20120601Quarterly Progress Report.pdf

I DAHO
P. E CE k An IDACORP Company
2U2MA131 PM :32
LISA D. NORDSTROM
Lead Counsel
Inordstrom(idahopower.com COMMSS°
May 31, 2012
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: IPC-E-09-03
Langley Gulch Power Plant - Quarterly Progress Report
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
eleventh quarterly progress report.
Very truly yours,
Lisa D. Nordstrom
LDN:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
Lan2ley Gulch Power Plant
Quarterly PUC Update
June 1, 2012
PROGRESS UPDATE:
This quarterly update summarizes project costs through April 2012 and tasks associated with the
Langley Gulch power plant through the end of May 2012. As of the date of this report, the
overall project remains on schedule to become commercially operational in June 2012 and Idaho
Power Company ("Idaho Power" or "Company) expects total project costs at or below the
Commitment Estimate filed in Case No. IPC-E-09-03.
Langley Gulch Power Island:
The Engineering, Procurement, and Construction ("EPC") Contract is a joint venture between
Kiewit Power Engineers ("KPE") and The Industrial Company ("TIC"). KPE, the engineering
arm of the EPC contract, has completed all of the design drawings and continues to support the
project by reviewing vendor and commissioning questions. All major equipment has been
procured, delivered to the site, and installed.
TIC has completed most construction activities. The majority of TIC's work over the last quarter
has been start-up and commissioning of the various systems. Major milestones accomplished
during this quarter were commissioning of the demineralized water system, first fire of the
combustion turbine (April 11, 2012), steam blows, first roll of the steam turbine (May 17, 2012),
and synchronization of both generators to the Idaho Power grid. Planned activities for June
include demonstration tests of the plant and performance tests. Activities performed by
subcontractors include painting, electrical relay testing, fire protection commissioning, and
fencing. TIC has been reducing construction staff and presently has approximately 75 people on
site, which includes its employees and subcontractors. TIC is utilizing 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, supplier of the combustion turbine and
generator, has shipped all of the equipment to the site. Installation and commissioning of this
equipment by TIC is complete. Siemens is preparing to tune the combustion turbine and run
performance tests. The Sweden-based Siemens group, supplier of the steam turbines and
generator, has shipped the equipment to the site. Installation of this equipment is complete. The
steam turbine is being ramped up to full load, during which the control valves will be tuned. The
performance test of the steam turbine will be evaluated during the overall plant performance
evaluation.
Commercial operation remains scheduled for June 2012.
Page 1 of
Water Supply Pipeline and Gas Pipeline:
Construction is complete on the water pipeline and pump station, and water is available to the
plant site. The plant control system is operating and the communication work to synchronize
plant and pump station operation is complete.
Construction of the gas lateral pipeline from the Williams Northwest main to the site was
completed in July 2011. Construction of the tap and metering station was substantially
completed in October 2011. Williams Northwest completed its final checkout and
commissioning of the metering station in April 2012. Gas was delivered to the site on April 7,
2012.
The water supply and gas pipelines were completed on schedule and within the expected budget.
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. Construction of the 2.8 mile 230 kilovolt ("kV")
line to the west of the power plant was completed in March 2011 and is currently in operation.
Construction is also complete on the 16.3 mile 138 kV line.
The substation is being constructed in two phases. Phase 1, which included the ring buss,
substation building, and control wiring, has been completed by Idaho Power and was energized
in November 2011. Phase 2, which includes the integration of the 138 kV line, is complete and
final checkout is currently being performed. Phase 2 of the substation construction is scheduled
to be energized on June 5, 2012.
The transmission lines and substation will be fully operational within the next week and
completed within budget.
Langley Local Contractors:
Idaho Power has requested that its contractors use local labor forces as much as possible. Nearly
30 percent of the general contractor's (TIC) staff is local hires. The Langley Gulch contractors
and engineers have solicited local bids for many project components and materials, including the
water treatment and administration buildings, concrete, rebar, block, piping, earthwork, materials
testing, aggregate supply, fuel, etc. To date, nearly 160 local businesses have been utilized from
Ontario, Oregon, to Rupert, Idaho. The contractor list is included with this update.
Idaho Power bid the other ancillary projects locally (i.e., water pipeline, substation, gas pipeline,
etc.). All of these projects were awarded to local companies except for the gas pipeline because
no local bids were received.
Page 2 of 3
The Langley Gulch power plant is creating both short and long-term job opportunities. The
construction work force has averaged over 150 workers during the last 21 months, including
qualified local electricians, pipefitters, steelworkers, excavators, carpenters, concrete workers,
and laborers. Additionally, Idaho Power has hired 17 new full-time employees to be stationed at
Langley Gulch power plant.
"m "m
The permitting process is in the construction compliance phase. Idaho Power continues to
monitor permit requirements and is coordinating with the regulatory agencies.
The commitment summary is attached, which also identifies project costs expended through
April 2012. All major components of the project have been contracted, and Idaho Power expects
total project costs to be at or below the Company's original Commitment Estimate filed in Case
No. IPC-E-09-03.
The project remains on schedule with the following major milestones:
• Construction Full Notice to Proceed: Issued to contractor on July 1, 2010
• Gas Turbine Delivery: Arrived in New Plymouth, Idaho, on December 4, 2010
• Steam Turbine Delivery: Arrived on site August 1, 2011
• Gas Turbine: First Fire - April 11, 2012; Initial Synchronization - April 13, 2012
• Steam Turbine: First Roll - May 17, 2012; Initial Synchronization - May 21, 2012
• Targeted Commercial Operation Date: June 2012
Page 3 of 3
Idaho Power Company
Status Update Spending Report for Langley Gulch Power Plant
Through April 2012
April
Dollars Soent To Date Component Summary
Gas Turbine
Steam Turbine
EPC Contract
Commitment Estimate Contingency
Site Procurement
Water Rights
NEPA Permitting
Air Permitting
Water Line Construction
Gas Line Construction
Miscellaneous Equipment (Idaho Power supplied)
Capitalized Property Taxes
Idaho Power Engineering and Oversight
RFP Pricing Components (includes start-up fuels)
Transmission
AFUDC
55,293,416
34,974,218
209,998,839
1,957,322
2,083,419
214,431
350,547
4,567,509
3,166,087
2,550,940
1,248,229
2,645,010
399,303
21,836,373
40,698,096
56,281,662
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
Totals 381,983,740 * 427,366,739 * *
* Reported on accrual based accounting
** Idaho Power Filed Commitment Estimate (Case No. IPC-E-09-03)
Langley Gulch
Subcontractor / Vendor List
31)i West - Boise, ID
4T - Payette, ID
A Company - Boise, ID
Action Door -Nampa, ID
Advanced Heating and Cooling - Boise, ID
Aggregate Construction - Nampa, ID
Airgas - Nampa, ID
Allied Barton - Boise, ID
AME Electric —Caldwell, ID
American Geotechnics - Boise, ID
Anderson & Wood - Meridian, ID
Anvil Fence - Boise, ID
Applied Graphyx Dennis Lopez - Boise, ID
Benchmark Electric - New Plymouth, ID
Big D Builders - Meridian, ID
Blackstone Security -Boise, ID
Boise Peterbilt - Boise, ID
Boise Rigging Supply - Boise, ID
Boise River Fence - Boise, ID
Bonneville Industrial - Boise, ID
Bowen Floor Covering—Nampa, ID
Brown & Caldwell - Boise, ID
Brundage Bone - Meridian, ID
Builders Masonry - Meridian, ID
Burks Tractor -Caldwell, ID
C T I Corporation - Boise, ID
Campbell Tractor - Fruitland, ID
Campo Oil Company— Fruitland, ID
Carrier's Clean All - New Plymouth, ID
Cesco - Meridian, ID
CH2M Hill - Boise, ID
Cintas - Nampa, ID
Clearview Cleaning -Boise, ID
Cloud Painting -Boise, ID
CIVIC Construction Services - Boise, ID
Concrete Construction Supply - Meridian, ID
Consolidated Electric -Boise, ID
Crane West Inc. - Boise, ID
Crown Industrial, LLC - New Plymouth, ID
CTA - Boise, ID
Cummins Rocky Mountain - Boise, ID
Curtis Clean Sweep Inc. -Garden City, ID
Dominick's Quick Print -Ontario, ID
Donoho Sand & Gravel - Payette, ID
Downright Well Drilling -Caldwell, ID
Duane Bellows Construction - Ontario, OR
Dusty's Filter Service - Payette, ID
E C Power Systems - Boise, ID
Edge Construction Supply - Boise, ID
Erosion Control Services LTD - Homedale, ID
Farmers Mutual Telephone Coop. - Fruitland, ID
Fastenal - Ontario, OR
Ferguson Pipe Supply - Meridian, ID
Ferrell Gas - Nampa, ID
Fluid Connector Products - Meridian, ID
Franklin Building Supply - Fruitland, ID
Franklin United Inc. —Twin Falls, ID
G & B Redi Mix - Nampa, ID
G 2 B Concrete Pumping - Boise, ID
Garred Automotive - New Plymouth, ID
Gem State Oil Recovery— Kuna, ID
Grainger - Boise, ID
Granite Excavation -Cascade, ID
Graybar Electric - Boise, ID
Greens Truck Trailer Sales Inc - Boise, ID
Ground FX — Boise, ID
H & E Equipment Services - Boise, ID
H D Supply Waterworks - Meridian, ID
Hardin Sanitation Inc - Payette, ID
Harris Rebar -Meridian, ID
Hiddleston Drilling & Pump Co. - Boise, ID
High Country Fusion - Boise, ID
Hilti — ID
Houston Bugatsch Architects - Nampa, ID
Idaho Concrete - Eagle, ID
Idaho Electrical - Melba, ID
Idaho Northern & Pacific Railroad - Emmett, ID
Idaho Sand & Gravel - Boise, ID
June 1, 2012 Page 1 of 2
Idaho Tool & Equipment - Nampa, ID
Ikon - Meridian, ID
Inland Crane - Boise, ID
Inland Foundation Specialties - Boise, ID
Jenkins Appliances -Caldwell, ID
Jims Heating & Cooling -Caldwell, ID
JM Roche - Boise, ID
JUB— Boise, ID
Keller Associates - Meridian, ID
Kenworth - Boise, ID
Lowes Ready Mix Incorporated - Caldwell, ID
Mason & Stanfield Incorporated - Nampa, ID
Materials Testing & Inspection - Boise, ID
Mattson Distributing Co. - Boise, ID
McMillen Engineering—Boise, ID
Metroquip Inc. - Boise, ID
Musgrove Engineering -Boise, ID
Nalco - Boise, ID
Napa Auto Parts - New Plymouth, ID
Northwest Interiors - Nampa, ID
Old Castle Precast - Meridian, ID
Overhead Door Company - New Plymouth, ID
Pacific Steel Distributors - Nampa, ID
Pacific Steel Fabricators - Boise, ID
Paige Mechanical - Boise, ID
Paradise Excavation - Middleton, ID
Payette Valley Co-Op - New Plymouth, ID
Platt Electric Supply - Nampa, ID
Power Engineers - Boise, ID
Praxair—Boise, ID
Pre Corn - Boise, ID
Probst Electric - Rupert, ID
Purgatory Fence - Idaho City, ID
Quality Electric Inc. - Boise, ID
Qwest -Boise, ID
R&M Steel Co. -Caldwell, ID
Roger Anderson - Boise, ID
RSC Equipment Rental - Boise, ID
Safety-Kleen Corp. - Boise, ID
Safway Scaffold - Boise, ID
Schofield Equipment & Repair— Emmett, ID
Sherwin Williams Company - Meridian, ID
Shilo Sprinkler - Nampa, ID
Showalter Construction - Marsing, ID
SLA — Meridian, ID
Specialty Construction - Meridian, ID
Staker Parson Companies - Nampa, ID
Star Construction - Star, ID
Stoel Rives - Boise, ID
Strata - Ontario, OR
Stunz Lumber - Nyssa, OR
SYMAN LLC -Nampa, ID
Syringa Corp. - Boise, ID
System Tech Inc. - Boise, ID
T & L Power Equipment & Repair - Boise, ID
TB Bar Construction - Parma, ID
Tetra Tech - Boise, ID
Timberline Surveying -Nampa, ID
Tom's Motorcyle AN & Snowmobile Repair -
Fruitland, ID
Tour Ice of Ontario - Ontario, OR
Track Utilities - Meridian, ID
Traffic Product & Service - Boise, ID
Treasure Valley Drilling & Pump -Weiser, ID
Treasure Valley Fire Extinguish - Meridian, ID
United Oil -Caldwell, ID
United Pipe & Supply - Boise, ID
United Rentals - Boise, ID
Waddell Plumbing - Boise, ID
Walker Fox - Meridian, ID
Wallace Brothers -Caldwell, ID
West Valley Millwork - Caldwell, ID
Western Idaho Freightliner -Nampa, ID
Western Roofing—Nampa, ID
Western Specialties - Boise, ID
Western States Cat - Meridian, ID
Williams Northwest - Meridian, ID
William-Scotsman Mobile Offices - Nampa, ID
Woody's Outdoor Power - Caldwell, ID
Yanke Machine Shop - Boise, ID
YMC -Meridian, ID
June 1, 2012 Page 2of2