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
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VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
Boise, Idaho 83702
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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 **
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