20160303Ninth Quarterly Report.pdf

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RECEIVED
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LISA D. NORDSTROi,I .r ,, ,,-, ''1rrrt In
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March 3, 2016
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 - ldaho Power Company's th Quarterly Report
Dear Ms. Jewell:
In 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 SCR on Unit 3 was placed in service by December 31 ,2015 and is operating in
compliance with the established emission limit and the SCR on Unit 4 will be placed in
service by December 31 ,2016.
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 67, certifies that this monthly report contains
information that is a trade secret as described in ldaho Code S 74-101, et seq., and $ 48-
801, et seq., and as such is exempt from public inspection, examination, or copying.
Very truly yours,
X--P4^/j,*,*
Lisa D. Nordstrom L
LDN:kkt
Enclosurecc: Service List
1221 W. ldaho St. (83702)
PO. Box 70
Boise, lD 83707
9th Quarterlv Report for the Jim Bridoer Plant
Selective Gatalvtic Reduction Upsrade at Units 3 and 4
March 3.2016
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 February 1,2016, 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 ,2015, is provided as a confidential attachment to this report.
Environmental Regula :
Clean Air Act Section 111(d) for Existino Power Plants
The final Clean Power Plan ("CPP") was published in the Federal Register on October 23,
2015. Along with the fina! CPP, the Environmental Protection Agency ("EPA') proposed a
Federa! Implementation Plan.
On February 9, 2016, the U.S. Supreme Court issued orderc staying the CPP pending
resolution of challenges to the rule. The DC Circuit of the U.S. Court of Appeals ("Court") has
set a litigation schedule with oral arguments scheduled on June 2-3, 2016. Timing of the final
outcome of litigation, including any appeals following the Court's decision, is difficult to predict.
Proiect Cost Update:
As of December 3'1, 2015, total costs for the Unit 3 SCR were approximately $1 1.2 million less
than the original cost estimate. The major contributing factors to Unit 3 SCR coming in under
budget were: $2.5 million due to the cancellation of the low temperature economizer exit gas
temperature (EEGT) control system, $1.2 million under budget on the flue gas reinforcement
project, $4.5 miltion due to a release of contingency funds, and $1.6 million in Allowance for
Funds Used During Construction (AFUDC) related to the above reductions.
The total estimated costs for the Unit 4 SCR decreased approximately $3.9 million compared to
last quarter's report. The reduction is primarily due to decreases on the Boiler and Air Pre-
heater Reinforcement work, the Economizer Upgrade, and the Flue Gas Reinforcement, totaling
$1.5 million and an additional release of contingency funds of approximately $2.2 million.
Construction Progrc :
The project to install the SCR controls at the Bridger Plant is moving fonltrard. Unit 3 met the
required completion date in 2015, and Unit 4 is on schedule to meet the required completion
date at the end of 2016. 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.
Unit 3 SCR:
Work on the Unit 3 SCR has been completed. The first flue gas in the SCR was on November
24, 2015, with ammonia injected approximately one week later. The Relative Accuracy Test
Audit ("FIATA") for nitrogen oxide ('NO,') emissions was performed on December 28, 2015.
The result of the RATA showed Unit 3 was in compliance with the established NO, emission
limit. Compliance with the established NO, emission limit of 0.07 lb/mmBtu is measured on a
30-day rolling average. The EPC Contract performance test, to determine if the SCR
successfully met all guarantees in the contract, was completed January 13-18, 2016.
Substantial completion, the point in which the SCR was complete and could be successfully
operated by the plant, was January 22,2016.
Unit 4 SGR:
As of February 1, 2016,99 percent of the 3,031 tons of Unit 4 structural steels had been erected
and 28 percent of the Unit 4 SCR electrical work had been completed.
Both inlet and outlet flues are complete on the Unit 4 North induced draft ("1D") fan. The EPC
Contractor continues to work on the installation of the South ID fan inlet and outlet flues.
Piping work continues, including sootblower and thermal drain piping. lnstallation of the
ammonia injection grid multiple valve station and the ammonia dilution air piping has been
completed.
lnstallation of insulation and lagging continues on the SCR reactors, SCR inlet and outlet
ductwork, and the lD fan ductwork.
Sr.hedule:
The project remains on schedule to comply with the required completion dates with the following
major milestones remaining :
o Unit 4 Fall Outage Start - September 3, 2016. Unit 4 Mechanica! Completion - November 3, 2016o Unit 4 Compliance Deadline - December 31 ,2016
ConrJssion:
The installation of Units 3 and 4 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 March 2016 I served a true and correct
copy of the within gth 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:
Gommission Staff
Don Howel!
Deputy Attomey General
ldaho Public Utilities Commission
472 W estWashington (83702)
P.O. Box 83720
Boise, Idaho 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 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
Ken Miller, Clean Energy Program Director
Snake River Alliance
P.O. Box 1731
Boise, Idaho 83701
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