Overview TRUenergy YallournJune 2008

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TRUenergy

Tallawarra

Site MW

Yallourn Brown coal-fired base load station and mine 1,480

Hallett Gas-fired peaking station 180

Newport and Jeeralang

Gas-fired power station 966

–

Tallawarra Stage A CCGT (construction)Stage B OCGT (development)

400500

Hallett

YallournSEAGas Pipeline

Retail assets

Electricity assets

Newport and Jeeralang

Iona Gas Storage

Brisbane

Sydney

Melbourne

Adelaide

Studland Bay wind farm

Bluff Point wind farm

Cathedral Rocks wind farm

Iona Gas storagefacility

12 PJ gas storage facility

Gas assets

Details

SEAGas Pipeline

33% owner

Mass marketElectricity - 700,000 customer accountsGas – 500,000 customer accounts

GreenPower

Retail footprint

Roaring 40’sManagement of wind assets in Australia, Chinaand India

350

Industrial customer

~50,000 customer accounts

7 TWh

AGILITY, ACHIEVEMENT

TRUenergy – a major national integrated energy company

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Divider / Section titleSub Title Line

TRUenergy Yallourn

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Plant Statistics

• Brown Coal Fired Units – burning coal of 65% moisture

• 30 Year Old Plant

• Unit 1 and Unit 2 - Commissioned 1974 / 75 (Stage 1) • John Thompson boiler – Traditional Drum• 350MW Toshiba/GE derived turbines• Design Thermal efficiency 32%

• Unit 3 and Unit 4 - Commissioned 1981 / 82 (Stage 2)• International Combustion boilers – Semi Once Through• 375MW Toshiba/GE derived turbines• Design Thermal efficiency 34%

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Plant Data

» Unit 1 Unit 2 Unit 3 Unit 4

• Commissioned 1974 1975 1981 1982

• MCR (MW) 350 350 375 375

• Running Hours 240,000 232,000 200,000 194,000

(To End 07)

• Average starts/year 10 10 12 15

• Notional Design Life = 30 Years

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History

• Built for the State Electricity Commission of Victoria as part of utility fleet serving Victoria

• Generation as part of Government Instrumentality

• Station Privatised 1995/96 - POWERGEN

• China Light and Power Purchase 2001

• Plan life mid 2020’s

• Coal Quality• Low energy coal 7.3 MJ per kg LHV• Low sulphur 0.23% dry basis• Low ash 2% dry basis• High moisture content 63% - 65%

Organisation Chart - Yallourn

General Manager Yallourn

Yallourn Site

Asset ManagerPower Station Maintenance Manager

(Alliance Manager)

Operations Manager

CommercialManager

HR ManagerMine Manager

Alliance TeamsMix of TRUenergy

And Silcar

Ops TeamsChemists

Ops Performance

Safety Health &Environmental

Team

Asset Management

Team

Commercial Team

Estate ServicesAlliance

RTL AllianceOperations

And Maintenance

Mine InfrastructureGroup (TRUenergy)

Mine MaintenanceSilcar Sub-Alliance

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Alliances

TRUenergy Yallourn – Alliance Contracts

POWER STATION MAINTENANCE

– Alliance With SILCAR

- Teams combination of TRUenergy and SILCAR personnel

MINE

- Alliance with RTL

- RTL Sub Alliance with Silcar for Mine Maintenance

SECURITY & SUPPORT SERVICES

- Alliance with Estate Services (Infraserve)

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Personnel Breakdown

Employee Allocation across Site

Contract Mining (RTL & SILCAR)

32%

TRUenergy Direct35%

Apprentices3%

Estate Management (Infaserv & TRUenergy)

7%

Power Maintenance (SILCAR & TRUenergy)

23%

Total Site Including Mine = 493 People

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Plant Performance

TRUenergy Yallourn Power Station Equivalent Forced Outage Factor

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

YEAR

Perc

en

tag

e

*NOTE: Equivalent Forced Outage Rate (EFOR) used pre 99/00. Calender year

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Operating Regime

OPERATES IN NATIONAL ELECTRICITY MARKET

Bids to generate on 5 minute basis with payment on half hour

Base Load running

Part of TRUenergy portfolio of Generation, Gas and Retail

business

Market can be volatile and unpredictable

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Yallourn Mine – Changed Mining Method

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Traditional Brown Coal Mining

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Dozer Technology

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Recent Major Activities

• Relocation of Morwell River to run through mine area

• Conversion of four units and common plant from analogue to digital

controls

• Reblading of LP Turbine Last Stage Blades.

• Repack of RAH’s in Stage 1.

• Rewind of Unit 2 Generator.-2006

• New Condenser in Unit 4 -2004

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PROJECTS

• Two new HIP Turbines to be installed on Stage 2 Units. 3% Efficiency

improvement.

• Refurbish of Cooling Tower 3 Internals

• Re-tube Condenser U3. 2009

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Morwell River Diversion (MRD)

Embankment geometry

• 3.5km clay lined channel• 13 million cubic metres earth• Channel designed for

1:10,000 year probability flood

• 70 m wide trapezoidal channel, 10 m deep

• Toe weights for stability on east and west sides of embankment

• Instrumentation and survey to monitor pressures and movements

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Major Challenges

CARBON FOOTPRINT - BROWN COAL

- High moisture (65%) results in low energy per kg and need to burn

three times the amount compared to black coal

- CO2e produced approximately 1.3 tonnes per megawatt hour sent out

- Low in ash and low in sulphur

WATER SUPPLY

- Low rainfall country

- Focus on saving water

- Competing demands for use of resource