20160830Eleventh Quarterly Report.pdf

RECEIVED An IDACDRP Company
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LISA D. NORDSTROM
Lead Counsel
[e-mail]
August 30, 2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
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Re: Case No. IPC-E-13-16 -Selective Catalytic Reduction ("SCR") Controls on Jim Bridger
Power Plant Units 3 and 4-Idaho Power Company's 111h Quarterly Report
Dear Ms. Jewell:
In Order No. 32929, the Idaho Public Utilities Commission ("Commission") directed
Idaho 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 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 Idaho 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 Idaho Code § 74-101, et seq., and § 48-
801, et seq., and as such is exempt from public inspection, examination, or copying.
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Enclosure
cc: Service List
Very truly yours,
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Lisa D. Nordstrom
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
11th Quarterly Report for the Jim Bridger Plant
Selective Catalytic Reduction Upgrade at Units 3 and 4
August30,2016
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 August 15, 2016, and a schedule of
major construction milestones. Finally, a summary of actual project costs and a forecast of total
project costs as of June 30, 2016, is provided as a confidential attachment to this report.
Environmental Regulations Update:
Clean Air Act Section 111(d) for Existing Power Plants
On October 23, 2015, the final Clean Power Plan was published in the Federal Register and the
Environmental Protection Agency proposed a Federal Implementation 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 oral arguments be rescheduled before the en bane court on
Tuesday, September 27, 2016. Because an appeal of any decision made by the DC Circuit
Court is expected, the en bane review is likely to speed up the overall litigation process;
however, timing of the final outcome is difficult to predict.
Project Cost Update:
The total 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.
Construction Progress Update:
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 performance testing : On July 16, 2016, the 180-day SCR availability test was
successfully completed. An equivalent availability factor1 of 99.85 percent was achieved,
exceeding the EPC contract minimum requirement of 99.00 percent.
The EPC contractor submitted the application for a "Certificate of Final Completion" to
PacifiCorp for the Unit 3 SCR. It has been approved by PacifiCorp with an effective date of
August 11, 2016.
1 Equivalent Availability Factor is the fraction of net maximum generation that could be provided after all
types of outages and deratings (including seasonal deratings) are taken into account.
1
As of July 27, 2016, 99 percent of the 3,031 tons of Unit 4 structural steels has been erected
and 99 percent of the Unit 4 SCR electrical work has been completed.
The Unit 4 catalyst has been installed in the SCR vessel.
Crews at the Bridger Plant are preparing for the Unit 4 outage that is scheduled to start on
September 3, 2016.
PacifiCorp is working with its corporate environmental group to add aqueous ammonia, the
nitrogen oxides reduction reagent, to the list of permitted sources that can be disposed of in the
wastewater ponds at the Bridger Plant. The PacifiCorp environmental group is awaiting a
laboratory analysis of a waste aqueous ammonia sample to attach to the additional waste
source application for the wastewater ponds.
Schedule:
The project remains on schedule to comply with the required completion dates with the following
major milestones remaining:
• Unit 4 Fall Outage Start-September 3, 2016
• Unit 4 Mechanical Completion -November 3, 2016
• Unit 4 Compliance Deadline -December 31, 2016
Conclusion:
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 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 30th day of August 2016 I served a true and correct
copy of the within 11th 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
Karl Klein
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-007 4
Industrial Customers of Idaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 2?1h Street (83702)
P.O. Box 7218
Boise, Idaho 83707
Dr. Don Reading
6070 Hill Road
Boise, Idaho 83703
Idaho Conservation League
Benjamin J. Otto
Idaho Conservation League
710 North Sixth Street
Boise, Idaho 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, Idaho 83701
CERTIFICATE OF SERVICE
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