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Home My WebLink About20161202Twelfth Quarterly Report.pdfLISA D. NORDSTROM Lead Counsel lnordstrom@idahopower.com December 2, 2016 VIA HAND DELIVERY Jean D. Jewell, Secretary RE CEIVED 20 ,&DEC-2 PH 3:38 Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 An IDACORP Company 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 1th 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. LDN:kkt Enclosure cc: Service List Very truly yours, cX;~il 11__ PL~ Lisa D. Nordstrom · 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 12th Quarterly Report for the Jim Bridger Plant Selective Catalytic Reduction Upgrade at Units 3 and 4 December 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 well as a construction progress update for the SCR installation project through November 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 September 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. On September 27, 2016 the U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments en bane before a panel of ten judges. 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 $6.8 million under the original cost estimate. Construction Progress Update: The following is an update on the progress of the Unit 4 SCR. During the Unit 4 outage, the internal flue gas reinforcement and the Unit 4 SCR tie-in were completed. 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 4 Mechanical Completion was received from the Engineering, Procurement, and Construction ("EPC") Contractor on November 3, 2016. The Unit 4 SCR construction was turned over to Babcock & Wilcox and Perry Group (EPC Contractor) for commissioning on October 29, 2016. Commissioning activities for the Unit 4 SCR encompass all the functional components of the SCR and will continue until the Unit 4 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. 1 In keeping with the schedule, Unit 4 was brought online on November 4, 2016. SCR tuning and performance testing will continue through December to prepare the unit for full compliance by December 31, 2016. PacifiCorp continues to work 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 SCR performance tests completed by December 31, 2016 • Unit 4 Compliance Deadline is 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 2"d day of December 2016 I served a true and correct copy of the within 1ih 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 _x._ Hand Delivered __ U.S.Mail __ Overnight Mail __ FAX _x._ Email karl.klein@puc.idaho.gov __ Hand Delivered _x.__u.s. Mail __ Overnight Mail __ FAX _x._ Email peter@richardsonadams.com greg@richardsonadams.com __ Hand Delivered _x._u.s. Mail __ Overnight Mail __ FAX _x._ Email dreading@mindspring.com __ Hand Delivered _x.__u.s. Mail __ Overnight Mail __ FAX _x._ Email botto@idahoconservation.org __ Hand Delivered _x._u.s. Mail __ Overnight Mail _FAX _x._ Email joe@mcdevitt-miller.com __ Hand Delivered _x._u.s. Mail __ Overnight Mail __ FAX