The URL can be used to link to this page

Home My WebLink About20170303Thirteenth Quarterly Report.pdf3Effi*. An IDACORP Company iti.:{l;:lVID i;;; l1i:i -3 Pi{ L: trB LISA D. NORDSTROM Lead Gounsel I nordstrom @ idahopower.com , ' li.ri.iilr:a6tAql. -l,i ,1 lJillUI! March 3,2017 VIA HAND DELIVERY Diane Hanian, Secretary ldaho Public Utilities Commission 472 West Washington Street Boise, ldaho 83702 Re Case No. IPC-E-13-16 - Selective Catalytic Reduction Power Plant Units 3 and 4 - ldaho Power Company's 1 ("SCR') Controls on Jim Bridger 3h Quarterly Report Dear Ms. Hanian In Order No. 32929, the ldaho Public Utilities Commission ("Commission") directed ldaho Power Company ("Compan/) to submit quarterly reports updating the Commission on any changes to environmentra! 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 SGR on Unit 4 was 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 disadvantrage or other business injury. Consequently, the attiachment will be provided separately to those parties that have signed the Protective Agreement in this matter. The undersigned attomey, 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, Lisa D. N LDN:kkt Enclosurecc: Service List 1221 W. ldaho 5t. (83702) P.O. Box 70 Boise, lD 83707 13th Quarterlv Report for the Jim Bridser PIant Selective Catalvtic Reduction Uporade at Units 3 and 4 March 3.2017 This final quarterly report provides an update as to the cunent 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 final construction progress update for the SCR installation project through February 15, 2017. Lastly, a summary of actual project costs and a forecast of total project costs as of December 31 , 2016, is provided as a confidential attachment to this report. Environmental Regu : Clean Air Act Section 111(d) for Existinq 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 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. On September 27,2016, the U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments en banc before a pane! of ten judges. The en banc review is likely to speed up the overall litigation process; however, timing of the final outcome is difficult to predict. While no details are available at this time, the incoming Trump administration has publicly stated its intent to scale back the Clean Power Plan. Proiect Cost Uodate: The total cost variance for the Unit 4 SCR is approximately $8.2 million under the original cost estimate with an estimated $0.5 million remaining in the forecast of expenditures. Combined, the SCRs at Units 3 and 4 came in at $19.5 million less than the original cost estimate. llnit4-licR; Work on the Unit 4 SCR has been completed. The first flue gas in the SCR was on October 30, 2016, with ammonia injected on November 16, 2016. The Relative Accuracy Test Audit ('RATA") for nitrogen oxide ("NO,") emissions was performed on December 13, 2016. The result of the RATA showed Unit 4 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 Engineering, Procurement and Construction contract ("EPC Contract") performance test, to determine if the SCR successfully met all guarantees in the contract, was completed December 13-19, 2016. Substantial completion, the point in which the SCR was complete and could be successfully operated by the plant, was December 29,2016. Demolition and finish grading has been completed on the old Unit 4 variable frequency drive area, induced draft fan and the lower fan alley bay. Berwick Electrical continues to work on completion of remaining scope items. Tumover from Babcock & Wilcox and Perry Group, the EPC Contractor, to Bridger Plant operations is continuing and nearing completion. 1 PacifiCorp, the plant operator, 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. This is for the smal! amount of residual ammonia in the hoses from filling the storage tanks from the trucks. The plant cunently treats this ammonia on-site prior to moving to the ponds. Conclusion: The installation of the SCR controls at Jim Bridger Units 3 and 4 were completed on time and under budget. Combined, the SCRs came in $19.5 million less than the original cost estimate. The SCRs are currently operating in compliance with the established NO* emission limit of 0.07 lb/mmBtu. ln accordance with the ldaho Public Utilities Commission ("Commission') Order No. 32929, ldaho Power Company ("ldaho Powe/'or "Company'') has submitted quarterly reports updating the Commission on environmental regulations that might negatively impact the SCR investments at Units 3 and 4. ln addition to the environmenta! regulations, the quarterly reports provided the Commission with construction progress updates, current project costs, and project milestones. ln the September 2015 report, ldaho Power provided the results of the updated analysis for Jim Bridger Units 3 and 4 that was included in Appendix C to the Company's 2015 lntegrated Resource Plan. Based on the 2015 SCR analysis, installation of the SCRs on Unit 3 and 4 continued to be the least-cost option compared to shuttering Units 3 and 4 and replacing that generation with a combined-cycle combustion turbine resource. The Company believes that it has adhered to the requirements in Order No. 32929 and that the SCR investments represent a low-cost and low-risk option for serving future customer demands. 2 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 3d day of March 2017 I served a true and conect copy of the within 13th QUARTERLY REPORT FOR THE JtM 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 Karl Klein Deputy Attomey General ldaho Public Utilities Commission 472 West Washington (83702) P.O. Box 83720 Boise, ldaho 83720-007 4 lndustrial Customers of Idaho Power Peter J. Richardson Gregory M. Adams RICHARDSON ADAMS, PLLC 515 North 27th Street (83702) P.O. Box 7218 Boise, ldaho 837OT Dr. Don Reading 6070 Hil! Road Boise, ldaho 83703 Idaho 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 CERTIFICATE OF SERVICE X Hand Delivered _U.S. Mail _Ovemight Mail _FAXX Email karl.klein@puc.idaho.qov _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Emai! peter@richardsonadams.com greg@richardsonadam s.com _Hand Delivered X U.S. Mail _Overnight Mail _FAXX Email dreadinq@mindsprino.com _Hand DeliveredX U.S. Mai! _Ovemight Mail _FAXX Email botto@idahoconservation.org _Hand Delivered X U.S. Mail _Ovemight Mail _FAXX Emai! ioe@mcdevitt-miller.com _Hand Delivered X U.S. Mail _Ovemight Mail FAX X