmingham, Alabama (Platts)--15Jun2010/747 am EDT/1147 GMT



The Tennessee Valley Authority said Monday it will pay the $11.5 million in civil penalties assessed by the state Department of Environment and Conservation for violations stemming from the massive coal ash spill at the Kingston coal-fired plant in December 2008.

Anda Ray, TVA's senior vice president for environment, said TVA would comply with the order assessing the penalties because the federal power producer is fully committed to a complete cleanup of the spill.

"We will continue to seek the department's review and guidance to restore the area and protect public health," Ray said.

About 5.4 million cubic feet of ash spilled across 300 acres and into a nearby river when a dike broke at the coal ash retaining pond at the Kingston plant in eastern Tennessee.

The critical phase of removing the ash from the river is complete and nearly 60% of the spilled ash has been recovered from the nearby property, Ray said.

The penalties addressed violations of the Tennessee Water Quality Control Act and the Tennessee Solid Waste Disposal Act.

In addition to the penalties, TVA will continue to pay to the department the cost of overseeing the cleanup, Commissioner Jim Fyke said. The order issued Monday by Fyke also reserved the department's right to assess natural resource damages in the future.

--Mary B. Powers, newsdesk@platts.com