LCRA began operating Thomas C. Ferguson Power Plant in 1974 to meet increased demand, especially in the western part of its Central Texas service area.

The single-unit natural gas-fired plant can generate up to 420 megawatts (MW), enough electricity to meet the peak demand for nearly 100,000 Texas homes. The plant originally was designed for at least four generating units, but plans for additional units were scrapped after the fuel crisis of the 1970s, which also led to the building of LCRA's only coal-fired power plant.

Today, Ferguson operates primarily during periods of peak demand and also provides reserve and emergency power for other utilities in the Electric Reliability Council of Texas (ERCOT). Even with modified service, the plant continues to be very important to LCRA's power production system.

Air quality is maintained at levels better than the standards set by the U.S. Environmental Protection Agency. Even though natural gas is a clean-burning fuel, Ferguson continuously monitors plant emissions to meet requirements of the federal Clean Air Act of 1990. Lake LBJ, which provides cooling water for the plant, maintains excellent water quality and is a popular recreation destination. The lake is monitored regularly for pollutants, dissolved oxygen and temperatures.

The Ferguson plant is located eight and one-half miles west of Marble Falls. It was named for Thomas C. Ferguson, a member of LCRA's first Board of Directors.

The plant employs about 37 people and contributes about $2.5 million annually to the region's economy.