Origin Energy Not for Distribution or release in the United States of ...

More documents

Recommendations

Info

Under the GenTrader arrangements, Origin supplies the fuel, pays the agreedoperating and maintenance charges, and has the right to sell the electricityoutput …Origin’s Rights and ObligationsRIGHTS• Entitlements to the electricity outputof the power stations• Provide instructions to Eraring Energyfor dispatch of the power station• Assume existing electricity hedge bookOBLIGATIONS• Purchase and supply fuel for thepower station• Bear the cost of auxiliary powerrequirements• Assume the costs and benefits of allcarbon regulations• Bear the cost of capital improvementsand change events• Dispatch plant at or above min-genlevels• Maintain certain insurances for thebenefit of Eraring EnergyDelivery of plantoutput• Capacity Charges• Fixed Charges• Variable Charges• Pass Through CostsEraring’s Rights and ObligationsRIGHTS• Retain legal title to the power stations• Retain all employeesOBLIGATIONS• Operate and maintain the powerstation• Maintain connection of the powerstation to the transmission network• Receive deliveries of and handle,manage, store and burn coal• Supply and treat water for use at thepower stations• Manage spares for use at the powerstations• Bear the risk of variability in stay inbusiness capex and operating andmaintenance expenses20… while Eraring Energy will own, operate and maintain the powerstations
The payment structure for the GenTrader arrangements includes a number offixed and variable fees and charges payable by Origin to Eraring EnergyPayment Structure• Annual Capacity Charge- for the supply of the Total Contract Capacity to Origin over the life of the agreement- at completion Origin has agreed to place funds on security deposit for the term of theGenTrader arrangements to cover the annual capacity charge payment• Ongoing Payments- Fixed Charges: for operating and maintenance costs payable monthly. These charges arefixed for the life of the contract subject to index escalation- Variable Charges: costs per unit of energy produced to reflect the cost of consumablesincluding chemicals, lubricant and hydrogen and is payable monthly- Pass-Through Costs: including water, transmission connection charges, licence fees, landtaxes and auxiliary power purchasesOutages and Availability Liquidated Damages (ALDs)• The structure of the GenTrader arrangements is intended to incentivise Eraring Energy tomaintain availability by having ALDs which are payable (subject to certain conditions) byEraring Energy to Origin where availability is below specified annual targets• ALDs are higher in peak than off peak periods intending to maintain availability during keytimes, however are not linked to NEM spot prices21Power station outages are managed through a planned maintenanceschedule and Availability Liquidated Damages which incentiviseEraring Energy to maintain availability
Page 1 and 2: Sydney15 December 2010Origin Energy
Page 3 and 4: Outline1) Transaction Overview2) In
Page 5 and 6: Through the NSW Government’s Ener
Page 7 and 8: The Integral Energy and Country Ene
Page 9 and 10: 2) Integral Energy and Country Ener
Page 11 and 12: Integral Energy holds NSW’s secon
Page 13 and 14: IPART’s determination of regulate
Page 15 and 16: 3) Eraring GenTrader Arrangements
Page 17 and 18: Eraring Power Station has proven to
Page 19: The Eraring GenTrader arrangements
Page 23 and 24: The Cobbora coal resource is expect
Page 25 and 26: The National Electricity Market was
Page 27 and 28: The acquisition of the Integral Ene
Page 29 and 30: Due to allowances for plant age and
Page 31 and 32: MW18,00013,5009,0004,500-MW18,00031
Page 33 and 34: Origin has a higher proportion of g
Page 35 and 36: 5) Appendix
Page 37: Acquisition of Integral Energy Reta

Origin Energy Not for Distribution or release in the United States of ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?