TVA will lease the John Sevier power plant to John Sevier Combined Cycle Generation, a limited liability company, for which it will receive $1bn in proceeds.
TVA will complete the 880MW natural gas-fired power plant and then lease it back over 30 years.
The power plant is scheduled to commence commercial operation this summer.
TVA chief financial officer John Thomas said the use of lease-purchase financing gives TVA greater financial flexibility as it pursues a number of significant capital projects to realize its vision of providing cleaner energy.
