1969 VICTORIA STATE ELECTRICITY COMMISSION OF VICTORIA FIFTIETH ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 1969 TOGETHER WITH APPENDICES PRESENTED TO PARLIAMENT PURSUANT TO SECTION 82 (b) OF STATE ELECTRICITY COMMISSION ACT No. 6377. By Authority: A. C. BROOKS, GOVERNMENT PRINTBR., MELBOURNI!. No. 11.-10560/69.-70 cents State Electricity Corn miss ion of Victoria 50th Annual Report 1968-69 Chairman and General Manager W. H. Connolly, C.B.E., D.Eng.(Hon.), B.E.E., B.Com ., F.I.E.Aust., M.I.E.E.E. (U.S.A.) Commissioners T. P. Scott, F.A.I.I. B. J. Callinan, D.S.O., M.C., B.C.E., F.I.C.E., F.I.E.Aust., F.A.P.I. C. R. Darvall, C.B.E., F.A.S.A. Deputy General Manager N. R. White, M.E., F.I.E.Aust. Assistant General Manager K. L. Murray, F.I.E.Aust. Assistant General Manager J. C. Trethowan, B.Com., A.A.S.A. (Administration) Assistant General Manager G. Paterson, B.C.E., F.I.E.Aust., A.M.A.S.C.E. (Generation and Transmission) Assistant General Manager R. G. Chapman, B.C.E., M.I.E.Aust., M.I.C.E. (Marketing and Distribution) Secretary F. P. Chipperfield, B.Com., J.P. Head Office 15 William Street, Melbourne, 3000 Contents Page Number Summary of Operations 4 Financial Review 7 Revenue Account 11 Balance Sheet 12 Extensions to the State Generating System 14 National Consultative Committee on Nuclear Power 16 Construction 17 Future of Yallourn Township 18 Metropolitan Municipal Electricity Distribution Systems 20 New Legislation 21 Electricity Production 22 Brown Coal Production 23 Briquette Production and Sales . 24 Electricity Supply 26 Tramways - Ballarat and Bendigo 29 Personnel 31 Public Safety and Other Regulatory Responsibilities 35 Commissioners 37 Staff 39 Brief Pictorial History 43 STATISTICS Ten Years of Financial Statistics 44 Ten Years of General Statistics . 46 Revenue Account Supplementary Information 48 Balance Sheet Supplementary Information 51 Capacity of Generators and Boilers Installed 55 Generation of Electricity HH 58 Load Factors and Fuel Used S.E.C. Power Stations 60 Brown Coal and Briquette Production 62 Transmission and Distribution Systems 64 Victorian Electricity Supply Undertakings- Summary of Consumer and Sales Statistics 65 Consumer Statistics 66 Electricity Sales and Income 67 Metropolitan and Country Electricity Supply Undertakings (Municipal and Private) 68 Hazelwood Power Station - in back­ Statistical Summary 69 ground Morwell Open Cut on left, Schedule of Standard Tariffs 70 Morwell Power Station and Briquette Factory on right. Map of Victorian Electricity Supply System Back Cover Summary of Operations FINANCIAL 1968/69 1967/68 $ $ Total income 216,683,053 198,332,239 Balance of income used for capital works 3,199,849 2,455,180 Fixed assets- at 30th June cost 1,270,639,649 1,184,270,818 less depreciation 329,161,724 293,942,911 $941,477,925 $890,327,907 ELECTRICITY PRODUCTION AND SALES Maximum coincident demand (1969 winter compared with 1968 winter) MW 2,38711 2,429 (22/7/69) (2/7/68) Electricity generated (incl. purchases}* GWh 12,867.7 11,935.0 Electricity sales (incl. interchange to New South Wales} GWh 10,554.4 9,716.3 Number of consumers (excl. bulk supplies} at 30th June 981,535 944,434 Average consumption per domestic consumer kWh 3,750 3,474 per head of population {Victoria) kWh 2,910 2,796 11 The decrease is due to the commissioning of the 150 MW power station of Alcoa of Australia Pty. Ltd. Including Alcoa, the maximum coincident demand was 2,489 MW. *Includes energy from Snowy Mountains scheme and interchange from New South Wales. 1 GWh (gigawatt-hour} 1,000,000 kWh (kilowatt-hours). 4 50th Annual Report for year ended 30th June 1969 The Hon. J. C. M. Balfour, M.L.A., Minister for Fuel and Power, Melbourne. Sir, In conformity with the provisions of Section 82 (b) of the State Electricity Commission Act No. 6377, we have the honour to present the 50th Annual Report of the Commission covering the financial year ended 30th June, 1969, together with balance sheet and revenue account. Jubilee of the Commission lt was heartening that the Commission's Jubilee Year was a most successful one. Income for the year was $216,683,053 and expenditure $213,483,204, leaving a balance of income to be used for capital works of $3,199,849. Excluding the reduction in the large requirements of Alcoa of Australia Pty. Ltd. which has completed its own power station at Anglesea, electricity sales increased by 8.4% (page 26) exceeding the long term average despite increasing competition from other sources of energy. In addition, sales of briquettes reached the highest level yet achieved (page 24). During the year 37,101 additional consumers, including 1,895 farms, were connected to the Commission's distribution system. The long term objective of electrification of the State is virtually completed. The construction programme is proceeding to schedule. The sixth 200 MW generating set came into service at Hazelwood Power Station, raising its capacity to 1,200 MW. A further 200 MW set will be commissioned by the end of 1969 and another by the end of 1970 thereby completing the station. The construction of Yallourn 'W' Power Station is proceeding to programme and one 350 MW set is due to come into service early in 1972 and the other in 1973. Extension and augmentation of the State transmission system is continuing. The first 500 kV line between Hazelwood and Keilor at present operating at 220 kV wi 11 operate at 500 kV in 1970. Since the first Electricity Commissioners were appointed in 1919 the Commission has grown into the largest electricity supply authority in Australia, serving nearly one and a quarter million customers and with nearly $1,300 million invested in its capital assets. With the development of the State's resources of brown coal and hydro power Victoria has overcome the handicap which its industrial development had faced for many years through being too dependent on imported fuels for its energy requirements. Through sound long-term planning the State's electricity generation and distribution system has been progressively developed to meet the ever-growing demand for electricity, and has provided a great incentive to industrial expansion and contributed in a large degree to the development of Victoria. History of the Commission The development of the Commission has been closely interwoven with the economic and political development of the State over a most important period in its history and certainly at a time when there has been unparalleled progress. lt seemed appropriate therefore that the history of the Commission should be recorded at this time. 5 Accordingly, Mr. N. Goss, then a senior executive of a leading publishing company, was engaged to direct this task and Mr. C. Edwards, a distinguished journalist, was later engaged to write the history. The Commissioners decided that these fifty years should be recorded objectively. While arranging for the author to have access to all Commission records and any guidance he might require, the Commissioners have not sought to impose any policy restrictions on the content, treatment, or form of presentation. These, therefore, will be essentially the author's. The Commission was fortunate to have available in a consulting capacity in relation to this history the services of Mr. W. J. Price, former Deputy General Manager, who retired in 1964 after having served in a number of the most senior administrative positions in the Commission dating back almost to its inception. Mr. Price is in a unique position of having had personal contact with Commissioners and senior officers throughout the 50 years of the Commission's history. The history will be published towards the end of 1969. Jubilee Dinner To mark the 50th anniversary of the first meeting of the Commission, a Jubilee Dinner was held on 24th March, 1969. The Commission was honoured to have amongst the many distinguished guests, the Governor of Victoria, His Excellency Major-General Sir Rohan Delacombe, K.C.M.G., K.B.E., C.B., D.S.O., K.St.J., the Premier, the Hon. Sir Henry Bolte, K.C.M.G., M.l.A., and yourself, together with several former Ministers of the Commission, members of the Government and representatives of the Parliament of Victoria. Also present were representatives of electricity and briquette consumers, contractors to the Commission, financial institutions, other supply authorities both within the State and from other States and various organisations associated with the Commission's activities including trade and employee organisations. In addition, a number of the longest serving personnel of the Commission were present. The Commission's only regret on the occasion was that because of space limitations the numbers that could be invited from each of these latter categories had to be restricted. However, the function did permit the bringing together of a very wide and representative gathering to suitably mark the occasion. Expo Electric '69 In October, 1969, Expo Electric '69- one of the most ambitious exhibitions held in Australia - will be sponsored by the Commission. Electrical manufacturers from Europe, North America and Japan are to join with the Australian electrical industry in this project. With the theme "Tomorrow is Electric", Expo will show the many applications of electricity, demonstrate the technological advances of recent years and preview some of the foreseeable benefits which progress in electrical and electronic technology will bring. The Commission expects that this will be an event of outstanding interest to the general community. A brief pictorial history of the Commission has been appended to this 50th Annual Report for the interest of readers.