20150226Fifth Quarterly Report.pdf

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An IDACORP ComDany
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?'illl FIB 25 F'ri lr: 2l+LISA D. NORDSTROM
Lead Counsel
lnordstrom@idahooower. com
February 25,2015
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-13-16
Selective Catalytic Reduction ('SCR') Controls on Jim Bridger Power Plant Units 3 and 4
Dear Ms. Jewell:
ln Order No. 32929, the ldaho Public Utilities Commission ("Commission") directed
ldaho Power Company ("Company") to submit quarterly reports updating the Commission
on any changes to environmental policy or regulations until such time as the Jim Bridger
Power Plant upgrades are installed and placed in service. The enclosed materials indicate
that the Company stil! expects the SCRs on Units 3 and 4 will be placed in service by
December 31,2015, and December 31,2016, respectively.
Please note that the attachment to this report is commercially sensitive and if
disclosed freely could subject ldaho Power or its customers to risk of competitive
disadvantage or other business injury. Consequently, the attachment will be provided
separately to those parties that have signed the Protective Agreement in this matter. The
undersigned attorney, in accordance with RP 233, certifies that this monthly report contains
information that is a trade secret or privileged or confidential as described in ldaho Code $
9-340, et seq., and $ 48-801, et seq., and as such is exempt from public inspection,
examination, or copying.
Very truly yours,
,Le ft,u,.,,*
Lisa D. Nordstrom
LDN:kkt
Enclosurescc: Service List
1221 W. ldaho St. (83702)
PO. Box 70
Boise, lD 83707
Selective Catalvtic Reduction Upqrade at Units 3 and 4
Februant 27.2015
This quarterly report provides an update as to the current status of environmental policies or
regulations that are relevant to the construction of the Selective Catalytic Reduction ("SCR')
controls at the Jim Bridger Plant Units 3 and 4 ("Bridger Plant"), as well as a status update on
the ldaho Power Company's ("ldaho Power" or "Company") efforts toward updating the Coal
Unit Environmental lnvestment Analysis ("Coal Study"). This report also provides a construction
progress update for the SCR installation project through February 7, 2015, and a schedule of
major construction milestones. Finally, a summary of actual project costs and a forecast of total
project costs as of December 31 ,2014, is provided as a confidential attachment to this report.
Environmental Reg :
Clean Air Act Section 111(d) for Existinq Power Plants
On June 2, 2014, the Environmental Protection Agency ("EPA') released its draft proposal to
regulate COz emissions from existing power plants.
The final rule was expected to be released in June 2015 with a deadline of June 2016 for the
states to issue their State lmplementation Plans ("SlP'). However, on January 7,2015, the EPA
announced that the final rule will now be issued "mid-summer of 2015". ln the meantime, the
EPA has begun drafting a federal implementation plan (.FlP') to meet goals for cutting carbon
pollution from existing power plants. States that do not submit plans would be subject to the
compliance requirements of the FlP.
Based on the current schedule from the EPA, it is estimated that approval or disapproval, from
the federal EPA of the SlPs will occur in the 2016-2018 timeframe.
While the Company does not know the extent to which the rule will affect the Bridger Plant, the
Company is modeling a variety of COz compliance scenarios in its 2015 lntegrated Resource
Plan ("lRP").
ldaho Power's Goal :
An update to the Coal Study for Jim Bridger Units 3 and 4 SCRs is in progress and will be
included with the filing of the 2015 lRP. The results of the update will be discussed in the SCR
quarterly report that will be submitted in September 2015.
Construction Progrc :
The project to install the SCR controls at the Bridger Plant is moving forward as planned and is
on schedule to meet the required completion dates. The following section provides a high level
description of the construction activities since the last quarterly report (which provided an
update through November 14,2014).
The following are updates on projects that were included as part of the Engineering,
Procurement and Construction contract ('EPC Contract") or individual projects identified as
separate expense categories in the budget. As of February 7, 2015, 98.8 percent of the 2,585
tons of Unit 3 structural steel and 32.6 percent of the 3,031 tons of Unit 4 structural steel have
been erected.
Both of the Unit 4 induced draft fan rotor forgings have arrived in the United States from China.
Final fabrication and preassembly of the induced draft fan rotors are being completed in
Pennsylvania and will be delivered to the Bridger Plant once complete.
The contractors continue to install the electrical work, cable installation, reactor piping, dilution
air piping, and compressed air piping for Unit 3.
PacifiCorp received the Babcock & Wilcox proposal for the supply and installation of the
structural reinforcement of the ElectroStatic Precipitator ("ESP"); ESP inlet and outlet flues; and
ESP supports. After review of the proposal from Babcock & Wilcox, it was decided to issue the
scope of work package for the ESP reinforcement to multiple bidders, for either verification of
the pricing from Babcock & Wilcox or to award the work to another bidder. Bids were received
on February 17,2015, and are currently being reviewed by PacifiCorp.
Proposals for the Unit 3 and Unit 4 boiler and air preheater structural reinforcement were
received. The SCR project team has made its technical evaluation and submitted the results to
the Jim Bridger Plant management for input. Final decision or election of the boiler overhaul
contractor has not yet been made.
The ammonia system piping acceptance test was completed on February 4,2015. The test was
successful and no issues were detected.
Schedutre:
The project remains on schedule to comply with the required completion dates with the following
major milestones remaining:
o Unit 4 SCR South Fan Foundation - Spring 2015. Unit 3 Fall Outage Start - September 5, 2015o Unit 3 Mechanical Completion - November 5, 2015. Unit 3 Compliance deadline - December 31,2015o Unit 4 FallOutage Start- September 3, 2016. Unit 4 Mechanical Completion - November 3, 2016. Unit 4 Compliance deadline - December 31,2Q16
Gonclusrron:
The installation of SCR controls at the Bridger Plant remains on schedule and under budget.
Based on what is known today, the SCR investments continue to be the most cost-effective
means of ensuring that Units 3 and 4 comply with state and federal emissions regulations.
Further, the Company continues to believe that the Bridger Plant SCR investments represent
the lowest cost and least risk option for serving future customer demands.
2
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 25th day of February 20151 served a true and
correct copy of the within sth QUARTERLY REPORT FOR THE JIM BRIDGER
SELECTIVE CATALYTIC REDUCTION UPGRADE AT UNITS 3 AND 4, upon the
following named parties by the method indicated below, and addressed to the following:
Commission Staff
Don Howell
Deputy Attomey General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
lndustria! Customers of ldaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, ldaho 83701
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
Boise, ldaho 83702
Snake River Alliance
Dean J. Miller
McDEVITT & MILLER LLP
420 West Bannock Street (83702')
P.O. Box 2564
Boise, ldaho 83701
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q req@ richa rdsonad ams. com
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Ken Miller, Clean Energy Program Director
Snake River Alliance
P.O. Box 1731
Boise, ldaho 83701
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CERTIFICATE OF SERVICE