A DICTIONARY ON ELECTRICITY. A joint project of CIGRE. (The International Conference on Large High Voltage Electrical Systems) and AHEF

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1 A DICTIONARY ON ELECTRICITY A joint projct of CIGRE (Th Intrntionl Confrnc on Lrg High Voltg Elctricl Systms) nd AHEF (Th Assocition for th History of Elctricity in Frnc) Contribution on AUSTRALIA prprd for th Austrlin Ntionl Committ of CIGRE by Pnl undr th Gnrl Editorship of Frnk Brdy AM 1996 NOTICE: ** this is n incomplt unpublishd work, th morl rights of CIGRE nd mny contributors to this documnt r cknowldgd. Trdmrks nd ny copyright r cknowldgd. Updts subsqunt to 1996 r invitd. Pls contct Dvid Burgr (

2 DICTIONARY ON ELECTRICITY AUSTRALIA Ar: 7,682, 000 km² Popultion: 17,892,000 (t August 1996) 20,264,082 (t July 2006) Elctricity Consumption: Twh (yr ndd 30th Jun 1996) Instlld Gnrting Cpcity: 38,269 MW s t 30th Jun ,698 MW (ESAA 1998) comprising hydro 7,500.7 MW Elctricl Frquncy: 50 Hz HISTORICAL BACKGROUND Austrli ws constitutd s slf-govrning ntion on 1st Jnury fdrtion of six Stts. Europn sttlmnt bgn in 1788 on th minlnd, nd ovr th nsuing yrs, six British Crown Colonis wr stblishd, ltr to bcom th founding Stts of th ntion in Elctricity supply bgn in Austrli s colonil r - in bout Th Fdrl Constitution of 1901 vstd in th Commonwlth th right to mk lws only in thos mttrs nmd in th Constitution, bing thos considrd importnt to th businss of ntionhood. Th constitution ws silnt on th subjct of lctricity supply, which thus rmind lgisltiv function of ch individul Stt. A complt history of th Austrlin lctricity supply industry is thrfor th story of six sprt Stts, nd this brif ccount cn sktch only n outlin of th most significnt fctors in ch Stt s lctricl dvlopmnt. Th rly dcds of lctricity supply in Austrli - th 1880 s nd 1890 s wr pr-occupid politiclly with dbt on fdrl constitution nd on th mrgnc of n ctiv lbour movmnt. Th rspons of th Stts in lgislting for lctricity ws unvn, nd in som css, influncd by conflicting politicl idologis. In NSW, Qunslnd nd Wstrn Austrli thr mrgd strong flvour of wht hs bn trmd municipl socilism 1 - prfrnc for vsting ownrship nd control of th industry in locl uthoritis. In Brisbn, th cpitl city of Qunslnd, this ws chrctrisd by long priod of conflict btwn th founding privt ntrpris utility nd its municipl comptitor, nd by th picml lloction of frnchis rs throughout Qunslnd by succssiv govrnmnts. Nw South Wls fild to provid comprhnsiv lgl frmwork for th rgultion of th industry until Significntly this ws undr th Locl Govrnmnt Act bcus of th prdominnt rol of locl municipl uthoritis in th businss of lctricity supply. Prior to tht tim ch sprt dvlopmnt hd to b snctiond by its own nbling Act, or, s in th cs of th first two municipl undrtkings in 1888 nd 1889, without bnfit of ny lgisltiv blssing whtvr. Indd th Sydny Council ctivly lgisltd ginst th introduction of lctricity in cntrl Sydny, mking it th lst mjor municiplitis to b lctrifid in Austrli. In th politiclly mor consrvtiv Stts of Victori, Tsmni nd South Austrli, it smd sir for th infnt lctricity industry to dvlop in mor ordrly nd intgrtd fshion. In Victori, th first powr sttions wr constructd by privt compnis in nd round th cpitl city of Mlbourn - dting from followd by th Mlbourn City Council in Stt-wid ownrship nd control of th industry dvlopd progrssivly from 1921 following th crtion of Stt Elctricity Commission to dvlop th vst brown col dposits of th Ltrob Vlly. Pg 2 of 20

3 Th rly dvlopmnt of th hydro-lctric rsourcs of th islnd Stt of Tsmni hd bn inititd by th Mt Bischoff Tin Mining Compny in 1883 nd ltr by svrl municiplitis, th first of which ws Luncston in A mjor hydro-lctric dvlopmnt on th Grt Lks hd bn commncd in 1909 by privt ntrpris - th Hydro Elctric Powr nd Mtllurgicl Compny - but th compny ncountrd finncil difficultis which wr md wors by th outbrk of World Wr I. In ordr to nsur tht th schm procdd, th Tsmnin Govrnmnt st up th Hydro Elctric Dprtmnt to tk ovr th projct. This Dprtmnt thn progrssivly ssumd rsponsibility for lctricity gnrtion nd trnsmission throughout th Stt. In South Austrli, municipl uthoritis gnrlly wr mpowrd to supply both gs nd lctricity in 1891 but non md ny mov to do so. In 1897 th South Austrlin Elctric Light nd Motiv Powr Compny ws uthorisd to supply powr throughout th Colony of South Austrli nd this compny nd its succssors, bgn by dgrs, th supply of lctricity to most of th sttld rs of th Colony. By 1904 ownrship hd pssd to th Adlid Elctric Supply Compny which thn oprtd succssfully for th nxt forty yrs. Th first lctricl instlltions in Prth 2 wr md by privt ntrpris - compny st up by C J Ott, but ftr th initil dmonstrtion projcts, nothing furthr ws hrd of th compny. Th first commrcil supply ws st up by th Prth Gs Compny in 1894, th strt of n r of 100 yrs of combind gs nd lctricity supply in Wstrn Austrli. Both gs nd lctricity pssd into public ownrship in 1912 nd this hs bn th pttrn sinc thn. FIRST LIGHT Thr r numrous climnts to th titl of First Light. Th rlist rcordd displys wr ssocitd with Royl occsions. In 1863 singl rc light on Obsrvtory Hill in Sydny honourd th mrrig of th Princ of Wls; th visit of Roylty to th Colonis in 1867 ws mrkd in t lst two stts, South Austrli nd Victori, by displys of rc light powrd by voltic bttris. 3 Elctricity ws usd to illumint th Gnrl Post Offic in Sydny in 1878 nd th first lighting compny, th Victorin Elctric Light Compny, ws formd in Mlbourn in 1880 to light th Estrn Mrkt nd th Athnum Hll. Th first rcordd incrs in lbour productivity ttributbl to lctricity occurrd in Sydny in 1879, t th Grdn Plc, Botnic Grdns, whr rc lighting ws instlld t th urging of th Prmir, Hnry Prks, to llow construction work to continu t night. In 1883 on pltform of th Adlid Rilwy Sttion ws illumintd. In 1888 th firm of Brton nd Whit supplid powr to th Brisbn Post Offic nd in Prth WA, Govrnmnt Hous ws lit by C J Ott. Howvr it is gnrlly considrd tht th first supply of lctricity to th public t lrg occurrd in two smll country towns in Nw South Wls. Tmworth, with popultion of 3,000, switchd on rc nd incndscnt strt lighting on 9th Novmbr In April 1899, th vn smllr town of Young switchd on its incndscnt strt lighting nd shortly thrftr wnt on to connct shops, offics nd homs within rch of its lins 5. Th Tmworth plnt gnrtd t 240 volts DC but Young hd th furthr distinction of bing th first supply in th country using thr phs ltrnting currnt. Thr r fw sttistics for th rly yrs of th industry but in 1906 it ws rportd tht throughout Austrli thr wr 46 lctric light nd powr supply sttions, with n ggrgt cpcity of 23,000 kw. Eightn of ths wr oprtd by municipl or locl uthoritis. In ddition thr ws furthr 13,000 kw instlld solly for trction purposs, tking th Austrlin totl to 36,000kW. 6 Pg 3 of 20

4 1997 mp bsd on dt from ESAA mp is ftr AJ Gibson 8. Fig 1 AUSTRALIA - HIGH VOLTAGE TRANSMISSION SYSTEMS Pg 4 of 20

5 HIGH VOLTAGE TRANSMISSION - THE EARLY DAYS As consqunc of bing th world s drist continnt, Austrli is closly sttld on only th costl fring. With lnd r pproximtly th sm s th contiguous Stts of th USA nd popultion t Fdrtion (in 1901) of only 3,774,000 popl, th rly dvlopmnt of Austrli ws mrkdly influncd by wht hs bn trmd th tyrnny of distnc. As consqunc, lctricity gnrtion clos to th lod cntr ws initilly th norm for ll of th mjor cntrs of popultion. Th first Stt to us trnsmittd supply ws Tsmni - in with 100 km, 88 kv trnsmission lin from th 6,800 kw Wddmn hydro-lctric powr sttion to th stt cpitl, Hobrt. This ws th first instnc in Austrli of lctricl dvlopmnt bing shpd by th gogrphicl loction of th primry nrgy rsourc. Th nxt such ws in Victori in 1924, whn th Stt bgn svnty yr progrmm of powr dvlopmnt bsd on th vst brown col (lignit) dposits of th Ltrob Vlly. Th initil dvlopmnt consistd of th 50,000 kw Yllourn powr sttion nd 160 km, 132 kv lin to th stt cpitl, Mlbourn. Th institutionl structur of th industry ws lso fctor in th pc t which trnsmittd supply dvlopd. Both Tsmni nd Victori hd movd rly to st up cntrl powr uthoritis srving th ntir Stt (Tsmni in 1916 nd Victori in 1921) nd this llowd th industry in thos Stts to tk brod viw of thir function. Ths two Stts, th smllst in th Commonwlth, ld th wy in th dvlopmnt of high voltg trnsmission nd continud to do so, with Victori moving to 220 kv in 1956 nd 500 kv in In NSW, Qunslnd nd Wstrn Austrli, th municiplistion of lctricity supply smd to rstrict th vision of lctricity plnnrs to thir locl govrnmnt boundris. Only thos NSW ntrpriss with stt-wid or rgionl function showd ny disposition to us high voltg trnsmission. Th Southrn Elctricity Supply of th Dprtmnt of Public Works introducd 132 kv trnsmission in 1942 but it ws not until th formtion of th Elctricity Commission in 1950 tht NSW sw th stblishmnt of widsprd trnsmission ntwork. A similr pttrn mrgd in Qunslnd. Th Stt Elctricity Commission, stblishd in 1936, hd to wit th confrring of dditionl powrs in th difficult post-wr yrs to bgin th dvlopmnt of rgionl powr sttions nd intr-rgionl intrconnctors. In Wstrn Austrli th smll siz of th mtropolitn lod prcludd th rly doption of trnsmission but this procss ws hstnd by th formtion of th Stt Elctricity Commission in 1946, lding to th lctrifiction of th South-Wst nd th intrconnction of Bunbury Powr Sttion to Prth in THE POST-WAR YEARS Th inbility to instll nw gnrting cpcity during wrtim nd th pnt up dmnd of th post wr yrs cusd srious powr supply shortgs in ll Austrlin Stts xcpt South Austrli in th lt fortis nd rly fiftis. Ths wr md wors by prolongd nd svr drought on th hydro-lctric ctchmnts of Tsmni, nd col shortgs in ll th minlnd Stts. Thr followd on of th most rpid xpnsion phss th industry hs sn. MW Gs Turb & CC Int Comb HYDRO STEAM Fig 2 INSTALLED GENERATING CAPACITY - AUSTRALIA 9 Pg 5 of 20

6 In 1952, NSW hd powr sttion construction work in progrss t no lss thn 15 sprt sits, mny of thm smll pckgs nd disl powr sttions rushd into srvic to ovrcom svr nd prsisting shortgs. Th industry throughout Austrli continud t full strtch throughout th fiftis nd sixtis. Evn s lt s 1980, Victori hd construction in progrss on fiv sprt powr sttion sits, this tim involving units of up to 500 MW cpcity. ENERGY RESOURCES FOR ELECTRICITY GENERATION Austrli is totlly slf-sufficint in nrgy rsourcs for lctricity gnrtion. Blck col is th bs lod nrgy sourc in NSW, Qunslnd nd Wstrn Austrli; brown col is th prdominnt sourc in Victori, nd hydrolctric nrgy supplis lmost ll of th powr in Tsmni. Nturl gs is of growing importnc, bing now th principl ful in th Northrn Trritory nd significnt contributor in South Austrli, Wstrn Austrli nd Victori. Elctricity importd from th NSW - Victorin systms currntly supplis 36% of South Austrli s rquirmnts. Th blnc is supplid qully from powr sttions burning indignous lignit nd nturl gs. Austrli is mjor xportr of col nd nturl gs, bing th world s lrgst xportr of col (stming plus coking), nd th third or fourth lrgst xportr of LNG. Bcus of th rdy vilbility nd low cost of fossil fuls thr hs bn no conomic justifiction for th introduction of nuclr powr. Howvr Austrli posssss lrg urnium rsrvs nd U 3 O 8 is xportd in substntil quntitis to Europ nd Asi. Th hydro-lctric potntil of Tsmni nd th brown col rsrvs of Victori hd bn substntilly idntifid in th rly prt of th cntury, but it ws not until th 1950 s tht th comprhnsiv nd systmtic quntifiction of th blck col rsourcs of NSW bgn in rnst - t th instigtion of th lctricity gnrting uthority. This xplortory work ws th foundtion of th mssiv incrs in col-fird gnrting cpcity which occurrd in NSW in th nxt four dcds. From 1963 onwrds, ll of th mjor powr sttions in NSW wr supplid from tid mins, with bout hlf th col coming from mins ownd nd oprtd by th gnrting uthority or from thir lss, oprtd undr contrct. As notd rlir, bs lod gnrtion in Victori hs bn supplid from th brown col rsourcs of th Ltrob Vlly, hug rsourc with som 35 billion tonns of conomiclly winnbl col, much of it in col sms 150 to 200 mtrs thick, with n ovrburdn dpth of only 10 to 15 mtrs. Th opn-cut col winning is crrid out by th gnrting uthority using mssiv buckt-whl xcvtors, th col bing trnsportd dirctly to th powr sttions. TJ 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , HYDRO(blck col quiv) NATURAL GAS OIL BROWN COAL BLACK COAL FIG 3 ENERGY SOURCES FOR ELECTRICITY PRODUCTION - AUSTRALIA 10 Pg 6 of 20

7 In Qunslnd th Stt Elctricity Commission hd idntifid th potntil for lowr cost gnrtion on th Cntrl Qunslnd colfilds by th lt fiftis, but prssur to prsrv mploymnt in th southrn colfild nd lck of hrd dt on costs nd rsrvs in Cntrl Qunslnd dlyd thir dvlopmnt for lctricity gnrtion by svrl yrs. By 1968, th dvlopmnt of col xports to Asi nd Europ from th Cntrl Colfilds providd sound bsis for powr sttion rsourc plnning in th r. Th lctricity industry ws bl to scur th stting sid of col rsrvs for its futur us by 1971 nd ll mjor powr sttions sinc thn hv bn loctd on thos rsrvs, with col sourcd comptitivly from privt ntrpris. In South Austrli th Adlid Elctricity Supply Compny (AES Co) hd bn ffctiv in dvloping n intrconnctd supply to th mjor cntrs of th Stt s popultion but its gnrting cpcity ws bsd on s-born blck col from NSW. Th dsir of th Stt Govrnmnt to divrsify its ful supply nd to crt locl mploymnt rsultd in dcision to crt th Elctricity Trust of South Austrli in Th Trust compulsorily cquird th ssts of th Adlid Elctric Supply Co nd undrtook th dvlopmnt of lctricity gnrtion bsd on lignit dposits t Ligh Crk, 560 km to th north of th stt cpitl Adlid. As in Victori, th opn cut is oprtd by th gnrting uthority but th ful is huld 250 km by ril to Port August, th nrst point t which cooling wtr is vilbl for powr gnrtion. A similr pttrn mrgd in Wstrn Austrli following th formtion of th Stt Elctricity Commission in With plnning on rgionl instd of locl bsis, gnrtion movd closr to th colfilds, but th powr sttion sits wr likwis rstrictd to th costlin bcus of lck of idntifid cooling rsourcs in th hintrlnd. Th lctricity utilitis in South Austrli, Wstrn Austrli nd th Northrn Trritory wr to ply mjor rols in th dvlopmnt of Austrli s mjor nturl gs filds by providing th ssntil powr sttion mrkt tht would justify thir dvlopmnt, including th construction of long pip-lins, 780 km lin from th Coopr Bsin to Adlid in 1969, 1500 km lin from th North Wst Shlf to Prth in 1984 nd 1,600 km lin from th Amdus Bsin to Drwin in Th Northrn Trritory utility commissiond Austrli s first Combind Cycl plnt of 96 MW which wnt into srvic in THE INFLUENCE OF ELECTRIC TRACTION Elctric trmwys wr of mjor significnc in th rly dys of th industry nd in Sydny, NSW thy prdtd th gnrl us of lctricity for strt lighting or othr purposs. Th first trms rn in Mlbourn in 1890 nd by th turn of th cntury thr wr lctric trmwys in ch of th Stt cpitls. Mlbourn is th only city to hv rtind its xtnsiv nd splndid trmwy systm. Elswhr disl buss displcd trms in th 1950 s nd 60s but thr r signs of rnissnc of trmwys rlying on th mystiqu of nw nm - light ril. Suburbn lctric ril systms wr built in Mlbourn in 1918 nd in Sydny in 1926, srvd by thir own 25 Hz powr systms. Intrcity srvics to provincil cntrs in NSW wr built in th 1960 s. Ths r in ffct xtnsions of th 1500 volt DC suburbn ntwork, nd dbt continus on th construction of lctrifid high-spd ril links btwn Sydny nd Mlbourn nd th Ntionl Cpitl, Cnbrr. Th possibility of urbn rilwy lctrifiction in Wstrn Austrli cst long shdow dcds bfor it ctully hppnd - in th 1980 s. In 1913 dcision ws md to dopt 40 Hz s th frquncy for th Stt s nxt nd lrgst powr sttion in viw of th possibility of rilwy lctrifiction - dcision which pprd to drw on th xprinc of th Govrnmnt s UK consultnts, Mrz, in thir hom city of Nwcstl on Tyn, Englnd. Tht frquncy ws sn s compromis btwn th nds of th gnrl supply nd th problms of commuttion of 50 Hz supply on rotry convrtrs in th DC-drivn rilwy systm. Howvr, rilwy lctrifiction did not procd, nd th Stt ws burdnd with its 40 Hz systm until convrsion to 50 Hz ws compltd in Ironiclly, whn th rilwys wr lctrifid 25 kv AC systm ws chosn Qunslnd mbrkd on mjor rilwy lctrifiction projct in 1983 on th col hulg rilwys of th Cntrl Qunslnd col district. This systm, which oprts on configurtion supplying singl-phs 25 kv locomotivs is th lrgst AC trction systm in Austrli nd huls som 83 million tonns of xport col to th Cntrl Qunslnd ports ovr 1670 km of trck. Dsign nd oprtion of th systm prsntd tchnicl chllngs to void lctricl intrfrnc to othr lctricity usrs on long rdil 132 kv systm. Nin lod-blncing sttic VAR Pg 7 of 20

8 compnstors wr instlld t th thirtn trction substtions on th systm in ordr to void wht would othrwis hv bn n xpnsiv trnsmission ugmnttion. By 1989 Qunslnd hd compltd lctrifiction of th Brisbn suburbn systm nd th 639 km min lin from Brisbn to Rockhmpton, ll t 25 kv AC. ELECTRO-METALLURGICAL INDUSTRIES Th lctro-mtllurgicl industris hv hd significnt influnc on th chrctr of th lctricity industry t numbr of stgs of its dvlopmnt. Th first such instnc ws th lrg scl dvlopmnt of hydro-lctric powr in Tsmni - bgun by mtllurgicl compny but of finncil ncssity compltd by th Tsmnin govrnmnt. Fundmntl to th Govrnmnt s willingnss to tk ovr th projct ws n implid commitmnt by th lctromtllurgicl compny tht it would bsorb mjor prt of th low-cost lctricity to b gnrtd by th projct. Th first supply ws givn in 1917, th strt of mor thn 70 yrs of hydro-lctric dvlopmnt in Tsmni, much of it to supply lctro-mtllurgicl nd othr nrgy-intnsiv industry. On such projct ws th supply to th Bll By luminium smltr st up by Commonwlth Govrnmnt gncy, th Austrlin Aluminium Production Commission undr contrct signd in This ws concivd s strtgic msur in th Cold Wr yrs to nsur tht Austrli would not b cut off from luminium supplis. Austrli is on of th world s lrgst xportrs of lumin, nd during th build-up of th lumin rfining industry, svrl intrntionl luminium smltrs bgn to xplor th possibility of instlling smlting cpcity in Austrli, bsd not on hydro powr, but on low-cost col-fird gnrtion. Th first of thos col-bsd smltrs ws th Point Hnry plnt of Alco, stblishd in This ws supplid from th compny s own brown col fird sttion, with bck-up from th Victorin public ntwork. This ws followd by th Alcn smltr t Kurri Kurri, NSW in 1970, th Comlco smltr t Gldston, Qunslnd in 1981, Pchiny t Tomgo, NSW in 1983 nd Alco t Portlnd, Victori in Ech of ths projcts hs hd n influnc wll byond its dirct nd immdit consquncs. Th Kurri Kurri smltr ws th lvrg point for ngotitions with th undrground col mining unions in NSW which sw thir ccptnc, ginst long stnding objction, of opn-cut col mining for powr gnrtion. Only through opn-cut mining could nrgy costs b brought low nough to compt intrntionlly for smltr businss - th quid pro quo for th minrs ws job crtion in th dprssd mining r round Kurri Kurri. 11 Th Gldston smltr of Comlco (th privt ntrpris succssor to th originl Austrlin Aluminium Production Commission) ws th subjct of powr supply options dting from 1972 tht wr xtndd tim ftr tim. Th Stt Elctricity Commission hd proposd powr sttion in Cntrl Qunslnd sinc th lt fiftis, nd by 1968 th prospct of 600 MW smltr lod t Gldston pprd to crystllis plns in fvour of th construction of mjor powr sttion t tht loction, clos to th Cntrl Colfilds nd th proposd smltr, but distnt 530 km from th mjor lod cntr, th Stt cpitl, Brisbn. This triggrd th shift to th Cntrl Colfilds for lctricity gnrtion, th strt of th Qunslnd 275 kv trnsmission systm, nd ultimtly, th intrconnction of th Stt from north to south ovr distnc of 1500 km. Th Tomgo nd Portlnd luminium smltrs might b dscribd s blonging to th Grt Aluminium Rc, priod of intns rivlry btwn Stt Govrnmnts to ttrct nw luminium smltrs onto thir systms to promot mploymnt nd trd - rivlry tht ws spurrd on by th Commonwlth Govrnmnt which sw window of opportunity to incrs Austrli s downstrm procssing of its bundnt minrl xports. This notion of window of opportunity ws to ld to vst xpnsion of gnrting cpcity which ws thn ovrtkn by th intrntionl rcssion of 1982, rsulting in significnt surplus in gnrting cpcity Austrli wid. As rsult howvr, Austrli hs now lrgly rnwd th gnrting cpcity instlld in th fiftis nd sixtis, with convoy of modrn nd highly fficint gnrting units in th rng 350 to 660 MW. On importnt consqunc of th stblishmnt of th Portlnd smltr ws tht it rquird long wstrly xtnsion of th Victorin 500 kv systm which ws ltr to b crucil to th intrconnction of South Austrli to th NSW- Victorin intrconnction. Pg 8 of 20

9 THE SNOWY MOUNTAINS HYDRO-ELECTRIC SCHEME On of th milstons of th industry ws th dvlopmnt of th Snowy Mountins Hydro-lctric Schm. Thr hd bn mny proposls ovr th yrs to dvlop this rsourc but bcus of th distncs involvd, commitmnt hd to wit th growth of lods to th point tht th invstmnt ws justifid. Th post-wr finncil nd politicl input of th Commonwlth Govrnmnt ws dcisiv. Th Snowy Rivr trvrss two Stts, NSW nd Victori, nd its dvlopmnt my wll hv bn th sourc of rgumnt btwn thm wr it not tht th Commonwlth hd bn cdd ntitlmnt to its wtrs undr lgisltion to crt Ntionl Cpitl. In th vnt, grmnt ws rchd btwn ll prtis rpidly, nd construction bgn in 1949 with th finl stg compltd in Th Schm occupis n r of 3,200 squr kilomtrs, mostly within th Kosciusko Ntionl Prk. It compriss svn powr sttions with totl cpcity of 3,756 MW, pumpd storg pumping cpcity of 670 MW, 16 mjor dms with totl storg of 7,000 giglitrs, Austrli s highst township - Cbrmurr km of tunnls nd quducts nd 220 km of 330 kv trnsmission lins. Th gnrting cpcity is sizd to oprt t n nnul cpcity fctor of 17% in ordr bst to intgrt hydro gnrtion with th prdominntly thrml cpcity of th Nw South Wls nd Victorin systms. Th storgs of th Schm r dsignd to surviv criticl drought squnc of nin yrs. On of th mjor distinguishing fturs of th Schm is tht it divrts th hdwtrs of th strly-flowing Snowy Rivr through th Grt Dividing Rng into th low rinfll r of th Murry-Drling rivr systm, providing on vrg, 2,200 giglitrs pr nnum of dditionl irrigtion wtr into thos rivrs. Th output of th Schm is trnsmittd to th NSW nd Victorin systms t 330 kv, dting from This ws th first tim this voltg hd bn usd in Austrli, nd th stblishmnt of th Schm crtd n intrconnction btwn th NSW nd Victorin systms dcds hd of th tim tht intrconnction might othrwis hv bn justifid on conomic grounds. Automtic lod-frquncy control systms wr instlld in th two Stts nd in th Snowy to control powr flows on th intrconnction, nd ssocitd with thos systms, utomtd conomy disptch on th bsis of incrmntl ful costs. Ths utomtd disptch procdurs grtly fcilittd th introduction of conomy intrchng trnsctions btwn th NSW nd Victorin systms Construction of th Schm dpndd criticlly on th succssful intgrtion of th multi-culturl work forc tht cm to it during Austrli s mssiv post-wr migrtion boom. No lss significnt ws th contribution tht th projct md to th Austrlin thos, ngndring s it did sns of confidnc in th bility of Austrlin nginrs to dsign nd construct such projct. SERVING THE OUTBACK In thos dcds tht th industry ws run s sris of Stt-ownd ntrpriss, govrnmnts usd it s n instrumnt of policy to promot rurl lctrifiction, th lods nd rvnus of th mtropolitn customrs bing usd to support finncilly th construction nd oprtion of vst, tnuous rurl lctricl systms. For ll prcticl purposs thr is now no sttld, vn sprsly sttld, prt of Austrli tht dos not hv lctricity supply, most of it s trnsmittd supply from th min ntworks. Th rly yrs of outbck supply wr mrkd by considrbl ingnuity, but th most innovtiv plnt must surly b th 50 Kw plton whl instlld t Thrgomindh, Qunslnd in Built by th locl blcksmith, this plnt ws drivn by hot wtr gushing from bor drilld into th Grt Artsin Bsin which strtchs for 1,750,000 km² ovr Qunslnd, NSW nd th Northrn Trritory. Mny of Austrli s rmot rs r srvd by Singl Wir Erth Rturn (SWER) lins nd thir totl lngth of 186,000 km is now four tims th combind circuit lngth of ll high voltg lins from 132 kv to 500 kv. Convntionl thr phs circuits hv lso plyd thir prt in subjugting th tyrnny of distnc nd s th strting point for th vst SWER systms. Th first of ths ws 260 km 220 kv lin built in 1979 to provid trnsmittd supply to th rmot silvr-ld-zinc mining cntr of Brokn Hill in wstrn NSW. This supply ws providd by linking th city to th north-wstrn xtrmity of th Victorin systm nd by th tmporry ngotitd trnsfr to Victori of prt of th NSW ntitlmnt to powr from th Snowy Schm. Th connction of trnsmittd Pg 9 of 20

10 supply to Brokn Hill llowd th closur of th xpnsiv locl disl sttion which srvd th city nd ltr, th trnsfr to stnd-by duty of th 40 Hz disl sttion oprtd by th mining compnis. This involvd th instlltion (in 1986) of Austrli s only solid stt bck-to-bck frquncy chngr (with rting of 40 MW) in ordr to llow th continud oprtion of th 40Hz supply, usd in prt for rotry convrsion to DC to driv min hoisting motors. This stg of th work rquird th construction of 400 km 220 kv lin within NSW to rinforc th rlir link. Two othr outbck trnsmission projcts r worthy of mntion - th first is th 655 km 220 kv lin to th Estrn Goldfilds of Wstrn Austrli, projct tht wnt into srvic in This lin ws dsignd for n initil lod of 70 MW with th bility to incrs tht rting to 105 MW by th instlltion of shunt cpcitor bnks. Thr sturtd rctor compnstors of 55 MVAr wr instlld, two t th rciving nd, Klgoorli, nd on t mid-lin 12. Mor rcntly, following th introduction of comptitiv mrkt nd th construction of 1200 km nturl gs piplin from th North Wst Shlf to th Estrn Goldfilds, lctricity supply in this r hs bn supplmntd by 100 MW powr sttion built by TrnsAlt using ro-drivtiv gs turbins. This projct prsnts n intrsting tst of th cpcity of th nw trding rgim to ccommodt th concpt of strndd ssts. Th scond outbck projct is th 400 km xtnsion t 132 kv nd 66 kv from Townsvill to th Gulf of Crpntri in th Fr North rgion of Qunslnd. This xtnsion wnt into srvic in 1992 nd hs rplcd th costly disl powr sttions which prviously srvd th r. PLC-controlld sttic VAR compnstors r usd to chiv stbility on systm whos rmot nd is distnt som 1400 km from th Cntrl Qunslnd col fird gnrting sttions nd whr th rmot nd fult currnt is only twic th xpctd pk lod currnt. HIGH VOLTAGE INTERCONNECTIONS By th lt 1950 s ll of th ingrdints wr in plc for rpid xpnsion of high voltg trnsmission throughout Austrli - rpid lod growth, n institutionl frmwork which ggrgtd rgionl lods for plnning purposs, low cost primry nrgy rsourcs long distncs from mjor lod cntrs, nd th orgnistionl structurs to pln, build nd oprt n intgrtd systm of powr sttions nd trnsmission lins. Th mjor lmnts of th high voltg systms wr dtrmind principlly by th nd to connct rmot low-cost nrgy sourcs to lod cntrs, but s notd rlir, th construction of th Snowy Schm hd lso rsultd in th intrconnction of th two lrgst systms, NSW nd Victori in As this intrconnction mturd nd mutul confidnc dvlopd, thr wr svrl nw intrconnction points stblishd btwn th two Stt-ownd systms for mutul dvntg, nd to mintin th trnsfr cpcity of th originl 330 kv tis. This South-Est Systm spnnd 1,400 km from North to South, mostly t 330 kv, lthough ch systm hd intrnl lins oprting t 500 kv. Th nxt mjor intrconnction ws th linking of South Austrli to th xisting South-Est systm. This occurrd in 1990 nd crtd n intrconnction of thr Stt systms with totl cpcity of bout 19,000 MW nd n lctricl lngth btwn xtrmitis of 2,500 km. Th costs of th nw intrconnction wr pportiond btwn th prticipting Stts in proportion to stimtd shrs of bnfit from conomy intrchng. Th nxt mjor stp in intrconnction will b th linking of Qunslnd to th South-Est intrconnction. Thr lrdy xists n lctricl intrconnction 1500 km long from north to south in Qunslnd nd oprting t 275 kv. Initilly it ws blivd tht n HVDC link would b ncssry to connct th Qunslnd systm with th xtndd South-Est systm. Howvr furthr nlyss hv stblishd tht intrconnction will b stbl t 330 kv AC, nd grmnt hs now bn rchd tht work should procd on th construction of high voltg link btwn th Trong Powr Sttion in Qunslnd nd th Armidl 330 kv Trminl in NSW - distnc of 555 km. Th rsulting intrconnction will spn mor thn 5,000 km from north to south, will srv popultion of 16 million nd lods ggrgting som 24,000 MW. This will lv th connction of th islnd Stt of Tsmni to th minlnd s th lst mjor intrconnction likly to b conomiclly sustinbl. Th conomic fsibility of this 220 km submrin cbl hs bn rviwd on numbr of occsions nd will continu to b ssssd - prticulrly in th light of xprinc with th nw trding rgim mrging in Austrli. Pg 10 of 20

11 ELECTRICITY PRICES Brodly spking, th history of lctricity prics in Austrli hs bn on of progrssiv rduction in rl trms s indictd in th grph, Fig. 4. Rl prics ros brifly in th rly ightis during priod of xcptionlly high intrst rts nd mssiv cpitl xpnsion, but othr thn in tht priod, prics hv tndd downwrd in rl trms. 20 REAL ELECTRICITY PRICES - AUSTRALIA c(a) pr kwh Fig 4 Pric movmnt in Rl trms - vrg slling pric - cnts (A) pr kwh Industril vrg prics for 1995, comprd with othr OECD countris r shown in Fig c US pr kwh Jpn Portugl Switzrlnd Grmny Itly Austri Spin Dnmrk Unitd Kingdom Irlnd Finlnd Blgium Frnc Norwy AUSTRALIA Swdn Nw Zlnd Cnd Fig 5 Industril vrg prics, OECD countris 1995 Enrgy Prics nd Txs IEA 1995 Dspit th fvourbl comprtiv position disclosd by ths sttistics, thr mrgd in th rly nintis politicl consnsus on th nd for rform of th industry Pg 11 of 20

12 RESTRUCTURING OF THE INDUSTRY At th urging of th Fdrl Govrnmnt, Austrlin govrnmnts of ll politicl prsusions hv doptd Ntionl Comptition Policy s bing in thir viw, ncssry to nsur Austrli s comptitivnss in intrntionl trd. Th first stps towrds th dvlopmnt of this policy wr tkn in rltion to th lctricity supply industry in 1993, bfor th forml doption of Comptition Policy by th Council of Austrlin Govrnmnts (COAG) in Th policy doptd by COAG in rltion to lctricity supply ws tht sustinbl rductions in pric would bst b chivd by crting comptitiv mrkt modl for th industry in plc of stt-ownd utilitis with nturl monopolis. It ws dcidd tht th vrticlly intgrtd industry in ch stt should b disggrgtd, tht th trnsmission function b vstd in multipl ntwork corportions - with ntionl body, NEMMCO, rsponsibl for mrkt oprtion nd scurity, tht comptitiv mrkt b stblishd btwn gnrtors - including intrstt comptition, tht gnrtors should b brokn into smllr units to hightn comptition nd to prvnt bus of mrkt powr by lrg trdr, tht rtil function b crtd indpndnt of th distribution function, tht rtilrs should b fr to ntr into hdg grmnts with gnrtors, but obligd to mk ll purchss from th pool, tht consumrs should progrssivly hv ccss to th rtilr of thir choic nd tht nw gnrtors b givn right of ccss to th trnsmission ntwork. Howvr, no xplicit provision ws md for th rcovry of strndd costs. Gnrtors nd distributors would b llowd to cquir thir own rtil licncs but would b rquird to oprt th rtil businss t rms lngth from thir othr function. As quit sprt, but rltd mttr, privtistion of th stt-ownd ntrpriss is hppning or mootd. Victori hs virtully compltd th sl of its disggrgtd industry. Its 7,100 MW of gnrting cpcity hs bn split into svn sprt compnis (six of which hv bn sold - mostly to ovrss intrsts); th distribution industry hs bn split fiv wys nd ll sold ovrss, nd thr r in xcss of fiftn sprt rtil licncs. Plns r procding for th sl of th compny owning th trnsmission ssts. Thr r no proposls t this stg for sl of th powr xchng compny which hndls disptching of gnrtors nd ntwork oprtions. This is rmrkbl chng from totl stt ownrship nd complt vrticl intgrtion, into on in which ll ssts r hld privtly nd thr is no vrticl intgrtion othr thn tht brown col production is still crrid on by individul gnrting compnis (on of which buys col from nighbouring gnrtor/col producr). Th Stt with th lrgst instlld cpcity, NSW (12,200 MW), hs split off th trnsmission nd disptch function into sprt corportion, hs compltd th disggrgtion of th gnrting industry into thr corportions, consolidtd twnty fiv distributors into six stt corportions nd issud 22 rtil licncs. Proposls hv bn nnouncd for totl privtistion of th industry, mttr which, t tim of writing, ws bing hotly dbtd by groups within th Govrnmnt nd th trd union movmnt. South Austrli nd Qunslnd hv split th trnsmission nd gnrtion functions. Qunslnd hs split its gnrting ssts (6,900 MW) into thr corportions, hs svn distributors nd thr nw rtil corportions for th ntir Stt. Thr r no proposls for privtistion of th industry, but privt gnrtors r bing givn rights of ccss to th trnsmission ntwork. South Austrli ( 2250 MW) hs not split its gnrting ssts nor hs it xprssd ny intntion to privtis. Th industry continus to b vrticlly intgrtd s stt corportions in Wstrn Austrli nd th Northrn Trritory without prssur to do othrwis, s th distncs of Wstrn Austrli nd th Northrn Trritory from th othr Stts prcluds intrconnction in th forsbl futur. In 1997 th Tsmnin Govrnmnt stblishd two committs; on to rcommnd chngs to nbl withdrwl of Govrnmnt quity from th trnsmission, distribution nd rtil rs, nd th othr to rcommnd progrm to build Bss Strit submrin cbl link s privt projct within four yrs. Trding on th first stg of th Ntionl Elctricity Mrkt (ctully only NSW, Victori nd th Austrlin Cpitl Trritory) bgn on 4th My 1997.Th full Ntionl Mrkt (NSW, Victori, South Austrli, ACT nd Qunslnd) is progrmmd for th first hlf of Th Qunslnd mrkt will b physiclly sprt from tht in th othr Stts until intrconnction occurs in bout 2001 but Qunslnd will oprt its own mrkt ccording to th ntionl ruls from Octobr 1997 to Mrch As will b sn, thr now xists divrsity of structurs within th ovrll frmwork of comptitiv mrkt, nd history will hv to b th objctiv judg of th mrits of ch. For th prsnt, th xcss cpcity on th South-Est intrconnction is rsulting in unsustinbly low pool prics. Th winnrs t prsnt r th lrg industril buyrs rthr thn shrholdrs (including Stt ownrs), nd th outcom of this vst xprimnt will continu to b wtchd with kn intrst. Pg 12 of 20

13 INDUSTRY ORGANISATIONS Th lctricity supply industry in Austrli is wll srvd by two mjor ssocitions for th mutul support of mmbrs. Th first to b stblishd ws th Elctricity Supply Assocition of Austrli, (ESAA) foundd in 1918 s voluntry ssocition comprisd of Stt rgultory uthoritis, nd of th mjor gnrting, trnsmitting nd distributing bodis. It continud in this form until July 1991 whn thr ws r-orgnistion of th Assocition to rcognis th nw mrkt rrngmnts thn mrging. Th ssocition now compriss ll of th Austrlin gnrtion, trnsmission nd distribution compnis - public nd privt - nd is bginning to mbrc th rtil compnis s thy mrg indpndntly into th mrkt. It lso hs ffilit mmbrs in Nw Zlnd, th South Pcific, South Est Asi nd Hong Kong. Th min mphsis of th Assocition hs movd progrssivly from th xchng of informtion btwn Mmbrs towrds dvoccy nd issus mngmnt. Th othr mjor industry body is th Austrlin Ntionl Committ of CIGRE. Th Austrlin Ntionl Committ (ANC) ws stblishd in th rly 1950 s lrgly t th instigtion of Mr E L Mrign, thn of th Stt Elctricity Commission of Victori nd ltr Associt Commissionr of th Snowy Mountins Hydro-lctric Authority. Mr Mrign nd Mr Miln of th Elctricity Trust of South Austrli wr succssful in 1952 in prsuding th ESAA to sponsor th formtion of n Austrlin Ntionl Committ. Mr Mrign drftd th constitution of th nw body, succdd Mr R H Liddlow s Chirmn of th Ntionl Committ nd continud in tht cpcity until Th ANC is rprsntd on ll fiftn Study Committs of CIGRE nd mintins Austrlin Pnls which mirror ch of th Study Committs. Two Rgionl Mtings of CIGRE hv bn orgnisd undr th uspics of th ANC, th first t Sydny, NSW in 1987 nd th scond t th Gold Cost, Qunslnd in Th third Rgionl Mting will b hld t Mlbourn, Victori in Octobr 1997 Elctricity Supply Assocition of Austrli PO Box A2492 Sydny South NSW 2000 Austrlin Ntionl Committ of CIGRE S F Tutton, Scrtry Box 4536 SS, GPO Mlbourn Victori 3001 Pg 13 of 20

14 Som Ky Dts in th Dvlopmnt of Elctricity in Austrli STATE QUEENSLAND 1,727,000 km Dmonstrtion of strt lighting in Brisbn 1883 Govt Printing Offic lit 1888 First public supply in Qunslnd- Gnrl Post Offic lit by Brton nd Whit, (ltr cquird by Brisbn Elctric Supply Co) 1893 Thrgomindh first Qld town to light strts 1897 Elctric trmwy in Brisbn 1904 City Elctric Light Co cquirs Brisbn Elctric Supply Co 1917 Strt lighting in Brisbn 1918 AC supply in Brisbn 1920 Strt lighting xtndd throughout Brisbn 1925 Brisbn City Council uthorisd to gnrt lctricity 1928 BCC Nw Frm PS i /s 1935 Royl Commission into lctricity supply industry 1938 Stt Elctricity Commission (SEC) crtd 1939 City Elc Light Co pln for rurl lctrifiction of South Est Qld pprovd by gov t 1939 SEC proposs intrconnction of BCC nd CEL NEW SOUTH WALES 802,000 km Arc lighting of night construction work on Grdn Plc Sydny 1888 Tmworth first town in Austrli with lctric strt lights (36 kw DC ) 1889 Young first town in Austrli to provid public supply to rsidnts 1890 Elctric Trmwy Rndwick - Wvrly 1899 Ultimo cntrl PS i/s to supply trmwys - 2,550 kw DC 1904 Sydny Municipl PS t Pyrmont in srvic, 1,500 kw 5kV AC. Elc strt lighting rplcs gs 1909 Elctric Light & Powr Supply Corp bgins ops 1912 Rilwy Dpt builds Whit By powr sttion in Sydny for lctric trins 1919 Locl Govrnmnt Act stblishs stt- wid lgisltiv frmwork for lc supply 1926 Sydny trins lctrifid ftr long dfrmnt 1933 DC to AC convrsion bgins in Sydny CBD 1934 Elctricity Advisory Committ formd 1937 Rndll Plmr Tritton of UK rport on orgnistion of lctricity industry in NSW kV intrconnction Sydny - Lithgow i/s MW unit in srvic t Bunnrong PS - lrgst 3000 rpm unit in world VICTORIA 228,000 km Victori Elc Supply Co lights Estrn Mrkts nd Athnum Hll, Mlbourn 1889 Elctric trmwy, Box Hill to Doncstr 1891 Elc strt lighting in Richmond nd Prhrn ; gnrl public supply in Nhill 1894 Strt lighting City of Mlbourn from Spncr St PS 1899 Strt lighting City of Glong 1911 Royl Commission proposs on gnrting body for Mlbourn nd ril lctrifiction 1917 Brown Col Advisory Ctt proposs const of Brown Col fird PS in Ltrob Vlly 1918 Nwport Rly PS i/s 12,500 kw 25Hz for suburbn ril systm 1919 Const uthorisd for 50MW Brown Col fird PS t Yllourn & 132 kv lin to Mlbourn 1921 Stt Elctricity Commission crtd kV lin from Glong to Wrnmbool i/s 190 km 1924 Yllourn PS 50 MW i/s 132 kv stl-towr lin to Mlbourn i/s 160 km 1926 Rubicon hydro PS nd 66kV lin to Mlbourn i/s 100km Powr compnis in Mlbourn nd Glong cquird by SECV TASMANIA 68,000 km Mt Bischof Tin Mining Co Hydro PS i/s 1889 Wvrly Wooln Mill PS i/s - Luncston 1893 Elctric Trmwy in Hobrt 1895 Luncston City hydro PS i/s 60kW DC 300kW AC 1898 Hobrt lc supply from Gs Co PS -52 kw producr -gs fird 90Hz singl phs supply 1909 Complx Ors Co uthorisd to bgin Grt Lks Hydro-lctric Schm 1910 Hobrt frquncy chngd to 50Hz 1914 Mt Lyll Mining Co PS i/s - 4,800 kw 6.6 kv 1914 HydroElctric Dpt formd to complt Grt Lks Schm - constructd by "dylbour" 1916 Wddmn PS 6,800 kw 88 kv stl towr lin to Hobrt i/s 100km Supply to Elctrolytic Zinc Co nd to Austrlin Commonwlth Crbid Co Extnsion of hydro gnrtd supply to municipl distributors kV lin i/s Wddmn to Luncston 95 km 1928 HydroElctric Dpt bgins cquisition of distributors 1930 HydroElctric Commission formd, rsponsibl for ntir lctricity industry in Tsmni 1934 Shnnon PS i/s 1938 Trrlh PS & 110 kv lins i/s Trrlh-Hobrt 93km " - Rosbry 117km Pg 14 of 20

15 Q u n s l n d N w S o u t h W l s CEL & BCC intrconnctd t 33 kv 1944 Criticl col shortgs 1945 SEC cquirs grtr powrs - proposs formtion of rgionl bords kV lin Brisbn - Toowoomb 1952 Post wr powr shortgs. SEC givn grtr powrs of dirction kv stl towr lin Cirns to Innisfil 1953 First Qld tril of SWER lin 1958 HV Tst Lb t Qunslnd Univrsity kV lin Sydny - Nwcstl kv lin Port Kmbl - Burrinjuck 1946 Elctrity Authority crtd - Rurl Subsidy Schm bgins Post-wr powr shortgs 1950 Elctricity Commission (EC) rsponsibl for gnrtion nd bulk supply Thr mtropolitn PwrStns i/s Pckg powr stns i/s 1954 EC bgins col xplortion Colfilds Pwr Stns i/s t Tllwrr, Wngi, Wllrwng 1957 EC cquirs first col min kV lin i/s Snowy - Yss linking NSW nd Victorin powr systms 1960 Mrz McLlln submit rport on industry - propos mjor rstructuring 1963 SEAQ cquirs BCC powr stns 1966 Swnbnk PS i/s 1964 Cllid PS i/s 1968 Collinsvill PS i/s 1971 Col rsrvs st sid for lctricity gnrtion 1972 Contrct signd with Comlco for futur supply to luminium smltr 1976 Gldston PS i/s 1977 Industry rorgnisd - North & South gnrting bords nd sprt distribution bodis kv lins from Snowy to Sydny km Pit-top Pwr Stns i/s t Vls Point & Munmorh - -2,275 MW totl - col from EC s nd othr tid mins kv systm xpndd to circuit lngth of 3,065 km 1970 Supply to Alcn luminium smltr t Kurri Kurri Liddll PS i/s 4x500MW units col from djcnt opn-cut mins, mnmd lk for condnsr cooling MW unit i/s Vls Pt PS kv lin i/s Brokn Hill to Rd Cliffs (on Victorin systm) 1981 Comlco Aluminium Smltr i/s 1982 Industry rorgnisd - QEC s sol plnning, gnrting, dircting body 1984 Wivnho Pump Storg PS i/s Trong PS i/s 4 x 350 MW 1985 Elctrifiction of col hulg in Cntrl Qunslnd - rurl lctrifiction virtully complt Cllid B PS i/s 2 x 350 MW Stnwll PS i/s 4 x 350 MW 1995 Trnsmission nd gnrtion functions sprtd nd corportisd 1997 Gnrtion split four wys nd 3 rtilrs crtd MW unit i/s t Wllrwng x 660 MW units i/s t Erring kV lin i/s Erring-Kmps Crk Byswtr PS i/s - 4x 660 MW Mt Pipr PS i/s - 2x660MW 1995 Industry r-orgnisd.. Trnsmission & gnrtion functions sprtd in prprtion for comptitiv Ntionl Elctricity Mrkt 1996 Gnrtion split thr wys, distribution bodis rducd from 25 to 6, distribution nd rtil functions sprtd 1997 Totl industry proposd to b privtisd nd sold V i c t o r i T s m n i Kiw Hydrolctric Schm- 184 MW kv trnsmission Kiw to Mlbourn kv trnsmission Yllourn to Mlbourn 1958 Morwll brown col briqutt fctory i/s 60 MW cognrtion kv trnsmission Ddrng to Snowy linking NSW nd Victorin powr systms 1940 Uniform rtil triffs throughout Tsmni 1948 Contrct with Austrlin Aluminium Production Commission for supply to smltr t Bll By 1951 Butlrs Gorg PS i/s 1953 Tungtinh PS i/s 1955 Trvllyn PS i/s 1957 Wytinh PS i/s x200 MW units in srvic t Hzlwood brown col fird powr sttion kv trnsmission Hzlwood to Mlbourn 1970 Elctrifiction of Victori virtully complt x 350 MW units i/s Yllourn W PS 1979 Jrlng gs turbins i/s 4x 56.5 MW Construction work in progrss on 5 sprt powr sttion sits kv trnsmission lins i/s Wddmn - Burni nd Lipooth - Hobrt 1963 Rtioning for svn months du to drought (lstd from 1958 to 1968) Potin PS i/s 5 x 50 MW - sttic hd of 832 m from Grt Lks to Midlnd Plin 1967 Cloud sding bgins. Rrioning for 12 months -storgs to 14.6% of FSL Mrsy Forth Schm i/s 308 MW Bll By oil-fird PS i/s, th only thrml sttion in Ts - du to drought 1978 Gordon PS i/s 288MW - hd storg formd by flooding Lk Pddr nd dmming Gordon Rivr, crting lrgst storg in Austrli 1980 Nwport gs fird PS i/s 1x500 MW 1980 Jrlng gs turbins i/s 3x80 MW Yllourn W PS i/s 2x375 MW Loy Yng A PS i/s 4x500 MW 1992 Vrticlly intgrtd industry split into gnrtion, trnsmission nd distribution functions Loy Yng B PS i/s 2x500MW Gnrtion split into 7 bodis, 6 of which hv bn sold. Distribution split into 5 groups ll of which hv bn sold 1982 Gordon Stg 2 hydro schm doptd by Tsmnin Prlimnt 1983 Construction of Schm stoppd by Fdrl Prlimnt on grounds of World Hritg Consrvtion Pimn Rivr Powr Dvlopmnt i/s -totl cpcity 390 MW 1992 John Buttrs PS i/s 144 MW nmd in honour of th first Gnrl Mngr of th Hydro-Elctric Dprtmnt 1994 Tribut PS i/s 80 MW. Commissioning of this sttion mrkd th finl stg of hydro-lctric dvlopmnt in Tsmni - spnning th pst cntury. Th sttion is nmd in tribut to ll who hv contributd to dvlopmnt of th Tsmnin powr systm Pg 15 of 20

16 Pg 16 of 20 Q u n s l n d N w S o u t h W l s V i c t o r i 2005 th first powr intrconnct btwn to Tsmni is stblishd. T s m n i 2005 th first powr intrconnct btwn to Victori is stblishd.

17 STATE SOUTH AUSTRALIA 984,000 km² WESTERN AUSTRALIA 2,526,000 km² SNOWY MOUNTAINS HYDRO- ELECTRIC SCHEME 3,200 km² in NSW 1883 Adlid Rilwy Sttion pltform lit by lctricity 1885 Adlid Arcd Shopping Cntr nd Hrrisons Flour Mill lit by lctricity 1895 Austrli s first domstic lctric rfrigrtor t Urrbr Hous - 32 volt DC 1897 SA Elctric Light nd Motiv Powr Co uthorisd to provid supply throughout SA 1899 Elctricity supply to Port Adlid from Nil St PS - 150kW DC 1888 Wstrn Austrlin Elctric Light & Powr Co st up by CJ Ott - Govrnmnt Hous lit 1890 Midlnds rilwy yrds lit by lctricity 1891 Lgisltiv Assmbly lit by C J Ott s compny 1892 Locl municipl uthoritis uthorisd to instll or rrng lctricity supply Prth Gs Co uthorisd nd bgins gnrtion for Prth city 1898 Gold mining towns of Coolgrdi nd Klgoorli lit 1899 Elctric trms in Prth run by Prth Elctric Trmwy Co 1884 Survyor Gnrl Adms of NSW proposs divrsion of th strly flowing Snowy Rivr into th wstrn hintrlnd for irrigtion purposs - nothing rsultd 1901 Grnfll St PS i/s to supply city of Adlid 1902 Motor gnrtor sts instlld to llow AC trnsmission to Adlid suburbs 1904 Founding compny sold to Adlid Elctric Supply Compny (AES Co) 1907 Hors-drwn trms in Adlid rplcd by lctric trmwys - powr from AES Co 1911 Trmwy PS i/s 1900 Clrmont Elc Light Co PS i/s (innr suburb of Prth) 1901/2 Northm & Bunbury supplid by Spltt &Wll (locl DC sttions) 1905 Frmntl Municipl Trmwys PS i/s 50 Hz 1912 Prth City Council cquirs Prth Gs Co including DC lctric systm nd powr stns 1912 Stt govt cquirs ssts of Prth Elctric Trmwys Co 1913 Govt dcids to build Est Prth PS to supply trms nd sll in bulk - slcts 40 Hz frquncy 1916 Est Prth PS i/s 4 MW 1923 Concrt nd stl trnsmission lin pol - th Stobi pol - invntd by J C Stobi to limint trmit ttck on woodn trnsmission lin pols 1923 Osborn A Powr Sttion i/s 1925 Grnfll St powr sttion closd down 1922 Grldton PS i/s (DC) 1923 Convrsion of strt lighting in Prth from gs to lctricity compltd 1927 Est Prth PS xtndd MW 1931 Govrnmnt proposs privtistion of lctricity industry - without rsult 1937 Elctricity Advisory Committ st up 1938 Est Prth B PS i/s MW unit ~ 33% of totl cpcity 1938 Royl Commission stblishd to invstigt lctrifiction of South Wst of Stt 1937 Rndll Plmr nd Tritton (UK consultnts) propos 250 MW hydrolctric projct on Snowy Rivr without ny irrigtion divrsion AUSTRALIAN CAPITAL TERRITORY NORTHERN TERRITORY 1,346,000 km² 2,400 km² 1908 Sit of th Ntionl Cpitl of Austrli chosn 1913 Ntionl Cpitl nmd Cnbrr Cnbrr PS i/s 150 kw 1927 Fdrl Prlimnt trnsfrrd to Cnbrr 1929 Supply t 66kV from Burrinjuck hydro-lctric PS in NSW. Cnbrr stm PS closd 1923 Flix Holms uthorisd to gnrt nd supply powr in Drwin - 66 kw 240v DC 1934 Drwin Town Council tks ovr lctricity supply 1937 Alic Springs PS i/s 20 kw 1939 Northrn Trritory Administrtion tks ovr lctricity supply in Drwin Pg 17 of 20

18 SA WA S n o w y S c h m First mjor 66kV trns lin i/s Osborn to Morgn 200 km 1946 Elctricity Trust of South Austrli formd to dvlop rurl supply nd lignit-fulld gnrtion. Assts of AES Co compulsorily cquird 1947 Osborn B PS i/s 1954 Plyford A PS i/s 3 x 30 MW using lignit huld 250 km from Ligh Crk kv trnsmission i/s Port August to Adlid km 1943 Convrsion of 40 to 50Hz dcidd 1946 Stt Elctricity Commission crtd Powr shortgs du to plnt filurs 1948 SEC tks ovr Prth City Gs nd Elctricity undrtking 1951 South Frmntl PS i/s Convrsion of 40 to 50 Hz compltd in customr prmiss 1955 Est Prth PS convrtd from col to oil 1957 Bunbury PS i/s kv lin i/s Bunbury to Prth km 1946 Commonwlth Dpt of Works & Housing nd Post Wr Rconstruction invstigts powr potntil of Snowy Rivr 1947 Commonwlth-Stts Snowy Rivr Committ formd 1949 Committ rcommnds irrigtion /powr projct for Snowy with lctricl output of 2,500 MW 1949 Commonwlth crts Snowy Mountins Hydro-lctric Authority to build Schm. Chif Enginrs ws Sir Willim Hudson First output from Snowy - 80 MW Guthg run-of-rivr PS 1957 Snowy Mountins Council (joint Stts nd Commonwlth) crtd to control nd dirct oprtions Tumut1 PS i/s - ultimt cpcity 4 x 80 MW kV intrconnctions to NSW nd Victori kv trnsmission i/s Port August to Adlid Plyford B PS i/s- 240 MW 1965 Osborn B PS compltd MW 1967 Torrns Islnd PS i/s 1969 Nturl gs pipd 780 km Coopr Bsin to Adlid. Torrns Islnd gs fird - first in Austrli 1973/74 Dry Crk GT PS i/s 156 MW 1975 Torrns Islnd B PS i/s 1979 Snuggry oil fird GT PS i/s 75 MW 1960 Rurl ssistnc schm 1964 Muj PS i/s nd 132 kv lins Muj to Bunbury nd Prth Kwinn oil-fird PS i/s 4x120 MW 1973 Grldton 20 MW GT i/s nd 132 kv lin to Prth km 1973 Country Towns Assistnc Schm bgins 1975 Stt Enrgy Commission rplcs Stt Elctricity Commission 1975 First 330kV lin i/s 1977 Mmorndum signd for North Wst Shlf Nturl Gs 1978 Convrsion of Kwinn PS to col following oil-shock 1961 Tumut 2 PS i/s - ultimt cpcity 4 x 70 MW 1966 Murry 1 PS i/s - ultimt cpcity 10 x 95 MW 1968 Murry 2 PS i/s - ultimt cpcity 4 x 138 MW 1971 Blowring PS i/s - 80 MW 1972 Tumut 3 PS i/s - ultimt cpcity 6 x 250 MW This compltd construction of th Snowy Mountins Hydro-lctric Schm Totl instlld cpcity 3,756 MW 1981 Torrns Islnd B PS compltd MW 1984 Mintro gs fird GT PS i/s 90 MW 1985 Intrconnction Agrmnt with NSW nd Victori 1985/86 Northrn PS i/s 500 MW fulld by lignit from Ligh Crk kv intrconnction to NSW/Victorin systm Elctricity Trust corportisd 1996 Gnrtion function sprtd from ETSA Corportion in prprtion for Ntionl Elctricity Mrkt 1980 Tk-or-py grmnt signd for North Wst Shlf Gs Muj C PS i/s 200MW unit 1984 Muj to Estrn goldfilds 220 kv lin i/s 655 km 1984 First nturl gs to Prth from North Wst Shlf km Convrsion of Kwinn PS units to nturl gs Mungrr nd Pinjr GT PSs i/s - totl of 608 MW 1993 Austrli s first commrcil wind frm i/s 9 x 225 kw 1994 Govrnmnt sprts lctricity nd gs utilitis - Wstrn Powr inugurtd 1995 Agrmnt rchd btwn Commonwlth Govrnmnt nd Stt Govrnmnts of NSW nd Victori to corportis th Snowy Mountins Hydrolctric Authority nd Council in prprtion for trding on th Ntionl Elctricity Mrkt from 1st July Snowy Corportistion Bill withdrwn from NSW Prlimnt ftr dbt on th timing of rviw of wtr mngmnt. Plgud with th Ntionl Enginring Lndmrk (NEL), Informtion Plqu (IP) Intrntionl Historic Civil Enginring Lndmrk (IHCEL) t th Tumut 3 Powr Sttion. A C T 1955 Agrmnt with NSW to provid supplmntry bulk supply in xcss of ACT ntitlmnt undr Snowy Schm kv intrconnction with NSW nd Snowy Schm 1988 ACT Elctricity Authority incorportd within ACT Elctricity nd Wtr Authority NT 1945 Tnnnt Crk PS i/s 40 kw disl 1945 Kthrin PS i/s 1962 Stoks Hill PS i/s t Drwin 15 MW oil fird 1978 Northrn Trritory grntd slf-govrnmnt by Fdrl Govrnmnt 1987 Northrn Trritory Elctricity Commission (NTEC) formd to supply mjor towns in Trritory 1983 Nturl gs pipd from Amdus Bsin to Alic Springs Gs Turbin Powr Sttions commissiond t Alic Springs, Tnnnt Crk, Kthrin, Pin Crk nd Drwin 1987 Powr nd Wtr Authority formd -tks ovr functions of NTEC 1987 Chnnl Islnd Powr Sttion, Drwin i/s. Nturl gs fird 100MW opn cycl, 96 MW combind cycl - Austrli s first CCGT Powr Sttion 1987 Trnsmission lin i/s Drwin - Kthrin 320km t 132 kv Pg 18 of 20

19 2000- SA WA S n o w y 2006 Th stt govrnmnts of Victori nd NSW propos privtistion of this sst which ws subsquntly bndond. S c h m A C T NT Pg 19 of 20

20 ENDNOTES 1 A History of th Elctricity Supply Industry in Qunslnd Mlcolm I Thomis,, 1987, Boolrong Publictions for Qunslnd Elctricity Commission. 2 Powr for th Popl Louis Boyln nd John Mc Ilwrith, Editor Dvid Gldwll for Stt Elctricity Commission WA 3 A History of Austrli Mnning Clrk v4. 4 City of Light In R Lobsy for Pl - Cunninghm County Council Light Yrs Dvid Joss for th Young Historicl Socity. 6 Proc Elc Engrs Assoc of NSW Prsidntil ddrss by ACF Wbbr 9th April Elctricity Austrli 1996 Publishd by Elctricity Supply Assocition of Austrli. 8 Powr dvlopmnt in Austrli A J Gibson - Rport to th Commonwlth Govrnmnt Elctricity Austrli 1996 Elctricity Supply Assocition of Austrli. 10 Ibid 11 Elctricity Supply in NSW - th First Cntury Frnk Brdy to Institution of Enginrs Aust., Sydny nd Byond Division Hritg Committ, 16th Octobr Anlyticl Tchniqus for th Appliction of Sttic VAR W Gringr t l, CIGRE 1986 Sssion Ppr Compnstors to Improv th Cpbility of Long Distnc Trnsmission Systms to Rmot Ars of Austrli 12 Prsonl communiction to C J Joyc NR Whit formr Chirmn of Stt Elctricity 12th Oct 1996 Commission of Victori nd third Chirmn of Austrlin Ntionl Committ of CIGRE. In ddition to th spcific nd-notd itms, th txt dpnds substntilly on th contributions of th following individul contributors from ch Stt nd Trritory. QUEENSLAND VICTORIA TASMANIA SOUTH AUSTRALIA WESTERN AUSTRALIA NORTHERN TERRITORY NEW SOUTH WALES Nil A Glwy AO, formr Commissionr, Qunslnd Elctricity Commission Clm Joyc, formr Dputy Gnrl Mngr, Stt Elctricity Commission of Victori G Nol Krrison, formr Chif Elctricl Enginr, Hydro-Elctric Commission of Tsmni Lon T Syks AM, formr Gnrl Mngr, Elctricity Trust of South Austrli Roy Hys, formr Gnrl Mngr Trnsmission, Wstrn Powr Corportion Own Pk, Chif Excutiv, Powr nd Wtr Authority Frnk Brdy AM, formr Chif Excutiv, Elctricity Commission of Nw South Wls nd Gnrl Editor for th txt. Th Gnrl Editor ccpts rsponsibility for intrprtiv commnt whrvr ppring. This documnt ws prprd by Frnk Brdy for th Austrlin Ntionl Committ of CIGRE for wht ws supposd to hv bn n Intrntionl dictionry. This dictionry nvr vntutd. Rproducd hr with prmission. Pg 20 of 20

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