HomeMy WebLinkAbout20100601Quarterly Progress Report.pdf1SIDA~PO~
RECEIVE An IDACDRP Company
DONOVAN WALKER
Senior Counsel
dwalkerl§ idahopower.com
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June 1,2010
VIA HAND DELIVERY t pe -E-Oei.~ó3
Jean D. Jewell, Secretary
Idaho Public Utilties 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 third quarterly progress report.
yours,ez,iJ~
Donovan E. Walker
DEW:sh
Enclosures
(00028010.DOC; 1)
P.O. Box 70 (B3707)
1221 W. Idaho St.
Boise. ID 83702
iDMiOl~,¡ IT\UTIES v'"Progress Update: v.
This quarerly update summarizes tasks associated with the Langley Gulch Power Plant through
the end of May 2010.
Langley Gulch Power Plant
Quarterly PUC Update
June 2010
RECE¡\~D
intn JUl\ - \ PM a: a4
The EPC Contractor continues to issue bid specifications for equipment components. Major
procurement items over the last quarer include the Distributed Control System, alloy piping,
tanks, valves, fuel gas and water treatment equipment. The EPC Contractor also continues to
develop design drawings for the piping and instrumentation, isometrics, protection schematics,
and electrical systems.
As a result in the change of direction on the waste cooling water disposal method, Idaho Power
Company has signed a change order for the supply of water treatment equipment. Additionally,
IPC and the EPC Contractor have defined contractual terms for the installation of this equipment,
including construction of the evaporation pond. Although there are costs associated with the
cooling water treatment strategy change, the EPC Contractor has seen cost savings in the
purchase of engineered equipment, which IPC is sharing. To a large degree these costs and
savings are balancing so no change in the commitment estimate is required.
IPC and the EPC Contractor continue to work closely with Siemens on the owner-fuished
equipment. Siemens continues to submit design and vendor drawings which the EPC Contractor
is incorporating into the balance of plant design.
IPC's consultant for the water pipeline and pump station design is approximately 75% complete
with the design drawings. For the pump station along the Snake River, Idaho Power has selected
a well-field option for water collection. A new groundwater right (tributary to the Snake River)
has been applied for. The protest period closed on May 24,2010 and the Idaho Department of
Water Resources did not receive any comments. The well-field option wil consist of four
shallow wells aligned along the river ban to collect water and deliver to a common pump station
prior to pumping to the Langley Gulch site. IPC has completed all land acquisitions and
easements related to the water pipeline and pump station.
IPC recently received responses to the Request-for-Proposals issued for engineering and
construction services related to the gas pipeline. IPC is curently evaluating the responses and
expects to make an award in early June 2010.
Transmission Lines and Substation
Two transmission lines are required to connect the Langley Gulch Power Plant to Idaho Power
Company's transmission system. One of the lines wil be energized at 230-kV while the other at
138-kV. Both lines cross a significant portion of BLM property and thus a permit is required.
Route selection is complete for the 230-kV line and the design has progressed such that long lead
materials are being ordered. The 230-kV line is scheduled to start construction in November
2010 and be in-service by April 2011.
Page 1 of3
Alternatives for a portion of the 138-kV line route to the south of Langley Gulch are stil being
considered. IPC has conducted numerous community open houses to determine the best line
route. The decision for the final line route wil be made prior to the Canyon County Conditional
Use Permit hearing in late June or early July. The 138-kV line is scheduled to be in-service by
April 2012.
The preliminary layout for the substation at Langley Gulch has been completed and detailed
design is about to begin.
Schedule:
Generally, the project remains on schedule with the following major milestones:
· Construction Notice to Proceed: August 1,2010
· Gas Turbine Delivery: February 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 summary 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 Draft permit issued by DEQ on March 16,2010
o 30-day public comment period stared May 19, 2010 and ends June 18,2010
o Public Hearing set for June 3,2010
o Anticipate a Permit to Construct by July 31,2010
· Payette County
o Comprehensive Plan Change completed on May 18, 2009
o Conditional Use Applications (3 total) approved on November 12, 2009
o Rezone approval was received on December 14, 2009
o Development Agreement finalized with Payette County on March 15,2010
. Water
o Site groundwater right having a June 12,2009 priority date was approved on
December 2, 2009 (Permit No. 65-23342)
o Submitted application for new surface water diversion from Snake River on
September 11, 2009 with a revised application on April 14, 2010.
Page 2 of3
o Protest period for the new water right ended May 24,2010, and IPC expects
approval in late June or early July 2010.
· NEPA (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 BLM's Public Scoping Document process is complete with public comment
period ended on April 16, 2010.
o Slickspot Peppergrass was listed as a threatened species by the US Fish and
Wildlife Service (USFWS) in October 2009. Submitted Biological Assessment to
BLM in March 2010. USFWS has responded with a draft Biological Opinion
(BO). IPC anticipates a final BO in early June 2010.
o BLM is curently reviewing the draft Environmental Assessment.
o A Plan of Development (POD) is being coordinated with BLM which IPC and our
contractors wil need to follow for this project.
o IPC believes the project schedule wil remain unchanged and IPC anticipates a
Right-of-Way Grant from the BLM by August 1, 2010. The Grant is not required
to star construction at the project site, however it is required to start construction
on the water and transmission lines.
IPC wil continue to be involved with permitting over the next three to six 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 April 2010
April
$'s spent to date
Air Permittng 370,536
542,978
Commitment Estimate Remaining Amount
56,281,662 24,331,033
35,710,905 18,701,965
221,421,431 192,670,946
6,800,686 6,800,686
2,000,000 56,904
2,200,000 116,581
150,000 (29,500)
320,000 (50,536)
8,850,000 8,307,022
3,100,000 3,100,000
662,300 662,300
2,881,277 2,824,021
3,800,000 2,621,719
2,250,000 1,850,697
31,679,100 30,847,793
49,259,378 46,609,204
427,366,739 339,420,834
Gas Turbine 31,950,629
Steam Turbine 17,008,940
EPC Contract 28,750,486
Commitment Estimate Contingency
Site Procurement 1,943,096
2,083,419
179,500
Water Rights
NEPA Permitting
Water Line Construction
Gas Line Construction
Miscellaneous Equipment (IPC supplied)
Capitalized Property Taxes
Idaho Power Engineering and Oversight
57,256
1,178,281
399,303
831,307
RFP Pricing components (indudes start up fuels)
Transmission
AFUDC 2,650,174
Totals 87,945,905
Reported on Accrual based accounting
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