October 1, 2007, News Media Release

Holly Street Power Plant Retired
The last two generating units of the 558 megawatt (MW) Holly Street Power Plant (units 3 and 4) were retired at midnight September 30, 2007. The four-unit power plant, built between 1960 and 1974, will be dismantled with acreage fronting and adjacent to the lake converted to park land. Holly units 1 and 2 were retired in October 2004.

The retirement of Holly meets goals set by the Austin City Council and Austin Energy in the early 1990’s to retire the plant at the earliest practical date, due to its location within a residential neighborhood that has increased in density over the 47-year life of the facility.

Transmission Changes Required
In 1995 Austin Energy began makingS $104 million in changes to the electric system (26 projects) necessary for the retirement of Holly. The closure required demonstrating to the Electric Reliability Council of Texas (ERCOT), the entity that manages the statewide electric grid, several capabilities. First, that the Austin Energy electric system could bring in sufficient power previously provided by the power plant, to meet the needs of the Holly area and secondly that the electric system was sufficient to ensure voltage stability in the area, also provided by the plant.  The improvements made across the Austin Energy system were necessary to meet these requirements.

Replacement Generation
The generating capability of Holly is being replaced through several components. One is the Sand Hill Energy Center, located just east of the Austin-Bergstrom International Airport. The first phase of Sand Hill, 180 megawatts of quick start peaking units, went on line in June 2001. Those units were built to meet growth in the Austin Energy system.

A second phase at Sand Hill added a 300 MW Combined Cycle unit that went on line in September 2004. Another 100 MW of peaking units will be built at Sand Hill, due to be on line by summer 2009.

The Combined Cycle (cost: $175 Million) and 100 MW of additional peaking units to be added by 2009 (cost: $60 Million) are replacement generation for Holly. The final replacement power component for Holly for the immediate future is $114 Million of power to be purchased from other generators in Texas. This purchase power agreement will cover the years 2008-2010.

Removal of the Power Plant
The removal of the Holly plant plus re-landscaping and restoration of property to be converted to park land is expected to take three years and will cost about $19 Million. An engineering firm will be hired to plan the “de-construction” of the  nine-story plant and support structures as well as the cleanup of any contamination to the Holly site. The planning will examine the feasibility of removing larger components of the plant via rail. An old rail spur about a mile long extends from within the Holly plant site to area rail lines. The spur is owned by Capitol Metro and would require extensive renovation.

System Reliability
A substation, typical of those found throughout Austin, will remain at the Holly site. Substations are the distribution point from which power is distributed to feeders that provide power throughout neighborhoods. The plant closing also required the installation of a voltage regulating device called a STACOM, with an adjoining substation component. The STATCOM keeps the voltage level of the system sufficiently high to ensure reliable electric service in the area. Voltage stability to the area was previously provided by the plant. A smaller substation area called a switchyard will also remain. The switchyard is another component necessary for the importation of power to serve the area. This equipment will be surrounded by a decorative enclosure and landscaping, to be designed with input from the Holly Neighborhood Closure Committee.  

Holly Neighborhood Participation
Austin Energy has been meeting monthly with a Holly Neighborhood Closure Committee for almost a year. The meetings are intended to keep the neighborhood informed on the closure and decommissioning as it progresses and to receive input from the neighborhood on logistical considerations related to the decommissioning such as hours of operation and streets to be utilized by truck traffic. The Committee meetings also serve as a forum to receive suggestions on landscaping and amenities to the Holly property that will be converted to parkland. Austin Energy will retain a public relations firm to assist with development of informational materials and to facilitate an expanded series of neighborhood meetings as the decommissioning of the plant site gets under way, and through its completion.

Holly Staffing
Staffing at the Holly plant with four units on line had been about 50 employees. At closure, staff levels were at about 32. Some 15 staff members will be retained at the plant to assist with decommissioning. This will include maintaining equipment and parts that might be sold as well as assisting in various ways with the de-construction activity. All Holly employees are being provided opportunities for other positions in the Utility.

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