FERGUSON REPLACEMENT PLANT GETS GREEN LIGHT;
VENDOR FORUMS PLANNED FOR EARLY 2012

The replacement for LCRA's Thomas C. Ferguson Power Plant has received the required air permits from the Texas Commission on Environmental Quality and the Environmental Protection Agency. As a result, LCRA has issued an official Notice to Proceed with Fluor Corporation to begin engineering and construction of the replacement project – a 540-megawatt combined-cycle natural gas plant – to replace the 37-year-old Ferguson plant.

"This is a firm commitment from LCRA that we are moving forward with this advantageous project," said LCRA General Manager Becky Motal. "Our customers will benefit from our ability to better manage costs with a plant that will use about 35 to 40 percent less fuel than traditional gas-fired plants, and the community will benefit from the latest environmental controls and a contribution to the local economy with the plant's construction."

A combined-cycle 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 with lower fuel costs and fewer emissions per unit of power produced.

"This new and efficient power plant will provide a safe and clean type of energy generation that will improve the Hill Country's electric reliability," said LCRA Board Member Vernon E. "Buddy" Schrader, a resident of Horseshoe Bay.

"Area residents will benefit from the ability to incorporate new technology in terms of environmental controls, sound suppression and aesthetics into the new plant design," said LCRA Board Member and Horseshoe Bay resident Raymond A. "Ray" Gill Jr.

Currently, Fluor is in the project's engineering and procurement phase, which will last several months. LCRA is working with Fluor to host vendor forums in January or February to provide local suppliers and contractors an opportunity to hear more about the project and potential business opportunities to help build the plant. LCRA encourages its contractors to involve as many qualified and cost-effective local suppliers and businesses as possible. Anyone interested in attending the vendor forums can register online and LCRA will provide the information to Fluor. LCRA will publicize the vendor forums locally when their details are confirmed.

Open houses for the general public to learn more about the plant are tentatively scheduled for spring of 2012 and will coincide with groundbreaking for the new plant.

LCRA and Fluor will coordinate closely with local law enforcement, city and county leaders and other public officials to minimize impacts to neighbors during construction. Residents near the Ferguson plant can expect to see site preparation activities starting in early 2012 and continuing into spring. LCRA will send email updates on construction activities to people who have signed up to receive its free electronic newsletter. To sign up for the newsletter, to register a business as a potential vendor or to learn more about the project, look for the Ferguson Replacement Project at www.lcra.org.