20101201Quarterly Progress Report.pdf

LISA D. NORDSTROM
Lead Counsel
InordstromCiidahopower.com
c.e:IDA~POR~
An IDACORP Company
:: C-Ë -Ò't-"3
December 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 fifth quarterly progress report.
Very truly yours,
¿;-¡J.~~
Lisa D. Nordstrom
LDN:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, 10 83707
Langley Gulch Power Plant
Quarterly PUC Update
December 2010
\1
infO DEC -I PH 3: 29
PROGRSS UPDATE:
This quarerly update summarzes project costs through October 2010 and tasks associated with
the Langley Gulch Power Plant though the end of November 2010. The overall project remains
on schedule and costs are projected at or below the commitment estimate.
Langley Gulch Power Island:
The Engineerng, Procurement, and Constrction ("EPC") Contract is a joint ventue between
Kiewit Power Engineers ("KPE") and The Industral Company ("TIC"). KPE, the engineerng
ar of the EPC contract, is nearng design completion, having issued most all project
specifications for equipment and the constrction drawings. All major.. equipment, including
piping, valves, pumps, structues, and electrical equipment has been procured.
TIC is in full constrction mode. They have completed a majority of the underground work,
including the electrcal duct-bans and process piping, as well as completed a majority of the
earhwork. The excavated slopes have been stabilized and reseeded. Current constrction tasks
are related to foundation preparation for the major equipment. In the last quarer, foundations for
the heat recovery steam generator ("HRSG"), combustion turbine, generator, cooling tower, step-
up transformers, and crane pad were placed. TIC has also been accepting major equipment
deliveries with portions of the HRSG and condenser already arrving on-site. Equipment
scheduled for delivery in December is the combustion tubine, generator, and step-up
transformers.
TIC has approximately 150 people on site, which includes their employees and subcontractors.
They are utilzing a mix of local labor, vendors, supplier, and subcontractors. To date, over 100
vendors in the greater Treasure Valley have provided serces on the Langley Gulch project.
Idaho Power and the EPC contractor continue to work closely with Siemens on the owner-
furnished equipment. The Orlando based Siemens group has finalized all design coordination
and has shipped the combustion tubine and generator. Idaho Power personnel attended the
generator final electrcal test in October. The combustion turbine and generator is scheduled to
arve at the project site in early December. Additionally, ancilar equipment continues to be
shipped to the project site. The Sweden based Siemens group is finalizing their drawings for the
steam turbine and generator. This equipment is on-schedule and slated to leave the factory in
late May 2011.
Page 1 of3
Water Supply Pipelie and Gas Pipelie:
Constrction stared on the water pipeline and pump station in August. Though November,
approximately three miles of pipe has bee instaled. The pump station is also under
constrction with the foundation slab and walls completed.
Idaho Power has entered into a contract for the engineerng and design serces on the gas
pipeline lateral from the tap and meter to the project site. The contract for the tap and meter
though Northwest Pipeline has been completed. Design work stared in November with on-site
project kick-off meetings; in addition, the surey has been completed.
Both of these projects remain on schedule.
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") propery, and the
right-of-way grants from the BLM have been secured. The route selection and design is
complete for the 230 kV line. A contract has been awarded for the 230 kV strctue foundations,
and this work stared in November. This work is scheduled to be complete by the end of the
year, after which Idaho Power crews wil set the strctues and install the line. Ths 230 kV line
is scheduled to be in serice by the summer of 20 11.
The second transmission line required to interconnect the Langley Gulch project is a 138 kV line
to the south. The route primarily utilized BLM lands and rus along State Highway 30. Design
for this section of line is scheduled to star in Janua 2011 with constrction estimated to star in
the fall of201 1. The 138 kV line is scheduled to be in serce by May 2012.
Design of the substation is complete. A contract has been awarded for the substation
constrction, including all foundations and strctues. The substation constrction stared in
November 2010. This work is planed to be in service by the sumer of 20 11.
PERMITTING UPDATE:
The permitting process has been completed with the receipt of the right-of-way grants from the
BLM for the water pipeline and transmission lines. Idaho Power wil continue to be involved
with perit compliance over the duration of the project.
Page 2 of3
PROJECT COSTS:
The commitment sumar is attached, which also identifies project costs expended though
October 2010. All major components of the project have been contracted, and Idaho Power
believes the final project costs wil remain below the commitment estimate.
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 Delivery: December 2010
. Steam Turbine Deliver: July 2011
. First Fire: Februar 2012
. Targeted Commercial Operation Date: July 1, 2012
Page 3 of3
Gas Turbine
Steam Turbine
EPC Contract
Idaho Power Company
Status Update Spending Report for Langley Gulch Power Plant
Through October 2010
October
$s spent to date Commitment Estimate
44,742,220
23,360,858
56,281,662
35,710,905
Commitment Estimate Contingency
72,028,424 221,421,431
6,800,686
2,000,000
2,200,000
150,000
320,000
Site Procurement
Water Rights
NEPA Permitting
Air Permitting
Water Line Construction
Gas Line Construction
1,957,322
2,083,419
200,128
350,547
620,465 8,850,000
3,100,000
662,300
2,881,277
3,800,000
Miscellaneous Equipment (IPC supplied)
143,140Capitalized Propert Taxes
534,771
Idaho Power Engineering and Oversight
399,303 2,250,000
31,679,100
1,428,443
Transmission
RFP Pricing components (includes start up fuels)
2,505,508
AFUDC
Totals
6,964,472 49,259,378
157,319,019 427,366,739
Reported on Accrual based accounting
Remaining Amount
11,539,442
12,350,047
149,393,008
6,800,686
42,678
116,581
8,229,535
3,100,000
127,529
2,738,137
2,371,557
1,850,697
29,173,592
42,294,906
270,128,394
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