LCRA TO BUILD CLEANER, MORE EFFICIENT POWER PLANT
TO REPLACE AGING FERGUSON FACILITY

The LCRA Board of Directors today authorized staff to replace the Thomas C. Ferguson Power Plant near Marble Falls with a new natural gas-fired power plant that will be one of the most efficient, reliable and environmentally responsible electric generating facilities operating in Texas.

The project involves building an approximately 540-megawatt (MW), combined-cycle power facility to replace the aging 420-MW Ferguson Power Plant, which was built in 1974. The decision follows a year-long evaluation by LCRA staff of the costs and benefits of the project. The evaluation included soliciting bids from potential contractors, gathering input from LCRA's wholesale electric customers, and hosting several open houses to inform neighboring communities about the proposed project.

"It makes good business sense to replace the Ferguson plant with a newer, more efficient generating unit that will provide LCRA's customers with more competitively priced power," said LCRA Board Chair Timothy Timmerman. "This investment will continue LCRA's tradition of providing reliable, cost-based electricity to cities and cooperatives throughout Central Texas."

LCRA staff now will begin a competitive negotiations process with Fluor Enterprises of Irvine, Calif., and SNC-Lavalin Thermal Power of Bothell, Wash. The two vendors submitted proposals for the engineering, procurement and construction of the plant. LCRA plans to select the contractor by August 2011. Then, LCRA will work with the selected contractor to develop a project schedule, which will include a two-year construction phase to bring the new power plant on-line in 2014. LCRA will build the new unit at the Ferguson site on Lake LBJ. The existing power plant will be retired following completion of the new facility.

"After LCRA has selected a contractor and developed a project schedule, we will host open houses to inform area residents about our plans," said Tom Mason, LCRA General Manager. "There will be open and regular communications throughout this project."

For more information, read the press release and visit the project webpage.

Here are answers to some frequently asked questions about the Ferguson Replacement Project. For more questions and answers, visit the project webpage.

How much will the project cost?
Over the next few months, LCRA will continue a competitive bidding process to select the project contractor. LCRA will share specific project costs after it has selected the contractor and a power plant design.

What is the project timeline?
LCRA staff will spend the next few months selecting the contractor that will handle the engineering, procurement and construction of the new power plant. LCRA expects to execute an agreement with the selected contractor in August. Then, LCRA will work with the contractor to develop a project schedule, which will include a two-year construction phase to bring the new power plant on-line in 2014.

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 30 to 40 percent less fuel and produces fewer emissions per unit of power produced than traditional gas-fired power plants like the Ferguson Power Plant.

Will the project use local contractors?
LCRA will encourage the selected contractor to involve as many local businesses as possible for work that is subcontracted to qualified and cost-effective vendors. At that time, LCRA also will provide more information to the community about specific subcontractor and vendor opportunities.

How can local businesses get involved in the construction of the new plant?
After LCRA selects a contractor in August, the successful contractor and LCRA will host an open house to help local businesses learn about project opportunities.