LCRA BOARD APPROVES FUEL OIL REMOVAL
FROM THOMAS C. FERGUSON POWER PLANT

The LCRA Board of Directors voted on Dec. 15 to approve the sale of fuel oil that is stored at the Thomas C. Ferguson Power Plant near Horseshoe Bay. Specifically, the Board declared the material surplus because it is no longer needed or beneficial to LCRA.

In the past, fuel oil was sometimes used to produce electricity, serving as an alternative to natural gas. If the plant is replaced, it will not be designed to burn fuel oil. For a number of reasons, use of fuel oil is not as beneficial as it has been in the past. It burns less cleanly and is less efficient than natural gas, particularly when using the advanced emission controls that reduce nitrogen oxide emissions. Even if the LCRA Board decides in spring 2011 not to replace the plant, LCRA will discontinue using fuel oil at the Ferguson plant.

LCRA is finalizing selection of a contractor to begin removing about 3 million gallons of fuel oil from three above-ground storage tanks at the plant. Three qualified companies submitted proposals in early December to remove the fuel oil and to transport it to a designated location for processing.

The timing of the removal, and subsequent dismantling of the storage tanks, relates to the ongoing Ferguson Replacement Study and potential construction of a new plant. If the project moves forward, the area where the fuel oil is stored would be needed for a staging area. Therefore, it would be best to remove the tanks and ensure the site meets regulatory standards prior to construction.

The work is scheduled to begin in early January and must be completed by March 1. The process will require about 20 trucks each day to complete the project as quickly and safely as possible. LCRA is working with its contractor to ensure that these operations occur at times during the day that minimize traffic and noise impacts for neighbors. It also is taking steps to ensure the operations occur in a safe manner and to minimize potential environmental risks. Trucks will be asked to avoid travel in the area around the plant during school bus and primary commuting hours, and all fuel oil removal must occur during daylight hours.

For more information about the Ferguson Replacement Study and answers to frequently asked questions, visit the project Web page.