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HomeMy WebLinkAbout20110902Quarterly Progress Report.pdf1SIDA~POR(I An IDACORP Company LISA D. NORDSTROM Lead Counsel Inordstromc&idahopower.com September 1,2011 ~-- Re: IPC-E-09-03 Langley Gulch - Quarterly Progress Report (/rr-0 I ;0rnam VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street Boise, Idaho 83702 -0:i.r.. rn c.? c.c. Dear Ms. Jewell: In Order No. 30892, the Idaho Public Utilities 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 eighth quarterly progress report. Very truly yours, ~i-.N. Y(~ Lisa D. Nordstrom LDN:csb Enclosures 1221 W. Idaho St. (83702) P.O. 80x 70 8oise. ID 83707 Langley Gulch Power Plant Quarterly PUC Update September 1, 2011 PROGRSS UPDATE: Ths quarerly update sumarzes project costs through July 2011 and tasks associated with the Langley Gulch Power Plant though the end of August 2011. As of the date of this report, the overall project remains on schedule and Idaho Power Company ("Idaho Power") expects total project costs 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 all of the design drawings and continues to support the project by reviewing vendor submittals and constrction drawing modifications. All major equipment has been procured and delivered to the site. TIC continues in full constrction mode. Curent constrction activities include erection of strctual steel for the pipe rack, installation of electrcal and instrentation components, connection of heat recover steam generator ("HRSG") piping, and miscellaneous concrete foundations. The major steam tubine equipment has been set, including the high pressure tubine, interediate/low pressure turbine, generator, and gear box. In addition, the contractor is performing hydro tests on the steel storage tans and preparng for the hydro test of the HRSG. Other activities by its subcontractors include finish work on the administration building, erection of the water treatment building, and electrcal relay testing. TIC has approximately 150 people on site, which includes its employees and subcontractors. TIC is utilzing a mix of local labor, vendors, suppliers, and subcontractors. Idaho Power and the EPC contractor continue to work closely with Siemens on the owner- furnished equipment. The Orlando-based Siemens group, supplying the combustion tubine and generator, has shipped nearly all of the equipment to the site. Installation of ths equipment by TIC is nearly complete, recently finishing final alignent of the combustion tubine and generator. The Sweden-based Siemens group, supplying the steam turbines and generator, has completed manufacturing, and all of its equipment arved on site by early August. TIC has stared installing this equipment. Water Supply Pipelie and Gas Pipelie: Constrction is substantially complete on the water pipeline and pump station. A pump test has been perormed, and the equipment appears to be working as designed. Idaho Power has developed a punch-list, and the contractor is working on these minor corrections prior to final project completion. Water is available to the plant site. Wiliams Northwest is self-performing the tap and constrcting the metering station at the gas main. The design and peritting is complete, and constrction is underay. The tap and Page 1 of2 meterng station is expected to be complete by September 2011. Constrction of the gas lateral pipeline from the Wiliams Northwest main to the site was completed in July 2011. The water supply pipeline was completed on schedule, and the gas supply project remains 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 kilovolt ("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 has been 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 constructed in two phases. Phase 1, which includes the ring buss, substation building, and control wiring has been completed by Idaho Power. This was scheduled to be energized in September; however, TIC has requested this be delayed until October in order to reduce time working around energized 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 permitting 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 though July 2011. All major components of the project have been contracted, and Idaho Power expects total project costs at or 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: Arved in New Plymouth, Idaho, on December 4, 2010 · Steam Turbine Delivery: Arved on site August 1,2011 . First Fire: Februar 2012 · Targeted Commercial Operation Date: June 2012 Page 2 of2 Idaho Power Company Status Update Spending Report for Langley Gulch Power Plant Through July 2011 July Dollars Spent To Date Gas Turbine 54,425,576 Component Summary 56,281,662 Steam Turbine 34,972,736 165,576,924EPC Contract Commitment Estimate Contingency Site Procurement 1,957,322 Water Rights 2,083,419 NEPA Permitting 214,431 Air Permitting 350,547 Water Line Construction 4,303,005 Gas Line Construction 3,225,188 992,157Miscellaneous Equipment (Idaho Power supplied) Capitalized Property Taxes 570,800 1,866,320 399,303 Idaho Power Engineering and Oversight RFP Pricing Components (includes start-up fuels) Transmission 9,270,393 AFUDC 20,697,907 49,259,378 Totals 300,906,029 * * Reported on Accrual based accounting ** Commitment Estimate 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 31,679,100 427,366,739 ** La n g l e y Gu l c h Pr o j e c t Ov e r v i e w ID Ta s k N a m e Du r a t i o n St a r t Fi n i s h 20 0 9 20 1 0 20 1 1 __ _ _ _ _ 20 1 2 — ti L s J ( o v in ay Z T h u p J a j4 5 y u 1 Se p T h Ja n Ma r Ma y Ju l Se p No v i Ma Ju l Id a h o uc Ce r t i f i c a t i o n Gr a n t ‘M l — Su b m i t Air Pe r m i t to Co n s t r u c t to 10 6 0 71 8 DE Q Re v i e w Ti m e (1 3 Mo n t h s ) Su b m i t cu 1 Re z o n e ! 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