What is the Ferguson Replacement Project?
LCRA has contracted with Fluor Corporation to replace its natural gas-fired Thomas C. Ferguson Power Plant in Horseshoe Bay near Marble Falls. The project involves building an approximately 540-megawatt (MW), combined-cycle power plant to replace the aging 420-MW Ferguson unit, which was built in 1974. The new plant will be fueled by natural gas. It also will be more efficient, more reliable and it will have the latest environmental controls. The LCRA Board approved the project at its April 2011 meeting, and in August 2011 selected Fluor Corporation to construct the plant following receipt by LCRA of required air permits. The decision followed a year-long evaluation of the costs and benefits of the project, which included soliciting bids from potential contractors, gathering input from LCRA’s wholesale electric customers, and hosting open houses to inform neighboring communities about the project.
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Why is LCRA replacing Ferguson?
Replacing Ferguson will help LCRA provide its wholesale electric customers with more competitively priced power over the long term because a combined-cycle power plant will be more efficient, more cost-effective and more reliable than Ferguson. For example, a combined-cycle power plant uses about 35 percent less fuel than a traditional natural gas-fired plant like Ferguson to produce the same amount of electric power. This results in lower fuel costs and fewer emissions per unit of power produced. In addition, a new power facility will be more reliable and cost-effective because it will require less maintenance.
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What is the project timeline?
LCRA issued a Notice to Proceed with Fluor on Nov. 11, 2011. Fluor’s project schedule includes a two-year construction phase to bring the new power plant on-line in 2014. To receive free updates on construction activities, subscribe to the Ferguson Replacement Project e-newsletter at the top of this page.
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What are the benefits of LCRA moving forward with this project now?
The Ferguson Power Plant, which is 37 years old, provides diminishing value to LCRA and its wholesale electric customers. In the long term, the costs of continuing to operate Ferguson are higher than investing in a new, more efficient power plant. LCRA is moving forward with this project now because the new power plant will help LCRA provide its customers with more competitively priced power over the long term.
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Can LCRA just continue to upgrade the existing Ferguson unit instead?
Yes, LCRA could continue to maintain the Ferguson Power Plant. However, investing in a newer, more efficient power plant will be more cost-effective than continuing to upgrade and maintain the existing unit.
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Did LCRA consider other locations for this replacement project?
Yes, LCRA considered other locations. However, building a power plant on a new site would cost an additional $50 million to $70 million, and would have a greater overall impact on the environment. It makes sense to reuse the existing Ferguson site because there is room for a new power plant (the site was originally designed to accommodate additional generating units) and the fuel, water and transmission infrastructure is already in place.
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How can I get additional information about this project?
LCRA will host open houses and community meetings on May 3 in Horseshoe Bay and May 10 in Marble Falls to inform area residents about the construction project. To sign up for the free e-newsletter updates, see the subscribe box at the top of this webpage. Also, here are the primary contacts for this project:
- Community and public affairs: Steve Dyer, (512) 940-4132
- Business opportunities: Contractors interested in potential business opportunities with Fluor on construction of the Ferguson Replacement Project should contact the local Texas Work Force Commission office nearest to the construction site at 1001 West Buchanan Drive, Suite 1 in Burnet, Texas 78611, or by calling (512) 756-6769.
- Media inquiries: Clara Tuma, (512) 578-3292
- General questions: contact LCRA
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How much will the project cost?
This project is expected to cost approximately $500 million.
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I buy power from one of LCRA’s wholesale electric customers. Will this project affect my electric bill?
LCRA is investing in this more efficient power plant now to help keep wholesale power costs stable and competitively priced over the long term. LCRA will recover the capital cost for building this plant through the cost-based rates it charges its wholesale electric customers. LCRA does not set retail rates because it only sell power to wholesale customers (electric cooperatives and cities).
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How will this project benefit LCRA’s wholesale electric customers?
Here are reasons why replacing Ferguson with a more efficient power plant will help LCRA provide more competitively priced power:
- More efficient – A combined-cycle power plant is a highly efficient way to produce power, which results in lower fuel costs and fewer emissions per unit of power produced.
- Lower fuel costs – The new power plant will use about 35 percent less fuel per unit of power produced than Ferguson does today.
- More reliable – The new power plant’s state-of-the-art technology and design will be more reliable than the 37-year-old Ferguson unit, which requires frequent maintenance.
- More valuable – A more efficient power plant at the Ferguson site will be more valuable in the Texas electric market because it will respond more quickly to demand for power, reduce transmission congestion costs at its location in the ERCOT Nodal Market, and help maintain reliable electric service to the rural Texas Hill Country, a region with limited generation resources.
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What is a combined-cycle power plant?
This type of power plant combines a gas turbine system and a steam-cycle system to generate electricity. The combination of the cycles creates a highly efficient power plant that uses about 35 percent less fuel and produces fewer emissions per unit of power produced than traditional gas-fired power plants like the existing Ferguson power plant.
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What will happen to the existing Ferguson unit?
When construction of the new power plant is complete, LCRA plans to retire the existing Ferguson unit. LCRA will work with the Electric Reliability Council of Texas (ERCOT) and the Texas Commission on Environmental Quality (TCEQ) on the decommissioning process.
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Does LCRA currently own or operate a combined-cycle power plant?
Yes, the Lost Pines 1 Power Project in Bastrop County is operated by LCRA and owned by GenTex Power Corporation, an LCRA affiliate. Since it began operations in 2001, Lost Pines 1 has been a very efficient, cost-effective resource for LCRA’s electric customers. In fact, a recent worldwide benchmarking study shows that the Lost Pines 1 facility scores in the top quartile among its peers for performance in efficiency, reliability, safety and manageable expenses.
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Would the new power plant be louder or quieter than Ferguson?
The plant is being designed and constructed in a manner so that it will not sound any louder to the plant’s neighbors. However, the new power plant will operate more often than Ferguson does today.
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Will the new power plant be properly equipped to withstand extreme weather conditions?
LCRA’s contract with Fluor specifies that Fluor will incorporate weatherization components in its plant design to withstand extreme weather conditions. As a general practice, LCRA plans and prepares for extreme weather events at each of its power plants.
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What environmental permits are required?
- Air permits
LCRA had to obtain two air quality permits before construction could begin on the new power plant. In September 2011, LCRA received from the Texas Commission on Environmental Quality (TCEQ) an air permit for the emissions regulated by TCEQ. In addition, new regulations by the U.S. Environmental Protection Agency (EPA) required LCRA to obtain a permit from EPA for greenhouse gas emissions from the new power plant. In November 2011, LCRA received from the EPA a green house gas emissions preconstruction permit.
- Wastewater discharge permit
LCRA is working with TCEQ to amend Ferguson's existing wastewater discharge permit to authorize discharges from the new power plant, which will use the same cooling water source (Lake LBJ).
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What emissions improvements are expected?
The new power plant will be will be among the most efficient, reliable and environmentally responsible power plants in Texas. It will produce 30 to 40 percent fewer emissions per unit of power produced than the existing plant. Proposed emissions limits for the new plant are more restrictive than the permit limits for the existing plant.
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What other environmental improvements are expected?
Per unit of power produced, the new power plant will cycle through less water than the existing plant from intake to discharge. The water permit for the new power plant is the same as the permit for the existing plant. In addition, LCRA has removed the fuel oil tanks that it has maintained on the Ferguson site as a backup fuel supply for periods when natural gas is scarce or expensive. The new power plant will not be designed to burn fuel oil, and removing the tanks will eliminate the risks associated with storing fuel oil onsite.
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When will construction begin?
Fluor started preconstruction activities at the construction site in spring 2012. Fluor’s project schedule includes a two-year construction phase to bring the new power plant on-line in 2014. Subscribe at the top of this page to the free e-newsletter to receive updates on the Ferguson Replacement Project.
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What will happen to Ferguson’s current employees? Can I get a job at the new power plant?
LCRA anticipates that combined-cycle power plant operations will not require more than Ferguson’s existing staff. LCRA will first seek opportunities to train existing staff to operate the new power plant.
Will the project use local contractors? How can local businesses get involved in the construction of the new plant?
Fluor is responsible for hiring all suppliers and contractors to construct LCRA’s Ferguson Replacement Project. Click here for potential supplier/contractor information. LCRA has encouraged Fluor to involve as many local businesses as possible for work that is subcontracted to qualified and cost-effective vendors.
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What will LCRA do to minimize any effects to the community during construction?
LCRA and Fluor will coordinate closely with local law enforcement, city and county leaders, and other public safety officials to minimize any effects to neighbors during construction. LCRA also will continue to communicate to the community residents through e-newsletter updates about construction activities. LCRA and Fluor are sensitive to the community and its residents and will be taking a number of steps during construction that keep neighbors in mind. Subscribe at the top of this page to receive e-newsletter updates on Ferguson Replacement Project construction activities.
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What are the expected economic advantages of this project to nearby communities?
LCRA staff is conducting an economic impact study to determine the projected benefits to the area. In general, construction projects of this size typically bring hundreds of millions of dollars in revenue for neighboring communities through local purchases of goods and services such as supplies, rent, groceries, gas, dining and more.
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What changes, if any, will the new power plant have on lakes LBJ and Buchanan?
LCRA does not anticipate any changes to lakes LBJ and Buchanan as a result of this project. Lake LBJ currently provides cooling water for Ferguson and will serve the same purpose for the new power plant. LCRA expects that the new power plant will require the same lake level range as Ferguson Power Plant does today.
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Will LCRA need to lower Lake LBJ during construction of the power plant?
LCRA does not anticipate lowering Lake LBJ during construction.
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What will be done to protect Lake LBJ during construction?
Fluor must comply with LCRA’s Highland Lakes Watershed Ordinance, which includes the requirement to build a retention pond to manage stormwater runoff from the construction site.
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Will the new power plant raise the temperature of Lake LBJ?
No. The wastewater discharge permit to operate the new plant is the same as the permit to operate the existing plant.
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Will LCRA use the existing intake structure?
Yes, the pumps will be added to the existing structure at the same level.
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Can LCRA replace Ferguson with renewable energy resources or through energy conservation?
No, it is not feasible to replace Ferguson, a 420-megawatt plant, with generation from renewable sources or through conservation. A renewable power source like wind, for example, is intermittent and LCRA relies on a diverse power supply mix to provide reliable power when it’s needed. Also, while LCRA is working with its electric customers to determine how conservation and demand management efforts can help reduce future power needs, these efforts cannot replace the current need for power that is met by the existing Ferguson unit or its future replacement.
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Will this project require new transmission lines?
Based on studies, LCRA expects that Ferguson's existing transmission infrastructure is adequate to support a new, combined-cycle unit at the same site. ERCOT could determine that existing transmission facilities need to be upgraded to support the new power plant; however, this would not require new transmission pathways.
Area residents also may notice activity related to electric transmission upgrades near the plant and Wirtz Dam. These projects will increase capacity of the lines to address growing electric demand in the region and are not related to the new plant. Crews are adding three transmission towers and swapping existing transmission lines at the plant and near Wirtz Dam. The work is scheduled to be completed by summer 2012.
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