Prior to 1998-99, the government-owned electricity generation operations were consolidated in the one business, SA Generation Corporation (trading as Optima Energy).
As part of the electricity supply industry reform process, and to prepare the State’s electricity assets for disposal, the Government subdivided the generation function into three competing businesses and created a company to manage the existing gas contracts and to trade in gas.
As a result of the above changes the electricity generation businesses of the Government became:
Flinders Power Pty Ltd — which operated the brown coal fired power stations at Port Augusta with a capacity of 760 MW. The company also operated a coal field at Leigh Creek and owned the railway line linking the coal field with the power stations.
Optima Energy Pty Ltd (now RESI OE Pty Ltd) — which operated the gas fired power station at Torrens Island with a capacity of 1280 MW. The power station can also operate using oil as the fuel for generation.
Synergen Pty Ltd (now RESI SYN Pty Ltd) — which operated gas turbine generators at four locations with a total capacity of 359 MW.
In addition, Terra Gas Trader Pty Ltd managed gas contracts originating in the South Australian and South West Queensland Cooper Basins.
Shares in each of these companies were held by SA Generation Corporation.
In July 1999 Generation Lessor Corporation was established as a subsidiary of the Treasurer to be the lessor of the prescribed electricity generation assets disposed of.
In March 2000 shares held by SA Generation Corporation in the four companies were transferred to the Treasurer.
In addition, as part of the Government’s disposal of the electricity businesses the following changes have taken place since 1 July 1999:
On 4 May 2000 the South Australian Treasurer signed an agreement with TXU Electricity Ltd (TXU) for the disposal of the assets and liabilities of Optima Energy Pty Ltd. Although settlement of the transaction did not take place until 6 June 2000, the benefits and risks associated with the business were transferred as at the date of the agreement ie 4 May 2000.
On 11 May 2000 the South Australian Treasurer signed an agreement with National Power Australia Pty Ltd (National Power) for the disposal of the assets and liabilities of Synergen Pty Ltd. Although settlement of the transaction did not take place until 6 June 2000, the benefits and risks associated with the business were transferred as at the date of the agreement ie 11 May 2000.
The Government has announced that on 3 August 2000 an agreement was signed with NRG Energy for the disposal of the assets and liabilities of Flinders Power Pty Ltd. Although settlement of the transaction did not occur until 8 September 2000, the benefits and risks associated with the business were transferred as at the date of the agreement, ie 3 August 2000.
Under the Government’s electricity businesses disposal program, Final Bids for the disposal of Terra Gas Trader Pty Ltd were received on 17 July 2000. As at the date of the preparation of this Report, no announcement had been made with respect to the outcome of the disposal process of that entity.
The following commentary details the operations of:
Flinders Power Pty Ltd
RESI OE Pty Ltd (formerly Optima Energy Pty Ltd)
RESI SYN Pty Ltd (formerly Synergen Pty Ltd)
Terra Gas Trader Pty Ltd
Generation Lessor Corporation.