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Home My WebLink About20160602Tenth Quarterly Report.pdfSIffi*. An IDACORP Companv RiCEIVED ?0!6 JlJt{ -2 P}t h: 23 LISA D. NORDSTROTTi Lead Gounsel lnordstrom@idahopower.com June 2, 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 10th 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 unti! such time as the Jim Bridger Power Plant upgrades are installed and placed in service. The enclosed materials indicate that 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 lilaho 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, oQf,Yl*r;*,* Lisa D. Nordstrom LDN:kkt Enclosurecc: Service List '1221 W. ldaho 5t. (83702) PO. Box 70 Boise, lD 83707 rU*i-lC,r^;i-ti!ilJlSSlON 10th Quarterlv Reoort for the Jim Bridser Plant Selective Catalvtic Reduction Uporade at Units 3 and 4 June 2. 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 wel! as a construction progress update for the SCR installation project through May 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 March 31, 2016, is provided as a confidential attachment to this report. Environmenta! Regula : Clean Air Act Section 111(d) for Existino Power Plants On October 23,2015, the final Clean Power Plan was published in the Federal Register and the Environmenta! Protection Agency proposed a Federal lmplementation Plan. On February 9, 2016, the U.S. Supreme Court issued orders staying the Clean Power Plan pending resolution of challenges to the rule. The DC Circuit Court of Appeals set a litigation schedule, with oral arguments scheduled for June 2,2016. On May 16, 2016, the DC Circuit Court of Appeals ordered that the ora! arguments be rescheduled before the en banc court on Tuesday, September 27,2016. Because an appeal of any decision made by the DC Circuit Court is expected, the en banc review is likely to speed up the overall litigation process; however, timing of the final outcome is difficult to predict. Proiect Cost Update: The tota! cost variance for the Unit 4 SCR remains relatively unchanged compared to last quarter's report. Currently, the Unit 4 SCR is approximately $6.7 million under the original cost estimate. Gonstruction Proorc : The SCR at Unit 3 was completed on-time and is currently operational; therefore, the construction progress updates herein will be for Unit 4. 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 May 1 , 2016,99.2 percent of the 3,031 tons of Unit 4 structural steels had been erected and 84 percent of the Unit 4 SCR electrical work had been completed. During a three-day spring outage, a large amount of electrical tie-in work was completed. A substantial amount of cable pulls, electrical, and piping work has been accomplished this quarter. The large particle ash system downcomers has been installed. Insulation blankets are being installed on the transfer conveyor. lnsulation work continues on the reactor and duct work. PacifiCorp has received proposals/bids from contractors to perform the reinforcement work on the air preheater, boiler, and extema! flue gas path. PacifiCorp is currently evaluating these proposals for award. PacifiCorp is working with its corporate environmental group to add aqueous ammonia, the nitrogen oxides ("NOr') reduction reagent, to the list of permitted sources that can be disposed of in the wastewater ponds at the plant. Sc.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 Mechanical Completion - November 3, 2016o Unit 4 Compliance Deadline - December 31 ,2016 ConcJusion: The installation on the Unit 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 federa! 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 2d day of June 2016 t served a true and correct copy of the within loth 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 Attomey 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 Hill Road Boise, ldaho 83703 ldaho Gonservation 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, Idaho 83701 Ken Miller, Clean Energy Program Director Snake River Alliance P.O. Box 1731 Boise, ldaho 83701 X Hand Delivered U.S. Mail Ovemight Mail FAXX Emai! don.howel!@puc.idaho.qov Hand DeliveredX U.S. Mail _Ovemight Mail _FAXX Email peter@richardsonadams.com qreq@richardsonadam s.com _Hand Delivered X U.S. Mail _Ovemight Mail _FAX Email dreading@mindspring.com _Hand DeliveredX U.S. Mai! _Overnight Mail -FAxX Email botto@idahoconservation.org _Hand Delivered X U.S. Mail _Overnight Mail _FAXX Email ioe@mcdevitt-miller.com _Hand Delivered X U.S. Mail CERTIFICATE OF SERVICE Ovemight Mail