Environmental Lawsuit Threatens $625 Million Power Plant Overrun That Ratepayers Could Eat

An environmental lawsuit nearly pulled the plug on a Tennessee power plant, threatening thousands of union jobs and potentially leaving electricity customers footing a hefty bill before a federal appeals court intervened.

The Sixth Circuit Court of Appeals granted the Tennessee Valley Authority (TVA) a stay pending appeal Friday, allowing construction to continue on its $2.5 billion Kingston natural gas plant after three environmental groups successfully challenged the project’s approval under the National Environmental Policy Act (NEPA). A prolonged shutdown could add an estimated $625 million to the project’s cost, according to TVA testimony cited in the ruling.

“Even a short work stoppage would deprive them of ‘their paychecks,’ while a longer one might force them to ‘find another job,'” wrote Circuit Judge Eric Murphy, an appointee of President Donald Trump, referring to the roughly 2,000 union construction workers employed on the project.

Roughly 2,000 union construction workers could lose their paychecks during a work stoppage, while electricity customers could face higher utility bills and future power shortages, according to the court’s Oct. 16 opinion.

The Sierra Club, Appalachian Voices and Center for Biological Diversity sued the TVA in October 2024, arguing that the utility failed to adequately consider alternatives to the gas plant and improperly committed to the project before completing its environmental review.

The authority does not comment on active litigation. The Sierra Club, Appalachian Voices and Center for Biological Diversity did not immediately respond to the Daily Caller News Foundation’s request for comment.

The Sierra Club, a national environmental advocacy organization; Appalachian Voices, a nonprofit focused on environmental protection; and energy issues in Appalachia and the Center for Biological Diversity, a conservation group focused on protecting endangered species and ecosystems, sued the TVA in October 2024, arguing that the utility failed to adequately consider alternatives to the gas plant and improperly committed to the project before completing its environmental review.

The Sierra Club has been involved in several other legal and political battles over American energy policy. The environmental group joined a coalition challenging Washington state’s voter-approved natural gas protections, which the state’s Supreme Court struck down in September.

The organization was also among environmental groups challenging the Trump administration’s rollback of Biden-era power plant regulations and participated in a Colorado campaign supporting legislation that would make fossil fuel companies pay for climate-related damages.