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Raccoon Mountain is TVA's largest hydroelectric plant, providing power to 1 million homes in the Tennessee Valley with four 425-megawatt units. The facility uses a reversible turbine system, generating electricity during high demand and pumping water to the reservoir during low demand.

The plant is located 1,200 feet under the lake, ensuring reliability against environmental factors. TVA is also developing a similar pumped storage facility in Jackson County, Alabama, with a project cost of $2-4 million, currently in the final stages of financial analysis.