Report
of the
STATE ELECTRICITY COMMISSION OF VICTORIA
for the
Year ended 30 June 1983- 84
Ordered by the Legislative Assembly to be printed
MELBOURNE F D ATKINSON GOVERNMENT PRINTER 1982 84 No. 182
Annual Report 1983-1984 State Electricity Commission of Victoria ANNUAL REPORT 1983/84 Principal Offices Regional Offices: The State Electricity Head Office: Metropolitan Commission of Victoria is a Monash House Clernents House body corporate first 15 William Street 238 Flinders Street constituted under the Melbourne 3000 Melbourne 3000 Electricity Commissioners' Postal Address: Telephone 653 2222 Act 1918. It now operates GPO Box 2765Y Melbourne 3001 Eastern Metropolitan under the State Electricity Telephone 615 0433 122 Thomas Street Commission Act 1958. Telex AA31153 Dandenong 3175 It generates, transmits and Cable and Telegraphic Address: Telephone 797 4611 distributes electricity Electrocorn Melbourne Barwon throughout Victorias 228 000 Latrobe Valley: 125 Malop Street square kilometres and Geelong 3220 Morwell Adrmnistratton Building Telephone (052) 26 4211 supplies directly to Morwell 3840 1.390 million customers. Telephone (051) 35 3222 Gippsland In addition, 278 500 5 Argyle Street Postal Address- Traralgon 3844 customers are supplied by PO Box 195 Morwell 3840 eleven municipal authorities Telephone (051) 71 1411 which purchase electricity in Kiewa: Mallee bulk from the Commission. Mount Beauty 108 Madden Avenue The Commission also has a Victoria 3699 Mildura 3500 regulatory responsibility to Telephone (057) 57 2304 Telephone (050) 23 9411 ensure the safe use of Mid-Western electricity. It employs 22 826 1-7 Wendouree Parade people. The installed Ballarat 3350 capacity of generators in the Telephone (053) 37 9411 Commission's system, plus North-Eastern Victorias share of Snowy and 122 East Bridge Street Hume generation, totalled Benalla 3672 6844 MW at 30 June 1984 and Telephone (057) 61 1411 the main transmission Northern and Midland system comprises 500 kV, 261 Hargreaves Street 330 kV and 220 kV lines. Bend1go 3550 Telephone (054) 40 2411 The Commission finances its Contents South-Western capital works program and Commission's orgamsahon meets its operating expenses Comm1ssioners ~ 119 Murray Street Mission, objectives and goals 5 Colac 3250 through revenue received 6 Telephone (052) 33 5211 from its customers and Performance measures Summary of aciJvit!es 10 Wimmera repayable loans. Annual report 12 Finance 17 McLachlan Street J~ Horsham 3400 35 Telephone (053) 82 9411 serVICeS 36 Generating plant and transmiSSion line development 40 Design and 41 Transmission and distribution 45 Bankers: Customer serv1ces 49 Commonwealth Trading Bank Long-range development planning 56 of Australia Interconnection with other States 62 367 Collins Street Environmental treatment for power stations 63 Melbourne 3000 Sc1entific research 64 State Bank of Victoria Services 66 385 Bourke Street Commissioners 68 Melbourne 3000 Cover: Personnel and organiSation 69 Regular maintenance of the New legislat10n and statutory National Commercial Banking distnbut10n system 1s essential reqmrements 75 Corporation of Australia Ltd for the provision of a safe and Pubhc safety and other regulatory 500 Bourke Street reliable supply of electncity responsibllities 76 Melbourne 3000 .- Secretary (a) A J Forrester
Secretary (b) A J Forrester
DIRECTOR, DIRECTOR, CORPORATE FINANCE PLANNING J ANOLAN KGCULLEY
Manager, Manager, Manager, Manager, Controller, Manager, Manager, Manager, Treasurer Business Forecasting Public System Accounting Computer Insurance Supplies Planning &Tariffs Relations Planning AJCouper Services &Claims &General &Review DJ Kntpe FDShew ECStokes LBAckland CRMedcraft Services N A Richards CS Gilbert
Chief Engineer, Production Co-ordination GGLake GEN~RAL MANAGER, DESIGN& CONSTRUCTION GWBATES Acting Manager, Manager, Research Programming Development Measurement R PLlewelyn"' SE Blanch"' I I I I I Acting Acting Manager, Chief Chief Manager, Manager, Manager, Project Project Design Engineer, Engineer, Production Production Production Manager, Manager, Engineering Fuel Power LoyYang Morwell Yallourn Loy Loy & Environment Dr R Hutchings R. Booth royd lCRunge J C Hutchmson J A Vines YangA YangB Dr J PJames LSSandlm B Hernen
(a) As Secretary to the "Board of Comm1ss1oners" (b) As head of the Secretarial Department (c) Internal Aud1tor rece1ves admm1strauve d1recuon from Director, Finance 0 Currently under review. Acting Chairman, 0 Internal Appeals Auditor Committee (c) R A Parrett KEYelland CHIEF. GENERAL MANAGER )RSM ITH
DIRECTOR, HUMAN RESOURCES I G MACDONALD
Manager, Manager, Manager, Manager, Manager, Manager, Chairman, Employee Organisation Personnel Personnel Superannuation Personnel Classifications Relations Services Development Policy, Administration Selection Committee 0 B)Ciinch P B Harmsworth MC Hart Planning T C McCredden &Review S Ejones DEPUTY CHIEF GENERAL MANAGER Cj)OYCE
GENERAL MANAGER, GENERAL MANAGER, GENERAL MANAGER, PRODUCTION SUPPLY TRANSMISSION DCLARK R j WEATHERHEAD R M GREENWOOD
Manager, Manager, Manager, Manager, Chief Chief Electricity Chief Chief Area Engineering Production Customer Engineer, Electrical Supply Engineer, Engineer, Administration Services Services Services Distribution Inspector Regions Transmission Transmission R j Cheffers D C Bromiiow L LSh1pp DB Brockensh1re AT Wilson Lj Franc1s Managers Development Operations Metropolitan I P Bates G L Boreham R NCiark Eastern Metropolitan KWPocknee Barwon B DThomas Gippsland J A Mathers Mallee GAHayball Mid-Western North-Eastern NEMeagher Northern & Midland GAHayball South-Western ROGriffm Wimrnera Chairman J C Trethowan (centre) Chief General Manager and Commisstoners E W Russell J R Smith and Commissioners (left) and I A Gibson (right) B Y Hillsdon and A B Miller Commtssioner K J Flynn.
Chairman Commissioners Federal President and SEC J C Trethowan BCom, FASA, I A Gibson BEe, BA Branch President of the MIAA (Appointed from 2 March 1983 for a Municipal Officers' Association. (Appomted from 2 March 1983 for a term of four years) B Y Hillsdon BA(Econ) term of three years) On 3 April 1984 the Government (Appointed from ll October 1983 for Mr Trethowan was appointed appointed Mr Gibson as Deputy a term of three years) Chairman and General Chairman of the Commission for Ms Hillsdon is Corporate Manager of the Commission in the ending 1 March 1987. Treasurer at Fluor Australia 1974. He is a career Commission Mr is an economist at Limited. She was previously officer, having commenced as a the Gippsland Institute of Senior Corporate Finance junior clerk in 1941. He is a Advanced Education and a Officer with BHP and has member of the Victorian Brown member of a number of Latrobe worked at the Commonwealth Coal Council, a member of the Valley community groups and Secretariat in London and the National Labour Consultative Government committees. Australian Bureau of Statistics. Council, Chairman of the Dr E W Russell BA(Hons), BEe, Council of the Australian PhD, DipArchives(Lon) Administrative Staff (Ex Offtcio Commtssioner as Deputy Chief General President of the Australian Secretary of the Department of Manager German Association and a Minerals and Energy) C J Joyce BA, DipEE, FIEAust Director of Mayne Nickless Ltd Dr Russell is Secretary of the General Manager, Design and Moore Business Systems Department of Minerals and and Construction Australia Ltd. Energy and is a member of the G W Bates EE, DipME, Victorian Brown Coal CounciL FIEAust Chief General Manager Prior to his appointment to the JR Smith BA, DipEd Department of Minerals and General Manager, (Appointed from 4 July 1983 for a Production term of five years) Energy he had held a number of D Clark DipME, senior positions in the Victorian Mr Smith was previously Deputy and Commonwealth Public MlnstF Chief General Manager of Services. General Manager, Supply Telecom Australia. He joined R JWeatherhead BEE, DipEE, the Commonwealth Public AB Miller (Appointed from 5 July 1983 for a FIEAust Service in 1960 and served in General Manager, the Commonwealth Office of term to 1 July 1985) Mr Miller is a director of the Transmission Education and the Department R M Greenwood MEngSc, BEE, of the Navy before promotion to Collingwood, Richmond and Fitzroy Credit Co-operative Ltd DipME, FIEAust, MIEEE the Postmaster General's Director, Corporate Planning Department (later Telecom) in and is engaged on special projects with the Victorian K G Culley MBA, BE(Mech), 1958 where he subsequently DipME, MIEAust occupied senior commercial. Credit Co-operative Association. finance and accounting K J Flynn DipEE, MIEAust Director, Finance positions. (Elected with effect from 6 July 1983 JA Nolan BEc(Hons), MAdmin, for a term of two years) PMASSA Mr is the Commission's Director, Human Resources ProJects Engineer, Mid-Western I G Macdonald MAdmin Electncity Supply Region and is Secretary A J Forrester SCorn 4 ission, objectives and goals For a number of years the CUSTOMER FINANCE Commission published in its Objective: Objective: Annual Reports details of the Provide energy and services to Maintain a financially viable corporate objectives specified current and potential organisation and ensure that in the State Electricity customers at the lowest financial resources are Commission Act 1968. In the possible cost commensurate efficiently and prudently 1982/83 Annual Report, new with financial viability, managed. objectives specified in the State reliability, public safety and Specific Goals: Electricity Commission environmental requirements. • A real rate of return on capital (Amendment) Act 1982 were Specific Goals: consistent with Government shown. • Customers whose energy policy The State Electricity related needs are being met in • Sufficient revenue to cover all Commission (Amendment) Act a timely and effective manner. costs and provide a level of 1982 specifies objectives for the • A Victorian community internal funding consistent with Commission and requires the educated in the safe and sound financial viability establishment of performance effective use of energy, • Credit rating equivalent to measures by which the particularly electricity AAA on domestic and achievement of its objectives • Generation, transmission and international financial markets. may be assessed. distribution systems which are • A sound level of short-term During 1983/84 the planned, designed, constructed liquidity Commission's integrated and operated at the lowest • Assessment of, and planning process commenced possible overall cost, consistent with the aim of developing a appropriate policies to meet, all with environmental and the business nsks. corporate strategy The reliability requirements. first phase of the process was • Load management techmques NATURAL RESOURCES completed m April 1984 with the which utilise spare on development of a mission Objective: statement, objectives base load plant Develop the natural resources and goals performance • Increased application of cost of the State in an efficient and effective facilities. cost effective manner measures consistent with the including the substitution of objectives and functions EMPLOYEE more plentiful or renewable so•ecJ:nea in the Act. Objective: resources for less plentiful The Commission has approved Foster a safe and satisfying resources. the following mission statement work environment which Specific Goals: "To provide cost-effective provides sound employee • Efficient and cost-effective energy and services and to relations enabling all conversion of natural resources act at all times in the best employees to contribute into electricity delivered to the interests of the people of positively towards achieving customer. Victoria by being a the objectives of the responsible, adaptive, • Alternative cost-effective uses Commission. of brown coal. financially sound and Specific Goals: efficient public utility." • Motivated, skilled and The mission statement is the productive employees foundation for all activities and performing satisfying work. should provide the Commission • Sound and stable employee with a sense of direction and relations. unity of purpose. • opportunity practices Corporate objectives have been for employees. developed in the following seven broad areas: Customer, • Improvement in health and Employee, Natural safety performance Resources, Environment, • Effective two-way Conservation and Community communication within the Each objective has been Commission. translated into a series of specific goals, the achievement of which will be monitored. These objectives and goals are as follows: 5 erfonnance measures ENVIRONMENT In Older that the achievement of Number of complaints 900 Objective: the corporate goals may be 1- Minimise any adverse effects monitmed, the Commission has ~ of the Commission's activities developed a number of on the environment performance measures and 800 commensurate with economic associated targets. and technical reliability and A summary of the corporate ,.--- 700 safety: performance measures and Specific Goal: targets for each corporate goal - • Agreement with Government is detailed in Appendix 14. 600 on, and compliance with, environmental policies, standards and procedures covering the planning, design, ~ (]) 1:"-o construction and operational (]) phases of all prOjects. eh 140C 1:"-o - ~ >-< CONSERVATION .Q Objective: ~ 130C Advise and assist current and ..!!l iil potential customers in the wise ;;; use of energy and implement 0 1200 cost-effective conservation ~" programs consistent with Cl Government policy: IlOCi Specific Goals: • Efficient use of energy within '75 '76 '77 '78 '79 ·m l·s1 •sa '83 ~·84 Victoria, particularly electricity • Efficient use of energy within Customer the Commission. Numberohefened written operating and service COMMUNITY complaints. Objective: Includes all written complaints Promote community awareness received through the Ministerial and involvement in the office, the Ombudsman or activities of the Commission, directly by General and discharge effectively the management responsibilities and functions as specified in the SEC (Amendment) Act 1982. Specific Goals: • Corporate activities which take into account social issues and community needs. • Community involvement in, and awareness of, the Commission's activities, future plans, objectives and functions. • Operation in accordance with the criteria established from time to time by the Minister in respect of efficiency, economy, safety, reliability and social objectives.
6 • GWh.lost Gigawatt Hrs 1000 LTI!Mtl hon MArs worked 20 DM.hrslost Mhrs('OOO) lost
900
soo
?00
600
500
400
300
200
· rsil 6~ '8.9 ~In·~·~ Cutomu Employee Employee Tariffs- o/o rise in average tariffs GWhand manhours lost per Lost time injuries. compued with average rise in annum through industrial Lost time injury is any injury Melbourne CPL disputes. sustained in the course of work %rise in average tariffs refers to Enexgy (GWh) lost is an estimate that results in the loss of at least that announced each year, of electricity not generated as a one full working day/shift by that usually in August/September. result of restrictions imposed due person. %rise in Melbourne CPI index to industrial disputes. refers to the value for the year Manhours lost are the actual ended 30th June. manhours not worked due to industrial disputes.
7 percentage 40 percentage 3.6
Finance Finance Natural resources Level of internal funding. Real rate of :return. Percentage of total electricity The level of internal funds The zeal rate of return is the generated from bmwn coal, available to finance the capital operating surplus befoze interest hydJO and othermnewable works program, debt :retirement but after CCA depzeciation msources. and capitalised finance charges. expzessed as a percentage of net Electricity generated from brown CCAassets. coal, briquettes and hydro (Victoria and Snowy) expressed as a pezcentage of total electricity generated from all resouzces. Currently, there is no contribution from other renewable resouzces.
8 • capital expenditure • O&M expenditure
1.3 1.2 1.1
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84
Conservation Community Fuel consumed (tonnes of Operation within budgets Morwell coal equivalent) per appmvedby the government MWh generated in b:rown coal Operate within the limits power stations. approved by the SEC and 'Ibnnes ofMorwell coal government with regan:l to the equivalent, from Morwell, capital and operating budgets. Yallourn and Loy Yang open cuts, consumed in power stations per MWh generated in brown coal power stations. Coal consumed from the Loy Yang and Yallourn open cuts are converted to Morwell coal equivalent for comparison purposes.
9 summ~of activi ·es
Financial 1983/84 !982/83
Total Operating Revenue $M 1 481.9 l 298.6 Balance of Profit and Loss Statement $M 11.7 37.2 Net Fixed Assets at 30 June $M 5 387.0 4 619.5 + 16.6
Pz:oduction & Sales
Maximum Coincident Demand MW 48370 4 497 (1984 winter compared with !983 winter) (3/7/84) (27/6/83) +7.6 Electricity Generated GWh 25 752 25 196 2.2 (includmg purchases)
------~------Electricity Sales GWh 21130 20 446 +3.3 (Victoria) Number of Customers at 30 June 000 1390 l 363 +2.0 (excluding those in bulk supply areas) Use of Electricity kWh 5 706 5 762 1.0 Household Total Use of Electricity kWh 5 214 5 143 14 per Head of Population (Victoria)
Brown Coal Production kt 32 052 33 415 ~4. l Briquette Production kt 760 745 +2.0 Briquette Sales kt 511 509 +04
10
nnual report The Honourable D R White In addition, the Customer Policy The system short-term MLC, ' Rev1ew Panel, of which the generation capability improved Minister for Minerals and Commission was a member, has s1gmf1cantly, with increased Energy, Melbourne giVen a broad cross section of storage levels at Snowy and Sir, the 65th Annual Report of the community the opportunity Dartmouth. the Commission, covering the to develop new customer Results for the Year fmanc1al year ended 30 June policies. These new policies are The $ll.7M balance of the profit 1984, together with the balance m the process of implementation. and loss statement has been sheet and profit and loss During the year the Commission transferred to the general statement, is presented m completed a rev1ew of domestic reserve. conformity with the proviSions of electricity supply extension The result was achieved after: Section 82(5) of the State procedures which Will provide Electricity Commission Act 1958. (a) Transfer to the profit and loss eqmtable financial treatment for statement of the $4.1M balance 1983/84 In Retrospect all supply applicants. Work has standing to the credit of the For the Commission, 1983/84 now commenced on developing reserve for transfer to the was a year of significant cost-sharing principles in consolidated fund of Victona, achievements. respect of supply extensions to and other classes of customer. The most notable included the (b) appropriation of $103.9M for lowest tariff increases for eleven Employee Appreciation publ!c authority dividend as years; the successful The changing circumstances in provided in the Public A~thority commissioning of the first Loy customer, social and (Dividends) Act 1983 (other state Yang generating unit to meet the environmental requirements government charges payroll 1984 winter load; progress with have continued to impose tax, brown coal royalty and the Loy Yang project in parallel considerable additional energy consumption levy also w1th the Government's cost responsibility on the influenced the result). targets; on target completion of Commission and its employees and Commissioners are Operating revenue increased by the 500 kV transmission line to $183.2M, With the electricity Portland, resolution of the therefore pleased to acknowledge the dedicated and busmess contributing $l4l.IM electricity agreements for both largely through tariff increases the Portland and Point Henry skilful service being provided by Commission personnel. m September/November 1982 smelters; and progress with (full year effect) and major supplementary bushfire Supply Position September/November 1983. mitigation activities. There was a significant increase Sales growth of 3.3% was a These achievements are m the total demand for significant improvement on the elaborated on m the body of this electricity in the latter half of the O.lo/o in 1982/83. Report year resulting in an overall growth in sales for the year of The $146.9M increase in Customer Services 3.3%. However, from 20-22 June operating expenses included Reflecting the importance the 1984, it was necessary to 1mpose materials, serv1ces and Commission places on electricity restrictions because miscellaneous expenditure identifying and responding to of an industrial dispute in the $67.7M, labour costs $44.3M and the needs of its customers, the Latrobe Valley regarding open depreciation $26.2M. Commission has continued to cut manning levels. Finance charges, net of amounts pursue a policy of community capitalised, increased by mvolvement and awareness in its Base-load brown coal plant energy output was below budget $30.6M. activities. In particular, a Major Capital Works number of public meetings have due largely to delays in Loy Yang A Unit 2 commissioning, Progress of major capital works g1ven customers the opportunity 1s elaborated on in the "Design to provide mput to Commission reconstruction and other outages at Hazelwood, and offloading and construction" section of this and Government policies, Report Highlights for the year mcluding tariff formulation. ansing from coal supply difficulties durmg the open cut mclude the following: manning dispute. The reduced brown coal-fired generation was offset by increased gas-fired generation, and imports from the Snowy scheme and the Electricity Commission of New South Wales.
12 • The first generating unit of Loy A total of 22 855 manhours lost $251.159M (72.3%) was awarded Yang A power station this fmancml year through to Victorian sources, $46.057M commenced commercial industrial action represents an (13.2%) to interstate markets and service on 30 May 1984 and was average of one manhour lost for $50.223M (14.5%) to overseas available to meet the winter load each Commtssion employee markets. No Victorian offers of 1984, as planned. An historic agreement marking were received for $17.805M • Construction of Loy Yang A a new approach to dealing with of total contracts awarded in Units l, 3 and 4 proceeded health and safety matters in the 1983/84. satisfactorily and dredger No 15 Commission was issued m April New Legislation was completed and 1983. The following amendments to commissioned for operation in The Commission considers that the Commission's legislation the Lay Yang open cut. health and safety is the joint were enacted during the year: • Conveyor 1200 has been responsibility of management • State Electricity Commission relocated in the Loy Yang open and employees and that the best (Clearance of Lines) Act 1983. cut and is operating in results m this area are achieved • State Electricity Commtssion conjunction with conveyor 1215 by the process of consultation (Brown Coal Royalty) Act 1983. and dredger No 14 to increase and participation. Annual General Meeting coal availability to Loy Yang A The Health and Safety In accordance with the State Unit 2. Agreement seeks to involve Electricity Commission Act 1958, • The first and second 500 kV actively all employees in the the Commission convened an transmission lines connecting effort to prevent acc1dents and Annual General Meeting on 15 the Loy Yang power station to the two-way communication on December 1983. This was the Hazelwood terminal station were health and safety it provides is first Annual General Meetmg of completed. necessary to achieve this goal. the Commission and was • The second 100 Mvar Tariffs attended by some 400 people. controlled static reactive An average tariff increase of The meeting commenced with compensator was placed in 4.4% was announced by the reports on the operations service at Rowville terminal Government on 25 July 1984. This and on future activities. People station. was the lowest increase in in the audience were then • The extension of the 500 kV electricity tariffs for the last mvited to ask questions and put network west of the metropolitan eleven years. It reflects a desire views dnectly to the Board of area for the supply to Alcoa at by the Government and the Commissioners. Portland was completed to Commission to minimise the (The date for this year's Annual schedule. impact of tariff increases on the General Meeting will be • New zone substations were community and to encourage advertised later in the year.) placed mto service at Cobram development in Victoria in East and Tottenham and major accordance with the augmentation was carried out at Government's Economic Clover Flat, Mansfield, Bright Strategy. and Kinglake zone substations. Growth of the Supply System Employee Relations The Commission now supplies Throughout the year there was electricity directly to 1.390 continuing emphasis on rml!ion customers, an increase employee and union of 27 000 over the previous year. participation in working parties, In addition, electricity is tripartite committees and supplied in bulk to 11 discussion groups. metropolitan bulk supply Regular consultation with unions undertakings. and associations and the Contracts assistance of the Ministry of The total value of Commission Industrial Affaus and the State contracts for plant, equipment, Government's Industrial materials and services Relations Task Force made a (excluding fuel oil) awarded for significant contribution to the 1983/84 reached $347.439M. Of maintenance of good employee the total value of purchases, relations within the organisation.
13 Inspection of Undertakings The role of the Commission in Sales Public interest in the stimulatmg economic recovery Growth in Victorian electricity Commission's undertakings is in Victoria is also recognised sales during 1984/85 will be evidenced by the large number and the action being taken mfluenced primarily by the rate of visitors to its undertakings in ensures not only fmancial of recovery in the Australian the Latrobe Valley and at Kiewa viability for the Commission, but and Victorian economies. which are open for inspection also encouragement for For the 1984/85 financial year, every day except Christmas Day increased economic activity the Commission anticipates a and Good Friday The implementation of inte 2.8% increase in electricity During the 1983/84 year, some grated planning will continue sales growth compared with 39 700 people visited the during 1984/85 with emphasis 1983/84, largely attributable to undertakings in the Latrobe being placed on the develop increased sales to commercial Valley and a further 33 600 ment of a Corporate Strategic and industrial class customers. inspected works of the Kiewa Plan and the introduction of External Borrowings hydro-electric scheme. Program Planning. The Commission is faced with a Many national and international As part of the process of total fundmg requirement of parliamentary representatives developmg the Corporate $1499M in 1984/85 of which and other dignitaries also Strategic Plan by the end of approximately $236M will be vtsited the Commissions 1984, a discussion paper obtained from internal funds, undertakings. outlining both demand and leaving a balance of $1263M to In March 1984, 3600 people took supply side options available to be borrowed externally advantage of an "Open Day" to the Commission over the next 5 Given the envisaged increase in view progress on the Loy Yang to 7 years will be released for competition for funds during project. public comment in September 1984/85, the Commission needs 1984. Following the public to continue its innovation in the Outlook for 1984/85 participation process, financing arena to ensure that Business Operations recommendations will be the requned funds are obtained The Commission's 1984/85 prepared for Government at competitive rates and terms. budget outlays have been consideration and approval, and approved at $1500M for mcorporated in the Corporate operating expenditure and Strategic Plan. ] C Trethowan $989M for capital works. Total The electricity strategy Chanman sales revenue is estimated at component of the Corporate $1629M. Strategic Plan will take into ] R Smith In developing the 1984/85 account the objectives and Chief General Manager budgets, emphasis has been strategies of the Government I A Gibson placed both on immediate Economic Strategy Plan and will Commissioner needs and on progression form an integral component of towards longer term corporate the Victorian Energy Plan to be E W Russell objectives and goals. Thts released in 1985. CommissiOner concept is part of the thrust Supply Position AB Miller towards the formalised Following the successful Commissioner integrated planning process of commissioning of Loy Yang A the Commission, and reflects Unit 2, the outlook for 1984/85 is K] Flynn commitment to improving the for a generally adequate Commissioner real value of electricity to generation capability to cover BY Hillsdon customers through cost normal fluctuations in the Commissioner containment and increased demand/supply situation. productivity. However, there is an increasing A] Forrester percentage of larger generating Secretary and coal supply units being installed in a system with a high proportion of weather sensitive demand. This may result in occasional critical situations when major breakdowns coincide with adverse weather and high demand. 30 August 1984
14 1nance The 4.4% increase in labour projects in course of construe- Business Results costs (excluding long service tion amounted to $265.6M The balance of the profit and leave provisions) reflects the ( + $54.2M), leaving a net $342.5M loss statement, which has been growth in average weekly charged against revenue. transferred to the general earnings and average The $87.lM (18%) increase in the reserve, was $11.7M. employment of 4.0% (up $18 to interest expense component of This result was achieved after $464) and 2.0% (up 453 to 22 798) finance charges reflects a payment of $l03.9M as a Public respectively, the lowest continuing growth in capital Authority Dividend (other State increases for some years. debt and the refinancing of Government charges - payroll Total finance charges increased maturing low cost loans (average tax, brown coal royalty and by $84.8M ( + 162%) to $608.1M, 10%) at an average cost of 13.6%. energy consumption levy - also notwithstanding a reduction in The 32.5% internal funding of influenced the result) amortisation of foreign exchange capital works was a satisfactory Operating revenue increased by net losses on financing improvement on the 18.8% in $183.2M, of which the electricity transactions - down $2.3M to 1982/83. business contributed $l4UM. $37M. Capitalisation of finance Tariff increases provided charges applicable to significant $128.0M via the 79% (average) rise in September/ November 1983 and the full year effect of the 15% (average) increase in September/ November 1982, and Electricity Sales* sales growth $13.1M. While electricity sales increased by 3.3% (a significant improvement · 1983/ 84 1982/83 Customer Class Annual Grow th on the 0.1% in 1982/ 83), this was GWh GWh 1983/84 1982/83 not fully reflected in revenue % % due to the high proportion of 6 730 6 679 Domestic 0.8 1.2 lower priced sales. Industrial sales increased 2 830 2 707 Commercial 4.5 4. l sharply with a gain of 70% compared with a reduction of 7 146 6 677 Industrial 7.0 -2.6 2.6% in 1982/ 83, commercial 284 280 Traction 1.7 3.7 were up 4.5% (4.1% in 1982/83) and domestic up a marginal 125 123 Public Lighting 2. l 3.4 0.8% (12% in 1982/83) An average overall sales growth of 4 015 3 980 Bulk 0.9 0.2 2.8% is budgeted for 1984/ 85. 21 130 20 446 Total 3.3 0.1 Included also as revenue is a reimbursement of from * Excludes sa les or 201 GW h to the $38.6M Electricity Com mission or New South the Victorian government of Wales and the Snowy Mountains Hyd ro- holding and minimum charges Electric Aut hority forgone as a result of the delay in the commencement of Electricity Sales operations at the Alcoa project, 1959-1984 Portland. GWh Operating expenses increased by $146.9M, largely comprising labour costs (including $44.3M 121130 '84 an additional $23M to fully provide for long service leave Jl7366 '79 liability), materials, services and ll33S8 '74 miscellaneous expenditure 19894 '6!: $67.7M, depreciation $26.2M and purchased electricity and fuel ~000 '64 $7.8M. 14477 '59
15 Electricity Sales Revenue* 1983/84 1982/ 83 Customer Class Annual Growth $000 $000 1983/ 84 1982/ 83 % % 450 253 405 308 Domestic 11.1 17.6 293 902 260 202 Commercial 13.0 19.2 366 112 322 99 1 Industrial 13.4 15.1 17 879 15 411 Traction 16 .0 25.1 19 230 17 479 Public Lighting 10.0 18.7 241 890 220 468 Bulk 9.7 18.6 12 449 15 632 Increase in Unread Consumption 1 401 715 1 25749 1 Total 11. 5 17.2 *Excludes revenue of $L015M from sa les to the Electricity Commission of New South Wales and .the Snowy Mountains Hydro-Electric Authorit y.
Sales revenue !Domestic electricity 32"11 1983-1984 Industrial elec1ncity 26011 ~~--.------~ Commercial electricity I 21°11 ~---.------~ Bulk supplies electricity l 17"11 ~------r---~ Traction, public lightmg and unread electricity consumption ~ Subsidiary briquette and brown coal ~
Expenditure (Profit and Loss Statement) 1983 / 84 1982/83 Increase $M $M $M % Salaries, Wages, Employees' Benefits, Payroll Tax 537.8 493.5 44.3 9.0 Electricity and Fuel Purchases 103.2 95.4 7.8 8.1 M aterials, Services and Miscellaneous Expenditure 202.3 134.6 67 .7 50.3 Depreciation 172.3 146.1 26.2 17.9 Commonwealth and State Royalty/ Levies 12.2 11.2 1.0 8.9 Finance Charges 342 .5 311.9 30.6 9.8 Total 1370.3 1 192.7 177.6 14.9
Expenditure 1983-84
Depreciation
Materials. services and m1scellaneous exr>encii~~;:f.~~ Electricity and fuel purchases
16 Capital Works Expenditure and New capital expenditure Means of Finance 1975-84 Capital Works Expenditure 1983/84 1982/83 1981 /82 $M $M $M
Loy Yang Project 609. 1 635.3 520.8 Other Power Stations 23.3 80.9 125.5 Transmission 86.8 171.4 183.9 Distribution 116.7 84.6 80.5 Coal Production 25.4 16.5 38.3 Other Works and Equipment 50.5 59.0 47.2 Total 911.8 l 047.7 996.2
Finance 1983/84 1982/83 1981/82 $M $M $M
SEC Loan Raisings 804.3 854.8 307.3 (Net of Redemptions) State Government Loans(!) - 40.0 - 38.0 - 30.0 Customers' "Self-Help" 7.5 5.4 9.4 (Net of Refunds) Superannuation F'unds' -268.8 54.2 42.8 Advances(2) Notes: Trade Credtt Financing(3) -145.1 103.9 297.2 I Repay ments on request. pursuant to the (Net of Repayments) conditions determined by the Victorian Treasurer in accordance with Section 5 of the Public Accounts Act. in respect Leasing 41.6 72.3 of advances made to the Commission from the Works and Services Account. Bills Payable 64.7 28.1 2 Refer Note 1.11 of Notes On and Forming Part of the Accounts. Bank Loans 241.9 - 32.6 3 Generally, Trade Credit Financing is a deferred payment arrangement for Accounts Payable Accruals(4) - 67.2 - 10.4 138.9 major contracts whereby the payments so deferred are made within three years of completion of the contract. Internal Funds 296.2 197.2 153.0 4 Year-to -yea r variation in assessment of contracts completed or part completed Total 893.5 l 204.2 990.9 and services rendered for which invoices were not received at 30 June. (Accounting policy mtroduced !981/1982) Liquidity Movement -18.3 + 156.5 - 5.3
l7 SEC loan raisings (including conversions) in 1983/84 were Funding Initiatives $1 048.3M of which $115.2M were raised through public loans and 1983/84 $933.lM through financial institutions (including $137.5M special During 1983/84 the Commission offshore funding). has taken a number of Loan transactions for each of the last 5 years were: initiatives, including: • the first Australian state Five-Year Loan Cash Total authority to obtain funds from the $M Rmsings Raisings $M United States private pl
18 rofit and loss statement For year ended :JO June 1984
$000 Notes $000 Operating Revenue Electricity 1402 731 (201) 1 261 582 Briquettes 19 015 15 669 Brown coal 1746 1 679 Alcoa (Portland) reimbursement 38 600 (202) Other revenue 19 761 (20.3) 19 707 1481853 l 298 637 Less: Operating Expenses Labour and associated charges 537 794 (l) 493 445 Purchased electricity and fuel 103 155 (20.1) 95 446 Materials, services and miscellaneous expenditure 202 313 (1)(20.4) 134 640 Depreciation 172 281 (4) 146 075 Victorian energy consumption levy 5 618 (20.5) 3 220 Commonwealth coal research levy 481 501 Brown coal royalty 6161 (20.6) 7 538 1 027 803 880 865 Operating Profit before Finance Charges 454 050 417 772 Less: Finance Charges (3) Interest expense (net) including loan flotation expense 571135 (20.7) 484 081 Amortised foreign exchange translation differences and realised gains/losses 37 007 39 275 608 142 523 356 Less: Capitalised Finance Charges 265 641 211 481 342 501 311 875 Profit before Extraordinary Items 111 549 105 897 Extraordinary Item: Prov1sion for claims for bushfire losses 45 000 Net Profit for the Year 111549 60 897 Transfer from: Reserve for transfer to Consolidated Fund of Victoria (206) 4063 Total Available for Appropriation 115 612 60 897 Less Appropriation: Public Authority Dividend (20.8) 103 900 23 705 Transferred to General Reserve 11712 37 192 NOTE: Thrs Profit and Loss Statement should be read m conjunction w:th the Notes On and Fcrmmg Part of the Accounts.
19 alance sheet As at 30 June 1984
Last Year Notes $000 $000 Current Assets Cash advances 112 46 Short-term deposits and securities 63844 81 583 Accounts receivable 121880 117 332 Estimated income from unread electricity consumption 117 278 104 830 Materials and fuel - at cost (6) 56535 54 566 Securities - trust deposits and funds (5) 2 798 3 152 362 447 361 509 Investments Shares in Australian Char Pty Ltd 105 105
Non-Current Assets Fixed Assets - at cost (7) 6 533 915 5 662 995 Less: Accumulated 1312 780 I 151 262 5 221135 4 511 733 Development of open cuts balance of cost 48572 30 258 ---··- 5 269 707 4 541 991 Leased plant and equipment (13) 133 865 85 583 5 403 572 4 627 574 Less: Provision for amortisation of leased assets 16 609 8 043 (7) 5 386 963 4 619 531 Deferred Charges (8) 69422 112 671 Deferred Debtors (9) 21389 24 986 5 477 774 4 757 188
Total .Assets 5 840 326 5 118 802
In our opinion, this Balance Sheet and the accompanying Profit and Loss Statement and the Notes on and Formmg Part of the Accounts present fairly the financial transactions during 1983/84 and the financial position of the Commission as at 30 1984 and have been drawn up in accordance with section ll of the Annual Reporting Act 1983 the Annual Reporting (Large Trading and Rating Public Bodies) Regulations 1984. We are not aware of any circumstances which would render any particulars included in the Statements misleadmg or inaccurate.
JR Smith J C Trethowan AJ Couper Chief General Manager Chairman Controller 20/9/1984 20/9/1984 19/9/1984 NOTE: This Balance Sheet should be read m con)uncllon wtth the Notes on and Forming Part of the Accounts.
20 Notes $000 $000 Current Liabilities Inscribed stock and debentures (10) 320 490 289 035 Less: Inscribed stock discount 21904 18 021 298 586 271 014 Bank overdraft 8 277 12 050 Accounts payable and miscellaneous accruals (20.9) 209 513 191 050 Interest accrued 123 205 110 886 Trust deposits and funds (ll) 8 415 8 135 Advances for capital works (12) 243 523 84 983 Lease liability (13) 6 623 5 783 Deferred income-leased and equipment (14) 3 135 Advances by Government (14) 9 601 lO 581 910878 694 482 Non-Current Liabilities Inscribed stock and debentures (10) 3 327 723 2 589 025 Less: Inscribed stock discount 224 722 174 684
~ 3103 001 2 414 341 Advances for capital works (12) 1129 300 1 325 466 Lease liability (13) 115 131 121 526 Acquisition loans from municipalities 200 235 Provision for long service leave (13.2) 97 408 62 600 Insurance provision (15) 31557 57 262 Deferred income-leased plant and equipment (14) 41432 Advances by Government (14) 173 947 223 548 --···- 4 691976 4 204 978 Capital and Reserves General reserve 62 363 50 651 Contributions for capital works reserve (16) 175109 164 628 Reserve for transfer to Consolidated Fund of Victoria 4 063 237 472 219342 Total Equity 5 840 326 5 118 802
.Auditor-General's Report The accompanying Financial Statements comprising a Balance Sheet, Profit and Loss Statement, Statement of Sources and Application of Funds and Notes to the Financial Statements of the State lor-trlr'lhr Commission of Victoria have been audited as required by section 12 of the Annual Reporting 1983 and in accordance with Australian Auditing Standards. In my opmion, the Financial Statements have been properly drawn up i:1 accordance with the Annual Reporting (Large Trading and Rating Public Bodies) Regulations 1984, as under the Annual Reporting Act 1983, and present the state of the affairs of the Commission of Victoria as at 30th June 1984 and its financial transactions during the year ended on that date. B. }. Waldron Auditor-General Melbourne 21/9/1984
21 otes on and forming part of the accounts 1 Summary of Accounting charged agamst revenue as of this accounting treatment. The Policies incurred Commissioning outworking of this review has 1.1 General expenditure cannot be clearly resulted in the charging of $7.1M The general system of accounting 1dent1fted as contributing to the agamst revenue in 1983/84. In underlying the financ1al statements revenue-earning capability of the conjunction with the review, the en•cornp.as,;es the accrual basis and power station in future years. treatment bemg afforded the concern bas1s. Commissioning expenditure for identified storage, cancellation and related charges, The financial accounts have been recently constructed thermal power stations (Newport D, Yallourn W and was exammed and a decis1on taken prepared under the historical cost to complete the write-out program in convennon and have not been Jeeralang) has been charged against revenue as incurred and not 1983/84 ($5M) in lieu of the adjusted to take account of the scheduled 1985/86. This accelerated current cost of specific assets. carried forward as a cost to be amortised over either an arbitrary write-out added $3.3M to operating l.Z Accounting Standards/ penod or the projected life of the expenses in 1983/84. Regulations asset concerned. The underlying 1.3.4 Planning (Preliminary and The financial assumption that supports this Expenditures statements predominantly been practice is the uncertainty of the arismg from prepared in accordance with the value of the expenditure to and feasibility planning Annual . (Large Trading subsequent accounting periods. works that are part of day-to-day and Ratmg Bodies) actiVIties of the Commission are Regulations 1984 which mcorporate In respect of Loy Yang A power station, commissioning expenditure written off against revenues in the relevant Australlan Accounting year in which are incurred. Standards. totalled $36.9M of which $10.7M was incurred to 30 June 1983 and Where a study leads to a Pursuant to Clause 15(l)(b) of the in the 1982/83 Annual preliminary and Annual Reportmg Act 1983, the Report as deferred Loy Yang project are reviewed Commission has obtained from the llaison costs. During the period in in value, are added to Treasurer of Victoria certain which the total commissioning the cost of the capital project exemptions from compliance in expenditure was incurred, 308 GWh The amount expensed in 1983/84 1983/84 with the Regulations of was produced w1th a retail was $8.!M. including ' ·value some $20M. • Division 9, Regulation 24(l)(d) - 1.3.5 Material Price Variance contributions for works The total commissioning (Construction and Maintenance (amorllsallon of surcharge for expenditure of $36.9M has been Stocks) fmancmg of Jeeralang power station charged revenue m 1983/84 The standard for issues from offset against depreciation in lieu of on the of both prudence and store is on the latest order disclosure as revenue). consistency with past practice. price. The margin between the 1.3.2 Long Service Leave actual purchase and the issue • Division 12 depreciation (refer price 1s a material price Note 17) Provision is made m the accounts for accruing to vanance account. In addition, over- • Division 14 accounting for heads related to manufactured extractive industries (non-mineral employees to the estimated and the for stock have allocated to nature of brown coal). the variance at 30 June 1984 (not • Div!Sion 23, Regulallon 68 - Profit probabillty other employees becoming entitled to benefits on the prev1ously allocated) The $10.2M and Loss Statement disclosure: completion of ten years' service. balar.ce of the account at 30 Jur.e 1984 • Profit/loss arising from sale of has been distnbuted as follows assets (a sale of asset account is At 30 June 1984 the balance of the provision account of $97.4M was • $76M to appropriate operating not maintained). ($47M) and fixed asset ($2.9M) • Interest received (offset against equal to the estimated liab1Uty ($62.6M at 30 June 1983). accounts in accordance with the mterest expense). value of 1983/84 issues from store. 1.3 Abnormal Items During 1983/84 the following • $l.SM to construction and 1.3.1 Power Project Commissioning amounts were provided: maintenance stocks. Expenditures • $13M as a surcharge on the cost of • $LlM to appropriate fixed asset Power station projects labour, resulting m $10.2M bemg accounts, in respect of unissued commissioning 1s charged against revenue and $2.8M "spare equipment" material in amount and consists of to fixed assets. The balance of the variance account wages, salanes, consumables etc • $2l.8M direct to the Profit and Loss had previously been carried incurred for the and ' ' Statement, as a component of labour forward from year to year. and associated represent- development of ing the balance to fully 1.3.6 Hazelwood Power Station with equipment by nn•cn,ITlnrt provide for the at 30 June 1984. Units I, 2 and 4 Half Life personneL The costs may Reconstruction 1.3.3 Newport D "Delay" Costs mcurred for a substantial period Major reconstruction "'""'~-'"'"'-'·ll pnor to a project, in part or in its (Refer Note 8) during the period to 1983/84 entirety, being declared available A comprehensive review was on Units 1 and 2, totalling $62.8M, 1s for commercial service. Similar undertaken in 1983/84 of the expected to significantly increase costs are incurred for assets already component expenditures involved m the service lives of the units and has m commercial service and are the $9M capitalisation of delay costs consequently been capitalised. m 1982/83 and the appropriateness
22 Followmg a revtew m 1983/84 construction and net fixed assets. translation differences arising on the of the nature and scope of such The ratio is based on the preceding roll over of multi-currency loans and it was resolved that the balance date values with an translallon differences on on Unit 4 constituted a major appropnate allowance for significant repayments of loan nnnrl"'" maintenance overhaul and not a changes during the in relation recorded m a deferred major Consequently, to assets under and account for amortisation over $22.6M (including reversal of assets m service. remaining terms of the relevant 1982/83 capitalised expenditure) has The balance of the finance charges loans. Losses/gains realised on been charged against revenue in is distributed in accordance with the scheduled repayments are written 1983/84. function the asset supports. The out m the repayment year. Losses/ 1.4 Leases (Refer Note 13) distribution base was expanded in gains realised on major Accounting treatment for leases is in 1983/84 to include net service unscheduled repayments, net of compliance with Regulation 65. assets, effectively re-allocating prior amortisal!on, are also written out in the repayment year. The Commission classtfies lis leases SlL6M from the Profit and Loss into finance and leases, Statement to fixed assets. Dunng 1983/84 an unscheduled repayment was made of $ll8M, each bemg separate In respect of multi-unit power representing portion of a trade accounting treatment proJeCts, finance credit loan of $284M. The foreign for finance leases ts distributed in rm">rirtlrm expenditure on each "'"·""""'""' losses on repayment for owned assets, the to $19.2M. This amount has capitalisation of finance feature been offset against previous ceasing from the date of commercJal of the lease tisation of unrealised losses of service for each unit Such Amortisation of the and realised gams on rollovers of represents a departure from that is in line with practice. $8.6M, resulting in a net $7M be:ng For assets subject to sale and force when the most recent major power project, Yallourn W. Stage 2 expensed to the Profit and Loss leaseback r 23 • With the exception of projects These Funds are each help scheme whereby customers valued in excess of $0.5M, separate trust deeds requiring electricity supply may be depreciation commences the law relating to trusts. required to depostt with the following I All moneys, investments or other Commission all or part of the estt • The annual is not based on property in the Funds are held by the mated capital cost Such deposits cost less residual value. State Electnctty Commission of may be refundable in whole or m part • Only significant profits/losses on Victona as Trustee trust for the Refundable amounts are disposal of assets are mcluded in benefit of the or with interest, over spectfied the Profit and Loss Statement beneficiaries of the Funds. ten years. The balance of • Assets such as distribution and Prior to 1983/84, the Commission's au1vu•w~ held in this category is transmtssion lines, which must be contributions to the Funds were mcluded in the Balance Sheet item fully maintained, are deemed retamed until required by the ''Advances for Capital Works". Non continuing life assets and Trustee; such loans (which amounted refundable amounts are included m depreciatton is assessed usmg to $270.4M at 30 June 1983) being the Balance Sheet item "Contributions weighted average lives. recorded m the Commission's for Capital Works Reserve" and are adjustments are made for Balance Sheet as a non-current amortised over the life of the asset. retuement nor for continuance liability- "Advances for Capttal l.l3 Overhead (Services) Distribution service beyond the assessed lives. Works". Interest at a market rate, was A comprehensive review in 1983/84 of A major review was commenced paid on the outstanding balance. end use benefits derived from ullli dunng the year all During 1983/84 these retamed contri sation of service activllies, allocallon of depreciation and the butions were repaid to the Funds. to service activtties of a share of any departures from the ""''lJUilctu•ut will be quantified upon In accordance with the Fund's rules, finance charges, and direct an actuarial revtew was undertaken aaocation of some expenditures For assets subJeCt to sale and as at 30 June 1983, to determine the previously charged via serv1ce leaseback profits on state and sufficiency of the Funds. activities is estimated to have sale have been as The actuary reported a deficll in the benefited the Profit and Loss "Deferred Income Leased Plant Superannuation Fund of $67.5M Statement by some $40M w1th a and Equipment'' offset ($877M as at 30 June 1980). With corresponding increase m the charge agamst the value the to Fixed Assets. lease) and amortised over to the Employees' Retirement Benefit Fund. a defictt of $579M 1.14 Estimated Doubtful Debts remaining life of the asset was reported (as new Fund rules Note 2041) LS External Securities (Refer Note 5) were introduced on 2 September SECV has experienced an These are recorded at cost with a 1980, the 30 June 1980 valuallon results increasing level of bad debt write offs notation of market value for statistical are not compatible). To over a number of years, giving rise to purposes. eliminate these deficits the Com the need to ensure that the value of L9 Materials and Fuel (Refer Note 6) m!ssion is contributing as follows: accounts receivable are not Construction and maintenance (i) Superannuation Fund overstated in the Balance Sheet stocks, stocks of briquettes, An amount equal to 2% of salanes Consequently; a provision of $15M station fuels and appltances for over a penod of 15 years which is in has been established as at 30 June sale are valued at the lower of cost addttion to the ratio of 21 of employee 1984 based on a review of the bad or market value. contnbuhons (effective debt experience in recent years, UO Insurance Provision I July 1984) with supplementary m for (Refer Note 15) (ii) Employees' Retirement and from electricity supply regions. This provision is intended to cover Benefit Fund has been incorporated in nsks whtch the Commtsston carrtes An amount equal to 0.65% of uJJt::ic!llu'.Jexpenses in the Profit and through self insurance. An annual over a penod of 25 years Statement while the Balance charge is made to the overhead addilion to the ratio of 2:1 Sheet item, "Accounts Receivable", is account - insurance - and credited contributions (effective I July net of1he amount to the insurance provtsJOn to cover Ll5 Balance Sheet Classifications the equivalent amount of the In addition to the deficits basic benefits. the Commtssion a AE matenal amounts payable or that would have been paid insur habtlity to beneficiaries through the receivable m the year followmg the ance cover been obtained exterr:ally, Superannuation Fund, for pension balance date have been classified as In addition, provision ts made supplemental! on based on changes m current habtl!ties and current assets for a potential excess on the consumer price index. The respectively bushflre msurance cover actuary has calculated the present of $92.8M under a Commission would suffer in the value of these payments, in respect of note factltty have been event of future conflagrations. existmg and future beneficiaries, at c.Jct"":'~>" u as non-current liabiltties, as An amount of $65.5M, rerJreserltlng $540M. The Commission is meeting the facility has been underwritten the estimated balance these costs on a "pay as you go" basis and guaranteed under seal up to associated with the 1983 ~"0'"'"~.~. and in 1983/84 $ll.3M was charged 1987/88. has been transferred from the pro agamst revenue. l.l6 Recreation Leave vision and included in accour:ts payable Ll2 Self-Help Finance No provtswn has been mcluded m the Lll SEC Superannuation Fund and Notes 12 and 16) accounts for employees' entitlement Employees' Retirement and Benefit Commission finances part of its to as at 30 June 1984, Fund distnbut1on works program by a self- totalling 24 2 Re-statement of Profit and Loss Statement as ,t;li~CtllcltV $000 $000 $000 Business with Subsidiary Coal and Briquette Activities fuel charges, matenals and other expenses 271 837 64 938 Profit after finance charges and before appropriations 53 188 86 190 Add Alcoa (Portland) reimbursement 38 Other revenue Profit before extraordinary items 1ll 549 105 897 Extraordinary item: Provis1on for claims for bushfire losses Net for Year 111 549 60 897 from: for transfer to Consolidated Fund of V1ctona 4 063 ---- Total Available for Appropriation 1.5 612 60 897 Transferred to General Reserve 11 712 Las! Year 3 Finance Charges (Refer also notes LS. L6) $000 $000 $000 stock and debentures) 316 703 94 982 69 053 48 867 20 252 11 444 l 139 562 440 499 551 Amortisation of mscribed stock discount 18 003 4 868 4 719 37 007 39 276 622 318 543 546 Deduct Interest LeL.el\teu 13 592 18 824 Trade expenses/fees (net) 584 1 366 14 176 20 190 608 142 ······················- 523 356 Allocated to: Proflt and Loss Statement - Generation, transmission and d1stnbution 304 290 754 Coal production l3 21 121 Service faciiities 24 342 501 311 875 Fixed Assets - Dunng constructton - 242 500 181 128 10 870 29 976 618 377 Service facil!!les 211 481 523 356 25 Las1 Year 4 Depreciation (Refer also Note 1.7) $000 $000 $000 Depreciation in accordance with t-m:,-a""'~""ou has been allocated to Statement: QU;OU110>0>1V11 and distribution 172 281 146 075 Fixed Assets Component of charges for services contribut10ns for capital works Lil.st Yen.r $000 $000 $000 cost of mvestments to requirements and day to day Accounts concerned are hrw·'-'"'''m "·"'f-'v'"'" and securities 63 844 81 583 funds Yallourn community factlities tpE;ranmlatton funds held pending investment contractors' deposits 2 798 66 642 Represented by the following securities: market value $1.948M face value $2.625M 2 625 2 625 Other ···market value $22.120M face value $25 031M 25 031 26 581 ShorHerm ae]po:ms (State Government Cash Management Account, and other) 38 986 66 642 and Fuel (Refer also Note 1.9) $000 Construction Briquettes 8 Electncal and 1 660 Manufactures in progress l 625 54 566 26 NEW 'l'afAL AT 7 Fixed Assets 2XPEi'\Drr:._l~2 !983184 30/6;84 $000 $000 ---·--:--:------·····---·--·····----- Coal Production ····---·--··-----=:25 425 296 597* Briquette Productio11 --c--=-- 153 33Q69 ~r!quette Distribution and StoragE! _____ I ····---2 113 Thermal Power Production Hazel wood 16 671 338 536 Yallourn W 5 267 734 232 Yallourn 532 128 452 Morwell 62 55 201 Newport D 624 :99 647 Jeeralang 118 90 231 Hydro Power Production Dartmouth 22 41 819 Ktewa 14 64 801 Ei1don and Mounc:.:ta""'i"'n-'S'-'t.ocre'-'a"'m=s ______7 8 540 Loy Yang Project 591 05411 2 268 5531! Transmission System 86 763 985 990 Distribution System (including General Assets) 116 676 l 101 258 General Offices, stores, workshops 11 494 108 358 Mobile plant, motor vehicles 24 794 80 492* Accommodation, townships, hostels lO 1 928 Miscellaneous services (including roads, rallways, sewerage, electricity, telephones and fire services) 14 654 127 963* Total Cost of Fixed Assets 894 341 6 667 780 Ded11ct- provis10nfor depreciati(Jn/amortisa1iol1 ____ 1329 389t Depreciated Cost of Ftxed Assets 894 341 5 338 391 Add - development of open cuts - balance of cost 17 4f:l11 48 572# Total 911 825 5 386 963 development of Loy Yang Open Cut development of Loy Yang Open Cut 14 773 35 250 $000 *Includes leased Deduct - rellrements and ad;ustments dunng year--'--'-' Balance at 30 June 1984 :..asl Year 8 Deferred Charges $000 $000 $000 credit financing expenses/fees 1 exchange translation differences and realised gains/losses 9 power station investigations Deduct Trade credit expe:1se l 158 Newport power "delay'' costs Ch<3rgred 5 027 Foreign exchange translation differences charged to Profit and Loss Statement - charged Fixed Assets Loy Yang liaison costs charged to Profit and Loss Stateme:Jt Balance 30 June 1984 Represented by - Deferred Newport power station costs Deferred financing costs 10 866 Deferred Loy Yang Unamortised foreign Future power station 27 9 Deferred Debtors $000 Latrobe Valley Water and Sewerage Board advance 465 23 923 Real estate debtors 885 1 024 Other 39 24 986 10 Inscribed Stock and Debentures $000 Balance at 30 June Decrease m liabiltty to foreign exchange translation differences at 30 June 1984 Issues during year ended 30 June 1984 Deduct loans matured during the year* Add inscribed stock discount at 30 June 1984 Deduct inscribed stock discount at 30 June 1984 Balance at 30 June 1984 3 401 587 (Current liability)** (298 586) (Non-current llability) (3 103 00 l) As at 30 June 1984, the Commission's stock and debenture llabtllty in years of maturity ts: 1984/85 320 1985/86 409 1986/87 393 1987/88 436 1988!89 149 640 1989/90 153 293 1990/91 275 298 1991192 158 047 1 351 924 ll Trust Deposits and Funds $000 Customers' and contractors' deposits Provtsion for replacement of Yallourn community ""~'"·''~~ Superannuallon funds held pending investment by Super Custor:-:ers TotE\ I 12 Advances for Capital Works (Refer also Note 1.12) a:mJ2110!~ a.r::d c!hers (Includes: Extension Deposits, Trade Credit Financing, Bank Loans, F..tnds Promissory Notes) $000 $000 $000 -~········-········-- ... ------··~ Balance at 30 June 1983 270 373 I 140 076 I 410 449 Add June 1984 during year ended 30 June 1984 270 Deduct- Repayments dunng year ended 30 June 1984 270 373 720 910 Decrease in foreign exchange translallon dtfferences at 30 June 1984 --········- ···········--15 012 270 373 Balance at 30 June 1984 (243 523) (! 129 300) 28 13 Lease Liability (Refer also Note 1.4) $000 for 1983/84 Deduct - Repayments during year Balance at 30 June 1984 (Current llabllity) (6 623) (Non-current liability) (115 131) Asset/Liability Reconciliation: Leased plant and equipment at 30 June 1983 85 583 Add 1982/83 asset restatement 236 Profits on sale and leaseback Leased plant and equipment at 30 June 1984 Deduct Lease payments Lease liability at 30 June 1984 Finance Lease Commitments: 1984/85 6 623 1985/86 8 456 1986/87 9 822 1987/88 15 1988/89 10 1989/90 9 Later Years 61 190 141\dvances by Government $000 Balance at 30 Deduct - Repayments and amounts recalled Balance at 30 June 1984 1970 were prev10us:y to be repaid over periods of to National Debt Sinkmg Fund. Advances subsequent the Of the ;c>(l'.!='l T\f'CO•" advances LV> '"''"uo•ccu from I }\lly ccuJ.J:>c.•auoucJu of pre-1970 the interest has increased from ended December 1983 and to the payment of an additional $L6M interest 15 Insurance Provision (Refer also Note 1.10) $000 $000 Balance at 57 262 Add- • Charge for self-msurance nsks 4 750 • Provision for claims for bushfire losses 15 000 • from underwriters (bushfires) 75 000 from underwnters (other) Deduct Losses/Costs: • Bushfires 54 584 • Accrual for balance of bushfire payment in 1984/85 65 500 • Other 464 120 548 Balance at 30 June !984 29 16 Contributions for Capital Works {Refer also Note 1.12) $000 Add Contributions· received during year ended 30 June 1984 18 618 183 246 Deduct- Amortisation of contributions for year ended 30 June 1984 - transferred to Proftt and Loss Statement Balance at 30 June 1984 Last '{ear 17 Statement of Source and Application of Funds Note $000 $000 $000 for the year ended 30 June 1984 _____... __,, __ .. , __,_ ... __.. ~·--.. --~ ..-- ... --~ ..-- ... -..-- ... Source of Funds Funds inflmv l 298 637 Less - funds outflow Profit Before Extraordmary Items 111 549 105 897 Add .. non-fund items Depreciation (refer Profit and Loss Statement) 172 281 146 075 Provision for long service leave 34 808 9 000 ProVISiOn for insurance 19 750 9 750 Deferred charges 25 827 16 187 Amortisation inscribed stock discount 23 883 6 968 Appropnat!on for transfer to Consolidated Fund of V1ctona brown coal royalty 3 171 Amortisation - contributions for capital works Total funds derived from operations 384 712 294 097 Decrease in workmg capital (refer Statement of Working Capital*) 27 774 Payment by deferred debtors 3 005 923 Reimbursement from msurance underwriters 15 75 093 Proceeds from sale of fixed assets 8 354 5 076 Additwnallease liability 13 233 41 578 Repayment of securities 43 384 Reduction of deferred charges lO 551 Additional capital funds - Advances for capital works 12 940 305 372 481 Contributions for capital works 16 18 618 14 276 Advances by Government 14 490 Inscnbed stock and debentures ...l ____ 066 776 . 945445 2 025 699 External contnbutwns to Nal!onal Debt Sinking Fund .Application of Funds Increase in working capital (refer Statement of Workmg Cap1tal*) 190 558 Additional deferred debtors 840 2 Oil Additional deferred charges 93 057 Expenditure on fixed assets and development of open cuts 7 911 825 1047701 Deduct Unrealised foreign exchange translation differences capttaltsed 6 872 Expend1ture temporarily capital!sed 3 901 378 I 035 852 Payment of Publ!c Authority Dividend 103 900 82 500 Additional inscribed stock discount 77 806 Repayment of capital funds - Advances for capital works 12 977 930 Inscribed stock and debentures 296 Advances by Government 14 299 138 Repayment of acquisition loans 22 Repayment of lease l!abihty 13 4 791 Claims on m,surance provision (paid and payable) 15 10 582 -----~--- 30 *Statement of Working Capital for the year ended 30 June 1984 1984 1983 $000 $000 Current Assets Cash advances 46 + l 1 Shortterm deposits and securities 583 + 75 Accounts receivable 840 + + 13 666 Estimated income from unread electricity consumptwn 104 830 + 15 633 Matenals and fuel at cost 54 566 + 13 702 Securities trust deposits and funds Total Assets included in Working Capital 361 017 492 + ll9 387 Advances to Latrobe Valley Water and Sewerage Board + l 565 Real estate debtors 488 135 + 138 Falls Creek Tourist Area Management Committee Total Current Assets Current Liabilities Bank overdraft 8 277 12 050 3 773 8 044 Bil1s payable - 46 700 Accounts payable and miscellaneous accruals 209 506 + 18 456 54 997 Interest accrued 123 205 + 12 319 + 35 752 Trust depoSJts and funds 8 415 + 280 + 2 818 ---- -·--- Total Liabilities included in Working Capital 349 403 322 121 + 27 282 71 171 Acquisillon loans from municipalilles 7 + 7 7 Loans for capital works 243 523 84 983 +158540 - 64 268 Lease liability 6 623 5 783 + 840 + 2 046 Inscribed stock and debentures (net) 298 586 271 014 + 27 572 + 959 Advances by Government 9 601 lO 580 283 Deferred income leased plant and eqmpment 3 135 ~·····-- -····-- Total Current Liabilities Net change in Working Capital (excluding 1tems shovvn separately in statement) 27 774 + i90 558 18 Commitments taken up in the accounts are outstanding contract commitments for capital expenditure, est1mated at S891M $1779M). 19 Unsolicited Money Claims Not taken up m the accounts are cla1ms outs1de the normal terms of contracts amounting to $47.0M. L1kely payments amount to $15 3M The cla1rns prmcJpally to capllal works, consequently thetr inclusion in the Fmanc1al Statements would not have a matenal1mpact on the Profit and Loss Statement for 1983/84. 20 Financial Statements: Miscellaneous disclosures 20.1 Sales to Electricity Commission of NSW (ECNSW) and Snowy Mountains Hydro Electric Authority (SMHEA) (SIOM). Electncity revenue mcludes revenue from sale of electncity to ECNSW and SMHEA Qindabyne Pump), previously netted against purchased electricity: 20.2 Alcoa (Portland) Reimbursement ($38.6M) Reimbursement from the Victorian Government of holding and minimum charges forgone as a result of the delay in the commencement of operations at the Alcoa Project, Portland. 31 20.3 Other Revenue Comprises: $000 Amortisation of contributions for capital works * 3 387 Merchandising and appliance servicing 1 10 092 Dtsposals sales 2 767 Commonwealth for apprentices m full-time training and scheme rebates 2 373 National Energy Research Development and ,** Demonstral!on Program 515 Electrical mspection - fees Electrolysts investiga!lon expenses recovered Dividends - Australlan Char Ply Ltd 20.4 Materials, Services and Miscellaneous Expenditure 20.4.1 Bad Debts Wntten Off (Refer also Note !.14) The amounts m respect of bad debts were wntten off to the Profit and Loss Statement as operating $000 I 448 assocmted with commJttee of mqlilry mto electricity generation and the sharing of power resources m SE Australia (Zeidler Inquiry) 226 Damage to Commission property 90 Merchand1smg/appllance servicmg 13 Other *;982/83 $!!M 1981/82 $0.6M 20.4.2 Audltor-General During 1983/84 an amount of $0.092M. representing costs for the 1982/83 audit program, was paid to the Aildltor General. 20.4.3 Board of Commissioners Emoluments paid to the Board of Comm:ssioners (mcluding salary paid to full lime member) totalled SO.l42M in 1983/84. 20.5 Victorian Energy Consumption Levy Based on 11.1461 cents per gigajoule of consumpllon, effective from 1 July 1983 (previously 10 cents per g1gajoule 1 October 1982 to 30 June 20.6 Victorian Brown Coal Royalty An amount of $6.2M. based on 2.4 cents per g1ga]oule umt of coal produced in was patd to the State Consolidated Fund during the year in accordance with the SEC (Brown Coal Royalty) 1983 and disclosed as an operating expense. An amount of $4JM wh1ch was appropriated m 1982/83 for payrr.ent m 1983/84 has been wr:tten back to the Profit and Loss Stateme:Jt from reserves. As a consequence of Act, the appropnated provis1on for payment of the royalty 1s now expensed in the Statement same year. 20.7 Interest Received Interest expense, as per the Profit and Loss Statement is net of $13.6M mterest received on short-term liquidity investments. 20.8 Public Authority Dividend Authonty payment of the above d1vidend is the Pubhc Authorities (Dividends) Act 1983. ~hior•+m·o of the Act is "to ensure that the people of Victoria receive a reasonable rate of return on the1r certam commerc1al pub!ic authont1es of this State". 1-'H:'"'""u ...,c, a dividend 5% of the public equity of the authonty as is determined by the after Minister responsible f.:)r the public authority; publ;c equity being: of operatmg assets less to:al debt However, for 1983/84 the that, the case of the State Electricity Commission of V1ctoria, a dividend of $103.9M would be pa1d. was denved the 1983/84 Victonan State Budget determinations, viz., a mimmum base diVidend of be patd plus based on expectation of a 2% load growth during 1983/84 that would amount as a return on equity The amount paid is the Profit and Loss Statement as an approprianon. The comparable payment in 1982/83 was $82.5M statutory contribution to the Fund of Victorif representmg 7.72% of 1981182 revenue, as agreed with :he Treasurer of Vtc:ona. Revenue Statemr also included a deduction of $58.8M for the relevant provisiOn made in 1981182 for such paymentJ 20.9 Prepayments Accounts payable and miscellaneous accruals of $209.5M (current liability) is net of $5.8M prepayments. 32 Throughout the year there was Industrial Democracy New Technology continuing emphasis on The Industrial Democracy As reported last year, the employee and union participation Tripartite Steering Committee, Commission and the Municipal in working parties, tripartite consisting of Government, union Officers' Association entered into committees and discussion and Commission representatives, a Screen-Based Equipment groups Regular consultation with commenced an Industrial Agreement in early 1983 and a unions and associations and the Democracy Project to explore the Joint Steering Committee has assistance of the Ministry of scope for involving employees to been established to facilitate and Industrial Affairs and the State a greater extent in the monitor the implementation of a Government's Industrial Relations Commission's decision-making Screen·Based Equipment Code Task Force made a significant processes. The focus of the of Practice. contribution to the maintenance project was to raise the Health and Safety of good employee relat10ns awareness of Comm1ss1on Agreement w1thm the orgamsat1on. employees m mdustnal . An historic agreement marking a Although the number of . democracy and to assess thetr new approach to dealing with manhours lost through mdustnal educatiOn and trammg needs. health and safety matters in the action was higher than last year, The Committee IS currently . Commission was issued in April the figure was well below the rev1ewmg the recommendations 1983 average over the last few years. ansmg from an evaluation of the · A total of 22 855 manhours lost project. The Health and Safety Agreement is between the this financial year represents an Power Industry Approach Commission, the Victorian average of one man hour lost for Progress continues on the Trades Hall Council and unions. each Comm1ss1on employee. establishment of a power As well as the main parties, Wages and Salaries mdustry approach on pay rates it was signed by 24 individual National Wage Case decisions and conditions of employment umon and staff associat1on resulted in mcreases of 4.3% affecting all Commission representatives. from 6 October 1983 and a employees. On 9 April 1984, the The Commission considers that further 4.1% from 6 Apnl 1984. President of the Australian The average wage and salary Conciliation and Arbitration health and safe}Y is the joint bill increased by 4.0% (187% last Commission, Sir John Moore, responstbillty 0 management year). referred the draft agreement and and employees a~d that the best • • associated anomalies to a Full results m thls area are achieved Advisory Committee Bench of the Australian by the process of consultatiOn An Adv1sory Committee Conciliation and Arbitration and participation. compnsmg representatl:es of the Commission. Following six days The Agreement seeks to involve CommiSSion, the Vtctonan . of inspections to give an actively all employees m the Trades Hall Council and umons overview of Commission effort to prevent accidents and and associations was recently activities, further submissions the two-way communication on formed to discuss.matters of were made on 27 August 1984. health and safety tt provides is mutual mterest It IS expected . necessary to achieve this goal that the Committee will support Sh1ft Work existing consultative mechanisms The work of the Joint Union/ and help improve employee Commission Shiftwork Working relations overall within the Party continued and its structure Commission. has been expanded to ensure all areas of shiftwork management are represented Local discussion groups undertook the task of identifying shiftwork related problems within their own areas. A Management Advisory Committee comprising members of the Commission's Management was also formed to demonstrate the Commission's commitment to ensuring this issue is efficiently and effectively supported 33 he electrictty supply pos1t1on The Latrobe Valley brown coal fired generation of 18 554 GWh was 176 GWh less than 1982/83, but approximately 2100 GWh less than target mainly because of delays in the commissioning of Loy Yang A Unit 2, reconstruction and other outages at Hazelwood and offloading arising from coal supply problems during the industrial dispute regarding open cut manning levels. The reduced level of Latrobe Valley brown coal-fired generation, when coupled with the increased system demand, necessitated increased gas-fired N n generation and imports from Snowy and the Electricity Commission of New South Wales. DATE MW GWh The electricity supply position The high level of imports from Cold Winter stabilised this year, despite a Snowy resulted in an overdraw Day 317184 4 837 96.8 significant upturn in demand in by the Commission of approxi- Miid Winter the latter half of 1983. System mately 80 GWh at 30 April 1984 Day 12/6/84 4 217 83.3 annual energy requirements (compared with 140 GWh surplus Day0Warm Summer 20/ 2/84 3 998 78.9 were 684 GWh (27%) above last at 30 April 1983). Mild Summer year. The extreme drought conditions Day 13/2/84 3 419 72.3 It was necessary to impose experienced in recent years 0 1984 Summer was unusually mild. electricity restrictions from abated following good rainfall in The diagram illustrates the extent to which 20-22 June 1984 because of an the irrigation areas and storage heating demand on cold wet days and the mdustnal dispute m the Latrobe catchments in the latter half of air-conditioning demand on hot summer Valley regarding open cut 1983. Storages are now much demanddays can (upcause to approxtmately a maJor chang 16%e m system manning. levels. · This resulted. in hi.gher than I·n recent years, increase). a reduction m energy reqUire- enabling a significant andThe seawmtersonal ts alsopattern evtdent. between summer ments ·of · approximately· · 31 GWh.1 improvement in short term hydro- This extreme variability presents a ElectriCity restnctions were ast electric resources. difficult operating problem as plant must imposed on 22 July 1981. . Following the successful always be kept available to cover such f h contingencies . On a number o ot er occasiOns commissioning of Loy Yang A Demand figures include Alcoa generatton when the system operated close Unit 2, the outlook for the coming at Anglesea. to limits, use was made of part of year is for a generally adequate the Electncity Commission of generation capability to cover New South Wales' Snowy normal fluctuations in the capacity entitlements to maintain demand/supply situation. adequate reserves. However, there is an increasing Loy Yang A Unit 2 was first percentage of larger generating synchronised to the system on and coal supply units being 14 February 1984, and operated installed in a system which has on full load (500 MW) for the an increasing proportion of first time on 17 March. weather-sensitive demand. This Commercial service commenced may result in occasional critical on 30 May 1984. situations when major breakdowns coincide with adverse weather and high demand. 34 roduction and production services Max1mum Output Electricity Ach1eved by Power Stat1ons Each Plar.t GWh Ger.erated 1983/84 1982/83 1983/84 1982/83 30June (27/6/83) MW MW Maximum MW for 48370 t,497 Hazel wood l 210 l 250 6 829 6 697 Winter (3/7/84) (27/6/83) Actual Plant Yallourn 408 426 2 042 2 059 Brown Coal of Thermal Max1mum Stations Demand 5412 18 Yallourn W l 472 1480 8 248 8882 to 30 June (1917/83) (2'l/6/83) Morwell 160 162 1 059 1 092 Loy Yang A 534 376 ------·· Sub-total 18 554 18 730 (72%) (74%) Newport D 501 500 3 210 2 626 ··~- Spencer Street 60 60 2 6 ------505 512 Hydro Elldon-Rubicon Stations (incl. 102 122 189 258 Cairn Dartmouth 108 156 6 485 systems. Sub-total 532 930 Power Station Operations (2%) (4%) All available brown coal and gas generating plant was scheduled Stations I 455 2 077 l 594 to minimise the draw on storable Bodiest (8%) (6%) hydro resources. There were periods when gas-fired plant (100%) (lOO%) was shut down to take advantage -----~~~------of 'forced water releases for Generated for Export and irrigation purposes. Jeeralang Pumped Storage Operation 520 737 and Newport D (on partial load) Victorian System Requirement 459 were also held as energy reserve for the majority of weekends and public holidays because of the lower demand at those llmes. Newport D performance and reliability continued to improve during the year and the station contributed 3210 GWh (73% capacity factor), 11.9% of the total annual system requirement Oil firing was required on some of the occasions when gas supply was restricted in accordance w1th the gas supply agreement 35 Jeeralang generation for the year Excavation of Yallourn-seam coal Major outages of M or well was 1377 GWh (approximately which runs through the north-west production centre generating 33% capacity factor). During the corner of the Morwell open cut plant included a 37-week outage year the station was held for continued. Total Yallourn-seam ofHazelwood Unit 4 for a major energy reserve in periods of low coal excavated for the year was overhaul in addition to Hazelwood demand and was shut down at 696 000 tonnes, bringing the Unit 1 remaining out of service for times to accept interchange from progressive total excavated to six months to December 1983 for New South Wales. In addition, l 619 000 tonnes. reconstruction. Jeeralang experienced reduced Artesian dewatering to reduce Yallourn Production Centre availability at times because of pressure in the two aquifers • Yallourn Open Cut gas supply restrictions. below the open cut continued Coal reserves were increased by The briquette demand of 816 000 throughout the year with 28 million 9.5 million tonnes to 57.5 million tonnes was 66 000 tonnes higher cubic metres being discharged to tonnes because additional coal than the previous year. The the Hazelwood cooling pond. has become accessible following increase was mainly due to the • Hazelwood Power Station the replacement of railways by auxiliary fuel requirements During the year work continued conveyors. This increase has during the Loy Yang A Unit 2 on the Hazel wood power station occurred despite a reduced commissiomng. reconstruction program which overburden removal program The total output of 532 GWh from involves major works in boiler (down 1.3 million cubic metres) the Commission's hydro-electric components, instrumentation, caused by a major overhaul to the stations was about 40% below the precipitators, chimney restoration overburden dredger Quly/ August long-term average The lower and turbines. The work is 1983) and industrial bans Qune output was due mainly to the designed to improve the output 1984). absence of irrigation releases and reliability of the older units. Dredger No 6. was out of operation from Dartmouth Reservoir and the The reconstruction works for five months from September low level of irrigation releases program commenced in July 1981 1983 to January 1984 to allow from Eildon. and was intended to cover three replacement of the slew ball path. Morwell Production Centre units and be completed by June • Morwell Open Cut 1982. Protracted industrial With the installation of trunk problems with the contract conveyors in the pivot area of the workforce on the boiler delayed Electricity production Morwell open c ut complete, all the program significantly with the 1975-1984 dredgers are now operating in the result that Unit 2 was completed in • oil ('OOO)GWh 28 south-west field. Development will June 1983, Unit l was completed in • Briquettes continue in this field until 1993 December 1983 and the contract Gas with the trunk conveyors options for the third unit (Unit 4) D Hydro extending along the southern were withdrawn. With this work, Brown coal benches of the open cut. the downward trend in The first stage of upgrading and Hazel wood power station output uprating conveyors to improve has been halted and a general reliability of supply to Hazel wood Improvement m energy power station has been production 1s envisaged for the completed. forthcoming year. Total exposed coal reserves • Morwell Briquette and Power decreased slightly from 27.6 Reduced generation at Morwell million tonnes to 27.1 million bnquette factory and power tonnes with the continued station resulted from some progress of overburden removal deterioration in plant conditions despite operational problems with due to age and lower than . the No. 10 dredger system in optimum bnquette production. hand ling d ifficult fire-hole Briquette production rose materials. · marginally with 760 000 tonnes being produced compared with 745 000 tonnes in 1982/83. 36 The railways within the Yallourn open cut have been phased out, Brown Coal with the final train being run on 7 Coa l Won Overburden Distribution May 1984. However trains will Mt Removed m' million Power Gen. Br iquetting Sales continue to be used on the Mt Mt Mt interconnecting railway to 82/83 83184 82183 83184 82/83 83/84 82/83 83/84 82/83 83/84 transport coal to the Morwell Yallourn 21.4 19.7 5.6 4.3 19.6 17.8 briquette factory 1.8 1.9 Work has commenced on the east Morwell 11.8 11.7 2.4 2.4 11.6 11 .7 0.2 field extensions of the Yallourn YalL Nth 0.2 0.2 - 0.2* 0.2* open cut with a contract being let Loy Yang 0.4 5.3 5.7 0.4 for earthworks on the Morwell Total 33.4 32.0 13.3 12.4 31.2 29.9 2.0 1.9 0.2 0.2 River diversion and the conveyor embankment from the raw coal *Australian Paper Manufacturers Ltd. Maryvale. bunker to the east field. In 1984/85, the Blue Lagoon is to be drained in preparation for the removal in 1985/86 of material from part of the old Yallourn open cut overburden dump to enable construction oftrackwork for the new interconnecting railway route. • Yallourn W Power Station Yallourn W power station produced 8 248 GWh representing a 65% capacity factor. Outstanding contract work and major maintenance effort during the year is expected to improve the performance for Brown coal production Yallourn W power station in the 1954-1984 forthcoming year. • LoyYang Megatonnes 40 • Yallourn Power Station • Morwell Yallourn C, D and E power D Yalloum North stations operated in accordance • Yalloum with the plant program Yallourn E2 boiler modulating control system was replaced with a micro-processor-based distributed digital control system This completed the refitting of the control systems for Yallourn E power station, with El control system having been commissioned in February 1983 and being the largest boiler in Australia, at that time, to have a complete modulating control system implemented with distributed digital controls. This equipment, which was designed, installed and commissioned by Commission personnel, allows modifications or additions to the control strategy to be easily configured in software instead of by the requirement to effect changes in hard wiring. 37 The Minister for Minerals and • Loy Yang A Power Station Briquettes Energy announced on 27 March Commissioning of Loy Yang A Briquette production (kt) for the 1984 the retirement of the Unit 2 proceeded satisfactorily last five years was - Yallourn C power station (which with some. delays resulting from kt has been capable of producing an Industrial dispute affecting --··--·· 1979-80 I 253 only 80 MW in recent times). The coal supply from Loy Yang ··------closure will be implemented open cut. 1980-81 I 081 over a 12-month period and will As a result of the Loy Yang Cost result in an estimated savings to Inquiry, the Victorian 1981-82 993 the Commission of $29.4 M Government set a target for the ··~--··--·· -- during the first two years after Loy Yang A power station of a 1982-83 745 . -··-~··--··- closure. The closure of the power minimum 75% available capacity 1983-84 760 station will be offset by the new factor over the llfe of the station. plant at Loy Yang and by A task force review has Drilling and Exploration enhanced performance from determined that, based on a four During the year, some 11 200 existmg unit plant at Hazelwood year cycle for programmed metres of provmg drilling was and Yallourn W power stations. major outages for turbine carried out in the Flynn, Approximately 250 personnel will maintenance, the Government's Maryvale and Traralgon areas be redeployed from Yallourn C target of 75% available capacity as part of the 10-year program power station. In order to ensure factor should be achievable. for analysis of Latrobe Valley the successful redeployment of • Newport D Power Station coals. In addition, some 4 700 all personnel involved, an The performance of Newport D metres of drilling was implementation committee has power station continued to undertaken in the Latrobe Valley been established consisting of improve with an available for regional groundwater and representatives from the power capacity factor of 85% for the stratigraphic purposes. station, the Commission and the year. Operational dnlling continued unions involved in the closure. The primary role of the with bores being established in Major Maintenance and existing open cuts for dewatering committee is to oversee the Modification Squad and coal quality investigation redeployment of personnel into A Major Maintenance and Additional horizontal drains were suitable positions within the Modification Squad was formed Commission. in late 1983 following agreement drilled to improve batter stability: between Government, unions A series of 230 mm diameter Major outages of Yallourn and the Commission for the bores was drilled in the production centre included an purpose of undertaking major Yallourn/Morwell area to obtain 11-week overhaul for Yallourn W maintenance and modification information on the physical Unit 3, a 13-week overhaul for work on production plant. nature of the coal. Four large Yallourn W Unit I and a 17-week diameter bores were drilled at overhaul for Yallourn E power The Squad is a mobile station Unit 2 maintenance workforce capable Loy Yang to obtain bulk coal of being moved as a whole or in samples for coal quality Loy Yang Production small parties to any location evaluation. Centre within the Latrobe Valley: It has • Loy Yang Open Cut successfully undertaken a major Dredger No 14 continued works program on Unit 4 boiler overburden removal at the Loy at Hazelwood power station. Yang open cut. In March 1984, Current work involves a program dredger No 15 commenced of rebuilding the electrostatic ov€rburden operation thereby dust precipitators of Stages 3 and allowing dredger No 14 to be 4 at Hazelwood power station to used for coal-winning activities comply with EPA licence and open cut development requirements. The program for Regular coal supply for Loy Yang Unit 5 has commenced and it is A power station, Unit 2, expected that work will be commenced m May 1984. completed by mid-1985. Other Exposed coal reserves at 30 future work includes the renewal June 1984 totalled 3.4 million of pressure part components, tonnes commencing with the Hazelwood power station Unit 3 low temperature economiser. 38 enerating plant and transmission line development program As shown in the followmg schedule, the approved plans for Installed Generating Plant expansion of Victoria's electricity ~--·--·-·-···-~·-~· generating system provide for the Fmancial Plant Add1tions MW Total Main Transmission total installed capac ty to reach ;:ear . Less Retnements Installed Line Works' 1 Plant 8103 MW by 1989. This 33f~~~ represents an mcrease of 18% on ~;acity' the capacity of the present -;();-1:1 -~,--:::::--;:r:·~-~c;;----··-·;:; ~;::-;;-~~~~:..::- ·:--·-=~·-~-=-::-:c-:=·,~'C"·-·-·----··~ system. 5 00 6 8 4 4 Two Yallourn· d C power· station is to be SydenhamMoorabool to(each 63 retlre withm 12 months of April km). Double circuit 1984. Negotiations with affected 500 kV line Moorabool unions are in progress. The standby turbo-generators at to Portland (272 km). Yallourn B power station, which First 500 kV line Loy were supplied using excess Yang to Hazelwood (16 steam from Yallourn C and D, km). will be included in this - 60 6603 Second 500 kV line retirement program. (retirement) Loy Yang to Consideration is also being given Yallourn C and Hazelwood (16 km). to the appropriate time for the associated Second 500 kV line retirement of Yallourn D power B station South Morang to station. turbo-generators Sydenham (26 km). In addition, the contract for the (retirement) operation of Spencer Street C Yang A power station is to be terminated 1 in September 1984. Demolition of old generating plant at Newport 1987 Lay Yang A ----- 500-7603--Third 500 kV line Lay is proceeding to a revised Unit 3 Yang to Hazelwood (16 schedule for completion m April km). Fourth 500 kV 1985. lme Haze1wood to Melbourne (via The first unit of the Loy Yang A Cranbourne) (172 km), power station was first 500 kV line synchronised to the system in Coldstream to South February 1984 and was available for operation during the 1984 ~---- _____ Morang (30.4 km) -~--~76oT-Tzo kvlir!el:illtrob'e- winter. The construction program 1988 for the later Loy Yang A power to Bmrnsda1e station umts is proceeding on schedule. This program will Lay Yang A 500 provide for adequate energy Unit 4 reserves in the short-to medium 1990 8103 term to cover possible delays in the installation program, poorer Plant Development Program to 1990 performance of existing plant ·Total installed plant capacity ava1lable to Victona IS the manufacturers' max1mum contmuous of generator sets, V1ctoria's entitlement from than the target availability and Hume plant capacity is subject to imposed from time to the export of energy to South amb1ent temperature, boiler circulating water, stack emtssions. Australia and possibly (steam and wate~ total shown would not usually be at Tasmania. · the lime system ma:•mrrun The Lay Yang B power station An add1honal !50 MW capacity IS available at Angle sea power station, owned and program is under re'.'iew to operated by J\lcoa of Australia L.td ensure the most appropriate 'Other mam transmission line works during the period to 1990 include re111fcrcement of the 220 kV grid and the metropohtan 220 kV transmission expansion of the system to match system the forecast load growth The the No 2 urut of Loy Yang A power presently approved Lay Yang B stat:on \"J as I unit program provides for steam to turbine of the first unit by November 1990. 40 es1gn and construction Loy Yang Project The tie between program Loy Yang 1\ Power Station The planned Loy Yang project controls and cost controls has The first generating unit of Loy comprises a new brown coal been strengthened to enable Yang A power station open cut and two power stations identification of the minimum commenced commercial service (A and B), each containing four cost solutions to program shifts. on 30 May 1984 to meet the 500 megawatt generating units, As part of the cost control winter load of 1984, as planned. and associated works. processes applying to the Loy This major project milestone was With the introduction of the Yang pro]ect, reviews of the complemented by other Project Management Structure in completed cost of the project significant achievements, which 1981, a wide-ranging set of were undertaken. The results of included the energisation of the controls on project program, cost these reviews indicate that the second 500 kV transmission line and performance have been objective of maintaining the from Loy Yang power station to implemented. completed capital cost of the Hazelwood terminal station and The co-ordination programs have project at the 1982 estimate commercial operation of the increased significantly the level adjusted by Melbourne CPI has second dredger, No 15. of detail covered, and this has been achieved at this stage. Progress on the works for the improved the efficiency of the The Loy Yang A power station - remaining three units of the Commission's construction Units 1 and 2 on the left and power station is being managed process. Units 3 and 4 on the right. to closer align plant takeover Loy Yang A Units 3 and 4 under constructwn. with Commission needs to meet load demand. Work on Unit l. the second unit programmed for commercial service, is progressing satisfactorily towards initial operation early next year. Boiler erection is generally complete except for insulation and cladding. The turbo-generator is fully assembled and the station electrical system is m service. Commissioning of Unit I plant has commenced. Progress with Units 3 and 4 1s on schedule for first steam-to turbine dates of November 1986 and May 1988 respectively: Loy Yang B Power Station During the year, work on the Loy Yang B power stahon has been limited to essential design development, and value engineering and design studies to ensure that the most economical, technically acceptable plant is provided. The Loy Yang B project controls progressed with the preparation of the Base! me Control Estimate. The draft Project Defmition document, the Station Reference Design and the Control Estimate form the information base for detailed project management, engineering, procurement and project control. Above: IJoy Yang A Umt 2 turbo-generator of 500 MW capacity commenced commerc1al service on 30 May 1984. Right: As a constructiOn aid, the Commission's model technicians translate drawings of projects into three dimensional models a section of the Loy Yang A power station modeL 42 Loy Yang A Unit l of 500 MW capacity is planned for operatiOn early m 1985. Work on the turbo· generator is now complete except for insulation and claddmg coal bunker were achieved in Yallourn Low Quality November 1983. Coal operations Water Pumping Station have since concentrated on the The Yallourn low quality water excavation of a gullet in pumping station is being preparation for the installation of commissioned. When the second series of conveyors. operational, 1t will provide Installation of these conveyors another source of water to the was completed in July 1984. Loy Yang high~level reservoir, in The plant control and data addition to the water being logging system was taken over in pumped from the Hazel wood November 1983 after the cooling pond. The pumping completion of on-site acceptance station will also be used as a tests. The system is performing back~up fire service pumpmg satisfactorily and will be station for the Yallourn open cut expanded as additional plant 1s and may also deliver water to the progressively installed in the Hazelwood cooling pond open cut Morwell Open Cut The power distribullon system Operations in the Morwell open was extended, including the cut continued through the south- provision of power distribution west field. The overburden Commitment of expenditure nas centres, as new plant was dredger is expected to reach the been delayed and extensive commissioned and placed mto final boundary by 1993. reviews of project strategy plans service in the open cut. Investigations have commenced have been undertaken to retain Yallourn Open Cut regardmg the development ofthe maximum flexibility in program Rising conveyor Y339 contmued south-east field, wh1ch IS the fmal dates, having regard to the latest to operate satisfactorily with development block of th1s open load forecasts. trunk conveyors Y337 and Y338 cut Loy Yang Open Cut to the raw coal bunker. The Morwell Coal Outloading Dredger No 14 and travelling fourth conveyor route to the raw Facilities stacker TS4 contmued with coal bunker was established An outloading hopper has been overburden removal during when conveyors Y347 and Y348 constructed at the Morwell 1983/84. were taken over during May briquette factory to load coal into Dredger No 15 was taken over in 1984. road haulage trucks for use in December 1983 and commenced Dredger No 24 was erected the coal-to-oil conversion pilot overburden operat10ns in March during 1983/84 and was taken plant currently under 1984, thereby allowing dredger over from the contractor on construction. The plant is being No 14 to be used for coal schedule in April 1984. The established with the co-operation winning and open cut dredger is now m commerc1al of the Australian and Japanese development Rising conveyor service following a union dispute Governments. Ll20 commenced operation in which delayed the machine Program Budgeting August 1984. being moved from its erection A pilot study on program Conveyor L200 has been site. budgeting was introduced into relocated in the open cut and is Excavation in the Yallourn open the Design and Construction operating in conjunction with cut has continued through the Group during the year and this conveyor L215 and dredger No 14 township field. The overburden has now been expanded to to increase coal availability to dredger 1s expected to reach the enable evaluation of its efficiency the Loy Yang A power station. northern lim1t of the field by 1990. Program budgeting entails the Detailed design work on Yallourn East Field deta1led breakdown of the work dredger No 16 is almost The transfer of operations from mto well-defmed packages so complete and manufacture is the Yallourn open cut to the that budgetmg, cost control and progressing satisfactorily Yallourn east field will progress momtonng are Completion of erection is commence m 1989. A contract mtegrated over cap1tal scheduled for February 1986. was placed in October 1983 for expenditure, capitalised The first swing of the overburden the Morwell River diversion overheads, service overheads excavations was completed channel and conveyor and manpower levels on a task during the year and the first embankment Considerable basis. major coal deliveries to the raw earthworks were carried out during the summer months. 43 and distribution Construction Electrical design 1s also Transmission Planning The works associated with the proceeding for a new 220/66 kV Planning for the further Loy Yang power station and terminal station at Tyabb which development of the 500 kV Hazelwood terminal station is planned for service in 1985. transmission system from the 500 kV switchyards were The terminal station is required Latrobe Valley to Melbourne is completed in August 1983 to for increased loading in the under review, having regard to enable the connection of the Frankston area and will be the scheduled generation first generator at Loy Yang supplied by the existing program for Loy Yang and power station to the main 220 kV transm1ssion lines from development of further brown transmission system. East Rowville terminal coal power stations m the Works required for connection station supplying John Lysaght Latrobe Valley. of the second generator at Loy (Australia) Ltd. A fourth 500 kV transmission Yang power station to the main The extension of the 500 kV line from the Latrobe Valley to system, wh1ch include the network west of the metropolltan Melbourne is planned for construction of the second area for the supply to Alcoa at establlshment by November single-circuit 500 kV Portland was completed in 1986 to provide for the transmiss1on !me between Loy September 1983. Under the generation from the third unit at Yang power station and terms of the agreement with the Loy Yang Hazelwood terminal station, Comm1ssion, supply was to be A planning permit has been have been completed and made available by 1 October granted for construction of the placed in service m July 1984. 1983. 'l'he extension required the line between Hazelwood and At Rowville terminal station, construct1on of two single-circuit Narre Warren. A section of line the second of the lOO Mvar 500 kV lines between Sydenham from Coldstream to South controlled static reactive and Moorabool, a double-circuit Morang, associated with compensators was placed in 500 kV extension from connection of the fourth line into service in August 1983. Both Moorabool to Portland, and the the metropolitan area, was part units are providing satisfactory establish- of a public inquiry conducted by voltage control under various ment of new terminal stations at the Natural Resources and system conditiOns. Sydenham and MoorabooL Environment Committee into the Electrical des1gn is proceeding During the year, construction Commission's planning for for a new 330/66/22 kV terminal commenced on a 220 kV line transmission lines serving station at Wodonga which 1s from Moorabool to Ballarat to Melbourne. The Government required to provide for future reinforce supply to the Ballarat has accepted the Committee's load growth in Wodonga and area. Construcllon is scheduled recommendation that the line north-east V1ctoria, and is for complel!on in May 1985. should be constructed along the planned for service in 1986. The Construction is in progress on existing easement as proposed termmal station will be supplied the 500 kV transmission line by the Commission and that an by the existing 330 kV between Sydenham and South Environment Effects Statement transmission line between Morang, to reinforce supply to be prepared. ]indera (NSW) and Dederang. the western area of the State The Natural Resources and and will be completed in Environment Committee November 1984. completed the second part of the inquiry concerning the proposed 220 kV connections il from Newport to Fishermen's Bend and from Richmond to - Brunswick which the Commission had proposed to reinforce supply to the central business district and inner metropolitan area of Melbourne. The Committee presented its second report to Parliament on 9 November 1983. Left: The second 100 Mvar controlled stahc reactive compensators at Rowville terminal station. 45 To assist the Committee with its Investigations were undertaken Main Transmission System considerations, the Commission regarding transmission options Operations was requested to conduct a for the development of an During the year eight faults survey of inner metropolitan interconnection between the occurred on the main councils and of bodies Victoria/New South Wales and transmission system, compared responsible for essential South Australia power systems. With twenty-nine for the previous services to obtain quanllfication The results show that a 275 kV year. One fault occurred on the of the consequences of total double-circuit line from Portland 500 kV network and six on the supply loss. m Victoria to a point in the south- 220 kV network. There was one The Government has adopted east of South Australia would fault on the 330 kV network. the Committee's recommendation provide a transfer capab1hty to In the 330 kV fault incident and in that Newport and Fishermen's South Australia of 500 MW two of the 220 kV fault incidents, Bend should be connected by System Control the line was automatically an overhead transmission line All facilities for the first stage restored to service in a few followmg the route proposed by of the redevelopment of the seconds by automatic re closure the Commission. The Commission Commission's system control circuitry is proceeding with preparation of centre commenced operation m The relatively low level of system the Environment Effects October 1983, including the faults 1s attnbutable to lower Statement. wallboard load flow and lightning activity and moderate In relation to the Richmond to switching mimic displays, the snow conditions. Brunswick transmission line, the visual unit displays and the Interconnection with New Committee recommended that automatic generator control and South Wales the line should be built generally secunty momtonng mds. Considerable use was again along the route of the existing To provide the higher level of made of the interconnection 66 kV line as proposed by the system supervision necessary between Victoria and New South Commission with some specific to achieve the desired level Wales which provides mutual environmental treatments. of system availability, some support to both state systems. The Government is still design enhancements were Close co-operation has continued considering this recommendation implemented to further improve with the Electricity Commission and to assist with the assessment the performance of the centre of New South Wales and the it has asked the Commission to facilities. Snowy Mountains Council enter into further consultation to Upgrading of the Latrobe Valley through the established ensure that all interested parties control centre to provide remote organisational arrangements fully understand the issues control and monitoring facilities to optimise the planning and involved and can provide for stations associated with the operation of the interconnected comment to the Minister for Loy Yang proJect has been system Minerals and Energy completed. Redevelopment of the The Commission installed a The Commission has held Keilor control centre proceeded control scheme to enable high information meetmgs to explain to mclude faciilties for the remote import of power from the Snowy the issues and options with control and momtonng of the new scheme over an extended councils and key community and 500 kV terminal stations at temperature range to meet high industry groups and addressed Moorabool and Sydenham and load demands on hot days last public meetings arranged by a the existing 220 kV termmal summer. The control scheme committee of members of station at Geelong. makes provision for fast councils along the route. Planning is proceeding towards automatic load shedding of The 220 kV line from Rosedale to providing supervision and interruptible customer load to Barrnsdale to supply East remote control of all terminal prevent thermal overload in the Gippsland (with provision for an stations in the metropolitan area event of an interconnection line adjacent 66 kV line) was given from a new control centre at outage. Government approval for the Rowville in the east and from the Transfer levels from the Snowy acquisition of easements to existing centre at Keilor in the scheme reached 1 400 MW and enable the 220 kV line to be west This will allow the system transfers of up to 850 MW placed in service in 1988, based control centre to concentrate on occurred between the Victorian on present load growth. its main role of momtoring and and New South Wales systems. co-ordinating main system activities. 46 New South Wales continued • The existing tree clearing Ash Wednesday Bushfires to wheel power through the program has been maintained As a consequence of the Victorian system to Broken Hill and supplemented by the bushfires on 16 February 1983, under the Broken Hill supply employment of personnel from damage clatms were made agreement. New South Wales has metropolitan municipal against the Commission m announced plans for extension of electricity authorittes and connection with major fires interconnection with a further tie additional contractors. which occurred at Trentham/ point at Buronga near Red Cliffs • Selected Commission Macedon, Cudgee and to supply Broken Hill directly. personnel have participated in a Branxholme. Commercial and technical Vegetation Control Course, Settlement of claims for considerations are being further conducted in conjunction vvith the uninsured losses has continued developed prior to formal Burnley Horticultural College throughout the year in respect agreements between the and the National Trust. of the Trentham/Macedon fire. Electricity Commissions of • Regional Managers report All clatms in respect of the Victoria and New South Wales. monthly on the progress of Branxholme fire have been Sub-transmission and bushflre mitigation activities. settled and negotiations are Distribution • As a long-term project, existing being held with solicitors acting New zone substations were low voltage lines in rural areas for parties who sustained losses constructed, tested and placed are being studied with the in the Cudgee fire. in service at Cobram East obJective, where appropriate, of In January 1984, it was necessary and Tottenham. Substations at replacmg lengthy low voltage for the Commission to commence Somerton and Belgrave have lines by high voltage lines and litigation in London against its been substantially constructed substations. insurance broker and under- and tested; however, contractual • Increased priority is being writers in order to gain protection and mdustnal problems have . given to the system of reviewing under 1ts legal liability insurance delayed the bnngmg mto servtce work programs to facilitate the for any amounts which it was of these stations. A black ban has f lfil ent of emergency or short- legally liable to pay to victims of held up s1te works at Geelong u m . . · the Ash Wednesday fires. .t ne substati n for a period term htgh pnonty reqmrements. CJ Y zo o H h . . . b . · Damage claims against the of 10 months. Providing there are • 19 pnonty IS emg gtven to Commission in respect of the no further industrial bans, it is the development and testmg of Ash Wednesday fires were expected that this substation will Improved fuse lmks. Other areas estimated not to exceed $120 M. be commissioned prior to the of research mclude analysts and To avoid the possibility of a court winter of 1985. Construction of evaluatton of fire mcJdents decision being partly adverse to Shepparton North zone substation arising from the presence of the Commission and therefore to has commenced. electncal assets, the develop- the State's electrictty customers To meet growing localised de- ment of an Improved type of and on the advice of counsel, the mands on the distribution system insulator for high voltage Government and the CommiSsion . . ' overhead conductors and ma)Or augmentation was earned out research into more efficient agreed to a $75 M settlement as at Clover Flat, Mansfleld, Bnght and surge diverters in order to being in the best interests of the Kmglake zone substat10ns. improve their performance. Commission and its customers. Design and construction work • A pubic1 1 ty campaign was The Commission has been able was commenced for new zone · to purchase insurance protection substations at Box Hill and Foster undertaken regardmg - . agamst its bushfire liability but for service in 1985/86 and Altona • the cuttmg of trees to mamtam at a greatly increased cost Chemicals and Mulgrave for safe clearance between because of the heavy losses 1986/87. Design work also overhead llnes and trees; suffered by insurers following commenced on an emergency • responsibility of customers for the Ash Wednesday fires in switching station in Waratah private electric lines; Victoria and South Australia. Place to improve the reliability of • advice to customers on supply to the central business maintenance of their private district of Melbourne. electric lines before the onset Bushfire Mitigation of the 1983/84 summer season; Since the bushfires in February and 1983, the Commission has • undergrounding the undertaken the following Commission's rural electricity supplementary bushfire supply system, where mitigation activities: appropnate. 47 Several Commission employees have been seconded to ;:he Government's Home Energy Advisory Service which provides assistance to low income households on the more efficient use of energy in the home an advisor undertaking a home energy audit. Advisory Services Home Energy reliance of customers on the The increasing emphasis placed Advisory Service quality of service provided by on energy management and The Home Energy Advisory the Commission's sales and application by industrial and Service (HEAS), established by advisory personnel. commercial customers resulted the Government in 1982, provides The personal advisory serv1ces in some 12 000 telephone calls to direct assistance to low-income were supported by distribution of the Commission's specialist households regarding the more a wide range of literature energy advisers and 5000 calls efficient use of energy in the covering all aspects of the use of to the energy utilisation centre at home. electricity in the home, with South Caulfield. To help satisfy Under the scheme, specially particular emphasis on energy- the demand for this service, trained energy advisers visit the effective applications. A revised additional computer and home on request from eligible and comprehenslVe gmde to programmable logic control persons, identify potential energy operatmg costs of domest1c facilities for practical training savings and, where justified, electncal appliances was and demonstrations were recommend the allocation of popular with customers and was installed in the energy utilisation retrofitting funds for the utilised by the Home Energy centre, and intensive six-day installation of insulation, weather- Advisory Service in assisting the training courses were stripping, draught proofing and disadvantaged. undertaken by 50 Commission other energy conserving In conjunction with municipal and municipal electrical supply techniques. By June 1984 the electricity supply departments authority advisory staff. These homes of over 8000 low-income and community organisations, measures extended and families in the metropolitan area presentations and demonstrations strengthened the availability of had been audited. The on home energy management "Walk Through Audits" for Comm!Ssion has seconded six and m1crowave and convection customers. They also increased advisers to the HEAS. cooking were conducted for the depth of customer training The Commission has trained home econom1cs teachers and through regular formal nine regional advisers to assist in students, housewives and presentations to industry and the establishment of the community groups. commerce on process/ Community Home Energy Lia1son was maintamed with equipment control and load Improvement Scheme (CHEIS), buildmg industry associations, demand and profile control which is undertaken by local the Electricity Supply Association wh1ch jointly and indiVidually Councils in country areas. of Australia, the Electrical achieved substantial energy and · · f cost savings of 9% and 12% Public Lighting Development Assocmt10n o respectively: More than 2600 Sixty-e1ght street lighting V1ctona, Home Econom1cs schemes on State highways and Assocmt1ons of V1ctona and attended formal energy declared main roads were Australia, the Royal Australian management and application approved in accordance with the Institute_of Archite.cts_ and other seminars at the centre. Transport Act 1983. The appropnate associations, to . A total of 360 people attended Commission contributes encourage mformed app1Icat1on catering energy centre seminars approximately $Ll4M per year as of electrical equipment in new during the year. Special its one-third share of the cost of and ex1stmg homes. emphasis was required on the 451 kilometres of approved "Cook-Chill" catering concept · h · h and the use of steam for cooking llg tmg se ernes.• which have considerable Custom~r Serv1ces - potential for energy savings of up Domestic to 25% and 50% respectively: Desp1te the heavy demand on 1ts advisory resources resultmg from increased participation in Government energy conservation initiatives, the Commission continued to meet community needs for informed advice on electrical applications and energy-efficient appliances. Substantial purchases of electrical appl!ances from the Commission reflected the 49 Close co-operation was Victorian electricity sales Electricity Sales continued with electricity supply for domestic, commercial, Electricity sold to retail and bulk engineers and advisory industrial and other customers totalled 21 130 GWh, personnel of metropolitan purposes an increase of 3.3% for the year municipal counclls to ensure that ,.------, compared with 0.1% in 1982/83. all electricity customers have • other 'OOOGWh 24 Sales to domestic class access to competent advice on customers totalled 6730 GWh, an the effective use of electricity increase of 0.8% compared with Customer Inquiry System 1.2% in 1982/83. The average During the year the computer- consumption per customer based Customer Inquiry System decreased by 1.0% compared was further extended to with a decrease of 0.5% in the provincial and outer-metropolitan preceding year, while the areas, with installations being average number of domestic completed at Bendigo, customers increased by 1.8% Dandenong and Ringwood (1.7% last year). Customer Policy Sales to commercial class Review Panel customers increased by 4.5% to In September 1983, the Minister 2830 GWh, compared with an for Minerals and Energy increase of 4.1% in 1982/83, while established a Customer Policy sales to industrial customers Implementation Committee to totalled 7146 GWh, an increase of oversee the co-ordinated 7.0% compared with a decrease implementation of of 2.6% last year. recommendations of the Sales for traction purposes Customer Policy Review Panel increased by 1.7% to 284 GWh, which reviewed the customer compared with an increase of policies of the Victorian energy 3.7% in the previous year. utilities. Consumption of electricity for Changes which have already public lighting totalled 125 GWh, been implemented apply mainly an increase of 2.1% compared to domestic customers and, in with 3.4% last year particular, will provide assistance to the disadvantaged Sales ('l'otal 21130 in meeting their payments for GWh) energy. Industrial 34% Domestic 32% Bulk supplies !9% Commercial !3% Electricity sales Traction and sales revenue 1% Subdivision according to Public lighting ~--- !% classes of customers. Year ended 30th June !984. 50 Briquette Sales Briquette sales 1980-1984 1983/84 1982/83 Variation kt kt kt % Kilotonnes Domestic Users 28 32 - 4 - 12.5 Industrial and Commercial Users 483 477 +6 + 1.3 Total (excluding consumption in power stations) 511 509 +2 + 0.4 Briquette Sales Revenue 1983/84 1982/ 83 Variation $000 $000 $000 % Domestic Users 1 863 2 017 - 154 - 7.6 Industrial and--~------Commercial Users 17 152 13 652 +3500 +25.6 Total (excluding consumption in power stations) 19 015 15 669 +3346 +21.4 Briquette Sales As a first step in that review, For the first time since a discussion paper entitled 1971172, total sales to the public "The Victorian Electricity Supply increased. Although domestic Industry- Options for the sales again declined, significant Future" was released by the increases occurred in the Government for public comment industrial and export markets. in February 1984. • Domestic New briquette-fired boilers are 0 Industrial At the invitation of the Minister Gncluding exports being installed at several for Minerals and Energy, the and char) locations and, together with Commission responded to the potential interstate customers Government's discussion paper and increased usage by in May 1984 by examining the existing customers, it is structure of the present supply expected that further increases industry and its capacity to will occur in 1984/85. achieve the Government's Power stations and works con objectives in relation to the sumed 307 kt - approximately 40% of production. Bulk Supply - Municipal Councils The financial arrangements developed in 1982/83 between the Commission and the Melbourne City Council were formalised and approved by the Governor in Council. All eleven Metropolitan Electricity Supply Undertakings are now subject to a 1976/ 83 Financial Agreement which will continue to apply in 1984 pending the outcome of a Government initiated review of the overall organisation structure of the State's electricity supply authorities. 51 industry's efficiency, effective- Tariffs was publicly released in June ness and accountability to As reported last year, on 1984. The proposals outlined in Government and the community 2 August 1983 the Government this paper were discussed at day Each of the eight options put announced a tariff increase and evening public meetings forward in the discussion paper averaging 7.9% to apply in conducted by the Department of were analysed and the1r benefits September/November 1983. Minerals and Energy. and d1ffJcultJes assessed, . resulting in a recommendation Subsequent to the tanff The State Government and the by the Commission that the long- announcement, a program for Commission are reviewing the term objective for the industry pubhc and customer mvolvement form of public involvement to should be its integration under m the rev1ew of tanffs was maximise the benefit of the Minister for Minerals and developed and Implemented. In consultation to both customers Energy this regard, a number of public and the Commission. Extension Procedures meetings were held at which An average tariff increase Review poss1ble and preferred opt1ons of 4.4% was announced by the Following the implementation of for tanff restructunng Withm Government on 25 July 1984. interim policy changes on 1 July overall Government Pncmg This was the lowest increase in 1983, the Extension Procedures Pohcies were discussed. These electricity tariffs for the last Task Force has developed policy meetmgs were held m March eleven years. It reflects a desire alternatives which provide 1984 for domestic tanffs, Apnl by the Government and the . . . 1984 for commercial and Commission to minimise the • an eqmtable fmancial industrial tariffs and June 1984 impact of tariff mcreases on the treatment of all supply for farm tariffs. community and to encourage applicants; The Commission released the development in Victona in • cost sharing in a reasonable following documents to provide accordance with the period between JOint and information for public discuss1on: Government's Econom1c Strategy. successive appllcants; and • 1983/84 Budget and Tariff Features of the tariff changes •. approximately the same level of Submission to the Government were fmancial contnbutlon by the Quly 1983) • no increase in off-peak tanffs supply authority towards the cost ' of supply extensions as was • Energy Use in Victorian Homes to help reduce the rate of decline provided previously. Results in an energy survey of in acceptance of off-peak water households in Victoria (February heatmg, and to encourage a Extensive education programs, 1984); transfer of energy used from both internal and public, have • Proposed Merging of high periods of demand to low been undertaken to enable the implementation of the new Commercial and Industnal Block penods of demand; procedures. Tariffs (February 1984); • establishment of a new multiple • Report of a Survey of Farms in residential tariff for residential Work has now commenced on Victoria (May 1984); used for non-transient developing cost sharing principles in respect of supply • Review of Electricity Tariffs for occupancy, such as boardmg extensions to other classes of Farms in Victoria (May 1S84) houses and apartments, customers. In addition, the Commission • commencement of a three-year assisted the Department of program to phase out separate Minerals and Energy to prepare IIghtmg and power tanffs for an information paper titled small and medmm SIZed "Energy Pricing 1984/85", which commercial and mdustnal • availability of the general purposes tariff to farms, and permitting farmers to include their residential consumption within their industrial farm tariff; • a significant reduction in charges for standby supply, and an increase in the buy-back rates for the purchase by the supply authority of energy generated by private generators. 52 Cogeneration • plan for greater use of Explicitly incorporated in the Both the Government and the cogeneration within Government scenarios for the first time are Commission are supportive of buildings, such as hospitals, conservation and cogeneration cogeneration proposals. The schools, prisons and universities. as alternatives for supplying issue has been given a high In the future, the Commission future electncity requirements profile in the Government's will conSider establishing a joint The possibilities for managing Economic Strategy for Victoria. venture subsidiary with private future load are important as they The first step taken to promote sector interests with relevant can alter the basis on which . cogeneration was the adoption on skills to provide consulting forecasts are calculated. Whilst 2 August 1983 of a new standby services and feasibility studies to this creates more uncertamty m and parallel supplies electncity potential cogenerators and forecastmg, It also provtdes an tariff. possibly establish, supervise opportumty for executive action In September 1983, the and operate cogeneration to control the level of energy Commission engaged a facthttes for customers. sales and the ttme profile of consultant to examine the Survey of Domestic Energy demand. barrriers to increased Consumption cogeneration in Victoria. The As reported last year, in order to consultant's report, published in improve the understanding of the April 1984, provides a basis for electricity market, the further analysis, particularly in Department of Minerals and regard to quantifying the . Energy and the Commission mfluence of each of the Identt- undertook a joint survey into fied barriers and pursuing the energy consumption patterns of measures proposed in the domestic households. Economic Strategy In February 1984, the results of These measures are - the survey were published in a • development of a better report titled "Energy Use in incentive for cogenerators by Victorian Homes". An important revising the applicable tariffs aspect of the research indicated and buy-back prices. A number the importance of refrigeration of options for achieving this and and cooking which together alternative definitions of "avoided comprise nearly half of all costs" are outlined in the report consumption on day rates. and will require further Washing and drying are also development and careful major uses. Heating and cooling consideration; comprise about 11% • promotion of an awareness in Electricity Forecasts the community at large, and 1984 to 1999 particularly with potential In August 1984, the Commission industrial cogenerators, of the released a detailed report opportunities arising from documenting its electricity cogeneration; forecasts for the period 1984 to • provision of technical 1999. A brochure containing a assistance for industries simplified version of the report interested in conducting was released at the same time. feasibility studies; Prior to 1983, the Commission • investigation of the use of tax planned to a single forecast of incentives for cogeneration consumption. In May 1983, the facilities in co-operation with forecasts were presented as a other States and the band with a high and low growth Commonwealth; sceDario. This enabled greater flexibtlity in planning to more adequately provide for future uncertainty The concept of scenario planning was extended in 1984 and five scenarios have been developed to reflect a wide range of possible outcomes. 53 Each of the following five The economic conditions forming Domestic: scenarios have been developed the basts of the h1gh, most l!kely Improved appliance efficiency; to reflect a range of economic and low forecasts are based on especially refrigerators and conditions and alternative those prov1ded by DMB and are dishwashers responses to conservation and shown m the followmg table. cogeneration programs. The very low forecast provides New technology, e.g. microwave ______for economic conditions slightly cooking Very High worse than conditions prevailing Improved thermal performance A return to the strong economic in the last decade and is of dwellings ------growth prevailing m the 1960s consistent with the relatively Commercial: and early 1970s with little pessimistic response from the Building thermal performance additional result from survey of the Commission's standards Government and Commission largest industrial customers. Lighting standards conservation programs, including Forecasts of Main Factors Energy management cogeneration. Affecting Electricity Sales Cogeneration (mainly hospitals) High ·· - (Average growth % per annum Economic conditions as for the from 1984 to 1999) Industrial: very high scenario, but with a Cogeneration and private Most Very generation medium result from conservation _____H_I9 __ h_Lik_e_iv ____ Lo_w __ L_m_': Energy management and cogeneration strategies. ------GDP (Aust) 4.4 3.4 2.S 18 Most Likely . . The impact of these initiatives in The economic conditions Dwellmgs (V:c) ~~~2 each scenario will vary because considered most likely by the Real prices there is more potential for energy Department of Management and Electricity -0.3 -0.3 -0.3 -0.3 conservation as sales growth Budget (DMB) and a medium Gas 0.7 0.7 0.7 0.7 increases. In the high scenario it result from conservation -- --- · is considered that around programs. Conservation is an important 5800 GWh per annum could be ______element of Government energy saved by 1999 by adopting these Low pol!cy and cost effective activities compared with Slightly more favourable than the conservation can be a more 1700 GWh per annum in the low conditions prevailing over the flexible investment than power scenario. These savings will only past 10 years and a medium station development as be achieved with a continuing result from conservation demonstrated by the current commitment from the Commis- programs. experience of a number of sion and the Government. ------utilities in the United States. Average growth rates with and Very Low Some of the conservation and without conservation are shown Economic conditions slightly cogeneration initiatives expected below: worse than those prevailing over to affect the demands on the the past lO years with little - - , Growth Rates Forecast additional result from Commtss!ons supp1 Y system Showing Effects of conservation and cogeneration mclude - Conservation (1984-1999) programs. (This is the only scenario in which it was Scenario Without With assumed that Alcoa's smelter at Conservation Cor.servation Portland would not proceed) lncl Excl Incl. Excl. Alcoa Alcoa Alcoa Alcoa Very High 5.6 S.3 * * High * * 4.7 4.3 Most likely 4.4 4.0 3.9 33 Low 3.7 3.1 3.3 2.7 Very low N/A 2.4 N/A 2.4 *Not applicable. The rilffF>rRnCF> high ar.d the veryhigh o~cuauvo IS effeCt Of '-UJJ:Otl VctUUlL 54 Alcoa • An interruptibility allowance of In July 1984 the Government 0.040 c/kWh will be payable for announced that agreement had both the Portland and Point been reached with Alcoa of Henry smelters in return for the Australia Limited and the Commission having the facility to Commission on all outstanding interrupt all potlines in matters and that work would accordance with agreed criteria. resume on the Portland smelter The decision is of major project in late 1984. The importance to the Commission announcement represented the and Will ensure that the Tower erection and conductor culmination of extensive generation facilities at Loy Yang stnnging on the 500 kV negotiations between Alcoa, the and the Moorabool to Portland transmission to Portland which will supply to Government and the Commission transmission line constructed to alumimum smelter. over a period of two years. The meet the Portland smelter load was completed Significant features of the are now utilised. Agreement are as follows • Alcoa and the Government will take equity shares in the Portland smelter project of 45% and 25% respectively, with the remaining 30% being offered to joint venture parties. • The electricity agreements finalised for both Portland and Point Henry smelters are for a 30 year period. • A base tariff of 2.496 c/kWh and 2.669 c/kWh will apply for the 1984/86 year at Point Henry and Portland respectively. • The expected start-up dates of the Portland smelter are l November 1986 for the first potlme and l July 1988 for the second potline. • A flexible tariff arrangement has been developed whereby the electricity price vanes in accordance with movements in world aluminium prices. The cost of these price variations will be met by the Government • The Government will reimburse the Commission for the net costs associated with the Portland smelter deferraL • The same pricing principles will apply at Point Henry and Portland. • Standard published standby tariffs will apply for standby to the Anglesea power station. on g-range development planning Integrated Planning A new organisational structure c During the year, significant for the Human Resources optimisation of system operations progress was made towards the Directorate was established in and expansion of brown coal design and implementation of an November 1983. In the base-load power generation by integrated planning process. reorganised Dliectorate, the seeking contracts for interstate This process will integrate the Personnel Policy, Planning and interconnections with South planning of the various functional Review Department is Australia; and areas of the Commission and responsible and accountable d establish the essential link for the development of all human encouragement of the use of both between strategic/long-term resource planning processes cogeneration of heat and power planning and planning/ and ensuring the integration of and energy conservation budgeting over the short term these processes with the practices where these are The Commission has carried out strategic plan. The integration of economically viable." an analysis of internal and all human resource planning In the development of other uses external factors affecting the processes wtll provtde a more for Victorian brown coal, the Commission and developed postttve approach to the . . , Government indicated that: statements of corporate mission, management of the Commtsslons "•Th G t ld t . . · d h human resources e overnmen wou ves m ob ]ectlves an goa 1s, toget er • · a single agency responsibility for w1th quant1hed targets. Th1s Economic Strategy the management winning and work w1ll form part of the In Apnl 1984, the Government co-ordination of the Victorian Commission's strategy plan announced its economic . brown coal resource for whtch ts scheduled for 1ntt1at1ves and opportumt1es for alternative uses other than State completiOn by the end of 1984. the 1980s With the one central Electricity Commission power Over the shorter term, an focus of tmprovmg the long-term generation; examination· of the Commission's growth1 of mcome· h and th e SECV w1·11 cont. mue to b e busmess over the next four years emp oyment m t e state. • 'bl f h was used as background to the Victoria's extensive brown coal responst e or t e management, development of the 1984/85 deposits were identified as a key development and mmmg of all . . competitive strength for future coal from Its open cuts, and b ud get su b m1ss1on to . remam as an mtegrated coal- Government Pilot studies on economic development as they mining and electricity supply program planning have been represent a maJor source of low- uth t . completed and consideration is cost energy smtable for the : on y, . . currently being given to the generation of electnc1ty and the State Will m the future timing of full-scale introduction. potentially for conversion to senously conSlderproposals to alternative fuels. develop new coalfields for The Government's key economic multiple end-users of coal; this objectives for future electricity will enable utilisation of the supply are: resource to fully benefit from "a economies of scale in coal to lower the real cost of production while permitting a electricity supply and maintain controlled rate of development of interstate competitive tariffs for the brown coal resource; industry; • the Government would shortly b call for registration of interest by through the V1ctorian Energy parties wishing to utilise brown Plan, the identification of end coal from a supply of at least uses for electricity which most 5 million tonnes per annum from efficiently utilise the brown coal the Loy Yang open-cut:' resource and contribute Subsequently, the Minister for maximum benefits to the Minerals and Energy invited the Victorian economy; Commission and other agencies to make a proposal for it to be the coal agency. 56 Ministerial Statement on Legislation is to be introduced • promoting the use of brown Brown Coal in the spring session of coal for convenient and As a major element of the Parliament to structure the commercial products by active Victorian Economic Strategy and Corporation as a separately involvement with the private the Victorian Energy Plan, in July Identified busmess of the sector, including joint ventures; 1984 the Minister for Minerals Commission directly. . • strategy planning for the and Energy released "Victorian accountable to the Mm1ster for Latrobe Valley's brown coal Brown Coal : The Next Step" as a Mmerals and Energy: resources in conjunctiOn with major policy statement on the In appointing the Corporation's the Latrobe Regional future management and Board, the Government Will Commission and the development of Victoria's brown seek two nominations from the Department of Minerals and coal. The Statement announced Commission and a sigmflcant Energy; the Government's decisions on representation of the Latrobe • undertaking market research key issues which had been Valley community and people to determine the potential for identified in the report "Victonan with mining and chemical brown coal and brown coal Brown Coal - Future backgrounds from the products; Development" of October 1983 by private sector. • involving the private sector the Victorian Brown Coal Council The Corporation's parHime in the promotion, marketing (VBCC) The VBCC's report Chairman is Mr E E Falk, and distribution of brown coal followed public comment in 1983 presently Chairman of the and its products on a on the "Victorian Brown Coal VBCC which is to be mtegrated commercial basiS; Resource Development Study" by with the Corporation from' I consultants to the VBCC, wh1ch January 1985. The Corporation's •co-ordinating public and private sector research and was reported last year. Chief Executive Officer is Mr development programs, and Major features identified in and J R Smith who, as Chief General developing the Latrobe Valley's evolving from the policy are Manager of the Comm1ssJon, existing research laboratones. outlined below: will provide a high-level link • Coal Corporation of Victoria between the two busmesses. The Corporation will be The Government announced that The position of General . developed as a self-supporting the Coal Corporation of Victoria Manager has been advertised. business not requiring subsid1es from either the Consolidated was to be established as an The proposed legislation would Fund of Victoria or from "arm's length" subsidiary of the subject the Coal Corporation to electricity customers. A cash Commission, separate from its the same rigorous requirements flow base for the Corporation electricity business. for accountability to the will be provided the transfer The Coal Corporation has now Victonan public that now apply of the existing Commission been established to encourage to the Commission. The Coal briquette and brown coal sales and support the active CorporatiOn Wlll be required businesses, whose gross sales involvement of private industry to submit Its obJeCtives, perform- currently amount to $22M per in the commercial use of brown ance targets and fmancml . annum. Its revenues will be coal. The agency will have a estimates to the Mm1ster and Its expanded by the Loy Yang coal business outlook and will be performance will be reviewed sales to the private sector which active and expert in providing after three years. the Corporation will handle. advice and support to industry As announced, the main The Corporation will build on on the use of brown coal, on functions of the Coal this business, actively promoting technical processes and on Corporation would include: to private industry known options for early commercial • arranging the supply of brown opportunities for application. coal from existing open cuts briquettes, dried brown coal in the Latrobe Valley to the and solid carbon products as private sector; well as encouraging longer term • undertaking or arranging opportunites such as coal approved coal winning; it is liquefaction and substitute proposed that the Corporation natural gas. It will have a staff operates future open cuts of about 80 people in because these are likely to marketing, production and supply multiple users; technical support services with its Head Office based in the Latrobe Valley. 57 i.<::~~~th. eTyers ~.:,,.,o {~/ · J Latrobe Coalfields Coalfields 0 Extsting open cut areas • Category A t:::'Ji Category 8 CategoryC Excluded areas N • Towns 0 2 4km • Holey Plains Park • Loy Yang Coal Supply Provisional allocations of coal • Coalfield Boundaries In accordance with the for major prOJects to commence Late in 1983, the former Latrobe Government's policies, a in the next 30 years will be Valley Ministerial Council (now promotional campaign was made from Category A known as the Ministerial launched in July 1984 seeking coalfields which include Committee on the Latrobe registration by 30 November Driffield, Maryvale and Flynn L Region) resolved to establish an · 1984 of parties interested in These coalfields are to be Interdepartmental Committee on utilising all or part of a supply reserved in planning schemes Brown Coal Resource of at least 5 million tonnes per while the other coalfields are to Boundaries. This Interdepart annum of Loy Yang coaL The be protected against mental Committee was to run-of-mine Loy Yang coal inappropriate land use in consider the areas to be offered is probably the lowest accordance with Statement of designated as required for cost, high punty organic Planning Policy No 9. economically winnable coal in feedstock available in The Government has resolved to accordance with Statement of commercial quantities in the allocate a fixed 1000 million Planning Policy No 9 in the light world. tonnes of coal at Driffield and of information available since an In addition to the coal reserves 1350 million tonnes of coal at earlier interdepartmental of some 1000 million tonnes for Maryvale for future Commission committee's work, which was the two Loy Yang power stations, use for electricity: If Flynn l reported in the Annual Report approximately 300 million tonnes coalfield were to be developed of 1977178. of additional coal can be made before either of these fields, the The CommisSion is represented available for other uses. Commission would be given an on the new Interdepartmental The conduct of negotiations and opportunity to indicate its coal Committee, whose terms of administration of the coal supply requirements from this open cut reference were released in the to private industry will be the up to 1000 million tonnes. Ministerial Statement The responsibility of the Coal Depending on coal Committee is required to report Corporation. requirements for power by early 1985. • Coalfield Development generation to the year 2010, some • Proposed Morwell River The Government announced a 2000 million tonnes of coalts Diversion sequential brown coal potentially available to the The Minister for Minerals and development planning process private sector from existing and Energy announced in to be integrated with regional projected open cuts in these Parliament in May 1984 that strategy planmng. The process coalfields, including Loy Yang planning controls would be involves nominating and Morwell open cuts. introduced to protect land which undeveloped brown coal A number of towns and could be required for a possible reserves to one of three environmentally sensitive areas future major diversion of the categories or stages These are have been excluded from future Morwell River to the east of the shown in the accompanying brown coal development town of Morwell. Any proposal map and are as follows: The Government has indicated Category A- that legislation is being drafted Development Options Stage on land acquisition and (Development possible in lO to compensation following the 30 years) Stuart Morris Report, which was Category B- referred to in last year's Annual Prospective Stage Report (Development possible in 30 to 60 years) Category C- Identified Stage (Development more than 60 years off) 59 to proceed with a Morwell River Amendments to the National Latrobe Regional diversion project would be sub Parks Act in 1984 for the Commission ject to a public inquiry review. creation of the Moondarra and Legislation for the creation of the This announcement followed the Tyers Parks made provision for Latrobe Regional Commission public inquiry by the overburden disposal at (LRC) was passed in 1983 Parliamentary Natural Anderson Creek, such that some following a period of public Resources and Environment 200 ha of public land at discussion. As reported last Committee (foreshadowed in last Anderson Creek could be year, the Latrobe Region year's Annual Report) and its added to the park system if it comprises the Yallourn works report to Parliament in was not ultimately required for area and ten municipal districts December 1983 recommending overburden disposal. in the Latrobe Valley and South the introduction of planning con In accordance with Gippsland trols and specifying the route. arrangements announced by the Following his nomination by the The Minister for Planning and then Latrobe Valley Ministerial SEC, Mr R J Cheffers, Manager, Environment endorsed the Council in July 1982, the Area Administration, has been Committee's recommendations Commission published appointed as one of the 18 in principle following his "Supplementary Information on members of the LRC assessment of the proposal in Western Coalfield Overburden In facilitating the proper accordance with the Disposal" in May 1983 under the development and use of Environment Effects Act Environment Effects Act Victoria's energy resources and • Western Coalfield Concurrently, public comment the balanced development of the Overburden Disposal was also received by the region, and in improving local As reported last year, Victorian Brown Coal Council community access to decision overburden and interseam on its study of the development making, the LRC wilL materials from the western of the Victorian brown coal resource. • prepare and implement coalfields of the Latrobe Valley regional strategy plans; are currently being disposed of Over the next two years, further investigation will be conducted • prepare infrastructure co within the worked-out areas of ordination plans for prescribed Yallourn open cut and an area on the preferred sequence of development and the disposal major private or Government adjacent to the Morwell open cut projects; and An area of some 2200 ha at of overburden in the western coalfields. This will be • prepare an annual co Anderson Creek on the north ordinated plan for capital works. side of the coalfield has been preparatory to the foreshadowed Identified by the Commission as parliamentary inqmry into the Project Planning a site for possible long-term location for the next open cut With the reduced growth of future diSposal of overburden In this context, the Government electricity consumption in from the western coalfield. An does not believe that a separate recent years and uncertam Order in Council was issued in inquiry on the proposed future requirements, close March 1982 which enabled the Anderson Creek overburden attention is being given to the Commission to purchase land in disposal site is needed at vanous options available for this possible disposal area. this stage. managing future loads and Over 90% of the private land in To minimise potential for the expansion of the the area has now been sterilisation of coal and land use generation system. acquired. conflicts, it is the Government's The Commission's 15-year long policy that wherever practicable, term load forecasts produced in internal dumpmg of overburden 1984 assigned a probability of and rehabilitation of worked out occurrence to each of the five brown coal development areas scenarios to assist busmess and overburden dumps will be planning, including decisions required. This policy on the requirements for recognises that some external. future plant. dumping may be necessary To me.et the wide range of until suitable worked out areas forecasts, flexible plans are become available for internal required. dumping, although the sterilisation of some lower seam coal is not ruled out 60 Government action, or measures A Task Force has been formed Renewable Energy initiated by the Commission, can to carry out preliminary studies Resources have a significant impact on the of the possible redevelopment of • Wind Energy requirement for electncity and the Yallourn C and D power As part of the Commission's the demand profile, for example: stations. investigations into the use of • Government initiatives to Preliminary studies have renewable energy resources for attract large-scale, energy been carried out on possible electricity generation, a joint intensive industries: development at Morwell and study of the potential of wind • electricity price levels overall, Driffield, including the need for energy resources is being price levels between classes a major diversion of the Morwell conducted in association with and tariffs, and the tariff River. The results of these the Victorian Solar Energy structure; studies have been released to Council (VSEC) • price levels and price the public. The Commission and VSEC will structure of alternative fuels; Other supply options to be each meet half the estimated and studied are: cost of $300000 for the initial phase of the study • energy conservation, load • Wind, biomass and other management and cogeneration renewable energy technologies; Following aerial and ground programs. • Hydro-electric schemes. surveys of over 40 exposed sites Lower capital cost, shorter lead along the Victorian coastal Conservation and load region, 10 of the more promising management are important time plant such as gas turbine units (50-lOO MW) and possible sites between Portland and components of the business Orbost have been selected for strategy, and alternative black coal units (500-600 MW) will be under review as a the installation of wind programs are being studied by monitoring equipment and the Commission to determine means to cover unforeseen the feasibility, costs and contingencies and to optimise collection of information on wind the future plant installation characteristics over a two-year possible effects on energy period. consumption. program. Another factor in determining Auxiliary Fuel Supply An assessment of the potential future plant requirements is the An application made in 1983 and economics of grid for funding assistance from the connected wind power likely retirement dates for generation will be carried out Hazelwood power station plant. National Energy Research, An engineering study has Development and Demonstration later using the wind data commenced to establish the Council for a pilot plant study to collected. state of the Hazelwood plant and establish the large-scale • Hydro-Electric Resources whether the lives of the units feasibility and cost of producing A study of the hydrological and could be economically solar dried slurry coal proved to topographical information for extended. be unsuccessful. Solar dried Victoria has commenced with a For the future development of slurry coal has considerable view to estimating the potential the system the Commission is potential. particularly for use as hydro resources available for undertaking a comprehensive an auxiliary fuel in future development and the extent that review of various options, Latrobe Valley brown coal-fired detailed investigation is including brown coal, the power stations and as a fuel for warranted in particular areas. potential for hydro and other mdustry renewable resources and A further application for a grant black coal. was lodged in 1984 with the The brown coal options to be support of the Department of included in the review will cover Minerals and Energy, the a range of small, medium and Victorian Brown Coal Council large power stations with and the Victorian Solar Energy alternative unit sizes, using Council. existing power station sites, or based on extensions to existing open cuts, or located in new areas in the Latrobe Valley 61 nterconnection with other States South Australia Tasmania Following an assessment of As indicated in last year's the availability of energy for Report, the Commission has re opportunity interchange examined the feasibility of an between New South Wales, undersea cable link to supply Victoria and South Australia and electricity to Tasmania. investigation of the transmission The Victorian Premier has interconnection options, a proposed to the Tasmaman working group of officers Premier that a joint Victorian/ representing the three State Tasmanian working party be electricity authorities has established to investigate the concluded that interconnection possib1lity of a 600 MW power with South Australla appears to link between the two states. be economically viable. Although this proposal is not The South Australian Advisory favoured by Tasmania, further Committee on Future Electricity dlSCUSSlOnS are to be held Generation Options has with the Tasmanian Premier's recommended that agreement Department and the Hydro should be sought with the Electric Commission of relevant authorit1es in South Tasmania. Australia, Victoria and New South Wales to implement a limited capacity (500 MW) interconnection between Portland (Victoria) and a site to be established in South Australla near the South Australian/Victorian border with service expected around 1990. Initial use of the interconnection will be for opportunity energy transfers. Negotiations have commenced between the three states to develop Heads of Agreement and resolve the key issues associated with the development, implementation and operation of the preferred scheme of interconnection works capable of power transfers up to500 MW 62 nvironmental treatment for power stations Legislation and Policy A second dust measuring team $602 000 was contributed to the The Commission in support of was formed to meet power Environment Protection Authority the Government's environment station licence requirements. for continuation of the Melbourne legislation review has had On-line computation of Airshed Study; with a further continuing consultation with the standardised emission data $610 000 agreed for 1984/85. The Environment Protection Authority and statistical collation for Commission is now represented in respect of outworkings of the monthly reporting will follow on a Technical Advisory Group Environment Protection (Review) commissioning of the unit for this study: Act 1984. data processor. Investigation of electrostatic The introduction of the Works A Latrobe Valley Noise Study precipitator performance Approval System will enable is being initiated to consolidate continued in the Latrobe Valley design requirements for work done in recent years and the laboratory: emission control and effluent on the measurement and Measurements of collection treatment to be precisely calculation of environmental efficiency as a function of defined at an appropriately effects of noise emissions from particle size, combined with early stage of new and major major plants. A major aspect chemical analysis of collected modification projects, and thus will be the installation of size fractions, are providing a avoid the difficulties previously continuously operating noise deeper understandmg of encountered in licensing of monitors in the Valley The precipitation and thus the design power station discharges later in Study will be undertaken in information needed to their development. close consultation with the economically minimise dust The Commission also welcomed Environment Protection Authority emissions. amendment of the Environment Community involvement through Studies undertaken in Protection Act 1970 to provide the Latrobe Regional collaboration with the Latrobe for formulation of policy criteria Commission IS proposed. Valley Water and Sewerage and standards having regard to Environmental Research Board, National Museum of the social and economic Into Power Station Victoria and Monash University development of Victoria. This Emissions of aquatic fauna and flora in the will enable the Environment Air quality indicators in respect Latrobe River catchment were Protection Authority to strike of sulphur dioxide, nitrogen completed, and presented at an appropriate balance in oxides, ozone and visibility public seminars in the Latrobe developing and reviewing State reducing particles were agam Valley Results show that Environment Protection Policies. continuously monitored impoundments along the Licensing throughout the Latrobe Valley: Latrobe River have influenced Implementation of the licence The objectives of the State sedimentation and species conditions to discharge waste to Environment Protection Policy distribution; however, discharges air from the stacks of Loy Yang (The Air Environment) were of waste heat and increases in A power station was generally generally observed. salinity in the lower reaches satisfactory: because of Commission A National Energy Research, operations do not have a A joint study with the Latrobe Development and Demonstration detrimental effect. Salinity Valley Water and Sewerage Program grant of $220 000 was loading of the river will be Board of monitoring equipment received to study chimney plume dispersion in reduced now that disposal of proceeded throughout the year, ashing effluent has been first at Hazelwood and Yallourn collaboration with the CSIRO integrated throughout the W power stations and later at Divisions of Fossil Fuels and Latrobe Valley for discharge Loy Yang. Both the Commission Atmospheric Research An through the saline waste outfall and the Board have mobile instrumented aircraft will be pipelme to Bass Strait. emission monitoring vans used to track power station engaged in this work. plumes in the Latrobe Valley Alternatives to wet ashing are Considerable effort was to test mathematical models of at present being investigated. expended in dust sampling to dispersion. The first of four A pilot plant has been used to calibrate opacity monitoring planned two-week field studies agglomerate ash into non-friable equipment on Loy Yang A Unit 2; was completed in June. pellets. The rates of leaching calibration for auxiliary firing from pellets interred in was accepted by the Board. overburden dumps are being monitored. 63 cientific Sresearch Coal Quality Combustion Systems Occupational Hygiene A detailed examination of the A collaborative study with Chemistry properties of coal at the Swinburne Institute of Chemical investigations were operating face of the Yallourn Technology to mvestigate the earned out to assess the open cut has been completed. aerodynamiCS of burner ]ets potential hazards of a wide Three fuBy-cored bores were used in brown coal-fired boilers range of substances mcluding drilled and samples were has contmued with further welding fumes, solvents, analysed for selected energy funding being provided by a adhesives and dust. and fouling-related properties. National Energy Research The asbestos aerosol estimation This work led to the production Development and Demonstration count in air) program of a coal-quality map which Program grant. Isothermal continued to monitor the working divides the coal into four main model studies of the flow environment for the purpose of zones appropriate to the development from a number of protecting the health of asbestos properties of the coaL Similar burner geometries have shown workers. Several hundred work is now being undertaken that the ratio of flow between samples from the Newport at Morwell and Loy Yang open fuel and air jets and the burner power station demolition mr cuts. The data from these geometry have a significant conditioning heater banks and studies, used in conjunction with influence on the flow other sources were examined. the pattern of coal winning, will development The work to date provide more accurate has assisted in the Further refinements to the information regarding the understanding of ignition and microscopic technique used for properties of the coal to be combustion behaviour in analysing asbestos fibres have extracted in the future. operating furnaces. been made. A method has been developed for determining the Boiler-Fouling Studies On-load Water Washing of detection and confidence limits Dunng the year investigations Membrane Walls for an aerosol estimation. into the ash-fouling behaviour of The potential for cracking in National Energy Research, Latrobe Valley coals continued. water-washed membrane walls Long-term investigations in the due to thermal fatigue has been Development and 1000-hour experimental furnace investigated m the laboratory. Demonstration Council were undertaken on coals from Small panel sections of Projects the Loy Yang cut area. The membrane wall as used in The Commiss1on has variability of fouling modern boilers have been contributed $481 000 in 1983/84 tendency of Loy Yang coal was subjected to the repeated to the Commonwealth Coal studied and the locations of coal thermal shocks mduced Research Fund. Twelve expected to cause increased cyclically-operated water Commission research and boiler fouling were defined. Water sootblowers are development projects, funded as Short-term work commenced on boiler furnaces to remove part of the National Energy a program in the 35 kg/h difficult ash deposits. Research, Development and experimental furnace to study The effects of various operating Demonstration Program, were the effect of changes in variables on the shock current during the year. combustion conditions on the produced have been evaluated Payments amounting to $515 000 nature of ash and ash deposits experimentally and the rates at were received and accrued in formed. which small surface cracks 1983/84. The object of these studies is to propagate predicted from understand the process of ash theoretical analysis. formation and deposition No surface cracking has been resulting from the combustion of detected on three panels under brown coal in boilers, to develop long-term test after more than a means of minimising the 30 000 cycles, equivalent to adverse effects of ash on boiler 27 years' service. operations and availability 64 Services Computer Services In line with predicted demand for computing facilities, the central computing system was again upgraded during the year. One of the two Amdahl 470 machines was replaced by the latest Amdahl 5860 processor, giving a net increase of about 50% m central processing unit capacity. Disk capacity also increased significantly and the number of terminals connected to the system increased from 637 to 790 in response to continuing demand for on-line storage termmals. Resources continued to be directed towards phases associated with the Loy Yang Plant Management System, and in October 1983 the first phase of the Work Administration System was operating, together with the Permit System After an extensive series of evaluations, the size of the operations processor was increased by the replacement of the Facom Ml50F with a Facom M360, designed to provide the fast response for access to the large data base on which the application is built The previously reported development of a computer based material binning and retrieval system for the Brooklyn high rise main store was brought into operation during the year using a small mini computer. The development was a sigmficant departure from the more normal mainframe-based application, and although implementation was difficult. A section of the computer-based material binning and retneval system at Brooklyn main store. 66 the experience gained in this New Road Access to FOI Requests Received for approach was valuable. The Yallourn the Period 517/83-30/6/84 system is operational and In April 1984, construction further development is of a new main access road to Received Finalised Current proceeding. Yallourn was completed to General In common with other large enable the development of the Requests 58 56 2 organisations, the Commission open cut through the old Personal File has experienced a strong Yallourn township area. Requests 69 57 12 demand for personal computers. Freedom of Information Total 127 ll3 14 During the year an evaluation (FOI) was conducted of several types The Victorian Freedom of of personal computers and a Access Decisions For Information Act, which came Finalised Requests small range was obtained to mto operation on 5 July 1983, evaluate standards and common provides for public access to Access Granted 91 programs. documents of all State agencies, User-based computing was including the Commission. Access Part Granted lO further supported by The Commission undertook Access Refused 9 establishing an information detailed preparatory work prior centre, designed principally to the operation of the legislation Request Transferred to assist departments in the use to ensure appropriate of the "fourth generation organisational arrangements Request Lapsed languages". These languages were established to handle Request Withdrawn allow staff with relatively little requests for information. programming knowledge to In addition a large number Total 113 establish and manipulate data of CommisSion officers have files with a minimum of effort attended internal and external FOI requests should be made in Two pilot word processing FOI training courses. The wnting and addressed to the projects, based on Wang Commission has appointed a Freedom of Information Officer, equipment in the Latrobe Valley Freedom of Informallon Officer State Electricity Commission of and on Sigma Wordplex in the and an FOI Office is located on Victoria, GPO Box 2765Y, finance area, have operated the lower ground floor of the Melbourne, 3001 The telephone successfully, and a major study Commission's Head Office at number of the Commission's FOI into the wider office automation 15 William Street, Melbourne. Office is 615 1887 or 615 1555. needs of the Design and As at 30 June 1984, 127 FOI ... Construction Group is at present requests have been made to the General publicity material in progress. It is expected to Commission. Fifty-eight general concerning many of the provide specific areas of need requests involving 146 individual Commission's activities may be to complement the general questions have been received obtained from the Commission's findings of the original study since 5 July 1983. No FOI Public Relations Department at report applicant has appealed to the Monash House, 15 William Redevelopment of the existmg County Court against the Street, Melbourne, 3000. Materials Management System Commission's decision on a commenced during the year. request for information. The new system is planned to In most cases, the only be based on a commercially personnel authorised to refuse available package, customised access, or claim exemption to by the supplier to the documents, are officers Commission's requirements. occupying the positions of Chief It will support, in an on-line General Manager, Deputy Chief environment, all aspects of General Manager, General materials and stores operations Manager or Director. Several including stores, purchasmg, other Commission officers are contracts, inventory, payments, authorised to grant access to catalogues and applications documents parts lists. Development has proceeded and specifications Charges levied on FOI for a suitable package have applicants for the period 5 July been issued. 1983 to 30 June 1984 were $281. 67 omm1ssloners Appointment of Appointment of Deputy Commissioner Chairman On 11 October 1983, the On 3 April 1984, the Government Government appointed appointed Commissioner Ms B Y Hillsdon to the Board I A Gibson as Deputy Chairman of Commissioners for a term of the Commission pursuant to of three years. the State Electricity Commission Ms Hillsdon's appomtment (Amendment) Act 1982, for the as a member with avno.rH:'mr•n penod ending I March 1987. in financial management Board Visits completes the restructured Commissioners continued their Board descnbed in last practice of inspecting various operational centres throughout Ms Hillsdon 1s Corporate the State. Treasurer w1th the engineering During October 1983, the and construction company, Fluor Chairman and Commissioners, Australia Pty Limited. Her accompanied by senior officers, previous employment was with visited the North-Eastern BHP as senior corporate fmance Electricity Supply officer, the Commonwealth inspected Secretariat in London and the at Wangaratta, Australian Bureau of Statistics. Kyabram, Numurkah, Cobram, Yarrawonga, Myrtleford and Wodonga and met Commission personnel and State and local government and business repre- sentatives. also inspected the Australian Electrical Transformers at Benalla. In February 1984, the Chairman and Commissioners visited the Metropolitan Electricity Supply Region's Customer Enquiry Centre. The Chairman, Commissioners and general management visited the Latrobe Valley undertakings in March 1984. They met with representatives from the Latrobe Valley Community Forum and the Gippsland Trades and Labour Council and mspected the Loy project. the Morwell and Yallourn production centres, the Australian Paper Manufacturers Ltd plant, the brown coal liquefaction proJect, the Latrobe Valley sheltered workshops and the Blue Rock dam During the visit, Commissioners also met with community and business leaders and ava1led themselves of the opportunity to meet informally with employees. 68 ersonnel and organisation Higher Organisation w1thm the Commission and in He returned to Finance Personnel 1983 he was Department m March 1965 when Retirements Chairman of the appointed Supenntendent, Costs Mr FA Sims, AASA, AFAIM Commission's Health and Safety and Bookkeeping Mr Hurley retired on 9 October 1983 after Policy Committee. Mr Sirns was became Assistant Ch1ef more than 44 years' service. also involved with the Accountant, Accounting Division Mr Sims the Commission introduction into the Commission in September Management on 29 May 1939 as a Junior Clerk, of an "Industnal and Financial Accountant in Staff Branch, Admimstration program March 1970 and Chief Department. Improve commumcations wlth Accountant. Management Mr Sims' early career was in the and enhance the and Budgets in Personnel Department Following of work ilfe. 1974. He was appomted Deputy h1s participation m an From 1967 to 1982 Mr Sims was Manager, Finance Department in OrganisatiOn and Methods the Commercial Member of the January 1977 and succeeded to Course With the Commonwealth Classifications Committee and the of Manager, Finance Public Service m Canberra in on occasion acted as Chairman Department m August 1977. H1s November 1955, he was of the Committee. In August 1980 career culminated in h1s appointed an Executive Assistant he was appointed Chanman of appointment as Assistant in February 1956 and undertook the Investment Committee, General Manager penods of training at various Superannuation to ass1st the (Admm1stration) in August 1978 locations. Trustee of the SEC and m May 1983 th1s position was In February 1960 he was Superannu~tion Fund and SEC retitled Duector, Finance. It was appointed Works Personnel Employees ~etnement and from this that Mr Hurley Officer, Yallourn and in October Benefit Funa. reined. 1962 returned to Melbourne as Throughout his career Mr Sims Throughout most of his career Assistant Manager, Personnel applied h1mself with great Mr Hurlev was Department. He was appointed enthustasm to the tasks associated with a spectrum Manager, Personnel Department confrontmg him. His of the Commission's financial m March 1967. understanding and concern for operations. The sound and Following a review of the the welfare of others earned him detailed knowledge he acquired Commission's higher the high esteem of all with whom was of tremendous value to the organisation, Mr Sims was he came in contact, both mside Commission particularly m his appointed Manager. Industrial and outside the Commissiort. pos1t1on as Assistant General Relations in October 1974. His Mr R E Hurley, BCom, FASA Manager (Admmtstration) and as career culminated in his commenced leave on 3 July 1984 Dnector, Fmance in which he appointment as Assistant prior to his retirement on 12 July was largely responsible for the General Manager (Personnel) in 1985, after more than 40 years' fmanctal direction of the October 1980. In May 1983 this service. Comm1ssion in recent years position was retitled Director Mr Hurley began his career with In these positions Mr Hurley Human Resources. It was fro~ the Commission on 27 March was also re~pons1ble for the this that Mr Sims retired. 1944 as a Jumor Clerk in CommiSsiOns serv1ce and For most of h1s career Mr Sims Metropolitan Branch, ElectnCJty secretanal actiVIties was closely involved with the Supply Department Followmg mcorporatmg computmg, introduction and implementation his appointment to a number of rnatenal supply management,. of progressive and innovative accounting postl!ons at various transport, msurance and real ~·uv"'"'" practices and locations within the Commission. estate matters relating to the Mr Hurley was appomted Costs of employment of personnel. Officer. Costs and Bookkeeping, He was responsible for the Fmance Department in March Commission's most successful 1958. In September 1958 he was apprentice training scheme appointed Assistant Works which has been recognised as Accountant at Yallourn and such throughout industry in the implementation of a Australia. new Latrobe Vallev he became Supert'ntendent Mr Sims was closely associated Budgets and Statistics, Latr~be with the development of Valley in December 1963. occupational health and hygiene and accident prevention activities 69 Mr Hurley was a member, • Development and with responsibility for and at the time of his retirement implementation of human environmental licensing and Chairman, of the Investment resource systems, e.g. overall co-ordination of other Committee, Superannuation classification and remuneration, matters related to the discharge which assists the Trustee of the performance review, career path of wastes to air, water and land SEC Superannuation Fund and planning. and to emissions of noise. Its SEC Employees' Retirement and • Reviewing the organisational counterpart, Environmental Benefit Fund in managing the effectiveness of staff and line Engineering, in the Production investments of both Funds. His areas. Group has similar financial expertise contributed • Increased attention to responsibilities in relation to sigmficantly to the soundness of management development. Production operations. the Funds and was of The activities of these units and inestimable value to the Trustee The responsibility of these new their close collaboration will in the exercise of its activities and functions has been strengthen the Commission's responsibilities placed with two new departments, "Personnel Policy; ability to meet its environmental Throughout his career Mr Hurley Planning and Review" and responsibilities in the design and applied himself conscientiously "Organisation Services". operation of major plant, to his responsibilities, and his Furthermore, the structure of particularly in respect of the resourcefulness, dedication and both "Personnel Development integrated approach required for interest in the welfare of others Department" (previously achievement of State Environment earned him the respect of all Personnel Development and Protection Policy for the Latrobe with whom he came into contact Services) and "Employee Valley air quallty control region Organisation Relations" (previously Industrial and for the waters of the Latrobe As recorded in last year's Report, Relallons) have also changed to River catchment the consulting firm of Cresap, reflect the need to implement These arrangements do not, McCormick and Paget Inc was these new initiatives. however, detract from line engaged to ~eview the . Mr I G Macdonald, BEe, responSibilities for provision or Comm1ss1ons orgamsat1onal MAdmm was appomted Director, operat1on of plant m compl!ance arrangements and how Human Resources, with effect w1th discharge llcences and the structure should staffed from 19 January l984. He was statutory reqmrements. to assure sound management formerly Acting Director, Human Senior Appointments This led to an internal review of Resources. Mr I P Bates, MEngSc(Hons), the Human Resources BEE(Hons) was appointed Chief Directorate, and a new structure Engineer, Transmission The Production Group of was approved by the Board in Departments, menlloned in last Development with effect from December 1983. Subsequent 7 July 1983. He was formerly changes to the Directorate have year's Report, was established in System Development Engineer, linked it more closely to the February 1984· With Production Transmission Development Centres located at Yallourn, organisation's key concerns. Morwell and Loy Yang Together Department. The Directorate provides the with the associated service Mr A T Wilson, MEngSc, BEE, following new personnel Departments of Production DipEE, MIEEE was appointed activities and functions: Services, Engineering Services Chief Engineer, Distribution with • Personnel pohcy development and Area Administration the re- effect from 7 July 1983. He was and Implementation organisation has resulted in a formerly Manager, Metropol!tan • Increased human resource positive influence on the Electricity Supply Region planning, e.g. manpower Commission's operations withm Mr D B Brockensh1re, MBA, planning wh1ch is lmked to the Latrobe Valley BCom, DipEE, D1pME, MIE Aust corporate planning. was appointed Manager, Customer Services with effect A new strategy has been from 7 July 1983. He was formerly introduced for the handling of Manager, Eastern Metropolitan environmental matters within the Electricity Supply Reg1on. Commission. An Environmental Management unit has been Mr G L Boreham, BCom, DipEE, formed in the Design MIE Aust was appointed Chtef Engineering and Environment Engineer, Transmission Department of the re-organised Operations with effect from Design and Construction Group, 20 July 1983. He was formerly 70 Transmission Engineer, Mr C I Runge, DipME, MIE Aust, Dr R Hutchings, BE(Civil), Headquarters, Transmission AAIM was appointed Manager, MEngSc(Civil), PhD, DipCE, MIE Operations Department. Production, Loy Yang with effect Aust was appointed Chief Mr R N c Clark, DipEE, MIE from I February 1984. He was Engineer, Fuel with effect from Aust was appointed Manager, formerly Coal Production 23 July 1984. He was formerly Metropolitan Electricity Supply Superintendent, Yallourn Open Acting Principal Engineer, Region with effect from 8 August Cut. General Plant and Fuel 1983. He was formerly Manager, Mr J A Vines, BE(Civil), BEe, MIE Handling, Loy Yang Project. Northern and Midland Electricity Aust, AFAIM was appointed Retirement of Senior Staff Supply Region. Manager, Production, Yallourn The Commission is pleased to Mr K W Pocknee, DipEE was with effect from l February 1984. record its appreciation of the appointed Manager, Eastern He was formerly Manager, Coal valuable service over long Metropolitan Electricity Supply Production. periods by the following senior Region with effect from 8 August Mr J C Hutchinson, DipME was officers who retired on the dates 1983. He was formerly Field appointed Manager, Production, shown: Practices Engineer, Distribution Morwell with effect from Mr A H Bradshaw, Chief Engineering Department l February 1984. He was Engineer, Transmission Mr G A Hayball, DipEE, MIE formerly Manager, Power Operations on l August 1983 Aust was appointed Manager, Generation. after more than 42 years' service. Northern and Midland and Mr M C Hart, BA, Dip Grim was Mr E F Patterson, Manager, Mallee Electricity Supply appointed Manager, Personnel North-Eastern Electricity Supply Regions with effect from 17 Development with effect from RegiOn on 17 November 1983 October 1983. He was formerly l May 1984. He was appointed after more than 43 years' service. Developmental Engineer, from outside the service. Mr R 1 Urie, Manager, Planning Metropolitan Electricity Supply Ms S E ]ones, MEd, BCom was Investigations on l January 1984 Reg10n. appointed Manager, Personnel after more than 36 service. Mr N E Meagher, DipEE, MIE Policy, Planning and Review with Mr A D Windmill, Internal Aust was appointed Manager, effect from l May 1984. She was Auditor, on 6 February 1984 after North-Eastern Electricity Supply formerly Industrial Relations more than 43 years' service. Region with effect from 17 Development Officer, Industrial · D Mr C D .,ICl7.A Chairman, 0 c to b er 1983 · He was former l Y Re Iat!Ons epartment. Staff Board, commenced leave on Superintendent, Mallee Mr p B Harmsworth BCom 17 April 1984 prior to his Electricity Supply Region DipDataProc, MAcs: was ' . retirement on 6 August 1984 after Mr R J Cheffers, BCom was appomted Manager, Orgamsat1on more than 42 years' service. appomted Manager, Area Services wtth effect from 28 May . Administration with effect from 1984. He was appointed from ~~ M Alexander, Chief 19 October 1983. He was formerly outside the service. ·~ Fuel, on l July, 1984. Assistant Secretary, Secretarial Mr J A Nolan, BEc(Hons), after more than 36 years service. Department MAdmin, PMASSA was Mr L W Harcourt, Manager, Dr J P James, BE(Civil), MEngSc, appointed Director, Finance with Superannuation AdminiStratiOn, PhD, MIE Aust was appointed effect from 2 July 1984. He was on 12 July 1984 after more than Manager, Design Engineering formerly Treasurer, Treasury 44 years service. . and Environment with effect from Department. Mr TA W1seman, Manager, Mid- 31 October 1983. He was formerly Mr T C McCredden Western Electricity Supply Manager, Projects Planning. BCom(Hons), was appointed Reg10n and Manager, W1mmera Mr E C Stokes, DipEE. MIE Aust, Manager, Superannuation Electnclty Supply Region, on MIEEE (USA) was appointed Administration with effect from 17 July 1984 after more than Manager, System Planning with 13 July 1984. He was formerly 38 service. effect from 31 October 1983. He Manager, Funds Control, was formerly Principal Planning Treasury Department Engineer, System, Projects Planning Department Mr L L Shipp, DipME, D1pEE, MIE Aust, AAIM was appointed Manager, Production Services with effect from I February 1984. He was formerly Power Station Superintendent, Hazelwood. 71 Personnel Strength Age Table Staff Wages Total Ongoing special projects The following figures show the continue to receive attention in personnel strengths of the 15-1 9 395 I 305 I 700 respect of asbestos, coal dust, dermatitis/hand care, hearing Commission as at 30 June 1984: 20-24 I 434 2 173 3 607 conservatton, repetitiOn stram Total Personnel Staff Wages Total 25-29 I 392 I 852 3 24 4 injuries and screen based 30/ 6/ 83 10 724 12 074 22 798 30-34 I 469 I 427 2 896 equipment. The lost-time injury frequency 30/6/84 10 706 12 120 22 826 35-39 I 514 l 073 2 587 per million manhours worked for Number of personnel 40-44 I 137 948 2 085 1983/84 was 15.4 which compares with a rate of 15.2 for 1982/ 83. 1970-1984 45-49 965 904 1 869 Equal Em:ployment --Total personnel ('000) 25 50-54 I 052 882 l 934 Opportumty - Total wages 55-59 I 065 987 2 052 An officer was seconded from - Total staff the TAFE Board in October 1983 60-64 283 569 852 to help establish a framework for // 22 826 equal employment opportunity I'.. Total 10 706 12 120 7.0 within the Commission. 1'.._.....-7 Ten-year historical detail of Subsequently, an equal Commission employee levels is employment opportunity policy shown in Appendix 13. was launched in March 1984. Health and Safety Priorities have been established 15 During the year, general which include a review of accident prevention training was personnel policies, the directed towards the conduct of development of higher levels of J,.....- seminars and training sessions to awareness, the recruitment of v implement the Health and Safety women into technical and non- 1-o.. v [.....-- I-- j;7' lD Agreement, the details of which techmcal areas of employment "'f-- I-.. v are elaborated on in the "Employee Relations" section of this Report. Personnel as at 30 June 1984 Staff Wages Tota l ~ Administration (including secondments) I 688 - l 688 Power Generation I 413 3 018 4 431 Main Transmission Li nes, Terminal Stations '70 '72 '74 '76 '78 '80 '82 '84 and Substations l 119 687 1 806 Metropolitan Region (Supply) I 378 641 2 019 Country Regions (Supply) 1 95 1 2 090 4 041 Briquette Production and Distribution 87 445 532 Coal Winning 494 1531 2 025 General Services and Workshops - Latrobe Valley I 24 5 2 349 3 594 General Services and Workshops - Elsewhere I 331 1 359 2 690 Total 10 706 12 120 22 826 72 and an increase in the June June Total at participation of women in Food 'Trades 1984 1983 Training Schemes 30/6/84 supervisor~ administrative and -~~--~~~~ ~~--~- management poSltions. Other Cook 1 2 • Technical Trainees 545 mitiat!ves in progress include the Horticultural Trade • Apprentices (including 18 -~·------~---~------~------State Addttional development of a policy on Gardener 4 3 Apprentices) I 741 sexual harassment and the • Commercial Trainmg 40 formation of an Equal Printing Trade --~----~ ~~-~--- • Other Technical Employment Opportunity Screen Printer 1 Traming 5 Advisory Committee. Total 51 44 Women in the Workforce ~---~------~----- ~------~--- Selection Review The following statistics detail a Technical Training During the year a review of the comparative analys1s of women There are l 741 apprentices in Commission's selection and in the Commission's work force. 31 trades and 545 technical appeals processes was trainees in Commission formal undertaken with the assistance JuOO June trainmg schemes. Many other of the Victorian Public Service 1983 personnel are undertaking full Board. Submissions were received from a number of Number of Women Employees or part-hme studies to further their personal development employees, and input was sought Staff Employees I 322 1319 from unions and staff Wages 273 254 In order to ensure that the latest and best techniques for training associations. The practices of a Total 1 595 1 573 are used, the Commission, in number of public and private sector organisations were also Women in Technical Positions collaboration with the TAFE Board and the Industrial examined. The review team's Engmeer 15 14 Training Comm1ssion, 1s recommendations included: Scientific Officer 18 18 • the development and Sub-Professional 35 30 reviewing the syllabi of its technical training programs promulgation of a Total 68 62 Arrangements have been made comprehensive set of principles Women in Technical Training with TAFE to provide update of personnel management; Schemes courses to keep technical • the assignment of greater ~--·------·----·---~-~-~-~· Dtstribullon Officer 2 3 personnel abreast of the latest responsibility and accountability Electrical Operations developments These courses for selection to line Officer 5 3 are in addition to postgraduate management; Engineering Assistant 12 14 and experience and study • the development of objective, Drafting 12 17 awards which assist staff to gain consistent and equitable Communications htgh level qualifications, classif!cation systems; Officer 9 I undertake in-depth studies of • the establishment of an Scientific Assistant 14 8 specific problem areas or accessible appeals and Power Plant Operator 5 4 conduct developmental -·~-~·~-·~·~~·~-·~--·--- grievance process based on a Total 59 50 research. comprehensive set of principles; Scholarships Women in Apprenticeship Training Awarded Electrical Trades Durmg Total at Electrical Fltter 3 Year 30/6/84 Electrical Fitter & Internal Armature Winder 6 3 • At Universities Electrical Mechanic 10 8 Degree Courses I 2 Meter Mechanic 2 Postgraduate Awards ~~-~-~~---~------~-- l 2 Metal Trades • At Colleges of Instrument Maker Advanced Educatton & Repairer 5 5 Degree Courses 5 13 Mechanical Machinist 2 2 External Patternmaker 1 l • At Universities Turner and Fitter 5 6 Degree Courses 2 2 BU!ldmg Trades • At Colleges of Carpenter & Joiner 2 2 Advanced Education Painter 12 9 Degree Courses 2 2 73 • the development of sound Consultancy Assignments • Completion of negotiations for personnel and equal The Commission has continued refinancing floating multi- employment opportunity to provide an internal currency loan facility (USA) principles by which the new management consultancy K G Culley; Director, Corporate selection system can be service to improve the efficiency Planning established and its performance and effectiveness of • Discussion on the Alcoa monitored; and management, organisation (Portland) Tariff Agreement • the extension of fair and open structure, strategies and systems. Qapan) competition for advancement and Major consultancy assignments • Attendance at International appeal rights to wages during the year included: Energy Agency meeting and employees. Design and Construction Group discussions with electricity The recommendations made - Loy Yang Project utilities on energy conservation, by the review team have been • Organisation structure and system planning and public endorsed in principle by manning levels participatiOn processes . Commission Management. The Production Group _ Latrobe associated With tanff formulation report was distributed to unions/ Valley (France, USA) associations and throughout the organisation to provide the • Organisation structure • Attendance at International Energy Agency meeting and opportunity for comment on the Supply Group discussion with the Central report and the implementation • Metropolitan ES Region Electricity Generating Board of the recommendations. administration and structure regarding current approaches to Management Development • Extension supply system planning and electricity As a consequence of the procedures. forecasting (France, UK) recommendations of Cresap, Declaration of Financial McCormick and Paget regarding Interests management development m the As required by the Premier, Commission, a two-tiered senior Commission officers committee structure has been completed and submitted to the estabhshed consistmg of an Minister for Minerals and Executive Development . Energy confidential statements of Comm1ttee which compnses key the nature of any personal members of General financial interests. Management, and a • • Management Development Overseas V1s1ts . Co-ordinating Committee which Undertaken by Semor comprises Departmental and Management Regional Managers representing The followmg members of each of the Directorates/General management were reqmred to Manager Groups. undertake overseas visits during The Committees have upgraded the year: the Management Inventory 1 C Trethowan, Chairman System and are presently • Attendance at World Energy developing a Senior Officer Conference (India) Performance Review and. R 1 Weatherhead, General Development Scheme. This Manager, Supply Scheme IS for dlVlslOnal and • Attendance at Southern Pacific departmental heads. Electrical Convention (New Zealand) G W Bates, General Manager, Design and Construction • Attendance at conference on Disputes and Settlements in Construction Industry (Singapore) R E Hurley; Director, Finance (now retired) 74 ew legislation. and statutory requirements The following amendments to Ministerial Directives the Commission's legislation were In accordance with the State enacted during the year: Electricity Commission State Electricity Commission (Amendment) Act 1982, the (Clearance of Lines) Act 1983 Commission is required to (No 10001) publish in its Annual Report Amends the State Electricity mimstenal directives received Commission Act 1958 to _ durmg the year concernmg policy matters. • clarify ownership and responsibility for private electric The Commission received the lines; following mmisterial directives: • provide proper legislative Date Minister Directive support to a code of practice concerning the cutting of trees adjacent to power lines and the 14/9/83 Minister for Minerals That the 1982/83 accounts establishment of a Tree and comply Clearance Consultative with the Government's Committee; "Reporting Guidelines for • require private property Major Statutory Authorities". owners to keep trees on their In particular, the guidelines land clear of power lines or, in required that the Statutory certain circumstances, empower Dividend to the Consol!dated the Commission to carry out the Fund pursuant to the Public work and recover the costs Authorities (Contribution) Act incurred; be reported as an • provide for the making of appropriation of surplus. regulations with respect to This directive was withdrawn specifications for standards of by letter of 28 October 1983. construction and maintenance 14/12/83 Minister for Minerals The land acquisitions cannot of private electric lines. and be made at other than the State Electricity Commission Valuer~General's valuation, or (Brown Coal Royalty) Act 1983 his variation m wnting to that (No 10021) valuation. Amends the State Electricity In respect of this direcl!ve, the Commission Act 1958 to Commission would have • increase the royalty payable preferred to have had the on brown coal from 1.5 cents authority to negotiate more per gigajoule to 2.4 cents flexibly on the basis of other per gigajoule based on the independent valuations. energy content of coal extracted from each open cut during 1982/83; • mdex the royalty rate to increases in the consumer mdex. Other new legislation which has a significant direct bearing on the Commission includes: • Annual Reporting Act 1983 • Public Authorities Dividend Act 1984 • Equal Opportunity Act 1984 • Latrobe Regional Commission Act 1984 • Environment Protection (Review) Act 1984. 75 ublic safety and other regulatory responsibilities Electric Light and Power Two Commission licensing During the year, 885 applications Act 1958 examinations were held and, in for approval of prescribed 'rhere are 12 municipal addition, the Commission's Board articles were dealt with by the electricity supply undertakings of Examiners conducted the Board and approval was operating under this Act in Education Department's annual finalised in respect of 701 Victoria Of these, ll are located and mid-year examinations in articles. In addition, the Board in the metropolitan area and Electrical Wiring, Grade III dealt with 373 submissions for receive supply in bulk from the and IV at technical schools non-prescribed items under the Commission. throughout Victoria. In all, 4 574 Commission's voluntary article The other undertaking is candidates were examined. schemes. operated by the Monaro County Registration of Electrical Electrical Fatalities Council of New South Wales Contractors Of 14 electrical fatalities during which, by arrangement, has Registrations totalled 5 349, the year, 2 resulted from contact extended its supply mains to being 106 less than the previous With overhead lines, 5 from serve the Isolated areas of year. contact with exposed live Bendoc and Bonang in the far parts, 7 from interference with north·east of Victoria. incorrectly connected flexible Licensing of Electrical cords. Mechanics Electrolysis Mitigation A total of 26 592 licences were in force in the following grades: The Electrolysis Committee comprises representatives of the Grade "A' 18 943 (Licensed to carry out any Commission, electric traction electrical Wiring work) authorities, owners of under Grade "B" 3 559 (Licensed to carry out any ground pipes and cables in electncal wiring work under the Melbourne and in country areas supervision of an "A' grade and the Department of Minerals electrical mechanic. A "B" and Energy as the pipeline grade electrical mechanic may licensing authority: The main also supervise apprentices) Electrolysis Committee held two -·---~~---·---·---·-··-··------meetings during the year and, Grade "P" I 955 (Same as Grade "B" electrical under its direction, the Technical mechanic except that a holder of Sub-Committee continued its a "P grade licence may not mvolvement in the design, supervise apprentices) installation, operation and Grade "R'' 2 135 (Licensed to carry out restricted maintenance of mitigative electrical wiring work) systems associated with tractiOn mstallations and the co Total 26 592 ordination and testing of Electrical Approvals Board privately-owned mitigative The Commission acknowledges systems. the contmuing valuable Cathodic Protection contribution made by the A total of 349 applications for members of the Board in the permission to operate individual interests of electrical safety. cathodic protection schemes Under the Board's constitution, were approved under the two of its six members retire Cathodic Protection Regulations each year and are eligible for 1970, making a total of 2 002 reappointment. schemes operating under the Mr P J Marks, representing Regulations the interests of the Insurance The Commission is making Council of Australia, and increasing use of cathodic Mr G Edwards, representing the protection in its power stations to workers in the electrical trade in reduce corrosion of underground Victoria, were reappointed for a structures. further term of three years. 76 Statistics Contents Page 77 Appendix Tenyears' l progress Electricity Production and Sales c c c c c *These figures do not tnclude allowances for uriread meters Briquette Production and Sales Brown Coal Production cut 78 79 Appendix Tenyears 2 of financial statistics Profit and Loss Statement Balance Sheet 80 81 Appendix Ele~tr;icity customer 3statistics* Aggregates for all Electricity Supply Regions YEAR ENDED kWh SOLD PER CUSTOMER (AVERAGE) 30jUNE Individual Electricity Supply Regions YEAR ENDED NUMBER OF CUSTOMERS (000) 30)1JNE 1984 *These figures do not mclude allowances for unread meters 82 Appendix Electricity sales and 4 sales revenue* I SALES- GWh I SALES REVENUE MERC!AL ' . I' S[;pp;,J;:;s . MERC!AL . ' CU·S·T· ()._MERS. i \ ' ;±' · _I I (excl bulk T975 -~-4 si 5 , 1661 43o2i~2-52--f--8TI-32T9 .14 23o+ _ 332 ·~· 3.797 T962J:·';~;;J 197~ r039 ' _le84 __i_4~-+ 270 _i_ 87 -3 342 14 907J__ 3~2 ~ 82~_u JB_4 _, ~ J _2 674 J ;;;}- i lii--1-Hii i ;¥,-d!l-j :: u +~ li-:¥-H~: ~-m-Hi~: -H~U~~ m~- ~~ii: H:: H~f-~ ::- Hl~ fHfz+ ~~:~! ::l~ HFo+!~i: 1 ~ 84JI : -2 458_-L-6_316_-i--28' f 114 3 884 - 19453 - -'133__1 4.457 ' 7 226 3 "'t 4.549_j tm---=;J!if#lbsf~~=r~h-n!:~::::f: awrt: ~1:::--t=:~: __ i ;~ *These flgures do Appendix Generation and Sdisposition (GWh) Disposition Transmission losses~------ WoJ:ksusage~---~~--- --t··-.,,,.,-;-- r;·;-;;d··-;;.""'--·,;;n-r.+·-;;;;~·---r;""f--~ct--"';n-c--,="'+- Distribution losses and umead meters . 83 Appendix State &generating system Total Installed Plant Capacity Generators Installed at Power Stations At 30 June, 1984 POWER STATION SE."!' MAKE YEAR INSTALLED NO Steam LOYYANGA 2 Brown Boveri HAZELWOOD &2 Assoctated Electrica; to8 Parsons 1968. l971 YALLOURNW YALLOURN NEWPORTD 1980 MORWEl,L 1 l958 2to4 1958, 1959 (2) 5 1962 SPENCER ST. ll& Parsons 1953. 1959 (Melbourne City Cou:1cll) 60 Gas Turbine JEERALANG Al-4 56.5 Bl3 80 465 84 Appendix 6 continued Generators Installed at Power Stations At 30 June, 1984 POWER STATION MAKE MANUFACTURERS' YEAR INSTALLED MAXIMUM CONTINUOUS RATING Hydro McKAY CREEK (KIEWA) I to6 Metropolltan Vickers 1960 (6) WESTKIEWA I to 4 Metropohtan Vickers 1956, 1955 (3) (Boving 'Turbine) CLOVER (KIEWA) Engllsh Electnc 1944, 1945 DARTMOUTH 150 1980 ElL DON 1&2 Brillsh Thomson-Housto:1 60 1957, 1956 (Boving Turbine) RUBICON 1&2 Westmghouse 4.6 1928 (2) (Bovmg Turbme) LOWER RUBICON 2.7 1928 ROYSTON Westinghouse 0.8 1928 (Bovmg Turbine) RUBICON FALLS ASEA (Boving Turbine) Boilers Installed at Power Stations At 30 June, 1984 POWER STATION MAKE LOYYANGA International Combustn. HAZELWOOD YALLOURNW YALLOURN NEWPORTD MORWELL John 'Thompson John Thompson 85 Appendix Electricity 7 production State Electricity Commission of Victoria Interconnected System STATION YALLOURN I MORWELL I ... -~-· LOYYANGA I I I l GWh ~ \ cw;, ! I j f~€~~ ! I i 1975 I 2 545 493 12 409 702 J_;l6~ I _!80 _§238 J500 1 137 125 35 l _60 1976 I 2 361 474 13539 714 l!i~! ~~ ~1:3~ 1390 134 162 26 ~ _I ~ 1977 12 940 468 l 021 721 1 159_l 176 ~ 9_!3~i_L 1 455 270 176 ll 39 I 41 60 1978 2 184 467 !4 204 748 830 128 9 228 _ll 530 I 306 179 55 39 IIU 93 1979 2939 472 13526 753 1178 192 9406 I 1600 I 374 180 59 39 184 95 I 1 : 1980 ,~608 481 1:3_658 761 l~O_l _li39 ; 9 759 l 550 I 439 182 4? 39 I _§_J3_ _()4 1981 2606 461 '4 446T i 1 847 l 188_L_1!3§ _8~§11 500 252 120 I 131 t 530 !4 38 l16 ~. 1982 2310 430 17 608 7 1493 I 1 U!U 162 I ill'i4 1495 I 60 90 2 752 500 I 81 60 I I 1983 2059 426 J8882 ! 480 I 1 092 I lti~ i 6 ti91 I 250 I 12626 500 6 60 ! 1984 • 2 042 408 18248 I I 1472 !_()_~~ _1_6()_ l.§.B2~ 1210 376t 834 !3210 501 ! ! _60_ i 86 87 Appendix Capacity factors &and fuel used Capacity Factors at Power Stations(%) (Generated Basis) Interconnected System YEAR ENDED YALLOURNW MORWELL 30}UNE Fuel Used at Power Stations (Kilotonnes) Year ended 30 June STATION TYPE OF FUEL 1984 1983 Yalloum BROWN COAL 4 300.9 YalloumW Morwell RaieiWOOd LoyYangA Newport NewportD Richmond Spencer Street (MC C) OIL 0.7 Jeeralang GAS{TJ)* OIL---·-·· Summary 88 I 1980 1979 1978 1977 1976 1975 I 6 572.8 6 809.4 I 5060 7 i 6 071.2 4 440.2 5 086.7 I ; 6H 53.8 50.8 l 42.5 35.9 47.9 I I i 5 457.0 5 308.8 I 6 045.8 i 4 685.3 5560.3 I 3 889.5 I I 41.3 51.3 61.3 14.6 I 23.4 18.3 2 378.0 2413.1 l 784.8 2 275.6 ! 2 278.8 2 524.7 0.8 07 08 0.7 I 0.7 I 0.6 I 13 595.9 13 138.3 13 4310 I 13 728 5 13 047.7 11 590.5 J 2028 141~ 113~ I 46.4 ~4 24.Q_ I I I I 299.3 220.2 167.2 190.9 96.5 100.2 7.8 _2~ 27.0 18 0.4 - 13.3 18. I 17.0 3.1 O.l 0.1 68.3 56.3 339 12.2 0.4 0.4 15 529.2 7 042.6 I 28003.7 27669.6 26322.3 26 760.6 --r------25 327 0 I 23 091.4 565.3 415.9 331.6 279.8 161.8 172.1 1315 151.8 140 0 32.4 25.0 19.4 I I 15 529 2 7 042.6 I 89 Appendix Transmission and 9 distribution systems Overhead Lines INCREASE DURING TOTAL AT 30/£/84 YEAR ENDED 30/£184 Rec)lons33kV, 22kV, 11 kV, 6 6kVand Low VoltageapprcXJmately equate Route kmandexciude Underground Lines 90 Appendix 9 continued Substations 91 Appendix Brown coal and 10briquette production (Kilotonnes) YALLOURN, MORWELL AND LOY YANG OPEN CUTS PRODUCTION DISTRIBUTION YEAR ENDED 30JUNE 408 92 YALLOURN NORTH EXTENSION BRIQUETTE FACTORIES OPEN CUT PRODUCTION DISTRIBUTION PRODUCTION DISTRIBUTION MORWELL DOMESTIC INDUS'l'RIAL. PUBLIC ~~f.~~r 273 273 I 092 293 628 171 242 242 946 196 586 164 188 188 I 035 161 617 257 211 2ll I 064 123 600 341 255 255 I 131 100 583 448 243 243 1253 77 589 587 230 230 I 081 61 582 438 208 208 993 44 547 402 230 230 745 32 477 236 219 760 219 ·-· 28 483 249 (!)includes s!ock variation 93 Retail ele~triqity supply 11 State of V1ctona SUPPLY AUTHOIUTY CUSTOMERS (/IT 30/6/84) RETAIL SALES (1983/84) GWh PERCENTAGE OF GRAND TOTAL State Electricity Commission of Victoria Metropolitan E.S. Region 490.2 29.4 5 645 26.9 Extra-Metropolitan E.S. Regions 899.9 53.9 11470 54.7 Total SEC Retail Supply 1390.1 83.3 17115 81.6 Metropolttan City Councils (recetvmg bulk supply from SEC) Melbourne (excl. supply to Flernington) 30 8 1.8 1218 5.8 Box Hill (also supplying Ctty of Nunawading) 54.6 533 2.5 Brunswick 20.4 155 0.7 Coburg 21.4 196 0.9 Doncaster and Ternp!estowe 28.0 239 1.1 Footscray (also supplying part of Sunshine) 557 2.7 Heide1berg(also supplying part of Northcote) 264 1.3 Northcote l.l 110 0.5 Port Melbourne 4.1 104 Preston 325 Wi1ltarnstown 10.2 6.6 160 0.8 Total 278.5 16.7 3861 184 Total SEC Supply* 1668.6 100.0 20976 100.0 OTHER Monaro County Council N.S.W (serving Bendoc and Bonang) 0.2 • I Grand Total 1668 8 100.0 20977 100.0 *Standard Tariffs 94 Appendix Statistical summary 12State of Victoria 1983/84 1982/83 I 00 Customers supplied at 30 June ---~------1- - °~-o~og -T:. ·-~·- ~~ ~-o~··Jl, State Electricity Commission retail supply 1 ; I Other metropolitan undertakings (receiving bulk supply from SEC of Victoria) 1 1 Total SEC supply 1 669 I 64Ji Bendoc and Bonang(suppliedby Monaro County Council- N.SW) 0.2 0.2 I Total customers supplied 1 669 I 641 1 Population of Victoria at 30 June 4053* I 4 035 Electricity sales-retail supply SEC domestic commercial ~fa~2830 ~~~l2 707 industrial 7146 6677 traction 284 28o I public lighting Total SEC retail sales : __17~~~+ ---:lc-::-6-:-!~::-::~-l Other metropolitan undertakmgs (receiving bulk supply from SEC of Victoria) 1 3 861 : 3 791 I Total SEC supply I 2097y I 2025j I Bendoc and Bonang (supplied by Monaro County Council - N.SW) Total -retail 20977 Generated (including purchases) Interconnected system 25752 Bendoc and Bonang (supplied by Monaro County Council NSW) 1 Total generated (including purchases) 25 763 I 25 J97 Installed generating plant capacity of power stations at 30 June Brown coal stations (Yallourn, Yallourn W, Morwell, Haze1wood and Loy Yang A) --t~ ! --?1tr_l. Other stations Hydro stations 1578 . 1 578 Total installed generating plant capacity of power stations--- 6844 Maximum coincident demand on SEC interconnected system --r 4837 4497 (1984 winter compared with 1983 wmter) (317/84) (27/6/83) *Esttmated 95 Appendix Personnel 13strengths Full-Time Employees by Organisational Unit Historical Personnel Strengths EMPLOYED AS M 30/6/84 30/6/84 30/6183 STAfF WAGES MALE fEMALE TOTAL MALE fEMAcE 1'0TAL MALE fEMAcE MALE fEMAL Bead Office-Based Departments Staff 4 618 684 4 739 Latrobe Valley-Based Departments Staff 2 457 266 2 358 251 Electricity Supply Regions 9405 131! Total WagesTC847-2i3lTB20 ~ ora.nCf'i'otaf2T231~159trzf22sT57: Engagements 30/6184 30/6/8 Terminations 30/6/8 ~Til North-Eastern-~~-- 215 NOiih8rrii:i.i1CfM!illanct --- -=-1s""7,__--...:,:..:. South-Western ----~~-163 Wlmrriera ------64~--~7 Grand Total-All Terminations Extemai Secondments, Staff 606 Scholarships, Commercial Trainees and Cadets. 96 30/6/82 30/6/81 30/6/80 30/6179 30/6178 30/6171 30/6176 30/6175 MALE fEMALE: MALE F'EMALL MA~,E FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MAtE FEMAL.S MALE FE"tv~AL,£ 3016/82 3016/81 30/6/80 30/6179 3016178 80/6177 80/6/76 30/6115 97 Appendix .. A summary of corporate performance & -zmeasures and targets GOAL PERFORMANCE MEASURE TARGET ACTUAL: 1983/84 Fl!IA!ICIAL YEAR Customer 1 Customers whose energy • Customer satisfaction as • Improving results from • 64% of respondents are related needs are being measured by surveys. annual surveys. satisfied with level of met in a timely and service provided effective manner. • Number of referred • Less than 600 written • 476 written complaints. written operating and complaints per year. service complaints and • To be developed (phone • To be developed. telephone and personal and personal complaints). complamts. • Verified voltage • Less than 12 per month • vPnll»n voltage com complaints. per 10 000 customers. customers/mont • Electrical fatalities. • Less than 3 per million of population per year by 1988/89. 3 Generation, transmission • Interruption Index: kVA • Less than 5 per year. • 4.4 hours per year. and diStribution systems hours lost/kVA installed. which are planned, • Tariffs % rise in average • Average rise to be less than • 4.4% rise in average designed, constructed and tariffs. Melbourne CPI increase. tariffs, announced in July '84. operated at the lowest • Tariffs domestic and • Average levels to be in • 7.6% rise in Melbourne possible overall cost consis industrial and lower half ofrange for CPI index during 83/84 tent with environmental and commercial. mainland Australlan • Tariff levels are in the reliability requirements. utilities. middle of the range for mainland states. ·--.-~-----~------~·--·---~----- 4 Load management • To be developed • To be developed. • To be developed. techniques which utilise spare capacity on base load plant. 5 Increased application of • Policies defined and • Report released. cost effective cogeneration opportunities identified facilities. by June 1985 and encouraged. Employee 1 Motivated. skilled and • Percentage of key • 100%. • 94%. productive employees positions With capable performing satisfying work. backup personnel. • GWh and revenue (in To be achieved by 1988/89. 1982/83 dollars) per • l.l GWh sold/employee. • 0.93 GWh sold per employee. employee • $61 000 revenue/employee. • $57 419 revenue per employee. - per $1000 net in service • 2.8 GWh sold per $1000 of • 3.36 GWh sold per $1000 assets (CCA) at beginning net (CCA) assets. of Net CCA Assets. of year (in constant dollars). • $208 revenue per $1000 of • $208 revenue per $1000 of (NOTE: In future, GWh net (CCA) assets. Net CCA Assets. and revenue to take into • More to be developed. estimated to ,...,.,,rt,c>rv,ti,,n 2 Sound and stable • Zero loss due to disputes. • 30.7 GWh lost. employee relations. • 21 267 manhours lost. 3 Equal • Policies and practices • Equal opportunity unit practices employees. established by June 1985. established. ---- - .. ~------··-····-···------4 Improvement in health • Lost time mjury • Less than 8.5 per million • 15.4 per million manhours. and safety performance. frequency rate. manhours by 1988/89. • lost due to health • Zero losses. • I 588 manhours lost. related issues. 5 Effective two-way • Means of communi • All levels of management • Policies and guidelines communication within the cations With all employees: to hold meetings with are being developed. Commission. -meetings. their employees at least 4 times per annum. • Employee satisfaction • Improving results from • Survey mechanism to be with level of communication. annual survey. developed. 98 GOAL PERFORMANCE MEASURE TARGET ACTUAL: 1983/84 FINANCIAL YEA!\ Financial l Real rate of return on • Real rate of return. • 4% within five years. • 3.0%. capital consistent with Government policy. 2 Sufficient revenue to • Level of mternal funding • Average of 40%. •32.5%. cover all costs and provide a level of internal funding consistent with sound financial viability. ---~-- 3 Credit rating equivalent • Interest cover. • About 1.!. • 0.58. to AAA on domestic and • Real level of debt • Debt/equity 60/40. • 59/41 international markets. 4 A sound level of short • Liquidity cover of short • Monthly average to be • 12-15 days average term liquidity. term commitments. withm the range of 8-12 days. 5 Assessment of, and • Formal review of all risk • To be reviewed on a • Reviewed annually appropriate policies to management policies. yearly bas1s. meet, all the business risks. Natural Resources To be ach1eved by 1988/89 l Efficient and cost • %of total electricity that is • 85% of generation • 73.3% of generation. effective conversion of generated from brown natural resources into coal stations. electricity delivered to the • %of total electricity • Not less than 7% of • 7.2% of generation. customer. generated from hydro and generation. other renewable resources. • 0!:0 ofVJctorian secondary • Not less than 18% of • 1983/84 data for Victorian energy (non-air and sea Victorian secondary secondary energy not transport) supplied from energy available yet brown coal and hydro. • Oil and natural gas usage • Usage of gas 30 PJ (max). • 516 PJ of gas. m power stations. Usage of 01!- 2 PJ (max). • 15 PJ of oil 2 Alternative cost effective • Opportunity sales to • Sales plus own use to • 63% of annual production uses of brown coaL maxim1se the use of exceed 95% of annual capacity briquette factory after production capacity of meetmg power station factories in service by needs. 1988/89. Environment 1 Agreement with the • To be developed for air, • To be developed. • To be developed. Government on, and water, noise and compliance With, landscape. environmental policies, standards and procedures covering the plannmg, design, construction and operational phases of all projects. 99 Appendix 14 continued GOAL PEJIFOIIMANCE MEASURE TARGET ACTUAL: 1983184 FI1!11!.NCIAL YEAR Conservation l Efficient use of energy in • Estimated net additional • Average of !50 GWh/year • 21 GWh in 83/84; (no VIctoria, particularly savmgs each year due to by 1988/89 (includes mcrease over 82/83). electricity: new and existing savings by customers conservation programs. attending Energy Utilisatton Centres). • Fuel substitution - • 100 GWh within 5 years •46GWh. electricity in place of oil and gas. 2 Efficient use of energy • Fuel consumed (tonnes of • Less than or equal to 1.5 • !.58 tonnes per MWh. within Commission. Morwell coal equivalent) tonnes/MWh (1980-83 per MWh generated m rate). brown coal power stations. • Energy usage m • Reduce energy • 960 (GJ x 1000) were used Commission buildings consumption in buildmgs in SEC buildmgs and and transport. by 5°/.J in 1984/85, 7.5% in transport (preliminary data 1986/86 and 10% in only). 1986/87 (to be developed further). Community l Corporate activllies • Results of public surveys • lmprovmg trend from • 60% favourable which take into account on trends and attitudes. annual survey results impression. socwltssues and carried out on a commumty needs. consistent basis. 2 Community involvement • Assessment of public • Survey results to indicate • Survey mechamsm being in, and awareness of, the participation throughout higher participation level developed. Commission's activities, year than pnor year • Extensive public future plans, objectives and consultation in tariff functions. setting process dunng 1983/84. 3 Operation in accordance • Annual budget • Operate within agreed • Capital expendtture Wtlh the criteria limits. $9ll.8M. (Approved established from time to budget $1044M) time by the Minister in O&M Expenditure respect of efficiency; $1370M (Approved budget economy, safety, reliability • Loy Yang $1340M. and social objectives. - Capttal cost. • Estimate of $4752M m • Loy Yang- cumulative June 1982 dollars Capttal Expenditure to - Operating and • 10% less than the estimate 30/6/84 $! 648.4M (June maintenance costs. of $!56M (in December 1982 prices). 1982 dollars) per year for • O&M costs not applicable the first 5 years, and less for 1983/84. than 0.5% increase per year in real terms, Average available thereafter. capacity factor. • 75% over the life of • Not applicable for project. 1983/84 lOO Appendix El~ctricity 15tanffs The followi:-~g electricity tariffs will appiy to accounts for meters scheduled for readmg on or after • 27 August 1984 for customers billed on a monthly basis; • 25 September !984 for customers billed on a two monthly basis; • 19 October 1984 for customers bli!ed on a three~month!y basis, This tariff schedule is applicable to ail areas of V1ctona suppiled w1th electnc1ty from the State Electricity Commission's system, includmg the City Council areas of Melbourne, Box Hill (including Nunawading), Brunswick, Coburg, Done aster and Templestowe, Footscray, Heidelberg, Northcote, Port Melbourne, Preston and Wilhamstown, Domestic Tariffs General Purpose Tariffs Tariff GD Domestic kWh c/kWh Generally applicable to commercial and industrial Available for individually First 120/quarter 18.97 customers excluding farms. metered private houses Next 900/ " 7.63 kWh c/kWh and flats, Balance 8.41 TariffsD&E Minimum charge per account $16.66/quarter Option 1 First lOO/month 22.62 Next 400/ " 18.74 TariffGR Next 4 500/ 16.55 Multiple Domestic kWh Next20000/ 8.89 Avatlable to boarding, First 15 000/quarter 11.06 Balance 8.30 apartment and special Balance 8.41 Supply Charge $7.90/month accommodation houses Supply Charge$23.70/quarter Option 2 and other approved places 7 a.rn. to 11 p.m As for Option I, incl. Supply Charge of permanent residence, 11 p.m to 7 a.m All consumption 2.86 Meterrental $2.62/month TariffsY&J Above rates shown are for low voltage supply: Prescribed Hours Water and Space Heating Where supply is at high voltage, energy charges are (Available with Tariffs reduced by 4%. GD & GR) All consumption 2.86 Available for permanently wtred storage water and TariffG storage space heaters of approved types. Commercial Residential First 5,000/month 11.37 Available for the Balance 9.00 residential section of Community Service Tariffs hotels, motels and other approved places of non Includes churches and those institutions and benevolent permanent residence, societies wpich are registered with the Health Supply Charge $7.90/month Commission, under the provis10n of the Hospitals and Charities Act (e.g. public hospitals, benevolent homes TariffsY&J and socteties, child welfare institutions, pre-school Prescribed Hours Water and Space Heating centres, youth clubs and elderly cttizens clubs} (in conjuncllon with kWh C/kWh Tariff G) All consumption 2.86 TariffN Available for permanently Option 1 Ftrst 5 000/month 11.06 wired storage water and Balance 8.76 storage space-heaters of Supply Charge $7.90/month approved types. 0ption2 7 a .m. to 11 p.rn. As for Option I, incl Supply Charge Tariff V General Purpose Low Voltage Demand 11 p.rn. to 7 a.rn. All consumption 2.86 This tariff 1s generally available to all customers taking Meter Rental $2.62/month supply at low voltage. Option 1 Tariff!{ Low Voltage Demand Demand Charge $13.08//kW/month Option 1 Energy Charge All consumption 2.51 c/kWh Demand Charge $12.61/kW/month Min. Chargeable Demand 100 kW or 60% of Energy Charge All consumptlon 2.61 agreed rate, whichever is greater. Minimum Chargeable Demand- 100 kW or 60% of Option2 agreed rate, or whichever is greater. Demand Charge Option2 • Part A, 7 am to 9 p.rn. Mon to Fri. $13.08/kW/month Demand Charge • Part B, Additional demand outside • Part A, 7 a.rn. to 9 p.rn. Mon. to Fri. $12.61/kW/month Part A periods $2.80/kW/month • Part B, Additional demand outside Energy Charge - As for Option 1 Part A periods $2.71/kW/month Meter Rental $6.32/month Energy Charge - As for Option I Minimum Demand Charge Meter Rental $6.32/month Part A, Minimum demand charge Minimum Demand Charge as for Option 1, plus • Part A, Minimum demand charge Part B, Minimum additional demand charge based as for Option I, plus upon lOO kW or 60% of additional rate • Part B, Minimum additional demand charge based whichever is greater. upon lOO kW or 60% of additional rate whichever is greater. 101 Appendix 15 continued TariffH High Voltage Contract Demand Time of Use TariffF Commercial Cooking All consumption 11.12 c/kWh This tariff is generally Option l Option 2 Option3 available to a 11 customers 6.6 kV to 66 kV 220kV & Tariff M High Voltage Demand taking supply at high 22 kV above Option 1 (66, ll or 22 kV supply) voltage. Demand Charge $12.54/kW/month Contract Demand ChargekW/mth kW/mth kW/mth Energy Charge 1.91 c/kWh 6.82 6.01 5.99 Min. Chargeable Demand 500 kW Energy Charge or 60% of agreed rate, whichever is greater. • Peak period (7 a. m. to c/kWh c/kWh c/kWh Option 2(6.6, ll or 22 kV supply) ll p.m. Mon. to Fri) 4.15 3.63 3.29 Demand Charge • Off-peak periods 1.04 0.92 0.88 • Part A, 7 a .m. to 9 p.m. Mon to Fri. $12.54/kW/month (all other times) • Part B, Additional demand outside Mmimum Chargeable Part A periods $2.79/kW/month Demand I 000 kW 10 000 kW 40 000 kW Energy Charge As for Option l Meter Rental $6.32/month Minimum Demand Charge Farm Tariffs • Part A, Minimum demand charge .. , __.. , .. ______as for Option L plus TariffB kWh c/kWh • Part B, Minimum additional demand charge based Option 1 First 300/quarter 21.23 upon 250 kW or 60% of additional rate Next 14 700/ " 11.15 whichever iS greater. Next 120 000/ 9.20 Balance 8.30 Supply Charge $26.70/ quarter General 0ption2 .. ---~···------7 a.m. to ll pm. As for Option L me! 'Supply Charge This Tariff Schedule consists of a summary of new ll p.m. to 7 a.m. All consumption 2.86 c/kWh tariffs. Other tariffs such as Public Lighting, Traction, Meter rental $7.86/quarter Country Bulk Supplies, Standby Supply and Buyback General Purpose Low Voltage Demand Tariff V is also Rates for private generation have also been revised. available for farms. Customers will be advised directly of details. Full details of different tariffs and the terms and conditions upon which electncity is supplied to Obsolescent Tariffs customers are contained in the Government Gazette of 26 July 1984 and are available on request. Tariffs listed m this Section are not available to new customers and will be withdrawn progressively: Tariff A Lighting kWh c/kWh First lOO/month 24.66 Balance 19.58 TariffC Power and Heating Option 1 First lOO/month 22.62 Next 4900/ " 14.57 Balance 8.97 Supply Charge $7.90/month Option2 7 a.m. to 11 pm. As for Option 1, incl Supply Charge ll p.m. to 7 a.m. All consumption 2.86 Meter Rental $2.62/month Prescribed hours Tariffs Y and J are not available to new non-domestic customers m conjunction with Tariff N, D & E, and B where a Time-of-Use Option 2 is available. 102 -.... MAL LE E ESR 9. ~~~~·l··. WIMMER A ESR GIPP SLAN D ES R