20100901Quarterly Progress Report.pdf

esIDA~POR~
LISA D. NORDSTROM
Lead Counsel
Inordstrom(âidahopower.com
An 10ACORP Company
September 1, 2010
VIA HAND DELIVERY
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 fourth quarterly progress report.
Very truly yours,d~l)~
Lisa D. Nordstrom
LDN:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, 1083707
Langley Gulch Power Plant
Quarterly PUC Update
September 2010
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UTILITiES COritHAISSIOl"i
PROGRESS UPDATE:
Ths quarerly update sumarzes project costs through July 2010 and tasks associated with the
Langley Gulch Power Plant though the end of August 2010.
Site constrction has begu with issuance of the Perit to Constrct ("PTC") from the Idaho
Deparent of Environmental Quality on June 25,2010.
The Engineering, Procurement, and Constrction ("EPC") contractor stared mobilizing to the
project site on June 21, 2010. The Industral Company ("TIC") is the constrction ar of the
EPC contract. Kiewit Wester, a subcontractor to TIC, stared earwork with issuance of the
PTC. The aforementioned activities were the predominant work through June and all of July. A
majority of the earwork operation was completed by the second week of August. TIC then
mobilized much of their force to star electrcal duct-bans, low elevation drain piping, and
foundations for the main electrical building. Temporar facilities like job trailers and staging
areas were set up in August. At of the end of August, TIC had approximately 115 personnel
working at Langley Gulch and Kiewit Wester had nearly 30 personneL.
Kiewit Power Engineers, the engineering ar of the EPC contract, continues to issue bid
specifications for securing equipment. Major procurement items over the last quarer included
large bore valves, miscellaneous butterfy and control valves, a Distrbuted Control System,
electrcal commodities, and piping. Kiewit Power Engineers also continues to finalize design
drawings for the project, including the piping and instrentation drawings, strctual
foundations, and electrcal systems.
Last quarer, Idaho Power Company ("Idaho Power") and the EPC contractor signed a change
order for the installation of the water treatment equipment, including constrction of the
evaporation pond. The costs for the procurement and installation of the water treatment
equipment are being offset by the cost savings in the purchase of engineered equipment, which
Idaho Power is sharng. To a large degree, these costs and savings are balancing so no change in
the Commitment Estimate is required. .
Idaho Power and the EPC contractor continue to work closely with Siemens on the owner-
furnished equipment. Siemens continues to submit design and vendor drawings, which the EPC
contractor is incorporating into the balance of plant design. Idaho Power peronnel attended the
rotor balance witness point of the combustion turbine in late August. Other witness points,
including the generator final electrical test, wil be attended by Idaho Power personnel in the last
quaer of 2010. These witness points allow Idaho Power to go to the factory to inspect and
evaluate crtical tests in the manufactung process.
Page 1 of3
Idaho Power received approval from the Idaho Deparent of Water Resources on July 8,2010,
for a new groundwater right (trbutar to the Snake River). Idaho Power and its consultant
finalized the water pipeline and pump station drawigs in July. A request for bids was issued for
the constrction of this work, and Idaho Power has entered into a contract for this work.
Idaho Power is in final negotiations with a contractor to provide engineerng and design services
on the gas pipeline lateral from the tap and meter to the project site. A contract is expected in
early September. The contract for the tap and meter through Northwest Pipeline has been
completed.
Transmission Lines and Substation
Two transmission lines are required to connect the Langley Gulch Power Plant to Idaho Power's
transmission system. One of the lines wil be energized at 230 kV and the other at 138 kV. Both
lines cross a significant portion of Bureau of Land Management ("BLM") property; therefore, a
right-of-way grant from the BLM is required. The route selection and design is complete for the
230 kV line. Long-lead materals have been ordered and some materials have arved. The 230
kV line is scheduled to star constrction in November 2010 and is planed to be in serce by
March 201 1.
After gathering a great deal of input from the public, line route alteratives for the 138 kV line to
the south of Langley Gulch were evaluated and a best route along State Highway 30 was selected
by Idaho Power. Canyon County Planng and Zoning has granted Idaho Power a Conditional
Use Perit for this line location and height of structue. The Canyon County Commissioners
were ver supportive of Idaho Power's efforts in deterining the line route. The 138 kV line is
scheduled to be in service by April 2012.
The strctural design for the switchyard at Langley Gulch has been completed and the strctual
work is out to bid.
PERMITTING UPDATE:
The peritting process is moving forward on task. The following is a summar of the perit
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 perod stared May 19, 2010, and ended June 18,2010.
o Public hearng held on June 3, 2010.
o Perit to Constrct issued on June 25,2010.
Page 2 of3
. Payette County/Canyon County
o Payette County Comprehensive Plan Change completed on May 18, 2009.
o Payette County Conditional Use Applications (thee total) approved on
November 12, 2009.
o Payette County Rezone approval received on December 14,2009.
o Payette County Development Agreement finalized with Payette County on
March 15,2010.
o Canyon County Conditional Use Perit approved at the hearng on July 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 New water right from Snake River having a priority date of September 11, 2009,
was approved on July 8, 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 Slickspot Peppergrass was listed as a theatened species by the U.S. Fish and
Wildlife Serice ("USFWS") in October 2009. A Biological Opinion was issued
by USFWS on May 28,2010.
o BLM has reviewed two drafts of the Environmental Assessment and Idaho Power
is curently updating a final revision.
o Idaho Power believes the overall project schedule wil remain unchanged and
anticipates a right-of-way grant from the BLM by the end of September 2010.
Idaho Power wil continue to be involved with peritting over the next month or two. At ths
time, Idaho Power does not see any significant issues that would cause problems with the
expected Commercial Operation Date as the final significant permit is the right-of-way grant
from the BLM.
SCHEDULE:
The project remains on schedule with the following major milestones:
. Constrction Full Notice to Proceed: Issued to contractor on July 1, 2010
. Gas Turbine Deliver: Febru 2011
. Steam Turbine Deliver: July 2011
. First Fire: March 2012
. Targeted Commercial Operation Date: July 1, 2012
Page 3 of3
Idaho Power Company
Status Update Spending Report for Langley Gulch Power Plant
Through July 2010
July
$s spent to date
Miscellaneous Equipment (I PC supplied)424,550
100,198
1,307,037
399,303
1,142,301
Commitment Estimate Remaining Amount
56,281,662 17,393,757
35,710,905 18,701,965
221,421,431 173,370,588
6,800,686 6,800,686
2,000,000 42,652
2,200,000 116,581
150,000 (46,121)
320,000 (30,547)
8,850,000 8,125,129
3,100,000 3,100,000
662,300 237,750
2,881,277 2,781,079
3,800,000 2,492,963
2,250,000 1,850,697
31,679,100 30,536,799
49,259,378 44,878,440
427,366,739 310,352,417
Gas Turbine
EPC Contract
38,887,905
17,008,940
48,050,844
Steam Turbine
Commitment Estimate Contingency
Site Procurement 1,957,349
Water Rights
NEPA Permitting
2,083,419
196,121
350,547
724,871
Air Permitting
Water Line Construction
Gas Line Construction
Capitalized Property Taxes
Idaho Power Engineering and Oversight
RFP Pricing components (includes start up fuels)
Transmission
AFUDC 4,380,938
Totals 117,014,322
Reported on Accrual based accounting
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