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March 11, 2002 News Media Release

Austin Energy removing oil from Holly

Austin Energy currently is removing the fuel oil from two tanks at the Holly Power Plant as part of the steps being taken in preparation for the retirement of the plant.

The two tanks are scheduled to be removed next year and scrapped allowing the back portion of Holly to be remediated into parkland overlooking Town Lake once the plant closes. A smaller third tank that no longer contains oil will be converted into a water tank for use in emissions control but also will be removed when the plant closes.

Holly operates on natural gas but has maintained a supply of low-sulfur fuel oil on which it could operate in the event of a natural gas shortage or curtailment. All the fuel oil from the tanks will be removed within the next two weeks.

"The removal of this fuel oil is one of the steps we can take now in preparation for the retirement of Holly," said General Manager Juan Garza. "We have made the policy decision that even in the event of a disruption of natural gas supply to this plant, we would make other arrangements for power rather than operate Holly on fuel oil."

Last month, a $4 million autotransformer was delivered for installation at the substation that serves the Holly plant. The equipment is needed to step down for further distribution bulk power that will have to be imported to serve the downtown and surrounding area once Holly is closed.

Austin Energy has spent more than $47 million to date on system improvements in preparation to close Holly and is scheduled to spend an additional $30 million. The plant is scheduled to close by no later than 2009 with the goal to retire the plant sooner.

-end-

For more information, contact Ed Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000

 

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