power and water corporation annual report2011 A
power and water corporation
ANNUAL REPORT 2011 Y Y OR K AT I ON S A F ET I NTE G R T we value we TEA MW C O MMI T M ENT C O MM UN IC we value SAFETY power and water corporation annual report2011 1
Letter to the shareholder
The Hon Delia Lawrie MLA Treasurer Legislative Assembly of the Northern Territory Darwin NT 0800
Dear Treasurer, On behalf of Power and Water Corporation, it gives us great pleasure to present the Corporation’s annual report for the year ended 30 June 2011, in accordance with the provisions of section 44 of the Government Owned Corporations Act.
Yours sincerely,
Judith King Andrew Macrides Chairman Managing Director 30 September 2011 30 September 2011 we value SAFETY
This report
Purpose Power and Water Corporation’s Annual Report 2010-11 provides a record of the Corporation’s operations and achievements for the 2010-11 financial year. Pursuant to section 44 of the Government Owned Corporations Act, the report informs the Northern Territory Parliament, Territorians and other stakeholders of: • Power and Water’s primary services and responsibilities • significant activities of the year, highlighting major projects, key achievements and outcomes • financial management and performance in compliance with the Corporations Act 2001. Power and Water’s Sustainability Report is included to provide a single source of information on the Corporation’s financial, environmental, economic, workforce and community aspects. The annual report has been compiled according to the Energy Supply Association of Australia’s Code of Sustainable Practice. Intended audience The annual report is tabled in the Northern Territory Legislative Assembly as a reporting mechanism for Power and Water’s shareholding minister and Northern Territory Parliament. It provides a statement of achievement, income and expenditure for the 2010-11 financial year. The annual report also provides we value COMMUNICATION information for others, including the wider public, who have an Engaging in an open, positive and constructive way interest in the provision of water, to obtain better individual and business outcomes. sewerage and electricity services in the Northern Territory. power and water corporation annual report2011 3
Contents
Chairman’s report...... 4
Managing Director’s report...... 5
Highlights of 2010–11...... 6
Outlook for 2011–12...... 7
About us...... 9
Power and Water Corporation...... 9
Indigenous Essential Services...... 10
Corporate structure as at 30 June 2011...... 12
Maps...... 13
Our performance...... 17
Services...... 17
Financial management...... 21
Assets...... 22
Our infrastructure...... 22
Our stakeholders...... 29
Our environment...... 33
Our people...... 42
Our economics...... 46
Financial statements...... 55 we value SAFETY
Chairman’s report On behalf of Power and Water Corporation’s Board of Directors, I am pleased to deliver the 2010-11 Annual Report. Power and Water invests substantially work on the Larrakeyah Outfall Project The Corporation continues to look at in maintaining, upgrading and is substantially under way. opportunities for the introduction of expanding electricity, water and renewable energy and this year three The Board understands that achieving sewerage infrastructure across urban, new solar power stations were built in ongoing financial sustainability will rural and remote areas of the Northern remote communities. continue to be a significant challenge Territory. Aligning revenue with for Power and Water Corporation, but it As one of the Northern Territory’s expenditure and achieving financial remains a priority. biggest businesses, Power and Water sustainability is essential for Power and remains committed to providing Water to remain consistent with the Conservative revenue and expenditure its customers with exceptional Government Owned Corporations Act. management, as well as prudent services through open and honest investment in capital works, is essential Power and Water derives its revenue communications. The Corporation has to achieving long term financial via tariffs and charges and community an active program of engagement with sustainability. During the year the service obligation payments. Revenue stakeholders and community groups. Corporation has strengthened the in 2010-2011 was 752 million compared governance and management of its I would like to thank the Managing to 715.8 million in the previous year. In capital program to closely monitor its Director Andrew Macrides for his steady part this was due to the extraordinary projects. leadership of the business, as well as weather pattern in the Northern Territory. the management team and employees In the short term, expenditure for The Corporation is in the midst of a five- for their continued efforts and response repairs and maintenance costs is year 1.5266 billion utility infrastructure to the challenges of implementing the forecast to increase significantly to investment program, the largest ever capital and investment program. $85.3 million. The Corporation expects undertaken in the Northern Territory. this expenditure to result in improved I thank my colleagues for their This investment program extends service delivery while ensuring a support and contribution as Directors across networks, power stations, water more rigorous approach to internal and for their work on the Board and sewerage services. During 2010-11 labour time recoveries for repairs and Committees. Mr Barry Chambers and a total of $293.5 million was invested in maintenance projects. Mrs Margaret Gibson retired from capital expenditure and $56.2 million the Board this year and I record our for repairs and maintenance. During 2011 the Australian Government appreciation of their contribution. introduced a revised scheme to replace I am pleased to report that during We have been pleased to Renewable Energy Certificates (REC) the year several major projects that welcome Mr Robert Skinner with the Large-scale Renewable are part of this investment program and Mr Steve Margetic Energy Target (LRET) and Small-scale were completed. They include the who have been appointed Renewable Energy Schemes (SRES). This Owen Springs Power Station outside Directors. change will have a major impact on Alice Springs; commissioning of two Power and Water’s operational costs. new generation units and other refurbishment work at Channel Island which will add to the security of the system. Completion of work on the Archer Street Substation and the Casuarina Zone Substation have added capacity and reliability to the system Judith King networks. The raising of the Darwin ChairMAN River Dam wall was completed and
SNAPSHOT : New turbines ready to roll After installation during the wettest Top End wet season on record, the two new 45 megawatt Rolls Royce gas turbines at Channel Island Power Station are scheduled to be in commercial operation later this year. The fast-tracked project needed to overcome many challenges throughout the construction phase, but is now nearing completion and will help meet peak generation requirements for the Top End. The project was initiated in March 2010 and commissioning started in June 2011 with performance testing conducted in September 2011. power and water corporation annual report2011 5
Managing Director’s report Power and Water achieved a number of significant milestones in 2010-11with several multi-million dollar projects coming to fruition. The Corporation has invested in Testing and commissioning of the to increase investment in the quality renewable energy for more than 20 new $23.6 million Archer Substation is and capacity of wastewater recycling years and this year saw a significant step underway. This newly constructed Zone as part of the project. forward with the integration of Uterne, Substation will support the increasing Our continued focus on providing a new 1MW solar system, into the Alice demand for electricity for the Top End good customer service was further Springs electricity grid. This is Australia’s in Palmerston and East Arm Port areas enhanced in mid 2010 with the largest tracking solar power system. and provide distribution of power into integration of the social media channel the new suburbs of Mitchell, Johnston Power and Water assisted in the Twitter to our communication suite. and Zuccoli as well as the expanding development of Uterne as part of its Twitter now provides followers with central business district of Palmerston. commitment to the Alice Solar City regular details of service interruptions program and signed an agreement to In the Top End, work to close the and planned works within the Power purchase the power it produces for the Larrakeyah wastewater outfall and Water network. next 20 years. continued. Additional flow from Power and Water also continued to Larrakeyah and parts of Darwin’s Construction started in Ti Tree on invest heavily in its most important central business district will be the first of three new solar power asset in 2010-11, its staff. transferred to the Ludmilla Wastewater stations announced for the remote Treatment Plant and subsequently We now have 16 graduates in the communities of Ti Tree, Kalkarindgi discharged from the ocean outfall at two year engineer graduate program and Alpurrurulam (Lake Nash). A East Point. completing rotations across the wind energy system will also be business in various locations. The installed at Alpurrurulam. Over the next five years, a further program has a proven track-record $90 million will be spent increasing The Ti Tree facility, located around of retention with most graduates capacity and treatment quality at 200km north of Alice Springs, will continuing to work within Power and sewage treatment plants across the generate around 550 million watt hours Water after completion. Northern Territory. each year. Over the three communities, In addition to this, we welcomed 21 a total of one million watts of solar Operationally, the Corporation was new Territorian apprentices to the team panels are being installed, meaning challenged by a record wet season (through Group Training NT), bringing that more than 80 per cent of electricity (more than 3m of recorded rainfall) in the total number of apprentices within used during the day by the residents in the Top End, culminating in Cyclone Power and Water to 79. these communities will be supplied by Carlos in February 2011. Our staff did the sun. a tremendous job across the board Power and Water continues to place in keeping our power, water and a strong emphasis on safety culture Our Generation Investment Plan sewerage infrastructure operating and with the message of ‘zero harm’ made significant progress this keeping customers informed. Customer weaved into all facets of our year with a number of new units feedback reflected their efforts with operations. This includes our staff, installed in readiness for the next overwhelmingly positive feedback contractors and all stakeholders that peak demand season: during and following the event. make up Power and Water Corporation. • Commissioning of the Owen Springs Several safety campaigns were Work to increase water retention at Power Station in Central Australia initiated during the 2010-11 financial the Darwin River Dam by 20 per cent is now underway with three new year as well as additional training was completed, however demand 10.9MW engines being connected to courses for our people. the Alice Springs grid via a new 66kV projections show further work to network; increase water retention in the Darwin I would like to take this opportunity to acknowledge and thank all staff • Two new 45MW Rolls Royce turbines region will be required in the future. for their contribution over the were installed at Channel Island Alice Springs benefited from a past financial year in the Power Station in near-record time strategic campaign to reduce water effective delivery of Power from contract to start-up; consumption and increase recycling and Water’s services 24 initiatives under the recently launched • A third turbine is scheduled for hours-a-day, seven days Alice Water Smart Plan. Alice Springs installation at Weddell Power a week. Station in 2012. has a finite water supply therefore projects such as these are critical to the These are new highly efficient gas sustainability of the region. Power and turbines. Water is proud to lead this partnership Our networks team completed a between government and community major upgrade to the Casuarina groups and has committed Zone Substation and construction is underway on the Woolner Zone Andrew Macrides Substation that will replace Snell Street Zone Substation in 2013. Managing Director we value SAFETY
Highlights of 2010–11 • Power and Water is commissioning • Launch of the Alice Water Smart a new, high efficiency, gas-fuelled initiative. A plan that aims to reduce generation power station at Owen Alice Springs’ water use by 1 600 Springs to service Alice Springs. A million litres per year, the equivalent network of 66kV powerlines has to two months average water supply. been built to transport the energy • Completion of Uterne (meaning 25km from Owen Springs Power ‘bright sunny day’ in the local Station to Alice Springs. Arrernte language) the largest solar • Record-breaking rainfall saw the tracking device in Australia. Power new Darwin River Dam spillway and Water signed an agreement to overflow during its first wet season. purchase the power it produces for The spillway was raised 1.3 metres the next 20 years. increasing the dam’s capacity • The soon to be constructed by 20 per cent. Darwin River $17.2 million new gas-fired Dam supplies water for the power station at Wadeye to be Darwin-Palmerston area. supplied with Blacktip gas was • New zone substations were built in announced. Power and Water is Palmerston and Darwin’s rural area embarking on a program to extend to support the growing electricity the use of renewable energy and load. The substations, Archer and convert a number of remote power Marrakai, took two years to build and stations to gas. are part of our ongoing investment • Construction at Ampilatwatja of a program. new 37km powerline to connect to • Power and Water and Rolls Royce the more efficient power station in installed two new 45MW dual fuel the nearby community of Arlparra turbines at Channel Island Power was completed. Station. This installation will be • A power purchase agreement was completed prior to the 2011 wet confirmed and construction started season. The units allow for mid-life in Ti Tree on the first of three new maintenance and refurbishment solar power stations announced of older units at Darwin’s biggest for the remote communities of power station. Ti Tree, Kalkarindji and Alpurrurulam. • Power and Water staff joined forces A wind energy system will also be with members of some of the installed at Alpurrurulam. Northern Territory’s most remote • A contract was awarded to start communities under its community tunnelling under Darwin central water planning program. This unique business district (CBD) as part partnership aims to find new water of the project to close the sources and identify water saving Larrakeyah outfall. opportunities.
we value COMMITMENT
Leading by example, continually improving, accountable for our actions and carrying them out with passion and purpose. power and water corporation annual report2011 7
Outlook for 2 011–12
• Construction will start on the new Leanyer Zone Substation to improve security of power supply to Darwin’s northern suburbs. A substation is being built at Woolner to replace the Snell Street Zone Substation and the city zone substation is also being replaced. • The $15 million Alice Water Smart plan will begin to drive smarter, more efficient use of water in homes, businesses, parks and gardens. The plan involves education, audits and infrastructure development to cut water use by 1 600 million litres per year. • Power and Water will install a third gas-powered turbine at Darwin’s second largest power station, Weddell. The project will add 10 per cent to the Top End power supply over the next five years. • The last untreated wastewater release into Darwin Harbour will cease. Closing the Larrakeyah outfall has been a three-year project, which has included doubling the capacity of the Ludmilla Wastewater Treatment Plant and tunnelling new sewers through Darwin CBD to divert flows for treatment.
LEFT: Generation infrastructure at Owen Springs Power Station we value SAFETY
Owen Springs power project The new Owen Springs Power Station construction was completed in November 2010 and is now undergoing a rigorous commissioning program to achieve handover and full commercial operation by the end of 2011. Owen Springs’ three 10.9MW generators have increased generation capacity for the town of Alice Springs and will meet local electricity demand more efficiently. A significant project milestone was completed in June 2011 when the new power station was connected to the upgraded Lovegrove Zone Substation in Alice Springs, via two new 66kV powerlines. As Owen Springs Power Station continues to grow over the next 10 years, it will allow for the gradual retirement of equipment from Ron Goodin Power Station. Dr Jean-Luc Revel, Senior Project Manager South, Generation power and water corporation annual report2011 9
ABOUT US The Corporation provides electricity, water and sewerage services to some 80 000 customers in the Northern Territory across more than 1.3 million square kilometres – nearly one sixth of Australia’s land mass.
POWER AND WATER response. We are a key partner in whole-of-government programs CORPORATION as part of the Energy Infrastructure Our 1 000 staff work in towns and Assurance and Water Infrastructure cities spread from the cyclone and advisory groups. storm-prone tropics of the north to While Power and Water provides the deserts of Central Australia, often electricity, water and sewerage maintaining services in extreme services in the Northern Territory, weather conditions. some services are open to A further 155, relief and full time, competition including: Essential Services Operators are • electricity retail services, contracted in remote Indigenous which are regulated by the communities and supported by Power Utilities Commission and Water’s Remote Operations team. • electricity generation The Northern Territory’s major power Power network services in the stations are primarily gas-fuelled, Northern Territory are provided supplied almost entirely from the under a monopoly. Blacktip gas field off the Northern Territory’s north-west coast. Power and Water is licensed by the Utilities Commission to provide water Drinking water supplies range and sewerage services across the from surface water sources in the Northern Territory. tropics to groundwater sources in Central Australia that are up Power and Water is mindful of the to 10 000 years old. increasingly competitive utilities landscape and works hard to As a government-owned corporation, maintain our position as a leading Power and Water strives to meet the utility business that is valued and electricity, water and sewerage needs respected by the community. of our customers while acknowledging the expectations of our shareholder. The Corporation is working to be financially sustainable with As a provider of essential services, good operational and asset Power and Water plays an integral health, organisationally capable, part in the Northern Territory’s environmentally sustainable counter-disaster structure and and trusted. we value SAFETY
Protecting the health and well-being of ourselves, contractors and the general public to achieve zero harm.
LEFT: Apprentices at work at the Ben Hammond Complex workshop, Darwin we value SAFETY
Indigenous • Ali Curung Essential Services • Angurugu/Umbakumba • Borroloola The Northern Territory’s population and • Gunbalanya infrastructure base is growing rapidly • Daguragu/Kalkarindji with increased demand on our services. Recent government investment in • Elliott remote communities has fuelled • Galiwin’ku even greater demand in challenging • Gapuwiyak environments. • Hermannsburg Our Remote Operations team is rolling • Lajamanu out an extensive Water for Healthy • Maningrida Communities program to ensure the • Milingimbi quality and long-term sustainability of • Nguiu water supplies. • Ngukurr Seventy-two Indigenous communities • Numbulwar and 66 outstations are serviced • Papunya through our not-for-profit subsidiary, • Ramingining Indigenous Essential Services (IES). • Wadeye IES works with government agencies • Yirrkala to improve the capacity and reliability • Yuendumu of services in remote communities Revenue from electricity, water to support the Northern Territory and sewerage services covers and Australian government’s about 20 per cent of the cost of substantial investment in delivering these services, with the infrastructure and housing, balance funded by the Northern particularly in the 20 Northern Territory Government through Territory Growth Towns. The the Department of Housing, Local 20 growth towns identified are: Government and Regional Services.
Sustainable power for remote regions Power and Water has developed an Energy Source Strategy to provide long term reliable and cost efficient power supply to the remote communities we service. A key part of the strategy is to minimise diesel use by substituting it with other cleaner energy sources like solar and gas. Almost 1MW of solar is being built across Ti Tree, Kalkarindji and Alpurrurulam and a new 5MW natural gas power station connected to the gas supply coming onshore from Blacktip will replace the old diesel power station at Wadeye. We are also continually improving the efficiency of our power stations by upgrading to more efficient generators and building regional grids to connect communities to more efficient power stations in neighbouring communities. Recently the Ampilatwatja community was connected to the Arlparra grid and the power station at Ampilatwatja was decommissioned. Megan Jolley, Manager Energy Strategy, Remote Operations power and water corporation annual report2011 11
above: Lajamanu solar dishes we value SAFETY
Corporate structure as at 30 June 2011
BOARD OF DIRECTORS
Judith King Mervyn Davies Andrew Macrides Chair Deputy Chair Managing Director
Linda Mackenzie Michael Hannon Steve Margetic Rob Skinner Director Director Director Director
EXECUTIVE MANAGEMENT COMMITTEE
CORE BUSINESS AREAS
Generation Power Water Remote Retail Networks Services Operations Ian Pratt Rebecca Kardos General Manager Bertram Birk Steve McKenzie Darryl Day General Manager General Manager General Manager General Manager Generate electricity Provide the customer to meet the needs Transmit and Supply water and Provide electricity, interface, billing of customers in distribute electricity manage wastewater water and sewerage and credit control the Northern across the major in the five major services to 72 remote for all electricity, Territory’s major centres of the centres and 13 minor communities and water and cities and towns. Northern Territory, centres of the 66 Homelands and sewerage services. including system Northern Territory. Outstations. control and meter reading.
General Counsel Strategy and Financial Services Employee and Portfolio /Company Corporate Affairs Organisational and Program Gerald White Secretary Services Management Mike Knowles Chief Financial Kelvin Strange General Manager Officer Jim Bamber Paul Plowman General Counsel General Manager General Manager Provide planning Provide general /Company and strategy, accounting, Provide health, Oversee Power and Secretary stakeholder financial reporting, safety, Water’s infrastructure Provide secretarial management, planning and environment, portfolio, capital and services to the communication, analysis and human resources, maintenance Board of Directors legal, risk, gas corporate treasury. information investments. and legal advice to supply regulatory technology and Power and Water. and sustainability facilities support. support.
BUSINESS SUPPORT AREAS
SUBSIDIARY COMPANIES
Indigenous Essential BGP Tenure Darnor Pty Ltd Gasgo Pty Ltd Services Pty Ltd Holdings Pty Ltd power and water corporation annual report2011 13
NT generation, power networks and electricity retail locations
ARAFURA SEA
Melville Bathurst Island Island
NHULUNBUY BERRIMAH CHANNEL ISLAND WEDDELL BATCHELOR ARNHEM HIGHWAY ADELAIDE RIVER ADELAIDE RIVER
KAKADU HIGHWAY TIMOR SEA DALY RIVER PINE CREEK CENTRAL ARNHEM ROAD ALYANGULA Groote Eylandt KATHERINE
GULF OF CARPENTARIA MATARANKA ROPER HIGHWAY
TIMBER CREEK
BORROLOOLA VICTORIA HIGHWAY DALY WATERS
CARPENTARIA HIGHWAY TABLELANDS HIGHWAY TABLELANDS MCARTHUR RIVER
ELLIOTT BUNTINE HIGHWAY CALVERT ROAD
STUART HIGHWAY BARKLY
TABLELAND HIGHWAY
BARKLY HIGHWAY TENNANT CREEK
TANAMI ROAD
DESERT TANAMI
QUEENSLAND
TI-TREE WESTERN AUSTRALIA
SANDOVER HIGHWAY
PLENTY HIGHWAY KINTORE ROAD ALICE SPRINGS RON GOODIN OWEN SPRINGS BREWER ESTATE SIMPSON KINGS CANYON DESERT Power Station
STUART HIGHWAY – Power and Water Corporation Power Station – Power Purchase Agreement YULARA LASSETER HIGHWAY Retail Agreement Only Transmission Lines Distribution Lines SOUTH AUSTRALIA we value SAFETY
NT water supply and sewerage service areas
ARAFURA SEA
Melville Bathurst Island Island
COX PENINSULA DARWIN ROAD
ARNHEM HIGHWAY BATCHELOR ADELAIDE RIVER
KAKADU HIGHWAY TIMOR SEA PINE CREEK CENTRAL ARNHEM ROAD Groote Eylandt KATHERINE
GULF OF CARPENTARIA MATARANKA ROPER HIGHWAY
TIMBER CREEK LARRIMAH
BORROLOOLA VICTORIA HIGHWAY DALY WATERS
CARPENTARIA HIGHWAY TABLELANDS HIGHWAY TABLELANDS
NEWCASTLE WATERS ELLIOTT
BUNTINE HIGHWAY CALVERT ROAD
STUART HIGHWAY
BARKLY HIGHWAY TENNANT CREEK
TANAMITANAMI ROAD
DESERT ROAD TANAMI
QUEENSLAND
TI-TREE WESTERN AUSTRALIA
SANDOVER HIGHWAY
PLENTY HIGHWAY KINTORE ROAD
ALICE SPRINGS
SIMPSON KINGS CANYON DESERT Water Supply Licence Area STUART HIGHWAY Water Supply Licence Area (Restricted Services Area)
YULARA LASSETER HIGHWAY Water Supply and Sewerage Service Licence Area Major Urban Minor Urban SOUTH AUSTRALIA power and water corporation annual report2011 15
Indigenous communities power, water supply and sewerage services
Bathurst Island Minjilang ARAFURA SEA Croker Island Pirlangimpi Milikapita Garden point Snake Bay Warruwi Goulburn Island Milingimbi Galiwinku Elcho Island Gunyangara Melville Nguiu Maningrida Ski Beach / Marngarr Island Bathurts Island Gunbalanya Oenpelli NHULUNBUY Yathalamarra Ngangalala
Belyuen DARWIN JABIRU Ramingining Yirrkala Delisaville Gapuwiyak Acacia Larrakia Lake Evella BATCHELOR Acacia Gap ADELAIDE Weemol Groote RIVER Kybrook Farm Milyakburra Eylandt Nauiyu Bickerton TIMOR SEA Daly River PINE CREEK Gulin Gulin Bulman Umbakumba Wudapuli Kybrook Farm George Camp Peppimenarti Cooperfield Creek Nama Angurugu Manyalluk Numbulwar Rittarangu Rose River Wadeye KATHERINE Eva Valley Urapunga Groote island Port Keats Rockhole Nganmaryanga Beswick Binjari Barunga Palumpa Ngukurr GULF OF CARPENTARIA MATARANKA Jilkminggan Roper River Duck creek
Miniyeri TIMBER CREEK LARRIMAH Hodgson Downs Wandangula KUNUNURRA Gilwi Gudabijin DALY WATERS Bulla VICTORIA RIVER DOWNS Borroloola Yarralin TOP SPRINGS Amanbidji DUNMARRA Mungoobada MCARTHUR RIVER Robinson River Bundidee Pigeon Hole Daguragu NEWCASTLE WATERS MISTAKE CREEK Wattie Creek Marlinja WOLLOGORANG ELLIOTT Kalkarindji Wave Hill ANTHONY LAGOON INVERWAY RENNER SPRINGS
Lajamanu BARKLY Hooker Creek TABLELAND
THREE WAYS TENNANT CREEK CAMOOWEAL TANAMI Wutunugurra AVON DOWNS Mungkarta Epenera McLaren Creek Orwaitilla Warrabri Cancer Creek Ali-Curung Imangara Willowra Murray Downs Alpurrurulam Lake Nash DESERT Tara Neutral Junction TANAMI Ampilatwatja Nturiya Amaroo Ti-Tree Station
QUEENSLAND TI-TREE Arlparra TOBERMOREY
WESTERN AUSTRALIA Yuendumu Yuelamu Mount Allen Pmara Jutunta Ti-Tree / Six Mile Nyirripi Engawala Waite Creek Laramba Alcoota Napperby Amunturangu Papunya Atitjere Mount liebig Harts Range
Iwupataka Walangkura Jay Creek ALICE SPRINGS Kintore Ntaria Amoonguna Hermannsburg SIMPSON Santa Teresa DESERT KINGS CANYON Areyonga Uranda Wallace Rockhole
Titjikala Kaltukatjara Maryvale Docler River CURTIN Power Station YULARA SPRINGS Trasmitted Power Supply Imanpa Apayula Finke Sewerage Services KULGERA (These centres receive their Electricity MULGA PARK by line from adjacent centres.) SOUTH AUSTRALIA we value INTEGRITY
we value TEAMWORK
Working together for a common purpose; achieving our goals in a supportive, respectful and enthusiastic manner. power and water corporation annual report2011 17
Our performance
Services The Corporation’s current five-year $1.526 billion infrastructure investment Power and Water program extends across its networks, works to provide power stations, water and sewerage increasingly reliable services. electricity, water and The Utilities Commission sets standards for electricity reliability, sewerage services to quality and customer service in its customers. accordance with the Electricity Standards of Australia Service Code. The Northern Territory Government sets standards for water and sewerage services. Power and Water sets its own key performance indicator target for customer service and supply reliability.
left: Crews conducting repairs after cyclone carlos
Cyclone Carlos Tropical Cyclone Carlos arrived in Darwin on Tuesday 15 February 2011, cutting electricity supply to about 8 000 customers and flooding the sewer systems with stormwater. Although Tropical Cyclone Carlos was only a Category 1 cyclone, Darwin received more than 700 millimetres of rain in three days and hundreds of trees and branches fell onto powerlines. The call centre was stepped up to 24-hour operation, taking an average 2 000 calls a day from customers for the duration of the cyclone. Up to 100 Power and Water staff worked in the field at any one time, including relief crews from Alice Springs and Katherine. Some areas of the Top End were inaccessible due to flooding and the extent of the damage to infrastructure made it difficult to provide customers with restoration times, however most customers were very understanding. Rachael Garrigan, Customer Service Coordinator, Retail we value INTEGRITY
Service key performance indicators (KPIs) Objective Measure 2010-11 2010-11 Comments Target Result Drive improved SAIDI1 Networks Duration of Interruption Index2 asset performance, Darwin < 220 min 355 min In 2010-11 the Top End experienced an balancing both unprecedented wet season with record rainfall commercial and exceeding 3m and increased thunderstorm stakeholder activity over the northern power network. Major perspectives storms between 9 and 12 January affected more than 24 000 customers and the days immediately preceding and following Cyclone Carlos in February contributed to nearly 20% of the overall SAIDI figure. Equipment failure, vegetation and wildlife also caused outages in this region. Katherine < 401 min 256 min Planned construction, animals and equipment failure were the major causes of outages in this region. The transmission network contributed to more than 19% of total SAIDI minutes. Tennant Creek < 411 min 459 min Planned maintenance, electrical storms and wildlife affecting powerlines were the major causes of outages in this region. Alice Springs < 108 min 245 min Alice Springs experienced an unusually wet period during 2010-11. The high levels of precipitation, combined with planned maintenance, were the major causes of outages in this region.
SAIFI3 Networks Frequency of Interruptions Index2 Darwin < 4.2 5.3 Katherine < 9.6 4.5 Tennant Creek < 9.8 11.1 Alice Springs < 2.9 4.0
Average duration unplanned interruption water4 Darwin < 90 min 90 min Alice Springs < 120 min 84 min
1 System Average Interruption Duration Index (SAIDI) for average distribution network reliability performance. 2 All figures are adjusted (Major Event Days are not counted) 3 System Average Interruption Frequency Index (SAIFI): Reflects outcome of Utilities Commission’s (UC) Standards of Service 4 Average duration a customer is without supply of water for the year (minutes). power and water corporation annual report2011 19
Objective Measure 2010-11 2010-11 Comments Target Result Average frequency of unplanned interruptions water5 Darwin <210 46.7 The number of unplanned water outages was the same as the previous year. However, the number Alice Springs <90 193.6 of customers affected by these outages increased by 25%. Location of outages relative to system valves to isolate the outage location has affected the KPI result.
Average duration of sewerage services interruption6 Darwin < 120 min 108 min Alice Springs < 150 min 66 min
Achieve Average call response >= 80% 62% The Call Centre achieved a Grade of Service of high level time7 62% in 2011-12, marginally below the Utilities of customer Commission key performance standard of 63%. and employee satisfaction Average time taken to <= 20 secs 74 secs 142 968 calls were answered in 2010–11, with a answer a call monthly average of 11 914 calls. Customer Satisfaction >= 81% 83% Customer satisfaction, particularly with Index: Residential8 electricity supply, continued to increase this year. This reflects Power and Water’s investment in Customer Satisfaction >= 81% 82% 9 improved services and our commitment to open Index: Non-residential and honest communication with customers. Connections to >= 98% 100% Connections KPI is 99.59% for 2010-11. In existing electricity comparison, KPIs for 2009-10 were 99.45% supply properties and 99.23% in 2008-09. within 24 hours10 Connections to new >= 92% 93% Connections to new subdivisions in major urban subdivisions in major areas were within the service target. urban areas within five working days11 Connections to new >= 95% 85% Increasing development activity stretched these subdivisions in major resources. urban areas where minor extensions or augmentation is required12
5 Frequency customers are without access to the water supply service (per 1000 customers) without 24 hours notice. 6 Average duration a customer is without sewerage services for the year (minutes). 7 Call Response: Percentage of calls answered within 20 seconds reflecting the outcome of the Utilities Commission’s Standards of Service Review to report performance. 8 Percentage of customers that rate their overall satisfaction with Power and Water services as good or better. Covers major centres (including Darwin rural) based on random sample of total customer population. 9 Percentage of customers that rate their overall satisfaction with Power and Water services as good or better. Covers major centres (including Darwin rural) based on random sample of total customer population. 10 Reflects outcome of Utilities Commission’s Standards of Service and Electricity Retailer Incentive Scheme Reviews to revise reporting metrics and establish performance targets from 2012–13 onwards. 11 Percentage of new service connections to an electricity supply within five working days of receipt and verification of certificate of compliance from the contractor. Covers major urban areas. 12 Percentage of customers connected within 26 weeks of receipt of customer contributions in accordance with Power and Water’s Capital Contributions Policy. Covers major urban areas. we value INTEGRITY
Objective Measure 2010-11 2010-11 Comments Target Result Have a safe Lost Time Injuries <= 4 20 Contributing factors for increased LTIs this year workplace (LTIs) include increases in head count, increasing age of workforce, project and maintenance activity LTI Frequency Rate <= 2.1 10.4 and recurrence of previous injuries. The majority of injuries were soft tissue. Initiatives to reduce LTIs include the Safe Spine Program, Safety Stand Downs and Health and Wellbeing Programs.
Develop an Staff Satisfaction >= 81% 70% Employee satisfaction remains high with 70% of achievement Index employees rating their overall satisfaction with oriented Power and Water as six out of 10 or higher and organisational 85% rating the Corporation as a good employer culture that they would recommend to others. Employee satisfaction is broadly comparable to results from other companies in the energy sector and Australian industry. However, the percentage of employees recommending Power and Water as a good employer (85%) exceeds those from the energy sector (67%) and Australian industry generally (60%).
Meet our Emission Performance kg CO2-e per megawatt hours (MWh) sent out environmental and Combined <= 582 613 Actual emissions were 5% higher than the sustainability power stations target of 582 per MWh because of delays in obligations in commissioning new generation, which saw a commercially Power and Water rely on less efficient plant responsible to meet peak loads. fashion Water Demand13 Darwin <= 473 458 Results are annual and published in November 2011 jointly by the Australian Government Alice Springs <= 554 538 National Water Commission and Water Services Association of Australia.
Note: The Territory 2030 Strategy: Power and Water will investigate, model and assess the specific impacts to its financial requirements for capital investment and operational expenditure in attaining the prescribed milestones and targets inherent in this strategy. 13 Water Demand expressed as kilolitres (Kl) per property. power and water corporation annual report2011 21
Financial management
Financial SCI key performance indicator (KPI) Financial KPIs give an insight into Power and Water’s overall return to the Northern Territory and our financial sustainability. A summary of targets and results is provided here, but more detailed analysis can be found in the directors’ reports from page 56.
KPI KPI target KPI result Sustainable return Return on assets 2.7% 1.0% FFO to interest (times) 1.8 times 1.3 times Gearing 57.8% 64.4% Capital expenditure $379.4m $316.3m Cash flow from operating activities $34.5m $18.7m New borrowings $293.0m $293.0m Operating efficiency Adjusted EBITDA $45.6m $0.3m
Note 1: Direct comparisons with data sourced from the financial statements may differ in some cases due to methodological differences and accounting standards. Note 2: Results are unconsolidated and exclude the impairment write-off. we value INTEGRITY
assets
infrastructure: This includes more than 8 000km of powerlines, 2 000km of water mains, Power and Water owns and operates 1 000km of sewer mains and servicing $1 billion worth of infrastructure spread about 80 000 customers. We are also across the 1.3 million square kilometres contracted to maintain more than 22 000 streetlights. of the Northern Territory. Power and Water Corporation
Statistical summary As at 30 June 2011 Units 2006 2007 2008 2009 2010 2011 ELECTRICITY Generation Power and Water Installed Capacity (based on Gross Maximum Capacity) MW 375 379 428 473 473 452 IPP Contracted Capacity (based on Site Rating) MW 64 64 64 57 64 58 Electricity Generated GWh 1,366 1,440 1,475 1,525 1,599 1,582 Electricity Sent Out (incl Purchases from Private Suppliers) GWh 1,725 1,790 1,821 1,868 1,946 1,918 Independent Power Purchases - Electricity Sent Out GWh 395 385 382 385 376 371 Networks Transmission (33kV & above) 132kV Overhead km 340 340 344 344 344 343 66kV Overhead km 314 314 314 314 302# 332 66kV Underground km 17 17 17 17 17 34 33kV Overhead km 56 55 55 55 0 0 Distribution (22/11kV & below) HV Overhead km 2,972 3,062 3,147 3,202 3,237# 3,243 HV Underground km 604 618 627 637 651# 670 LV Overhead km 1,740 1,749 1,774 1,758 1,782# 1,801 LV Underground km 1,671 1,750 1,763 1,781 1,873# 1,936 Sales MWh 1,584,357 1,596,452 1,704,377 1,748,225 1,806,781 1,800,495 No. of Customers (ie. Services) Installations 73,339 73,753 74,097 72,327 74,004 76,603 WATER System Capability ML/day 336 322 322 322 322 322 Production ML 54,797 56,842 57,823 60,707 58,870 52,269 Length of Mains km 2,019 2,090 2,130 2,173 2,146 2,157 Sales ML 49,379 51,481 52,206 53,291 49,083 43,593
## No. of Customers (ie. Services) Meters n/a n/a n/a n/a n/a 42,712 WASTEWATER Total Sewerage Collected ML 19,329 18,897 19,745 19,549 22,131# 26,375 Length of Sewer Mains km 1,014 1,036 1,042 1,083 1,075 1,094 Total Recycled Water Supplied ML 1,983 1,623 1,612 1,854 1,233 737 No. of Customers (ie. Services) Installations 48,123 48,661 51,217 53,661 50,800 51,829 STAFF Male 573 580 601 677 697# 736 Female 213 208 215 242 266# 297 TOTAL PERSONNEL 776 788 816 919 963 1,033
# 2009-10 figures have been re-stated since the publication of the 2009-10 Annual Report.
## Due to changes to the calculation methodology for this statistic, historical data is currently being reviewed for consistency and is not available at the time of publication. power and water corporation annual report2011 23
Indigenous Essential Services
Statistical summary As at 30 June 2011
Units 2006 2007 2008 2009 2010 2011 ELECTRICITY Generation Installed Capacity (including solar) MW 48 51 56 60 69 71 Installed Capacity - Solar MW 0.5 0.7 0.7 0.8 0.8 0.8 Electricity Generated (including solar) GWh 94 95 97 106 112 103 Electricity Generated - Solar GWh 1.0 1.6 1.0 0.8 0.7 0.3 Electricity Sent Out (including solar)# GWh 86 86 89 109 120 110 Purchases from Private Suppliers GWh 7 8 8 8 8 8 Distribution (22/11 kV & Below) HV Overhead km 344 373 349 473 513 579 HV Underground km 1 1 5 5 5 7 LV Overhead km 253 278 278 278 278 325 LV Underground km 1 1 4 3 3 3 SWER All Voltages km 87 87 87 87 87 87 Sales ## MWh 60,019 60,574 63,665 104,501 112,030 112,726 No. of Customers (ie. Services) 7,213 7,373 7,421 7,540 8,116 8,478 Installations WATER Total Sourced Water ML 9,733 9,250 9,846 9,848 9,792 9,002 Length of Mains km 649 649 649 652 654 654* Customers (ie. Services)** No. of Meters n/a n/a n/a n/a n/a 2,168 WASTEWATER Volume of Sewage Treated ML 3,508 3,552 3,835 3,940 3,917 3,601 Length of Sewer Mains km 302 303 303 305 307 303 Volume of Effluent Reused ML ------No. of Customers (ie. Services)** n/a n/a n/a n/a n/a 1,810 Installations
# From 2008-2009, Electricity Sent Out includes electricity sent out to IES communities purchased from Power and Water power grids. This has not been included in previous years.
## From 2008-2009, Electricity Sales includes all prepayment and credit meter sales. Previous years data does not include all prepayment meter sales.
* Estimated from 2010 data. A review is currently underway on length of water mains and data is being moved to a GIS system.
** Due to changes to the calculation methodology for this statistic, historical data is currently being reviewed for consistency and is not available at the time of publication. we value INTEGRITY
Delivering Refocusing repairs The three 10.9MW units will cover and maintenance increasing loads and allow older, our INFrastructure less efficient equipment to be retired Power and Water has a total asset base program from the Ron Goodin Power Station valued at more than $1 billion and has over time. Power and Water’s infrastructure continued to prioritise the repair and investment program – which includes maintenance of this infrastructure. Another 10MW unit will be installed capital works and significant repairs at Katherine Power Station to ensure In 2010-11, the Corporation spent and maintenance – has increased Power and Water can meet the local $56.2 million on repairs and considerably since 2007-08. peak demand if the high voltage maintenance while $85.3 million connection to major power The Corporation has a five-year is budgeted to be spent stations in Darwin are disrupted. capital investment program valued at in 2011-12. $1.5266 billion which will provide better Gas supply and more reliable electricity, water and Increasing sewerage services to our customers. generation capacity More than 90 per cent of the electricity Power and Water generates for Power and Water’s generation Major projects in each of these service Northern Territory customers is investment strategy will meet areas are well underway including: from natural gas. projected domestic and commercial Power supply demand growth with more efficient During 2010-11, Power and Water plant equipment while allowing Building the new Weddell Power sourced 92 per cent of its natural extensive maintenance of existing Station to service customers on the gas from Eni Australia BV’s Blacktip units. Darwin to Katherine interconnected gas field in the Joseph Bonaparte grid, including Palmerston and the • Commissioning the Owen Springs Gulf, which lies about 300km to the rural area. Power Station in Alice Springs. north-west of Darwin. The balance of Power and Water’s supply was acquired • Installing two Rolls Royce 45MW • Building the Woolner Zone from the Palm Valley field. However, turbines to increase capacity at Substation to replace the gas supply from this source will Channel Island Power Station. Snell Street Zone Substation finish in January 2012 as contractual ($43.6 million). The project to install the units, arrangements are due to expire. • Building the new Archer Zone supporting gas and diesel fuel systems Contingency gas supply is available Substation for Palmerston and expanded 132kV substation started from Darwin LNG, although during ($25 million). in mid-2010. 2010–11 there was no need to acquire • New Marrakai Substation in A third unit is to be installed at gas from this source. Darwin’s rural area ($4.3 million). Weddell Power Station will also supply Discussions are underway for further the Darwin to Katherine grid in 2011-12. Water supply an d contingency gas supplies with INPEX. sewerage services This extra capacity means Power In June 2011 the Amadeus Basin to and Water can refurbish older units • Progressing the Darwin Sewer Darwin gas pipeline was sold by its at the Channel Island Power Station Strategy, including closing the owners, the four major Australian while meeting increasing demand for Larrakeyah outfall and increasing the trading banks, to the APA Group. At the electricity in the Top End. capacity of the Ludmilla wastewater same time Power and Water entered treatment plant ($66 million). The Corporation will also carry out into a 25-year gas haulage agreement • Raising the Darwin River Dam wall major maintenance and mid-life with the new owner. to increase water storage capacity by refurbishment on all equipment 20 per cent ($15 million). for the six older units at Channel • Assessments and initial project Island, including associated support works towards securing Darwin’s infrastructure. water for the long term (73.1 million). This will make these units more • Building the new Palmerston- reliable and available, extending Roystonea water main ($8.1 million). their life past 2026. Investment has increased steadily In the southern region, three dual fuel and significantly over the past five high efficiency engines were installed years. Actual capital expenditure at the new Owen Springs Power in 2010-11 was $299.1 million. Station near Alice Springs. power and water corporation annual report2011 25
Under this arrangement gas will FIGURE 1 be hauled from the junction of the capex outlays Bonaparte Gas Pipeline and the 2007/2008 - 2011/2012 Amadeus Gas Pipeline at Ban Ban Springs about 130km from Darwin to FINANCIAL YEAR the power stations in Alice Springs. The 2007-08 2008-09 2009–10 2010–11 2011–12 350.0 gas will also go to power stations at 296.5 293.5 299.9 Pine Creek, Katherine, McArthur River, 300.0 Elliott and Tennant Creek. 250.0 The power stations at Channel Island 199.5 200.0 and Weddell will continue to be 154.6 serviced by this pipeline. 150.0 Power and Water continues to assess 100.0 opportunities to use natural gas 50.0 to replace diesel fuel for electricity generation.
OUTLAYS ($M) OUTLAYS 0 BUDGET The Corporation is targeting gas supply to remote communities and plans to FIGURE 2 construct a gas spur pipeline to a Repairs and maintenance outlays new 5MW gas-fired power station, 2007/2008 - 2011/2012 to be built near Wadeye. This power station will also be FINANCIAL YEAR the primary source of electricity 2007-08 2008-09 2009–10 2010–11 2011–12 supply for the nearby communities 90.0 of Nganmaryanga (Palumpa) and 80.0 85.3 Peppimenarti. 70.0 59.0 56.2 The Corporation is also working 60.0 52.2 to market gas to a range of other 50.0 41.2 potential customers including mining, 40.0 manufacturing and pastoral industries. 30.0
20.0 Increasing network reliability 10.0 The reliability of electricity supply is OUTLAYS ($M) OUTLAYS 0.0 BUDGET measured with indices including: • System Average Interruption Duration Index (SAIDI), a measure of the average minutes each customer is off supply per annum. • System Average Interruption Frequency Index (SAIFI), how many times each customer is off in a year. The Northern Territory is a challenging environment in which to maintain reliable power supply. Cyclones, severe storms and lightning strikes result in the duration of outages (SAIDI) being slightly greater than the national average.
LEFT: Larrakeyah outfall closure drilling under Darwin CBD we value INTEGRITY
Power and Water has been investing In 2010-11 work continued in Darwin to Power and Water holds a licence heavily in the power network system underground powerlines. Completed under the Northern Territory Water Act over the past year and has increased areas have improved network reliability to discharge treated and untreated both staffing levels and training as they are no longer as vulnerable to wastewater to Darwin Harbour, to equip staff to complete repair, wildlife, vegetation and bad weather. Katherine River and Ilparpa Swamp in replacement and upgrading work. Alice Springs. Changeovers to the new underground New testing techniques of thermal network in Rapid Creek and Millner The Corporation continues to improve scanning and insulation resistance were completed in mid-2011. sewerage services, including treatment testing have been introduced upgrades and sewer relining programs to improve maintenance and Sustaining water supply in Darwin and Alice Springs, to meet repair scheduling. and sewerage services increasing loads and comply with environmental regulations. Power and Water’s substation group A major project completed in 2010-11 has progressed the recommendations increased the capacity of Darwin’s Annual asset management plans were of the Mervyn Davies Report of primary drinking water source, Darwin prepared and submitted to the Utilities February 2009, carrying out River Dam, by about 20 per cent. Commission, as required under the extensive testing and maintenance The spillway was reinforced and raised Water Supply and Sewerage Services Act. on all 27 zone substations. by about 1.3 metres to enhance security These plans cover the 18 water supply and 10 sewerage service licence areas A new 11kV switchboard was of supply for the growing Darwin and managed by Power and Water. installed for the Casuarina Palmerston area. Zone Substation in 2010-11. A prolonged wet season caused The Asset Management Investigations resulted in the newly raised dam to spill for Capability Project the first time in February 2011 after recommendations to replace the Power and Water owns more than Cyclone Carlos brought high rainfall Snell Street Zone Substation which $1 billion in plant and equipment to the region. services Darwin’s growing commercial and is investing $1.5266 billion over five and industrial area. This project is Power and Water also continues to years to improve reliability and cater progressing in 2011 with significant plan for the return of Manton Dam for growth in the demand for services. remedial works while the new to service the Darwin region to Improved processes and practices, Woolner Zone Substation is being secure future water supply. constructed on an adjacent site to be better data and information on commissioned in 2013. In 2010-11 new transmission pipelines assets and their condition, enhanced were installed to increase water organisational capabilities and modern New zone substations at Archer, supply capacity for the new information systems are all required to servicing Palmerston and Marrakai Palmerston suburbs of Johnston, meet the challenges ahead. servicing Darwin’s rural area are Zuccoli and Mitchell. under construction. The Corporation established the Capacity of the McMinns water Asset Management Capability (AMC) Design of the new Leanyer Zone pumping stations was substantially project to help meet these challenges Substation, to service Darwin’s increased in 2011, providing increased and provide the systems and tools to northern suburbs, has commenced security of supply to the Darwin region. improve plant operation and network with construction due to start reliability right across Power and Water. in early 2012. For the Central region the commencement of the Alice Water The project is now well advanced A significant proportion of power Smart plan is a way to drive smarter, with a contract awarded to IBM in outages in the Top End are caused by more efficient use of water in homes, September 2009 for Maximo and trees and palms touching or falling businesses, parks and gardens. The plan ESRI suites of software and onto powerlines. involves education, audits implementation services. and infrastructure development Power and Water is increasing its The AMC project includes to cut water use by 1 600 million program of vegetation management implementing off-the-shelf and litres per year. around powerlines in the urban and integrated systems supported by rural areas to reduce outages. Wastewater treatment process redesign, change management The Corporation is improving electrical and training, data improvement Power and Water operates wastewater insulation on its power poles with and a robust technical and service treatment plants in all of the composite fibre cross-arms, longer infrastructure. Northern Territory’s major insulators, vermin guards and flying and minor urban centres. fox covers. power and water corporation annual report2011 27
SNAPSHOT : Alice Water Smart Alice Water Smart is a two year project that aims to preserve Alice Springs’ finite groundwater source and secure the long term sustainability of the town. The Alice Water Smart consortium, led by Power and Water, comprises The Department of Natural Resources, Environment, The Arts and Sports (NRETAS); Arid Lands Environment Centre; Alice Springs Town Council and Tourism NT. The aim is to reduce water consumption by Alice Springs’ residents by 1600 million litres per year, equivalent to two months average water supply. The $15 million Alice Water Smart Plan includes projects like home and business water audits, an expanded rebate scheme, smart irrigation for parks and ovals, improved water management and increased recycling and installation of smart meters Helping Alice Springs to allow homes and businesses to monitor water use. reduce its water use Funding of $7.5 million is being provided under the National Water Security Plan for Cities and Towns, Homes and Businesses a key component of the Australian Government’s long-term Water for the Future initiative. This was matched by Accommodation Power and Water with contributions from consortium members. Parks and Ovals Reuse and Reticulation Smart metering www.alicewatersmart.com.au Alan Whyte, Area Manager Alice Springs and Yulara we value COMMUNICATION power and water corporation annual report2011 29
Our stakeholders Power and Water Corporation’s Customer Charter outlines its commitment to levels of service in every area of the business. We also commit to open and honest communication with our customers.
Our customers Our privacy and information Stay connected handling policy is available online Power and Water are continuing at powerwater.com.au Power and Water has a commitment awareness campaigns with a focus on to assisting customers in times of safety, energy and water efficiency. Records hardship and provides them with support to resume regular payment The website, annual regional management for services supplied. Power and Water show display and retail centres are understands that at times some communication channels that provide and archives consumers may encounter temporary important information for customers. management or ongoing financial hardship due to They offer advice on preparing safely Part 9 of the Information Act relates a number of circumstances including for the storm season, how to save on to Records and Archives Management unemployment or significant reduction power bills and how to save water in and sets out the obligations, standards in income, ill health and/or disability. the tropical dry season and Central and management of records and Power and Water is committed Australian desert. archives with which Power and to assisting customers fairly and Water must comply. appropriately while operating within commercial guidelines. Protecting Power and Water has well established information records management policies and processes in place that achieve Virtual Energy Audit Power and Water is committed to compliance with these provisions. the responsible collection, storage Over 17 600 people viewed the online and use of customer and supplier energy audit at Power and Water’s information in line with the National Keeping in touch website to learn how to save electricity and water in their home or business. Privacy Principles. Power and Water launched Twitter and In compliance with the Privacy an online unplanned outage page for Our Virtual Energy Audit lets customers Act 1988 (Commonwealth) and the 2010-11 wet season. create a virtual model of their home Information Act 2002 (NT), 1 902 and estimates their power bill based Twitter has proven invaluable for on the data they input. enquiries regarding customer and providing real-time information on supplier information were received unplanned outages. It provides the This tool helps customers see what during 2010-11, compared with 1 304 capacity to update customers with contributes to their power bill and enquiries received in 2009-10. There estimated time of restoration or as how it can be reduced. were no requests for changes to electricity or water supply is restored information during the year. to certain areas. Help save the planet! Power and Water has procedures in Our online unplanned outage page Power and Water’s interactive place for accessing and correcting offers scope to give more technical education resource website personal information held by the information about the repair and helpsavetheplanet. com.au provides Corporation under Part 3 of the restoration process. information on simple things school Information Act 2002. The applications students can do to become more can be made in person at any Seeking feedback aware of the environment. Power and Water Retail outlet, by phoning 1800 245 092 or by written Monthly customer surveys indicate This ranges from setting the air application to: that customer satisfaction with Power conditioning to 24 degrees or more, identifying ‘energy vampires’ (also Retail Customer Service Manager and Water is steadily increasing. known as standby power) or turning Power and Water Corporation Power and Water has committed to off the tap while brushing their teeth. GPO Box 1921 ongoing service improvements as well Darwin NT 0801 as open and honest communication [email protected] with customers. Applicants must provide: • Name, address and proof of identity; • Sufficient detail to enable the information sought to be identified.
LEFT: fuel deliveries to gunbalanya we value COMMUNICATION
Melaleuca Awards
Power and Water’s annual Melaleuca Territorians who are re-using, Awards were developed in 2003 to recycling or reducing energy and recognise outstanding achievement water consumption, being innovative in environmental excellence in the in sustainable principles, conserving Northern Territory. Over the past eight resources, promoting climate change years we have recognised and rewarded awareness, reducing greenhouse gas numerous businesses, community emissions and improving business groups, schools and individuals for sustainability are encouraged to being environmental advocates. nominate to win an Award. power and water corporation annual report2011 31
Our communities engines. The fuel complies with Australian, European and United Power and Water is a local business as States standards, is non-toxic and well as a provider of essential services biodegradable. and takes pride in its active community focus. Commercial/Industry: Every year, Power and Water sponsors a Alice Springs Airport range of community events, conducts a Alice Springs Airport is the only number of awareness campaigns and Australian airport with a large-scale provides educational resources. solar energy plant feeding back to Our staff are enthusiastic volunteers, its electricity grid. The initiative, part lending their expertise, time and of the Alice Solar City project, means energy to good causes. the solar system can provide up to 28 per cent of the airport’s average daily 2011 Melaleuca Awards electricity needs.
A local biodiesel manufacturer, Schools: bird-watching blogger and ‘close Girraween Primary School the door’ campaigners were among environmental heroes heralded at the Girraween hosted a Sustainable School 2011 Melaleuca Awards. in Action Field Day in 2010, showcasing everyday sustainable living practices The awards were held at Darwin’s ranging from the school’s bucket George Brown Botanic Gardens in recycling program to the butterfly farm conjunction with the Tropical Garden and identifying and eradicating weeds. Spectacular and Sustainability Fair. C hairman’s Award: The award winners were: Charles Darwin U niversity’s Horticulture Aquaculture Team Community: DesertSMART COOLmob The Chairman’s Award was chosen by Chair of the Power and Water Board Businesses in Alice Springs’ Todd Mall Judith King. The group installed an have been encouraged to keep their underground water catchment system doors closed after COOLmob identified beneath its plant nursery to catch that air conditioning accounted for and re-use excess irrigation water and 50 to 60 per cent of their electricity wet season rain. It has saved 675 000 bill. COOLmob used community- litres of water since it became fully based social marketing techniques to operational late last year. promote the ‘close the door’ campaign to help businesses reduce electricity Environmental Grant: use and save costs. Greening Australia NT
Individual: In addition to the Melaleuca Awards, Chris Watson an environmental grant was awarded to Greening Australia NT, which plans Zoology student, Chris, created the to establish a wetland water recycling Birds Central blog site for residents demonstration facility in Darwin. The of and visitors to Alice Springs. centre will showcase native Top End The content explores conservation, flora and use solar power to reticulate habitat rehabilitation and fauna recovered water. in the arid zone. The popular www. comebirdwatching.blogspot.com The 2011 Melaleuca Awards featured a averages 1 650 readers a month. new photographic competition with the theme of creative ideas on water, Small business: energy or waste-saving. Fryerfuels Pty Ltd left: winners of the Using waste oil from the hospitality 2011 melaleuca awards industry, Fryerfuels produces biodiesel that can be used in most diesel we value COMMUNICATION
It’s show time! Staff walk the wards of public hospitals Power and Water also purchases office in Darwin, Katherine, Tennant Creek, equipment and supplies for our many The annual show in Alice Springs, Alice Springs and Nhulunbuy on locations across the Northern Territory, Tennant Creek, Katherine and Darwin Christmas Eve, sharing Christmas and engages local contractors to carry is a great place for Power and Water to cheer and a hamper of goodies with out electrical and water infrastructure connect with customers. those who can’t spend the festive repairs and maintenance, vegetation Each year we provide drinking water season at home with their families. management and consultancies in and a seat in the shade alongside engineering, design, construction and Staff also pack and distribute gifts at information about power, water market research. the Variety Special Children’s Christmas and sewerage services. Party, which hosts hundreds of special Power and Water provides notice of Local staff volunteer to assist on the needs children and their families in upcoming works through industry show stands in each centre, taking Darwin each year. briefings and advertisement of dozens of enquiries on local issues future tender opportunities 90 days affecting customers. Young Achiever Awards before tenders are released, via the Jacinta Kelly, this year’s winner of the Government Tenders Online website Keeping cool Young Achiever Awards, Science and and the Northern Territory News. With Power and Water’s financial Engineering category, looks set for a This helps local businesses plan and sponsorship, COOLmob has helped bright future in scientific research. ensure that they have the necessary more than 1 200 households identify Jacinta was recognised for her joint resources and capacity to be ways to save on their power and paper “an analysis on free convention competitive when tendering. water bills. flow in building ventilation” which was The group carries out home energy accepted for presentation at the third Business at Sun down audits in Darwin and home water Solar Energy Society Conference. Power and Water’s Retail section audits in Alice Springs. Power and continued the success of the Business Power and Water has sponsored this Water provides a copy of its Green at Sundown events in 2010-11. The award category for a number of years, Guide, Waterwise Garden Guide and events provide an insight into the encouraging young scientists and an energy-saver light bulb to help operational aspects of Power and Water engineers from every field. customers save. and guests gain an understanding of how Power and Water generates power COOLmob works with public Working with whilst learning about our network and benevolent institutions and offers water infrastructure in their respective sustainability talks for schools and businesses regions. Events were held in Alice non-profit organisations to encourage Power and Water’s infrastructure Springs, Katherine and Darwin. responsible use of resources. upgrade and maintenance program is the largest investment in essential Building relationships Developing our j unior services in the Northern Territory’s sports stars history and provides local businesses Power and Water engages with its major customers through quarterly Power and Water joined Tennis with unprecedented opportunities. email blasts, face-to-face meetings NT to support the Regional Throughout the year, Power and across the Northern Territory and Development Program this year, Water has visited and briefed a large scheduled regional visits through offering children in the regions more number of local businesses on the Casuarina, Darwin CBD, Katherine opportunities to try tennis through requirements to deliver this investment and Palmerston. The team handles school and after-school programs. program. major account customer queries and The Power in the Water swim series Power and Water has continued to assists where possible with graphing gives the Northern Territory’s best work with local suppliers, purchasing and trend analysis to help them junior swimmers a chance Northern Territory goods and services understand their consumption as part to challenge themselves across a wherever possible. of their businesses planning. season. Recognition is based on
improvement, putting the focus This includes sourcing electrical on participation and development. equipment, including generators, transformers, insulators and cables, Christmas cheer as well as technologies to provide renewable energy sources. Every year dozens of Power and Water staff put their hands up to hand out For water and sewerage services this Christmas goodies. includes the purchase of pumps, reticulation supplies and filtration chemicals. power and water corporation annual report2011 33
Our environment
The Power and Water Sustainable energy • flat plate, high penetration solar at remote communities of Ti Tree Corporation is increasing Power and Water continues to monitor (324kW), Kalkarindji (402kW) and its commitment to the development of carbon pricing Alpurrurulam (266kW), with wind sustainability in line with proposals for Australia and the energy capacity at Alpurrurulam potential impact for its customers. (45kW) community attitudes and We will study usage in 2012 to assess global scientific concern. the impact of carbon pricing after Electricity generated by private the announcement by the Australian providers, from which Power and Water Government of the ’Clean Energy purchases the accredited renewable Future’ policy. energy, include: SNAPSHOT : A rebate program to help consumers • methane gas generators at the Shoal in older homes to replace electric hot Bay Landfill in Darwin (1.1MW) Ti Tree, water systems with solar hot water • flat plate, tracking solar at Uterne systems (Solar Hot Water Retrofit Power Station, Arumbera, Alice Kalkarindji program) was extended in June 2010 Springs (1MW). and after a high take-up rate. The rebate Power and Water continues to explore helps to strengthen roof structures in ideas with suppliers and developers Alpurrurulam older homes to support installation of of renewable technologies including a solar system. Construction started in May in Ti Tree tidal, bio-fuels, wind, solar thermal and solar photovoltaic. on the first of three new solar power Renewable energy stations announced for the remote A trial of biodiesel at Daly Waters communities of Ti Tree, Kalkarindji Australia’s largest tracking solar power Power Station in 2006 and an and Alpurrurulam. A wind energy station was built in Alice Springs in extensive trial of tidal power in the system will also be installed at 2011, contributing its first electricity Apsley Strait in 1996 was sponsored Alpurrurulam. to Power and Water’s grid during through Charles Darwin University. commissioning in June. The Ti Tree facility located around In December 2009, Northern Territory 200km north of Alice Springs will Uterne Power Station has legislation was introduced to facilitate generate around 550 million watt 3 048 ultra-efficient SunPower geothermal exploration. This may lead hours each year. Over the three mono-crystalline, flat plate solar to the identification and development communities, a total of 1 million panels. Each 318 watt module will of a generation source. watts of solar panels are being be mounted on a custom designed installed. tracker that follows the sun as it Renewable energy crosses over the sky during the To build and operate these three day. The 1MW system can power legislative solar power stations as well as a 288 average Alice Springs homes wind energy system at Alpurrurulam, compliance for a year. Construction of solar Power and Water has signed a power stations in the remote In June 2009 the Australian power purchase agreement with communities of Ti Tree, Kalkarindji Government passed the expanded Epuron Pty Ltd and its subsidiary and Alpurrurulam, including wind Renewable Energy Target (RET) TKLN Solar Pty Ltd. power in Alpurrurulam, started in 2011. legislation to achieve 20 per cent All three sites are scheduled for renewable energy by 2020. This target Power and Water’s renewable energy completion by the end of 2011. set another challenge for Power and portfolio, totalling over 4.15MW of Water and will require of us to acquire renewable energy capacity, includes more renewable energy certificates the following facilities owned and (REC’s) through to 2020 when the operated by Power and Water: target for Power and Water will be • solar demonstration site at about 300GWh. Jilkminggan near Mataranka (17kW) The Australian Government developed • flat plate solar power station at an enhanced Renewable Energy Target Kings Canyon (225kW) (eRET) to divide the RECs system into • amorphous silicone solar power Small-scale Technology Certificates station at Bulman (55kW) (STC) and Large-scale Generation Certificates (LGC). At the same time, • solar concentrator dishes at the solar credits multiplier was the remote communities of reduced from five to three, effective Hermannsburg (192kW), Yuendumu from July 2011. The aim of dividing the (240kW) and Lajamanu (288kW). we value COMMITMENT
RECs system is to clear accumulated Central Australia. The project focuses Rooftop PV rollout RECs created by the high solar credits on energy efficiency, cost-reflective multiplier, while encouraging a higher energy pricing, demand management, A further 500 Northern Territory home level of investment in large-scale encouraging solar hot water owners installed rooftop photovoltaic renewable energy projects. installations and rooftop solar panels. (PV) systems and connected to the Power and Water grid in 2010-11. This Each REC, either STC or LGC, represents Power and Water is particularly is a considerable expansion in rooftop 1MWh of renewable energy generated, interested in the monitoring and PV sales right across the Northern except STCs created by the multiplier. evaluation phase of Alice Springs Territory, which is due to a decrease Power and Water met its 2010 REC Solar City, which will explore customer in the cost and the solar credits obligation to surrender 93 608 RECs, consumption patterns and the legislation of June 2009. which was up from 50 500 in 2009. For drivers for change. We are proud to 2011, the forecast obligation is 93 000 be associated with one of the most By June 2011 there were about 500 LGCs and 236 000 STCs. The targets are successful solar cities in Australia rooftop PV systems connected in based on a calendar year rather than and continue to work with them on Central Australia and 700 in the financial year and these figures are as achieving mutual goals. Top End. Commercial buildings in at 31 December 2010. Alice Springs and a school in Darwin Power and Water has been installed larger systems. The national surplus of small STCs instrumental in developing the is being reviewed by the Regulator, Uterne 1MW solar farm in Alice Rooftop PV now generates enough dramatically increasing the obligations Springs, which is one of the iconic electricity in Alice Springs for it to be for retailers during 2011 and 2012. projects of Alice Solar City. noticeable when cloud passes over the town. Small perturbations on the Power and Water uses a range of Uterne was completed within record daily load curve at the power station sources to meet its obligations time by SunPower Corp and is currently were noticed in April 2010 and found under the RET legislation, including Australia’s largest solar tracking device. to result from cloud reducing the purchasing STCs from customers Uterne provides renewable energy into output from the solar generation. who install solar hot water systems the Alice Springs grid. This could be the first time in Australia in their homes. this effect has been observed on an Solar buyback electricity grid. Alice Solar City Power and Water has had a buyback Power and Water is a founding arrangement for the export on to the consortium member of the Alice electricity network from rooftop solar Solar City program, which explores panels since 2001. ways to increase sustainable living in
below: weddell power station power and water corporation annual report2011 35
Territory To support its Climate Change Policy Table 1 the Northern Territory Government GreenPower established a Green Energy Task Force. Facilities emitting 25 000 Power and Water continues Power and Water is a member of the tonnes or more – 2010-11 GreenPower products for both task force and also supports the work Channel Island 599 tonnes residential and business customers. of the Centre for Renewable Energy at CO2 per MWh Charles Darwin University. This gives customers the opportunity Weddell 575 tonnes to invest in renewable energy as Power CO2 per MWh and Water purchases renewable energy Power Generation certificates on their behalf. Ron Goodin 715 tonnes Generator efficiency an d CO2 per MWh The product is fully accredited by the carbon dioxide emissions Owen Springs 682 tonnes national GreenPower secretariat and (online 2011) CO2 per MWh complies with the requirements of the Power and Water obtained registration Australian Competition and Consumer under the National Greenhouse and Targets are based on forecast Commission. Energy Reporting Scheme and lodged generating unit capacity factors with its first report in October 2009. optimally efficient operation taking Climate change Our Generation business unit into account the planned maintenance program and new plant augmentation. In December 2009 the Northern reported greenhouse gas emissions Delays in commissioning the new Territory Government released its for all facilities that were under efficient plant meant emissions were Climate Change Policy. its operational control during the reporting period. higher than anticipated. Included in the policy are aspirations In 2010-11 the major power stations to reduce the consumption of mineral We take data from this section for emitted an estimated 950 481 tonnes distillate in remote communities, interim results, which are yet to be of carbon dioxide equivalent (CO -e) develop renewable energy sources audited and are due to be reported 2 (613kg per MWh), down from in the Northern Territory, reduce on 30 September 2011. The data is 1 030 120 tonnes in 2009-10 emissions and reduce water provisional and subject to change. (656kg per MWh) and 968 496 consumption. Power and Water is Power and Water’s 2010–11 tonnes in 2008–09 (654kg per MWh). implementing strategies to achieve Statement of Corporate Intent sets these targets. emission performance targets for For 2011-12, Power and Water has set our major power stations. Actual a combined generation efficiency efficiency achieved, aligning with the target of 533kg per MWh (sent out) corresponding National Greenhouse for facilities reported under National and Energy Reporting (NGER) reporting Greenhouse and Energy Reporting requirements are listed in Table 1. System (NGERS).
SNAPSHOT : Weddell Power Station A total of three highly efficient machines will soon operate solely on natural gas from the Weddell site. This adds about 25 per cent to the generation capacity on the Darwin-Katherine power system. The third GE 43 megawatt generator will ensure Weddell Power Station maintains its status as one of the largest electricity generation projects in the Northern Territory in over 20 years. Delivery of the turbine is scheduled for mid 2011 with an expected completion date of mid 2012. GE has already installed two turbines at Weddell Power Station in 2008 and 2009. we value COMMITMENT
This equates to 656 (tonnes per GWh) Remote community power Water and generated, down from 656 in 2009-10. station risk reduction wastewater Industry averages for thermal power initiatives Power and Water is continuing a major generation are: Power and Water operates 59 power review of existing and future drinking • 903 tonnes of CO -e per GWh sent stations fuelled mainly by diesel 2 water supplies for the Darwin region. out overall in remote communities across the Northern Territory. • 944 tonnes of black coal Darwin River Dam and the McMinns and Howard East borefields currently • 1341 tonnes of brown coal Our operating policies and procedures focus on managing the risks associated supply Darwin, Palmerston and the • 551 tonnes of gas with delivering more than 30 million surrounding rural area with water. In Power and Water is better placed litres of diesel fuel by road and sea 2010-11, Power and Water completed than most electricity generators with to the power stations. Essential works to raise the dam wall of respect to greenhouse gas emissions in Services Operators (ESOs) are trained Darwin River Dam to increase major centres because it uses natural in the handling of bulk fuel deliveries. capacity to 320 000Ml. gas to generate electricity. During the wet season many power We hold a 49 100Ml extraction licence stations across the Northern Territory The Owen Springs Power Station, for Darwin River Dam and currently are inaccessible by road. Power and 25km south of Alice Springs, has draw about 35 000Ml of water per Water manages this risk by filling fuel been running a gas turbine that year from the reservoir. A review of the storage facilities to capacity before the was relocated from Ron Goodin sustainable yield of Darwin River Dam wet season and monitoring storage Power Station as part of the site was completed in 2011, indicating that capacity at these sites. commissioning. Three new high- based on current consumption, the efficiency MAN dual fuel generator Power and Water is progressively potential impacts of climate change sets, which have been added to the upgrading fuel storage facilities and projected growth for Darwin, the power station, are in commission across the Northern Territory region’s water supply capacity may phase. This will allow the older and and has completed this work need to be increased within the next less efficient plant at Ron Goodin in the Katherine region. five years. to be gradually phased out. The upgraded power stations Channel Island Power Station uses gas at Galiwin’ku, Maningrida and turbines and a mix of technologies, Gunbalanya include new fuel such as combined-cycle steam storage facilities. below: Rising mains repairs, Alice Springs generation, to achieve efficient We are implementing a strategy to operation. The largest combined-cycle reduce reliance on distillate in remote steam unit, a combined 45MW, was communities, in line with the Northern out of service for scheduled major Territory Government’s Climate Change maintenance in 2010-11 so other less Policy. This includes interconnecting efficient units were used to meet communities within reasonable electricity demand over these months. proximity to each other by a high We installed two new highly efficient voltage transmission powerline and Rolls Royce gas turbines in 2011. These decommissioning the less efficient will increase Channel Island’s overall diesel power stations. For example, efficiency. They provide a highly we are connecting Ampilatwatja to efficient plant that will support Power Arlparra power station and the diesel and Water to achieve a reduction in power station at Ampilatwatja is emissions in line with targets of the being decommissioned. Territory 203019 strategy. Power and Water is also replacing the diesel power station at Wadeye with a new gas fired power station and constructing new solar power stations at Ti Tree, Kalkarindji and Alpurrurulam.
19 Territory 2030 target – “By 2015, reduce greenhouse gas emissions intensity from power generation at the Power and Water Corporation’s Channel Island and Weddell power stations by 10% compared to 2009 levels power and water corporation annual report2011 37
Water resource expansion projects Groundwater supplies at McMinns while meeting higher expectations of typically have long lead times and Howard East borefields provide discharge quality. Over the next five and as part of prudent planning, an additional 6 000Ml to 8 000Ml of years, more than $90 million has been investigations to return Manton Dam water per year for the Darwin region. allocated to increase capacity and to service have started with a tentative This groundwater supply provides a treatment quality at Power and Water’s target of 2016. Power and Water valuable independent source of water sewage treatment facilities across the holds a licence to extract 7 300Ml per as well as some security in the event of Northern Territory. year from Manton Dam, but has not bushfire, cyclone, algal blooms or weed The most significant sewage used it for a number of years due to infestation causing interruptions to treatment project involves the infrastructure constraints and water supply from Darwin River Dam. investment of $66 million to close quality issues, including recreational the Larrakeyah outfall. Other upgrades activities on the dam. Wastewater treatment are underway or planned for Leanyer, Power and Water is also committed Power and Water operates wastewater Sanderson, Palmerston, Katherine and to significant leakage reduction and treatment plants in all the major Alice Springs. customer water demand management urban centres in the Northern Territory. More than three quarters of programs that have the potential to We hold licences under the Northern wastewater in Alice Springs is re-used defer the need to return Manton Dam Territory Water Act to discharge treated for irrigation or aquifer recharge. to service for some time. Planning will and untreated wastewater to Darwin Record high rainfall in 2010 and 2011 continue to ensure sufficient water Harbour, Katherine River and Ilparpa resulted in the need to have licensed resources are reliably available to the Swamp in Alice Springs. regular discharge into Ilparpa Swamp Darwin region. Power and Water is developing a from the Alice Springs ponds. However, Darwin River Dam water is not treated Darwin region-wide sewerage strategy work is underway to expand the Soil and risks to the quality of supply to upgrade all treatment systems to Aquifer Treatment basins to store an include fire in the catchment area, cater for increasing population additional 200Ml to 400Ml of treated aquatic weeds and low water levels. wastewater per annum. The Alice Although the dam fills most years, Water Smart Plan will also deliver a about 65 per cent of available water is further 200Ml of re-use water. lost each year through evaporation. we value COMMITMENT power and water corporation annual report2011 39 LEFT: Lovegrove Zone Substation, Alice Springs
Upgrading Darwin Australian Standard AS1940 and The northern suburbs of Darwin Harbour outfalls Northern Territory environmental have a history of power interruptions legislation to contain oil safely. caused by extensive street-front tree Power and Water will close its only Remedial actions from that program growth. The change from overhead to untreated sewage outfall into Darwin are now largely complete. underground power will significantly Harbour in 2011-12. Sewage from the reduce the need for tree trimming, suburb of Larrakeyah and parts of The new Frances Bay and Archer allowing established trees to add to Darwin’s central business district zone substations have modern oil the visual amenity of the streets. will be transferred to the Ludmilla and water separator facilities in Wastewater Treatment Plant. preparation for the rare event of Powerlines in Darwin’s coastal suburb a failure. Similar technology is of Nightcliff were put underground New sewer mains are being planned for the proposed Leanyer in 2008. The electrical works for constructed through Darwin city to Zone Substation to service Darwin’s Rapid Creek were completed in 2009 divert the sewage from Larrakeyah. new northern suburbs of Lyons and and Millner in June 2010. Property The Ludmilla Wastewater Treatment Muirhead. Our new substations changeovers to the new underground Plant is being upgraded to cater for the in Lovegrove and Owen Springs in supply in Rapid Creek are complete additional treated waste. Over the next Alice Springs use similar technology. with some remaining commercial two financial years work will be carried properties in Millner still to be out to extend the East Point Outfall. Undergrounding completed. We expect that all of the powerlines Power Networks overhead assets in these suburbs will Undergrounding powerlines in be removed by early 2012. Safe oil storage the Top End decreases the risk of About 2 517km or 31 per cent of Power severe storms disrupting power In 2004, Power and Water initiated a and Water’s 8 210km transmission and supply. It also minimises the need review of zone substations across the distribution networks are underground. to manage vegetation and reduces Northern Territory. Zone substations This will increase as the project the visual impact of poles and wires contain large transformers that hold progresses and as newer suburbs such on our landscapes. thousands of litres of oil. The review as Lyons and Muirhead in Darwin and was to ensure compliance with the Bellamack in Palmerston are developed with underground power supply.
New sewers for upgraded services Work to close Darwin’s last untreated wastewater release saw specialist micro-tunnelling commence works under Darwin’s CBD in 2010-11. New sewer mains were laid through the city to divert wastewater from Larrakeyah to the Ludmilla Wastewater Treatment Plant for treatment. The design of significant upgrades to Ludmilla to cater for the increased capacity were carried out over the past year. Construction is expected to be completed during the 2012 dry season. Environmental studies also began into extending the East Point outfall to cater for this expansion. Peter Lockett, Senior Infrastructure Development Engineer, Water Services we value INTEGRITY
Environmental incidents There is an inherent risk of environmental incidents in Power and Water’s business, but comprehensive strategies are in place to achieve our goal of Zero Harm. Using diesel to generate electricity on In line with section 14 of the Waste • The inappropriate disposal of remote coastal communities creates Management and Pollution Control domestic solid waste caused a particular risk as fuel is delivered by Act, we provide notice of any spills blockages in the sewerage systems barge. Power and Water has a program or overflows to our environmental at Nguiu (43Kl) and Galiwin’ku of upgrading fuel storage bunding to regulator, the Environment and (378Kl), resulting in two raw sewage reduce the risk of fuel spills and has Heritage Division of the Department spills. further trained staff to deal with land- of Natural Resources, Environment, • In March 2011 the re-use pond at based spills to prevent any release to The Arts and Sport (NRETAS). We also the Northlakes Recycled Water Plant the environment. consult the Department of Health flooded due to storm water and about sewage overflow management Fuel (hydrocarbon) spill clean-up kits an estimated 4Ml of treated water and clean-up. are located at each remote power entered the storm water drainage station as well as other strategic Incidents deemed to have caused system. locations. Power and Water is fitting or with the potential to cause There were no recorded instances dry break couplings to fuel storage environmental harm are posted on of impact on human health or the tanks to reduce minor spillages around the NRETAS public register. In 2010-11 environment. fuel delivery. Power and Water achieved its goal of zero pollution incidents causing Sewers suffer from occasional dry Fuel spills environmental harm. season blockages and wet season Figure 4 shows the number of reported overflows associated with stormwater. Sewerage fuel and oil spills in the past nine years. Power and Water has a comprehensive Most spills occur during fuel delivery response protocol for sewage system overflows to remote community power stations overflows, with a primary focus on Figure 3 shows the number of reported because of damage to infrastructure or clean-up and disinfection to protect sewer overflows in the Territory in the human error. the health of community members. past nine years, with six sewage spills This year Power and Water managed The Strategic Indigenous Housing recorded in 2010-11. to keep the number of reportable spills Infrastructure Program (SIHIP) is • The Maningrida sewerage system to two. The largest was 3 000 litres evaluating the cost of upgrading was overwhelmed by the record at Yulara Power Station that came existing wastewater facilities in remote wet season and significant flooding from a ruptured fuel line. The diesel communities across the Northern from storm water resulted in several was contained within the generator Territory. Funding from this program overland flows to the ocean. building and cleaned up so that no fuel will upgrade several facilities to meet • Two spills related to infrastructure escaped to the environment. future demands. failure. In July 2010 a leaking sewer At Goulburn Island, 1 500 litres of Incident report in Katherine resulted in an estimated diesel overflowed during a fuel transfer 4Ml of raw sewage discharging to from the barge to tanks at the barge database Tindal Creek. Ongoing creek flows landing. The overflow occurred in the meant that the spill could not be Power and Water maintains a database tank bunded area but the drain valve contained and cleaned up. of all environmental incidents resulting had been left open. There has been a from our work that has been reported • At Yirrkala in June 2011 a power consistent reduction in the number of by staff and external sources. This supply failure led to 150L of raw reportable spills over time, confirming is how we identify and address sewage being discharged to ground the importance of our fuel bunding potential issues. from a sewage pump station. The program and improved staff training. area was fenced off and cleaned up.
Version II power and water corporation annual report2011 41
FIGURE 3 Chemical leaks sewage spills There was one chemical leak during the year. At Channel Island Power Station FINANCIAL YEAR an estimated 40 litres of sulphur 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09–10 10–11 12 hexafluoride (SF6) gas escaped from a damaged high voltage circuit breaker. 10 SF6 is an inert gas and there was no direct environmental impact however 8 it is a potent greenhouse gas and therefore needs to be included in the 6 Power and Water‘s 2010-11 National
4 Greenhouse and Energy Reporting Scheme report. 2 Prosecutions
NUMBER OF SPILLS 0 The Northern Territory’s principal environment protection legislation is FIGURE 4 the Waste Management and Pollution Control Act. hydrocarbon spills Under the Act, Power and Water is subject to enforcement actions such as FINANCIAL YEAR Authorised Officer Directions, Pollution Abatement Notices and prosecutions. 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09–10 10–11 18 No enforcement actions under the Act 16 were taken against Power and Water 14 during the reporting period and none 12 are pending. 10 No prosecutions or actions were 8 taken or are pending against 6 Power and Water under other
4 environmental legislation.
2
NUMBER OF SPILLS 0 we value TEAMWORK
Our people Power and Water employs 1033 people.
The Human Resources Strategy was Apprentice and Katherine reviewed in 2010–11 to reflect changing Outstanding ‘Stage’ Apprentice operational and organisational graduate programs (shared): conditions and ensure priorities Power and Water continues to secure Dale Prime an d Phillip Yates remain the same: its future workforce by employing • ensuring the safety, health and and developing apprentices and Group Training Australia wellbeing of staff and contractors graduates. In 2010-11 we hosted 21 new Today’s Skills Tomorrow’s Leaders: apprentices, bringing the total number • designing and developing our Grant Walker workforce to ensure it is equipped to to 79. maintain our infrastructure now and Apprentices were recognised for their Gipps TAFE Awards in the future outstanding achievement with the Outstanding First Year Apprentice Line • learning and development for new following awards: Worker for 2010: and existing staff Clinton Darr • developing leadership and Group Training Northern Territory Awards Outstanding First Year Apprentice management capability Cable Jointing for 2010: • motivation performance and reward. Alice Springs Callum Smith The Power and Water graduate We continued to embed initiatives Trainee of the Year: from 2009–10 to consolidate the vision Amanda McLean program continued in 2011 with 10 new and values with continuing employee graduates from engineering and and manager forums providing an Darwin science disciplines starting in February. opportunity to hear about the business They joined six graduates who entered and address employee concerns. Stuart Baird Indigenous Apprentice of the second year of the program. the Year: The program is proving to be successful Another key driver of change for the John Anstess and will continue in 2012 with next three years is implementing Outstanding Apprentice Stage 3: graduates also being employed within a new Enterprise Agreement. The Brendan Lee corporate and administrative roles. agreement was finalised in April 2010 and brought a nine per cent pay increase over three years for Power and Water employees. This agreement will see a performance achievement system introduced for all employees below: staff participating in and the design and implementation emerging leaders program of a corporate capability development framework among other initiatives. Leadership and management capability Power and Water continues to develop leadership and management capability through our structured leadership and management development programs. More than 330 employees attended our management development workshops which represents 80 per cent of staff within relevant classification groups participating in a session. power and water corporation annual report2011 43
organisational Vision : culture We aspire to be Since 2009, Power and Water a leading utility Corporation has embarked on a business valued journey to embed a new corporate vision, purpose and values and, in turn, and respected in improve culture amongst staff. The the community. new corporate values and vision were launched as part of Power and Water’s Purpose: Employee Forums that commenced in 2009 and are held twice a year in all of We will focus on the businesses regional offices in the meeting the power, Northern Territory. water and sewerage The Employee Forums are an opportunity for staff to engage needs of our directly with the Managing Director customers whilst and provide feedback on the cultural acknowledging the development within Power and Water. The Forums are highly valued expectations of our by staff and this is demonstrated by shareholders. the excellent attendance numbers and engagement activity during the sessions. Power and Water’s corporate culture is based on shared values, norms and expectations that guide our Our Values team members in terms of how they safety approach their work, interact with each other and interact with customers. Protecting the health and well-being of ourselves, contractors and the general public to achieve zero harm. Power and Water’s staff work within a constructive culture, based around the Integrity following framework: Engendering trust through open, honest and ethical behaviours. • Achievement focussed • Pursue a standard of excellence Communication • Maintain personal integrity Engaging in an open, positive and constructive • Be supportive of others way to obtain better individual and business outcomes. • Cooperate with others Teamwork In addition to the Employee Forums, Working together for a common purpose; achieving our each second year Power and Water goals in a supportive, respectful and enthusiastic manner. conducts an Organisational Culture Survey with staff. The survey provides Commitment the business with an indication of Leading by example, continually improving, accountable for progress towards becoming a more our actions and carrying them out with passion and purpose. constructive and effective organisation. The Vision, Purpose and Values are the pillars of Power and Water’s “Framework for Success”. we value TEAMWORK
Training and Service Essential Services development recognition Operators Power and Water continues to Power and Water recognised a number A total of 155 full time and relief develop employee skills and knowledge of long-serving staff in November Essential Services Operators (ESOs), to ensure staff have the capabilities 2010. One employee reached a 40-year of which almost 40 per cent are to perform their roles and meet milestone, a significant achievement Indigenous, play a key role in keeping operational demands now and indeed. Twelve achieved 30 years electricity and water operating in in the future. of service, 16 reached their 20-year some of the Northern Territory’s most milestone and 27 and 40 employees remote areas, often in harsh and Training specialists work closely with reached 10 and five years of service difficult conditions. The ESOs conduct line management and supervisory respectively. daily, weekly and monthly duties for all staff to identify training requirements essential service disciplines including and gaps in knowledge. Employees water quality testing, diesel generator have an annual performance review Employee servicing and meter reading for retail where we identify training needs satisfaction services in remote communities. and opportunities as part of their Employee satisfaction remains high professional development. ESOs are employed through shire with 70 per cent of employees rating councils, private contractors, In 2010-11 a total of $4.3 million their overall satisfaction as six out of 10 pastoral companies, Indigenous was spent on training, excluding or higher and 85 per cent rating Power incorporated bodies and community apprenticeship programs and and Water as a good employer that government councils. study assistance; an average they would recommend to others. of $4 540 per employee. The ESO requires a broad range of skills, Employee satisfaction is broadly knowledge and experience in power, We continue to focus on developing comparable to results from other water and sewerage infrastructure, technical skills across the operational companies in the energy sector operations and customer services to business units and provide high and Australian industry in general. safely, effectively and efficiently carry levels of training to meet safety and However the percentage of employees out their duties. Power and Water legislative compliance requirements. recommending Power and Water provides comprehensive inductions, as a good employer (85 per cent) This year 83 employees accessed residential training courses and onsite exceeds those from the energy study assistance within the 2010-13 training and mentoring. Quarterly sector (67 per cent) and Australian Power and Water Enterprise Agreement reviews of contracts focus on ESO industry (60 per cent) generally. to complete undergraduate and performance, workforce planning post-graduate courses, which and developing capacity. We also hold is a marginal decrease on last three-day ESO training workshops year’s figures. every year in Darwin, Katherine and Alice Springs. power and water corporation annual report2011 45
Safety
Zero Harm We are also focusing on positive safety The Safety Week Program was action programs. conducted through all regions Safety is one of Power and Water’s during September and October. five core values. We seek to protect For example, one of the responses to The program promoted health and the health and wellbeing of ourselves, the increased LTIs was to carry out safety education and training. our contractors and the general public. Safety Stand Downs across all sites Our safety vision is for zero harm, to highlight the injury trend and Other safety initiatives include online incidents and unsafe acts and promote awareness of the need to employee and contractor inductions practices in the workplace. proactively address safety hazards in and programs associated with the workplace. Access to Apparatus Rules, Job Safety Health and safety Environment Analysis and Fatigue We created extra safety positions performance Management. in 2010-11 with 14 roles primarily We recorded 20 Lost Time Injuries concentrating on health and safety. Management systems (LTIs) this year, exceeding the target These included positions based within of four or less. The LTI frequency rate safety certification each operational business unit. We AS/NZ 4801 was 10.4, with an average of 6.5 days also established a further six positions lost per LTI. The majority (14) of the LTIs to help develop safety systems for our Power and Water retained certification sustained were soft tissue injuries. contractors. to the Occupational Health and Safety management system (AS/NZ 4801) All reportable incidents were Twenty five workgroups of 10 or across the entire function, which was submitted to NT WorkSafe more employees have been formed verified through ongoing surveillance within the legislated timelines. according to the Work Safety Act with audits by the certifying body SAI Global There were 44 incidents reported 25 Health and Safety Representatives throughout the year. to the regulator during 2010-11. (HSRs) elected by their workgroups. Power and Water has an Integrated The number of safety incidents The HSRs work with their workgroup Management System which supports reported and investigated each to discuss safety issues and develop our triple certification against month is a key indicator of our solutions. Occupational Health and Safety (AS/ progress. Our aim is to investigate Power and Water continues to roll NZ 4801), Quality (ISO 9001) and all occupational health and safety out health and wellbeing programs Environment (ISO 14001). incidents within 30 days. which has been well received by staff, Power and Water staff conduct including a Safe Spine awareness regular Safe Act Observations (SAOs) program to counteract the musco- to promote discussion on health skeletal injuries that form the majority and safety in the workplace. These of the injuries reported. observations are conversations with employees and contractors about carrying out duties safely and raising awareness which contributes to the effectiveness of our safety program.
Health and safety initiatives Ongoing health and safety initiatives during the year included the Zero Incident Process training, now rolled out to more than 700 employees and team leaders. This program aims to improve each individual’s personal attitude towards safety promoting ownership of safety in the workplace.
LEFT: Essential Services Operators training in Alice Springs we value COMMITMENT
Our economics
Utilities capital expenditure will be monitored under its licence and all applicable to determine if benefits to consumers laws, codes, rules or standards. Commission’s outweigh costs. review program Power and Water has a decentralised approach to managing compliance. In November 2009 the Northern Retail electricity During 2010-11 the Power and Water Territory Government approved competition Board approved development of terms of reference for eight reviews a corporate governance, risk and Full Retail Contestability in the to be undertaken by the Utilities compliance framework, including Northern Territory’s electricity market Commission as part of its expanded systems to manage compliance. We was introduced on 1 April 2010. The work program to propose further produce six-monthly reports to update Utilities Commission issued a licence reforms to the Northern Territory’s the Board on progress in implementing to a competing retailer in February 2011. electricity industry. The reviews the framework. are as follows: Power and Water welcomes 1) Full Retail Contestability competition and has started NORTHERN TERRITORY 2) Asset Management implementing an operating model Electricity Capability Project in light of these changed market conditions. Discussions concerning Ring-fencing Code 3) Capital and Maintenance Programs policy matters have also taken place The Ring-fencing Code aims to create 4) Customer Service Incentive Scheme with Northern Territory Treasury and an environment where the price, for Electricity Customers the Utilities Commission. quantity and quality of electricity is not 5) Retail Price Monitoring Regime for biased as a result of Power and Water’s Contestable Electricity Customers Regulatory vertical integration. The code ensures 6) Electricity Standards of Service and technical that prescribed monopoly businesses, 7) Electricity System Planning, compliance such as Generation and Power Monitoring and Reporting Networks, in regulated industries do The two main compliance areas that not discriminate against a competitor 8) Electricity System Planning and the Utilities Commission focuses on of their related contestable businesses, Market Operation Roles and are economic regulation and technical. such as Generation and Retail. Structures The latter is cultural and relates to In accordance with the Code, Power Most of the reviews started in 2010. issues of practice. and Water has established Related Six of the eight reviews have been Recent variations have been made Party Terms (RPTs) covering terms completed with the last expected to the compliance and reporting and conditions for the provision and to be completed by the end of 2011. obligations in Power and Water’s acceptance of wholesale generation Recommendations from the reviews electricity licences (Generation, and network access services between that are approved by the Northern Networks, System Control, Retail and its Retail and Generation and Power Territory Government will be Electricity). This requires Power and Networks businesses respectively. implemented by Power and Water, Water to establish, document, maintain The RPTs ensure an arm’s length with changes expected to some of our and comply with appropriate auditable relationship exists and are contained planning and operational activities internal policies, procedures and within the service level agreements and increased regulatory compliance. systems (compliance process) to ensure between the respective business units. The impact on our operational and that it complies with its obligations
RIGHT: Uterne, the largest solar tracking device in Australia power and water corporation annual report2011 47 we value COMMITMENT
Retail pricing FIGURE 4 The following charts compare prices residential electricity tariff comparison for electricity, water and sewerage for 2010-11 as at 30 June 2011 in the Northern Territory with states across Australia, as at 30 June 2011. STATE NSW SA TA S VIC WA QLD NT ACT Network 35 29.08 29.02 30 access prices 26.84 24.05 22.82 22.76 Average: 24.27 c/kWh The Utilities Commission regulates 25 21.21 18.41 electricity network prices in accordance 20 with the Electricity Networks (Third Party Access) Code. The third regulatory 15
period, the period between major price 10 reviews (or ‘resets’) during which time the network price control mechanism 5
is held constant, began in July 2009. c/kWh 0 The Utilities Commission has approved Source: Retailers’ published tariffs network tariffs and charges relating to Based on: 7,000 kWh per annum (ESAA Average) the use of Power and Water networks FIGURE 5 for 2011-12. The Corporation is in the process of implementing new residential water tariff comparison Alternative Control Service charges for 2010-11 as at 30 June 2011 that have also been approved by the Utilities Commission. STATE QLD ACT NSW SA VIC WA NT 350 Community Service 286.64 300 268.54 254.72 Obligations 247.31 228.52 Average: 235.86 c/kL 250 Governments pay Community Service 187.10 178.17 Obligations when they require a public 200
enterprise to provide services at a price 150 or in a way that it would not choose to do on a commercial basis. 100 Northern Territory Government 50
contributions enable Power and Water c/kL 0 to offer uniform tariffs regardless of Source: Retailers’ published tariffs where customers live, give pensioner Based on 234 kL per annum (WSAA Average) concessions and apply the Tranche 4 electricity policy. In 2010-11, the FIGURE 6 Northern Territory Government paid average annual residential sewerage bill Power and Water $68.9 million in for 2010-11 as at 30 June 2011 Community Service Obligations. Community Service Obligations are STATE WA SA NSW ACT NT QLD VIC received in all centres to subsidise 800 water supply in accordance with the $748.96 700 Northern Territory Government’s $622.63 600 $517.19 $516.11 $513.65 Uniform Tariff Policy. They also Average: $545.41 p.a subsidise water supply and sewerage 500 $461.16 services to customers receiving the $438.17 400 Northern Territory Government’s Pensioner and Carer Concession 300 Scheme. Power and Water received 200 $10.8 million during the 2010-11 100 financial year to provide these services. 0 $/pa
Source: Retailers’ published tariffs power and water corporation annual report2011 49
below: Water testing
2010–11 cost recovery – Water supply and sewerage services The following table shows 2010-11 costs and revenue for water supply and sewerage services in accordance with the National Water Initiative blueprint for water reform. This blueprint builds on the previous Council of Australian Governments (COAG) Strategic Framework for Water Reform. The minimum boundary for cost recovery, as defined in the national framework for water policy reform, requires charges to recover the efficient operational and maintenance, debt servicing and consumption costs. These tables include both major and minor urban service centres but exclude Indigenous communities.
MINIMUM COST RECOVERY CHECK
Darwin Katherine Tennant Creek Alice Springs Total + Yulara $000 $000 $000 $000 $000 WATER Operations, maintenance, administration 23,599 3,483 2,513 12,029 41,624 Debt servicing 8,367 1,183 1,117 3,777 14,444 Asset consumption 15,302 2,428 884 5,526 24,140 Minimum viability costs 47,268 7,094 4,514 21,332 80,208 Total Revenue - from Trading (excl. CSO) 46,167 4,189 1,477 9,877 61,710 Surplus/(deficit) (excl. CSO) (1,101) (2,905) (3,037) (11,455) (18,498) Surplus/(deficit) (incl. CSO) 1,222 (2,768) (223) (10,001) (11,770)
Darwin Katherine Tennant Creek Alice Springs Total + Yulara $000 $000 $000 $000 $000 SEWERAGE Operations, maintenance, administration 23,135 1,353 635 4,503 29,626 Debt servicing 7,138 193 58 600 7,989 Asset consumption 5,871 441 307 1,637 8,256 Minimum viability costs 36,144 1,987 1,000 6,740 45,871 Total Revenue - from Trading (excl. CSO) 33,775 1,964 931 7,423 44,093 Surplus/(deficit) (excl. CSO) (2,369) (23) (69) 683 (1,778) Surplus/(deficit) (incl. CSO) (1,568) (23) (69) 683 (977) we value TEAMWORK
Risk management The nature of Power and Water’s operations and the locations in which it operates exposes it to a wide range of risks. Effective risk management is essential for our organisation to achieve its strategic objectives. We have established an enterprise- wide risk management framework, based around the Australia/New Zealand Standard AS/NZS ISO 31000:2009, designed to ensure that key risks are identified, assessed, managed and monitored. Power and Water’s risks fall into 17 strategic risk categories that are regularly reviewed, assessed and reported to the Audit and Risk Management Committee. Risk management is also integrated with other Power and Water frameworks and functions which act to identify and reduce risks including: • internal audit • legal compliance framework • occupational health and safety management • environmental management • quality management. Power and Water assesses risk in all key business decisions. It supports the proactive management of opportunities and threats by linking risk management with strategic planning. We also support an organisational culture aimed at systematically managing risk. Power and Water is improving its risk management activities by implementing an integrated Governance, Risk and Compliance system.
right: Water sampling power and water corporation annual report2011 51 Corporate governance principles While Power and Water is not required to comply with the Australian Stock Exchange’s (ASX) Corporate Governance Principles and Recommendations (2nd Edition), the following section reports against the eight core principles of good corporate governance. Principle 1 – Lay • Capital Investment, Power and Water and its subsidiaries Asset Management is made up of individuals who are best solid foundations and Fuel Supply Committee able to discharge the responsibilities for management • Health, Safety and of directors in regard to the and oversight Environment Committee Government Owned Corporations Act, the Corporations Act and the • Nomination Committee Power and Water’s Board has six highest standards of governance. independent non-executive members, • Remuneration and The committee did not meet including the Chair and one executive Organisation Committee. during the year. member, Power and Water’s Managing The Audit and Risk Management Director. The Remuneration and Organisation Committee oversees Power and Water’s Committee is responsible for The Board is responsible to the financial management, external evaluating the performance of the shareholding minister for providing reporting, audit, risk management and Managing Director. The committee strategic direction, accountability of statutory and other compliance. Ernst determines and recommends, to the management, corporate performance and Young and KPMG both provided Board, remuneration packages for the and corporate governance of Power internal audit services to Power and Managing Director and Power and and Water and its subsidiary entities. Water throughout the financial year. Water’s senior executive contracts. The primary document setting out The committee met five times during The committee also informs the Board Power and Water’s annual performance the year. about executive remuneration matters targets for agreement with the The Capital Investment, Asset in general. The committee met twice shareholding minister is the Statement Management and Fuel Supply during the year. of Corporate Intent. Committee helps the Board fulfil its Gasgo Pty Ltd is a wholly-owned The Board operates according to a corporate governance and oversight subsidiary of Power and Water and Charter, which clearly identifies the responsibilities in relation to Power purchases gas on its behalf. The Board role of the Directors and outlines the and Water’s capital investment, asset for Gasgo comprises the Managing matters to be considered by the Board. management and fuel supply activities. Director as Chair and directors from The Northern Territory Government This recognises the critical and relevant Power and Water. Owned Corporations Act and the nature of these activities in achieving Corporations Act largely establish the Power and Water’s commitments Darnor Pty Ltd is a wholly-owned Board’s duties. outlined in the Statement of Corporate subsidiary and holds Power and Intent. The committee met five times Water’s 2.5 per cent interest in NT The Board has established committee during the year. Gas Pty Ltd, the lessee and operator structures and corporate policies to of the Amadeus Basin to Darwin Gas address Power and Water’s specific The Health, Safety and Environment Pipeline and 2.5 per cent of the units in areas of focus, along with governance Committee oversees Power and the Amadeus Gas Trust. The Board for principles, to maintain the integrity Water’s environmental performance Darnor is made up of the Managing of its stewardship. Board committees and compliance with regulatory Director as Chair and directors from have been structured to address critical requirements. Power and Water Power and Water. issues that require a more detailed is committed to achieving its examination and involvement. long-term aim of Zero Harm and Indigenous Essential Services Pty Ltd strives to protect the environment by (IES) is a wholly-owned subsidiary Committee structure managing the impact of its operations. that provides electricity, water and sewerage services to remote Power and Water’s committee The committee met three times during communities in the Northern Territory. structure is as follows: the year. The subsidiary Board for IES is made up • Audit and Risk The Nomination Committee helps of a subset of directors from Power and Management Committee the Board effectively discharge its Water’s Board. responsibilities to ensure the Board of we value INTEGRITY
Power and Water’s Board receives Directors have identified areas of Principle 5 – monthly performance reports from potential conflict of interest for each of the business units which report the Board. In accordance with the Make timely progress against Key Result Areas Corporations Act, directors absent and balanced and Key Performance Indicators from themselves from Board deliberations disclosure the Statement of Corporate Intent. on matters where they have any Various Board and Committee papers material personal interest. The Government Owned Corporations and briefings are provided as required. Act requires that Power and Water The Company Secretary/General Principle 4 – publish an annual Statement of Counsel provides administrative and Corporate Intent including strategies, legal support to the Power and Water Safeguard integrity assumptions, risks, targets and plans Board, its subsidiary Boards and the in financial which is tabled in the Legislative Managing Director, including advice on reporting Assembly and is openly available Corporate Governance related issues. to the public. Power and Water’s internal audit Under the Act, the shareholding provider has direct access to the Chair Principle 2 – minister must be notified immediately of the Audit and Risk Management of matters that may prevent Power Structure the Board Committee, the Board Chair and the and Water from achieving the targets Managing Director. to add value contained in the Statement of The Northern Territory Administrator The internal auditor provides specialist Corporate Intent. professional audit services to Power appoints Directors on the Power and Water provides monthly and Water and its subsidiaries. The recommendation of the shareholding reports to Northern Territory Treasury internal auditor provides Power and minister. The Board comprises six representing the shareholding minister. Water with assurances that it is non-executive Directors and Power Power and Water’s annual report achieving its commercial goals in and Water’s Managing Director, with of operations including financial accordance with better practice and a broad cross-section of relevant skills statements and Auditor General’s report due process. Power and Water has a and experience. The Directors’ profiles is provided to the shareholding minister policy of contracting its internal audit are provided in the Directors’ Report and tabled in the Legislative Assembly services every three years through an section of the annual report. each financial year. Regular informal open tender process. The Board’s performance is reviewed updates are also provided as required by on a biennial basis. This review is Internal audit provides assurances the Chair and Managing Director. that its financial and operational conducted by an external party. Power and Water’s Chair and information is reliable; that laws, Directors’ fees are determined by the Managing Director appeared before regulations, policies and procedures shareholding minister and provided at the Government Owned Corporation’s are complied with; that appropriate Note 26 to the Financial Statements. Scrutiny Committee on 23 June 2011 procedures are in place to safeguard Directors are not eligible for retirement to answer questions on the activities, assets and revenue and that benefits. performance, practices and financial appropriate procedures are in place to management of Power and Water. Principle 3 – ensure the effective use of resources. Promote ethical Power and Water also contracts the Principle 6 – and responsible services of other accountants as financial advisers when specialist Respect the rights decision making expert advice is required. of shareholders Directors, executive management In accordance with the Government The Northern Territory Government, and all employees are expected to act Owned Corporations Act, the Auditor- on behalf of the Northern Territory, is lawfully, in an honest and professional General of the Northern Territory is Power and Water’s sole shareholder. manner and with integrity, fairness responsible for the external audit of As a Government Owned Corporation, and objectivity in their dealings with Power and Water’s financial statements. all dividends from Power and external parties and one another. Water are paid to the Northern Policies and procedures are in place to Power and Water has in place Territory Government. The Board’s promote ethical conduct. monthly business reporting and recommendation on the dividend is annual reporting to the shareholding made after considering end-of-year All Power and Water staff are bound minister on the targets (including financial results, Power and Water’s by the Northern Territory Public Sector financial) contained in the Statement capital structure, capital investment Principles and Code of Conduct which of Corporate Intent. The Chief Financial commitments and the capacity to pay require employees to perform their Officer attends Board meetings and in accordance with prudent financial official duties with skill, impartiality, reports on the financial performance of management. After consulting with professionalism and integrity. Power and Water. power and water corporation annual report2011 53
the shareholding minister, the Board Principle 7 – To maintain its triple certification makes a determination on the dividend of the recognised standards for to be paid each year. Recognise and Occupational Health and Safety manage risk (AS/NZS 4801), Quality (ISO 9001) The Government Owned Corporations and Environment (ISO 14001), Act gives the shareholding minister Power and Water has an established Power and Water is subject to and the portfolio Minister a right to enterprise-wide risk management regular surveillance audits by SAI direct Power and Water under certain model. It uses a risk management Global on its policies and practices. circumstances. A copy of any such rating tool that categorises risks statutory directions must be tabled according to business continuity, in the Legislative Assembly within six environment, financial and Principle 8 – sitting days. There were no statutory occupational health and safety. Remunerate fairly directions during 2010–11. Internal audit operates under an and responsibly annual, risk-based internal audit plan Power and Water maintains strong Director’s remuneration is disclosed in approved by the Audit and relationships with all Northern Note 26 to the financial statements. Risk Management Committee. Territory Government departments, The Remuneration and Organisation The annual plan provides for an collaborating on major projects and Committee makes recommendations integrated approach to audits that whole-of-government initiatives to the Board concerning executive combine, where possible, audits and providing regular briefings as management remuneration. of safety, health, environment and requested. Conditions of service and remuneration compliance assurance. Power and Water seeks to provide arrangements for executive contract as many opportunities as possible A comprehensive corporate risk officers are in accordance with to engage with Territorians. Regular register has been compiled and the Public Sector Employment and awareness campaigns are promoted the Audit and Risk Management Management Act. Committee conducts regular reviews through traditional and social media In addition, Power and Water’s of critical risks. Decision-making in channels. Customer information is employees have individual annual Power and Water is made with due available from our retail centres, call performance plans and targets which consideration of potential risk impacts. centre and website. We also take part are linked to salary progression. The Mitigation strategies are developed in the annual Northern Territory show 2010-13 Power and Water Enterprise to reduce the likelihood and circuit in all regions. Power and Water’s Agreement: Working together to meet consequence of events that would have Statement of Corporate Intent and the challenge was agreed in principle adverse implications for the business annual report are available to in December 2010. The formal vote was and its stakeholders. the public and are published on undertaken in April 2011 and ratified by our website. Fair Work Australia in May 2011.
Solar for the Centre Australia’s largest flat-plate tracking solar power station is now producing electricity for Power and Water customers in Alice Springs, our sunny red centre. Power and Water has signed a 20-year agreement to purchase power from the 1MW Uterne power station, built this year. This exciting project sees 3048 mono-crystalline panels cover more than four hectares of land near Arumbera. They will produce enough power for 288 average Alice Springs homes a year. This is a key part of Power and Water’s commitment to the Alice Solar City project, which has already seen more than 450 rooftop photovoltaic systems installed on homes and businesses. Elizabeth Overend, Sustainable Energy Engineer, Strategic and Corporate Affairs we value TEAMWORK
SNAPSHOT : Tunnelling toward Larrakeyah outfall closure Power and Water is undertaking a program of works to allow the closure of the Larrakeyah outfall. The works are part of Power and Water’s broader Darwin Region Sewerage Strategy that aims to: • provide capacity for a growing population and industry base; • improve the performance of the region’s wastewater treatment and disposal facilities; and • reduce potential impacts on the environment from sewerage operations. The Larrakeyah Outfall Closure Plan project will support the elimination of untreated sewage discharges to Darwin Harbour. Work which started in 2008 will be done in four stages: • Diversion works to deliver sewage from the Larrakeyah catchment to the Dinah Beach trunk sewer; • Further upgrades to Ludmilla Wastewater Treatment Plant; • Duplication of the East Point rising main; • Extension of East Point outfall. The replacement of the East Point Outfall rising main and the extension of the East Point Outfall require a Public Environment Report, which is currently under development.
right: Work on the larrakeyah outfall project power and water corporation annual report2011 55 financial statementS Power and Water Corporation and its Controlled Entities (ACN 947 352 360) For the year ended 30 June 2011
Description
Directors’ report...... 56
Directors’ declaration...... 63
Independent Audit Opinion...... 64
Statement of comprehensive income...... 65
Statement of changes in equity...... 66
Statement of financial position...... 67
Statement of cash flows...... 68
No. Notes to the financial statements
1 Corporate information...... 69
2 Statement of significant accounting policies...... 69
3 Revenue and expenses...... 80
4 Income tax equivalent expense...... 82
5 Dividends...... 84
6 Cash and cash equivalents...... 84
7 Trade and other receivables...... 85
8 Inventories...... 86
9 Investments...... 86
10 Investment in subsidiaries...... 86
11 Property, plant and equipment...... 87
12 Intangibles...... 89
13 Trade and other payables...... 91
14 Interest bearing borrowings...... 91
15 Provisions...... 92
16 Government grants...... 92
17 Contributed equity...... 93
18 Retained earnings...... 93
19 Risk management objectives...... 94
20 Financial instruments...... 96
21 Commitments...... 98
22 Operating lease arrangements...... 98
23 Contingent liabilities and contingent assets...... 98
24 Related party information...... 99
25 Auditor’s remuneration...... 100
26 Director and executive disclosures ...... 101
27 Impairment of assets and subsequent reversals...... 103
28 Events after the reporting period...... 103
29 Economic Dependency ...... 103
30 Restatement Note ...... 104 we value COMMITMENT
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Contact us
Call 1800 245 092 Email [email protected] Visit powerwater.com.au Follow PowerWaterCorp on Twitter ABN 15 947 352 360
Head office Level 2, Mitchell Centre 55 Mitchell Street, Darwin GPO Box 1921 Darwin NT 0801
Customer service centres Shop 28, Ground Floor, Mitchell Centre 55 Mitchell Street, Darwin
Shop 21, Palmerston Shopping Centre 10 Temple Terrace, Palmerston
Ground Floor, Government Centre 5 First Street, Katherine
Ground Floor, Government Centre Peko Road, Tennant Creek
Shop 8, Alice Plaza 36 Todd Mall, Alice Springs