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Snowy Hydro Acquires Lumo Energy! RED50403-C in This Edition

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Snowy Hydro Acquires Lumo Energy! RED50403-C in This Edition November 2014 RED IS GREEN & GOLD Snowy Hydro acquires Lumo Energy! RED50403-C In this edition: Red Energy gives New South Wales, the power to choose an electricity That means the community and economy benefit from keeping Aussie jobs retailer that is 100% Australian. here, and our customers benefit by having locally based, award-winning Snowy Hydro acquires Lumo Energy service and great value electricity. Not only are we 100% owned by the mighty Snowy Hydro, we’re based Farewell winter, hello summer: the forecast right here in Australia. You have the power to switch to an electricity retailer that is 100% Aussie. Snowy Ride 2014 raises over of $250,000 Spiritual connection to 2014 flushing flows Call 131 806 Recap of successful 65th Reunion Weekend redenergy.com.au ISSUE 27 Lumo Energy acquisition helps Snowy reach major milestone... CEO, Paul Broad, fills us in on exciting developments for Snowy Hydro of late as well as outlining some key events in the Snowy Mountains... In September, Snowy Hydro achieved a major in Victoria, South Australia, NSW and Queensland. milestone in our proud and successful history, Lumo consistently demonstrates outstanding results becoming the fourth pillar in the National Electricity in customer satisfaction and like Red Energy, they Market with the goal of securing our long term have won multiple customer service awards. We are future. excited to have Lumo join the team. In a deal worth $605 million, Snowy Hydro has This acquisition marked a very significant moment acquired Infratil’s Australian Energy Market Assets. for Snowy Hydro. We are starting a new chapter This purchase includes energy retailer Lumo Energy, in our iconic history and there are exciting times utility connection service company Direct Connect ahead. We have a great track record of successful and 163MW of peaking generation assets in South acquisitions, including Red Energy and Valley Power, Australia and NSW. and the addition of Lumo to our portfolio is an ideal fit. This acquisition, combined with our existing Lumo, like our existing Red Energy business, is a portfolio of hydro and gas generation assets and Red very successful energy retailer with an enviable Energy, will underpin our ability to deliver a superior record in product development and customer customer service offering in the retail, wholesale and service. They have achieved strong growth over the commercial energy sectors, and secure our future as last 10 years, and now have over 540,000 customers a stronger and more successful business. Snowy Hydro NEWS 2 | With Snowy Hydro’s retail base now totalling almost the past, present and future of Snowy Hydro, and one million customers across four states, I am proud participate in a panel discussion on the issues facing to say we are now the fourth pillar in the National the Murray Darling Basin and the long term view of Electricity Market, alongside Origin Energy, AGL water in this area. and Energy Australia. This is a win for consumers because it will increase competition right across the Celebrations to mark 65 years since the start eastern states of Australia. Any customer in these of the Snowy Scheme were held in Cooma from states now has the ability to sign up for their energy 17th to 20th October. Organised by the Snowy supply with retailers owned by Snowy Hydro. Scheme Association and supported by Snowy Hydro, the long weekend saw visitors and former While the Lumo acquisition has kept us very busy, Snowy Scheme workers participate in day tours there have been a number of other things happening to the Snowy Scheme regions, the Snowy Scheme at Snowy Hydro, particularly in the Snowy Mountains. Museum in Adaminaby and a reunion dinner, which I was fortunate enough to attend. It was a fantastic The Snowy Hydro Board of Directors spent several weekend, and I acknowledge the outstanding work days visiting Cooma and Tumut in October. Keen of the Snowy Scheme Association, in particular Wally to see progress of asset upgrade works and safety Mills, in making the event such a success. improvements, the Directors toured Tumut 3 Power Station and participated in a ‘safety walk’ with local Snowy Hydro held our annual Former Workers employees. The Board takes the issue of safety very presentation event during the anniversary seriously, as do we all at Snowy Hydro, and they celebrations. I was honoured to spend time with enjoyed the opportunity to experience safety in action some of the men and women who worked on the as our number one priority with employees in the Snowy Scheme during construction and hear their power station. stories. What a wonderful group of people. To remember that they came from all over the world, During their stay in Tumut the Board also played particularly from both sides of post-war Europe, to host to a community dinner to further build join together to take on the challenge of building the relationships and engage with community leaders. iconic Snowy Scheme, is truly amazing. The fondness with which they recall their time building the Scheme Last month I was thrilled to be invited to speak at the is remarkable, as is the enthusiasm with which they Murray Darling Association Annual General Meeting listen to presentations from our people about the and Conference. Although we don’t own the water asset maintenance and upgrades happening today. in the Snowy Scheme, it plays an integral part in I continue to be deeply humbled by their strong our business, and relationships with organisations connection to and love for the Snowy Scheme. like the MDA are very important. I was privileged to address over 150 delegates from around NSW on L-R: Snowy Hydro CEO, Paul Broad, with Murray Darling Association’s CEO, Emma Snowy Scheme Former Workers who attended the recent 65th Reunion Snowy Hydro Bradbury and National Vice President, Rodney Button, at the Murray Darling Update. Association Conference in Tumut. Photo courtesy of the Tumut & Adelong Times. Snowy Hydro NEWS | 3 Farewell winter, Hello summer - The forecast ahead... Winter has come to a close for another year in the Snowy Mountains. Snowy Hydro’s Atmospheric Scientist, Johanna Speirs, reviews the 2014 winter and outlines what is expected this summer... The snow season this past winter was slow to (1460m elevation) near Cabramurra, the deepest start but a series of cold fronts towards the end of snow at this site since 2008. June quickly delivered over a metre of snow to the mountains. The maximum snow depth recorded at The good snow falls in winter 2014 fell on top of Snowy Hydro’s Spencers Creek snow course (1830m a relatively wet catchment, with above average elevation) was 168.5 cm on July 24. This was lower precipitation and runoff in the Scheme through than the maximum last year when a top of 185.9 cm April-June. These wetter than average conditions was recorded on August 26. Both years were below were partly driven by a climate pattern in the Indian the long-term (1954-2013) average maximum snow Ocean known as the Indian Ocean Dipole. During depth of 202.5 cm. Even though maximum snow the beginning of winter, the Indian Ocean Dipole was depth was below last year and below the long- briefly in a negative (wet) phase meaning that warm term average, a deep snowpack persisted well into ocean waters were present in the eastern Indian September. This year Spencers Creek recorded at Ocean near Indonesia and northwestern Australia. least a metre of snow for 92 days compared to only Warm ocean waters increase cloudiness and moist 43 days in 2013. air which can then be transported to southeast Australia and the Snowy Mountains during the Relatively deep snow depths were also observed in passage of westerly cold fronts, causing large snow lower elevation regions this year. The snow storms and rain events. The wet phase of the Indian Ocean through late June and July delivered up to 43.2 cm Dipole was short-lived and returned to a neutral of snow at our snow course site at Three Mile Dam state by September. Snowy Hydro NEWS 4 | Below average precipitation and run-off were and below average rainfall across the northern and subsequently observed in the Scheme over the all- eastern parts of the country. important August-October period, which is when 50% of our annual inflows occur. The Bureau of Meteorology (BoM) have been predicting an increased likelihood of El Niño Looking ahead, the Indian Ocean Dipole is forming this year but so far we haven’t quite crossed expected to remain in a near-average state for into El Niño thresholds. According to the latest El the remainder of 2014 and generally has little Niño outlook issued by the BoM on November 5, influence on Australia’s climate over the warmer current climate patterns are typical of “warmer and months (December-April). The key climate pattern drier weather for parts of eastern Australia” as well influencing weather over the next few months as an “ increase in bushfire risk in the south”. will be the El Niño–Southern Oscillation in the Pacific Ocean. El Niño-like conditions have been Another dry and hot summer will make the good developing this year where warmer waters are snow we observed this past winter soon feel like a dragged eastward across the Pacific Ocean, leading distant memory. to cooler ocean waters around northern Australia The Bureau of Meteorology have been predicting an increased likelihood of El Niño forming this year... Snowy Hydro NEWS | 5 The BoM rainfall and temperature climate outlook This indicates there is a higher likelihood of drier maps show the likelihood, as a percentage, of conditions over summer.
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