key result - parliament of western australia€¦ · · 2014-07-28key result areas environmental...

KEY RESULTAREAS

2 Valuing our Environment

16 Listening to our Community

28 Caring for our People

LOOKING FORWARD

33 The Future

GLOSSARY

36 Glossary

Cleaner production is the wise useof materials, energy, water and othernatural resources in business.

Eco-efficiency is aimed at deliveringproducts and services that satisfyhuman needs while progressivelyreducing the environmental impactof those products and services overtheir life cycle.

Western Power 2002 Environmental/Social Review2

R I G O R O U S

R E S P O N S I B L E

S U S TA I N A B L E

Western Power 2002 Environmental/Social Review 3

power stations, depots, wind farms,communication sites, substations,decommissioned properties and morethan 92,000 kilometres of line and cable.

Through the systematic use of EMISWeb,we have focused on bringing licencecompliance and other environmentaldocumentation to a high standard.EMISWeb has also been continuallyenhanced to enable scheduling ofcompliance reporting, monitoring ofenvironmental management plan actionsand monthly system reporting.

Ensuring our people areable to meet the challenges ofenvironmental management

During the year, EMS Team Leadersattended environmental workshops thatprovided advice on improving the localimplementation of EMS and the useof EMISWeb.

An environmental awareness kit wasdeveloped to clarify environmentalmanagement responsibilities across thecompany. Information on the tools andprocesses that are available to assist thedischarge of management responsibilitieswas included in the kit along with anoverview of legal requirements andthe EMS.

Environmental workshops were conductedin November 2001 with the aim ofimproving and standardising environmentalperformance across the distribution andtransmission networks.

Attendees at the workshop were askedto consider the current work practicesundertaken by their group, any possibleimpacts that these practices may haveon the environment and how theseimpacts can be controlled, minimisedor planned for.

Collie Power Station was the firstWestern Power power station certified,with certification received in June 2001.Muja Power Station was certified in June2002 and the certification process iswell underway for Pinjar Gas TurbinePower Station.

EMISWeb

EMISWeb is the electronic documentationsystem employed by Western Power tomanage and record environmentalactivities and performance, legalcompliance and continual improvementinitiatives. The system is used in theprevention, control and abatement ofpollution and environmental harm and tosupport the protection and managementof the environment in which we operate.

Western Power manages more than280 sites through EMISWeb including

ENVIRONMENTALMANAGEMENT

Environmental GovernanceWestern Power’s EnvironmentalGovernance framework is based onWestern Power’s organisational structure,policies, practices and responsibilities.We are committed to rigorousenvironmental management throughcommunity consultation, proactive planning,compliance, sustainable developmentand auditing for continuous improvement.We have an Environmental Policy thatspecifies our environmental responsibilities.

EnvironmentalManagement SystemAn environmental management system(EMS) is a structured approach toidentifying and managing siteenvironmental issues and impacts witha commitment to continual improvementof environmental performance.

To ensure that Western Power’s EMS isoperating effectively the system is monitoredand maintained throughout the year.

Power stations certified toAS/NZS ISO 14001

Western Power’s power stations havebeen progressing towards certification oftheir environmental management systemsto AS/NZS ISO 14001.

VA L U I N G O U RE N V I R O N M E N T

WESTERN POWER RECOGNIZES THE VALUE OF THE

ENVIRONMENT TO THE COMMUNITY AND FUTURE

GENERATIONS. We will work towards sustainabledevelopment by the responsible production,distribution and use of energy.

K E Y R E S U LT A R E A S

ENVIRONMENTAL MONITORING

DATE ACTIVITY

October 2001 Internal environmental licence compliance follow up audit

November 2001 ESAA environmental code of practice audit

December 2001 Environmental Executive Committee meeting

April 2002 Internal EMS implementation audit

April 2002 Internal licence compliance close out audit

June 2002 External EMS audit

June 2002 Environmental Executive Committee meeting


K E Y P E R F O R M A N C E I N D I C AT O R S

ACTUAL TARGET ACTUAL ACTUAL

Environmental Excellence 100 80 -* -*

New renewable energy (GWh) 55.9 60.1 1.2 -*

Environmental ReputationInternal 72 80 -* -*

External 42 70 35 -*

* In an effort to improve the usefulness of these indicators,the measurements have recently changed limiting comparable results.

2001-2002 2000-2001 1999-2000

Western Power’s environmentalmanagement system underpins

a culture that deliversenvironmental excellence.


Environmental ComplianceWestern Power’s operational sites aresubject to a range of State and Federalenvironmental legislation. In addition somesites require State environmental licences.All performance obligations under theselicences are monitored and reported andcan be subject to Government agencyaudit or inspection. A summary oflicences held by Western Power facilitiesis provided above.

A comprehensive internal evaluation oflegal compliance and monitoring wasundertaken in April 2001. Correctiveactions were initiated to address issuesidentified in the evaluation and follow-upaudits were scheduled.

The results of the close-out audit showedthe majority of Western Power sites werein full compliance and had in placeprocesses to monitor, report and reviewlicence compliance. Operating areaswere working with regulatory authoritiesto resolve instances of non-compliance.

ENVIRONMENTALPERFORMANCE

TargetsOur customers expect us to achieveenvironmental excellence and lead thedevelopment of sustainable energyresources. Our environmentalperformance is tracked annually utilisinga number of performance indicators instrategic result areas (SRAs). Measuringperformance against targets is an integralelement of our continuous improvementprocess, it assists with the efficientallocation of resources and helpsidentify areas of weakness.

Environmental ExcellenceAn effective environmental managementsystem underpins a culture that deliversenvironmental excellence. The successfulimplementation of our EMS across alloperating areas aims to ensure company-wide diligence to comply with regulationsand continually improve managementpractices. We gauge our progresstowards environmental excellence byauditing the implementation of our EMSand conformance with relevant Codes ofPractice. The measurement of environmentalexcellence reflects the percentage of sitesthat have achieved more than 80%implementation of the EMS.

Identifying areas for improvement

An environmental audit is a “systematic,documented verification process forobjectively obtaining and evaluatingaudit evidence to determine whetherspecified environmental activities, events,conditions, management systems orinformation about these matters conformwith audit criteria and communicatingthe results of this process to the client”.(AS/NZS ISO 14010:1996,Guidelines for Environmental Auditing –General Principles).

Since 30 June 2001 Western Power hasconducted several environmental systemand compliance audits. Audit results andrecommendations are presented to ourBoard and Executive for review on aregular basis. Our people actively workto address audit recommendations.

Internal EMS Implementation Audit

Qualified internal auditors conductedan EMS implementation audit in April.The audit covered all of Western Power’soperational areas, checking the complianceof each site’s EMS documentation againsta set of ISO 14001 compliant criteriaincluding assignation of responsibilities,implementation of procedures andnon-conformance reporting.

The audit was conducted to determinethe percentage of sites that had achievedabove 80% implementation of the EMSand to identify areas for improvementprior to an independent external audit inJune 2002.

More than half the audited sites were ableto demonstrate over 80% implementationof the EMS.

WESTERN POWER ENVIRONMENTAL LICENCES

ENVIRONMENTAL LICENCE TOTAL

Department of Environmental Protection Operating Licence 13

Department of Environmental Protection Petrol & Oil TrapLicence or Registration 6

Department of Minerals & Energy Licence to Store Dangerous Goods 35

Water & Rivers Commission Groundwater Well Licence 7

Water & Rivers Commission Underground Water PollutionControl Area Permit 3

External EMS Implementation Audit

Our EMS was audited by an independent,registered environmental auditor in June2002. The audit covered all operationalareas, evaluating the structure andimplementation of the system and verifyingthe results of previous internal audits.

The purpose of the audit was to determineour progress in achieving best practice(more than 80%) implementation of ourenvironmental management system.Our target for 2002 was to have 80%of our sites achieve best practice.

The audit showed significant progresstowards environmental excellence withall sites exceeding the target by achieving90% implementation of our EMS.While there are no direct comparisonsto previous years due to changes in themeasures, an internal implementationaudit undertaken in April 2002 showedthat only 58% of sites met the 80% target.

An opportunity for improvement lies inthe development and local implementation

of environmental management programs.Environmental training and audit programsare being developed for 2002/03 tosupport this aspect of EMS and to assistin achieving 100% implementationacross all sites.

ESAA Code Audit - Western Powerabove the benchmark

Western Power is a signatory to theElectricity Supply Association of Australia’s(ESAA) Environmental Code of Practice,which promotes sustainable development,social responsibility and environmentaland resource management in theproduction and delivery of electricity.

Internal auditors completed the audit ofWestern Power’s application of the Codein November 2001. Our overall scorewas 3.9, based on a scale of 0 to 5.In general Western Power rated aboveaverage across all policies, exceedingthe average score for all ESAA membercompanies.

Environmental Reputation

Significant improvement inpublic perceptions

One of our key performance indicatorsrelates to our environmental reputation.We believe if we actively seek excellencethrough practical environmental care thiswill be reflected in the perceptions ofour customers and stakeholders.

Over the past six years, we have trackedcustomer perceptions of our environmentalperformance. To improve the accuracy andusefulness of our surveys, a new surveyformat was implemented in April 2001.This survey included a more detailedinvestigation of customer and stakeholderexpectations. The survey format wasrepeated this year, with data for the pasttwo years reported.

Overall, 31% of the sampled WesternAustralian residents believe ourperformance has improved during2001/02, with only 3% believing ourperformance has declined.

Last year’s survey identified awareness ofWestern Power’s environmental activities asa measurement that could be improved.This year, there was a 5% improvementfrom 27% to 32% among residents inbeing able to recall a Western Powerenvironmental activity or initiative. Thoughawareness is still low, NaturalPower andthe Albany Wind Farm are seen askey factors in this increase, with a risein awareness of Western Power’s windenergy activities of 10%.

Other survey results were:

• The use of coal and the level ofemissions from Western Power’soperations continued to be an issueof top concern among customers.Significant increases were notedin concern about our operationsin relation to EMF fields andrenewable energy

• 52% of Western Australians haveno concerns or cannot think of anywith regard to Western Power’senvironmental performance, and

• renewable energy and energyefficiency continued to be the mainareas of interest, with 68% of thosesurveyed preferring more informationon these issues.


CODE OF ENVIRONMENTAL PRACTICE AUDIT SCORES BY POLICY

OVERALL AVERAGE SCORE WESTERN POWER SCORE

Policy A - Sustainable Development 3.8 4.0

Policy B - Social Responsibility 3.6 4.0

Policy C - Environmental Management 3.5 3.7

Policy D - Resource Management 3.5 3.9

All policies 3.6 3.9

VARIATION OF SCORES FOR ENERGY BUSINESSESWITH OR WITHOUT ISO 14001 CERTIFICATION

MEAN SCORE

All businesses 3.6

Businesses with ISO 14001 3.8

Businesses without ISO 14001 3.4

Western Power 3.9

ENVIRONMENTAL REPUTATION

2001-2002 2000-2001

ACTUAL TARGET ACTUAL

Environmental management 42% 70% 35%

Renewable energy development 57% 70% 48%

Alternative energy research 78% 70% 68%


The SmartWays campaign, launched inJune 2002 to provide customers with usefultips and advice on how to save energy,purchase energy efficient appliances andultimately save money, should help toimprove the results of future surveys.

OPERATIONALENVIRONMENTALMANAGEMENT

Every Western Power site across WesternAustralia is unique when it comes toaddressing environmental concerns.Their location, purpose, complexity andeven the prevailing weather conditionscan all play a part in determining theirenvironmental management.

We recognise that practicalenvironmental care, through innovativeprograms and on-going management,will protect the right of future generationsto a sustainable and diverse naturalenvironment. In all areas of our operationfrom the management of our networksto the generation of power we are veryproud of the way we work with ourlocal communities and regulatoryauthorities to achieve the best results forthe environment and our communities.

Western Power is committedto reducing the impact ofatmospheric emissions on theenvironment by the responsibleuse of resourcesElectricity generation is a major sourceof atmospheric emissions. With theclosure of old plant, commissioning ofnew efficient generating plant andincreased development of renewableenergy resources, we are reducing ouratmospheric emissions.

The National Pollutant Inventory (NPI)is a national database designed toprovide the community with informationon types and amounts of specifiedpollutants emitted to the environment.Western Power submitted pollutantemissions information covering the 28facilities that were required to report for2000/01.

The following tables provide informationon the main atmospheric emissions fromour major power stations. These figureswere determined using NPI methodology.

SULFUR DIOXIDE EMISSIONS

Kgs EMITTED PER MWh OF ELECTRICITY SENT OUT 2001-2002 2000-2001 1999-2000 1998-1999

Collie 5.3 6.1 6.0 -

Muja 6.0 6.9 6.8 7.0

Kwinana 1.4 1.6 2.0 1.8

Pinjar Gas Turbine 0.0 0.0 0.0 0.0

Mungarra Gas Turbine 0.0 0.0 0.0 0.0

Regional power stations 1.3 1.3 1.4 1.5

NITROGEN OXIDES EMISSIONS


Collie 3.2 4.7 4.6 -

Muja 3.8 3.9 3.8 3.9

Kwinana 3.1 3.0 3.2 3.2

Pinjar Gas Turbine 2.1 2.9 2.9 2.8

Mungarra Gas Turbine 2.2 3.0 2.9 -

Regional power stations 15.9 15.0 15.7 13.7

PARTICULATE (COAL ONLY) EMISSIONS


Collie 0.2 0.2 0.2 -

Muja* 6.9 7.1 6.5 8.0

Kwinana 0.0 0.0 0.1 0.1

Pinjar Gas Turbine - - - -

Mungarra Gas Turbine - - - -

Regional power stations - - - -

*These emissions are principally due to Muja AB which was commissioned in the 1960s; plans are in placeto decommission these units in 2006.

Practical environmental care of Western Power sites throughinnovative programs and ongoing management will protect theright of future generations to a diverse natural environment.


Responsible water managementkeeps our rivers healthyWestern Power needs and uses a lot ofwater in its Muja and Collie PowerStations. We are a party to the CollieBasin Water Management Program andhave a licence issued by the Waters andRivers Commission to use water. Most ofthe water we use is ground water fromthe de-watering of Collie Basin MineFields though some comes from our borefields and the Harris River Dam.

In response to community concern aboutthe lowering of water levels in the CollieRiver, Western Power pumps about sixmillion litres of water into the river systemeach summer. The extra water meanspools on the south branch of the Collie

River that may run dry during the summermonths, remain full. This not only keepsthe river healthy, but means the localCollie community has access to theriver for recreational purposes when itmay otherwise be too dry for fishingor swimming.

Western Power continuesto investigate recyclingopportunities for fly ashWe have continued our support of astudy into the use of fly ash in agriculturalapplications by the University ofWestern Australia. The fly ash used inthe study is supplied from Kwinana PowerStation. A paper was released in late2001 on the findings of the study, withstrong indications that the use of fly ashin sandy soils may be a useful watermanagement option for turf culture.The addition of fly ash to sandy soilsassisted with the retention of water andprovided increased levels of phosphorousfor plants.

Curtin University has been investigatingthe use of fly ash as a stabilisingsubstitute in construction projects.The research began three years ago,utilising fly ash from Muja, Collieand Kwinana Power Stations and hasculminated with a trial of the cement-substitute process on the bus transitlane barriers on the Kwinana Freeway.The successful trial is now beingcommercialised.

Waste Minimisation on-lineIn an effort to help Western Powerpeople embrace the principles of wasteminimisation, information was providedon PowerNet (Western Power’s Intranet)in March 2002.

The waste minimisation page includes;

• Reasons to minimise waste

• contact details for WA recyclingcontractors and what they recycle

• information on Western Powerrecycling programs such as

- the Head Office Recycling Program - mobile phone and battery recycling - laser printer cartridge recycling, and

• guidance on buying environmentallyfriendly products.

Testing the outflow from the oil/water separator at Kwinana Power Station as part ofstandard environmental monitoring. Clean water from the separator is discharged ontodisused land that is being rehabilitated at the power station.


Powerline management andcommunity consultation

People and the environment comefirst when we build new powerlines

Western Power’s transmission anddistribution network is the most visibleaspect of the company across the State.With powerlines stretching over 90,000kmworking with local communities andgovernment agencies to ensure that thissystem is well managed and has aminimal impact on the natural and socialenvironment is of the highest importanceto Western Power.

Western Power constantly monitors thegrowth in demand for electricity acrossthe State and, with the help of computermodelling, makes long-term plans to ensurethat demand can be met.

Proposed Pinjar to Cataby transmissionline receives EPA approval

The proposed Pinjar to Cataby transmissionline was subject to a formal environmentalassessment in accordance with theEnvironmental Protection Act 1986.The Environmental Protection Authority(EPA) determined that the proposal wasto be assessed at the level of PublicEnvironmental Review (PER), the secondhighest level of assessment.

The PER examined specified environmentalfactors, indicating the potential impactsof the proposed transmission line andmanagement strategies to ensure that theactual effects of the proposal on peopleand the natural environment meet and in

some instances exceed the EPA objectives.The EPA has recommended conditionalapproval for the Pinjar-Cataby transmissionline. Conditions include the developmentand implementation of an approvedenvironmental management plan for boththe construction and maintenance phasesof the project.

Working to improve supply tothe Capel and Busselton areas

At present, two transmission lines supplyelectricity to the Capel and Busselton areasin the South West of WA. Our projectionsshow that these lines will reach the limitof their capacity by the summer of2003/04. Western Power plans to builda new 132kV line from Waterloo nearBunbury, to Busselton to provide sufficientcapacity for the region until at least theend of this decade.

Over the past 18 months, Western Powerhas consulted extensively with Governmentagencies, individual property owners,landcare groups and other stakeholdersin relation to this proposal. Through thisconsultation, many changes have beenmade to the proposed line route.Where possible we have chosen a lineroute which avoids any impact onfarming activities. Special managementtechniques will be used to minimise thepotential for damage to watercourses,wetlands and associated vegetation.Where the line passes through StateForest, it follows the perimeter of theforest where tracks already exist or wheresand mining already occurs to minimiseclearing in forest areas.

Fauna and Flora Management

Working to safeguard WesternAustralia’s unique environment

A key environmental objective is to protectthe natural and cultural environment in allour operations in a socially responsiblemanner. Designated EnvironmentallySensitive Areas (ESAs) identify operationalsites and surrounding areas which areenvironmentally or culturally significant andrequire special consideration and care.

Rare flora (Declared Rare Flora andPriority Flora 1-4) is the most commonenvironmental element protected by theESA system. Other environmental issuesinclude Threatened Ecological Communities,significant vegetation, noxious weeds anddieback protected areas.

Field trips to all ESAs near our transmissionand distribution lines were undertaken toreplace ESA signage, obtain currentinformation on the rare flora populationsand update work procedures for eachsite. A local Conservation and LandManagement Officer provided on-siteadvice for each field trip. This informationwas then entered into the ESA databasein EMISWeb to facilitate the futureresponsible management of these sites.

Biodiversity improvements continuearound Muja Power Station

Muja Power Station has continued itsprogram of rehabilitating disused gravelpits which have been unused since theconstruction of the power station.In 2001/02 a total of seven hectareswas revegetated.

We’re helping to protect Perth’s urban bush land

The Department of Conservation and Land Management and Western Powerjoined forces to save a threatened ecosystem in suburban Perth.

Our Forrestfield depot is surrounded by native woodland on heavy soil,with many marri trees and kingia (a grass tree).This ecosystem was oncecommon in Perth’s Hills region. However, due to extensive clearing, it hasbeen listed as a critically endangered threatened ecological community

To preserve this unique habitat, about 80 Victorian tea trees and EasternStates eucalyptus that were competing with the native plants were removed.

We believe if we have remnant bushland near our depots, we should doeverything we can to protect it.


Integrating environmental

considerations in line route planning

Enhancements are currently being

made to “Intramaps” software in order

to streamline the distribution line route

selection process. This software will

readily identify site specific environmental

factors that should be taken into

consideration during planning.

The enhanced “Intramaps” will have

suitable line route drawing tools,

centralised updating of information,

multiple layers of environmental and

infrastructure information and be able to

produce land use constraint reports for

each selected line route. Environmental

layers include environmental factors such

as conservation and environmental

protection policy, wetlands, threatened

ecological communities, declared rare

flora, native title claims and Aboriginal

and European heritage. Sources of

this digital data include the Heritage

Commission and the Departments

of Environmental Protection, Land

Administration, Minerals and Petroleum

Resources, Agriculture, and Conservation

and Land Management.

Site Stewardship

Demolition of Bunbury Power Station

Bunbury Power Station ceased operations

in September 1999. Tenders were

called and a contract awarded for

asbestos and plant removal in July 2000,

followed by a second contract for the

demolition and disposal of structures in

August 2001. This work was successfully

completed in May 2002.

Since decommissioning, a number of

potentially contaminated areas were

identified on site. A detailed site

investigation was undertaken and a

program of remediation implemented

to ensure all contaminated areas were

identified and remediated to standards

required by the Department of

Environmental Protection (DEP).

Western Power concluded negotiations

with the Bunbury Port Authority for the

sale of the property, with ownership

transferring in late June 2002.

Western Power is welladvanced in identifying andproviding for our futureenvironmental care responsibilities

A Contaminated Sites ScreeningAssessment was undertaken to determinewhich Western Power propertiesmay be required to report to the DEPunder the requirements of the pendingcontaminated sites legislation.

Detailed site investigations werecompleted for the Bunbury, SouthFremantle and East Perth Power Stations.The investigations included boreinstallations and soil and water samplingand analysis. We are working withthe DEP to establish remediationand validation plans for each site.

We have developed a Remediationand Validation Plan for the BelmontDepot and have received agreementfrom the DEP to go ahead with this plan.Remediation of the Redbank PowerStation was completed.

Environmental IncidentsWestern Power’s environmentalmanagement and emergency responseprocedures ensure that there is no long-term environmental damagefrom incidents.

Northern Terminal Oil Leak

In October 2001 less than 100litres of oil leaked from an oil circuitbreaker at Northern Terminal inMalaga. Most of the oil leaked onto a hard stand area. An immediateresponse and the timely removal andreplacement of the bitumen and soilin the affected area prevented anyenvironmental damage.

Geraldton Depot Oil Spill

In April 2002, four 200 litre lubricatingoil drums were damaged by thievesat the Geraldton Depot. Although theoil spill affected a significant area ofthe depot no environmental damageoccurred. Gravel and soil in the affectedarea was removed and the areadeclared clean after sampling andanalysis of remaining soil. The GeraldtonCity rubbish dump has accepted thecontaminated soil for disposal.


GREENHOUSE RESPONSE

Western Power continuesto constrain greenhousegas emissionsProduction and supply of electricity is amajor source of greenhouse gas emissions.In 2001/02 we continued our commitmentto greenhouse gas management in linewith our plans under the CommonwealthGovernment’s Greenhouse Challenge.Business activities in 2001/02 thatimproved our greenhouse gas emissionsperformance included:

• Commencement of construction of theCockburn 1 high efficiency combinedcycle gas turbine power station

• commissioning of the 22MW AlbanyWind Farm

• finalising environmental approvalsand design for the Integrated WoodProcessing Plant to be constructedat Narrogin, and

• planning for new electricity generatingfacilities with significantly lowergreenhouse gas impacts, includingreplacement of ageing generatorswith high efficiency combined cyclegas turbine plant and renewableenergy projects.

Total greenhouse gas emissions producedfrom Western Power’s operations in2001/02 were estimated to be10,894,000 CO2 equivalent tonnes.Adding to this the estimated emissionsassociated with the electricity purchasedby Western Power from others, andsubtracting CO2 estimated to besequestered through the company’s treeplanting programs, the net emissionsattributable to Western Power’s sales in2001/02 were 11,161,500 CO2

equivalent tonnes.

Since 1996, 42 actions identified inWestern Power’s original CooperativeAgreement have been completed orare ongoing in the following areas:

• Gas fired co-generation projectsdelivering high efficiency infuel utilisation

• development of renewableenergy projects

• purchase of electricity fromindependent co-generation andrenewable energy projects

• increased use of natural gas toreplace coal and liquid fuels inelectricity generation

• promotion and support of researchand development in sustainableenergy technologies

• initiatives with customers to promote

end-user energy efficiency

• tree planting, and

• promotion and support of education

on greenhouse and greenhouse

related issues.

The overall effect of abatement actionshas been a reduction in the carbonintensity of electricity sold byWestern Power in 2001/02 to 0.92kilograms CO2 equivalent tonnes perkilowatt hour – down from a value of1.05 in 1989/90. This translates toan avoidance of over 1.2 milliontonnes of CO2 emissions in 2001/02compared to what would have beenthe case if the electricity sold in theyear were produced at the sameemissions efficiency as in 1989/90.

We remain committed to continuedreduction of greenhouse gas emissionsassociated with the electricity we supply.We are in the advanced stages ofplanning for several renewable energyprojects and a step change in carbonintensity improvement will be achievedin 2003/04 when the Cockburncombined cycle gas turbine entersservice to replace ageing, less efficientgeneration plant.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

WESTERN POWER GREENHOUSE GAS EMISSIONS AND ELECTRICITY SALES PERFORMANCE

2000

0

700

800

900

1000

1100

1200

1300

600

4000

6000

8000

10000

12000

Year ending June

GW

h,kt

CO

2

Car

bon

Inte

nsity

(ton

nes C

O2e

/GW

h)

CO2 emitted

GWh sold

Carbon intensity

RENEWABLE ENERGY Western Power is a leader in thedevelopment of renewable energygeneration using wind and bio-energytechnologies.

Introduction of theRenewable Energy PolicyWe formalised our approach towardsrenewable energy planning andestablished the Western Power RenewableEnergy Policy in February 2002.

In the past 25 years Western Power hasexplored a wide range of renewableelectricity applications, largely driven bythe need to find sustainable alternativesto high-priced fossil-fuelled electricitygeneration in regional areas not connectedto main grids. Greenhouse responsehas now overtaken high fuel prices asa general driver for renewable energyapplications, but to have any significant

effect on greenhouse gas emissionsrequires their deployment on a main gridscale rather than the limited potential ofisolated regional systems.

The pressure for accelerated renewableenergy development comes from State andFederal Governments and the communityand consequently is incorporated intoWestern Power’s business drivers.The Renewable Energy Policy reflectsthese drivers.

Western PowerRenewable Energy PolicyWestern Power recognises the role ofrenewable energy in progressing tosustainability in electricity supply andconsiders this as part of business decisions.Western Power will:

• Establish, monitor and reviewrenewable energy targets

• maximise the performance and


contribution of Western Powerrenewable energy facilities

• maximise commercial opportunitiesto develop Western Powerrenewable energy projects to expandrenewable energy production

• source commercial quantitiesof renewable energy from viablelocal independent renewableenergy producers

• meet renewable energy legalobligations, codes of practice andindustry agreements both in letterand in spirit

• provide opportunities for customersto participate in renewable energydevelopments

• participate in targeted renewableenergy research and development, and

• support renewable energy educationand community awareness ofrenewable energy issues.

Government LegislationWestern Power has registered Renewable

Energy Certificates (RECs) in compliance

with the requirements of the RenewableEnergy (Electricity) Act 2000, and has

met 2001 RECs requirements. Three

Western Power power stations (the

Albany and Denham Wind Farms and

Wellington Hydro-electricity Plant) have

formal accreditation to produce RECs.

The bulk of Western Power’s RECs in

2001 were derived from the Albany

and Denham Wind Farms.

Another source of RECs was opened

in February 2002 with the launch

of a scheme for Western Power to

acquire the RECs that are created from

the installation of new solar hot water

systems. RECs from the wind farms

and the solar hot water scheme are

expected to meet Western Power’s

2002 requirements.

Wind Energy

Australia’s largest wind farmopened in Albany

The Albany Wind Farm, officially openedin October 2001, is a milestone in thehistory of Western Power and renewableenergy in Western Australia. The wind farmcan produce enough clean green electricityfor about 15,000 Albany homes – orabout 75% of the town’s total electricityrequirements - and reduces greenhousegas emissions by about 77,000 tonnes ayear. It is the biggest wind farm in Australiaand through our work, Albany can layclaim to the title of “green capital” of WA.

After 10 years of planning, the$43 million 22MW wind farm overlookingthe Southern Ocean, was opened officiallyby Minister for Energy Hon Eric Ripper.

Approximately 50% of the content ofthe Albany Wind Farm was Australiansourced. Only the turbine blades andgenerators came from overseas as thetype required cannot yet be manufacturedin Australia. Approximately $10 millionwas spent in the Albany area alone onlocal sub-contractors during theconstruction phase. With up to 400vehicle visits each day during the touristseason the wind farm looks to continueto contribute to the Albany economyas a significant tourist attraction.

With a capacity factor of about 41%,the wind farm gives an exceptionally highenergy return compared to the cost ofconstruction. Clean sustainable energysolutions are no longer just appreciated,they are expected and Western Powerwill continue its quest to expand onrenewable energy initiatives in Australia.It is important that we continue to discover,trial and implement innovative renewableenergy technologies to keep pace withworld trends and in some cases, like theAlbany Wind Farm, lead the country.

The success of the Albany Wind Farmproject was due, in no small part, to thelocal community’s adoption of the farmas one of Albany’s greatest man-madeattractions. A comprehensive consultationprogram ensured the local community waswell informed about the Albany Wind Farmand had an awareness of wind farmsaround Australia and the world.

The program identified practical methods toinform the community in the constructionphase of the wind farm and ensured astrong feeling of community “ownership”.Throughout the planning and constructionof the wind farm we were able to maintainan open, positive and productiverelationship with the local community.

Western Power is looking to windenergy as an answer for WA

Western Australia has few maturerenewable projects that will providesufficient RECs to meet Western Power’snear-term requirements. Wind can fillthe void.

With wind farms already in operationin Albany, Denham, Exmouth andEsperance, Western Power is looking atnew sites and new ways of facilitatingthe commissioning of further wind farms.

Mumbida Wind Farm

Mumbida Wind Farm is currentlyundergoing a feasibility study throughWindCo. WindCo is the 50:50Australia-wide wind farm developmentvehicle (not an operator) for Western Powerand ENERCON Power CorporationAustralia. ENERCON Power CorporationAustralia is the Australian subsidiarycompany of ENERCON GmbH fromGermany, the third largest wind turbinemanufacturer in the world. Western Powerhas developed a good working relationshipwith ENERCON after the companysupplied and installed the wind turbinesfor the Denham and Albany Wind Farmprojects. The Mumbida proposal isfor a 30MW installation consistingof 50, 600kW wind turbines situatedon a farming property approximately25km south-east of Geraldton. Extensivecommunity consultation has revealedwidespread support for the project.


Exmouth’s mini-wind farm

The Exmouth Advanced Mini-WindFarm was commissioned in June 2002.The wind farm is located near the tip ofthe North West Cape and consists ofthree, 20kW wind turbines. The projectwas jointly developed by Western Powerand Westwind with funding support fromthe Australian Greenhouse Office throughthe Renewable Energy CommercialisationProgram (RECP). Westwind is a localwind turbine manufacturer specialisingin the manufacture of small wind turbinesfor remote areas. The company suppliedand installed Western Power's first windfarm at Salmon Beach in Esperance.The turbines in Exmouth are engineeredto be lowered for their protection aheadof an approaching cyclone.

Using wind energy to supportdiesel systems

Opportunities for the integration of windenergy into diesel electricity grids arebeing pursued between Western Powerand Powercorp Pty Ltd. Powercorpassisted Western Power with theinnovative Denham wind/diesel projectwhich attracted funding under theAustralian Greenhouse Office RenewableEnergy Showcase Program.

The potential for the world-beating controland energy storage system technologybeing optimised in Denham is enormous.The Esperance Nine Mile Beach WindFarm, currently undergoing a feasibilitystudy, is one project where we hope touse some of these control systems.

Lord Howe Island in New South Walesis another possible application for thistechnology. Other sites in WesternAustralia such as Rottnest and Hopetounas well as up to 25 sites nationally couldalso benefit. We are currently developinga business model in an attempt to helpservice these areas.

Bio-Energy

Planning for the Integrated WoodProcessing Plant in Narrogin hasbeen completed

Site works for the Integrated WoodProcessing (IWP) demonstration plantcommenced in June 2002 after thecompletion of an extensive planningand approval process.

The Wheatbelt town of Narrogin is hometo this innovative project that addressesglobal warming and farmland salinity; twoof Australia’s most pressing environmentalconcerns. Western Power is building theIWP plant that will generate renewableelectricity and produce activated carbonand eucalyptus oil from locally plantedmallees. Producing three products atthe one plant will ensure commerciallycompetitive operation. The demonstrationplant will generate enough renewableenergy for 1,000 homes and providefarmers with a stable cash crop.

An extensive community communicationprogram was undertaken from the earlystages of the project, including meetingswith key stakeholders and residents anddisplays at local events.

Co-firing trials continue at MujaPower Station

The initial stage of the biomass co-firingtrial at Muja Power Station has beensuccessfully completed. This part of thetrial, limited to Stage A&B, was designedto determine the technical feasibility ofco-firing at Muja. Muja Power Station isnow continuing with the trial in Stage C&D.

Renewable Energy PromotionWestern Power is committed to thedevelopment and promotion of renewableenergy technology. Through the sponsorshipof research and the development ofrenewable energy-based products for ourcustomers, we are helping to drivedevelopment of the industry and createcustomer demand for new products.

Australian Cooperative Research Centrefor Renewable Energy (ACRE)

Western Power continued its membershipof ACRE, providing the Centre withfunding and some lecturing support.Wind turbine technology developed inthe ACRE program is now being appliedby Western Power in the 60kW windfarm at Exmouth.

Renewable Energy Engineering degreea first for Western Australia

The Western Power Chair of RenewableEnergy Engineering at Murdoch Universityis sponsored by Western Power, withfunding assistance from the AlternativeEnergy Development Board. 2002 was


a significant year for this initiative,with the launch of the degree course inRenewable Energy Engineering at theuniversity. In addition to funding,Western Power also provided staffassistance in the development of thecourse content.

With our help, university students arediscovering how they can meet theworld’s future energy needs. The degreeis unique in Australia and encouragesstudents to explore a wide range ofrenewable energy systems.

Providing ourcustomers with choice

NaturalPower

NaturalPower gives customers theopportunity to choose power that hasbeen generated with minimal impact onthe environment and to contribute to thedevelopment of renewable energy inWestern Australia. NaturalPower isavailable to all Western Power customerswho are connected to the South WestInterconnected System (SWIS).

Western Power currently has around45GWh of renewable energy beingsupplied to the SWIS. We are usingtechnologies such as hydro, wind,bio-energy and solar generation toproduce electricity with minimalgreenhouse gas emissions.

Currently there are more than 900NaturalPower customers who are workingwith Western Power to increase theuse of renewable energy resources.

We’re helping the City of Mandurahin the fight against Australia’s risinggreenhouse gas emissions.

While Mandurah’s population continuesto boom, the City is determined to protectits sparkling waterways, rare birdlifeand diverse flora – the very reasonswhy people are choosing to live there.

Mandurah’s population is expected toalmost double from 49,420 people to morethan 84,000 people by 2016. Despite thegrowing demand for services and facilities,the City has set itself the target to reduceMandurah’s greenhouse gas emissions by20% of 1998 levels by 2010. To helpachieve this target, the City has investedin NaturalPower, Western Power’srenewable energy product.

NaturalPower will supply 100% ofthe energy needs for the City’s newadministration building reducing the City’sgreenhouse gas emissions by 298 tonnesa year.

Use solar hot water systems for lowerenergy bills and a greener environment

Western Power introduced theRenewable Energy Certificates (RECs)Program to our residential market this year.New purchasers of solar hot water systemsmay be able to earn RECs under theRenewable Energy (Electricity) Act 2000.Through this Western Power program,customers may be eligible for a discounton the purchase price of their solar hotwater system in return for their RECs.The program is designed to encouragethe use of renewable energy in all itsforms and to help Western Power meetour renewable energy targets.

ENERGY MANAGEMENT

Generator EfficiencyStandards ProgramThe Generator Efficiency Standardsprogram is an Australian GreenhouseOffice initiative. The aim of the programis to reduce national greenhouse gasemissions by four million tonnes ofCO2 per annum through efficiencyimprovements in electricity generatingplant. The program targets all electricitygenerators in Australia.

The idea behind the program is to haveall electricity producing plant in Australiaperforming at best practice standards forthe type, age and duty cycle of the plant.Efficiency improvements made on plantwill lead to CO2 abatement.

Electricity producers are required tofollow strict technical guidelines indetermining whether their generators areoperating at best practice and to developaction plans to achieve and maintainbest practice performance.

Western Power is developing a Deed ofAgreement with the Australian GreenhouseOffice to participate in the program.

Working with our customersto be more energy smartWestern Power launched the SmartWaysCampaign in June 2002.

The thrust behind the campaign is toprovide credible, information to ourcustomers to help them manage theirenergy costs in and around their homes.

The campaign is built around a series of television commercials providingrealistic tips that will help people reducetheir electricity use and, by default,limit their personal contribution togreenhouse emissions.


The talented youth of today willbecome the brilliant minds oftomorrow. Western Power iscommitted to helping youngpeople develop their talents andrealise their dreams.


I N V O LV E D

S U P P O R T I V E

P R O D U C T I V E


Western Power has a proud history ofcontributing to the lives of the people wholive in the communities in which we work.At Western Power, we don’t see ourcommunities just as customers, we believethey are our partners in building a betterlife for all Western Australians to enjoy.

We measure the success of ourcommunity and environmental programsagainst our performance in Corporateand Environmental Reputation Studies andthrough our own people’s assessment ofour performance. The success of our mediaand communications strategy – the waywe go about communicating with ourcommunities – is measured in terms ofa balanced media report.

We are an active and enthusiasticmember of communities the length andbreadth of Western Australia.

EDUCATIONWe believe the talented youth of todaywill become the brilliant minds of tomorrowwho lead our State into a prosperousfuture. Western Power is committed tohelping young people develop theirtalents and realise their dreams.

World of Energy provideshands-on learning fun forschool childrenOur diverse educational support programsstart with the very young. Western Power’sWorld of Energy education centre, basedin Fremantle, is widely regarded as WA’spremier facility for teaching school-agedchildren about the energy industry in WA,how energy is harnessed and showsthem better, more sustainable ways ofusing energy in their homes and schools.

The centre has a strong focus on promotingawareness and understanding of avariety of energy and environmental issues.

Students are given the opportunity to learnthrough hands-on programs that are linkedto their school curriculum. Many schoolsfind excursions to the World of Energy area fun way of giving practical meaning totheories learnt in the classroom.

Special events like the annual “SolarCook-off” give students an opportunity touse their knowledge of renewable energysources, like solar power, in a practical,enjoyable and importantly, ediblescience experiment.

This year, more than 16,000 students andteachers have enjoyed the sights and soundsof Western Power’s World of Energy.Western Power is proud of the investmentwe have made in our children’s future andin the multi-media, educational facility thecompany has built at the World of Energy.

Western Power helping to makejunior weather forecastersTeachers in classrooms all over the Stateare teaching children about weatherwith the use of multimedia teaching-aidsprovided by Western Power. The WeatherWatch CD-ROM, an initiative ofWestern Power and Channel Nine, isavailable to every school in WA.

The Weather Watch CD-ROM takesstudents on an educational tour of howweather patterns are created, whatmakes rain and how clouds and strongwinds form. The CD-ROM explains howweather forecasts are made from satellitemaps and other information.

The program provides teachers with aneducational aid that will capture theimagination of their students and bringto life the study of the weather andthe environment.

L I S T E N I N G T OO U R C O M M U N I T Y

WESTERN POWER’S COMMITMENT TO THE WESTERN AUSTRALIAN

ECONOMY CAN BE MEASURED IN DOLLAR TERMS – BUT OUR

COMMITMENT TO THE SOCIAL FABRIC OF OUR STATE ismeasured in terms of our contribution to theendeavours of Western Australians in fields suchas the arts, education, the environment and


Primary school students learn aboutsolar power in the practical, enjoyableand edible, Solar Cook-off.


Kids’ Club attracts morethan 5,000 members

“Learning about energy and theenvironment is fun”, a statementmore than 5,000 four to 12-year-oldWestern Australians can make sincebecoming members of our PowerKids’ Club. The Kids’ Club wasformed to teach young WesternAustralians about electricity, naturalresources and the environment in afun and supportive atmosphere.This year, more than 130 membersof the Kids’ Club helped to plantmore than 500 native trees and shrubson an unused and degraded piece ofland at the Kwinana Power Station.The Biodiversity Day was just oneof the many activities hosted by theclub throughout the year.



Corporate Image Index 68.8 66 71.2 64

Stakeholder Opinion Index 64.3 70 62.2 67

Balanced Media Report 81 71 82 75

Public Environmental Acceptance ratingInternal 73 80 - -External 42 70 35 -

2001-2002 2000-2001 1999-2000


10th annual Solar Model CarChallenge an outstanding successSolar cooking is not the only wayWestern Power is giving students anopportunity to harness Western Australia’smost plentiful renewable energy source– this year saw the running of the tenthannual Western Power Solar ModelCar Challenge.

The major theme behind the Challengeis teaching secondary students thepossibilities available to them in the useof solar power. The Challenge is afantastic opportunity for the engineersand scientists of tomorrow to get anunderstanding of the enormous potentialin the field of renewable energy,particularly solar power.

This year, students from more than50 WA secondary schools and colleges,some from as far away as Karratha andJerramungup competed for the right torepresent Western Australia at theAustralian/International Model SolarCar Challenge held in Adelaide.

Hampton Senior High School won theWestern Power sponsored competition in

a hard fought final against traditionalrivals Christ Church Grammar School.Western Power took students andteachers from both schools to theAustralian/International Challenge inAdelaide where the outcomewas reversed – Christ Church Grammarwon the International title while HamptonSHS followed them in second place.Western Australian secondary schoolshave won eight of the last tenAustralian/International Challengesagainst schools from across Australiaand as far away as Argentina, Canadaand Vietnam.

Shockproof puts child safety firstChildren throughout WA are learningto be safe with electricity through ourShockproof School Electrical SafetyProgram. Western Power presentersdiscussed electrical safety with more than20,000 school children from Perth andmany regional centres during the year.Shockproof has received positivefeedback from teachers and principalswho say the program works well withtheir schools’ health and safety classes.

Western Power’s Solar ModelCar Challenge gives secondary

school students a chance tolearn more about the fantasticopportunities available in the

field of renewable energy.


SCHOLARSHIPSAND AWARDSYoung people are encouraged tomake their dreams a reality through ourcomprehensive scholarship andawards programs.

Supporting our YoungAustralians of the yearWestern Power is the proud sponsorof the WA Young Australian of the Yearfor Science and Technology. This year,talented young scientist Emma Croagerwas recognised for her groundbreakingresearch into Hodgkin’s Lymphoma, aliver cancer that mainly affects childrenand a relatively unexplored medical field.Emma began her PhD thesis in 1996and after completing her PhD at theage of 25, Emma hopes her continuedresearch will one day find a cure forthe disease.

Western Power scholarshipshelp with further educationand trainingSenior students in regional WA are alsosupported by Western Power. Each yearsince 1996 we have helped a youngcountry student with the costs of studyingat a Perth university. This year, Esperancestudent Kate Layman was presentedwith our Stuart Morgan Scholarship.The scholarship will help Kate to continuestudying law and commerce at theUniversity of Western Australia. Kate isdetermined to use her Western PowerScholarship to reach her full potential.Successful scholars like Kate willreceive financial assistance for up tofive years while they complete theirundergraduate degree.

Since 1989, our Muja Power Station inCollie has been awarding a scholarshipto a secondary school student from thelocal area.

Previous Stuart Morgan ScholarSarah Mummé with this years’

winner Kate Layman.


THE ENVIRONMENTWhether it is in the cool climes of WA’sSouth West, the sultry tropics of the farNorth or the long dusty stretches of theinterior, one of our top priorities is to protectthe environment in which we operate.

Our commitment to the environment goesbeyond a dedication to making surethe impacts of our work do not leave apermanent mark. It extends to assistingwith the rehabilitation of degradedfarmland, to restoring areas of remnantvegetation in our cities and to striving tofind ways of increasing our reliance onenergy generated from clean, greenrenewable sources.

Community consultation is an integral partof any successful project. We believe wehave a responsibility, not only to treadsoftly on our environment, but also to betotally transparent in all our actions andoperational decisions. By maintainingopen two-way communication with ourstakeholders and the communities in whichwe operate, we have been fortunate toreceive our stakeholders’ permission towork with them and for them in thecommunities in which they live.

Kids’ Club kicks-offenvironmental discovery areaat Kwinana Power StationIt isn’t too hard to pick the odd one out;frogs, birds, native plants, power station– but a band of pint-sized environmentalactivists brought the whole lot together tocreate an environmental discovery areaat our Kwinana Power Station.

As part of activities for Biodiversity Month,Western Power Kids’ Club members agedbetween four and 12, planted 500 nativeseedlings to create the first stage of anative garden habitat at the KwinanaPower Station.

About 200 children and parents createdthe basis for the demonstration garden,forming a mini-habitat for native fauna andproviding an excellent example of whatpeople can do in their own gardens tolook after their local environment.

The planting is the first stage of a five-yearprogram we are undertaking to transform avacant piece of land at the power stationsite into an oasis for local plants, animals,insects and birds.

We engaged the services of anenvironmental consultant to design agarden that includes plants native to theKwinana coastal area, mini-habitats forfauna (including lizards, insects, frogsand birds) such as a frog pond, birdnesting areas and seating for visitors.

The garden will also incorporaterecycling features such as using wasteproducts from the power stationincluding fly ash, bio-remediation forwaste oil, worm farms and compostingfor food scraps.

Western Power was themajor sponsor of the StateLandcare Awards 2001 The Landcare Awards are one of thehighlights of the Western Australianenvironmental calendar. Held bienniallysince 1989, the awards provide anopportunity for the State’s natural resourcemanagement community to pay tributeto the individuals, landcare groups,schools and other organisations thathave shown outstanding commitmentto landcare over the past two years.

As a founding member of the WALandcare Trust, Western Power was offeredthe opportunity to be the inaugural majorsponsor for the State Landcare Awardsin 2001. Having been a previous StateLandcare Award winner and holding theAwards in high regard, we decided tosponsor the Awards. This support meantthat for the first time, national categorywinners received a cash prize withtheir award. The award itself was alsoimproved to recognise the efforts of thewinners with individualised awardscreated for each category.

The 2001 Awards had the highestnumber of entries to date, with 53national award entrants and 21 Stateaward entrants.

Since 1993, we have awarded theBruce Kirkwood Memorial Scholarshipto an electrical engineering student whoachieves excellence in an electricalpower engineering course at a Perthuniversity. The scholarship honours thedistinguished engineer and leader, thelate JB (Bruce) Kirkwood, Commissioner ofthe State Energy Commission from 1975to 1987. This year the prize was awardedto mature age engineering student WaynePethick. Western Power is pleased toassist students like Wayne to graduate aselectrical power engineers and help thecommunity through their work, just asBruce Kirkwood had.

Scholarship awarded to helpchildren broaden their horizonsWe encourage the children ofWestern Power people to discover andexperience peoples and culture from allover the world through our AFSScholarship Program. This year, AntheaBrescinini, daughter of Western PowerNetworks Issues Coordinator Lucy Bourne,left her home in Perth to discover anotherlife in the Netherlands. Anthea will spenda year in the Netherlands, going to schooland experiencing first hand a culture verydifferent from the one she left in Perth.

Anthea Brescinini

Wayne Pethick

Hotham - WilliamsWestern Power GreeningChallenge helping to savethe environmentThe Western Power Hotham-WilliamsGreening Challenge is Australia’s mostsuccessful community-based tree plantingprogram, with more than 3.25 milliontrees planted in the past six years.

By the end of the project in August2002, volunteers will have planted fourmillion native trees and shrubs on


degraded farmland in the Hotham-Williams Catchment.

The Challenge has achieved a numberof outstanding results.

Over 80 different types of native treesand shrubs have been planted. More than85% have survived.

Following on from the mix of native plants,are birds and animals that haven’t beenseen for generations.

However, the most outstanding aspect ofthe Challenge is the rewarding partnershipsestablished between country, city,community and business.

Since the Challenge began in 1996Challenge volunteers have won the 1996John Tonkin Greening Award, the 1997National Banksia Award, the 1998 and1999 National Landcare Awards and in1999 the big one - the Prime Minister’sAward for Community Partnerships.

The Greening Challenge is of nationalsignificance and a role model thatcould be followed around the country.The program shows large organisations,landcare groups, agriculture groups,government agencies and the communitycan work together to do somethingsubstantial for the environment.

The success of the Hotham - WilliamsWestern Power Greening Challengecould be the catalyst needed for similarprograms to begin in other degradedareas of Australia.

National spokesman for LandcareAustralia, singer/songwriter JamesBlundell was in WA in August 2001 tocelebrate six years of the award winningHotham - Williams Western PowerGreening Challenge.

Mr Blundell, who grew up on a farm inStanthorpe in south-east Queensland saidAustralia could reverse its situation andrepair the damage caused by humankind.



COMMUNITY ASSISTANCEAs a large integrated utility, Western Powerhas the ability to have an enormouspositive influence on a wide range ofcommunity activities.

Our assistance helpsthe underprivileged tostay connectedThis year, we continued the successfulWestern Power Assist Scheme. Weunderstand that sometimes, through nofault of their own, some people will findit difficult to find the money to pay theirelectricity account. We have provided anemergency relief fund, administered bythe Western Australian Council of SocialServices, which can be accessed bycharitable organisations and relief agenciesto help fund people facing disconnectionof their electricity supply. This is theseventh consecutive year that we havebeen able to support the scheme.

Up to five different rebates are availableto eligible customers such as pensioners,veterans, senior citizens, people with aDepartment of Social Security-issued healthcare card and air-conditioning rebatesfor seniors in the North West of the State.Western Power manages these rebateswhich were worth almost $31 million inthis financial year and were granted tomore than 318,000 customers.

Safe staff donate funds forvolunteer ambulance officersWestern Power’s over-riding principle issafety. After working safely for two yearswithout a single lost time injury, ourPilbara Branch decided it was time fora celebration. Pilbara Branch ManagerZiggy Wilk gave $1000 to staff in boththe Karratha and Port Hedland Depotsand told them they could spend it as theywished. Both groups donated the entire$1000 cheque to the St John Ambulancesub-centre in their town. The donationsfollowed similar donations last year for12-months injury free. The donations,celebrating a year free of injury wasespecially appropriate in 2001, theInternational Year of the Volunteer,because the Karratha sub-centre isrun wholly by volunteers.

Safety Watchit Van providesinvaluable community serviceWestern Power's Safety Watchit Van isa free community service, designed topromote safety and to provide a freesafety check for most electrical appliances.The van visits shopping centres in themetropolitan area and major countrytowns throughout the State. The van alsovisits retirement villages in the metropolitanarea taking its valuable service to a groupof customers who are often unable to cometo the van. This service includes safetytesting of portable electrical appliances likeelectric blankets, kettles, irons, toasters,lights, fry pans, sandwich makers, vacuums,drills and extension cords. The van’soperators provide labour for repairs to theelectric cords and plugs of hundreds ofappliances and referral to an appropriateelectrical appliance repairer if an itemcan’t be fixed at the van.

Head Office Staff go casual fora charitable causeEvery month, staff in Western Power’sHead Office building in Perth swap theirties for t-shirts and their business suits fortheir weekend casuals all in the name ofcharity. Casual dress days are held onthe last Friday of every month and moneycollected from Western Power peopleduring a three-month period is donatedto various charities. This year we’vehad the privilege of being able to assist,the Cleft Palate and Lip Society, theAssociation for the Advancement ofBrain Injured Children, Camp Qualityand the Independent Living Centre withtheir valuable community work.

We light up Christmas acrossWestern AustraliaWith operations across the State,Western Power has an enviablerelationship with communities from all overWA. In 2001, we took our ever-popularChristmas Lights Competition to 28 ruraland regional centres all over WA. Similarcompetitions to find the homes andbusinesses with the brightest display ofChristmas cheer have been sponsored byWestern Power in Perth and the Pilbarafor a number of years.

Local shires and community groups helpedus to coordinate the competition and tobring the competition to their localcommunities. Shires also coordinated thejudging of winners. The competition wasa great success and managed to bringa smile to many people throughout theregional towns.

Our Christmas Lights competition builds community spirit right across the State.


The Western Power Parkland –a project for the people of PerthThis year work began on one of ourlargest projects designed specially forthe people of Western Australia. For 36years the Arthur Fairall Playground andthe Lakeside Picnic Area have been twoof the most popular of Kings Park’splaygrounds and picnic areas – butnow the areas are in need of a facelift.A multi-million dollar Western Powersponsorship will produce an inspiringenvironmental and community areaensuring the playground remains one ofPerth’s most popular venues.

The Western Power Parkland is a trulyunique initiative, one that builds on theproactive and innovative approachWestern Power takes in all of ourenvironmental initiatives. The key elementof the redevelopment is a respect for thenatural beauty of the area and througha close partnership with the Kings Parkand Botanic Gardens Board we havegone to great lengths to ensure that theWestern Power Parkland will complementits surroundings.

Existing trees and plant life will not bedisturbed and careful thought has beengiven to the choice of building materials,including reclaimed timber and nativeplants. The two most obvious existingfeatures of the area, the wooden

playground and the island in the middleof the lake, will remain the centralelements of the park, the theme of whichwill become “Energy and Biodiversity”.The Western Power Parkland willincorporate new playgrounds and waterplay areas, environmental learningopportunities and renewable energyfacilities like solar lighting.

Staying true to the original vision forthe playground, it will offer children ofa technological age a chance to learnand play in a natural environment.

The Arthur Fairall Playground has been one of Perth’s favourite family attractions.Thanks to a Western Power sponsorship theplayground is set to receive a facelift. Some of the favourite elements of the playground will remain as will the opportunity forchildren of a technological age to play in a natural environment.


THE ARTSWestern Power has a strong history ofhelping Western Australia’s arts communityto flourish.

We are proud supporters of theWest Australian SymphonyThere is no doubt that our associationwith the West Australian Symphonyis our flagship arts and culture program.Western Power has been a proudsupporter of the West Australian Symphonyfor almost a decade, most recently as theprincipal sponsor of “Symphony Underthe Stars” concerts. “Symphony Under theStars” is a firmly established event withinPerth’s cultural events calendar – a testamentto the tremendous musical talent in theWest Australian Symphony – one of theState’s premier arts companies.

Supporting the world’smost isolated art awardsWestern Power proudly supported theCossack Art Awards, which offer regionalartists the opportunity to view the work ofother Australian artists and the opportunity

to present their work in a forum for theenjoyment and cultural enrichment of thelocal community. Open to artists Australia-wide, the Cossack Art Awards beganin 1993. The most isolated art exhibitionin the world, the awards attracted over3000 visitors during the two-weekpublic viewing period. Pilbara artistKylie McLennan won the Western Powersponsored award category of Painting,Any Medium, Any Theme (18-25yrs).

We took Operato the bush in 2001OzOpera is the development arm ofOpera Australia and works to bring operato spaces and places very different tonormal venues and for audiences in regionsfar removed from Australia’s capital cities.Major operatic productions such asRigoletto are being specifically devisedand designed for touring and to bepresented in non-theatrical spaces suchas warehouses, woolsheds, gymnasiumsand town halls.

With our help, OzOpera’s production ofVerdi’s Rigoletto appeared at the “JohnHolland Opera House” (John Holland’sIndustrial Shed) in the Karratha IndustrialEstate, for a one-night-only formal eventfeaturing a cast and crew of 32 and a12-piece orchestra. The productionprovided an outstanding opportunity forus to support a unique cultural experiencefor the local community. Western Powerrecognises the diverse nature of regionalcommunities throughout Western Australiaand is pleased to support communityevents that reflect this diversity.

For many regional people who attendedthe event, it was their first experience inseeing opera performed live.

Western Power supported a number ofcommunity and arts activities including the:

• The Handzon Theatre Company’s“Lunchtime Theatre” in Perth

• the Pilbara Festival of Lights inKarratha and Port Hedland

• the Kings Park Lights

• the Bunbury Regional EntertainmentCentre, and

• the Christmas Lights Competition inconjunction with The West Australianand Channel 7.

Western Power’s sponsorship of the West Australian Symphony is our flagshiparts and culture program.We have been a proud sponsor for almost 10 years.

SPORTSWe are proud to be involved with many ofWestern Australia’s enormously talentedsports people. Perhaps the most significantof our sporting partnerships is our role asthe principal sponsor of our State cricketteam, the Western Warriors but ofparticular pleasure is our involvement withjunior sports people from all over the State.

Warriors rechargepowerful sponsorshipIn May 2002 we renewed our sponsorshipof 15-time national cricket champions, theWestern Warriors and Australia’s largestregional junior cricket program with theWA Cricket Association (WACA).

One partnership with the WACA hasspanned more than four years andbrings together two successful, highprofile WA-based organisations capableof delivering world class performance.

The sponsorship gives Western Poweraccess to the Western Warriors teamand naming rights to the regional juniorcricket program which benefits tens ofthousands of children across regional WA.The sponsorship also ensures a WAcompany continues to support one ofthe State’s leading ambassadors.

We are the major supportersof Regional Junior CricketThe summer of 2001/02 saw thecontinuation of the hugely successfulWestern Power Regional Junior CricketProgram - the fifth year of Western Power-sponsored coaching clinics in townscovering the Great Southern, Mid West,South West, Central Districts, Wheatbeltand the Goldfields.

We help to foster regional cricketassociations with the high-leveldevelopment of junior cricketers andcoaches essential to keep cricket aliveand flourishing in regional areas.

We believe if you keep cricket healthyin the bush, it’s healthy in the towns andit’s healthy at the WACA. We are veryproud to partner the WA CricketAssociation in giving children in countryareas access to coaching at a levelequal to their city counterparts.

Western Power is a proud supporter ofregional junior sport.

We have also supported the followingsports associations and events:

• The Western Power GoldfieldsFootball League

• the Eastern Goldfields Cricket Association

• the Chas Egan Memorial Bike Racefrom Menzies to Kalgoorlie

• the North West Games in Karratha, and

• the 2002 Blackrock Stakes inPort Hedland.

OUR COMMITMENTTO OUR COMMUNITYWestern Power continues to support everysector of our community from regionaljunior sports people to industry groupsand we actively seek applications forsponsorship from individuals andcommunity groups from all over WesternAustralia every year.

In selecting community partnershipprograms, Western Power looks to providea balanced suite of programs across theState in the areas of arts and culture, sports,environment and community/education.

As one of Western Australia’s largest andmost active companies, we are privilegedto be able to work with the communitiesin which we operate to help improve thelives of all Western Australians.

Western Power Netball TalentIdentification Clinics find thestars of tomorrowOur Netball Talent Identification Programputs groups of netballers from across theState through their paces in an attempt todiscover the stars of the future.

In its seventh year, the Western Power-sponsored program has helped uncoversome of today’s stars and some oftomorrow’s champions.

Already seven athletes who have takenpart in the talent identification clinics haverepresented Western Australia. A number,including Mt Barker’s Kirby Bentley havealso been accepted into the WesternAustralian Institute of Sport’s Power Program.

Through the program Netball WA hasbeen able to monitor the development ofnetball in Western Australia and to fosterthe development of future champions.


The measure of the success ofour safety and health programsis simple – a reduction in thenumber of accidents and injuriessuffered by our people. Our peopleare too important for us to losesight of safety and health issuesright across the company.

I N F L U E N C E

A C H I E V E

E M P O W E R

SAFETY – A WAY OF LIFESafety is our overriding value and thecompany has placed significant focus onimproving safety performance following theestablishment of Western Power. Since1995, the company’s Lost Time InjuryFrequency Rate has improved from 11.5to 6.2. While this result remains abovethe target of 5.0, it represents asignificant improvement.

Executive Sub-Committeeon Occupational Safety andHealth formed in 2002An Executive Sub-Committee onOccupational Safety and Health (OSH)was formed in February 2002 to reviewexisting strategic OSH policies andinitiatives, to lead the development of newpolicies and initiatives for our companyand to champion their implementation.

The Executive Sub-Committee initiateda Safety Strategy Review, which involveda cross-boundary team in a series ofworkshops to design a high-level safetystrategy and to identify resources and skillsrequired for implementation of the strategy.

The Sub-Committee will consider a numberof initiatives over the coming year including:

• A review of the effectiveness of theSafety and Health Audit System

• the use of a behaviour-based safetyprogram, and

• initiatives to enhance safety awarenessand the sharing of safety knowledgethroughout the company.

New OSH ManagementSystem launchedA new Western Power Safety and HealthPolicy and Management System waslaunched in April 2002. Key features ofthe system include a new framework forbusiness units to develop their own safetymanagement plans, a safety and healthweb page and a revised safety andhealth manual.

We believe sound planning is critical toachieving consistently high standards ofsafety and health management. The Safetyand Health Plan is the primary means forWestern Power people within any workunit to define and meet their own safety



C A R I N G F O R O U R P E O P L E

ONE OF WESTERN POWER’S GREATEST STRENGTHS IS ITS

PEOPLE. WE WILL CONTINUE TO INVEST IN OUR PEOPLE, GIVING

ALL EMPLOYEES ACCESS TO TRAINING IN LEADERSHIP AND

WORK SKILLS OVER THE COMING YEAR. Our goal is toencourage an environment where Western Powerpeople contribute to the running of the businessin a rewarding and challenging environment.Complementing this, we will continue to driveprograms to improve the quality of working life

improvement objectives. All work units,no matter how small, will soon have aSafety and Health Plan.

While there has been no discernibledecrease in the number of medicaltreatment cases, there has been a slightdecrease in the severity of injuries asreflected by the reduction of the LostTime Injury Frequency Rate.

Improved results in the Western PowerSafety and Health Audit Program (ratingsup 5% on average) are serving tostrengthen our commitment to achieve aworking environment free of accidentsand injury - where safety is a way of life.




Lost Time Injury Frequency Rate 6.2 <5.0 8.0 8.2

Safety Audits – Operational Business UnitsOverall audit average (%) 75.0 78.0 72.0 -Audit compliance (%) 100.0 100.0 100.0 -

Safety Audits – Non Operational Business UnitsOverall audit average (%) 60.0 75.0 70.0 -Audit compliance (%) 100.0 75.0 100.0 -

Organisational Culture 4.7 5.0 4.7 4.7

2001-2002 2000-2001 1999-2000


Workplace StressProgram caring for staffWestern Power cares for the wellbeing ofour people and acknowledges that thecurrent uncertainty of the electricity industryin WA can have an unsettling effect.

Stress is a natural reaction to any change,sudden threat or long term frustration.Our reactions are involuntary and involveboth psychological and physical responses.We all react differently to stress.

A training and education program has beendeveloped to address a growing need foremployees to become better educated andto develop a broader range of copingmechanisms for dealing with stress.

Also, workplace intervention involvingprofiling groups of employees usingthe Occupation Stress Inventory(Osipow, 1998), gives Western Powerleaders strategies to manage workplacepressures so that people vulnerable tostress-related problems are able tomanage stress in a healthy way.

Ergonomic Workstation Programis promoting healthy habitsWorkstations are now the workingenvironment of many Western Powerpeople. Managing these environmentsrequires an understanding of officeergonomics and a knowledge of whatbehaviours are required to promote healthyhabits and prevent sprain or strain injuries.The sudden shift to computer-based workactivities some 15 years ago resultedin a spiralling of the overuse syndromewhich through increased knowledgeand work practices can now be a“thing of the past”.

A training and education session providesemployees with the knowledge to correctlymaintain an ergonomically safe workstation.Strategies are implemented so employeescan engage in preventative behaviour andreduce the likelihood of musculoskeletalinjuries. Also, a handbook containinginformation on a range of relevant topicssuch as back and neck anatomy, posture,stretching and reducing muscle tensionis available in a user-friendly package.With this program employees are ableto manage their working environmentssafely with appropriate risk reduction forany associated injuries.

Caring for Western Power peopleWestern Power’s Wellness Programaddresses the complementary goals ofimproving quality of working life andimproving business performance, byproviding assessments of health risks toreduce illness and injury. The specificprogram objectives are to:

• Promote self responsibility forpersonal health

• measure current levels of fitness andsources of stress

• provide health and fitness screening

• educate on health lifestyle factors, and

• provide personal health care plansto assist participants to achieve ahealthy lifestyle.

To ensure Western Power’s continuedgrowth and success we need to attractthe best people but more importantly,we must retain them by creating asupportive environment in which everyonecan contribute, work to their fullestpotential and find work a satisfying,enjoyable experience.

Managerial Leadership Initiativeshaping our corporate culture

Significant advances have been achieved in employee and organisationaldevelopment through the implementation of the Managerial LeadershipInitiative (MLI).The initiative is designed to build a culture of excellence inleadership across all levels of the company and to strengthen the individualrelationship leaders have with their people.

This investment in our people will continue, giving all front line employeesaccess to the MLI program for training in leadership and work skills overthe coming year. Our goal is to encourage an environment in which frontline people can take more autonomy and contribute more strongly to therunning of the business in a rewarding and challenging environment.

The initiative has seen significant improvements made to Western Power’speople systems.These systems cover areas such as performancemanagement, fair treatment, employee development, employmentagreements and recruitment.

Western Power’s recruitment process has been aligned with the MLI toclarify the accountabilities and authorities of roles. Most of the rolesadvertised since April 2002 have incorporated these new aspects and roleagreements are now being used as part of the appointment process to assistintegration with other people systems.


Listening to our people the bestway to improve our workplaceThe fifth annual organisational cultureemployee opinion survey was conductedthis year to provide a measure of ourworkplace culture. Ten of the 22 culturalareas covered in the 2001 surveyprovided the opportunity to benchmarkour results against 270 companies acrossAustralia, including 18 energy utilitiesin both the public and private sector.Comparison shows that Western Poweris the highest performer in four areas:customer awareness, customer focus,continuous improvement and employeeskills. The report also indicated thatWestern Power is in the top 25% infour other areas: safety and wellbeing,support for innovation, positiveconfrontation and celebration.

Improvements were recorded in most areascovered in the survey. This reflects apositive trend over four consecutive years.

We are committed to developingour apprentices and traineesOur commitment to developing the skillsof our employees continues. During theyear Western Power employed 54 tradeapprentices and 52 trainees, including32 Western Power employee tradeapprentices, 22 group-training tradeapprentices hired in and 45 TraineeDistribution Workers.

Western Power employed three matureaged trade apprentices at Muja PowerStation. A notable development late in2001 was Western Power's developmentand registration with the WA TrainingAccreditation Council of the GenerationTechnician Traineeship. This traineeshiphas been developed to cater for theGeneration Business Unit's need forincreasingly skilled technical staff. Sixtrainees were recruited in an exhaustiveselection process in early 2002.

Certified Agreement Western Power’s Certified Agreementexpires in September 2002. Over itsthree-year term, the agreement will havedelivered Western Power people wageand salary increases totalling 12.85%.In March 2002, Western Power and thetwo unions that are party to the CertifiedAgreement, the Australian Services Unionand Communications Electrical andPlumbing Union, began meeting tonegotiate the next Certified Agreement.

Our outstanding apprentices.


People We will continue our commitment to a safeworking environment. From the highestlevels of the company to our front line staff,we will push ahead with programs andprotocols that are designed to deliver atruly safe working environment wheresafety is a way of life.

We are working in an era where theword reform may seem to have taken ona derogatory meaning. Our people willbe our greatest strength as we embracethe challenge of reform and work toprovide a better future for the industry,our company and the State.

We will continue to evolve as anorganisation and we will nurture ourcorporate culture. Through programs likeour Managerial Leadership Initiative wewill mature as an organisation andcontinue to attract and retain people ofthe highest quality.

The challenge of the futureThe State Government’s Electricity ReformTask Force (ERTF) is considering thestructure of the electricity market andmeasures for encouraging vigorouscompetition in the energy industry.

Our people have worked tirelessly toensure the benefits flowing from a verticallyintegrated Western Power, as well as theunique features of the Western Australianenergy market, have been considered bythose individuals charged with managingthe reform process.

We will continue to work with the ERTF toensure the end result of reform is a stable,reliable and affordable energy market.

Continued market deregulation from1 January 2003, lowering the contestabilitythreshold from 230kW to 34kW, willincrease the challenges we face andbring greater choice for our customers.

We look forward to the challenge of thislower threshold with the knowledge thatcompetition will bring with it innovationin the way we do business that will bringbenefits to customers in this tranche ofthe market.

The electricity industry in Western Australiawhile small in terms of gigawatt hourssold is expansive in terms of complexity.Without any interconnection to othersystems and with a relatively smallconsumer base, even the slightest changewill be felt across the most sensitivesectors of the market.

We advocate thorough consideration ofthe next phase of deregulation to ensurecustomers in the residential market arenot disadvantaged. The residential sectorof the market is perhaps the most sensitiveto change and we believe should beshielded from the potential negativeeffects of deregulation. We believe solidfinancial modelling must prove, beyondany doubt, that positive outcomes canbe achieved.

The hurdles that have accompaniedindustry reform elsewhere in Australiademonstrate the need for a thorough,impartial analysis of market and structuralreform before making sweeping changes.

We are confident the reform process inWestern Australia will not be rushed andwill deliver significant, long term andsustainable benefits for every sector ofthe market.

GrowthWe expect to increase returns to ourshareholder through growth and costmanagement strategies.

We will continue to pursue initiatives todiversify our revenue streams throughinnovative use of technology.

eBusiness, the use of Internet technologiesto improve and transform key businessprocesses, is the way of the future.Like most companies Western Powerunderstands this and we have begunthe evolution from traditional businesspractices to eBusiness. Our focus is to“Web-enable” core business processesto strengthen customer service operationsand management, streamline supplychains and improve efficiencies inmanaging our large asset base.

Over the next 12 months our plans are to:

• Investigate and evaluate MobileWorkforce Solutions to automate andstreamline our field business processesand to provide remote access tosome of our key applications

• in the area of procurement andlogistics we plan to focus on eBusinesscore transactions, from Purchasingto Accounts Payable and betterinventory management, and

• implement electronic bill paymentand presentation.

T H E F U T U R E

OUR VISION FOR THE FUTURE IS SIMPLE AND HONEST; TO BE

THE SUPPLIER OF CHOICE FOR ENERGY AND COMPLEMENTARY

SERVICES, PROVIDING VALUE TO OUR CUSTOMERS AND

COMMUNITIES AND INCREASED RETURNS TO OUR SHAREHOLDER.

In a market undergoing sustained deregulation,there is increasing pressure on prices and onWestern Power's performance to continue toprovide the level of service our customers demand.In recent times we have worked under themicroscope of proposed reform, we have triedto steer the reform process in the direction thatwe believe will best serve Western Australia.We will maintain our commitment to thecommunities with whose consent we operateand to the environment that we all share.


The demonstration Integrated WoodProcessing Plant at Narrogin, which weannounced last year, is well on track to beoperational by early 2003. If successful,the project could see large areas of theWheatbelt planted with deep-rooted oilmallees that will help to combat rural soilsalinity while providing a source ofrenewable energy that will help reduceour greenhouse gas emissions.

Our Cockburn 1 Power Station will beoperational by the beginning of 2004and will see a marked increase in theefficiency of our generating fleet.Exploiting more efficient technologies andproviding energy products and servicesthat contribute to a growth in sustainabledevelopment is a key objective.

Business GrowthIn a period of spending restraint andcareful management of debt levels, ourpeople are looking at ways of financingnew business ventures.

However, we will be cautious of ourcapital spending. We are required bythe State Government to maintain stringentdebt constraints that may limit theexpansion capability of Western Power.

Other trends that are likely to impactthe company’s future businessenvironment include:

• The establishment of an energy accessregulator that will oversee third partyaccess arrangements to the electricitytransmission and distribution systemsto encourage competition

• potential new entrants to theGeneration and Retail markets,resulting in increased competition, and

• new renewable energy opportunitiesas impediments to renewable energyare removed.

The energy industry has experienced aperiod of significant change and the nextfew years are likely to be impacted byfurther reforms. However, a competitiveand productive Western Power can buildon its strong foundation and continue tomeet customers’ needs in terms ofcompetitive prices and reliable service.

One of the innovative projects featured inthis report is our broad band network trialin South Perth. The project builds on thesynergies that exist within our networks

As we enter 2002/03 we do so fromthe solid platform of an excellent financialposition. Our customers will find comfortin the knowledge we are in good shapeto meet the challenges of the future.Our excellent results in a competitive anddemanding environment show we arewell placed to maintain our position asthe leader of the energy market inWestern Australia.

Our ability to retain market-share andwin back customers lost in the early daysof deregulation is proof of the valueWestern Power can deliver to customersall over Western Australia.

Our success in the past and thecommitments we have made for the futuredemonstrate clearly that Western Power,as an integrated generator and supplierof energy, is the benchmark performerand we welcome change that will deliverlower prices to customers and improvedservices to our communities.

Community Partnerships Western Power makes an invaluablecontribution to Western Australia’s socialfabric. We are able to use our positionof strength to underwrite many programsand initiatives that would otherwise failwithout our support.

Part of the informal contract we havewith the Western Australian public toprovide our products and services, isthe expectation that we will supportcommunities through sponsorshipsand partnerships.

Western Power’s commitment to theWestern Australian economy can bemeasured in dollar terms – but ourcommitment to the social fabric of ourState can be measured in terms of ourcontribution to the endeavours of WesternAustralians in fields such as the arts,education, sport and the environment.

Western Power has a proud history ofcontributing to the everyday lives of thepeople who live in the communities inwhich we operate. At Western Power,we don’t see our communities just ascustomers, we believe they are our partnersin building a better life for all WesternAustralians to enjoy.

We will build on our reputation for opencommunication, with programs to provide

timely information to stakeholders aboutour operations. We will encouragedialogue and be accessible to communitygroups, welcoming and acting on theirfeedback to guide our operations.

We are continuing to work hard inregional and rural Western Australia.Successes have come through listening toour customers and working with them toprovide solutions to their individual needs,however we acknowledge the fact weneed to maintain our focus on this oftenneglected segment of the community.

Sustainable energy andenvironmental excellence We pride ourselves on being the leaderin the development of sustainable energysources in Western Australia. We arecommitted to achieving the targets set forus by the Renewable Energy (Electricity)Act 2000 and our goal is to meet ourtarget in a way that delivers maximumbenefits to our customers. We havesourced Renewable Energy Certificatesfrom our Albany Wind Farm, Australia'slargest grid-connected wind farm, andthrough innovative programs like ourRECs Program.

Work has begun on the approvals processfor the expansion of our wind farm atNine Mile Lagoon at Esperance and bythe end of 2002 a small state-of-the-artwind turbine will be operating in Exmouthon the State’s north west coast.

Work has begun on a study into thefeasibility of the proposed MumbidaWind Farm. With an installed capacityof 30MW, the wind farm couldgenerate 105GWh hours of clean greenelectricity, enough for almost 20,000average homes, and could save almost100,000 tonnes a year of greenhousegases. Wind monitoring in the Geraldtondistrict over the past decade, and moreintensively in the past two years, confirmthat Mumbida is an excellent windenergy resource.

Our commitment to environmentalexcellence is not restricted to legislativerequirements. Building on the success of theHotham-Williams Western Power GreeningChallenge, where we aim to plant fourmillion trees in degraded, salt affectedareas of the State’s South West; we areplanning a new Greening Challenge totake in other areas in future years.


and telecommunications areas in themanagement of an extensive opticalfibre network.

Complementing our acceptance of newbusiness ventures and new challenges,is our continuing expansion of traditionalareas of business like the managementof our electricity networks. Work on newtransmission lines to expand capacityand add to the reliability and security ofpower supplies in northern and southernareas of our South West InterconnectedSystem (SWIS) will create the potentialfor new industry and more businessopportunities for Western Power.

Valuable Business Partnerships Successful partnerships built on theindividual strengths of Western Powerand its business partners will providecompounded benefits to our traditionalcustomer base, and to a growing bandof new customers as we move into newventures in new markets.

The Wind Energy Corporation, WindCo,is a collaboration between Western Power,Enercon International GmbH, EnerconPower Corporation and Powercorp anddelivers specialised skills and expertisein wind energy engineering, powercontrol systems engineering and electricalengineering. The result is an end-to-endservice unequalled in Australia. WindCo isstudying the feasibility of building a windfarm on Mumbida, a grazing propertyabout 40km south east of Geraldton.

Western Power continues to look beyondits traditional areas of business. Joint venturepartners bring the skills and knowledge thathelp us to move into new markets with greatsuccess. Integrated Power Services (IPS),a joint venture Western Power developedin 1998, expanded substantially this year

with the challenge of relocating 12 gasturbines from around the world to agenerating site at Hallet in South Australia.This project was challenging bothtechnically and commercially due to avery short timeframe and IPS performedsuperbly. The company’s turnover this yearwill have increased more than threefoldon the previous year to $30 million.IPS is now pursuing opportunities bothwithin Australia and overseas.

Business Value Western Power has continued to focus oncost management to deliver sustainablelower prices to our customers. Since ourcreation in 1995, we have delivered onlyone small price increase to residentialcustomers and electricity tariffs forbusinesses have not increased since 1992.

The successful completion of negotiationswith independent power producers inthe Mid West, Esperance and WestKimberley regions of the State shouldbring considerable efficiencies and majorcost savings when new, state-of-the-artgeneration replaces ageing generationplant in some of the most remote areas ofWestern Australia. Our role in generation isexpected to diminish when a wide range ofprivate sector generating businesses takeon the generating role in remote areas.

Western Power is planning for theanticipated energy requirements of ourcustomers over the next decade andbeyond. The challenge for Western Poweris to provide a reliable supply ofelectricity at the lowest price possible.

As early as the summer of 2004/05,Western Power will require access toadditional generating capacity tocontinue to reliably meet the electricityrequirements of Western Australianbusinesses and residences connected tothe SWIS. The need for this new capacityis driven by the growth in the economyand population of Western Australia.

In June 2002 the Minister for Energyannounced a power procurement programfor the SWIS. The Electricity CorporationAct 1994 requires Western Power touse an open and non-discriminatoryprocurement process to acquire therequired new generation capacity.

Accordingly, we have established aprocess for the procurement of 240MWof additional peaking generationcapacity for the SWIS by 2005/06. A further stage will proceed to procure300MW of baseload capacity by2007/08. The result of these programswill be power purchase agreements forthe supply of electricity to Western Power.

Western Power and its predecessorshave played an integral role in thedevelopment of Western Australia’svast economic and social wealth.In 2002, the company is superblypositioned to continue to play a majorpart in the State’s economic, social andenvironmental development.

We pride ourselves on being a leader in the development of sustainable energy sources in Western Australia. Projects like the advancedmini-wind farm in Exmouth are an example of our quest to create tailor-made sustainable solutions for areas across the State.

CAIDI Total outage duration minutes/average number of customers.

CO2 Carbon Dioxide.

EMS Environmental Management System.

EMISWeb Electronic environmental management information system.

GW Gigawatt.A measure of electrical power. Equivalent to one million kilowatts.

GWh Gigawatt-hour.One GWh = 1000 MWh or one million kilowatt-hours.

ISO 14001 International Standards Organisation 14001.The international standard for environmental management systems.

kV Kilovolt.One kV = 1000 volts. A volt is the unit of potential of electric pressure.

kW Kilowatt.One kW = 1000 watts. A watt is the rate at which electricalenergy is produced or used.

kWh Kilowatt-hour.The standard unit of energy, equivalent to the consumption rate of onekilowatt for one hour. Commonly used as the ‘unit’ of electrical energy.

MVA Megavolts-ampere.The product of the voltage rating (kV) and the current rating (kA). Used to represent the rating of electrical equipment such as transformers.

MW Megawatt.One MW = 1000 kW or one million watts.

MWh Megawatt-hour.One MWh = 1000 kWh.

NOx Nitrogen Oxides. A term used for a mixture of nitrogen oxides.

SAIFI Total customers interrupted/average number of customers.

SO2 Sulfur Dioxide.

Spinning Reserve The amount of instantly available spare generation capacity on the system at any one moment.

TJ Terajoule.One TJ = one million, million joules, or 1012 joules.Used to indicate the energy content of gas.

G L O S S A RY


key result - parliament of western australia€¦ · · 2014-07-28key result areas environmental...

Documents