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Excluding the Cobbora contract, Eraring Power Station has a substantiallycontracted coal position until 2012, after which it gradually declines, withno fuel supply contracts currently extending beyond 2022 …22• Eraring Power Station has historically consumed between six and seven million tonnes ofcoal per annum• At completion Origin will purchase all stock of coal and fuel oil at the power station• Eraring Energy will retain its existing coal supply agreements but will on-sell the coal toOrigin• A large proportion of Eraring’s fuel requirements from 2015 are expected to be met bythe supply of coal under the Cobbora Coal Supply Agreement with the State of NSW• The remaining uncontracted coal requirements will be met through Origin-sourced fuelsupply arrangements• The quantity of coal consumed going forward will depend on how Origin chooses tooperate the power station• The operational flexibility of Eraring Power Station allows Origin to be guided by marketconditions when sourcing its fuel, enabling Origin to meet operational requirementswithout assuming onerous take or pay obligations• Eraring Power Station owns and operates its own flexible coal handling infrastructure,which has inbuilt redundancy and historically has experienced high availability• There are various take or pay obligations in the coal supply agreements which are in linewith historical capacity factors… providing Origin with the opportunity to source appropriatequantities of coal to meet its operational requirements for theEraring GenTrader arrangements
The Cobbora coal resource is expected to provide Eraring Power Station withan additional and substantial supply of competitively priced coal …• The NSW Government is retaining ownership of the Cobbora coal resource andwill progress its development to commence coal deliveries from 2015• The Cobbora contract contains a specified contract price and quantity, whichextends for the remaining term of the Eraring GenTrader Agreement• The contract, including price and commencement date, is subject torenegotiation under limited conditions around the mine development approvalprocess• Origin is responsible for procuring appropriate haulage of the coal to the powerstation. The Cobbora coal mine is located approximately 380 km from EraringPower Station, and coal will be transported to the power station by rail• Origin believes that track upgrades will be required to provide sufficient capacityfor the transport of coal to the power station• If development of the Cobbora coal mine is delayed, Origin may need to procureadditional coal to meet mid-term requirements… and is currently planned to commence deliveries in 201523
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 and 20: The Eraring GenTrader arrangements
Page 21: The payment structure for the GenTr
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

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