Hon Mike Nahan MLA Treasurer; Minister for Energy; Citizenship and Multicultural Interests Ourref: 48-13528; 48-13527 Hon Ken Travers MLC Chairman Estimates and Financial Operations Committee Parliament House PERTH WA 6000 Attn: Mr Mark Warner Committee Clerk Dear Mr Travers QUESTIONS PRIOR TO 2014-15 ANNUAL REPORT HEARINGS - SYNERGY AND HORIZON POWER In response to the Committee's letter of 20 October 2015, please find attached responses to the questions prior to hearing, in respect of Synergy and Horizon Power's 2014-15 annual report. Yours sincerely DR MIKE NAHAN MLA TREASURER Att. CC: Hon Peter Collier MLC Minister representing the Minister for Energy in the Legislative Council 1 9 NOV 2015 Level 13, Dumas House, 2 Havelock Street, West Perth, Western Australia 6005 Telephone: +61 8 6552 5700 Facsimile: +61 8 6552 5701 Email: [email protected] ESTIMATES AND FINANCIAL OPERATIONS COMMITTEE 2014/15 ANNUAL REPORT HEARINGS QUESTIONS PRIOR TO HEARING Synergy Annual Report 2014/15 Hon Robin Chappie asked: 1) Page 5 under "Our Business," I ask: a) How many people are employed at each of your nine power stations? Answer: Employees (2014-15) Cockbum Power Station 19 Kalgoorlie Gas Turbine Mungarra Gas Turbine 5 Pinjar Power Station Kwinana Power Station (includes Kwinana Gas Turbines) 11 Geraldton Gas Turbine 0 Worsley (South West Co-Generation Joint Venture) 0 (operated by Worsley Alumina) Muja Power Station 337 Collie Power Station 1 FTE + contractors as required. How many people are employed at each of your nine wind farms? Answer: Employees (2014-15) Albany Wind Farm Bremer Bay Wind-Diesel System 4 Esperance Wind Farms Hopetoun Wind-Diesel System Coral Bay Wind-Diesel System 2 Denham Wind-Diesel System 2 Kalbarri Wind Farm 1 Mumbida Wind Farm 6 How many people are employed at your one solar farm? Answer: Employees (2014-15) Greenough River Solar Farm 1.5 2) Page 21 under "Delivering energy" you describe two station transformers failing and a partial cooling tower collapse at Muja Power Station, I ask: a) Have these issues been rectified? Answer: Yes. The collapsed section of the cooling tower has been repaired and is back in service. b) If yes at (a), how much money was spent rectifying these issues? Answer: $6,224,277 c) How much electricity has the units in Muja A and B produced this year? Answer: Total energy sent out from 1 July 2014 to 20 June 2015 (Mwh) Muja G1 14,113.91 Muja G2 46,693.57 Muja G3 55,252.25 Muja G4 99,490.18 d) What is the current value of the Muja Power Station? Answer: This information is not required under accounting and reporting procedures and is not evaluated by Synergy. e) Due to ongoing failures, the extraordinary amount of money that has been spent on this plant in the past five years, and the age of the facility, are options being considered for the selling and/or mothballing of this facility? Answer: No f) If yes to (e), what options are being considered? Answer: N/A g) If no to (e), why not? Answer: The Muja Power Station plays a vital role in providing base load electricity generation within the South West Interconnected System and has proven itself during significant periods of 2015 to be the only generation unit capable of supplying energy to the Great Southern Region of Western Australia. Without Muja AB generating during the periods where Western Power transformers failed, the Great Southern Region would not have had a reliable supply of electricity. 3) Page 31 under "Emissions to air," I ask a) How much C02e has been emitted by each of your power stations, wind farms and solar farm? Answer: Total Emissions (2014-15) C02e tonnes Cockburn Power Station 260,410 Pinjar Power Station 376,980 Kwinana Power Station (includes Kwinana Gas Turbines 602,490 Mungarra Gas Turbine 82,910 Geraldton Gas Turbine 30 Worsley (South West Co-Generation Joint Venture) 623,890 Kalgoorlie Gas Turbine 1,750 Muja Power Station 3,744,290 Collie Power Station 2,024,280 TOTAL 7,717,030 Wind and solar farms do not emit C02e. 4) Page 52, under "Statement of Comprehensive Income," I ask: a) How much money did Synergy spend on fuel for their generation facilities alone? Answer: $368.7 million b) From which companies did Synergy purchase its fuel? Answer: Synergy has long-standing fuel supply contracts with Premier Coal and NorthWest Shelf Gas. c) How much money did Synergy pay to each of these companies? Answer: The terms and conditions relating to volumes and pricing of contracts are commercial in confidence.