FOUR CONTRACTORS SUBMIT BIDS FOR PROPOSED
FERGUSON POWER PLANT REPLACEMENT

LCRA in mid-February received bids from four contractors for the engineering, procurement and construction of the proposed combined-cycle power plant to replace the Thomas C. Ferguson Power Plant near Marble Falls.

Four prequalified contractors submitted proposals, including Black and Veatch Corporation/PCL Industrial Construction, Fluor Corporation, SNC Lavalin Thermal Power and TIC/Kiewit.

"These bids will provide us with firm costs that will help us determine whether to proceed with this project," said Michael McCluskey, manager of LCRA Generation Resource Development.

LCRA has been evaluating the costs and benefits of replacing its 36-year-old Ferguson Power Plant with a new, combined-cycle power plant that would be more efficient, more reliable and would have better environmental controls. LCRA began the year-long evaluation in April 2010.

"We will evaluate the bids over the coming weeks," said McCluskey. "We are on track to take a recommendation to the LCRA Board in April."

Preliminary evaluations indicate that replacing the 36-year-old Ferguson unit will help LCRA better manage wholesale power costs over the long term because a new, combined-cycle generation facility will be about 35 to 40 percent more efficient than the existing unit. If LCRA proceeds with the project, the new power plant would be built at the site of the Ferguson Power Plant. The existing unit would be decommissioned following the construction of the new power plant.

If LCRA's Board of Directors approves the project in April, staff will spend the subsequent months negotiating an agreement and developing a project schedule with the selected contractor.

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

Q: When will construction begin?
A: The LCRA Board will consider the project for approval in April 2011. If the LCRA Board approves moving forward with the project, LCRA expects that a three-year construction phase could take place from late 2011 to 2014.

Q: How can local businesses get involved in the construction of the new plant?
A: Contact LCRA Supply Management to be included on a list of potential vendors. If LCRA proceeds with the project, you will be invited to attend an open house with contractor candidates to learn more about project opportunities.

Q: Why are some contractor candidates already contacting community businesses?
Some contractors may have solicited specific information, such as the availability and cost of local equipment rentals, to help capture more accurate costs and information in their proposals. Such inquiries do not reflect a decision to move forward with the project. If the LCRA Board approves the project in April, local providers of goods and services will be invited to an open house with the selected contractor to learn more about project opportunities.