Presented by

Ian BuchananApprovals and Development Manager

Mundaring Weir Substation

Western Power is responsible for:

Providing the safe, reliable and efficient delivery of electricity within the SWIS

Maintaining, upgrading andexpanding the network

Connecting large and smallcustomers (including generators) to the network

Managing the power system in conjunction with the Independent Market Operator

Working with government, business and industry to deviseoptimal energy solutions

The existing Mundaring Weir Substation does not have the capacity to meet the future requirements of the local community and Water Corporation’s proposed Mundaring Water Treatment Plant.

The installation of the WTP and Mundaring C Pump Station, will lead to essential improvements in the water quality and reliability of water supplies to the Perth Hills, Goldfields and Agricultural regions.

360 Environmental Pty Ltd was commissioned by the Water Corporation to investigate location options for a new substation to replace the existing substation.

13 potential sites were identified and evaluated through a desk-top study. 4 potential sites remain under consideration. All potential sites are located within the Public Drinking Water Source Area (PDWSA).

Water Corporation’s requirements

Western Power is seeking feedback from the community and key stakeholders to help us identify a preferred site option.

StakeholdersShire of MundaringShire of KalamundaWater CorporationDepartment of WaterDepartment of Environment and ConservationHeritage Council WATourism Western AustraliaNational Trust WA

CommunityCommunity outreach sessions – Mundaring & KalamundaWater Corporation’s Mundaring Community Reference Group (5 meetings in total)Western Power website

Stakeholder engagement

Site selection process

Western Power's decision-making process

A process of iteration and negotiation with key stakeholders to identify a suitable site i.e. one that meets the requirements of Western Power's two main regulators, the Economic Regulation Authority and the Environmental Protection Authority, while reflecting the views and values of the community to the greatest extent possible.

ECONOMIC REGULATION AUTHORITY

Western Power operates in a regulated economic environment Western Power must demonstrate to the ERA the efficient expenditure of public moniesThere is a direct link between the amount of money Western Power spends and the cost of electricityWestern Power needs to be mindful when building its infrastructure to carefully balance the needs of the community with increasing costs and therefore electricity tariffs.

5. Close out & benefits Phase4. Execution Phase2. Scoping Phase1. InitiationPhaseStart 3. Planning Phase

IDENTIFY PROBLEM / NEED DETERMINE CONCEPT SOLUTIONSCONDUCT OPTIONS ANALYSIS

CONDUCT SENSITIVITY ANALYSISCHOOSE THE BEST OPTION

REG. TEST:DEMONSTRATE BEST OPTION & RIGHT

TIME TO SATISFY PROJECT DRIVER

DETAILED SCOPING:PROCUREMENT STRATEGY

DELIVERY METHODRESOURCING STRATEGY

EFFICIENT DELIVERY TRACKED (JUSTIFIED) CHANGES

BUSINESS CASE APPROVALEX-ANTE NFIT:

DEMONSTRATE BEST OPTION AND EFFICIENT PROCUREMENT,

RESOURCING AND DELIVERY METHODS

DEMONSTRATE BENEFITSCLOSE OUT

OPERATION & MAINTENANCE

DEFINE PROJECT DRIVER

MET PROJECT DRIVER

Gate 1

Gate 2

Gate 3

Gate 4

CLOSE OUT REPORTEX-POSTE NFIT:

DEMONSTRATE BEST OPTION & EFFICIENT DELIVERY TO MINIMISE

COSTS

Gate 5

Site Map

Site 2

Site 2 - Features

Close to existing 66kV transmission lineNo Declared Rare Flora, Threatened Ecological Communities or Priority FloraMinimal clearingRelatively levelUnlikely to be seen from weir wallRisk of impact to European Heritage5-7 metre wide clearing (22kV line) along Mundaring Weir Road from Pumping Station to Weir VillageLeast likely impact on Carnaby CockatooClearing of 1hectare +21 treesEstimated cost $20-$25 million

SITE 3

Site 3 - Features

Close to Water Treatment PlantHalf a kilometre away from existing transmission line30 metre wide transmission corridor requiredNo known European or Aboriginal sitesNo Declared Rare Flora, Threatened Ecological Communities or Priority FloraHigh vegetation and habitat qualitySteep site requiring extensive and costly earthworksImpacts on recreational walking trails and Jacoby ParkAssume underground transmission line through Jacoby ParkImpacts on Carnaby Cockatoo foraging habitatTotal clearing of 3 hectares63% increase on base cost

SITE 5

Site 5 - Features

Close to existing transmission lineNo known European or Aboriginal sitesNo Declared Rare Flora, Threatened Ecological Communities or Priority FloraHigh vegetation and habitat qualityImpact on Carnaby Cockatoo foraging habitatAccess roads requiredVisible from Mundaring Weir Road and walking trailsConsiderable earthworks requiredTotal clearing of 3 hectares19% increase on base cost

Site 5 A - Features

Relatively close to existing transmission lineLikely visible from Mundaring Weir Road and walking trailsNo Declared Rare Flora, Threatened Ecological Communities or Priority FloraRequires cleared 40-45 metre wide line corridor No known European or Aboriginal sitesHigh vegetation and habitat qualityAccess roads requiredImpact on Carnaby Cockatoo foraging habitatSignificant earthworks requiredTotal clearing of 3 hectares23% increase on base cost

Site 5 B - Features

Relatively close to existing transmission lineLikely visible from Mundaring Weir Road and walking trailsNo Declared Rare Flora, Threatened Ecological Communities or Priority FloraRequires cleared 40-45 metre wide line corridorNo known European or Aboriginal sitesHigh vegetation and habitat qualityRequires access roads Impact on Carnaby Cockatoo foraging habitatSubstantial earthworks requiredTotal clearing of 3 hectares18% increase on base cost

Site 5 C - Features

Screened from public viewLevel and somewhat degradedNo Declared Rare Flora, Threatened Ecological Communities or Priority Flora500 metres away from existing transmission lineRequires a cleared 40-45 metre wide line corridor No known European or Aboriginal sitesImpact on Carnaby Cockatoo foraging habitatRequires upgrading existing tracksTotal clearing of 4 hectares19% increase on base cost

SITE 8

Site 8 - Features

Close to proposed Water Treatment PlantClose to existing transmission lineMostly cleared and levelNo known Aboriginal sitesNo Declared Rare Flora, Threatened Ecological Communities or Priority FloraImpacts to European HeritageVisible from Mundaring Weir Road and walking trailsImpact on Carnaby Cockatoo foraging habitatTotal clearing 2 hectares11% increase on base cost

Standard 132 kV substations

Estimated clearing and line costs

$62,0003.93 ha5.94 kmOpt C

$47,0002.96 ha5.43 kmOpt B

$47,0003.21 ha5.54 kmOpt A

$8.3 million$46,0002.97 ha5.04 kmSite 5

Similar to site 5$33,0002.05 ha3.50 kmSite 8

Similar to site 5$53,0003.02 ha3.15 kmSite 3

$5.4 million$35,0001.02 ha +21 trees2.22 kmSite 2

ESTIMATED DISTRIBUTION LINE COSTS

ESTIMATED COST OF CLEARING

ESTIMATED CLEARING LINE & SITE

KILOMETRES (overall length)

SITES

Proposed Distribution line

The Department of Water’s position on the proposed MundaringWeir substation project is as follows:

The need for the power infrastructure is acknowledged as it willfacilitate the public benefit of improved drinking water for consumers.

Energy industry is not generally supported in public water source areas, however the energy is primarily for the operation of the water treatment plant in this case. As such, the proposal has been assessed under the Drinking water treatment plant land use category – which is compatible with conditions.

Development is not supported in Reservoir Protection Zones (RPZ).

Department of Water

The Department of Environment and Conservation has advised as follows:

DEC supports the option that has the least impact on native vegetation and the smallest impact to conservation estate (namely the surrounding State Forrest and National Parks).

DEC supports the option that has the least impact on good quality vegetation.

The industrial precinct is already a developed area and as such impacts to native vegetation will be minimised.

DEC suggest that due to the tourist and recreational values of the Mundaring area visual impact should be minimised.

Department of Environment and Conservation

Next steps

Western Power in collaboration with the Water Corporation proposes to finalise the site selection by the end of March 2010 and then undertake the approval process eg. Environmental Protection Authority, Development Application. A business case will then be prepared and a report submitted to the Economic Regulation Authority.

Questions?