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Home My WebLink About20151203Eighth Quarterly Report.pdf35ffi*. An IDACORP Companv REC[lVi: r ?015 0EC -3 Plt h: 25 .^ . r l'_. '' , f, ,, . u i r JHidb"iil#.nii s s t o zu LISA D. NORDSTROM Lead Gounsel lnordstrom@ida hopower. com December 3, 2015 VIA HAND DELIVERY Jean D. Jewell, Secretary ldaho Public Utilities Commission 472 West Washington Street Boise, ldaho 83702 Case No. IPC-E-13-16 - Selective Catalytic Reduction ('SCR') Controls on Jim Bridger Power Plant Units 3 and 4 - ldaho Power Company's 8th Quarterly Report 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 still 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 wil! be provided separately to those parties that have signed the Protective Agreement in this matter. The undersigned attorney, in accordance with RP 67, certifies that this monthly report contains information that is a trade secret as described in ldaho Code S 74-101, et seq., and S 48- 801, et seq., and as such is exempt from public inspection, examination, or copying. Very truly yours, ,<,*fl71^u^"^-' Lisa D. Nordstrom LDN:kkt Enclosurecc: Service List 1221 W. ldaho st. (83702) PO. Box 70 Boise, lD 83707 8th Quarterlv Report for the Jim Bridqer Plant Selective Catalvtic Reduction Upsrade at Units 3 and 4 December 3. 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 construction progress update for the SCR installation project through November 10, 2015, and a schedule of major construction milestones. Finally, a summary of actual project costs and a forecast of total project costs as of September 30, 2015, is provided as a confidential attachment to this report. Environmental Reou : Clean Air Act Section 111(d) for Existinq Power Plants The final Clean Power Plan ("CPP") was published in the Federal Register on October 23, 2015. Along with the final CPP, the Environmental Protection Agency ('EPA") proposed a Federal lmplementation Plan ('FlP'). Comments on the proposed FIP are due to the EPA on January 21,2016. States will be required to submit a state compliance plan, or an initial submittal with an extension request, by September 6, 2016. Final completed state plans must be submitted no later than September 6, 2018. lt is estimated that EPA will approve or disapprove state implementation plans 12 months following submittal of the plans. ldaho Power Company ("ldaho Powed' or "Company") is continuing to evaluate the impact that the CPP will have on its operations. In the meantime, the Company is reaching out to state representatives, neighboring utilities, and other stakeholders to collaboratively assess the impacts of the rule and prepare for the best path forward for ldaho Power and its customers. Proiect Gost Uodate: As of September 30, 2015, the total Unit 3 SCR costs have decreased $1.3 million compared to last quarter's report. This is due to the release of almost $700k in contingency costs and a reduction of almost $500k in the Flue Gas Reinforcement line item in the budget. The total Unit 4 SCR costs decreased approximately $300k compared to last quarter's report primarily due to a release of contingency costs. Construction Prog : The project to install the SCR controls at the Bridger Plant is moving fonrard 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 September 3, 2015). Unit 3 SCR: lnstallation of the Unit 3 SCR inlet and outlet flues was completed on October 31,2015. The Bridger Plant Risk Management Coordinator has requested Babcock and Wilcox ("EPC Contracto/') to install two additional man gates in the ammonia containment basin. The two additional gates will provide access to all four sides of the containment basin for employee egress. The addition of these gates will not impact the compliance deadline. Mechanical Completion, an integral part of the transition from construction into the commissioning phase, is the date when all components have been installed and the entire SCR system is ready for functional testing and tuning. Notice of Unit 3 Mechanical Completion was received from the EPC Contractor on November 4,2015. Commissioning activities for the Unit 3 SCR encompass all the functional components of the SCR and will continue until the Unit 3 SCR is transferred to the Bridger Plant. These activities include: complete testing of the various systems, testing of controls for proper function, mechanical equipment checks, and system operations tests. The projected Unit 3 online date was November 5,2015; however, due to a delay on the boiler tube replacement project, the Unit 3 SCR came online November 25, 2015. The EPC Contractor and PacifiCorp are working together to ensure that the plant will meet the performance and permit requirements as scheduled by year-end. Unit 4 SCR: As of November 10,2015, 98.1 percent of the 3,031 tons of Unit 4 structural steels has been erected and 2 percent of the Unit 4 SCR electrical work has been completed. Both inlet and outlet flues are complete on the Unit 4 north induced draft fan. The EPC Contractor continues to work on the installation of the south induced draft fan inlet and outlet flues. Scheds.le: The project remains on schedule to comply with the required completion dates with the following major milestones remaining: o Unit 3 Compliance Deadline - December 31 ,2015e Unit 4 Fall Outage Start - September 3, 2016. Unit 4 Mechanical Completion - November 3, 2016. Unit 4 Compliance Deadline - December 31 ,2016 Concfusion: 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 3d day of December 2015 I served a true and correct copy of the within 8th QUARTERLY REPORT FOR THE JIM BRIDGER SELECTIVE CATALYTIC REDUCTION UPGMDE 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 Attorney General ldaho Public Utilities Commission 472 West Washington (83702) P.O. Box 83720 Boise, ldaho 83720-007 4 lndustrial Customers of ldaho Power Peter J. Richardson Gregory M. Adams RICHARDSON ADAMS, PLLC 515 North 27th Street (83702) P.O. Box 7218 Boise, ldaho 83707 Dr. Don Reading 6070 Hil! 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 Ken Miller, Clean Energy Program Director Snake River Alliance P.O. Box 1731 Boise, ldaho 83701 X Hand Delivered U.S. Mail Overnight Mail X Email don.howell@puc.idaho.gov Hand DeliveredX U.S. Mail _Overnight Mai!_FAXX Email peter@richardsonadams.com g reg@richard sonadam s. com" _Hand Delivered X U.S. Mail Overnight Mai! FAXX Email dreading@mindsprinq.com _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email botto@idahoconservation.org _Hand Delivered X U.S. Mail _Overnight Mail _FAXX Email ioe@m cdevitt-m iller. com Hand Delivered X U.S. Mail _Overnight Mail _FAXX Email kmiller@snakeriveralliance.orq CERTIFICATE OF SERVICE