The oil boom hit La Grange, and all of Fayette County in the 1980's. In 1979 the Lower Colorado River Authority (LCRA) began producing power from the twin plants nine miles east of town. Then an additional plant was constructed in 1984. This led to an increase in the number in the number of homes built in La Grange. The power units are part of the Fayette Power Project

The Fayette Power Project has proved to be an asset to Fayette County and La Grange alike. It not only provides hundreds of good paying jobs to area  residents, it also has shown a willingness to improve the community. It has acted as a catalyst in bringing new business to the area.

The production of the power plant had another positive effect, it helped prevent the oil and gas slump of the late 1980's from causing severe economic damage to the area.  There has since been another surge in the oil and gas fields in the area, but it's not as large as the previous. Lastly, it is worth mentioning that the completion of State Highway 71 bypass, in 1989, has also helped attract new business to La Grange.