HomeMy WebLinkAbout20100302Quarterly Progress Report.pdfBARTON L. KLINE
Lead Counsel
bklinel&idahopower.com
esIDA~POR~
An IDACORP Company
l)c-f -0 -03
March 1, 2010
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Langley Gulch - Quarterly Progress Report
Dear Ms. Jewell:
In Order No. 30892, the Commission directed Idaho Power Company to submit
quarterly progress reports to the Commission describing the status of the Langley Gulch
power plant construction. Enclosed with this letter is the second quarterly progress report.
Very truly yours,ršjj)~
Barton L. Kline
BLK:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
Langley Gulch Power Plant
Quarterly PUC Update
March 2010
R E!\l
2010 MAR -8 PM 4: 51
Progress Update:
This quarerly update sumarzes tasks associated with the Langley Gulch Power Plant.
The EPC Contractor continues to issue bid specifications for equipment components. Major
procurement items over the last quarter include electrical equipment, protection relays, pumps
and motors, major valves, and fuel gas equipment. The EPC Contractor also continues to
develop design drawing for the site layout, piping and instruentation drawings, and electrical
drawings.
Idaho Power has changed directions on the spent cooling water disposal method. Originally, a
series of injection wells were planed for disposal of cooling water blowdown. After field
evaluations of the groundwater and aquifer conditions and state agency permitting process
changes, permitting of injection wells, infiltration ponds, or land application would not be
feasible options for disposal of spent cooling water. Idaho Power has entered into an agreement
with the EPC Contractor to install a zero liquid discharge plan which includes a series of water
treatment clarifiers, reverse osmosis systems, and other treatment equipment to reduce the tota
cooling water discharge flow as much as possible prior to sending it to an on-site evaporation
pond. Although there will be costs associated with the cooling water treatment strategy change,
the EPC Contractor has seen cost savings in engineered equipment purchasing. Idaho Power
Company shares in these cost savings. No change in the commitment estimate is expected.
Siemens continues to submit design and vendor drawings to incorporate the owner fushed
equipment into the plant design.
Idaho Power has entered into an engineering contract for the design of the pump station and
water pipeline from the Snake River to the project site. The pump station property has been
acquired. Idaho Power is evaluating different types of water collection systems for the pump
station, including a traditional screening design and a well-field design. It appears the well-field
option will be pursed to minimize maintenance and cleaning issues associated with a traditional
screen system. The well-field option will consist ofthree to four shallow wells aligned along the
river ban to collect water and deliver to a common pump station prior to pumping to the site.
Idaho Power is finalizing a Request for Proposals for engineering and construction services
related to the gas pipeline.
Idaho Power exercised the option for the plant property and closed on the property on
Februar 24,2010.
Page 1 of3
Schedule:
Generally, the project remains on schedule with the following major milestones:
. Construction Notice to Proceed: August 1,2010
. Gas Turbine Delivery: Februar 2011
. Steam Turbine Delivery: July 2011
. First Fire: March 2012
. Targeted Commercial Operation Date: July 1,2012
Permitting Update:
The permitting process is moving forward on task. The following is a sumar of the permit
applications in progress and a status report.
. Air Emissions
o Application submitted July 8, 2009.
o Completeness letter issued from DEQ on September 4,2009.
o Submitted an application update on December 15,2009.
o Anticipate a draft permit issued to Idaho Power in early March 2010 which is
slightly ahead of the original schedule.
o 30-day public comment period to follow - anticipate around April 1,2010.
o Anticipate a Permit to Constrct by July 31, 2010.
. Payette County
o Comprehensive Plan Change completed on May 18, 2009.
o Conditional Use Applications (3 tota) approved on November 12,2009.
o Rezone and Development Agreement approval was received on December 14,
2009.
o Curently finalizing Development Agreement with Payette County.
. Water
o Site groundwater right having a June 12,2009, priority date was approved on
December 2, 2009 (Permit No. 65-23342).
o The name on the Cottonwood surace water right was changed to Idaho Power on
November 16,2009 (Water Right No. 2-10450).
o Submitted application for new surace water diversion from Snake River on
September 11, 2009.
o Curently developing a general arangement site plan for the pump station as an
amendment to the submitted application prior to advertisement.
Page 2 of3
. NEP A (for BLM right-of-way use for transmission and water line)
o Right-of-way grant application submitted to BLM in October 2008 for
transmission and water line piping.
o Most field studies completed in 2009 (including cultual study).
o Coordinating the Public Scoping Document with BLM. Anticipate sending out
for public comment in March 2010.
o Slickspot Peppergrass was listed as a threatened species by the US Fish and
Wildlife Service in October 2009. Submitted draft Biological Assessment to
BLM in Februy 2010.
o IPC believes the project schedule will remain unchanged and IPC anticipates a
Right-of-Way Grant from the BLM by August 1,2010. The Grant is not required
to sta constrction at the project site; however, it is required to sta constrction
on the water and transmission lines.
IPC will continue to be involved with permitting over the next six to nine months, but at this
time does not see any significant issues that would cause problems with the expected
Commercial Operation Date.
Page 3 of3
Idaho Power Company
Status Update Spending Report for Langley Gulch Power Plant
Through January 2010
January
$'5 spent to date
Gas Turbine 27,674,945
10,889,584Steam Turbine
EPC Contract 18,044,518
Commitment Estimate Contingency
Site Procurement 149,764
2,083,419
114,630
Water Rights
NEPA Permitting
Air Permitting 244,681
Water Line Construction 16,081
Gas Line Construction
Miscellaneous Equipment (IPC supplied)
Capitalized Property Taxes
Idaho Power Engineering and Oversight 1,162,113
RFP Pricing components (includes start up fuels)399,303
Transmission 463,980
AFUDC 1,255,418
Totals 62,498,435
Reported on Accrual based accounting
Commitment Estimate Remaining Amount
56,281,662 28,606,717
35,710,905 24,821,321
221,421,431 203,376,913
6,800,686 6,800,686
2,000,000 1,850,236
2,200,000 116,581
150,000 35,370
320,000 75,319
8,850,000 8,833,919
3,100,000 3,100,000
662,300 662,300
2,881,271 2,881,271
3,800,000 2,637,887
2,250,000 1,850,697
31,679,100 31,215,120
49,259,378 48,003,960
427,366,739 364,868,30
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Langley Gulch Power Plant - Change Order Summary
Change Order Summary:
EPC Contract Change Orders:
Base Scope Portion:
CO-OOL: BACT Emission Changes
CO-002: 5-kV Exp. And Additional Breakers
CO-003: Water Treatment Equipment
$
$
$
87,450
197,278
6,789,908
TOTAL:$7,074,636
Siemens Combustion Turbine Contract:
CO-001: Credit for PNTP (Engineering)
CO-002: Current Transformer Upgrade
$
$
(274,000)
18,000
TOTAL:$(256,000)
Siemens Steam Turbine Contract:
CO-OOl: Waranty Modification $
CO-002: Option Execution for Training and Spare Pars $
CO~003: Nozzle Arangment on Turbine $
CO-004: Generator Protection Modification $
CO-005: Supplying Second Exhauster Fan $
390,000
63,000
66,020
15,750
TOTAL: $534,770
March 1, 2010 Page 1 of 1