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Trump Orders Federal Coal Purchase. What Does it Mean for TVA?

 


February 13, 2026 - The Tennessee Valley Authority's renewed commitment to continuing coal-fired power generation came on the same day President Donald Trump directed the U.S. Department of Defense to begin buying power from coal plants.


The Feb. 11 executive order does not dictate how much the Defense Department should spend on the purchases.


Coal is crucial to U.S. national and economic security, Trump said in the order. The Defense Department will support coal production and address what Trump has termed a "national energy emergency" − a shortage of energy he said was driven by the policies of his predecessor, former President Joe Biden.


The move would boost a part of the energy industry that's been a cornerstone of Trump's politics and support base since he announced a run for president in 2015. Trump has spoken frequently of protecting coal-mining jobs and has condemned plans to close coal plants, including a now-reversed decision to retire TVA's coal units at the Kingston and Cumberland fossil plants.


Coal production has declined in recent years, according to a 2025 report from the U.S. Energy Information Administration, while mining costs and competition from other energy sources has increased. But the decision by TVA to continue with coal could lead to new power purchase agreements with the Defense Department.


What role does coal play in TVA’s energy mix?


TVA has four coal plants in its fleet. In addition to the Cumberland and Kingston plants, there's the Gallatin Fossil Plant in Tennessee and the Shawnee Fossil Plant in Kentucky.


Coal accounts for about a fifth of the utility's energy mix, and the utility's coal fleet is made up of 24 power-generating units. A 2025 annual report from TVA − the nation's largest public power provider − says the utility generated 34% of its electricity using oil or natural gas, 33% through its nuclear fleet, 10% through hydropower and 4% with other renewables.


A Feb. 11 vote from the TVA board − which recently restored its quorum with newly appointed Trump nominees − will keep the coal-fired units at the Kingston and Cumberland plants running past 2028. TVA's new proposal also nixes a plan to add a solar facility at Kingston but retains plans for replacement natural gas units.


Federal dollars going to coal plant upgrades, but not TVA − yet


TVA’s renewed commitment to fossil fuels didn’t help it land on a list of six utilities selected Feb. 11 to receive $175 million from the U.S. Department of Energy for upgrades to coal plants.


The Energy Department instead split the awards among the Appalachian Power Company, Buckeye Power, Duke Energy, Kentucky Utilities Corporation, Monongahela Power Company and Ohio Valley Electric Cooperation.


Additional awards will come later, department leaders said in a news release.


During a pro-coal event at the White House the day of the announcement, Trump slammed TVA for having "gone in a very stupid, very bad direction."


In addition to criticizing TVA's coal retirement plans, the president took aim at TVA CEO Don Moul and how the utility compensates its leader.


"Trump is on the scene now," the president said while mocking the CEO's salary, vowing to "make (Moul's) life miserable."