What is the Ferguson Replacement Project?
LCRA plans to replace its natural gas-fired Thomas C. Ferguson Power Plant near Marble Falls. The project involves building an approximate 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, selected Fluor Corporation to construct the plant following receipt by LCRA of required air permits. The decision follows 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 several open houses to inform neighboring communities about the project.
--back to top--
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 30 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 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.
--back to top--
What is the project timeline?
LCRA issued a Notice to Proceed with Fluor on Nov. 11, 2011. LCRA will work with Fluor to develop a project schedule, which likely will include a two-year construction phase to bring the new power plant on-line in 2014.
--back to top--
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.
--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, investing in a newer, more efficient power plant will be more cost-effective than continuing to upgrade and maintain the existing unit.
--back to top--
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.
--back to top--
How can I get additional information about this project?
After LCRA and the selected contractor develop a project schedule, LCRA will host open houses and community meetings to inform area residents about the construction project. To sign up for enewsletter updates, see the subscribe box at the top right of this webpage. Also, here are the primary contacts for this project:
--back to top--
How much will the project cost?
This project is expected to cost between $520 million and $550 million.
--back to top--
I buy power from one of LCRA’s wholesale electric customers. Will this project affect my electric bill?
LCRA 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. Investing now in a more efficient power plant will help LCRA keep wholesale power costs stable and competitively priced over the long term.
--back to top--
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 30 to 40 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.
--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 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.
--back to top--
What will happen to the existing Ferguson unit?
When construction of the new power plant is complete, LCRA will 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, which is expected to take two years.
--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.
--back to top--
Would the new power plant be louder or quieter than Ferguson?
As part of the project specifications, LCRA will require the contractor to build a power plant that does not exceed current operational sound levels of the Ferguson facility. However, the new power plant will operate more often than Ferguson does today.
--back to top--
Will the new power plant be properly equipped to withstand extreme weather conditions?
LCRA included general weatherization specifications in its project proposal. It will work with the selected contractor to develop more detailed weatherization efforts when the power plant design is chosen. As a general practice, LCRA plans and prepares for extreme weather events at each of its power plants.
--back to top--
What environmental permits are required?
- Air permits
LCRA had to obtain two air quality permits before construction can 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 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).
--back to top--
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.
--back to top--
What other environmental improvements are expected?
The new power plant will use less water per unit of power produced than a traditional gas-fired plant like Ferguson because a combined-cycle power plant's steam turbine is much smaller. 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.
--back to top--
When will construction begin?
LCRA is working with Fluor to develop a project schedule, which likely will include a two-year construction phase to bring the new power plant on-line in 2014.
--back to top--
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 40 staff positions. LCRA will first seek opportunities to train existing staff to operate the new power plant.
Will the project use local contractors?
LCRA will encourage Fluor to involve as many local businesses as possible for work that is subcontracted to qualified and cost-effective vendors.
How can local businesses get involved in the construction of the new plant?
LCRA is working with Fluor to host vendor forums in January or February to provide local suppliers and contractors an opportunity to hear about potential business opportunities.
--back to top--
Why did some contractor candidates already contact community businesses?
The vendors that bid on this project 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.
--back to top--
What will LCRA do to minimize impact to the community during construction?
LCRA and the contractor will coordinate closely with local law enforcement, city and county leaders, and other public safety officials to minimize impacts to neighbors during construction. LCRA has asked Fluor to work within the noise levels and work hours defined in local ordinances.
--back to top--
What are the expected economic advantages of this project to nearby communities?
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.
--back to top--
What impacts, if any, will the new power plant have on lakes LBJ and Buchanan?
LCRA does not anticipate any impacts to lakes LBJ and Buchanan. 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 levels as Ferguson Power Plant does today.
--back to top--
Will LCRA need to lower Lake LBJ during construction of the power plant?
At this time, LCRA does not anticipate lowering Lake LBJ during construction. However, LCRA will have more information after it selects the design specifications for the new plant. LCRA will be working very closely with the selected contractor throughout all phases of the project.
--back to top--
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.
--back to top--
Will the new power plant raise the temperature of Lake LBJ?
No. LCRA likely will run the new power plant more often than Ferguson, but LCRA does not expect increased operations to adversely affect the temperature of Lake LBJ.
--back to top--
Will LCRA use the existing intake structure?
It appears that LCRA will be able to modify the existing lake intake structure; however, we will know more after we have selected a power plant design.
--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.
--back to top--
Will this project require new transmission lines or towers?
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 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 will begin foundation work to add three transmission towers and swap existing transmission lines near Wirtz Dam. In the fall of 2011 another project started foundation work to upgrade the conductor on transmission lines near the power plant. The conductor capacity will be increased without any additional lines being added.
--back to top--
What is an EPC contractor?
Under an engineering, procurement, construction contract, or EPC contract, LCRA hired a single contractor to design the new power plant, procure all necessary equipment and materials, and build the power plant to LCRA's specifications. This type of contract streamlines the design and construction processes and reduces LCRA's risks of cost and schedule overruns.
--back to top--
I heard LCRA is building another facility in the Marble Falls area. Is it related to this project?
LCRA is building the new Western Maintenance Facility on the LCRA Wirtz Dam property. It is not related to the Ferguson Replacement Project. The maintenance facility will consolidate departments of employees currently located at various sites in the western part of LCRA’s service territory.
--back to top-- 
LCRA plans to replace its 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.
No comments:
Post a Comment