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State Electricity Commission of Victoria Fifty-Seventh Annual Report

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State Electricity Commission of Victoria Fifty-Seventh Annual Report 1976 VICTORIA STATE ELECTRICITY COMMISSION OF VICTORIA FIFTY-SEVENTH ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 1976 TOGETHER WITH APPENDICES PRESENTED TO PARLIAMENT PURSUANT TO SECTION 82 (b) OF STATE ELECTRICITY COMMISSION ACT No. 6377. By Authon/y: C. H. RlXON, GOVERNMENT PRINTER, ~lELBOURNE. No. 44.-1l818f76.-PRICE $1·20 ,~ ~~~~ SEC STATE ELECTRICITY COMMISSION OF VICTORIA FIFTY SEVENTH REPORT 1975-1976 CONTENTS Page Page The State Electricity Commission of Victoria 5 Brown Coal Development 18 Statement of Commission Objectives 5 Brown Coal Production 18 Summary of Activities 6 Morwell Open Cut 18 Annual Report 7 Yallourn Open Cut 18 Business Result~ 9 Lay Yang Open Cut 18 Major Capital Works 14 Review of Major Activities 19 Newport Power Station 14 Marketing and Distribution 19 Development Program 15 Yallourn Township 22 Yallourn W Power Station 15 New Legislation 22 - Lay Yang Project 15 Scientific Research 22 Dartmouth Hydro-electric Project 15 Publi c Safety and Other Regulatory Responsibilities 22 Transmission & Distribution System 16 Commissioners 23 Electricity Production 17 Personnel and Organisa tion 23 North The Loy Yang project will be the Commission·s largest development yet undertaken. Legislation to authorise the project is now before Parliament. In its Progress Report . the Parliamentary Public Works Committee which conducted a public enquiry has recommended that the Government authorise the Commission to proceed with plann ing. The project will involve the development of an open cut on the Loy Yang Brown Coal field and the construction of a 4000 MW power generating station adjacent to and south of the open cut. together with ancillary works. The first unit is planned for service in 1983 and the project will be completed by 1992. LATROBE VALLEY MAIN COALFIELDS AREA PLAN LEGEND - Boundary of main coal reserves D Areas of marginal coal reserves investigated • Coalfields • Existing open cuts Planned open-cut extensions • Existing power stations D Cities and townships BRIQUETTE Churchill FACTORY ~ W. YD. P S ~ ---::~/.00 ~ .,:>, ~"0 /j ~ ':::-TJ.- 1j L.V.W.&S.B. ~.:o.' lj RESERVOIR ~ SW.YD. ~ HAZEL WOOD P.S. HAZELWOOD COOLING POND YALLOURN STORAGE DAM Newborough 2 3 4 5 2 LOY YANG PROJECT --ARTIST'S IMPRESSION 2 000 MW POWER STATIONS SETTLING POND HIGH LEVEL WATER STORAG 3 4 The State Electricity Commission of Victoria Chairman and General Manager STATEMENT OF COMMISSION OBJECTIVES J C TRETHOWAN For an organisation o continue to progress it must be constantly looking BCom, FASA, MIAA to the future and adapt1ng policies and approaches to meet changmg Circumstances. As part of this process. the Commiss1on in 1972 issued broa objectives and subsequent statements have quantified these Commissioners obtectives. Because of rap1dly changmg circumstances, both the corporate T PSCOTT ObJeCtives and quantified targets have been updated. FAll BROAD OBJECTIVES B J CALLINAN General: Develop as an e1ficient, progressive and innova tive organisaflon, servmg the overall interest of the Victonan community in satisfying its CBE, DSO, MC, BCE, FIEAust, FICE , FR API requirements for electric,ty, br wn coal and brown coal products. Public Responsibility: Co-operate w1th all relevant authorities and act at SIR ROGER DARVALL all times in the public interest. Environment: Ensure tha t environmental factors are identified at the CBE, FASA planning, design, construction and operational phases of every project and hat adequate environmental protect1on measures are Implemented Assistant General Manager (Administration) at each stage. P F MOIR Supply: Improve eff1c1ency and economy 1n the production, transmission and distnbulion functions, cons1stent with required standards of safety, FASA, FCIS reliability and qual1ty of supply to customers. Personnel: Provide satisfying and challenging work and encourage Assistant General Manager (Development) personnel to atta1n a high levnl of teamwork. motivation and performance. JJOHNSON Industrial Relations: roster harmonious relations with personnel, un1ons and s art associations. BSc(Lon), ACGI , FI EAu st, MIEE(UK), MIEEE(USA) Public Relations: ldent1fy the needs and wishes of the public; encourage goodwill by providing considera e and eff,cient service; keep the public Assistant General Manager (Marketing and Distribution) adequately informed of obtectives plans and activities. R G CHAPMAN Planning Develop plans fo r the wise utif,sation of the energy resources available to the State for the supply of electricity and brown coal products. BCE, FIEAust, MICE Marketing: Pursue policies wh1ch encourage the economic and effective use of electricity and brown coal produc sIn satisfying the energy needs Assistant General Manager (Operations) of customers. W DE CAMPO Finance: Make es US(; of f1nancial resources and ensure that adequa e DipEE, FI EAust funds ilre ava fable for both current and capital needs. QUANTIFIED TARGETS TO 1981 Assistant General Manager (Personnel) Targets for attainment m the live year period ending June 1981 have been PM DUNCAN set in seven key <treas covering a wide spectrum of activities. Prog ress FASA, ACIS towards these targets will prov1de a signif1ca1t measure of overall performance. Use of Resources: As over 85% of Victoria's proven energy resources are Secretary n brown coat. 1t IS v11al that wherever practicable and desirable expanded FP CHIPPERFIELD use of this resource be made m meeting the 'Jnergy needs of Victoria BCom, JP mther han other resources tn scarcer upply. Target: To develop plans to increase the proportion of Victorian secondary energy requrrcmen ts provrded by electriCity produced from brown coal Head Office (12 7% fo r 1975/76) Selling Price: lt 1s important that the selling price of electricity be 15 Wi!liam Street mamlained at the lowest level cons1stent with other targets. Melbourne 3000 Tat get.· To maintain movements in the average selltng price for electricity in Vtctoria to the greatest degree possible below movements m the Consumer Price Index (refer graph page 6) Efficiency and Productivity: Customers expect the effective employment of all people engaged in the busmess Target· To decrease the ratio of man hours worked per GWh sold to below 2000 To increase the 1atio of customers per employee to above 70 (2588 and 64 for 1975/76). Finance: lt is essentl81 that best use be made of hnanc1al resources Targels.· To ach1eve an excess of opera mg revenue over operating expend it re To achieve a rate of return on net fixed assets of at least 7% per ann11m (6.6% for 1975/76). To m'lintam adequa e liquid reserves The State El ectricity Commission of Victoria is a statutory (545 2M at 30 Ju1e 1976) corporation first constituted under the Electricity Environment: The preservation and enhancement of the environment ·sour 1rm Commissioners' Act 1918. lt now operates under the State Target. To at least comply wi h established environme.,tal standards Electricity Commission Act 1958 No. 6377. lt generates, arrivt:>d RI through the process of qovernmcnt. transmits and distributes electricity throughout Victoria's Industrial Relations: The improvement of ersonnel re lations and so 228 000 square kilometres and supplies directly to 1.19 million reduce Industrial disoutes and the harm caused to customers. customers. In addition, 264 640 customers are supplied by 11 Target. To reduce the t1me lost through industrial disputes to less than municipal authorities which purchase electricity in bulk from one half aay per C'mp toyee pPr year (1.04 days 1975/76) the Commission. The Commiss ion also has a regulatory Safety: The safegu~rd1ng of f>mntoyees ilnd he general public by safe responsibility to ensure the safe use of electric ity. lt employs workinq condil10ns ;Jnd procedures and in the statutory role of formu lilting and apply ng reg11latrons o l.'lectrical appliances and installations arc some 18 600 people. The installed capacity of generators in vital respons1b lites. the Commission's system plus Victoria's share of Snowy and Targets· To reaucc the electr1ca a'ahtles to less than 4 per year per Hume generation totalled 4 745 MW at 30 June 1976 and the million of Victorias poputat1on. To reduce the employee disabling injury main transmission system comprises 500 kV, 330 kV and frequency rate o less than 8 per milt,on man hours worked (6 2 and 18.3 220 kV lines. respecllvely 01 1 CJ75/76) 5 Summary of Activities FINANCIAL: 1975/76 1974/75 Percentage $Million $Million Increase Decrease Total Income 398.2 348.2 +14.4 Balance of Income 0.2 0.5 - 61.0 Fixed Assets-At 30 June Cost 1 876.5 1 740.6 + 7.8 Less Depreciation 609.9 554.4 +10.0 1 266.6 1 186.2 + 6.8 PRODUCTION AND SALES: Maximum Coincident Demand MW 3 389 3 194 + 6.1 (1976 winter compared with 1975 winter) (14/7/76) (11 /8/75) Electricity Generated (including purchases) GWh 18 900 17 676 + 6.9 Electricity Sales (Victoria) GWh 14 907 14 230 + 4.8 Number of Customers at 30 June (excluding those in bu lk supply areas) 000 1 187 1 160 + 2.4 Average use of Electricity by each Household KWh 5 065 4 972 + 1.9 Total use of Electricity per Head of Population (Victoria) KWh 4 000 3 831 + 4.4 Brown Coal Production kt 28 082 26 320 + 6.7 Briquette Production kt 946 1 092 - 13.4 Briquette Sales kt 782 921 - 15. 1 kl - k1l010nnes ELECTRICITY PRICE TREND IN VICTORIA Base year 1965/66 = 1oo __ S.E.C. average salary/wage Average weekly earnings per per week employed male unit (Victoria) Consumer price index ___ Average price of electricity (Melbourne) per kWh- all supplies 340 / 310 --280 -- -------- ~ -- 250 ~ ---------- -- 130 6 1966 '67 '68 '69 '70 '71 '72 '73 '74 '75 '76 Annual Report The Hon. J C M BALFOUR MP 2 Some old stations are currently being reactivated to reduce energy Minister for Fuel and Power, Melbourne deficiencies at an additional cost of $12M a year.
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