1. Your Electricity Contracts and Renewable Electricity Options
Jane Wilson, Contract Services, DAIS
26 August 2003

2. Agenda Electricity Retail Contracts Green Power Purchase Opportunities
Engineering Review
Where to from here
Contacts

3. Retail Electricity Contracts
All sites including households in South Australia became contestable on 1 January 2003
State Government initiated centralised procurement process to establish contracts to support SA Government Agency requirements

4. Retail Electricity Contracts
An innovative approach was taken which included collaboration with 66 Local Councils
Largest multi-site contract undertaken in the National Electricity Market
Benefits of approach included increased purchasing leverage and central management approach

5. Metered Supplies Contract
Contract executed with Origin Energy in April 2003 for 3,600 small sites (100 GWh of energy)
$34.7 million delivered cost to agencies and councils over 3 year term
Estimated 3% increase on current costs
Cost is 9% lower than AGL Standing Contract price

6. Unmetered Supplies Contract
Contract with AGL currently being finalised
210,000 road, flood and traffic signal lights across the State (90 GWh of electricity)
$4.3 million delivered cost over term
18% below AGL Standing Contract Prices
23% below current costs

7. Green Power Options
Green Power purchase opportunities available under both the Metered Supplies and the Unmetered Supplies Agreements
Decision to purchase resides with the Council or Agency
Purchasing Green Power for Streetlighting part of Unmetered Supplies Agreement

8. Green Power Options
AGL Unmetered Supplies Agreement provides flexibility for Green Power purchasing
There are a range of options available relating to Green Power including:
Product;
Source of Energy; and
Quantity.

9. Green Power Options
Premium associated with purchasing Green Power due to:
generation of Renewable Electricity Certificates (RECS); and
cost of production.
AGL Green Energy has a premium of approximately $44/MWh (4.4 c/kwh)

10. Green Power Options Benefits of Green Power purchasing include:
Reduction in green house gas emissions and other pollutant impacts on the environment
Assisting in the development of further renewable electricity generation

11. Road and Public Lighting Review
65 engineering hours consultancy to review contractual arrangements for supply and maintenance of lighting assets
Consultation with Councils to determine where the hours will be used

12. Road and Public Lighting Review
Focus of review will be on:
Technological advances that assist in reducing environmental impacts and maintenance requirements; and
Improvements in maintenance practices to reduce overall life cycle cost of road and public lighting.

13. Where to from here
Discuss with your Council the costs and benefits of Green Power purchasing
Contact Contract Services for further information
Coordinate with Contract Services to arrange the purchase of Green Power from your retailer

14. Contact Us Jane Wilson Contracts Officer Phone 8226 5038
Mark Carey
Manager, Strategic Contracts
Phone