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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 La n g l e y G u l c h P r o j e c t O v e r v i e w ID Fin i s h 20 0 20 1 0 20 1 1 1 Ja n Ma r Ma Ju S v Ja S v J n M M Se No v 1 Pr o j e c t M i e s t o n e 5 d 1 e d u l e 2 Id a h P U C C e r t i f i c a t i o n G r a t 3 4 r P e r m i t t o C o n s t r c t t o I D E S ::: : : : ::: : : : : : : : : : ; : : ; : : ; : ; : : : : : : : ::: : : : ; : : : : : : : : ; : : ; : : : : : : : : : : ; : " : : : : : : : : : : : : : : ; : : . : ; : : : ; : ; : ; : : : : : : : 6 : R e c e l v e ~ r P e r m i t t o C o n s t r u c t 7/3 0 7 8 9 10 11 12 13 en l ~ : 14 .' 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De a c i n e .( Pa e 1 Ma r c h 1 , 2 0 1 0 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