By Billy Davis

Panola County supervisors walked the graveled portion of McMahan Drive on Monday to eyeball a new electric substation that is generating power for the still-expanding GE Aviation plant.

Tallahatchie Electric Power Association oversaw construction of the project, at an approximate cost of $8.8 million, to service the expanding plant and other customers in east Batesville.

The project includes two independent substations and two transformers yielding 40,000 kilowatts of power each, Brad Robison, TVEPA general manager, told The Panolian.

The $8 million project also represents Panola County government’s contribution to GE Aviation’s ongoing $100 million plant expansion that was first announced in 2009.

Supervisors agreed at the time to issue $4 million in general obligation bonds to pay for construction of the substation with the understanding that GE itself will make the annual payments in lieu of taxes.

GE Aviation has already made the first payment, for $272,112, said County Administrator Kelley Magee. The annuals payments are for 15 years, she said.

Magee likened the deal to co-signing a loan, with county government understanding its name is on the loan along with GE Aviation.

Bill McKenzie, attorney for the county board, obligingly voiced a similar caution two years ago, when supervisors were set to vote on the matter.

Panola County’s contribution was part of a deal brokered between GE Aviation and the Miss. Development Authority, when both parties were negotiating state and local contributions for the plant expansion.

The Mississippi legislature pledged $8 million at the time to help GE Aviation expand its Batesville operation.  

GE Aviation had topped 100 employees by 2010 and is continually building its workforce today. The plant is expected to top out at 475 workers by 2013, with a payroll estimated at $18 million annually.   

The substation began delivering power to GE on June 13, McKenzie reported Monday.  

“We need to determine if the money is well spent,” McKenzie said in the boardroom. “I don’t know how to do that without looking at it.”

Supervisors were met at the substation by Robison and TVEPA director of engineering Kerry Davis, and Mike McDermott, facility maintenance leader for GE Aviation.

“Well, are y’all getting power out of this electricity?” McKenzie formally asked McDermott, causing chuckles among the gathered officials.

Robison credited Davis for overseeing the project for the electric cooperative.