February could mark the closing of an era as both mining and plant operations at Big Brown in Freestone County may shut down for good.
Luminant announced on Friday, October 13, 2017 its intention of closing of two coal-fueled power plants: the Big Brown Power Plant in Freestone County and the Sandow Power Plant in Milam County.
“I am saddened that this is being considered,” states Fairfield Mayor Roy Hill. “It will have a huge impact on our economy, our local merchants and our parks.”
Big Brown was the first of modern lignite power plants to be built, brought online in 1971 in Fairfield, Texas.
Fairfield Lake, created as a cooling system for the plant, is home to some of the best warm-water fishing in the state, bringing many outdoor enthusiasts to the area.
The power plant, and supporting Turlington Mine, has been a major contributor to the community, as well as the largest single taxpayer.
According to Bud Black, Chief Appraiser with Freestone Central Appraisal District (FCAD), “The biggest concern is the economic impact on our community with the loss of jobs.”
The announced closures are expected to impact about 200 employees in our area, with the closing of the Big Brown Plant and Turlington Mine, and about 450 employees from the Sandow Plant and its supporting Three Oaks Mine in Bastrop County.
Of course, the plant closures could also affect the budgets for several government entities in Freestone County, including four cities, four school districts, and two hospital districts, as well as the county government.
Any adverse effect may be delayed, however; as Chief Appraiser Black says a representative of Luminant assured him last week that the company will honor their agreements to pay property taxes through 2018.
As part of a lawsuit settlement agreement with FCAD, Luminant agreed to property valuations of $65 Million in 2017 and $60 Million in 2018.
This will mean a decrease of only $5 Million next year, according to the Chief Appraiser Black.
“Entities will have one more year to plan,” says Black. “From our standpoint, we are okay — for now.”
Formal notices of closure were submitted to ERCOT, concerning the Luminant power plants.
The Electric Reliability Council of Texas (ERCOT) operates the electric grid and manages the deregulated market for 75 percent of the state. The entity is subject to oversight by the Public Utility Commission (PUC) of Texas and the Texas Legislature.
These notices of closure automatically trigger at 60-day reliability review to ensure that the overall power grid can still meet demands for electricity, in the wake of the power plant closures.
A 90-day notice of suspension of operations has been given on the Sandow site; an extended 120-day notice for the Big Brown site.
The extended notice for Big Brown, according to last week’s press release, was issued in order to explore a sales process for the Freestone County site during the notification process.
“I do realize, it is a long time until February, and lots can happen between now and then,” states Fairfield Mayor Hill. “A lot of us will be trying everything in our power to make sure that our power plant does not close, if at all possible.”
“As Mayor, I will not rest until that is accomplished,” says Hill
If ERCOT determines the Big Brown units are not needed for reliability following their review, and if the site has not been sold, Luminant expects to cease operations on February 12, 2018.
