TVA picks up $42 million toward cleanup costs

POSTED: 8:49 AM Oct 15 2013   UPDATED: 4:39 PM Oct 15 2013
CHATTANOOGA, Tenn. -

About $42 million has been recovered in the last week by the Tennessee Valley Authority to help pay for more than $1 billion in expenses stemming from the cleanup at the 2008 ash spill at the Kingston Fossil Plant.

The latest payment comes after an arbitrator ruled that one of TVA's insurers, Bermuda-based Arch, had to pay for part of the cleanup expenses from the collapse of a coal ash pond where TVA dumped coal residues for decades at its Kingston plant.

The arbitration award is the first of three pending cases between TVA and its insurers over the Kingston ash spill.

The Chattanooga Times Free Press reported that TVA now has collected $92 million from property and casualty insurance companies.