Loading...
HomeMy WebLinkAbout20110301Quarterly Progress Report.pdf1SIDA~POR~ An IDACORP Company LISA D. NORDSTROM Lead Counsel InordstromCâidahopower.com March 1, 2011 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Re: Langley Gulch - Quarterly Progress Report Dear Ms. Jewell: In Order No. 30892, the Commission directed Idaho Power Company (lCldaho Power") to submit quarterly progress reports to the Commission describing the status of the Langley Gulch power plant construction. Enclosed with this letter is the sixth quarterly progress report. Recently, several parties, including the media, have referenced Order No. 30892 language describing a public witness's estimate that Langley Gulch will cost $126 per megawatt- hour (lCMWh"). Although Idaho Power is not sure of either the source or the derivation of this cost number, it appears that the number is based upon use of inconsistent assumptions and stale data when compared to the published Public Utility Regulatory Policies Act of 1978 (lCPURPA") avoided cost rates. The calculated, levelized rate of the Langley Gulch project is substantially dependent on the capacity factor assumption used to calculate the rate. For PURPA projects, the published avoided costrate is based on the levelized cost of a combined cycle combustion turbine plant (the same type of plant as Langley Gulch) at an assumed capacity factor of 90 percent. Thecurrent published avoided cost rate for a 20-year contract is approximately $82 per MWh. A levelized cost for Langley Gulch using consistent capacity factor assumptions is approximately $76 per MWh. Because Idaho Power will own and operate the Langley Gulch plant, it will run only when Idaho Power needs the electricity to serve customers or when the plant can be operated with the surplus energy being sold into the market at a profit. This additional revenue will help reduce customer rates. The abilty to economically dispatch the Langley Gulch plant makes it a better value for Idaho Power customers even at lower capacity factors than that which is assumed for the current published avoided cost rate. Very truly yours,~l/~Øt~ Lisa D. Nordstrom LDN:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise. ID 83707 Langley Gulch Power Plant Quarterly PUC Update March 1,2011 PROGRESS UPDATE: Ths quarerly update summarzes project costs through Januar 2011 and tasks associated with the Langley Gulch Power Plant through the end of Februar 2011. 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 venture between Kiewit Power Engineers ("KPE") and The Industral Company ("TIC"). KPE, the engineerng ar of the EPC contract, has completed nearly all the design drawings and continues to support the project by reviewing vendor submittals and constrction drawing modifications. All major equipment, including piping, valves, pumps, structures, and equipment, has been procured. TIC continues in full constrction mode. TIC has completed a majority of the underground work, including the electrical duct-bans and process piping, as well as completed a majority of the earhwork. In the last quarer, TIC has set equipment like the combustion tubine, generator, step-up transformers, sections of the condenser, and strctual components of the heat recover steam generator ("HRSG") and drus. Curent constrction tasks include foundation preparation for the. area mats and steam tubine, fabrication of HRSG steam piping, installation of combustion turbine ancilar equipment, and erection of the plant servces building. TIC has approximately 175 people on site, which count includes its employees and subcontractors. TIC is utilzing a mix of local labor, vendors, suppliers, and subcontractors. To date, over 120 vendors in the greater Treasure Valley have provided servces on the Langley Gulch project. Idaho Power Company ("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 drawings and the combustion tubine and generator have arved on site; Siemens' constrction staff arved on site in Februar to provide technical expertise for the installation of its equipment. The Sweden based Siemens group has completed its design and is assembling equipment in its factory. This equipment is on schedule and slated to leave the factory in late May2011. Water Supply Pipelie and Gas Pipelie: Constrction stared on the water pipeline and pump station in August 2010. Through Februar 2011, all of the underground piping has been installed except for about 2000 feet. The pump station is under constrction with the foundation slab and walls completed and the equipment staing to be installed. Page 1 of2 The gas lateral pipeline from the Wiliams Nortwest main is under design, as is the tap and metering facility. The design team for the lateral wil be applying for constrction perits this spring and anticipate staring constrction in early sumer. Wiliams Northwest is in the process of securing land for the tap location and anticipates staring constrction ths sumer. Both of these projects remain on schedule. Transmission Lines and Substation: Two transmission lines and a new substation are required to connect the Langley Gulch Power Plant to Idaho Power's transmission system. One of the lines wil be energized at 230 kilovolts ("kV") and the other at 138 kV. Constrction of the 2.8 mile 230 kV line to the west of the power plant began in November 2010 and wil be completed by March 15,2011. The 16 mile 138 kV line is currently being designed and constrction is planed to star in the fall of 2011. The 138 kV line is planed to be completed by May 2012. The substation constrction stared November 2010. Phase 1, which includes the ring. buss, substation building, and control wiring, is scheduled to be complete by September 15, 2011, in order to provide backfeed power to the site. Phase 2, which includes the integration of the 138 kV line, is scheduled to be complete by May 2012. Each of these projects is on schedule and withn budget. PERMITTING UPDATE: The peritting process is in the constrction compliance phase. Idaho Power continues to monitor the permit requirements and is coordinating with the regulatory agencies as needed. PROJECT COSTS: The commitment summar is attached, which also identifies project costs expended through Januar 201 1. 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 Deliver: Arrved in New Plymouth, Idaho, on December 4,2010 · Steam Turbine Deliver: July 2011 . First Fire: February 2012 · Targeted Commercial Operation Date: June 1,2012 Page 2 of2 Idaho Power Company Status Update Spending Report for Langley Gulch Power Plant Through January 2011 January $s Spent To Date RFP Pricing components (includes start-up fuels)399,303 Commitment Estimate Remaining Amount 56,281,662 2,077,914 35,710,905 12,350,047 221,421,431 101,894,850 6,800,686 6,800,686 2,000,000 42,678 2,200,000 116,581 150,000 (64,431) 320,000 (30,547) 8,850,000 5,990,510 3,100,000 2,296,202 662,300 (77717) 2,881,277 2,695,195 3,800,000 2,252,332 2,250,000 1,850,697 31,679,100 25,768,676 49,259,378 38,675,537 427,366,739 202,639,212 Gas Turbine 54,203,748 Steam Turbine 23,360,858 EPC Contract 119,526,581 Commitment Estimate Contingency Site Procurement 1,957,322 Water Rights NEPA Permitting 2,083,419 214,431 Air Permitting Water Line Construction 350,547 2,859,490 803,798Gas Line Construction Miscellaneous Equipment (Idaho Power supplied)740,017 186,082 1,547,668 Capitalized Propert Taxes Idaho Power Engineering and Oversight Transmission AFUDC 5,910,424 10,583,841 Totals 224,727,527 Reported on Accrual based accounting 10 1 0 _1 _ J2 , / 3- - - v " 4 v " 5 , / 6 v " 7 v " 8 , / -- 9 v " 10 " , . -1 ' f ' - , / -1 2 - - - , / 13 v " -1 4 v " 15 v " 16 v " 17 v " f- . 1 ! ! - v " ! 1 9 , / ~O21 v " -2 223 - , / 2425 v " -~ ~ j = 28 2930 v " 31 v " 32 v " 33 34 - i m 3536 v " 37 I l 38 3940 I ! 41 - 42 -- - 4 3 - - I l 44 ¡ g 4546 I l 47 I 1 4849 v " 50 - 51 l- ; ; J = 54 I i 55 ¡T a S k N a m e la n g l e y G u l c h P r o j e c t M i l e s t o n e S c h e d u l e Id a h o P U C C e r t f i c a t i o n G r a n t Ai r P e r m i t t i n g Su b m i t A i r P e r m i t t o C o n s t r c t t o I D E O DE O R e v i e w T i m e ( 1 3 M o n t h s ) Pu b l i c C o m m e n t P e r i o d . Re c e i v e d A i r P e r m i t t o C o n s t r u c t Co u n t y P e r m i t t i n g Su b m i t C U P I R e z o n e I D e v . A g r e e m e n t A p p . Co m m i s s i o n e r s H e a r i n g a n d A P p r o v a l . Fi n a l i z e D e v e l o p m e n t A g r e e m e n t NE P A P e r m i t t n g Su b m i t B l M R O W A p p l i c a t i o n Su b m i t P u b l i c S c o p i n g D o c u m e n t Bl M P u b l i c C o m m e n t P e r i o d Su b m i t F i n a l B i o l o g i c a l A s s e s s m e n t US F W S R e v i e w a n d I s s u a n c e o f B i o l o g i c a l O p i n i o r Su b m i t F i n a l E A Bl M R i g h t o f W a y G r a n t a n d N T P EP C C o n t r a c t Is s u e F N T P t o E P C C o n t r a c t o r De s i g n I E n g i n e e r i n g Mo b i l i z a t i o n t o S i t e I S t a r t C o n s t r u c t i o n Co n s t r u c t i o n Ga s T u r b i n e D e l i v e r y St e a m T u r b i n e D e l i v e r y St a r t - u p I C o m m i s s i o n i n g I F I R S T F I R E Ta r g e t e d C o m m e r c i a l O p e r a t i o n D a t e Ra w W a t e r S u p p l y l i n e Wa t e r l i n e I P u m p S t a t i o n D e s i g n Fi l e f o r P e r m i t s Bi d W a t e r P i p e l i n e a n d P u m p S t a t i o n P r o j e c t Wa t e r L i n e I P u m p S t a t i o n C o n s t r u c t i o n . Ra w W a t e r T o S i t e Ga s P i p e l i n e Fil e I n t e r c o n n e c t i o n R e q u e s t Ga s P i p e l i n e D e s i g n Fil e f o r P e r m i t s Ga s L i n e C o n s t r u c t i o n Co m p l e t e G a s L i n e C o n s t r c t i o n Tr a n s m i s s i o n Tr a n s m i s s i o n l i n e s De s i g n Co n s t r c t i o n o f 2 3 0 - k V t o O n t a r i o - C a l d w e l l 23 0 - k V l o o p i n - o u t S e r v i c e C o m p l e t e d I B l M Co n s t r u c t i o n o f 1 3 8 - k V t o C a l d w e l l - W i l i s Co m p l e t i o n o f C a l d w e l l - W i l l s T a p Su b s t a t i o n ' . De s i g n Ph a s e 1 S u b s t a t i o n C o n s t r u c t i o n Co n t r o l W i r i n g , T e s t i n g , C o m m i s s i o n i n g En e r g i z e S u b s t a t o n Ba c k f e d P o w e r t o S i t e Ph a s e 2 S u b s t a t i o n C o n s t r u c t i o n Su b s t a t i o n C o m p l e t i o n J T a s k J D u r a ~ S t a r t L 95 0 d a y s M o n 1 0 / 1 3 1 0 8 o d a y s T u e 9 / 1 / 0 9 25 1 d a y s W e d 7 / 8 1 0 9 o d a y s W e d 7 / 8 / 0 9 21 5 d a y s T h u 7 1 9 1 0 9 30 d a y s T h u 5 / 6 1 1 0 o d a y s F r i 6 / 2 5 / 1 0 99 d a y s T u e 1 0 / 2 0 / 0 9 o d a y s T u e 1 0 / 2 0 / 0 9 o d a y s ' M o n 1 2 1 1 4 / 0 9 60 d a y s M o n 1 2 1 1 4 / 0 9 51 6 d a y s M o n 1 0 / 1 3 1 0 8 o d a y s M o n 1 0 / 1 3 / 0 8 . o d a y s ' W e d 1 1 6 / 1 0 30 d a y s W e d 3 / 1 7 / 1 0 o d a y s . M o n 3 / 8 / 1 0 ' 60 d a y s M o n 3 / 8 / 1 0 O. d a y s T h u 9 / 9 / 1 0 o d a y s . M o n 1 0 1 4 / 1 0 ' 71 8 d a y s T u e 9 / 1 1 0 9 o d a y s T u e 9 / 1 / 0 9 40 0 d a y s W e d 9 / 2 1 0 9 : o d a y s M o n 6 / 2 1 / 1 0 51 0 d a y s M o n 6 / 2 1 / 1 0 o d a y s M o n 1 2 / 6 / 1 0 o d a y s F r i 7 / 2 9 / 1 1 o d a y s W e d 2 / 2 9 / 1 2 o d a y s F r i 6 / 1 1 1 2 44 0 d a y s T u e 1 1 ; 2 4 1 0 9 16 0 d a y s T u e 1 1 / 2 4 / 0 9 o d a y s T u e 5 / 2 5 1 1 0 40 d a y s T u e 7 / 6 / 1 0 24 0 d a y s T u e 8 / 3 1 / 1 0 o d a y s M o n 8 / 1 1 1 1 42 0 d a y s M o n 2 / 8 / 1 0 ' o d a y s M o n 2 / 8 / 1 0 15 0 d a y s M o n 1 0 / 4 / 1 O . o d a y s ' M o n 3 / 2 1 / 1 1 60 d a y s M o n 6 / 2 7 / 1 1 o d a y s i = r i 9 / 1 6 / 1 1 ' 75 3 d a y s F r 1 6 / 1 2 / 0 9 : 75 3 d a y s F r i 6 / 1 2 / 0 9 67 0 d a y s F r i 6 / 1 2 / 0 9 90 d a y s T u e 1 1 1 9 / 1 0 , o d a y s M o n 3 / 1 4 / 1 1 15 0 d a y s M o n 1 0 1 3 / 1 1 o d a y s T u e 5 1 1 1 2 : 69 1 d a y s ' T u e 9 1 8 / 0 9 ' 28 3 d a y s T u e 9 / 8 / 0 9 ' 20 0 d a y s M o n 1 1 1 8 / 1 0 10 0 d a y s M o n 3 / 2 8 / 1 l 5 d a y s T h u 9 / 1 1 1 1 o d a y s T h u 9 / 1 5 / 1 1 15 0 d a y s M o n 1 0 1 3 / 1 1 ' o d a y s T u e 5 1 1 1 1 2 Fi n i s h Fr l 6 / 1 / 1 2 Tu e 9 / 1 1 0 9 Fr l 6 / 2 5 / 1 0 We d 7 / 8 1 0 9 We d 5 / 5 / 1 0 We d 6 / 1 6 / 1 0 Fr i 6 / 2 5 1 1 0 Fr i 3 / 5 1 1 0 Tu e 1 0 / 2 0 / 0 9 Mo n 1 2 / 1 4 / 0 9 Fr i 3 / 5 / 1 0 Mo n 1 0 / 4 1 1 0 Mo n 1 0 / 1 3 / 0 8 We d 1 / 6 1 1 0 Tu e 4 / 2 7 / 1 0 Mo n 3 / 8 1 1 0 Fr i 5 / 2 8 / 1 0 Th u 9 / 9 / 1 0 Mo n 1 0 1 4 / 1 0 Fr l 6 / 1 / 1 2 Tu e 9 / 1 1 0 9 Tu e 3 / 1 5 / 1 1 Mo n 6 / 2 1 / 1 0 Fr i 6 / 1 / 1 2 Mo n 1 2 / 6 / 1 0 Fr i 7 / 2 9 1 1 1 We d 2 / 2 9 / 1 2 Fr i 6 / 1 / 1 2 Mo n 8 / 1 / 1 1 Mo n 7 / 5 Ì 1 0 Tu e 5 / 2 5 / 1 0 Mo n 8 / 3 0 / 1 0 Mo n 8 / 1 / 1 1 Mo n 8 / 1 / 1 1 Fr l 9 / 1 6 / 1 1 Mo n 2 / 8 / 1 0 Fr i 4 / 2 9 / 1 1 Mo n 3 / 2 1 / 1 1 Fr i 9 / 1 6 / 1 1 Fr i 9 / 1 6 / 1 1 Tu e 5 1 1 / 1 2 Tu e 5 1 1 / 1 2 Th u 1 / 5 / 1 2 Mo n 3 / 1 4 / 1 1 Mo n 3 / 1 4 / 1 1 Fr i 4 / 2 7 1 1 2 Tu e 5 / 1 / 1 2 Tu e 5 / 1 i 1 2 Th u 1 0 t 7 / 1 0 Fr i 8 / 1 2 / 1 1 Fr i 8 / 1 2 / 1 1 We d 9/ 7 1 1 Th u 9 / 1 5 / 1 1 Fr i 4 / 2 7 1 1 2 Tu e 5 / 1 / 1 2 Ma r Ma v 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 20 0 9 1 2 0 1 0 2 0 1 1 Ju l S e N o v J a n M a r M a J u l S e N o v J a n M a r M a J u l S e N o v J a n M a r M a J u l S e N o v M a o l 0 Id a h o P U C C e r t f i c a t i o n G r a n t + - ' Ju l Su b m i t A i r P e r m i t t o C o n s t r c t t o I D E Q . . 1 8 DE Q R e v i e w T i m e ( 1 3 M o n t h s ) Pu b l l C o m m e n t P e r i o d ¡ ¡ R e i v e d i r P f l r m i t t o C o n s t r u ~ 6 1 2 5 Su b m i t C U P I R e z o n e I D e v . A g r e e m e n t A . . 1 1 2 0 Co m m i s s i o n e r s H e a r i n g a n d p p r o v t r 2 / 1 4 , ! Fi n a l i z e D e v e l o p m e n t A r e e m e t 10 / 1 3 . S u b m i t B l M R O W A p p i i c a t i o n Su b m i t P u b l i c S C O P l n ~ g o c u ~ n t . 1 / 6 Bl M P u b I c C o m e n t P e r i o d i ; Su b m i t F i n a l B i o i I c a l s e s s m e n t 3 / 8 US F W S R e v i e w a n d I s s u a n c e o f l o l o g l a l O , p i n l o n Su b m t F i n a l E A ~ / 9 Bl M R i g h t o f W a y a n t a n d N T P ~ / 4 Is s u e F N T P t o E P C C o n t r a c t o r ~ . 1 1 1 1 . De s i g n I E n g i n e e r i n g i ; Mo b i l z a t i o n t o S i l e I S . . t a r t C o n s t r u c t l o ~ / 2 1 , C o n s t r u c t i o n ~ . G a s T u r b i n e D e l i v e . 1 2 / 6 ¡ . . , ' . " ' " . . . . . . . . , . . . . . , l St e a m t i u r b l n e D e l i v e r y . 7 1 2 9 i S t a r t - u p I C o m m i s s i o n i n g I F I R S T ' F I R E . 2 / 9 I T a r g e t e d C o m m e r c i a l O p e r a t i o n D a t e . 6 / 1 Wa t e r L i n e ¡ P u m p S t a t i o n D e s i g n Fil e f o r P e r m i ~ . 5 / 1 . Bi d W a t e r P i p e l i n e a n d P u m p S t a t i o n P r o j e c t ~ Wa t e r l i n e I P u m p S t a t i o n C o n s t r c t i o n R¡ w W a t e r T o S i t e . - - 0 8 / 2 9 Fi l e I n t e r c o n n e c t i o n R e q u e s t ~Ga s P i p e l i n e D e s i g n Fi l e f o r P e r m l l i : l 2 1 - i Ga s i l n ~ C o n s t r u c t i o n ~ Co m p l e t e p a s l i n e C o n s t r u c t i o n . -0 : 1 2 1 2 0 De s i g n Co n s t r u c t i o n o f 2 3 0 - k Y t o O n t a r i o . C a l d w l l 23 0 . k Y l o o p i n . o u t S e r v i c e C o m p l e t e d I B l M W o r k W i n d o w E n d j i . C o n s t r u c t i o n o f 1 3 . . 8 . k Y t o C a l d w e l l . W i i , s ( " " . : . . . . . . " ' Q , . I C o m p l e t o n o f C a l d w e l l - W i l l s T a p . . 5 1 1 De s i g n Ph a s e 1 S u b s t a t i o n C o n s t r c t i o n Co n t r o l W I r i n g , T e s t i n g . C o m m l s s l . . n I E n e r g i z e S u b s t a t o n I t al c k f d P o w e r t o S i t e ~ 9 / 3 0 Ph a s e 2 ! S u b s t a t l o n C o n s t r c t i o n ( , . . I S u b s t a t i o n C o m p l e t i o n ~ 1 Mi l e s t o n e . -0 ( . 1 P r o g r e s s Su m m a r y Pr o j e c S u m m a r y ¡ ; \ i D e a d l i n e Pa g e 1 Ma r c h 1 , 2 0 1 1