What is the Ferguson Replacement Study?
LCRA is evaluating the feasibility of replacing its 36-year-old, natural-gas fired Thomas C. Ferguson Power Plant near Marble Falls with a natural gas-fired, combined-cycle power plant that is more efficient, reliable and has the latest environmental controls. The year-long evaluation will include soliciting power plant designs and bids for construction, as well as initiating the environmental permitting process. This information will help LCRA determine whether replacing Ferguson with a combined-cycle power plant is a financially and technically feasible option.
--back to top--
What is the timeline?
The LCRA Board of Directors in April authorized staff to begin a year-long study to gather additional information about the projected costs and long-term benefits of replacing the aging Ferguson unit with a combined-cycle power plant. The LCRA Board in spring 2011 will decide whether to proceed with the project. If LCRA proceeds, it expects that a three-year construction phase could take place from late 2011 to 2014.
--back to top--
Why is LCRA considering this?
Preliminary evaluations indicate that replacing Ferguson will help LCRA better manage wholesale power costs over the long-term because a combined-cycle power plant will be more efficient, cost-effective and reliable. For example, a combined-cycle power plant uses about 35 to 40 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 per kilowatt-hour. In addition, a newer power facility will be more reliable and cost-effective because it will require fewer maintenance outages.
--back to top--
Can LCRA just continue to upgrade the existing Ferguson unit instead?
Yes, LCRA could continue to maintain the Ferguson Power Plant. However, LCRA expects that investing in a newer, more efficient power plant will be more cost-effective than continuing to upgrade and maintain the existing unit. The year-long evaluation will help LCRA determine with certainty whether replacing Ferguson is a financially and technically feasible option. If LCRA does not proceed with the replacement project, it will continue to operate the Ferguson Power Plant.
--back to top--
Did LCRA consider other locations for this replacement project?
Yes, LCRA considered other locations. Initial estimates indicate that building a power plant on a new site would cost an additional $50 to $70 million and would have a greater overall impact on the environment and natural resources. It makes sense to consider reusing 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.
--back to top--
How can I get additional information about this project?
In May and June LCRA will host four open houses to inform area residents about the project, including details about the proposed power plant’s appearance, technology, projected costs, benefits and environmental aspects. The open houses will be held at these locations:
- Horseshoe Bay – Friday, May 14, from 1 p.m. to 3 p.m. at the Quail Point Lodge (Horseshoe Bay Property Owners’ Association), 107 Twilight
- Granite Shoals – Monday, May 24, from 6 to 8 p.m. at Granite Shoals City Hall, 2221 N. Phillips Ranch Road
- Kingsland – Thursday, June 3, from 6 to 8 p.m. at the Kingsland Community Center, 3451 Rose Hill Drive
- Marble Falls – Thursday, June 10, from 2 p.m. to 4 p.m. at the City of Marble Falls Lakeside Pavilion, 307 Buena Vista
Also, you may visit the project Web site at www.lcra.org/fergusonstudy for more information and to sign up to receive e-mail newsletter updates. Here are the primary contacts for this project:
- Media inquiries: Tara Wells, 1-800-776-5272, Ext. 2087, or Clara Tuma, Ext. 3292
- Community and public affairs: Heather Richardson, 512-750-5732
- Project bids and purchasing: Tony Anderson, 1-800-776-5272, Ext. 6791
- General questions: asklcra@lcra.org
--back to top--
If LCRA proceeds with the project, how much will it cost?
As part of the feasibility study, LCRA will conduct a competitive bidding process to gather specific information about project costs. The cost to build a typical combined-cycle power plant ranges from $575 to $625 million.
--back to top--
I buy power from one of LCRA’s wholesale electric customers. How might this project affect my electric bill?
If LCRA proceeds with this project, it will recover capital costs through the cost-based rates it charges its wholesale electric customers. However, as a wholesale power provider, LCRA does not set rates at the retail level. LCRA’s initial studies indicate that making this investment now will help LCRA operate as efficiently as possible to keep wholesale power costs stable and competitively priced over the long term.
--back to top--
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 35 to 40 percent less fuel and fewer emissions per kilowatt-hour than traditional gas-fired power plants like the Ferguson Power Plant.
--back to top--
What will happen to the existing Ferguson unit?
If LCRA decides to replace Ferguson Power Plant with a combined-cycle power plant, LCRA will plan to retire the existing Ferguson unit.
--back to top--
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. For more information, visit www.lcra.org/energy/power/facilities/lostpines/index.html.
--back to top--
If the project proceeds, what will happen to Ferguson’s current employees? Can I get a job at the new power plant?
While it is too early for LCRA to know for certain what employment opportunities this project might bring, staff anticipates that combined-cycle power plant operations will not require more than Ferguson’s existing 40 staff positions. If LCRA proceeds with the project, it will first seek opportunities to train existing staff to operate the new power plant.
--back to top--
What environmental permits will be required?
As part of the feasibility study, LCRA will be working with the Texas Commission on Environmental Quality to determine the permitting process for a replacement project of this type.
--back to top--
What environmental improvements are expected?
In addition to producing 35 to 40 percent fewer emissions per kilowatt-hour than the existing Ferguson unit, LCRA expects that a new combined-cycle power plant will use less water because the new steam turbine will be much smaller than the existing steam turbine. Specific information about emissions and water use will vary depending on the type of plant design and technology LCRA chooses. In addition, if LCRA replaces Ferguson, it will remove the fuel oil tanks that it has maintained onsite for periods when natural gas is scarce or expensive. While the Ferguson Power Plant already has good environmental protection measures in place, this step will completely eliminate the risks associated with storing fuel oil onsite.
--back to top--
What impacts, if any, will the new power plant have on lakes LBJ and Buchanan?
While LCRA does not anticipate any impacts to lakes LBJ and Buchanan, it will evaluate this as part of the feasibility study. Lake LBJ currently provides cooling water for Ferguson and will serve the same purpose for the new power plant. LCRA does not expect this project to change its management of lake levels and dams.
--back to top--
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.
Will this project require additional transmission support?
Based on initial studies, LCRA expects that Ferguson’s existing transmission infrastructure is adequate to support a new, combined-cycle unit at the same site. ERCOT may determine that the existing transmission needs to be upgraded to support the new power plant; however, this would not require new transmission pathways.
Will this project relieve the need for CREZ transmission lines in the Hill Country area?
No, replacing Ferguson with a more efficient power plant will not relieve the need for new transmission, such as CREZ lines, to bring power from other new and future generation resources to the Hill Country area.
--back to top--
LCRA is studying the feasibility of replacing its aging 
