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HomeMy WebLinkAbout20110531Quarterly Progress Report.pdfMay 31,2011 esIDA~POR~ An IDACORP Company LISA D. NORDSTROM Lead Counsel Inordstrom(âidahopower.com VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Re: IPC-E-09-03 Langley Gulch - Quarterly Progress Report Dear Ms. Jewell: In Order No. 30892, the Idaho Public Utilties Commission ("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 seventh quarterly progress report. Very truly yours,~J.ll~ 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 June 1,2011 "RECEIVED 20" HAY 3/ PM 3: 09 PROGRESS UPDATE: This quarterly update summarzes project costs though April 2011 and tasks associated with the Langley Gulch Power Plant through the end of May 2011. As of the date of this report, the overall project remains on schedule and Idaho Power Company ("Idaho Power") expects total project costs to be 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 engineering an of the EPC contract, has completed all of the design drawings and continues to support the project by reviewing vendor submittals and constrction drawing modifications. All major equipment, including piping, valves, pumps, strctures, and equipment, has been procured. TIC continues in full constrction mode. It has completed a majority of the earwork with the exception of peranent storm water facilities and final site grading. In addition, TIC has completed all of the underground work, including the electrcal duct-bans and process piping. Curent constrction activities include placing miscellaneous concrete pads, installation of combustion turbine ancilar equipment, fabrication of the heat recovery steam generator steam piping, and erection of the pipe rack. Other activities by TIC's subcontractors include constrction of the administration building, erection of the water storage tans, and erection of the cooling tower. In the last quarer, TIC received and set equipment, including the ammonia storage tan, water treatment skids, and the major pumps (boiler feed, circulating water, and condensate). TIC has approximately 150 people on site, which includes its employees and subcontractors. TIC is utilzing a mix oflocallabor, vendors, supplier, and subcontractors. Idaho Power and the EPC contractor continue to work closely with Siemens on the owner- fushed equipment. The Orlando-based Siemens group, supplying the combustion tubine and generator equipment, has shipped nearly all of the equipment to the site. Siemens' constrction staff is on site providing technical experise for the installation of its equipment. The Sweden- based Siemens group, supplying the steam tubine and generator, has completed manufacturing of the equipment in its factory. Delivery of the steam turbine and generator is on schedule, slated to leave the factory in early June 2011 and arve on site by the end of July 2011. Water Supply Pipelie and Gas Pipelie: Constrction is nearly complete on the water pipeline and pump station. All underground piping has been installed and final pressure testing is ongoing. The pump station constrction is in the Page 1 of3 final stages of completion. All electrical and mechancal equipment has been installed and wil be commissioned this sumer. Design of the gas lateral pipeline from the Wiliams Northwest main to the site is complete (constrction started in May 2011). The contractor has completed the bore and installation of the lateral below the A-line canal and is in the process of boring the lateral beneath Interstate 84. Wiliams Northwest, designing and constrcting the tap and metering station, has secured the land and anticipates staring constrction this summer. The water supply pipeline and both gas supply 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 was completed in March 2011. The 16 mile 138 kV line is curently 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 is being constrcted in two phases. 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. Constrction of the substation and installation of the equipment is complete. Idaho Power control wiring crews continue working on the protection and integration of this equipment. 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 within 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 Estimate is attached, which also identifies project costs expended through April 2011. All major components of the project have been contracted, and Idaho Power expects total project costs at or below the Commitment Estimate. Page 2 of3 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 2012 Page 3 of3 Gas Turbine Steam Turbine EPC Contract Idaho Power Company Status Update Spending Report for Langley Gulch Power Plant Through April 2011 April Dollars spent to date 54,203,748 Component Summary 56,281,662 23,360,858 Commitment Estimate Contingency 145,317,917 Site Procurement Water Rights NEPA Permitting Air Permitting Water Line Construction Gas Line Construction 1,957,322 2,083,419 214,431 350,547 3,944,849 2,016,758 877,839Miscellaneous Equipment (Idaho Power supplied) Capitalized Property Taxes 399,785 1,712,222Idaho Power Engineering and Oversight Transmission RFP Pricing Components (indudes start-up fuels) AFUDC Totals 399,303 8,573,659 15,267,637 35,710,905 221,421,431 6,800,686 2,000,000 2,200,000 150,000 320,000 8,850,000 3,100,000 662,300 2,881,277 3,800,000 2,250,000 31,679,100 49,259,378 260,68,294 * * Reported on accrual based accounting ** Commitment Estimate 427,366,739 ** 10 . 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