AGL Energy Limited · ASX:AGL
AGL Energy — American Chamber of Commerce Presentation (November 2003)
19 slides from AGL Energy's conference presentation, Nov 11, 2003
Slide 1: American Chamber of Commerce Presentation
AMERICAN CHAMBER OF COMMERCE PRESENTATION Greg Martin, Managing Director - 11 November 2003 1 AMCHAM Presentation 11 November 2003
Slide 2: North America - 14 August 2003
NORTH AMERICA - 14 AUGUST 2003 2 AMCHAM Presentation 11 November 2003
Slide 3: North America - 15 August 2003
NORTH AMERICA - 15 AUGUST 2003 3 AMCHAM Presentation 11 November 2003
Slide 4: North America - August 2003
NORTH AMERICA - AUGUST 2003 Empire State Building looms over darkened city skyline 4 AMCHAM Presentation 11 November 2003
Slide 5: 14 Steps to the Incident
14 STEPS TO THE INCIDENT AAP/Wall Street Journal A series of interconnected events cascading to “System Black” … 5 AMCHAM Presentation 11 November 2003
Slide 6: Lessons for Australia
LESSONS FOR AUSTRALIA • Supply/Demand Balance • Peak Electricity Demand • Transmission System Constraints • Complex Regulatory System • Investment Signals 6 AMCHAM Presentation 11 November 2003
Slide 7: Supply/Demand Balance
SUPPLY/DEMAND BALANCE NEMMCO SOO - VIC & SA Supply / Demand Balance 7 AMCHAM Presentation 11 November 2003
Slide 8: Peak Electricity Demand
PEAK ELECTRICITY DEMAND Load Shape Comparison 8 AMCHAM Presentation 11 November 2003
Slide 9: Transmission System Constraints
TRANSMISSION SYSTEM CONSTRAINTS Snowy to Victoria 1950s 1,900MW Snowy to NSW 1950s 3,100MW Heywood (Vic - SA) 1980 500MW/300MW Directlink (Qld-NSW) 2000 180MW QNI (Qld - NSW) 2001 1000MW/750MW Murraylink (Vic - SA) 2002 220MW Basslink (Tas - Vic) 2005 600MW/300MW 9 AMCHAM Presentation 11 November 20
Slide 10: Complex Regulatory System
COMPLEX REGULATORY SYSTEM Australian Energy Regulatory Structure Generation/ Transmission Distribution Retail Wholesale ACCC ACCC Vic – ESC Vic – Minister & NECA NECA NSW – IPART ESC NEMMCO WA – OffGar (gas) SA – ESCOSA NSW – Minister & (electricity) & SAIPAR IPART (gas) SA – ESCOSA QLD – QCA QLD –
Slide 11: Investment Signals - Retail Pricing
INVESTMENT SIGNALS - RETAIL PRICING • Transition from regulated tariffs to market based pricing • Expected Outcomes: • Provides safety net • Promotes competition • Reduces frequency of regulator reviews • Controlled and stable path for transition Clarity & certainty is key to reinvestment ... 11 AMC
Slide 12: AGL Strategy & Positioning
AGL STRATEGY & POSITIONING • Portfolio of Businesses Across the Energy Value Chain • Positions of Market Leadership in Retail Energy • Power Generation: – Greenfields – Brownfields – Investments in existing plants 12 AMCHAM Presentation 11 November 2003
Slide 13: Energy Sales & Marketing
ENERGY SALES & MARKETING Market leading energy retailer 3 million customer base Wholesale energy position Brand & Gas Electricity energy Customer numbers* 1.4million 1.7million know-how Energy Sales 155.2PJ 21 208 GWh * Includes ActewAGL customers 13 AMCHAM Presentation 11 November 2003
Slide 14: Wholesale Electricity
WHOLESALE ELECTRICITY Typical Portfolio Structure 14 AMCHAM Presentation 11 November 2003
Slide 15: Power Generation Strategy
POWER GENERATION STRATEGY Two distinct elements: • Vertical integration positions with control of trading/dispatch - where appropriate • Stand-alone power generation investments Benefits: • Earnings diversification • Portfolio diversification • Additional growth opportunities Another plank in AGL’s
Slide 16: Peaking Power Generation
PEAKING POWER GENERATION Somerton (Vic) • Peaking operation • 150 MW • Gas fired Hallett (SA) • Peaking operation • 180 MW • Gas/distillate fired Benefits: • Enhancing the retail electricity business • Wholesale electricity risk mitigation Further investment as demand grows ... 16 AMCHAM Presentatio
Slide 17: Loy Yang Power
LOY YANG POWER • Conditional Share Sale Agreement signed - extension to Dec 2003 • Vendor bank extension to 12 Feb 2004 • AGL investment of $200m for 35% stake • Lowest cash operating cost base load generator in the NEM • 40 plus years fuel supply Loy Yang investment is aligned with AGL strategy: •
Slide 18: Loy Yang Power - Proposed Arrangements & Status
LOY YANG POWER Proposed Arrangements & Status • AGL interest up to 35% • Arms - length trading relationship • Dispatch & Marketing by Agent • AGL has no interest in Agent • AGL participates in budget setting, financial and capital decisions, risk management policies and other key policies at investm
Slide 19: American Chamber of Commerce Presentation
AMERICAN CHAMBER OF COMMERCE PRESENTATION Greg Martin, Managing Director - 11 November 2003 19 AMCHAM Presentation 11 November 2003
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