Eraring Energy

Eraring Energy

Type	Government-owned corporation
Industry	electricity generation
Founded	2 August 2000 (2 August 2000)
Headquarters	Sydney, Australia
Key people	John Priest, Murray Bleach and Ian Murray (Directors) Peter Jackson (Managing Director)
Revenue	A$609m[1]
Operating income	A$584m[1]
Net income	A$(664m)[1]
Total assets	A$1,178m[1]
Total equity	A$999m[1]
Owner	Treasurer of New South Wales - 1 share Minister for Finance and Services - 1 share
Number of employees	406[1]
Parent	New South Wales Government
Website	www.eraring-energy.com.au

Eraring Energy is an electricity generation company in Australia that is owned by the Government of New South Wales, and has a portfolio of generating sites using thermal coal, wind, and hydroelectric power.

Eraring Energy is established pursuant to the State Owned Corporations Act, 1989 (NSW) and the Energy Services Corporation Act, 1995 (NSW).

Generation portfolio

Eraring Energy owns and operates the following power stations to generate electricity for sale under contract:

^1 - Progressively being upgraded to 4 x 720MW; commenced in 2011

^2 - Disconnected

Energy Reform Project

Subsequent to the NSW Government releasing its Energy Reform Transaction Strategy in September 2009, a Direction was issued to Eraring Energy on 14 December 2010 by the Special Minister of State, to the Board to enter into a GenTrader Transaction Implementation Deed.

On 27 February 2011, Eraring Energy entered into Generation Trading Agreements (GTA) with Origin Energy as part of the NSW Government’s energy reform process with changes to the business as follows:

• The output from Eraring Power Station and the Shoalhaven Scheme Power Stations are separately contracted with Origin Energy. These contracts are due to expire in 2032 (Eraring Power Station) and 2038 (Shoalhaven);
• Eraring Energy is no longer responsible for the future procurement of coal;
• Eraring Energy no longer receives market income for the GTA contracted stations; and
• Eraring Energy is no longer responsible for future costs involved with carbon liabilities.

On 25 February 2011 a Direction was issued by the Special Minister of State to transfer Eraring Energy’s shares in Rocky Point Holdings (responsible for the development of the Cobbora coal mine) to the Cobbora Holding Company Pty Limited, a separate NSW statutory corporation.

Under the agreements, Origin Energy has the right to trade the output of Eraring Power Station and Shoalhaven Scheme Power Stations and receive market revenue from these assets. In return, Eraring Energy receives a combination of fixed and variable monthly payments. In the event certain plant availability targets are not met, availability liquidated damages may be payable by Eraring Energy to Origin Energy.

Eraring Energy continues to operate the renewable assets of Hume Power Station, Burrinjuck Power Station, Brown Mountain Power Station, Keepit Power Station, Crookwell Wind Farm, and Blayney Wind Farm.

Asbestos liabilities

Eraring Energy manages the liability for asbestos related illnesses arising from exposure to asbestos at former Electricity Commission of New South Wales and Pacific Power sites. These sites include de-commissioned power stations such as Bunnerong, Ultimo, White Bay, Pyrmont and Wangi Wangi. These liabilities are managed by Eraring Energy on behalf of the NSW Government.

References

External links

• Eraring Energy