20060630MVP to Staff 1-7 Part I.pdf

~OUNT All'll VIEW POWER~~ED
2006 JUN 30 AM 8: 00
IDAHO PUBLIC
UTILITIES COMMISSION
June 29, 2006
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
72 West Washington Street
PO Box 83720
Boise, ID 83720-0074
RE:Case No. IPC-06-
Mountain View Power s Answers to First Production Request of
Commission Staff
Dear Ms. Jewell
Enclosed please find for filing an original and two (2) copies of Mountain View
Power s Answers to First Production Request of Commission Staff regarding the above
described case.
Very truly yours
It! R~ L.
Ronald L. Williams
RLW/smr
Enclosure
1015 West Hays Street Boise, Idaho 83702 Phone [phone] Fax [phone]
Ronald L. Williams ISB 3034
Williams Bradbury, P.
PO Box 2128
Boise, Idaho 83701-2128
Telephone: [phone]
Telecopier: [phone]
RECEIVED
2006 JUH 30 AM~'
IDAHO PUBLIC
UTILITIES COMMISSION
Attorney for Mountain View Power, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICA nON OF IDAHO
POWER COMPANY FOR A CERTIFICATE OF
CONVENIENCE AND NECESSITY FOR THE
EV ANDER ANDREWS POWER PLANT
CASE NO. IPC-06-
MVP ANSWERS TO FIRST
PRODUCTION REQUEST OF
COMMISSION STAFF TO
MOUNTAIN VIEW POWER
Mountain View Power, Inc., (MVP) by and through its attorney of record, Ronald L. Williams
responds to the following questions and provides the documents as described below.
REQUEST NO.1: In its petition to intervene, Mountain View Power (MVP) states that it has
reason to believe that it may have submitted the lowest cost bid to Idaho Power to construct the
identical Siemens Westinghouse power plant for Idaho Power at the Boise City Gateway Industrial
Park site (Gateway plant). Please explain the basis for this belief and provide any supporting
evidence.
ANSWER NO.1: The basis for MVP' s beliefthat it may have submitted the lowest cost bid
to Idaho Power is explained in the attached letter to Idaho Power dated February 22, 2006 where
MVP compared the bid capital costs of its proposed Gateway power site proposal to what MVP
estimated would be development costs to be incurred at the Evander Andrews site in Mountain Home.
At the time ofthat letter MVP did not know actual development costs at Evander Andrews. The table
on page 7 of the February 22, 2006 letter from MVP to Idaho Power estimated that the Gateway site
had an $11.8 million cost advantage over the Evander Andrews site; based in part on an assumption
that transmission costs associated with Evander Andrews would be $20 million. The Company now
indicates that $22.8 million of transmission cost upgrades are required for Evander Andrews. This
would increase the cost advantage MVP estimates the Gateway site would have over the Evander
Andrews site from $11.8 million to $14.6 million.
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
First Answers to First Production Request of Commission Staff to MVP - 1
REQUEST NO.2: In its petition to intervene, MVP states that it believes the non-price
scoring attributes in the Idaho Power bid process may be been inappropriately biased against MVP.
Please explain the basis for this belief and provide any supporting evidence.
ANSWER NO.2: First, MVP would point out that in its petition to intervene it alleged that
the non-price attributes scoring by Idaho Power in its bid analysis "may have been biased. MVP has
submitted limited discovery requests to Idaho Power to determine the scoring or ranking ofthe non
price factors, but MVP has conceded that it will not seek proprietary or confidential information from
Idaho Power as to the analysis or process used to rank or score the bids. Therefore, ifthere is actual
evidence of bias in the bid selection process with respect to the non-price "site and community
attributes" of "permit status, land ownership/control, location and regulatory requirements and
community support", then Staff and other intervenors will have to uncover or develop that evidence.
MVP will only review the non-price rankings by Idaho Power and make its ownjudgment ofwhether
the results ofthe non-price factor scoring imply bias in favor ofIdaho Power owned or controlled sites
such as Evander Andrews and against independently offered sites such as Gateway.
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
REQUEST NO.3: IfMVP believes that its Gateway project bid is superior to the other bids
received and considered by Idaho Power, please provide evidence, analysis, and support for this belief.
ANSWER NO.
Request No.1 above.
Please see the answer to and information provided in response
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
REQUEST NO.4: Please describe any transmission system additions or improvements
including cost, which would be needed to interconnect the Gateway plant into Idaho Power s existing
system.
ANSWER NO.4: MVP does' not have specific information on transmission system and
interconnection costs for the Gateway site, but has asked Idaho Power for the same. See MVP
discovery requests No., 3 and 4 to Idaho Power. Generally MVP believed that locating a power plant
within the Treasure Valley would have a significant cost advantage over similar peaking plant
proposals located outside the Treasure Valley. Documents produced by Idaho Power that led MVP to
this belief include: (i) Idaho Power Requests for Proposals for bids (p. 29 and 30), (ii) Idaho
Power Transmission Assumptions for Network Resource Additions and (iii) the Treasure Valley
Electric Plan. Copies ofthese documents are attached.
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
First Answers to First Production Request of Commission Staff to MVP - 2
REQUEST NO.5: Please provide copies of any permits Mountain View has obtained from
local, state or federal air, water, solid waste or land management agencies. Please also summarize the
status of all other permits that have not yet been obtained by will eventually be necessary for
construction and operation of the plant.
ANSWER NO.5: Two major permits are necessary concerning construction of the
Gateway Power Plant. Those permits are a Conditional Use Permit issued by the City of Boise and a
Permit to Construct (e., an 'air permit') issued by the Idaho Department of Environmental Quality.
With respect to these two major permits please find attached copies of:
(i) MVP's Conditional Use Permit to construct the Gateway Power Plant approved by the
Boise Planning & Zoning Commission January 9 2006 and affirmed on Appeal by the Boise City
Council with respect to Plant # 1 (the Siemens 170 MW proposal) on March 21 2006, with transmittal
letter dated April13 , 2006, and
(ii) A copy of the draft Permit to Construct No. P-06005 dated June 2, 2006 sent to MVP
by IDEQ for comment. MVP anticipates having the final DEQ air permit by early August, 2006.
In addition there are a number of other potential minor permits that could be required for the
Gateway Power Plant. A comprehensive list of all potential permits that could be required at the
Gateway site are shown on the attachment Exhibit II-, which was an exhibit to MVP's bid to Idaho
Power. MVP has not started the permitting process for these minor permits for the Gateway plant.
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
REQUEST NO.6: Will any of the permits MVP has obtained or will obtain restrict the
operation of the proposed Gateway plant? If so, please describe the timing, duration and nature of
such restrictions.
ANSWER NO.6: None of the permits MVP has obtained or will obtain restrict or are
anticipated to restrict the operation of the Gateway power plant.
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
REQUEST NO.7: Please provide a copy of all correspondence between MVP and Idaho
Power concerning bids MVP made in response to the RFP.
ANSWER NO.7: Please see the attached correspondence requested.
The witness sponsoring this answer and able to respond to questions at hearing is Robert
Looper.
First Answers to First Production Request of Commission Staff to MVP - 3
DATED this 28th day of June, 2006.
Mountain View Power, Inc
By f(~l4l~
Ronald L. Williams
Williams Bradbury, P.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 29th day of June, 2006, I served a true and correct copy ofthe
within and foregoing document, via regular mail at the addresses shown below, upon all parties of
record, and addressed to the following:
Barton L. Kline
Monica B. Moen
Attorneys for Idaho Power Company
O. Box 70
Boise Idaho 83707-0070
b lkline(fYidahopower. com
mmoen(fYidahopower. com
James C. Miller
Sr. Vice President, Generation
Idaho Power Company
O. Box 70
Boise Idaho 83707
j imiller(fYidahopower. com
Donovan Walker
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington
Boise ID 83702
Donovan. walker(fYpuc.idaho. gov
Peter J. Richardson, Esq
Richardson & O'Leary
515 N. 2ih St
PO Box 7218
Boise ID 83702
P eter(fYri chardsonando I eary. com
Don Reading
Ben Johnson Associates
6070 Hill Road
Boise ID 83703
dreading(fYmindspring. com
JlJLhJ~
Ronald L. Williams
Williams Bradbury, P.
First Answers to First Production Request of Commission Staff to MVP - 4
MOUNTAIN VIEW POWER'ANSWERS
STAFF'S FIRST PRODUCTION REQUESTS
Attachment to Response
Request No.
-- A,;-
- -" - '
Mountain View Power, Inc.
February 22, 2006
Mr. F Gregory Hall
Principal Engineer
Power Production
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Subject:Mountain View Power - Gateway Power
Project Development Status & Capital Cost Benefits
References:(A)Letter, Greg Hall (Idaho Power) to Robert Looper (MVP) dated
January 6,2006
Dear Greg;
In the reference letter you indicated Idaho Power Company (IPCo) had elected not to
select any of Mountain View Power s (MVP's) eight proposals either at the Gamet or
Gateway sites. In addition, only written correspondence is allowed during this time as
IPCo is negotiating with an EPC Contract with Siemens to place a 501 FD3 at the
Evander Andrews complex. Since receipt of your letter on January 6, 2006, many events
have taken place regarding the development of our proposed Gateway project. The
purpose of this letter is to provide an update of the status of the Gateway project, and
state for clarity, several key points regarding MVP's preferred project - a single 501 FD3
at Gateway located in the City of Boise, Idaho vs. IPCo s selected project at Evander
Andrews.
1. EQUIPMENT SUPPLY
MVP is teamed with Siemens to provide the turnkey development and construction of
a 501 FD3 at the Gateway facility. MVP is offering the same equipment scope of
supply as we expect would be installed at IPCo s Evander Andrews Power Complex.
Siemens has however, provided pricing for 9 ppm Ultra-Dry Low NOx burners for
Gateway. This equipment will be required for the Gateway project and we expect it
will be required for Evander as well, considering our recent experience with the Idaho
Conservation League and the Idaho Department of Environmental Quality.
Evaluation Summary:
There should be no capital cost difference between MVP's Gateway offer and
IPCo s self build alternative at the Evander Andrews site for the Siemens power
island.
2. TRANSMISSION
The Gateway facility is located within the Treasure Valley (Zone 1 according to
designation provided in IPCo' s RFP) and will interconnect with the Boise Bench
substation via a "looped in" connection with the Boise Bench to Caldwell 230 kV
transmission line. The evaluation cost for Zone 1 as indicated in IPCo s RFP is $3 to
$10 million, and MVP expects the interconnection costs for Gateway to be on the $3
million end of the spectrum, including the interconnecting switchyard.
The Evander Andrews Power Complex is located in Zone 3 and as indicated in the
RFP would have a $20 - $40 million evaluation cost. We expect the transmission
path from Evander is constrained and requires either construction of new 230 kV
double circuit transmission or a re-conductoring of existing in order to move the
power west to the Boise load center. Construction of new transmission from the
Evander facility to Boise could involve an extensive permit process and may have
several environmental hurdles yet to overcome. The only published data on the cost
of connecting in Zone 3 is the $20-40 million range. For purposes of comparison to
the Gateway site, we have chosen the lower end of the range, $20 million. In any
event, the timely completion ofIPCo s new power project at Evander is therefore
dependent on the completion of approximately 30 miles of new or upgraded
transmission line.
Evaluation Summary:
IPCo s self build option at Evander Andrews will have a minimum of$10 million
hi2her interconnection costs than MVP's Gateway Project depending on the
transmission upgrade option that is selected. A $10 million cost delta for the
construction of the necessary transmission upgrades to integrate another unit at
Evander Andrews results in costs to the ratepayers of $18,000,000 including
interest when using a 7% interest rate and a 20 year loan term.
3. TRANSMISSION LOSSES
MVP's proposed Gateway Project connects via the Boise Bench to Caldwell 230 kV
transmission line to the Boise Bench Substation approximately 1.5 miles away. The
Evander Andrews Power Complex is approximately 30 miles away from Boise
Bench. We estimate the transmission losses difference between the Gateway Project
and IPCo s Evander Andrews is approximately 0.25% - 0.5% if new transmission is
selected and as high as 3 % if re-conductoring is selected.
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
Evaluation Summary:
Using a 1500 hours per year operating profile, a conservative 160 MW average
annual operating load, a 10% discount rate, 0.5% difference in transmission
losses and a 25 year project life, we calculate the transmission losses from the
Evander Andrews facility using new transmission will result in approximately
$500,000 higher costs (NPV) than MVP's Gateway Project. With re-
conductoring, we estimate approximately $4 million in higher costs (NPV).
4. NATURAL GAS INTERCONNECTION
Both the Gateway and Evander Andrews site draw from the same Northwest gas
pipeline. Costs for construction of a new gas pipeline to feed the Gateway site were
included in the proposal. Evander Andrews is served by an existing gas pipeline that
should have capacity to serve the proposed new power plant.
Evaluation Summary:
The Evander Andrews site should be lower cost than the Gateway site for gas
service. The proposed equipment is the same and therefore the inlet gas
pressure requirements are the same. The Gateway gas pipeline was sized to
minimize pressure losses for delivery from the Northwest Pipeline in the same
way as the Evander Andrews site. Niether site is advantaged or disadvantaged
by pressure conditions on the pipeline. Gas compression can provide near 100%
guarantee for gas availability at either site. Without gas compression, both sites
are subject to the infrequent drops in pressure below equipment operating
minimums. As a result of having the pipeline interconnection already
constructed to the Evander Andrews facility, the IPCo self build alternative
has a $1.5 million capital cost advantage over MVP's Gateway Project.
5. AIR PERMITTING
MVP has prepared and submitted the Modeling Protocol to Idaho DEQ. During the
Conditional Use Permitting process over the past two months, the City of Boise
requested IDEQ to provide an air quality impact analysis to the City in support of a
January 9th City Council Meeting. DEQ's analysis indicated there were no significant
impacts resulting from the project. A copy of the DEQ report is attached.
MVP recently submitted the "minor source" air pennit application to IDEQ and
expects the permit, because of the work IDEQ has already performed, to be processed
fairly quickly and in time for a Summer 2006 commencement of construction. With
the commitment to operate at less than 10 ppm NOx, we do not expect to have any
operating restrictions for the facility.
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
Evaluation Summary:
MVP's Gateway Project will utilize Siemens' latest Ultra Low NOx technology
and has already gained the support from several key environmental
organizations. Gateway s permit to construction should be completed in 2nd
quarter 2006. The Gateway Project will not have any operating restrictions and
can be operated for over 4000 hours without exceeding the permit levels.
IPCo will have to prepare, file and receive an air permit from IDEQ. If IPCo
has not yet commenced this activity, this is yet another reason for not being able
to achieve the June 1, 2007 completion schedule requested in the IPCo RFP.
also note if IPCo pursues a minor source permit for the new unit at Evander
Andrews, the permit will require the cumulative emissions from the two ,existing
Westinghouse 251's and the new 501 FD3 be evaluated. The operatine: hours for
the complex will be limited in order for the entire facility to remain less than the
250 tons allowed for the major pollutants. We expect therefore, IPCo will need
to obtain a Prevention of Significant Deterioration (PSD) permit for the facility
which will take more time to prepare and process. This would only be an issue
for a 2007 completion date as there is sufficient time to obtain permits to achieve
an April 2008 completion date.
6. CONDITIONAL USEIPLANNING & ZONING APPROV ALS
On January 9,2006 MVP received Boise City Planning and Zoning Commission
approval to build the Gateway Power Plant at the Gateway Industrial Park, subject to
certain findings and conditions of approval. The Commission s vote was vote of7 to
1 in favor of granting this conditional use permit. A copy of the permit is attached.
As is their right, certain residents have appealed the P & Z decision to Boise City
Council. MVP has reviewed the substance of the appeals in conjunction with the
extensive hearing record in support of the P & Z decision and believes the appeals are
unlikely to prevail on the merits. A Boise City Council hearing on the appeals
tentatively will occur in early March 2006.
Boise City s economic development department continues to strongly support the
Gateway Power Projects as a way to jump-start the Gateway Industrial Park. As a
result ofMVP's success in changing State property tax statutes related to thermal
power plants in or near city limits Boise City will significantly benefit from the
property tax related to the Gateway Power Projects.
Evaluation Summary:
The Gateway Project will receive a final Conditional Use Permit from Boise City
prior to the end of 1 st quarter 2006 and therefore able commence construction in
Summer 2006.
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
Although we have not reviewed the Conditional Use permit issued by Elmore
County for the Evander Andrews Power Complex, if that permit requires an
amendment to allow construction of a second unit, then the likelihood of that
occurring in order to commence construction at Evander in time to support the
original RFP completion date of June 1, 2007 appears questionable. Therefore,
MVP's Gateway Project is advantaged by having an earlier achievable schedule.
7. PROJECT COMPLETION SCHEDULE
Since our proposal was submitted, MVP has advanced the development of the
Gateway Project using the Siemens 501 FD3. As mentioned above, local site
permitting is on-track to fInish within the next 60 days and the results, so far, have
been very positive. City leaders and administrators remain supportive of the Gateway
Power Projects and the location originally offered to MVP.
As also discussed above, MVP has received DEQ approval of our air modeling
protocol for the Siemens 501FD3 at the Gateway site and MVP recently submitted its
full air permit application to IDEQ. With the extensive modeling exercise already
performed by IDEQ, we expect completion of this air permitting activity by Summer
2006.
MVP therefore, remains fully capable and able to achieve Provisional Acceptance for
the Project by June 1 2007, the date as required by the original IPCo RFP.
Evaluation Summary:
With the need for the construction of new 230 kV transmission, IPCo cannot
achieve a completion schedule of June 1 2007. Additionally, delaying the
completion schedule of either Gateway or the new unit at Evander until April 1,
2008 results in a $5 million cost increase from Siemens - including interest
during construction. This increased cost can be avoided by MVP since the
original project completion date of June 1, 2007 can be maintained.
8. IMPACT OF ELEVATION ON PERFORMANCE
The proposed Gateway facility is located at an elevation of approximately 3040 feet
above mean sea level. The new Evander Andrews facility will be approximately 200
feet higher in elevation. This difference in elevation will result in approximately 1.
MW difference.
Evaluation Summary:
When evaluated over a 25 year lifetime, the cost of replacement power for this
difference is $1.7-5 Million.
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
9. OPERATIONS & MAINTENANCE
As a new facility in IPCo s system, the Gateway Project (if selected) would require
staffing when the facility is to be operated. The Gateway facility is located
approximately 30 miles from the Evander Andrews facility and personnel could
easily be dispatched from Evander during times when Gateway would be operated.
Because of the improved performance and lower transmission losses, we would
expect the Gateway facility to be dispatched ahead of the Bennett Mountain and
Evander Andrews facilities on a first priority basis to support the peaking load of
Treasure Valley. If new staff were to be required to support the operation of this
facility, we would expect that 2 - 3 additional people could handle the required
dispatch schedule. This staff could be utilized by IPCo elsewhere in the system
during unit down times. MVP estimates the cost impact to add Gateway at about
$350 000 per year (assuming no benefit to IPCo elsewhere).
Evaluation Summary:
This cost of incremental labor at Gateway would have a $4 Million NPV
assuming a 10% discount rate, a 3% per year labor escalation and a 25 year
project life giving Evander an advantage in this category.
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
SUMMARY
The following provides a summary of the costs advantages (both initial capital and long
term savings) for the Gateway Project over Idaho Power s self build option to add a unit
at Evander Andrews. MVP considers the overall economics of the Gateway Project to be
clearly more favorable than IPCo s selected project and therefore does not believe Idaho
Power has selected the least cost alternative for the future supply of energy to the
Boise/Treasure Valley load center.
No.Category Gateway Advantage Evander Advantage
Siemens Contract/Scope (Capital)None None
Interconnection Costs (Capital)$10 000 000 None
Transmission Losses (NPV)$500 000 None
Gas Interconnection (Capital)None 500 000
Air Permitting 6/1/07 Commercial 4/1/08 Commercial
Operation Operation
Conditional Use Pennit 6/1/07 Commercial 4/1/08 Commercial
Operation Operation
Completion Schedule (Capital)6/1/07 Commercial 4/1/08 Commercial
Operation Operation
000 000
Replacement Power - 1 year
Performance - Elevation delta Lower Elevation None
(NPV)resulting in
approximately 1
better performance
700 000
Operations & Maintenance (NPV)None 000 000 lower
O&M costs
Advantage Totals (Capital)$15 000,000 500 000
Advantage Totals (NPV)300 000 000 000
$17 300,000 $5,500,000
Delta Advantage Between $11,800,000
Proiects
Note: As indicated above, the Gateway Project has an advantage of $15 000 000 in
capital savings over IPCo self build project at Evander. The cost to finance the
additional $15 million is an additional $13 Million assuming a 7% interest rate and a
term of 20 years.
From the Table above, it can be seen that the Gateway Project has an advantage of $12
Million (Capital/Other Advantages) and an estimated cost of $13 Million to finance the
additional capital in interest) in financing costs advantage over IPCo s self build option at
Evander Andrews. MVP does not understand therefore how IPCo can select their self
build option as the least cost alternative as the winner of the RFP process.
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
MVP is available to discuss the results of our evaluation. We look forward to meeting
with you in the near future to discuss this matter. If you have any questions, please do
not hesitate to call me at [phone] (office) or (208)-890-5371 (Cell).
Robert Looper
President
Mountain View Power, Inc.
cc:Peter Stewart (IPCo)
Ron Williams
1015 West Hays Street
Boise, Idaho 83702
208331-1898
Fax [phone]
Bruce D. Chatterton
Direcr,r
i3oise City Hall
150 N, Capi'al Boulevard
Mailing Address
P. 0, Box 500
Bo;"" Idaho 8370 1-05DO
Phone
208/38d-3830
Fax
208/384-3814
TCD!TTY
800/377 3529
Web
WW'N, cityofboise.org!pds
Mayor
David H. Bieler
City Council
Presideni
- \~oryonne Jordan
'neil p,.oTem
me Clegg
:non L Bislerfeldl
David Eberle
Alan W. Shealy
Jim Tibbs
~q"ai Oepo"unity :;moloy",
- '' '-
"'.0 on ,o",-,j.d oepoc
Planning & Development Services
February 1 , 2006
:Mountain View Power
Ron Williams, Vice President
;1015 W. Hays Street
;Boise, ID. 83702
JRE:CUPOS-OO126 / 9605 S. Eisenman Road - REVISED CONDITIONS OF
APPROV AL
:Dear Mr. Williams:
In reviewing the minutes of the public hearing fur CUPOS-126 staff would like to clarify
. some conditions. The revised conditions are underscored as fa llows:
Jftms eoaditional use permit is not acted upen l/ithin sixty (6(;)) months, it will booomc null
and void witheut further netifieation :from this department.
,~Conditions of Approval
iSite Specific:
5. The applicant shall submit an air permit application with the Idaho Department of
Environmental Ouality for proyosed power Plant #1 that uses best available pollution
control technology which is existing and commercially available and meets or exceeds the
requirements of Plant #1 for the plant configuration and equipment selected by the
applicant.
i8. The applicant has proposed phasing of the project. All required infrastructure shall
;be constructed prior to the development of each phase. Both phases of this development
::authorized by this Conditional Use approval must be completed within 5 years (60 months)
tram the date of the Commission s approval or the applicant will be required to submit a
: new conditional use application. Prior to the expiration of this conditional use, the
Commission may, upon written request by the holder, grant a one-year time extension. A
,maximum of three (3) extensions may be granted.
. All other conditions of this approval shall apply as stated in the original1etter.
If you have any questions, please call me at 384-7857.
CUPO5-00126/Nlountain View Power, Inc.
Page 2
Sincerely,
Carl Miller
\. .
Planner II
CM:vvvCC: Richard Kaylor/3877 Gemini Circle/Boise/83709
Dan Buerstetta/S473 S. Broadwing Way/Boise/83716
Brett Crow/1717 E. Picabo CtJBoisel83716
Kathleen Fahey/2808 S. Colorado/BoiseJ83706
Kel1y MitchelUSlS2 S. Willamette PI./Boise/83716
Dave Ransom/322S Norfolk/Boise/83706
Cheryl Robinson/2979 Oak Park Pl.IBoise/83703
John Weber/9535 W. Cory Ln./BoiseJ83704
Tish Hetrick/2155 Blue Sage Ln./BoiseJ83716
Bruce D. CheHertor.
Direcror
Boise City Hell
150 N, Capirol Bouievod
Moili n9 Addres:;
p 0- Box 500
Boise, Idano B370i -OSOO
Phone
208/384.c3:0
Fax
208/384-3814
TDD(TTY
800/377-3529
Web
WW'W- cir(ofboise.orgi pas
Mayor
David H- Bieier
City Council
!"resident
Maryanne Jordon
';1 ProTem
~.. "
e Ciegg
Vernon L. Bisterfeidt
David Eberle
Alan W. Sheely
M. Jerome Mopp
, '- "(-- ,
I -
~n Eo.Jo, :, :00" '" 'v ~"'o;ovec
Planning & Development Services
January 10 2006
Mountain View Power
Ron Williams, Vice President
1015 W, Hays Street
Boise, ill. 83702
RE: CUPO5-00126 /9605 S. Eisenman Road
Dear Mr. Williams::
This letter is to inform you of the action taken by the Boise City Planning & Zoning
Commission on your request to construct two natural gas power plans in two phases on
property located at 9605 S. Eisenman Road in an M-2D (General Industrial with Design
Review) zone.
The Commission, at their hearing January 9, 2006, approved your request based on
compliance with the attached Conclusions of Law, Findings of Fact and Conditions of
Approval.
May we also take this opportunity to inform you of the following:
This approval will not take effect until after the appeal period has lapsed.
The decision of the Boise City Planning Zoning Commission may be
appealed to the Boise City Council within ten (10) calendar days from the
issuance of this decision. The appeal must be written, accompanied by the
appropriate fee and submitted to the Boise City Planning & Development
Services Department prior to the deadline set forth herein. Appeal application
forms are available in the Planning Department or on-line under Applications at:
\iv~\v\.vcitvofooiseon!/ods/or http:6477,8.21/pds/apps.asp
,).
All appeals of this permit must be filed by 5:00 p.m. on Monday, January 20~
2006.
If--th-i-s-c-ooai:t-i0nal-Hse-t'eFffiit---i-s-HGt~oo-withi n--eighteen (18) months, it
-will-bee e-me --n ull- and -ve-j, cl--wiHNut-furtfi er - fleE: fie ati en-, fr- em-t-his-depm"tment
Sincerely,
:::--- -
Carl Miller
CUPO5-00 126IMountain View Power, Inc.
Page 2
Planner II
CM:vvv
ClJP05-00126/Mountain View Power, Inc.
Page 3
Reasons for Decision:
Mountain View Power, Inc. (MVP) requests approval of a Conditional Use Permit to construct 2 natural gas
power plants at 9605 S. Eisenman Road. The site is located in the East Gateway Industrial Park and in an
2D (General Industrial with Design Review) zone. Plant One will generate 80-250 megawatts of
electricity and is designed to meet the requirements of Idaho Power s Request for Proposal (RFP).
Electricity generated from this plant will provide for peak summer and winter power needs. Plant Two will
generate 50 to 100 megawatts of electricity- This electrical generation will be a secondary or backup power
source for wind power project being developed across southern Idaho. The second use of this plant will be
for electricity for refrigeration for future warehouses within the East Gateway Industrial Park. The applicant
has proposed an emission stack less than 70' in height to comply with the height limitations for public
sezvices (B.C. 11-06-06.13).
On March 30, 2005 , Idaho Power issued an RFP for peaking resource electric generation project. The
applicant submitted a Conditional Use application for approval of 2 gas-fired power plants at 9605 South
Eisenman Road. These plants, if accepted by Idaho Power, would provide for public electrical generation.
On November 14, 2005 action on the Conditional Use application was deferred by the City of Boise
Planning and Zoning Commission to January 9 2006 to allow for an additional comment period trom public
agencies. Greystone Environmental Consultants, Inc., on behalf ofMVP, submit a preliminary atmospheric
en dispersion model which has been reviewed by DEQ. The air quality analyses submitted by MVP only
assessed impacts from the plant one and protocol was submitted prior to MVP's proposed change to lower
~ NOx emitting technology. The air modeling study for the Gateway Power Plant (GPP) still serves as an
indicator for impacts on air quality.
...J...J
c:(
Primary emissions from natural gas power plants include nitrogen oxide (NOx) and carbon monoxide (CO).
Secondary emissions include sulfur dioxide (SO2), organic compounds (VOC) and particulate matter
(PM1o). Emissions of NO X, SO2, and VOCs can react with other chemicals in the atmosphere to produce
fIDe aerosol particulate and ozone. The applicant has proposed to include the installation of additional
pollution control equipment in their proposal and to work with the Idaho Department of Environmental
Quality (DEQ) to incorporate emissions standards that are more stringent than required into the DEQ air
permit for their facility. As a result, the MVP plant will reduce its NOx pollution by 50% as compared to the
emissions from the Bennett Mountain facility currently owned and operated by Idaho Power in Mountain
Home. A condition of approval solidifies -this intent by limiting the continuous emission rate for Plant One
to 10 parts per million nitrogen oxides and 10 parts per million carbon monoxide as measured by a
continuous emissions monitoring system (CEMS). Plant Two will also use best available pollution control
technology which is existing and commercially available for the plant configuration and equipment selected
by applicant. A Best Available Control Technology (BACT) analysis was not submitted with the air impact
analyses; therefore DEQ could not verify whether the proposed technology represents BACT. The Idaho
Conservation League supports the cleaner pollution control mechanisms and as a result, will no longer be
opposing the request.
The DEQ report indicates that impacts of all directly emitted air pollutants (NO2, CO , SO2, PM 10, and
PM2.5) were well below applicable air quality standards, even when combined with background
concentrations based on air monitoring data collected in the Boise area. The impact levels of CO, PMlO and
SO2 are even sufficiently low to be allowed in non-attainment areas (areas not meeting air quality standards
for those pollutants) by Idaho air quality regulations; however, the Treasure Valley is not a non-attainment
area for any pollutants. Table 1 provides a summary of maximum primary impacts.
ClJP05-00126/Mountain View Power, Inc.
Page 4
U')
a:::
:;::.
..J..J
c:(
I Table 1.1Ylodeled Impacts of Directly Emitted Pollutants
Maximum
Averaging I Impact Background 1m pact Standard
Pollutant Period
I from
GPP Level Background C!-1g/m
(J.1g/m (J.1g/m (J.1g/m
PMlO 24-hour 86.150
Annual 27.
PM2.24-hour 51 a 53_
Annual 10.
I Sulfur dioxide (SO2)
hour 45.300
24-hour 26.365
Annual 78.3
Carbon monoxide hour I 1228 200 428 000
(CO)hour 201 400 601 000
Nitrogen dioxide annual
... ')
36.100.J-
(NOl)
Micrograms per cubic meter
Particulate matter with an aerodynamic particle diameter less than or equal to a nominal
10 micrometers
Particulate matter with an aerodynamic particle diameter less than or equal to a nominal
5 micrometers
Based on the maximum 98th percentile value from each of five annual data sets.
\\rinds in the Boise area are predominantly from the northwest and southeast (see Wind Rose Map).
Predominant winds would carry the plume away from larger population centers. Although the predominant
winds may carry the plume away from the larger population centers, calm conditions during either winter
inversions or summer stagnation periods could result in the plume transported in any direction. DEQ used
plume rise equations to measure a plume rise of between 1 640 feet and 1 969 feet. This causes a high
degree oftherrnal turbulence in the immediate area and the plume may break out of inversion layers that are
less than 1 640 feet thick. However, strong winter inversions within the Treasure Valley can periodically be
640 feet to 3 280 feet thick. DEQ is not confident that the plume from the GPP will have sufficient plume
rise to break through such a deep stable layer associated with the strongest Treasure Valley inversions.
Conditions of approval requested by DEQ will ensure that air quality and water quality will be protected.
fugitive dust control plan which incorporates best management practices (BMP) will be required for the
project. DEQ has also requested an odor management plan using appropriate BMP' s which details how the
applicant will manage odors that may occur from the proposed operation. Other requirements provide for
the protection of drinking water, surface water, and hazardous waste contamination.
This request should have very little impact on water quality- The project proposes land application of "non-
contact" wastewater. During peak hours up to 30 gpm (gallons per minute) of non-domestic wastewater
will be generated. The applicant has proposed treating wastewater in several ways to prevent deterioration
of the aquifer. The Boise City Public Works department in a memo dated October 7 2005 indicated that up
to 2,000 gallons per day will be accepted into the sanitary sewer. A wastewater detention pond may be
established on site for water in excess of allowed amounts- The applicant has also proposed future plans for
CUP05-00126!Mountain View Power, Inc.
Page 5
the piping of grey water to a pond within the Industrial park. The Boise Airport has requested that a wildlife
mitigation plan be submitted for review and approval before the implementation of greywater ponds. Staff
has recommended this as a condition of approval.
Staff finds the proposed power plant compatible with other uses in the general area. The subject property
located in an isolated location in Southeast Boise, near the Isaac s Canyon freeway interchange. Adjacent
properties and most land in this area are vacant; therefore the project should not be incompatible with
existing land uses- Both the zoning map and the Boise Comprehensive Land Use Map designate the area for
Industrial uses. Residential uses are especially sensitive to the proposed use. There are no residential zoned
properties or subdivisions within 1-Vz miles of the subject property. The Blue Valley Mobile Home Park is
located approximately 7j mile to the northeast. The Blue Valley Mobile Home Park has spacing for
approximately 210 manufactured homes. However, currently the site has only about an 80% occupancy
rate. The mobile home park is in Ada County and is zoned M3 (Airport Industrial). Redevelopment of the mobile home park to
industrial uses in the no-too-distant future is a distinct possibility. All properties within city boundaries within 1 mile are
zoned Industrial (Limited Industrial, General Industrial, Technological-Industrial Park, or Technological-
Manufacturing Park). The Columbia Village residential subdivisions are located between 2-3 miles
northeast of the site. The site is separated from Columbia Village by Interstate 84, Highway 21 , and other
industrial developments. Staff finds this is adequate distance and buffering from the proposed plant to
mitigate any potential adverse impact.
:::-
...J...J
0:(
Noise generated from the plant will be minimal. Acoustic tests indicate that the power plant will generate
52 decibels (dBa) at a location 400' from power plant. A level of 52 decibels (dBa) is roughly equivalent to
noise generated by a person speaking in conversational tones. The project will therefore produce
comparatively ,small amounts of noise to other generators of sound pollution nearby the site. Noise from
other uses in the general area will be greater than the proposed power plants. Interstate 84, the Boise
Airport, and the Union Pacific Railroad coITidor are more pronounced contributors of noise pollution than
the power plants. Noise will naturally increase as development of the East Gateway Industrial Park occurs.
The applicant has proposed methods to mitigate the noise pollution. The emissions stack will implement
silencing equipment to baffle the noise generated. Also, insulation used in the emissions stack will reduce
the noise pollution from the plant. Staff visits to the Bennett Mountain plant in Mountain Home, which is
similar to the proposal and was developed by the applicants, supported the claim that noise generated by the
plant is negligible. Neighbors to the Bennett Mountain power plant did not indicate that noise from the
plant was noticeable and were generally content with their location near the plant.
The proposed use will not place an undue burden on transportation and other public facilities in the vicinity.
The Ada County Highway District (ACHD) , in a report dated October 3 , 2005 , indicates that the applicant
will need to provide improved access to the subject property. To comply with ACHD requirements
Eisenman Road from Gowen Road will need to be widened to meet minimum width standards. The
driveway from Eisenman to the power plant will also be improved to provide fire safety access,
The subject property is within the Boise Airport Influence Area "A." Development of residences and
schools are discouraged in this Influence i\rea. However, this influence area does not discourage industrial
projects. The Boise .Airport has indicated in a memo dated October 25 , 2005 that the smokestacks will
penetrate FAR Part 77 imaginary surface by 33' and conflicts with runway 9/27 Part 77 surface. All
projections will need to comply with Federal Aviation Administration (FAA) standards for height and
location near an airport runway, The emissions stacks are proposed for less than 70' in height. There are
also similar heights for the electrical transmission lines in the area and the site is nearby to a bluff which is
CUP05-00126/Mountain View Power, Inc,
Page 6
elevated 275' above the subject property, Proposed condition of approval #8 requires compliance with
Airport Influence Area height restrictions or receipt of a waiver from FAA height standards.
Siting of the natural gas power plants is constrained by the availability of public infrastructure. Specifically,
the proximity of electrical transmission, natural gas, water, and sewer lines are essential to the feasibility of
this project. Necessary public infrastructure is nearby and will be extended to the site to serve the property.
A natural gas pipeline is approximately 2 000' to the east. The extension of the line to the power plant will
need to take place within an acceptable easement or right-of-way. Idaho Power owns 230h.v transmission
lines nearby the site. These lines will be used to transmit electricity toward Caldwell and the Boise bench.
Water and sewer lines will be extended to the subject property to serve the project. The siting of power
generating plants at more remote locations could be economically unfeasible due to the related costs of
extending necessary utilities.
Staff finds the site is large enough to accommodate the proposed use, setbacks, fencing, parking, and
landscaping. All buildings and parking areas will comply with the minimum setback requirements of the
zone. Power plants do not have a specific parking requirement in the Zoning Ordinance. Day-to-day
operations will include a handful of employees who will be sufficiently served by the proposed parking
spaces. The applicant has proposed a 6' three-barbed wire fence encircling the perimeter of the site. This
project is under the purview of the Design Review Committee. Staff has recommended a Condition of
(/) Approval that landscaping, building colors and the site entrance be specifically reviewed for aesthetic
quality and compatibility. Compliance with these and other conditions recommended by staff will provide
that the project will not adversely affect other property of the vicinity.
:;:.
...J...J
0::(
A proposal for natural gas power plants at this location supports policies of the Boise City Comprehensive
Plan. Elements of the Plan that are relevant to this project include Public Facilities (Chapter 2),
Environmental Quality (Chapter 3), Community Quality (Chapter 7), Land Use (Chapter 8), Economic
Development (Chapter 9), and Growth Management (Chapter 10). Comprehensive Plan goals, objectives
and policies are addressed as follows:
Public Facilities
The Boise City Comprehensive Plan anticipates a projected population of 253 000 within the Boise
Planning Area by the year 2015 (Objective 7.1). Population growth in surrounding municipalities is also
steadily increasing. Current and future population of the city and region will need to be served by adequate
public infrastructure to protect the quality of life enjoyed in the area. Vigorous and continual growth in the
area has created the need to build new facilities. Objective 2.1 encourages projects that ensure "adequate
electrical facilities are available to meet the needs of future development." The proposal for a gas power
plant will provide electrical infrastructure to meet the Comprehensive Plan goal for an adequate supply of
electrical energy to support existing and future land uses in the city (Goal 2.6). The inability to provide
sufficient power to meet electrical demands could have negative consequences to the quality of life in the
area. Inadequate power could lead to higher electrical costs and diminished economic growth. Staff finds
that this proposal will support the Public Facili!ies goals, objectives, and policies by providing additional
electrical generation.
Environmental Quality
Air quality is an issue of health, aesthetics and economics linked with land use. Poor air quality poses a
particular health hazard for the young, elderly, or those suffering from chronic breathing diseases. It can
become an aesthetic issue when it obscures desirable views of the foothills and downtown, Air quality may
CUPOS-OO126/Mountain View Power, Inc.
Page 7
be an economic issue when federal money is withheld due to air pollution. Chapter 3 of the Boise City
Comprehensive Plan encourages the protection of air quality. The Boise Comprehensive Plan encourages
industrial projects that provide "installing scrubbers in smoke stacks and other means of reducing industrial
emission" (Policy 3.2.3). The applicant has proposed low Nox burners that will reduce the emissions
generated by the plant.
Water quality is also vital to livability of Boise residents. Development regulations for water quality are
aimed at protecting environmental resources. An objective of the Comprehensive Plan encourages the
protection of waters at highest standards (Objective 3.1). The applicant has proposed processes for the
treatment of wastewater. Water treatment methods will be reviewed by DEQ, the City of Boise, and the
Idaho Department of Water Resources (IDWR) to ensure the integrity of the aquifer and surface waters.
Staff believes agency review and requirements for the protection of the environment will satisfy the air and
water quality objectives of the Comprehensive Plan.
Communitv Quality
The perceived image of a community underlies its desirability, economic viability, and quality of life. The
Community Quality chapter of the Boise Comprehensive Plan seeks the protection and enhancement of the
City s visual qualities. The project is located within a Design Review overlay district. Development of the
project will be reviewed by the Design Review Committee to insure the general appearance of buildings and
rn site improvements. The project is located far from residential and commercial developments. The site is
approximately 7'3 mile west of the east entrance of Interstate 84 to the Treasure Valley. The appearance of
the power plant is an important consideration as it will be visible from the Interstate. Future development of
the East Gateway Industrial Park may obscure the sight of the power plants, but this may not occur in the
short term. Staff has recommended conditions that the Design Review Committee will evaluate the
architectural design treatment of the buildings, parking, landscaping, and outdoor storage areas. Approval
of Design Review relative to the visual characteristics of the site will provide a compatible and attractive
proj ect.
Land Use
The Boise Comprehensive Plan encourages heavy industries and industrial uses that generate unusual noises
and/or odors to be located within the industrial districts (policy 8.1). The grouping of Industrial uses
facilitates manufacturing clusters, supports the economic base, and protects neighborhoods. The noises and
emissions from the plant will be mitigated due to the location to the east of the Boise Airport and on the
fringe of the city. Residential developments are prohibited in Industrial zones, therefore incompatible
residential developments will not encroach upon the subject area.
The site is located within the Airport Planning Area. This area is unique as it is the only Planning Area
within the city without residentially-designated areas. Thisexc1usion is due to the inherent incompatibilities
between heavy industrial and residential uses. The omission of residentially designated areas in this
Planning Area indicates there will not be an encroachment of residences near the proposed site. The
Industrial area to the east of the airport has been established to protect and promote industrial uses
preferably heavier and noisier manufacturing businesses that may not be appropriate in other industrial areas
of the city (policy 8.14.1 and Policy 8.14.3). Industrial and manufacturing uses in this area also benefit
from convenient access to the shipping routes, such as the Boise Airport, rail lines, and Interstate 84.
Specific to the Airport Planning Area, the project complies with policy that industrial area east of the airport
should support manufacturing uses (Policy 8.14.3) policy which requires development within the Airport
Influence i'uea shall be required to adhere to the noise standards (Policy 8.14.8). Staff finds the proposed
CUPO5-00126/Mountain View Power, Inc.
Page 8
approval of a power plant meets the objectives of the Boise Airport Planning Area and general land use
plans of the Boise Comprehensive Plan.
Economic Development
Providing infrastructure adequate to support new development is essential for attracting industrial-sector
jobs. Plant one of the power plant will provide necessary infrastructure for natural population growth and
business expansion in the Treasure Valley. The Comprehensive Plan indicates that if a designated area
cannot be feasibly served by necessary infrastructure the city should consider redesignating it for less
intensive uses and concentrating economic development efforts elsewhere (policy 9.1). The inability to
provide necessary services for industry and the reclassification of industrial zoning to zones which do not
require electrical generation would be a tremendous opportunity cost for the city. The development of this
area will not occur without adequate electrical generation. The lack of necessary electricity in the area
could lead to brownouts. The effect of these outages could be increased crime, health problems, and job
stoppages.
A goal of the Economic Development chapter encourages the provision of adequate infrastructure for
business creation and expansion (Goal 9.0). These plants will provide a support base for current and future
land uses within the city. The development of a gas power plant will provide electricity for residences and
businesses in the area. The second power plant will provide for the East Gateway Industrial park which will
be an asset in attracting and retaining industry to this area.
(/')
a::
;::.
...J...J
0::(
The applicant was instrumental in amending Idaho Code (IC) enabling local jurisdictions to receive tax
benefits for power plants (IC 63-405). This bill changed the allocation of property taxes from an electric
generating plant as an incentive to cities to permit a power plant to locate within or near a city, by providing
that the property taxes are apportioned to local municipalities. Appraised values of the site after
development will generate additional property tax revenues. This additional tax revenue will provide
resources necessary to support services provided for by the city. Staff finds the requested Conditional Use
approval will support regional and local economic development goals. This request will also provide
economic benefit to the city through property taxes and annual lease payments.
Growth Manaszement
Public services and infrastructure strongly influence the ability of the city to develop. A goal of the Growth
Management chapter of the Boise City Comprehensive Plan (Chapter 10) encourages public infrastructure
to be developed in a way to keep up with development of residential, commercial, and industrial areas.
Necessary infrastructure such as electricity will need to be provided to accommodate that growth. The goal
for electricity in the Boise City Comprehensive Plan is to ensure an adequate, safe, and orderly supply of
electrical energy is available to support existing and future land uses in the city (Goal 10.0). This project
will provide a peaking plant for summer and winter months to supplement electrical power already available
to the area. This request supports many of the policies of growth management and will enable the
appropriate future growth of the area.
In conclusion, the natural gas power plants at the subject property meet criteria for approval. It is a
compatible land use in an Industrial zone in the Boise Airport Planning Area. The power plant will support
public infrastructure by providing electricity in peak times. The site will provide a support base for
industrial, commercial, and residential uses. The recommended conditions of approval will mitigate
negative impacts of the proposal.
(J)
z-~UJ, '
::;:. ~\ '.
. ,oJ:
'" \,\...;..j
""",""ocr:: :I"
. ,,;:-. ~
f5.
------
CUP05-00126/Mountain View Power, Inc.
Page 9
Conditions of Approval
Site Specific:
Construction, use and property development shall be in compliance with plans and specifications on
file with the Boise City Planning and Development Services Department date stamped received on
September 27, 2005 except as may be modified by the Boise City Design Review Committee or
Staff or expressly modified by the following conditions.
The energy production facility shall be limited to a maximum of 250 megawatts for plant one plant.
The energy production facility shall be limited to a maximum of 100 megawatts for plant two.
Mountain View Power shall secure an air quality Permit to Construct (PTC) from DEQ that is
consistent with the design information and emissions rates provided in the Gateway Power Plant Air
Quality Modeling Analysis prepared by Greystone Environmental Consultants, Inc, and submitted in
December 2005 , for Mountain View Power.
Best management practices shall be adhered to. The emissions stack shall implement insulation and
silencing equipment to baffle noise pollution. The applicant shall submit an air permit application'
with the Idaho Department of Environmental Quality that will limit the continuous emission rate for
proposed power plant # 1 to 10 parts per million nitrogen oxides and 10 parts per million carbon
monoxide as measured by a continuous emissions monitoring system (CEMS) at the plant, exclusive
oftime periods when the plant is in start-up or shut-down mode and operating below installed 70%
capacity.
Power Plant #2 shall meet or exceed the requirements of Plant #1.
The applicant shall comply with the conditions of the Idaho Department of Environmental Quality
(DEQ) per Department comments dated October 31, 2005. Requirements include, but are not limited
, the following:
a. The applicant shall contact Michael McGown for an applicability determination.
b. The applicant shall contact June Ramsdell, Air Quality Manager. Compliance with DEQ
requirements for air quality shall be required.
c. The applicant shall contact Chris Ariss, Engineering Manager. Compliance with DEQ
requirements for wastewater shall be required.
d. The applicant shall contact Tiffany Floyd, Drinking Water Manager. Compliance with DEQ
requirements for drinking water shall be required.
e. The applicant shall contact Craig Shepard, Water Quality Manager. Compliance with DEQ
requirements for water quality shall be required.
f. The applicant shall contact Ron Lane, Remediation Manager. Compliance with DEQ
requirements for hazardous waste and gTound water contamination shall be required.
g. If required a Permit to Construct shall be obtained.
h. A National Pollution Discharge Elimination System (NPDES) Permit is required.
construction disturbs more than one acre of land the applicant shall obtain permit coverage
from EP A.
C/)
:;:.
....J....J
0:(
ClJPOS-OO 126/Mountain View Power, Inc,
Page 10
1. To obtain a construction General Permit, operators must develop a site-specific Storm Water
Pollution Prevention Plan.
j. No trash or other solid waste should be buried, burned or otherwise disposed at the site.
k. Injection wells are regulated by the Idaho Department of Water Resources (ID\VR).
Comply with all requirements of the Boise Airport Department report, dated stamped received
October 25, 2005. Specifically the applicant shall comply with the following:
a. An avigation easement shall be approved by City legal staff and recorded prior to the
submittal of building permits.
b. A wildlife mitigation plan shall be approved and implemented if required by the Boise
Airport.
c. The applicant shall apply for receive approval from the Federal Aviation Administration for a
Notification of Proposed Construction.
The applicant has proposed phasing of the project. All required infrastructure shall be constructed
prior to the development of each phase. Both phases of this development authorized by this
Conditional Use approval must be completed within 5 years (60 months) from the date of the
Commission s approval or the applicant will be required to submit a new conditional use application.
Prior to the expiration of this conditional use, the Commission may, upon written request by the
holder, grant a one-year time extension. A maximum oftbree (3) extensions may be granted.
10.Prior to application for a building permit, the applicant shall provide documentation to the Boise
City Planning and Development Services Departments that the site has a minimum of30 feet
frontage on a public street or a permanent access easement to a public street which was of record
prior to August 16, 1966 or prior to annexation by the City of Boise.
11.This project is in a Design Review District and shall be subject to review and approval by the Design
Review Committee. The Committee shall specifically address the following:
Landscaping and berming around the perimeter of the site provide a sight break from the
Interstate and mitigate any impacts for future development.
Landscaping that shall reduce the impact of carbon monoxide generated on-site.
Fencing to restrict unauthorized access to the site.
Outdoor storage shall be screened from public view.
Colors and compatibility of buildings.
The Design Review Committee shall also review and approve any exterior lighting so that it
compatible with future development.
12,The applicant shall comply with the requirements of the Boise City Public Works Department
(BCPW) for sewers per Department comments dated October 2005. Please contact BCPW at
384-3900. .tVl items required by BCPW shall be included on the plans/specific:ations that are
13.
14.
15.
General:
(f)a::
d1 17.
:;:.
0:(
ClJPO5-00126/Mountain View Power, Inc.
Page 11
submitted for a Building Permit. Please note that any changes or modifications by the owner to the
approved plans must be submitted to the Public Works Department for approval.
Comply with all conditions of the Ada County Highway District report, date stamped received
October 3, 2005. Proof of legal access shall be provided.
Comply with all conditions of the Boise Fire Department report PRE05-00361. Any deviation :ITom
this plan is subject to fire department approval. For additional information, contact David S, Miller
at 384-3827.
All parking areas and driveways shall be paved, and shall be designed and laid out to conform to the
minimum standards required by the Boise City Zoning Ordinance. The applicant shall provide at
least one (1) ADA parking space for each phase.
16.No change in the terms and conditions of this approval shall be valid unless in writing and signed by
the applicant or his authorized representative, and an authorized representative of the City of Boise.
The burden shall be upon the applicant to obtain the written confirmation of any change and not
upon the City of Boise.
Any change by the applicant in the planned use of the property which is the subject of this
application, shall require the applicant to comply with all rules, regulations, ordinances, plans, or
other regulatory and legal restrictions in force at the time the applicant or its successors in interest
advises the City of its intent to change the planned use of the property described herein unless a
variance in said requirements or other legal relief is granted pursuant to the law in effect at the time
the change in use is sought.
18.Prior to issuance of a Building Permit and prior to any construction on the site, an Erosion and
Sediment Control Permit must be obtained from the Building Division of the Planning and
Development Services Department.
19.An Occupancy Permit will not be issued by the Building Department until all of these condition(s)
have been complied with. In the event a condition(s) cannot be met by desired date of occupancy,
the Planning Director will determine whether the condition(s) is bondable or should be completed
and if determined to be bondable, a bond will be required in the amount of 110% of the value of the
condition(s) which are incomplete.
20.Vision Triangles as defined in Section 11-01-03 and Section 11-10-04.4G. of the Boise City Zoning
Ordinance shall remain clear of all sight obstructions.
21.A detailed grading and drainage plan shall be submitted for review and approval by the Ada County
Highway District and Boise City Public Works Department before a Building Permit is issued.
The applicant or his/her contractor shall obtain a Right-of-Way Permit from the Ada County
Highway District prior to any construction in the public right-of-way.
23.
24.
25.
26.
27.
28.
29.
30.
Ct::
31-
:;:.
...J...J
0::(
32.
C1JP05-00126/Mountain View Power, Inc.
Page 12
Hook-up to wet line sewers shall be required prior to issuance of an Occupancy Permit.
Utility services shall be provided underground,
This approval does not include approval of any signage. A separate Sign Permit will be required
from the Boise City Planning and Development Services Department prior to installation of sign(s).
All landscaping shall be maintained in a healthy and attractive condition.
Landscaped areas shall be irrigated by an appropriate underground irrigation system.
Exterior lighting fixtures must be designed and located so as to prevent glare or direct light from
falling onto adjoining properties or streets.
Any future division of this parcel into individual lots or parcels, for the purpose of selling the
separate lots to individual owners, will be required to comply with all provisions of Boise City Code
Title 9, Chapter 20, including lot frontage on a public or approved private street, and all
requirements for preliminary and final platting.
Construction, use and property development shall be in conformance with all applicable
requirements of the Boise City Code.
The applicant shall obtain Building Pennits prior to any work commencing on the property.
Specific building construction requirements of the 2000 International Building Code and Uniform
Fire Code will apply. However, these provisions are best addressed at Building Permit application.
..,..,
:1:).Failure to abide by any condition of this Conditional Use Permit shall be grounds for revocation by
the Boise City Planning and Zoning Commission.
MOUNTAIN VIEW POWER'ANSWERS
STAFF'S FIRST PRODUCTION REQUESTS
Attachment to Response
Request No.
Fina/ March 30, 2005
IIJAII) POWE
An IDACORP Company
Idaho Power Company
1221 West Idaho Street
Boise , Idaho 83702
REQUEST FOR PROPOSALS
Peaking Resource
RFP Issue Date-March 30, 2005
Pre-Bid Conference-Apri121 , 2005
Mountain Home, Idaho
Notice ofIntent Due-May 5, 2005
Proposals Due-June 2, 2005
RFP Website
www.idahopower. co m/a bo u tu s/bu sin ess/r/jJ/
Fina/ March 30, 2005
Table of Contents
Scope of Request .........................................................................................
Alternative I-Evander Andrews Power Complex..............................................
Alternative II-Bennett Mountain Power Plant................................................... 2
Alternative III......................................................................................................
General Information ...........................................................................................
0 RFP Website and Communication ................................................................
0 RFP Schedule............................................................................................... 7
General Proposal Guidelines ........................................................................
Instructions for Submitting a NOI.......................................................................
Instructions for Submitting a Proposal............................................................... 9
Confidentiality ..................................................................................................
Minimum Credit Requirements.........................................................................
Limitation of Liability.........................................................................................
General Requirements.....................................................................................
Regulatory Provisions ......................................................................................
Environmental and Siting Requirements.......................................................... 14
Reservation of Rights.......................................................................................
Performance Assurances.................................................................................
0 RFP Response Instructions ........................................................................
Project Information...........................................................................................
Company Information.......................................................................................
Detailed Description of Requested Proposal................................................... 19
Proposal Evaluation Procedure.... ...................................................................
Non-price attributes..........................................................................................
Evander Andrews Power Complex Site Information ...................................
Bennett Mountain Power Plant Site Information.......................................... 25
Transmission and Interconnection Requirements.......................................
_---
.DAtI) POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
----~-----
Page i
Final March 30, 2005
Transmission Requirements and Constraints.................................................. 27
Resource Information Requirements ...............................................................
Transmission and Generation Interconnection Requirements .........................
Electrical Transmission Pricing Information ................................................. ....
About Idaho Power Company.....................................................................
10.Turnkey Pricing Schedule .........................................................................
11.Notice of Intent to Bid Form (NOI)............................................................. 35
Idaho Power Company
Peaking Resource RFP 2005
Page iiJ
IDAHO POWER
An IDACORP Company
Final March 3D, 2005
Scope of Request
Idaho Power Company (IPC) is seeking to acquire peaking electric generating resources on a
turnkey basis to expand its generation portfolio. IPC issues this Request for Proposals (RFP)
to solicit and screen, for subsequent contract negotiations, competitive proposals that will offer
exceptional value to IPC and its customers. By responding, Respondents are bound by the
terms and conditions of this RFP. IPC will not accept proposals from affiliates or subsidiaries
of IDA CORP.
Idaho Power Company identified a need for peaking resource electric generation in the Idaho
Power Company 2004 Integrated Resource Plan (IRP). Specifically, the 2004 IRP indicated
that Idaho Power Company would issue an RFP for 88 MW of peaking resource. Summary
details of this RFP are:
PRODUCT
A turnkey electric generation resource located within Idaho Power Company s service
territory to meet peak energy demands. Upon its completion, legal title of the generating
resource will be conveyed to Idaho Power Company. Power purchase agreements where
legal title of the generating facilities is not conveyed will not be considered in this RFP.
QUANTITY
Idaho Power Company anticipates acquiring 88 MW of delivered capacity under summer
conditions (900F; 20% relative humidity) at the elevation of the site identified in the
proposal. Based on present market conditions of combustion turbines, IPC will consider
acquiring resources from 80 MW to 200 MW.
TERM
Provisional Acceptance of the peaking resource must commence no later than April 1
2007.
The primary need for this resource is to provide electricity during peak energy
requirements for the Treasure Valley load center. Idaho Power Company invites
Respondents to offer proposals to locate turnkey generating facilities in the locations
described below.
Alternative I-Evander Andrews Power Complex
Idaho Power Company owns and operates the Evander Andrews Power Complex located
at Mountain Home, Idaho. The power plant has two simple cycle Siemens Westinghouse
W251B 12A natural gas combustion turbines located on a 40-acre site. These turbines
have a nominal rating of 42 MW each at 900F and 20% relative humidity at an elevation
of 3 112 feet above sea level. The power plant consists of an existing control room and
warehouse. Expansion of the existing control room will be required and is the
responsibility of the Respondent. Any expansion of the warehouse will be IPC
responsibility. Specific site information is included in Section 6.
a!~~R Idaho Power Company
Peaking Resource RFP 2005
Page of36
Final March 3D, 2005
Alternative II-Bennett Mountain Power Plant
Idaho Power Company owns and operates the Bennett Mountain Power Plant located at
Mountain Home, Idaho. The power plant has one simple cycle Siemens Westinghouse
501FD3 natural gas combustion turbine located on an 8-acre site leased in the City
Mountain Home Industrial Park. This turbine has a nominal capacity of 162 MW at 90o
and 20% relative humidity at an elevation of 3 275 feet above sea level. The power plant
consists of an existing control room and warehouse. The warehouse and control room are
adequate size and do not require expansion. Specific site and technical information is
included in Section 7.
Alternative III
Idaho Power Company invites Respondents to make proposals for a site of their
choosing. Idaho Power Company is very interested in reviewing proposals that can
provide electric capacity to the Treasure Valley load center. The generating facility must
be located on land owned or under option by the Respondent with all environmental
attributes, land rights, water rights, permits, and other licenses capable of being assigned
, purchased by, or otherwise transferred to Idaho Power Company. All land leases
permits, and licenses are subject to Idaho Power Company approval and must be in
adequate form and for an adequate term (at least the life of the asset).
The generating facility must be designed and constructed in conformance with the all
Federal Energy Regulatory Commission (FERC) , Western Electricity Coordinating
Council (WECC), Idaho Public Utility Commission (IPUC), Idaho Department of
Transportation (IDOT), Idaho Department of Environmental Quality (IDEQ),
Environmental Protection Agency (EP A) and other applicable regulatory reliability
agreements, procedures, protocols, tariffs and standards.
General Information
The general scope of the proposal will include engineering, procurement, and
construction for all the facilities, starting at the gas supply flange at the project boundary
and ending at the high side bushing of the generator step up transformer (GSU) (please
review additional requirements for Alternative III proposals below), necessary to supply a
fully operational electric generating project. The proposal should include the required
natural gas supply volume (mmbtulhour) and minimum pressure (psig.) at the boundary.
If gas compression is required for normal facility operation please include cost.
For Alternative I and II, the Respondent is responsible for all construction permits and
IPC will provide the air permit. For Alternative III, the respondent is responsible for all
permits.
For Alternative III, the proposed electric transmission system improvements for both the
interconnection and network upgrades should be described. Any environmental
assessment and permitting work that has been completed for the proposed electric
transmission system improvements should be described in the proposal. Completed
La!~~Idaho Power Company
Peaking Resource RFP 2005
Page of 36 i
Final March 30, 2005
environmental and permitting work for electric transmission improvements will be
viewed favorably.
However, IPC will be responsible for developing gas and electrical transmission to the
proposed development for all Alternatives. The generating facility and transmission
interconnection will be designed and constructed in conformance with the all FERC
WECC, IPUC, IDOT, EP and other applicable regulatory reliability agreements
procedures, protocols, tariffs and standards. The estimated cost of gas and electrical
transmission improvements will be included in the overall proposal evaluation.
Idaho Power Company
Peaking Resource RFP 2005
Page of
DAHO POWER
An IDACORP Company
Final March 30, 2005
This page left blank intentionally.
DAHO POWER
An IDACORP Company
...__.
Idaho Power Company
Peaking Resource RFP 2005
Page of 36
Final March 30, 2005
RFP Website and Communication
The RFP and all subsequent revisions are available for download from the RFP Web site.
The website address is:
www.idahopower.com/aboutus/business/rfp/
Respondents are responsible for accessing the RFP Web site for updated schedules and
possible amendments to the RFP or the solicitation process.
The RFP Website contains a restricted area. The restricted area, which may only be
accessed with a user ID and password, contains a Question and Answer forum and other
information. Respondents must have access to the restricted area to submit RFP-related
questions and upload electronic offers.
Register online at www.idahopower.com/aboutusibusiness/rfp/ by following the "Peaking
Resource 2005" links. The information listed below is required of Respondents in order
to register and obtain a user ID and password to access the site. The Respondents must
register prior to the Notice ofIntent (NOI) date shown in Section 3.0. User accounts for
potential Respondents who have not submitted an NOI will be deleted after the NOI due
date:
1. Name of Company
2. Company Address
3. Contact Information:
a. Name
b. Phone number
c. Fax number
d. E-mail address
Instructions regarding access and use of the RFP Web site will be sent to the
Respondent's e-mail address.
All questions or other communications regarding this RFP must be submitted via the
Restricted Area of the RFP Website by the deadline specified in Section 3.0 RFP
Schedule. Idaho Power Company will not accept questions or comments in any other
form, except during the pre-bid conference.
IDAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page of 36
Fina/ March 30, 2005
This page left blank intentionally.
IDAHO POWER
An IDACORP Company
Idaho Power Company!
Peaking Resource RFP 2005
Page 60(36!
--.-.
Final March 30, 2005
RFP Schedule
RFP Issue Date March 30, 2005
Pre-Bid Conference Apri121, 2005 1:30 PM Mountain Time
Evander Andrews Power Complex
1462 Mashburn Rd
Mountain Home, Idaho 83647
Notice of Intent to Bid Due (NOI)May 5, 2005 4:00 PM Mountain Time
Question and Answer Period Closes May 2005 4:00 PM Mountain Time
(Questions must be received in writing)
Proposals Due June 2005 4:00 PM Mountain Time
Short-List Notification July 2005
Identify Successful Bidder August 2005
Complete Negotiations September 2005
Idaho PUC Filing October 2005
Commence Energy Delivery Provisional Acceptance April 2007
Respondents are strongly encouraged to attend the pre-bid conference.
Pre-bid conference participants will be required to sign in with Idaho Power Company.
A list of pre-bid conference participants will be provided on the RFP Website.
The schedule and deadlines shown above apply to this RFP. Idaho Power Company
reserves the right to revise the RFP schedule at any time. Respondents are responsible for
accessing the RFP Website for updated schedules and possible amendments to the RFP or
the solicitation process.
DAltO POWE
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
.-------------
Page of 36 i
Final March 30 2005
This page left blank intentionally.
IIWtO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page of361
--._-~_._.
Final March 30, 2005
General Proposal Guidelines
Instructions for Submitting a NOI
All Respondents must submit a written Notice Of Intent To Bid Form (NOI-please see
Section 11 of this RFP). An electronic version of the Notice Of Intent To Bid Form
located at: http://www.idahopower.com/aboutusibusiness/rfp/. A completed form must be
submitted by Respondents who desire access to the website Question and Answer forum.
Please submit the NOI to the Idaho Power Company RFP Contact by confirmed e-mail
confirmed facsimile, Certified Mail, Return Receipt Requested, or overnight courier by
date shown in Section 3.0. It is the responsibility of the Respondent to insure and
confirm receipt of the NOI by the Idaho Power Company Contact. Voice telephone
notices will not be acknowledged. Proposals received from Respondents who have not
made a timely submission of an NOI will be returned unopened. Respondents must
indicate on the NOI if they are interested in receiving information packets about the
Evanders Andrews Power Complex or Bennett Mountain Power Plant. Information
packets will be sent via (FedEx, etc.) to the name and address shown on the NOr.
Instructions for Submitting a Proposal
Respondents should, at the time of proposal submittal, supply any additional information
not requested in this RFP if such information may be needed for a thorough
understanding or evaluation of the proposal. All responses will be considered
commitments to be used in defining any agreement between Idaho Power Company and
the Respondent that may arise from this RFP.
A signed printed original, seven (7) printed copies and one (1) electronic copy of the
proposal including all attachments, must be submitted. In the event of a discrepancy
between the electronic forms and the printed copy, the printed copy will be considered to
be correct.
A duly authorized officer of the Respondent must sign and date the proposal.
All proposals, including all attachments, must be properly completed and submitted by
overnight courier or Registered or Certified Mail, Return Receipt Requested, in both hard
copy and electronic versions, to Idaho Power Company s RFP Contact:
Idaho Power Company!
Peaking Resource RFP 20051
Page of36
IDAHO POWER
An IDACORP Company
-- -
Fina/ March 30, 2005
RE: Peaking Resource RFP 2005
F. Gregory Hall
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83702
Phone: [phone]
Fax: [phone]
Mail: PeakingResourceRFP2005~IdahoPower.com
All proposals must be received by the Idaho Power Company RFP contact no later than
the time and date shown in Section 3.0. Late proposals will be returned unopened.
Incomplete proposals may be summarily eliminated at IPC discretion. Proposals will
remain binding on Respondents through the completion of negotiations and contract
execution.
All inquiries and other communications relating in any manner to this RFP must be
directed in writing or by facsimile or e-mail to Idaho Power Company s RFP Contact, or
posted on Idaho Power Company s RFP web site Question and Answer forum at:
http://www.idahopower.com/aboutusibusiness/rfp/. Idaho Power Company may distribute
Respondent's questions and Idaho Power Company s answers to such questions to all
other Respondents if Idaho Power Company deems the question to be of general interest.
Unsolicited contact about the RFP process with other Idaho Power Company personnel or
attorneys or consultants retained by Idaho Power Company may result in disqualification.
Complete information is needed to facilitate a timely evaluation. Idaho Power Company
may request clarifying or additional information at any time during the evaluation
process. Respondent will be expected to provide timely responses to facilitate the
evaluation and decision-making process within the time constraints. Respondents must
provide all data requested in the RFP and the applicable attachments. Idaho Power
Company may eliminate non-specific offers from further consideration.
Proposals must include all construction and other costs for the generation resource that Idaho
Power Company would be expected to pay. Dollar figures quoted must be clearly stated in
US. dollars as nominal for the year in which the costs occur. For non-nominal amounts, the
appropriate year for the stated dollars must be identified along with the applicable escalation
rates to be used for subsequent years.
None of the materials timely received, as part ofa proposal will be returned. All materials
and proposals submitted will become the property of Idaho Power Company and will be
used by Idaho Power Company for proposal evaluation.
~!~o Idaho Power Company
Peaking Resource RFP 2005
Page 10 of 36 i
Final March 30, 2005
Confidentiality
Idaho Power Company will take reasonable precautions and use reasonable efforts to
protect any proprietary and confidential information contained in a proposal provided that
such information is clearly identified by Respondent as "Proprietary and Confidential" on
the header section of the page on which proprietary and confidential information appears.
Such information may be made available under applicable state or federal law to
regulatory commission(s), their staff(s), or other governmental agencies having an
interest in these matters. Idaho Power Company also reserves the right to release such
information to its agents or consultants for the purpose of evaluating Respondent'
proposal but such agents or consultants will be required to observe the same care with
respect to disclosure as Idaho Power Company. Under no circumstances will Idaho
Power Company or IDACORP, Inc. or their agents or contractors be liable for any
damages resulting from any disclosure during or after the solicitation process.
Respondents are advised that proposals are likely to be the subject matter of discovery in
regulatory proceedings. Discovery in these cases is routinely restricted by confidentiality
agreements and standard protective orders issued by the regulatory agency.
Minimum Credit Requirements
Respondent or Guarantor of Respondent must be able to financially secure the project
and contract. It is the responsibility of the Respondent or Guarantor of Respondent to
demonstrate financial security to the satisfaction of Idaho Power Company. Idaho Power
Company suggests that Respondent or Guarantor of Respondent possess a senior
unsecured debt rating, issued or reaffirmed within the last 12 months, equivalent to no
less than BBB- from Standard & Poor s or Baa3 from Moody s at the time of proposal.
The Respondent must be able to provide audited year-end financial statements for all
specific entities proposing to contract with Idaho Power Company and any guarantor(s)
within 120 days following the end of each fiscal year. The Respondent must be able to
provide satisfactory performance assurances in the event Idaho Power Company believes
Respondent's ability to perform or creditworthiness has become unacceptable. The
Respondent must be willing to grant a present and continuing security interest in any
performance assurances or cash equivalent collateral.
Limitation of Liability
Neither Idaho Power Company nor its employees, directors, shareholders
representatives, agents, consultants, affiliate companies, or parent company shall be liable
for any expenses Respondent incurs in connection with preparation of a response to this
RFP or for any costs, fees, or lost or foregone profits of unsuccessful proposals. Idaho
Power Company will not reimburse Respondents for their expenses under any
circumstances, regardless of whether the RFP process proceeds to a successful conclusion
or is abandoned by Idaho Power Company at its sole discretion.
Idaho Power Company
Peaking Resource RFP 2005
Page 11 of36 ------.J
IDAHO POWER
An IDACORP Company
Final March 30, 2005
General Requirements
To meet the need of 88 MW of capacity and related energy, IPC will accept bids for a
turnkey electric generation resource within the IPC's service territory. Based on present
market conditions of combustion turbines, IPC will consider proposals from 80 MW to
200 MW. Proposals of less than 80 MW may be combined at the discretion of IPC with
other proposals to accumulate the necessary capacity. Capacity and energy offered in
excess of the requested amount will be considered, but the value of any surplus will be
determined at IPC's sole discretion.
1. Only new Original Equipment Manufacturer (OEM) machinery will be accepted.
2. Combustion turbine technology preferred. However, all proposals will be
evaluated on their merits and value that they may provide.
3. The plant design life shall be 30 years.
4. The quality, level of redundancy, type and functionality of the equipment and
facilities shall be similar to those at Evander Andrews Power Complex and
Bennett Mountain Power Plant. These items include but are not limited to:
a. Surfacing materials
b. Operations and maintenance access
c. Compressed air distribution and stations
d. Roads/markings/signage
e. Conduit and terminal block spares
f. Fire protection and detection
g. Construction materials
h. Drainage and grading
i. Fencing
j. Landscaping
k. Local utilities
1. Lighting
5. For Alternatives I and II, the operating control system shall be located in the
existing control room and have remote capability at the operating unit. For
Alternative III, the control system shall be located in a new control room and have
remote capability at the operating unit. For all Alternatives, the control system
shall include redundancy to protect data loss. All Alternatives are required to
provide and install a Continuous Emissions Monitoring System (CEMS) for NOx
and CO that will be compatible with existing systems. Air Pollution
Instrumentation (API) provided the existing emission analyzers for NOx and CO
Idaho Power Company
Peaking Resource RFP 2005
Page 12 of 36
DAHO POWE
An IDACORP Company
Final March 30, 2005
and Servomex provided the Oxygen analyzer. The existing Data Acquisition
Handling System is by General Electric - KVB Enertec.
6. Include a natural gas dew point heater that is sized for proposed generation.
7. Include start up spares to operate the generation resource for one year.
8. Redundancy of critical operating equipment (lube oil pumps, vapor extractors
miscellaneous motors) is preferred.
9. The electric generation resource must meet all Western Electricity Coordinating
Council Reliability Management System requirements including required
generator testing. All associated costs of the initial tests are the responsibility of
the Respondent.
10. Any proposed generation must have synchronous generators and automatic
voltage control with at least a 95 percent power factor capability and a power
system stabilizer.
11. For Alternative III proposals, the Respondent must demonstrate their ability to
obtain both the necessary land use permits and any required air quality and water
consumption and discharge permits.
12. The proposal shall include operation and maintenance training for 8 operators.
13. Provisional Acceptance of the facility must be no later than shown in Section 3.
14. Respondent's proposal must provide a milestone schedule that identifies key dates
including, but not limited to, dates for regulatory approvals, finalization of
transmission and interconnection agreements (where applicable), pre-construction
milestones, and construction milestones, along with terms for default or delay.
15. Respondent must provide an experience listing of prior proj ect development and
operation activities with project-specific information similar to what is proposed.
list including names and telephone numbers of persons familiar with
Respondent's performance for previous customers is required.
Regulatory Provisions
Any negotiated contract between Idaho Power Company and the Respondent will be
conditioned upon approval or acceptance without substantial change by any and all
regulatory authorities that have, or claim to have, jurisdiction over any or all of the
subject matter of this solicitation, including, without limitation, the Idaho Public Utilities
Commission.
A Respondent whose proposal is selected must take all necessary actions to satisfy any
and all regulatory requirements including, but not limited to, all licenses and permits
Idaho PowerCompany!
Peaking Resource RFP 2005
Page 13 of 36 I----.J
II1IUtO POWE R
An IDACORP Company
Fina/ March 30, 2005
(excluding air permit for Alternative I and II) that may be imposed on the Respondent by
any federal, state, or local law, or ordinance, rule, or regulation concerning the resource
siting and facility construction. Idaho Power Company will cooperate with Respondent to
provide information or such other assistance as may reasonably be necessary for
Respondent to satisfy such regulatory requirements. Respondent must likewise fully
support all of Idaho Power Company s regulatory requirements associated with this
potential power supply arrangement.
Environmental and Siting Requirements
The Respondent is exclusively and entirely responsible for meeting and satisfying all
federal, state, and local permits, licenses, approvals, and/or variances that are required to
assure physical delivery of capacity and associated energy (unless otherwise stated).
Projects that provide advantageous siting, demonstrated community acceptance
completed environmental analysis, completed archaeological analysis, and completed
permitting may be viewed favorably in the selection process.
Reservation of Rights
Idaho Power Company reserves the right, without qualification and in its sole discretion
to accept or reject any or all proposals for any reason without explanation to the
Respondent. Furthermore, Idaho Power Company reserves the right, without qualification
and in its sole discretion, to make the award to that Respondent, who, in the opinion of
Idaho Power Company, will provide the most value to Idaho Power Company and its
customers. Idaho Power Company will consider both price and non-price attributes in the
evaluation of proposals (please see Section 5.RFP Response Instructions). Idaho
Power Company reserves the right to make an award to other than the lowest price offer
or to the proposal evidencing the greatest technical ability if Idaho Power Company
determines, in its sole discretion, that to do so would result in the greatest value to Idaho
Power Company and its customers. Idaho Power Company may make an award of
contract without further discussion at any time in the RFP process.
Idaho Power Company reserves the right to reject any, all or portions of the proposals
received for failure to meet any criteria set forth in this RFP. Idaho Power Company
makes no guarantee that a contract award will result from this RFP. Idaho Power
Company may decline to enter into an arrangement with any or all Respondents and
Idaho Power Company may abandon the RFP process in its entirety at any time and at its
sole discretion. Idaho Power Company reserves the right to revise the capacity needs
forecast at any point during the RFP process or during negotiations and any such change
may reduce, eliminate or increase the amount of energy sought. Idaho Power Company
reserves the right to revise or terminate the RFP process at any time. Idaho Power
reserves the right to revise the RFP quantity.
During all stages of the RFP process, Idaho Power Company reserves the right to request
additional information from individual Respondents or to request all Respondents to
submit supplemental materials in fulfillment of the content requirements of this RFP or to
meet additional information needs. Idaho Power Company also reserves the unilateral
lDAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page 140(36
Final March 30, 2005
right to waive any technical or format requirements contained in the RFP. Idaho Power
Company will review and may utilize all information submitted by a Respondent that is
not specifically requested as a part of this Request for Proposals.
Those who submit proposals do so without recourse against Idaho Power Company,
IDACORP, Inc., or any ofIDACORP, Inc.'s subsidiary companies , agents, or consultants
for either rejection of their proposal or proposals or for failure to execute an agreement
for any reason.
All offers shall be valid and binding upon the Respondent through contract negotiations
and contract execution.
Performance Assurances
Idaho Power Company will rely on this RFP to meet the near-term incremental electric needs
for its customers with low cost, dependable and reliable electric service. As a result, the
resource must be in commercial operation with a demonstrated high degree of operating
availability on April 1 , 2007. Substantial delay liquidated damages will be included in the
negotiated agreement for failure to meet this commercial operation date. Following April 1
2007, the purchased resource(s) must be guaranteed to operate at an availability of97% during
non-planned outages and stringent availability liquidated damages provisions will be required
in any negotiated agreement. The resource( s ) will be required to meet the appropriate
proposed performance guarantees (i., output, heat rate) or to pay performance liquidated
damages. Financial responsibility assurances will also be required of the Respondent and the
availability of such should be addressed in detail in Respondent's proposal. Other construction
quality controls (such as retainer withholding costs) may also be applied to the selected
project.
IPC may require Respondents selected for the short-list to provide a bid bond or other
financial assurance to provide negotiation security prior to commencing final contract
negotiations.
Idaho Power Company
Peaking Resource RFP 2005
Page of 36 I
IDAHO POWER
An IDACORP Company
IEWtO POWER
An IDACORP Company
Final March 30, 2005
This page left blank intentionally.
Idaho Power Company
Peaking Resource RFP 2005
Page 16 of 36 I
Final March 30, 2005
RFP Response Instructions
Project Information
Offers must contain adequate detail to allow Idaho Power Company to evaluate the
merits and credibility of the proposed resources. All offers submitted in response to this
RFP must contain, at a minimum, the following (additional information requirements are
outlined in Sections 4., 7., and 8.0 of this RFP):
1. Completed Notice ofIntent to Bid form (Section 11)
2. Name of Company, Address, and Company Representative (name, phone number
and email address)
3. Type of Offer (Alternative I, Alternative II, or Alternative III). A separate
proposal is required for each alternative selected.
4. Description of whether or not this capacity has been offered in another RFP or is
in any other way obligated or may be obligated to others, and under what
conditions the capacity would be released to serve the proposed sale to Idaho
Power Company.
5. For Alternative III, provide project location, the merits of selected site, proposed
land rights, easements, and all regulatory and permitting issues.
6. Completed Table 3- Turnkey Pricing Schedule as listed in Section 10. Provide a
firm lump sum price for each of the items listed in the table. The sum of the costs
shall equal the total lump sum turnkey price for the Project. It is understood that
the Respondent is only offering the turnkey scope as priced in item Number 16 in
the table and that the itemized prices may not apply for individually selected
services. Price is to be valid for 180 days.
7. Proposed payment schedule.
8. Description of all of major components (generating units and balance of plant
equipment), including the number of units, manufacturer, model numbers, and site
layout showing the location of the turbines and other major facilities.
9. Description of any security or credit instruments proposed by the Respondent to
back its performance obligation.
10. List summarizing parts, sections and elements of the offer that are confidential or
proprietary.
Respondents offering the same capacity and/or energy from one resource or project to
multiple solicitations are hereby advised that, if Idaho Power Company notifies a
Respondent that its offer is being short-listed, the short-listed Respondent is encouraged
IDAHOPOWER
An IDACORP company
Idaho Power Company
Peaking Resource RFP 2005
Page 17 of 361
---- ------------~-~---
Final March 30, 2005
to withdraw the offer from all other solicitations or risk being removed from the short list.
The short-listed Respondent can confirm such withdrawal by submitting to Idaho Power
Company a copy of the written correspondence sent to all other solicitations pertaining to
such withdrawal while granting Idaho Power Company permission to contact the other
solicitors to confirm the withdrawal. In lieu of withdrawing the offer from all other
solicitations, the Respondent may provide Idaho Power, as Obligee, with either a
Bid/Proposal Bond or an Irrevocable Standby Letter of Credit in the amount of
$20 000.00. If the bid security is a bond, a surety insurer authorized to issue surety bonds
in the State of Idaho shall execute the bond. If a Letter of Credit is used, both the form of
the letter and the issuing bank must be acceptable to Idaho Power Company.
Company Information
Please provide the following information for your company:
1. Corporate profile and Respondent's experience developing similar projects
2. List other projects of a similar nature and technology developed by Respondent
that are currently in operation. List shall include plant name, equipment rating,
equipment manufacturer and model number, equipment quantity, owner name
plant location, contact person with phone number and other pertinent information.
3. Annual reports, Form 10Ks, and Form 8Ks (if filed) for the past 3 years. If these
documents are not readily available, then please provide the audited financial
statements for the past 3 years
4. It is the responsibility of the Respondent and Guarantor of Respondent
demonstrate financial security to the satisfaction of Idaho Power Company. Idaho
Power Company suggests that the Respondent include the Dunn and Bradstreet
identification number credit rating of the Respondent's and Guarantor s senior
debt securities as well as the current credit ratings for the entity proposing to
contract with Idaho Power Company and the parent company of that entity (i.
S&P / Moody s / Fitch credit ratings). Additional documentation may be provided
that allows Idaho Power Company to determine the Respondent's financial
strength.
5. Ten-year summary of the litigation activity related to:
a. Provision of energy products and services (fuel, power, ancillary services
engineering, on-site services),
b. Lease option arrangements for assets
c. Purchases of energy products and services (as above),
d. Industrial construction projects (power plants industrial plants
cogeneration facilities, etc.
Idaho Power Company
Peaking Resource RFP 2005
Page 18 of 36 i
IDAHO POWER
An IDACORP Company
Final March 3D, 2005
Detailed Description of Requested Proposal
1. Provide seasonal unit ratings (MW, MV AR, MV A) of each generating unit
proposed, based on the ambient condition assumptions, 20% relative humidity,
site elevation and barometric pressure during winter (200P), summer (900P), and
ISO (59OP).
2. Describe part load operation and provide maximum and minimum operating
levels and corresponding net heat rates in BtuIkWh, on a lower heating value
(LHV) basis. Also, provide anticipated net heat rates (LHV) during winter (200P),
summer (900P), and ISO (59OP).
3. Provide ramp rate(s) (including fuel consumption) for start up and shut down.
4. Provide start up time from cold start and hot start.
5. Provide start up time for quick start capability, if any.
6. Provide thermal performance guarantee for base load net capacity and net heat
rate (LHV) at:
a. Site elevation and barometric pressure
b. Inlet air temperature at 90o
c. 20% relative humidity
7. Provide emissions guarantee of Nitrogen Oxides and Carbon Monoxide at:
a. 70% to 100% base load
b. -200P to 90oP Ambient Conditions
c. At 15% Oxygen
8. Provide acoustics guarantee (no more than 58 db at 700 feet from the equipment
envelope).
9. Identify any power augmentation methods used to achieve performance guarantee
(evaporative cooling is preferred).
10. Provide reliability information of proposed technology. Include description of
any redundancy that improves reliability.
11. Describe generator, power factor, and power system stabilizer.
12. Provide a generator capability curve.
13. Provide generator step up transformer output voltage.
IDAHO POWER
An IDACORP company
Idaho Power Company
Peaking Resource RFP 2005
Page 19 of 361
Final March 30 2005
14. Describe how the generation resource will meet all Western Electricity
Coordinating Council Reliability Management requirements including generator
testing.
15. Provide equivalent forced outage rates.
16. Provide fuel supply requirements-minimum and maximum operating pressure
(psig) and volume (lbslhr) at base load (for summer and winter conditions).
Include information about any gas compression equipment, if any.
17. Provide fuel specifications requirements for summer and winter operations.
18. Provide start up energy requirements.
19. Provide auxiliary power requirements.
20. Describe any other limit on use or availability of resource s output, if any.
21. Provide description of operating control system. Include type of control system
benefits, redundancy information, location, and number of terminals.
22. Provide information of dew point heater. Include sizing information.
23. Provide information of gas compressor (if any). Include sizing information.
24. Provide Original Equipment Manufacturer (OEM) recommend spare parts list for
pricing valid until Dec. 31 , 2007.
25. Provide number of stacks and stack height.
26. Provide OEM recommended service maintenance intervals and maintenance
requirements for major components.
27. Provide proposed start up spares for one-year operation of equipment.
28. Provide water usage and discharge rates with detailed water supply plan and
disposal plan.
29. Provide water quality specifications.
30. Describe proposed roads including surface materials.
31. Describe access for operations and maintenance.
32. Describe compressed air distribution.
33. Describe proposed lighting, fencing and fire protection.ii~~
l--=
Idaho Power Company!
Peaking Resource RFP 2005
Page 20 of 36 I
Final March 30, 2005
34. Provide overall Level l project and construction schedule (include major
milestones such as completion of permitting, financing, regulatory requirements
major construction, testing, on line date, etc.
35. Describe the plant design life.
36. Describe proposed training.
37. For Alternative III, provide a thorough description of anticipated environmental
impact, environmental permitting requirements, and actions for compliance and
include all milestones and dates.
Proposal Evaluation Procedure
IPC will evaluate proposals and select proposals, if any, which provide the most value to
IPC and its customers. IPC reserves the right to evaluate the proposals in a manner that
ultimately produces the most competitive responses from which to begin negotiations.
Proposals may be combined with other proposals. IPC will determine at its sole discretion
the value of any and/or all proposals.
Information provided from each Respondent by the proposal due date will be used to
develop a short-list of proposals from which selection(s) could be made for direct
negotiations. No additional information will be accepted after the proposal due date
except for clarifications requested by IPC and possible transmission study results. IPC
will evaluate the proposals in terms of price and non-price attributes.
IPC will perform an initial screening evaluation to identify and eliminate any proposals
that are not responsive to the RFP, do not meet the minimum requirements set forth in the
RFP, are clearly not economically competitive with other proposals, or are submitted by
Respondents that lack appropriate creditworthiness or sufficient financial resources or
experience qualifications to provide dependable and reliable service.
The proposals that pass the initial screening evaluation will be further evaluated based on
economic and quantitative analysis and consideration of non-price attributes. A selection
of the best proposals will be chosen as a short-list for negotiations. Short-listed proposals
will compete with each other before IPC makes any final decision.
Non-price attributes
As noted earlier, the most desirable proposals will be proposals that offer exceptional
value to IPC and its customers. Proposals that positively address the following value-
adding characteristics will enhance their chance of success. This list of attributes is not
intended to be all-inclusive nor is this list in any specific order. Other innovative and cost
effective offerings that provide value to IPC and its customers may be viewed favorably.
1. Guarantee to deliver completed generating facility by date shown in Section 3.
2. Offer a fixed price to purchase the generating asset;
lDAHO POWER
An IDACORP Company
Idaho Power Company;
Peaking Resource RFP 2005
Page 21 0(36
Final March 30, 2005
3. Offer greater supplier performance assurances through parent guarantees
securities, deposits, or other means;
4. Offer guaranteed net heat rates and include fuel specifications and requirements
and any other information that would be required to evaluate the offer;
5. Provide Respondent's qualifications and experience, for example, a listing of prior
project development and operation activities with project-specific information
concerning performance of other proj ects developed. A list including names and
telephone numbers of persons familiar with Respondent's performance for
previous customers would be viewed favorably;
6. Offer delivery assurances, for example, proposals for a guaranteed equivalent
forced outage rate would be viewed favorably;
7. Provide an advantageous project location considering: grid location, zoning,
community acceptance, use of existing IPC operation and maintenance personnel
local water supply and other environmental impacts; and
8. Demonstrate enhancement of IPC system reliability, integrity, and utilization
through application of mature technologies.
IDAHO POWER
An IDACORP Company
Idaho Power Company:
Peaking Resource RFP 2005
Page 22 of 36 I
Fina/ March 30, 2005
Evander Andrews Power Complex Site Information
Address
Current Configuration
entation
Gas Supply
Water Su
Clean Water Disposal
Fire Protection
Air Permit
Dew Point Heater
Warehouse
Control Room
Noise Requirement for
local ordinance
Transmission
Closest permanent
occu ied dwelling
Substation
Table 1
1462 Mashburn Rd., Mountain Home, Elmore Coun , Idaho
2 ea. Siemens Westinghouse W251B12A Natural Gas
Turbines-Simple Cycle-nominal 45 MW each (ISO
Conditions)
112 feet above sea level
Eva orative coolin at each turbine intake
40 acres owned b IPC-Fenced; Landsca ed
70 feet with sound bafflin
Existing 16-inch diameter. Approx. 4 000 ft lateral line from
Williams Pipeline (mode pressure 530 psig)
Current su I flow is a rox. 1 000 mmbtu/hr
Site well with existing water rights
Septic system for domestic sanitary sewer. Existing storage
pond with direct land application for evaporative cooler
discharge. Respondents may use storage pond for clean water
dis osal for eva orative cooler for new unit s .
Existing 30 000-gallon storage tank. Storage tank is sized for
existin e ui ment onl .
Existing Permit to Construct Synthetic Minor-IPC will
rovide air ermit.
Existing natural gas dew point heater is sized for existing units
only. Please plan for an additional dew point heater properly
sized for ro osal.
An ex ansion of warehouse will be
A 28 ft X 36 ft ex ansion is re uired
58 dba at 700 ft from equipment envelope
Existin 138 KV line
000 ft.
Sized onl
IDAHO POWER
An IDACORP Company
Idaho Power Company.
Peaking Resource RFP 20051
Page 23 of 36 !
Final March 30, 2005
This page left blank intentionally.
IDAHO POWER
An IDACORP Company
---
Idaho Power Company!
Peaking Resource RFP 2005
Page 24 of 36 i
Final March 30, 2005
Bennett Mountain Power Plant Site Information
Address
Current Configuration
entation
Gas Supply
Water Supply
Clean Water Disposal
Fire Protection
Air Permit
Dew Point Heater
Warehouse
Control Room
Noise Requirement for
local ordinance
Transmission
Closest permanent
occu ied dwellin
Substation
Table 2
2750 NE Industrial Way, Mountain Home, Elmore County,
Idaho
1 ea. Siemens Westinghouse W501FD3 Natural Gas
Turbine-Sim Ie C cle-nominal175 MW ISO Conditions
275 feet above sea level
Eva orative coo1in at turbine intake
8 acres leased b IPC-Fenced; no landsca in
60 feet with sound bafflin
Existing 12-inch diameter, approx. 3 200 ft lateral line ttom
Williams Pipeline. (mode pressure 530 psig)
Current su 1y flow is a rox. 1 900 mmbtu/hr
Provided by the City of Mountain Home and sized only for
existing unit.
City sanitary sewer system for domestic use. Clean water
discharge from existing evaporative cooler is undetermined at
this time.
Provided b the Ci of Mountain Home
Existing Permit to Construct Synthetic Minor-IPC will
rovide air ermit
Existing natural gas dew point heater is sized for existing units
only. Please plan for additional dew point heater properly
sized for ro osaL
An ex ansion of warehouse will be
Existin control room is to be used.
58 dba at 700 ft. from equipment envelope
Existin 230 KV line
700 ft.
Sized onl
IDAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 20051
Page 25 of361
IDAHO POWER
An IDACORP Company
Final March 30, 2005
This page left blank intentionally.
Idaho Power Company
Peaking Resource RFP 2005
Page 26 of 36
Final March 30, 2005
Transmission and Interconnection Requirements
Transmission Requirements and Constraints
The IPC transmission system has several constraints, which substantially limit the
amount of energy that can be transferred from points "upstream" of the constraints and
delivered to the Boise area without the construction of additional transmission capacity.
A description of these transmission constraints is contained in IPC's 2004 Integrated
Resource Plan (IRP). The estimated costs of the electrical transmission interconnection
and network upgrades for each proposal will be considered during the evaluation process.
Proposals for Alternatives I or II are not required to include estimated electric
transmission improvement costs beyond the generator step-up transformer (GSU) high
side bushings.
Alternative III proposals are required to include a description of the proposed electrical
transmission interconnection and network upgrades, as well as the estimated costs, if any,
which are included in the bid price. Respondent will be solely responsible for all
transmission analysis associated with the initial bid submittals.
Respondent is advised that Alternative III proposals that depend on transfers of energy
across the transmission constraints for delivery to the Boise, Idaho area will have an
extremely heavy burden to demonstrate to IPC's satisfaction that sufficient transmission
capacity can be made available in time to meet the April 1 , 2007 provisional acceptance
deadline.
Alternative III proposals must include a description of all environmental assessments and
permitting activities that have been completed to insure the necessary electric
transmission interconnection and network upgrades can be completed by the April 1
2007 provisional acceptance deadline.
For those proposals that are selected for short-list evaluation, IPC's Delivery Business
Unit may perform appropriate transmission studies for IPC to analyze the integration of
the resources proposed. Respondent must include transmission interconnection study
costs in its proposal, and break them out separately from other bid prices.
The proposal that is ultimately selected must follow the Generator Interconnection
Process as outlined in this section of this RFP.
New generation proposals must meet all Western Electricity Coordinating Council
Reliability Management System requirements. All associated costs are the responsibility
of the Respondent.
Alternative III proposals must include the information that is necessary to understand and
assess the transmission delivery path or paths and the impacts on the Idaho Power
Company system from Respondent's proposed generation facility.
IDAHO POWER
An IDACORP Company
--------
Idaho Power Company:
Peaking Resource RFP 20051
Page 27 of 36 !
Final March 30, 2005
Resource Information Requirements
1. Alternative III proposals must describe the specific delivery point on the Idaho
Power Company Transmission System where the each proposed generation
resource is to deliver its output.
2. Alternative III proposals must include a simplified one-line diagram of the
proposed interconnection and network upgrades and associated substation
configurations. Sufficient information (i., mileages, voltage of equipment
conductor size, etc.) must be included to assess adequate system performance.
3. Proposals must meet all Western Electricity Coordinating Council Reliability
Management System requirements.
4. The proposed resources must have synchronous generators with automatic voltage
control, at least a 95 percent power factor capability, and a power system
stabilizer.
Transmission and Generation Interconnection Requirements
Idaho Power will use the following information, when evaluating transmission impacts of
new generation additions proposed by respondents to Requests For Proposals issued by
Idaho Power.
Two types of Transmission Service are necessary to incorporate new generation on the
Idaho Power Company transmission system. Both services are described in, and available
under, Idaho power Company s Open Access Transmission Tariff (OATT).
1. The first is the generation interconnection, which is the physical connection
necessary to attach the new generation to the transmission network which is
offered in two products; Energy Resource Integration Service (ERIS) and
Network Resource Integration Service (NRIS) depending upon the level
service required. Since Idaho Power is seeking generation capacity to be
considered for inclusion as a Network Resource, NRIS would be the desired
interconnection product.
2. Network or Point-to-Point transmission refer to the second type of transmission
service, which are necessary to move the additional generation over the
transmission network from the generator to the designed load. Facility additions
necessary to provide Network or Point-to-Point transmission service are generally
referred to as network upgrades.
Proposal evaluation will consider the total transmission cost including both generation
interconnections and network upgrades. All Alternative III proposals will be required to
demonstrate that all generation interconnections and network transmission upgrades meet
the following criteria:
IDAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page 28 of
Final March 30, 2005
With full production, loss of one network transmission element or circuit must not cause
a steady state overload of any remaining transmission network element. Transmission
integration designs that enhance reliability will be viewed favorably.
Electrical Transmission Pricing Information
Proposals should incorporate the following assumptions:
1. The generation resource will be directly connected to the Idaho Power Company
transmission system sited within Idaho Power Company Primary Retail Service
territory reasonably close to Idaho Power Company s 230 kV transmission
systems.
2. Transmission is built to the Project from the main grid system to interconnect to
the generator.
-+.
10 ,
.:.:..:. ~(!)
To_
::2:
;:.-
SERRA I'AI:IfIC POW!
\'::::-:---..----..:""""""'".-.-.--.-.--.--.-_.-.-,-,-,-,""""""'"
""'-'ICORP
A H
_M- __nom
3. Total transmission cost estimates by zones for both the generation interconnection
and network transmission upgrades are listed below.
Cost Zone No.1: Boise-Caldwell area $3 to $10 Million
Cost Zone No.2: Ontario and Greater Boise Area $15 to $25 Million
DAHO POWE
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page 29 of
Final March 30, 2005
Cost Zone No.3: Between Boise and Midpoint $20 to $40 Million
Cost Zone No.4: East of Midpoint $30 to $60 Million
4. Idaho Power Company assumes no liability for over or under estimating project
integration costs. Total transmission estimates listed below are for a 170 MW
Project. Larger or smaller projects could incur significantly different costs.
IDAHO POWER
An IDACORP Company
Idaho Power Company:
Peaking Resource RFP 2005
Page 30 of 36 I
Fina/ March 30, 2005
About Idaho Power Company
Idaho Power was incorporated in 1916. Idaho Power is involved in the generation, purchase
transmission, distribution, and sale of electric energy in a 24 000 square mile area in southern
Idaho and eastern Oregon with an estimated population of nearly 895 000. Idaho Power holds
franchises in 71 cities in Idaho and 9 cities in eastern Oregon and holds certificates from the
respective public utility regulatory authorities to serve all or a portion of 24 counties in Idaho
and 3 counties in eastern Oregon. As of Dec. 31 , 2004, Idaho Power supplies electric energy
to over 440 000 customers and has approximately 1 800 full-time employees.
Idaho Power owns and operates 17 hydroelectric plants; shares ownership in three coal-fired
generating plants, owns and operates one combustion turbine plant, and has an additional
combustion turbine plant under construction.
Idaho Power Company has extensive experience with renewable hydroelectric resources.
Idaho Power relies heavily on hydroelectric power for its generating needs and is one of the
nation s few investor-owned utilities with a predominantly hydroelectric generating base.
Idaho Power customers continue to benefit from some of the lowest electric rates in the US.
due to efficient operation ofIdaho Power Company s generation and distribution assets.
Idaho Power Company
Peaking Resource RFP 2005
Page 31 of36
IDAHO POWER
An IDACORP Company
Final March 30, 2005
This page left blank intentionally.
1DAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page 32 of 36 i
Final March 30, 2005
10.Turnkey Pricing Schedule
Table 3
Item No.Description Price US$
Permitting
All contractor permits for project construction
Engineenng
All engineering and detailed design as required for the project
Site Procurement (Alternative III only)
Site Work
All site preparation, drainage, roads, paving, etc.
Estimated Electrical Connection to the Electrical Grid (Alternative III only)
Estimated Gas Supply for project (Alternative III only)
Major Generating Component Procurement
Electrical Balance of Plant
Mechanical Balance of Plant
Natural Gas Compression (if any)
Instrumentation and Control
Start up and Testing
Spare Parts
Soft Costs
Insurance
Sales Tax
Performance bond
Training
Other costs
Total All Items
Idaho Power Company.
Peaking Resource RFP 2005
Page 33 of 36 ,
IDAHO POWER
An IDACORP Company
Final March 30, 2005
This page left blank intentionally.
IDAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 2005
Page 34 of 36 i
Final March 30, 2005
11.Notice of Intent to Bid Form (NOI)
Idaho Power Company
Peaking Resource RFP 2005-Notice ofIntent to Bid
Company Name
Address
City State Zip
Company Representative Name
Signature
Phone Number Fax Number Email
Identify Alternative (I, II, or III)
Location Equipment Manufacturer and Model (s)
Nameplate Capacity Number of Units Heat Rate (LHV)
(Per unit)
Proposed In-Service Date
Please indicate which information packet is desired (Evander Andrews Power Complex
or Bennett Mountain Power Complex).
Please submit the NO1 to the Idaho Power Company RFP Contact by confirmed e-mail
confirmed facsimile, Certified Mail, Return Receipt Requested, or overnight courier by
4:00 PM Mountain Time, May 5, 2005. It is the responsibility of the Respondent to
insure and verify receipt of the NOI by the Idaho Power Company Contact. Voice
telephone notices will not be acknowledged. Proposals received from Respondents who
have not made a timely submission of an NOI will be returned unopened.
1DAHO POWER
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 20051
Page 35 of 361
Final March 30, 2005
This page left blank intentionally.
DAHO POWE
An IDACORP Company
Idaho Power Company
Peaking Resource RFP 20051
Page 36 of 36
Page 1 of
Steve Bradbury
From: Steve Bradbury
Sent: Tuesday, June 27, 2006 4:14 PMTo: James Jewett Gimj(Q;/jljenterprisesinc.com)
Subject: JLJ Enterprises
Jim
Here is a director s consent appointing Steve Snead as VP and authorizing him to sign documents for the
corporation. Let me know if you have questions.
Stephen A. Bradbury
Williams Bradbury P. C.
1015 W. Hays
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
6/27/2006
CONSENT OF DIRECTORS IN LIEU OF SPECIAL MEETING OF
JLJ ENTERPRISES, INC.
The undersigned, being the sole director of JLJ Enterprises, Inc., an Idaho
corporation, does hereby consent to, adopt and approve in writing the following corporate
actions without a meeting, in accordance with the provisions of the Idaho Business
Corporation Act:
Be it resolved that the Board of Directors do hereby appoint Steve Snead to the
position of Vice President of the corporation, to have such powers, duties and
authority as set forth in the company s Bylaws, including, in the absence of the
President, the authority to execute on behalf of the corporation any contracts
loan documents (including but not limited to loan agreements, notes, security
instruments and related documentation) and any and all instruments and
documents necessary to close the purchase or sale of any real property, including
but not limited closing statements, escrow instructions, deeds and similar such
instruments.
This authorization may be revoked at any time by action of the Board of
Directors.
Dated this day of June 2006.
James L. Jewett, Director
Page
6/27/2006
Idaho Power Transmission Assumptions for
Network Resource Additions
Idaho Power will use the following information, when evaluating transmission impacts of
new Network Resource additions proposed by respondents to Requests For Proposals
issued by Idaho Power:
Transmission and Generation Interconnection Requirements
Two types of Transmission Service are necessary to incorporate new generation on the
Idaho Power Company transmission system. Both services are described in, and
available under, Idaho power Company s Open Access Transmission Tariff (OA TT).
The first is the generation interconnection, which is the physical connection
necessary to attach the new generation to the transmission network which is
offered in two products; Energy Resource Integration Service (ERrS) and
Network Resource Integration Service (NRIS) depending upon the level of
service required. Since Idaho Power is seeking generation capacity to be
considered for inclusion as a Network Resource, NRIS would be the desired
interconnection product.
Network or Point-to-Point transmission refer to the second type of transmission
service, which are necessary to move the additional generation over the
transmission network from the generator to the designated load. Facility additions
necessary to provide Network or Point-to-Point transmission service are generally
referred to as network upgrades.
Proposal evaluation will consider the total transmission cost including both generation
interconnections and network upgrades. Respondent will be required to demonstrate that
all generation interconnections and network transmission upgrades meet the following
criteria:
With full production, loss of one network transmission element or circuit must not
cause a steady state overload of any remaining transmission network element.
Transmission integration designs that enhance reliability will be viewed favorably.
Area Reserve Requirements
As a result of Idaho Power Company s planning and reserve requirements, any generation
proposals that could result in any single contingency resulting in the loss of more than
330 MW of generation resource will have to identify the location of the replacement
generation reserves. In some instances, the location of those reserves may be impacted
by ATC availability.
Ancillary Services
For generation that is acquired as a Network Resource, Idaho Power Company will likely
supply the following ancillary services for that capacity and energy it acquires:
1. System control: The control-area operator functions that schedule generation
and transactions before the fact and that control some generation in real-time to
maintain generation/load balance (includes generation/load balance, transmission
security, and emergency preparedness)
2. Reactive supply and voltage control from generation: The injection or
absorption of reactive power from generators to maintain transmission-system
voltages within required ranges
3. Regulation: The use of generation equipped with governors and automatic-
generation control to maintain minute-to-minute generation/load balance within
the control area to meet NERC control-performance standards
4. Operating reserve (spinning): The provision of generating capacity (usually
with governors and automatic-generation control) that is synchronized to the grid
and is unloaded that can respond immediately to correct for generation/load
imbalances caused by generation and transmission outages and that is fully
available within 10 minutes
5. Operating reserve (supplemental): The provision of generating capacity and
curtailab1e load used to correct for generation/load imbalances caused by
generation and transmission outages and that is fully available within 10 minutes
6. Energy imbalance: The use of generation to correct for hourly mismatches
between actual and scheduled transactions between suppliers and their customers
Electrical Transmission Pricing Information
Network Resource proposals should incorporate the following assumptions:
1. The Network Resource will be directly connected to the Idaho Power Company
transmission system sited within Idaho Power Company Primary Retail Service
territory reasonably close to Idaho Power Company s 230 kV transmission system.
2. Transmission is built to the Project from the main grid system to interconnect to the
generator.
3. Idaho Power Company will retain ownership of the high side facilities at the point of
interconnection with the generator.
4. Total transmission cost estimates by zones for both the generation interconnection and
network transmission upgrades are listed below.
Cost Zone No.Boise-Caldwell area $3 to $10 Million
Cost Zone No.Ontario and Greater Boise Area $15 to $25 Million
Cost Zone No.Between Boise and Midpoint $20 to $40 Million
Cost Zone No.East of Midpoint $30 to $60 Million
Idaho Power Company assumes no liability for over or under estimating project
integration costs. Total transmission estimates listed below are for a 170 MW Project.
Larger or smaller projects could incur significantly different costs.
AVOS!A
J!Q!PJ
SIERRA """'" POYIER
""'.....(!);.-
JIM BRIDGIR
PACFICORP
a'A (HotSplros)
MONTANA POYIER COM'I\NY
("""C""do)
ANTB.OPE
T"SUMMERLAJ(E
PACFrnRP v.m
SYSTEMMAP
_M-
",.",..",'"
Idaho Power, TVEP Community Advisory Committee
Treasure Valley Electric Plan Community Advisory Committee
Power Plant Briefing Paper
What is a Power Plant and why are they necessary?
A power plant is used to generate electrical power. It uses some form of energy, such as
falling water, coal or natural gas, to turn a generator that makes electricity.
Some power plants do not use a generator to make electricity. For example, a solar cell
can directly convert the energy from the sun into electrical energy without needing to turn
a generator. However, at the present time these power plants are comparatively small
and expensive.
What are the different types of power plants and how do they operate?
Hydro - A hydroelectric plant converts falling or flowing water into electrical
energy. The falling water is used to turn a generator, thus making electricity.
Coal - A coal-fired power plant uses the energy released from burning coal to
make steam that is used to turn an electrical generator
Natural Gas -In general , there are three types of natural gas fired power plants:
1. Natural Gas/Steam - A natural gas/steam power plant uses the energy
released from burning natural gas to make steam that is used to turn an
electrical generator. Very similar to a coal-fired power plant.
2. Simple Cycle Combustion Turbine - A simple cycle combustion turbine
power plant is similar technology to a jet engine used on an airliner. On an
airliner, the turbine engine is used to create thrust to push the airliner
through the sky. For electrical generation, that thrust is used to rotate an
electrical generator.
3. Combined Cycle Combustion Turbine - A combined cycle combustion
turbine power plant takes the excess heat from a simple cycle combustion
turbine power plant and uses it to create steam that then turns another
electrical generator. This type of power plant can be very efficient.
Wind - A wind turbine uses the energy of wind blowing across its blades to turn a
generator
Nuclear - A nuclear power plant operates similarly to a coal or natural gas-fired
power plant except that it uses the heat generated by nuclear fission to make
steam which is used to turn a turbine generator
Diesel - A diesel power plant uses an internal combustion diesel fueled engine to
turn an electrical generator
Geothermal - A geothermal power plant uses the energy contained in steam or
hot water heated by the earth to turn a steam turbine generator
Page 1 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
How many and what types of power plants does Idaho Power own and operate?
Idaho Power owns and operates hydroelectric, simple cycle combustion turbine and
diesel generating plants. It has interests in three coal-fired power plants operated by
other owners.
The breakdown is as follows:
17 hydroelectric plants with a total capacity of over 1 988 000 kW. Not all the
plants can operate at their maximum capacity at the same time. There are many
factors that control how much a hydroelectric plant can generate at one time. The
level of the water in the reservoir and the level of water in downstream reservoirs
can limit the output.
Three coal-fired plants with a total capacity of over 1 022 000 kW.
. Two combustion turbine plants with a total capacity of 260 000 kW. These two
plants are used for peaking purposes, meaning they primarily generate during the
summer when system loads are highest and the cost of power on the market is
also high.
. One diesel plant with a total capacity of 5 500 kW. This plant is used only for
emergency purposes in the Salmon area. Idaho Power did operate these diesels
to sell into the market during the summer of 2001 when the market in the entire
western United States made them profitable. This was a unique situation. Normally
the cost of power from these diesel engines is too high to make them economical
for use on the Idaho Power system or to sell into the market.
Does the amount of power these plants generate meet the electrical needs of the
Treasure Valley? If not, how are the additional needs met?
If Idaho Power were to assign all the output from these plants to the Treasure Valley,
they would meet the valley s electrical needs. However, Idaho Power's generation is built
and paid for by rates paid by all Idaho Power customers and the output belongs to the
entire system.
During peak periods (summer afternoons and cold winter mornings), this generation is
generally not adequate to serve all of Idaho Power's needs. At these times, power must
be purchased on the market and shipped in via high voltage transmission lines connected
to surrounding utilities.
Idaho Power constantly monitors market prices and transmission availability in
determining whether it is better to purchase electricity on the market or to build more
generation.
Page 2 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
How will Idaho Power continue to meet the needs of the Treasure Valley?
As the valley continues to grow, the need for new generation will also grow, given that
Idaho Power s access to the market is constrained by transmission adequacy. Idaho
Power already uses most of its transmission capacity during peak periods so it either has
to build more transmission or more generation.
CurrenUy, it is generally more cost effective to build new generation than to build more
transmission to interconnect with our neighbors. Idaho Power's Integrated Resource Plan
(IRP) determines the number of new plants needed. The IRP evaluates load growth vs.
supply adequacy on a sliding 10-year basis.
What are the advantages and disadvantages of having a power plant close to end
users?
Transmission lines incur energy losses when transmitting power. Idaho Power loses 11 to
12 percent of the energy generated at the Hells Canyon complex before it ever gets to
your home. For every 100 MW generated at Hells Canyon, only 88 MW gets down to the
end users.
By building the power plant closer to the load, these line losses are greatly reduced.
An argument can be made that the burden of hosting a power plant should be placed on
those using the power, not those living in under-populated areas.
Which kind of power plant is the easiest to live with in an urban community?
It depends on individual perspectives. Those who value clean air would be against coal
generation located in their community. Those who value natural scenery would be
against a large wind farm located on a hillside. Those who value natural river flows would
be against large hydro facilities on rivers.
If generation is located in the Treasure Valley, how many transmission lines can
Idaho Power avoid building?
500 kV
The 500 kV lines are used to deliver energy from generators to load, so if the generators
are co-located with the load, the lines are unnecessary.
Locating generation within the Treasure Valley can reduce the number of 500 kV lines
coming to the valley. However, it would take significant generation located in the
Treasure Valley to completely do away with the need for an individual 500 kV
transmission line.
345
Like the 500 kV lines, locating generation within the Treasure Valley can reduce the
Page 3 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
number of 345 kV lines, if those lines are used to deliver energy from generators to load.
If the lines are used as part of an intra-valley transmission network, locally sited
generation would do very little to reduce the need for the transmission.
230 kV
Locally sited generation will not reduce the number of 230 kV transmission lines in the
Treasure Valley. 230 kV transmission will likely be part of an intra-valley transmission
network that will be used to delivery energy between hub substations.
This transmission will be needed whether the valley has locally sited generation or not.
How would Idaho Power s system reliability be influenced by generation in the
Treasure Valley?
Generally, reliability would be improved if generation were located in the Treasure Valley.
Some of the power outages experienced by customers in the Treasure Valley are caused
by electrical faults on the long, high-voltage transmission lines that are used to deliver
energy from distant generation to the Treasure Valley.
If you reduce the length of these lines, you reduce the likelihood of damage occurring to
the lines.
What type(s) of generation are possible in the Treasure Valley?
Natural gas, coal and nuclear power plants are all "possible" in the Treasure Valley.
However, the only type of power plant that could likely find public and regulatory
acceptance would be a natural gas-fired power plant.
A combined-cycle combustion turbine power plant could be sited for base-load needs and
a simple cycle combustion turbine power plant could be sited for peaking needs.
What are the advantages of generation in the Treasure Valley?
Efficiency - Line losses are fewer with shorter transmission
Save money - Transmission costs are reduced if generation is large enough
Economic advantage - Tax base, employment
Reliability - If enough generation is located in the Treasure Valley, reliability would
improve
What are the disadvantages of generation in the Treasure Valley?
Visual impact
Environmental fears - air and water quality, noise
Siting difficulty - lack of available land
Page 4 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
Are power plants safe? What are the environmental advantages and disadvantages
of each?
There are dangers inherent with anything that generates electricity, namely electrical
shock. The following are other possible safety concerns:
Hydro - The primary danger from a hydroelectric plant is the varying flows that exit
the turbines. A boater or fisherman downstream from a dam must be aware that
outputs from hydro-turbines can vary depending on electrical load and water levels
will vary in response.
Hydroelectric power is a renewable resource. While it has a high capital or initial
cost, the cost of the energy from the water is very low. Large hydro projects are
seen by many environmentalists as endangering the lives of the fish that rely on
rivers to spawn in. Others see the hydro projects as degrading to riverbanks
because they change the natural flow of the river.
Coal - The main negative aspect of a coal-fired power plant is the air pollution it
creates when burning the coal. These plants emit carbon monoxide, carbon
dioxide, sulfur oxides and nitrogen oxides. In addition, many coal plants emit
varying levels of mercury. Idaho Power is regulated for sulfur oxides.
Diesel - Carbon monoxide, sulfur dioxide, nitrogen oxide and particulates are the
most recognized form of pollution from diesel engines.
. Gas - Natural gas fired power plants emit carbon dioxide and nitrogen oxides.
Pollution control equipment acts to greatly limit the amounts of these pollutants
emitted to the air.
Wind - There are no known dangers to people created by wind turbine generation
facilities. Some complain about visual and audible nuisance.
The most recognized environmental disadvantage to wind power is its detrimental
effect on birds , particularly raptors.
Nuclear - The most recognized direct danger from a nuclear power plant is
nuclear meltdown. If a nuclear power plant loses the cooling necessary to control
the nuclear reaction, the fuel can become hot enough to melt through its
containment and can create a large steam explosion with resulting nuclear
contamination. Nuclear power plants are designed with this in mind and have
multiple safeguards against it. Another danger is radiation from the nuclear waste
generated by the plant.
Are there other options?
Yes, solar power and fuel cells.
Solar - There are two methods for generating electricity from the sun:
1. Solar thermal - This form of solar power uses large solar concentrators (mirrors)
to focus the sun s energy on a liquid medium such as water to create steam to turn
Page 5 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
a turbine generator
2. Photovoltaic - This form of solar power direcUy converts the sun s energy to
electricity without the need for making steam to turn a turbine
Fuel Cells - A fuel cell is an electro-chemical device that converts hydrogen directly into
electricity without the need for making steam to turn a turbine. There are many different
types of fuel cells but in the end they all work similar to a battery that is continually
recharged.
Because of the extreme costs associated with both solar and fuel cells, Idaho Power
doesn t use either of these types of resources for generating electricity at present. Idaho
Power continuously monitors various technologies to determine if they make economic
sense to include in our generation mix.
What is the cost difference to build and maintain power plants?
Hydro - Major hydro facilities are very expensive to build. However, they have the
advantage of low operating costs because their fuel is essentially free. Significant
additional expenses are attached to a hydro facility due to the requirements to
perform environmental remediation and provide recreational opportunities as part
of our licensing agreements with federal and state governments.
Coal - Like hydro, a coal plant is expensive to build and their main advantage is in
the cost of the fuel. Coal is a low-cost alternative over the long run.
. Gas - Natural gas fired combustion turbine power plants cost the least to build.
Their major disadvantage is the cost of the fuel. Natural gas prices are high and
extremely volatile so this type of power plant is used only for peaking on the Idaho
Power system.
Wind - Wind turbine power plants are currently expensive to build , though their
costs are coming down. Their operating costs are low because their energy is free.
Nuclear - Nuclear power plants are by far the most expensive to build. Their
advantage is the cost of fuel is low, so long-term costs can be lower than most.
There are significant additional expenses associated with nuclear power plants for
waste remediation.
Which lasts longest before needing replacement?
Hydro power plants tend to last longer than any other type of power plant due to the
extreme engineering that must go into damming a river. During the life of a hydro power
plant, the generators will be upgraded and even replaced once or twice.
Wind turbines seem to last the shortest amount of time, though that is changing as
technology improves.
Page 6 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
What is Idaho Power s portfolio of long-term energy plans according to the
Integrated Resource Plan?
The portfolio selected in the 2004 Integrated Resource Plan will increase Idaho Power's
power supply capacity by almost 940 MW over the next 10 years:
. 76 MW Demand Response Programs (DSM)
. 48 MW Energy Efficiency Programs (DSM)
350 MW Wind-Powered Generation
100 MW Geothermal-Powered Generation
. 48 MW Combined Heat and Power at Customer Facilities
. 88 MW Simple-Cycle Natural Gas Fired Combustion Turbines
. 62 MW Combustion Turbine, Distributed Generation or Market Purchases
500 MW Coal-Fired Generation
Is Idaho Power considering owning a nuclear power plant?
No. Idaho Power s Integrated Resource Plan does not call for building a nuclear power
plant at this time. Every two years, this is reconsidered.
Does Idaho Power plan to build new coal or gas plants in the near future?
Yes. Idaho Power s 2004 Integrated Resource Plan calls for the construction of a new
coal-fired power plant and additional combustion turbine peakers within the next 10
years.
What is Idaho Power's long tenD plans to produce "green" power? Is hydro
green
In Idaho Power's 2004 Integrated Resource Plan , the chosen generation portfolio to be
built in the next 10 years includes quite a bit of renewable energy:
350 MW of wind
100 MW of geothermal
. 48 MW of combined heat and power at customer facilities
Idaho Power believes that its hydro projects are all renewable energy sources and are
thus "green" power. Idaho Power undertakes many activities to mitigate any
environmental damage these projects might cause.
How much power does Idaho Power purchase from outside sources?
The quantity of power Idaho Power purchases on the market depends on the season and
climate. In 2004, the sixth consecutive year of drought, Idaho Power purchased 18
Page 7 of 8
Power Plant Briefing Paper
Idaho Power, TVEP Community Advisory Committee
percent of its energy needs on the market.
During non-drought years, Idaho Power's hydroelectric system can produce more energy
and thus market purchases will be lower.
What is Idaho Power s agreement with Fossil Gulch to purchase its power?
What is the typical MW output of Fossil Gulch?
Fossil Gulch is designated as a Qualified Facility under the Public Utility Regulatory
Policy Act (PURPA) and Idaho Power is required to purchase its output at rates
determined by the Idaho Public Utilities Commission.
If Fossil Gulch is generating power and transmission is available (not out of commission
due to repair), Idaho Power must take its output.
Fossil Gulch has a maximum output of a little over 10 MW. Depending on wind speed
this can vary all the way to zero. At this point, not enough operating data is available to
determine what an average output would be.
Why didn t Idaho Power develop the Lucky Peak power plant?
At the time Lucky Peak was developed , Idaho Power had a surplus energy supply and
did not need the capacity. This project was developed by local irrigation districts and is
operated by Seattle City Light. Idaho Power often purchases this power during the
summer.
Does Idaho Power use the power generated at Anderson Ranch dam?
Anderson Ranch dam belongs to the federal government. Bonneville Power
Administration customers in southern Idaho generally use the power produced.
If this power were put on the market, Idaho Power would purchase it if the price were low
enough to either offset Idaho Power's generating costs or if it were cheaper than market
prices during times Idaho Power was purchasing from the market.
Page 8 of 8
Power Plant Briefing Paper
MOUNTAIN VIEW POWER'ANSWERS
STAFF'S FIRST PRODUCTION REQUESTS
Attachment to Response
Request No.
;::; 1:.
Bruce D. Chat1erton
Director
Boise City Hall
150 N, Capitol Bouievard
Mailing Address
P 0, Box 500
Boise, Idoho 83701-0500
Phone
208/384-3830
~ax
208/384-3814
TDD/T7Y
800/377 -3529
Web
www_cityofboise.org/pds
Mayor
David H, Bieler
City Council
PrcsidenJ
-- '-Iaryanne Jordan
'neil ProTem
me Clegg
:non L, Bisterfeldt
David Eberle
Alan W. Shealy
Jim Tibbs
cqual Opporlunity Empleyer
o;;, Printed cn recyciod poper
Planning & Development Services
'February 1 , 2006
;Mountain View Power
iRon Williams, Vice President
;1015 W. Hays Street
IBoise, ID. 83702
jRE:CUPOS-OO126 / 9605 S. Eisenman Road - REVISED CONDITIONS OF
APPROV AL
~Dear Mr. Williams:
;In reviewing the minutes of the public hearing for CUPO5-126 staff would like to clarifyisome conditions. The revised conditions are underscored as follows:
Ifthis conditional use pennit is not acted
11fJOFl within sixty (60) months, it 'Nill beoomc nulland 'laid v/ithout furtheF notification E:()ffi this department
IConditions of Approval
~Site Specific:
5. The applicant shall submit an air permit application with the Idaho Department ofEnvironmental Quality for proposed power Plant #2 that uses best available pollutioncontrol technology which is existing and commercially available and meets or exceeds therequirements of Plant #1 for the plant configuration and equipment selected by theapplicant.
18. The applicant has proposed phasing 0 f the project. All required infrastructure shallbe constructed prior to the development of each phase. Both phases of this development!authorized by this Conditional Use approval must be completed within 5 years (60 months):!Tom the date ofthe Commission s approval or the applicant will be required to submit anew conditional use application. Prior to the expiration of this conditional use, theCommission may, upon written request by the holder, grant a one-year time extension. A; maximum of three (3) extensions may be granted.
Al1 other conditions of this approval shall apply as stated in the original letter.
If you have any questions, please call me at 384-7857.
CUP05-00126/Mountain View Power, Inc.
Page 2
Sincerely,
~~.
Car 1 Miller \
Planner II
CM:vvvCC: Richard Kaylor/3877 Gemini Circle/Boise/83709
Dan Buerstetta/5473 S. Broadwing Way/Boise/83716
Brett Crow/1717 E. Picabo Ct/Boise/83716
Kathleen Fahey/28G8 S. Colorado/Boise/83706
Kelly MitchelV5152 S. Willamette Pl./Boise/83716
Dave Ransom/3225 NorfolklBoise/83706
Cheryl Robinson/2979 Oak Park Pl.IBoise/83703
John Weber/9535 W. Cory Ln./Boise/83704
Tish Hetrick/2155 Blue Sage Ln./Boise/83716
Bruce D. CheHerton
DirOC1'or
Boise City Hel!
150 N. Copiiol Boulevo,d
Moiling Address
P 0 80x 500
Bois€:, Idoho 8370i -0500
Phone
208/384-3830
Fax
208/38~-3814
TDD!TTY
800/377-3529
Web
www,c;t-fofboise.org!pds
Meyor
David H, Bierer
City Council
President
ivlaryonne jordan
:il Proiem
~-- de Clegg
Vernon L. Bisterfeidt
David Eberie
Alan W- ShealY
M- Jerome Mapp
, ": ," ''-"
An Eoual Ooeooun;", Emolove,
Planning & Development Services
January 10 2006
Mountain View Power
Ron Williams, Vice President
1015 W, Hays Street
Boise, ill- 83702
RE: CUP05-00126 19605 S. Eisenman Road
Dear Mr. Williams::
This letter is to inform you of the action taken by the Boise City Planning & ZoningCommission on your request to construct two natural gas power plans in two phases on
property located at 9605 S. Eisenman Road in an M-2D (General Industrial with DesignReview) zone.
The Commission, at their hearing January 9, 2006, approved your request based on
compliance with the attached Conclusions of Law, Findings of Fact and Conditions ofApprovaL
May we also take tbis opportunity to inform you of the following:
This approval will not take effect until after the appeal period has lapsed.
The decision of the Boise City Planning Zoning Commission may be
appealed to the Boise City Council within ten (10) calendar days from theissuance of this decision. The appeal must be written, accompanied by theappropriate fee and submitted to the Boise City Planning & DevelopmentServices Department prior to the deadline set forth herein- Appeal applicationforms are available in the Planning Department or on-line under Applications at:
Vv~"'iwcitvofDoiseondpdsl or http:6477,8.21/pds/apps,asp
..,
.J-All appeals of this permit must be filed by 5:00 p.m. on Monday, January 20
2006.
If-tfli-s-c-oo.dit-ienal-l:lse-F)(~~Fffii-t-is-41Gt--aGted-YpGn--w~thi~teen (18) months, itwiH-beee-me -n li I I -- an. d -ve-i cl-wit-he ut--furtfi er -- oot-i-fi 0at:i en.. fr om---this---departmem-
Sincerely,
Carl Miller
CUPO5-00 I 26/Mountain View Power, Inc,
Page 2
Planner II
CM:vvv
CUP05-00126/Mountain View Power, Inc.
Page 3
Reasons for Decision:
Mountain View Power, Inc, (MVP) requests approval of a Conditional Use Permit to construct 2 natural gas
power plants at 9605 S. Eisenman Road. The site is located in the East Gateway Industrial Park and in an2D (General Industrial with Design Review) zone- Plant One will generate 80-250 megawatts ofelectricity and is designed to meet the requirements of Idaho Power s Request for Proposal (RFP) Electricity generated fTom this plant will provide for peak summer and winter power needs- Plant Two willgenerate 50 to 100 megawatts of electricity- This electrical generation will be a secondary or backup power
source for wind power project being developed across southern Idaho, The second use of this plant will befor electricity for refTigeration for future warehouses within the East Gateway Industrial Park. The applicanthas proposed an emission stack less than 70' in height to comply with the height limitations for public
services (B.CC 11-06-06.13),
On March 30, 2005, Idaho Power issued an RFP for peaking resource electric generation project. Theapplicant submitted a Conditional Use application for approval of 2 gas-fired power plants at 9605 SouthEisenman Road. These plants, if accepted by Idaho Power, would provide for public electrical generation.
On November 14, 2005 action on the Conditional Use application was deferred by the City of BoisePlanning and Zoning Commission to January 9 2006 to allow for an additional comment period from public
agencies. Greystone Environmental Consultants, Inc_, on behalf ofMVP, submit a preliminary atmosphericdispersion model which has been reviewed by DEQ. The air quality analyses submitted by MVP onlyassessed impacts from the plant one and protocol was submitted prior to MVP's proposed change to lowerNOx emitting technology. The air modeling study for the Gateway Power Plant (GPP) still serves as anindicator for impacts on air quality.
Primary emissions from natural gas power plants include nitrogen oxide (NOx) and carbon monoxide (CO).
Secondary emissions include sulfur dioxide (SOz), organic compounds (VOC) and particulate matter(PM1O). Emissions of NOx, SOl, and VOCs can react with other chemicals in the atmosphere to producefine aerosol particulate and ozone. The applicant has proposed to include the installation of additionalpollution control equipment in their proposal and to work with the Idaho Department of Environmental
Quality (DEQ) to incorporate emissions standards that are more stringent than required into the DEQ airpermit for their facility, As a result, the MVP plant will reduce its NOx pollution by 50% as compared to the
emissions from the Bennett Mountain facility currently owned and operated by Idaho Power in Mountain
Home- A condition of approval solidifies .this intent by limiting the continuous emission rate for Plant One
to 10 parts per million nitrogen oxides and 10 parts per million carbon monoxide as measured by acontinuous emissions monitoring system (CEMS)- Plant Two will also use best available pollution controltechnology which is existing and commercially available for the plant configuration and equipment selected
by applicant- A Best Available Control Technology (BACT) analysis was not submitted with the air impact
analyses; therefore DEQ could not verify whether the proposed technology represents BACT. The IdahoConservation League supports the cleaner pollution control mechanisms and as a result, will no longer beopposing the request.
The DEQ report indicates that impacts of all directly emitted air pollutants (N02, CO, S02, PMlO, andPMZ.5) were well below applicable air quality standards, even when combined with backgroundconcentrations based on air monitoring data collected in the Boise area. The impact levels of CO, PMlO andS02 are even sufficiently low to be allowed in non-attainment areas (areas not meeting air quality standards
for those pollutants) by Idaho air quality regulations; however, the Treasure Valley is not a non-attainmentarea for any pollutants, Table 1 provides a summary of maximum primary impacts,
CUP05-00126/Mountain View Power, lnc,
Page 4
, Table Modeled Impacts of Directly Emitted Pollutants
Maximum
Averaging Impact Background Im pact +StandardPollutantPeriodfrom GPP Level Background (l1g/m
(Jlg/m (J-lg/m (11g/mPM1O24-hour 86,150Annual27_
PM2_24-hour 51 d 538
Annual 10_Sulfur dioxide (SO2)hour 45_300
24-hour 26.365
Annual 78.Carbon monoxide hour 1228 200 428 000(CO)hour 201 400 601 000Nitrogendioxideannual36,100(NO2)
Micrograms per cubic meter
Particulate matter with an aerodynamic particle diameter less than or equal to a nominal
10 micrometers
Particulate matter with an aerodynamic particle diameter less than or equal to a nominal
5 micrometers
Based on the maximum 98th percentile value from each of five annual data sets.
Winds in the Boise area are predominantly from the northwest and southeast (see Wind Rose Map).Predominant winds would carry the plume away from larger population centers. Although the predominantwinds may carry the plume away from the larger population centers, calm conditions during either winterinversions or summer stagnation periods could result in the plume transported in any direction. DEQ usedplume rise equations to measure a plume rise of between 1 640 feet and 1 969 feet. This causes a highdegree of thermal turbulence in the immediate area and the plume may break out of inversion layers that are
less than 1 640 feet thick. However, strong winter inversions within the Treasure Valley can periodically be
640 feet to 3 280 feet thick. DEQ is not confident that the plume from the GPP will have sufficient plume
rise to break through such a deep stable layer associated with the strongest Treasure Valley inversions,
Conditions of approval requested by DEQ will ensure that air quality and water quality will be protected-
fugitive dust control plan which incorporates best management practices (BMP) will be required for theproject. DEQ has also requested an odor management plan using appropriate B:MP' s which details how theapplicant will manage odors that may occur from the proposed operation Other requirements provide forthe protection of drinking water, surface water, and hazardous waste contamination,
This request should have very little impact on water quality- The project proposes land application of "non-contact" wastewater. During peak hours up to 30 gpm (gallons per minute) of non-domestic wastewaterwill be generated, The applicant has proposed treating wastewater in several ways to prevent deterioration
of the aquifer. The Boise City Public Works department in a memo dated October 7 , 2005 indicated that up
to 2 000 gallons per day will be accepted into the sanitary sewer, A wastewater detention pond may beestablished on site for water in excess of allowed amounts, The applicant has also proposed future plans for
CUP05-00126/MouTItain View Power, lnc,
Page 5
the piping of grey water to a pond within the Industrial park The Boise Airport has requested that a wildlifemitigation plan be submitted for review and approval before the implementation of greywarer ponds. Staffhas recommended this as a condition of approval.
Staff finds the proposed power plant compatible with other uses in the general area- The subject property islocated in an isolated location in Southeast Boise, near the Isaac s Canyon freeway interchange- Adjacentproperties and most land in this area are vacant; therefore the project should not be incompatible withexisting land uses. Both the zoning map and the Boise Comprehensive Land Use Map designate the area forIndustrial uses, Residential uses are especially sensitive to the proposed use, There are no residential zoned
properties or subdivisions within Yz miles of the subject property- The Blue Valley Mobile Home Park is
located approximately 7/:; mile to the northeast. The Blue Valley Mobile Home Park has spacing forapproximately 210 manufactured homes- However, currently the site has only about an 80% occupancyrate. The mobile home park is in Ada County and is zoned M3 (Airport Industrial), Redevelopment of the mobile home park to
industrial uses in the no-too-distant future is a distinct possibility. All properties within city boundaries within 1 mile arezoned Industrial (Limited Industrial, General Industrial, Technological-Industrial Park, or Technological-Manufacturing Park). The Columbia Village residential subdivisions are located between 2-3 milesnortheast of the site. The site is separated from Columbia Village by Interstate 84, Highway 21 , and otherindustrial developments. Staff finds this is adequate distance and buffering from the proposed plant to
mitigate any potential adverse impact.
Noise generated from the plant will be minimal. Acoustic tests indicate that the power plant will generate52 decibels (dBa) at a location 400' from power plant. A level of 52 decibels (dBa) is roughly equivalent tonoise generated by a person speaking in conversational tones. The project will therefore producecomparatively small amounts of noise to other generators of sound pollution nearby the site- Noise fromother uses in the general area will be greater than the proposed power plants. Interstate 84, the BoiseAirport, and the Union Pacific Railroad corridor are more pronounced contributors of noise pollution thanthe power plants- Noise will naturally increase as development of the East Gateway Industrial Park occurs.The applicant has proposed methods to mitigate the noise pollution. The emissions stack will implementsilencing equipment to baffle the noise generated. Also, insulation used in the emissions stack will reducethe noise pollution from the plant. Staff visits to the Bennett Mountain plant in Mountain Home, which issimilar to the proposal and was developed by the applicants, supported the claim that noise generated by theplant is negligible. Neighbors to the Bennett Mountain power plant did not indicate that noise from theplant was noticeable and were generally content with their location near the plant.
The proposed use will not place an undue burden on transportation and other public facilities in the vicinity,The Ada County Highway District (ACHD), in a report dated October 3 , 2005, indicates that the applicantwill need to provide improved access to the subject property, To comply with ACE-ID requirementsEisenman Road from Gowen Road will need to be widened to meet minimum width standards, Thedriveway from Eisenman to the power plant will also be improved to provide fire safety access,
The subject property is within the Boise Airport Influence Area "A." Development of residences andschools are discouraged in this Influence Area- However, this influence area does not discourage industrialprojects, The Boise Airport has indicated in a memo dated October 25, 2005 that the smokestacks willpenetrate FAR Part 77 imaginary surface by 33' and conflicts with runway 9/27 Part 77 surface. Allprojections will need to comply with Federal Aviation Administration (FAA) standards for height andlocation near an airport runway, The emissions stacks are proposed for less than 70' in height- There arealso similar heights for the electrical transmission lines in the area and the site is nearby to a bluff which is
CUPO5-00126/Mountain View Power, lnc,
Page 6
elevated 275' above the subject property, Proposed condition of approval #8 requires compliance with
Airport Influence Area height restrictions or receipt of a waiver from FAA height standards,
Siting ofthe natural gas power plants is constrained by the availability of public infrastructure. Specifically,
the proximity of electrical transmission, natural gas, water, and sewer lines are essential to the feasibility of
this project. Necessary public infrastructure is nearby and will be extended to the site to serve the property.
A natural gas pipeline is approximately 000' to the east. The extension of the line to the power plant willneed to take place within an acceptable easement or right-of-way, Idaho Power owns 230kv transmission
lines nearby the site. These lines will be used to transmit electricity toward Caldwell and the Boise bench,Water and sewer lines will be extended to the subject property to serve the project. The siting of power
generating plants at more remote locations could be economically unfeasible due to the related costs ofextending necessary utilities.
Staff finds the site is large enough to accommodate the proposed use, setbacks, fencing, parking, andlandscaping. All buildings and parking areas will comply with the minimum setback requirements of the
zone. Power plants do not have a specific parking requirement in the Zoning Ordinance. Day-to-dayoperations will include a handful of employees who will be sufficiently served by the proposed parkingspaces. The applicant has proposed a 6' three-barbed wire fence encircling the perimeter of the site. Thisproject is under the purview of the Design Review Committee. Staff has recommended a Condition ofApproval that landscaping, building colors and the site entrance be specifically reviewed for aestheticquality and compatibility. Compliance with these and other conditions recommended by staffwill providethat the project will not adversely affect other property of the vicinity.
A proposal for natural gas power plants at this location supports policies of the Boise City Comprehensive
Plan. Elements of the Plan that are relevant to this project include Public Facilities (Chapter 2),Environmental Quality (Chapter 3), Community Quality (Chapter 7), Land Use (Chapter 8), EconomicDevelopment (Chapter 9), and Growth Management (Chapter 10), Comprehensive Plan goals, objectivesand policies are addressed as follows:
Public Facilities
The Boise City Comprehensive Plan anticipates a projected population of 253 000 within the BoisePlanning Area by the year 2015 (Objective 7.1). Population growth in surrounding municipalities is alsosteadily increasing, Current and future population of the city and region will need to be served by adequatepublic infrastructure to protect the quality of life enjoyed in the area. Vigorous and continual growth in thearea has created the need to build new facilities. Objective 2.1 encourages projects that ensure "adequateelectrical facilities are available to meet the needs of future development." The proposal for a gas powerplant will provide electrical infrastructure to meet the Comprehensive Plan goal for an adequate supply ofelectrical energy to support existing and future land uses in the city (Goal 2.6). The inability to providesufficient power to meet electrical demands could have negative consequences to the quality of life in the
area, Inadequate power could lead to higher electrical costs and diminished economic growth. Staff findsthat this proposal will support the Public Facilities goals, objectives, and policies by providing additionalelectrical generation.
Environmental Qualitv
Air quality is an issue of health, aesthetics and economics linked with land use. Poor air quality poses aparticular health hazard for the young, elderly, or those suffering from chronic breathing diseases. It can
become an aesthetic issue when it obscures desirable views of the foothills and downtown,
i\ir quality may
CUPO5-00126/Mountain View Power, Inc.
Page 7
be an economic issue when federal money is withheld due to air pollution, Chapter 3 of the Boise City
Comprehensive Plan encourages the protection of air quality. The Boise Comprehensive Plan encourages
industrial projects that provide "installing scrubbers in smoke stacks and other means of reducing industria!emission" (Policy 3.3), The applicant has proposed low Nox burners that will reduce the emissionsgenerated by the plant.
Water quality is also vital to livability of Boise residents. Development regulations for water quality are
aimed at protecting environmental resources. An objective of the Comprehensive Plan encourages the
protection of waters at highest standards (Objective 3.1). The applicant has proposed processes for the
treatment of wastewater. Water treatment methods will be reviewed by DEQ, the City of Boise, and the
Idaho Department of Water Resources (IDWR) to ensure the integrity of the aquifer and surface waters,
Staff believes agency review and requirements for the protection of the environment will satisfy the air and
water quality objectives of the Comprehensive Plan.
Community Quality
The perceived image of a community underlies its desirability, economic viability, and quality of life. The
Community Quality chapter of the Boise Comprehensive Plan seeks the protection and enhancement of theCitys visual qualities. The project is located within a Design Review overlay district. Development
of the
project will be reviewed by the Design Review Committee to insure the general appearance
of buildings andsite improvements. The project is located far from residential and commercial developments. The site is
approximately % mile west of the east entrance of Interstate 84 to the Treasure Valley. The appearance
the power plant is an important consideration as it will be visible from the Interstate. Future development ofthe East Gateway Industrial Park may obscure the sight of the power plants, but this may not occur in theshort term. Staff has recommended conditions that the Design Review Committee will evaluate the
architectural design treatment of the buildings, parking, landscaping, and outdoor storage areas. Approval
of Design Review relative to the visual characteristics of the site will provide a compatible and attractiveproject.
Land Use
The Boise Comprehensive Plan encourages heavy industries and industrial uses that generate unusual noises
and/or odors to be located within the industrial districts (policy 8.1). The grouping of Industrial usesfacilitates manufacturing clusters, supports the economic base, and protects neighborhoods. The noises and
emissions from the plant will be mitigated due to the location to the east
of the Boise Airport and on the
fringe of the city. Residential developments are prohibited in Industrial zones, therefore incompatibleresidential developments will not encroach upon the subject area.
The site is located within the Airport Planning Area, This area is unique as it is the only Planning Area
within the city without residentially-designated areas. This exclusion is due to the inherent incompatibilities
between heavy industrial and residential uses, The omission of residentially designated areas in thisPlanning Area indicates there will not be an encroachment of residences near the proposed site, The
Industrial area to the east of the airport has been established to protect and promote industrial usespreferably heavier and noisier manufacturing businesses that may not be appropriate in other industrial areas
of the city (Policy 8,1 and Policy 8.3). Industrial and manufacturing uses in this area also benefit
from convenient access to the shipping routes, such as the Boise Airport, rail lines, and Interstate 84,Specific to the Airport Planning Area, the project complies with policy that industrial area east of the airport
should support manufacturing uses (Policy 8.14,3) policy which requires development within the AirportInfluence A..rea shall be required to adhere to the noise standards (Policy 8,14.8). Staff finds the proposed
CUP05-00126!M:ountain View Power, Inc.
Page 8
approval of a power plant meets the objectives of the Boise Airport Planning lv-ea and general land useplans of the Boise Comprehensive Plan.
Economic Development
Providing infrastructure adequate to support new development is essential for attracting industrial-sector
jobs, Plant one of the power plant will provide necessary infrastructure for natural population growth and
business expansion in the Treasure Valley, The Comprehensive Plan indicates that if a designated areacannot be feasibly served by necessary infrastructure the city should consider redesignating it for less
intensive uses and concentrating economic development efforts elsewhere (Policy 9,1), The inability toprovide necessary services for industry and the reclassification of industrial zoning to zones which do notrequire electrical generation would be a tremendous opportunity cost for the city. The development of this
area will not occur without adequate electrical generation. The lack of necessary electricity in the areacould lead to brownouts. The effect of these outages could be increased crime, health problems, and jobstoppages.
A goal of the Economic Development chapter encourages the provision of adequate infrastructure forbusiness creation and expansion (Goal 9.0). These plants will provide a support base for CUITent and futureland uses within the city. The development of a gas power plant will provide electricity for residences and
businesses in the area. The second power plant will provide for the East Gateway Industrial park which will
be an asset in attracting and retaining industry to this area.
The applicant was instrumental in amending Idaho Code (Ie) enabling local jurisdictions to receive taxbenefits for power plants (IC 63-405). This bill changed the allocation of property taxes from an electricgenerating plant as an incentive to cities to permit a power plant to locate within or near a city, by providing
that the property taxes are apportioned to local municipalities. Appraised values of the site afterdevelopment will generate additional property tax revenues. This additional tax revenue will provideresources necessary to support services provided for by the city. Staff finds the requested Conditional Use
approval will support regional and local economic development goals. This request will also provideeconomic benefit to the city through property taxes and annual lease payments.
Growth Management
Public services and infrastructure strongly influence the ability of the city to develop. A goal of the GrowthManagement chapter of the Boise City Comprehensive Plan (Chapter 10) encourages public infrastructure
to be developed in a way to keep up with development of residential, commercial, and industrial areas.Necessary infrastructure such as electricity will need to be provided to accommodate that growth, The goal
for electricity in the Boise City Comprehensive Plan is to ensure an adequate, safe, and orderly supply ofelectrical energy is available to support existing and future land uses in the city (Goal 10,0). This projectwill provide a peaking plant for summer and winter months to supplement electrical power already available
to the area. This request supports many of the policies of growth management and will enable theappropriate future growth of the area.
In conclusion, the natural gas power plants at the subject property meet criteria for approval. It is acompatible land use in an Industrial zone in the Boise Airport Planning iv-ea, The power plant will supportpublic infrastructure by providing electricity in peak times. The site will provide a support base forindustrial, commercial, and residential uses. The recommended conditions of approval will mitigatenegative impacts of the proposal.
CUP05-00126/Mountain View Power, lnc,
Page 9
Conditions of Approval
Site Specific:
Construction, use and property development shall be in compliance with plans and specifications on
file with the Boise City Planning and Development Services Department date stamped received on
September 27, 2005 except as may be modified by the Boise City Design Review Committee or
Staff or expressly modified by the following conditions,
The energy production facility shall be limited to a maximum of 250 megawatts for plant one plantThe energy production facility shall be limited to a maximum of IOO megawatts for plant two,
Mountain View Power shall secure an air quality Permit to Construct (PTC) from DEQ that is
consistent with the design information and emissions rates provided in the Gateway Power Plant Air
Quality Modeling Analysis prepared by Greystone Environmental Consultants, lnc, and submitted inDecember 2005 , for Mountain View Power,
Best management practices shall be adhered to. The emissions stack -:hall implement insulation and
-?ilencing equipment to baffle noise pollutio,g. The applicant shall submit an air permit application
----"'
with the Idaho Department of Environmental Quality that will limit the continuous emission rate for
proposed power plant # 1 to IO parts per million nitrogen oxides and 10 parts per million carbon
monoxide as measured by a continuous emissions monitoring system (CEMS) at the plant, exclusiveohime periods when the plant is in start-up or shut-dmvn mode and operating below installed 70%
capacity.
PCWler Plant #2 shall meet or exceed the requirements of Plant #
The applicant shall comply with the conditions of the Idaho Department of Environmental Quality
(DEQ) per Department comments dated October 31 2005 , Requirements include, but are not limited, the following:
a. The applicant shall contact Mlchael McGown for an applicability determination.
b. The applicant shall contact June Ramsdell, Air Quality Manager. Compliance with DEQ
requirements for air quality shall be required,
c. The applicant shall contact Chris Ariss, Engineering Manager. Compliance with DEQ
requirements for wastewater shall be required.
d, The applicant shall contact Tiffany Floyd, Drinking Water Manager. Compliance with DEQ
requirements for drinking water shall be required.
e, The applicant shall contact Craig Shepard, Water Quality Manager. Compliance with DEQ
requirements for water quality shall be required,
The applicant shall contact Ron Lane, Remediation Manager. Compliance with DEQ
requirements for hazardous waste and ground water contamination shall be required,
g, If required a Permit to Construct shall be obtained,
h. A National Pollution Discharge Elimination System (NPDES) Permit is required,
construction disturbs more than one acre of land the applicant shall obtain permit coverage
ITom EP
12,
Cupos-oo 126!Mountain View Power, Inc
Page 10
To obtain a construction General Permit, operators must develop a site-specific Storm Water
Pollution Prevention Plan.
j, No trash or other solid waste should be buried, burned or otherwise disposed at the site.
Injection wells are regulated by the Idaho Department of Water Resources (IDWR)
Comply with all requirements of the Boise Airport Department report, dated stamped received
October 25, 2005. Specifically the applicant shall comply with the following:
a. An avigation easement shall be approved by City legal staff and recorded prior to the
submittal of building permits,
b. A wildlife mitigation plan shall be approved and implemented if required by the Boise
Airport. cv..J
c. The applicant shall apply fo~ receive approval from the Federal Aviation Administration for a
Notification of Proposed Construction.
The applicant has proposed phasing of the project. All required infrastructure shall be constructedprior to the development of each phase. Both phases of this development authorized by thisConditional Use approval must be completed within S years (60 months) from the date of theCommissions approval or the applicant will be required to submit a new conditional use application.Prior to the expiration of this conditional use, the Commission may, upon written request by the
holder, grant a one-year time extension. A maximum of three (3) extensions may be granted.
10.Prior to application for a building permit, the applicant shall provide documentation to the Boise
City Planning and Development Services Departments that the site has a minimum of30 feet
frontage on a public street or a permanent access easement to a public street which was of recordprior to August 16, 1966 or prior to annexation by the City of Boise.
11.This project is in a Design Review District and shall be subject to review and approval by the DesignReview Committee. The Committee shall specifically address the following:
Landscaping and berming around the perimeter of the site provide a sight break from the
Interstate and mitigate any impacts for future development.
Landscaping that shall reduce the impact of carbon monoxide generated on-site.
Fencing to restrict unauthorized access to the site,
Outdoor storage shall be screened from public view
Colors and compatibility of buildings,
The Design Review Committee shall also review and approve any ex1erior lighting so that it'scompatible with future development.
The applicant shall comply with the requirements ofthe Boise City Public Works Department
(BCPW) for sewers per Department comments dated October 7 2005. Please contact BCPW at384-3900. All items required by BCPW shall be included on the plans/specifications that are
18.
19.
21.
22.
CUP05-00126/Mountain View Power, lnc,
Page 11
submitted for a Building Permit. Please note that any changes or modifications by the owner to theapproved plans must be submitted to the Public Works Department for approval.
13,Comply with all conditions of the Ada County Highway District report, date stamped received
October 3, 2005. Proof of legal access shall be provided.
14.Comply with all conditions of the Boise Fire Department report PRE05-00361. Any deviation fromthis plan is subject to fire department approval. For additional information, contact David S, Millerat 384-3827.
All parking areas and driveways shall be paved, and shall be designed and laid out to conform to the
minimum standards required by the Boise City Zoning Ordinance. The applicant shall provide atleast one (1) ADA parking space for each phase-
General:
16.No change in the terms and conditions ofthis approval shall be valid unless in writing and signed bythe applicant or his authorized representative, and an authorized representative of the City of Boise.
The burden shall be upon the applicant to obtain the written confirmation of any change and notupon the City of Boise.
17.Any change by the applicant in the planned use of the property which is the subject of this
application, shall reqUITe the applicant to comply with all rules, regulations, ordinances, plans, orother regulatory and legal restrictions in force at the time the applicant or its successors in interestadvises the City of its intent to change the planned use ofthe property described herein unless avariance in said requITements or other legal relief is granted pursuant to the law in effect at the time
the change in use is sought.
Prior to issuance of a Building Permit and prior to any construction on the site, an Erosion andSediment Control Permit must be obtained from the Building Division of the Planning andDevelopment Services Department.
An Occupancy Permit will not be issued by the Building Department until all of these condition(s)have been complied with. In the event a condition(s) cannot be met by desired date of occupancy,the Planning Director will determine whether the condition(s) is bondable or should be completedand if determined to be bondable, a bond will be required in the amount of 110% of the value of the
condition(s) which are incomplete,
Vision Triangles as defined in Section 11-01-03 and Section 11-10-04.4G. of the Boise City ZoningOrdinance shall remain clear of all sight obstructions,
A detailed grading and drainage plan shall be submitted for review and approval by the Ada CountyHighway District and Boise City Public Works Department before a Building Permit is issued.
The applicant or his/her contractor shall obtain a Right-of-Way Permit from the Ada CountyHighway District prior to any construction in the public right-of-way,
28,
29.
30.
31.
32-
..,..,
.J.J .
CUP05-00 126/Mountain View Power, Inc.
Page 12
') ..,
.J ,Hook-up to wet line sewers shall be required prior to issuance of an Occupancy Permit
24.Utility services shall be provided underground,
25,This approval does not include approval of any signage, A separate Sign Permit will be required
ITom the Boise City Planning and Development Services Department prior to installation of sign(s).
26,All landscaping shall be maintained in a healthy and attractive condition,
27,Landscaped areas shall be irrigated by an appropriate underground irrigation system.
Exterior lighting fixtures must be designed and located so as to prevent glare or direct light from
falling onto adjoining properties or streets.
Any future division of this parcel into individual lots or parcels, for the purpose of selling theseparate lots to individual owners, will be required to comply with all provisions of Boise City Code
Title 9, Chapter 20, including lot frontage on a public or approved private street, and allrequirements for preliminary and final platting.
Construction, use and property development shall be in conformance with all applicable
requirements ofthe Boise City Code.
The applicant shall obtain Building Permits prior to any work commencing on the property.
Specific building construction requirements ofthe 2000 International Building Code and UniformFire Code will apply. However, these provisions are best addressed at Building Permit application.
Failure to abide by any condition ofthis Conditional Use Permit shall be grounds for revocation by
the Boise City Planning and Zoning Commission.
Bruce D. Chatterton
Director
Boise City Hall
150 N, Capital Boulevard
Mailing Address
P. O. Box 500
Boise, Idaho B3701-0500
Phone
208/384-3830
Fax
208/384-3814
TDD/TTY ,
800/377-3529
Web
www,cityofboise.org/pds
Mayor
David H, Bieler
City Council
President
Moryanne Jordan
Council ProTem
Elaine Clegg
Vernon L. Bisterfeldt
David Eberle
Alan W. Shealy
Jim Tibbs
An Equal Opparlun;!y Employer
-ftiI Pr;nted on recycled poper
Planning & Development Services
April 13, 2006
Mountain View Power
Ron Williams, Vice President
1015 W. Hays Street
Boise, ID 83702
Tish Hetrick
2155 Blue Sage Lane
Boise, ID 83716
Richard Kaylor
3877 Gemini Circles
Boise, ID 83709
Dan Buerstetta
5473 S. Broadwing Way
Boise, ID 83716
John Weber
9535 W. Cory Lane
Boise, ID 83704
Re:CUP05-00126 / Appeal / 9605 S. Eisenman Road
Dear Applicant and Appellants;
This is a letter to infonn you of the action taken by the Boise City Council on
your appeal of the Planning and Zoning Commission s decision to approve a
request by Mountain View Power, Inc. for a Conditional Use permit to construct 2
natural gas power plants in 2 phases located at 9605 S. Eisenman Road in an M-
2D (General Industrial with Design Review) zone.
The Boise City Council, at their meeting of March 21 , 2006, voted to deny the
, appeals with regard to Plant Number 1 , and to uphold the appeals with regard to
Power Plant Number 2. Council also directed that condition of approval No.7 for
Power Plant Number 1 be modified to include Airport participation in the process
for determining an avigation easement for the project. Council instructed
Planning staff to return to the City Council with Reasons for the Decision at an
upcoming public meeting.
At the April 11 , 2006 public meeting, the Boise City Council approved the
attached Reasons for the Decision and Conditions of Approval.
CUP05-00126 / Appeal
9605 S. Eisenman Road
Page 2 of 10
If you have any questions, please contact Carl Miller in this department at 208/384-3830.
ll~
Hal Simmons
Planning Director
Boise City Planning and Development Services
HS/bjc
Attachment
cc: Southeast N.A. / Fred Fritchman /1321 Denver Ave. / Boise, ID 83706
CUP05-00126 / Appeal
9605 S. Eisenman Road
Page 3 of 10
Reasons for Decision:
Mountain View Power, Inc. (MVP) requests approval ofa Conditional Use Permit to construct 2
natural gas power plants at 9605 S. Eisenman Road. The site is located in the East Gateway
Industrial Park and in an M-2D (General Industrial with Design Review) zone. Plant One will
generate 80-250 megawatts of electricity and is designed to meet the requirements ofIdaho
Power s Request for Proposal (RFP). Electricity generated from this plant will provide for peak
summer and winter power needs. Plant Two is proposed to generate 50 to 100 megawatts of
electricity. This electrical generation will be a secondary or backup power source for wind
power project being developed across southern Idaho. The second use of this plant will be for
electricity for refrigeration for future warehouses within the East Gateway Industrial Park. The
applicant has proposed an emission stack less than 70' in height to comply with the height
limitations for public services (B.C.c. 11-06-06.13).
On March 30 2005 , Idaho Power issued an RFP for peaking resource electric generation project.
The applicant submitted a Conditional Use application for approval of2 gas-fired power plants at
9605 South Eisenman Road. These plants, if accepted by Idaho Power, would provide for public
electrical generation. On November 14 2005 action on the Conditional Use application was
deferred by the City of Boise P1allning and Zoning Commission to January 9 2006 to allow for
an additional comment period frem public agencies. Greystone Environmental Consultants, Inc.
on behalf ofMVP, submit a prelimi.Tlary atmospheric dispersion model which has been reviewed
by DEQ. The air modeling study for the Gateway Power Plant (GPP) serves as an indicator for
impacts on air quality. The DEQ report on the Gateway Power Plant Air Quality Modeling
Analysis indicates that impacts of all directly emitted air pollutants (NO2, CO, SO2, PMIO, and
PM2.5) were well below applicable air quality standards, even when combined with background
concentrations based on air monitoring data collected in the Boise area. The impact levels of
, PMIO and SO2 are even sufficiently low to be allowed in non-attainment areas (areas not
meeting air quality standards for those pollutants) by Idaho air quality regulations; however, the
Treasure Valley is not a non-attainment area for any pollutants. The DEQ report reflected
emissions generated by Plant One. Plant Two is undefmed for electrical generation, type of
engine used, and DEQ has not analyzed the impact on air quality.
On March 21 , 2006, City Council held a public hearing regarding this request. After hearing all
testimony and all evidence Council made motion to deny the appeal of power plant #1 (Phase #1)
and to modify condition #7 to reflect concerns of the Boise Airport. City Council upheld the
appeal of power plant #2 (Phase #2).
The subject property is located near the Isaac s Canyon freeway interchange. Adjacent
properties and most land in this area are vacant. Both the zoning map and the Boise
Comprehensive Land Use Map designate the area for Industrial uses. There are no residential
zoned properties or subdivisions within 1-:12 miles of the subject property. The Blue Valley
Mobile Home Park is located approximately ~ mile to the northeast. The Columbia Village
residential subdivisions are located between 2-3 miles northeast of the site.
CUP05-00126 / Appeal
9605 S. Eisenman Road
Page 4 of10
Primary emissions ITom natural gas power plants include nitrogen oxide (NOx) and carbon
monoxide (CO). Secondary emissions include sulfur dioxide (SO2), organic compounds (VOC)
and particulate matter (PMIO). Emissions of NO x, SO2, and VOCs can react with other
chemicals in the atmosphere to produce fine aerosol particulate and ozone. The applicant has
proposed to include the installation of additional pollution control equipment in their proposal
and to work with the Idaho Department of Environmental Quality (DEQ) to incorporate
emissions standards that are more stringent than required into the DEQ air permit for their
facility. As a result, the MVP plant will reduce its NOx pollution by 50% as compared to the
emissions from the Bennett Mountain facility currently owned and operated by Idaho Power in
Mountain Home. A condition or approval solidifies this intent by limiting the continuous
emission rate for Plant One to 10 parts per million nitrogen oxides and 10 parts per million
carbon monoxide as measured by a continuous emissions monitoring system (CEMS). The
Idaho Conservation League supports the cleaner pollution control mechanisms and as a result, is
not opposing the request.
City Council denied the request for Plant Two (phase #2). As proposed, Plant Two has an
undefmed use, with a variable amount of electrical generation. This plant has not been evaluated
by DEQ for environmental air quality impacts. Without this necessary information, it is
impossible to assess the impact on neighborhoods in the vicinity. This information is also
unavailable for public comment, therefore appropriate response time ITom public, public
agencies, and other affected parties has not been given due process. The Applicant may re-
submit an application when more specific information is available. The City would need, as a
minimum, the detail of information provided for phase I.
Winds in the Boise area are predominantly ITom the northwest and southeast (see Wind Rose
Map). Although the predominant winds may carry the plume away from the larger population
centers, calm conditions during either winter inversions or summer stagnation periods could
result in the plume transported in any direction. Acoustic tests indicate that the power plant will
generate 52 decibels (dBa) at a location 400' ITom power plant. A level of 52 decibels (dBa) is
roughly equivalent to noise generated by a person speaking in conversational tones.
The subject property is within the Boise Airport Influence Area "A." The Boise Airport has
indicated in a memo dated October 25, 2005 that the smokestacks will penetrate FAR Part 77
imaginary surface by 33' and conflicts with runway 9/27 Part 77 surface. All projections will
need to comply with Federal Aviation Administration (FAA) standards for height and location
near an airport runway. The emissions stacks are proposed for less than 70' in height. There arealso similar heights for the electrical transmission lines in the area and the site is nearby to a
bluff which is elevated 275' above the subject property. City Council revised a condition of
approval to reflect the concerns of interested persons and entities for the proposed plant. This
condition of approval will require additional analysis solely of the stack and plume to detennine
the effect of aircraft. An appropriate avigation easement will be brought back to Council for
fmal approval after comments have been received ITom a variety of professions that could be
affected by the easement.