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GLADSTONE POWER STATION AGREEMENT AMENDMENT BILL 1997

      Queensland




 GLADSTONE POWER
STATION AGREEMENT
AMENDMENT BILL 1997

 


 

 

Queensland GLADSTONE POWER STATION AGREEMENT AMENDMENT BILL 1997 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 Amendment of s 3 (Minister may make agreement substantially in form of agreement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Amendment of s 5 (Amendment of State agreement) . . . . . . . . . . . . . . . . . 4 6 Insertion of new s 5A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5A Approval of proposed further agreement . . . . . . . . . . . . . . . . . . . . . . 5 7 Amendment of s 6 (Amendment of Schedule 2 to State agreement) . . . . . 5 8 Amendment of sch (State agreement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 9 Insertion of new sch 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 SCHEDULE 2 FURTHER AGREEMENT AMENDING STATE AGREEMENT

 


 

 

1997 A BILL FOR An Act to amend the Gladstone Power Station Agreement Act 1993

 


 

s1 4 s6 Gladstone Power Station Agreement Amendment The Parliament of Queensland enacts-- 1 title 2 Short Clause 1. This Act may be cited as the Gladstone Power Station Agreement 3 Amendment Act 1997. 4 5 Commencement Clause 2. This Act commences on a day to be fixed by proclamation. 6 amended 7 Act Clause 3. This Act amends the Gladstone Power Station Agreement Act 1993. 8 of s 3 (Minister may make agreement substantially in 9 Amendment form of agreement) 10 Clause 4. Section 3(1), `the Schedule'-- 11 omit, insert-- 12 `Schedule 1'. 13 of s 5 (Amendment of State agreement) 14 Amendment Clause 5. Section 5(3), after `approved by'-- 15 insert-- 16 `an Act or'. 17 of new s 5A 18 Insertion Clause 6. After section 5-- 19 insert-- 20

 


 

s7 5 s9 Gladstone Power Station Agreement Amendment of proposed further agreement 1 `Approval `5A.(1) For section 5, approval is given for the Minister to enter into a 2 further agreement for the State. 3 `(2) The further agreement is to be in, or substantially in, the form set out 4 in schedule 2.'. 5 of s 6 (Amendment of Schedule 2 to State agreement) 6 Amendment Clause 7.(1) Section 6, heading, `Schedule 2'-- 7 omit, insert-- 8 `Second Schedule'. 9 (2) Section 6(1), `Schedule 2'-- 10 omit, insert-- 11 `The Second Schedule'. 12 (3) Section 6(3), after `approved by'-- 13 insert-- 14 `an Act or'. 15 of schedule (State agreement) 16 Amendment Clause 8. Schedule, heading, `SCHEDULE'-- 17 omit, insert-- 18 `SCHEDULE 1'. 19 of new sch 2 20 Insertion Clause 9. After schedule 1-- 21 insert-- 22

 


 

s9 6 s9 Gladstone Power Station Agreement Amendment `SCHEDULE 2 1 `FURTHER AGREEMENT AMENDING STATE 2 AGREEMENT 3 section 5A 4 THIS AGREEMENT is made the day of 1997. 5 BETWEEN: 6 1. THE HONOURABLE DOUGLAS SLACK, MINISTER FOR 7 ECONOMIC DEVELOPMENT AND TRADE OF THE 8 STATE OF QUEENSLAND, FOR AND ON BEHALF OF 9 THE CROWN IN RIGHT OF THE STATE OF 10 QUEENSLAND ("the State"); 11 2. GPS POWER PTY. LIMITED (ACN 009 103 422) of 33rd Floor, 12 55 Collins Street, Melbourne, Victoria, 3000 13 GPS ENERGY PTY LIMITED (ACN 063 207 456) of 33rd 14 Floor, 55 Collins Street, Melbourne, Victoria, 3000 15 SUNSHINE STATE POWER B.V. (ARBN 062 295 425) of C/- 16 Goudsmit & Branbergen, Advocaten, JJ Viottastraat 46 Postbus 17 75458, 1070 AL Amsterdam 18 SUNSHINE STATE POWER (NO. 2) B.V. (ARBN 063 382 829) 19 of C/- Goudsmit & Branbergen, Advocaten, JJ Viottastraat 46 Postbus 20 75458, 1070 AL Amsterdam 21 SLMA. GPS PTY LTD (ACN 063 779 028) of C/- KPMG, 22 Level 30, Central Plaza I, 345 Queen Street, Brisbane, Queensland, 23 4000 24 RYOWA II GPS PTY. LIMITED (ACN 063 780 058) of 25 Suite 2207, Riverside Centre, 123 Eagle Street, Brisbane, Queensland, 26 4000 27

 


 

s9 7 s9 Gladstone Power Station Agreement Amendment YKK GPS (QUEENSLAND) PTY LIMITED (ACN 062 905 1 275) of 127 Hyde Road, Yeronga, Brisbane, Queensland, 4104 2 (the "Participants" and each a "Participant"); 3 AND: 4 3. NRG GLADSTONE OPERATING SERVICES PTY LTD 5 (ACN 061 519 275) of Gladstone Power Station, Hanson Road, 6 Gladstone, Queensland, 4680 (the "Operator"). 7 RECITALS-- 8 A. By agreement dated 30 March 1994 (as amended by agreement dated 9 23 December 1994) between the State, the Participants and the 10 Operator made under section 3 of the Gladstone Power Station 11 Agreement Act 1993 the State provided certain undertakings and 12 assurances relating to the acquisition by the Participants and future 13 operation by the Participants and the Operator of the Gladstone Power 14 Station ("the State agreement"). 15 B. The Electricity Amendment Act (No. 2) 1997 amended the Electricity 16 Act 1994 to enable the establishment of an interim competitive 17 wholesale electricity market in Queensland to facilitate the Queensland 18 electricity industry's transition to the National Electricity Market 19 arrangements that are scheduled to commence in Queensland, New 20 South Wales, Victoria, the Australian Capital Territory and South 21 Australia, on 29 March 1998. Under the Electricity--NationalScheme 22 (Queensland) Act 1997 the National Electricity (Queensland) Law will 23 implement the regulatory arrangements for the National Electricity 24 Market. 25 C. Section 287A of the Electricity Act 1994 provides that the application 26 of that Act may be changed under the State agreement or a further 27 agreement under the Gladstone Power Station Agreement Act 1993. 28 D. Under section 5 of the Gladstone Power Station Agreement Act 1993 29 the State agreement may be amended by a further agreement between 30 the Minister responsible for the administration of that Act and the other 31 parties to the State agreement. 32

 


 

s9 8 s9 Gladstone Power Station Agreement Amendment E. The parties have entered into this further agreement made pursuant to 1 section 5 of the Gladstone Power Station Agreement Act 1993. 2 IT IS AGREED-- 3 PART I--PRELIMINARY 4 1. Definitions 5 (a) All words, terms and expressions which have a defined meaning 6 in the State agreement have the same respective meanings when 7 used in this agreement, unless and except as otherwise provided 8 in this agreement. 9 (b) In this agreement, unless the context otherwise requires or 10 indicates-- 11 "Effective Date" means the time immediately after the commencement of 12 provisions about the maintenance of security of supply to sensitive 13 loads in the Market Code approved under section 92F of the Electricity 14 Act. 15 2. Interpretation 16 Clause 2 of the State agreement is incorporated into this agreement as if 17 set out in full in this agreement except that the reference to "this 18 Agreement" in Clause 2 of the State agreement shall be a reference to "this 19 agreement". 20 3. Amendment of State agreement 21 This agreement is made under section 5 of the Agreement Act and 22 amends the State agreement. 23 4. Commencement 24 (a) Parts I and II of this agreement take effect on the date of this 25 agreement. 26 (b) Part III of this agreement takes effect on the Effective Date. 27

 


 

s9 9 s9 Gladstone Power Station Agreement Amendment 5. Agreement to have force of law 1 The parties acknowledge that under section 4 of the Agreement Act the 2 State agreement as amended by the provisions of this agreement has effect 3 as if it were part of the Agreement Act. 4 6. No Waiver 5 The entering into this agreement by a party does not constitute a waiver 6 of its rights and obligations under the State agreement which have accrued 7 prior to the date of this agreement. 8 PART II--AMENDMENTS 9 7. The State agreement is amended as follows-- 10 (a) Amendment of Clause 1 (Definitions) 11 In Clause 1-- 12 (i) after the definition of "Capacity Purchase Agreement" insert-- 13 ` "Code" means-- 14 (a) the Market Code under the Electricity Act until the 15 commencement of the National Electricity Code under the 16 National Electricity (Queensland) Law; and 17 (b) the Code under the National Electricity (Queensland) Law after its 18 commencement under the Electricity--National Scheme 19 (Queensland) Act 1997;'. 20 (ii) after the definition of "Queensland Railways" insert-- 21 ` "Queensland System Operator"-- 22 (a) has the meaning given in the Electricity Act until the 23 commencement of the National Electricity Code under the 24 National Electricity (Queensland) Law; and 25 (b) thereafter means the person from time to time appointed as 26 System Operator under the Code for Queensland.'. 27

 


 

s9 10 s9 Gladstone Power Station Agreement Amendment (iii) omit the definition of "system control" and insert-- 1 ` "system control" means-- 2 (a) scheduling and directing the output of the generators and other 3 sources of supply connected to the power system; or 4 (b) coordinating maintenance programs and schedules for generating 5 and transmission plant; or 6 (c) ensuring the integrity of the power system; 7 (d) controlling switching of transmission elements and access to 8 them for maintenance, inspection and testing; or 9 (e) controlling the switching of parts of supply networks relevant to 10 the integrity of the power system; or 11 (f) coordinating arrangements, and issuing directions, for the 12 reduction of demand by distribution entities or retail entities in 13 emergencies when available electricity is limited; or 14 (g) scheduling and directing the provision of ancillary services; or 15 (h) shedding or restoring customer load, 16 and any words or expressions used in this definition of "system 17 control" which have a defined meaning in the Electricity Act have the 18 same meaning where used in this definition of "system control".'; 19 and 20 (iv) omit the definition of "system control entity"and insert-- 21 ` "system control entity" means the Queensland System Operator.'. 22 (b) Deletion of Clauses 16B and 16F 23 Omit Clause 16B and omit Clause 16F. 24 (c) Amendment of Clause 16G 25 (i) Omit paragraph (a) of Clause 16G and insert-- 26 `(a) despite section 301 of the Electricity Act, the Minister for Energy 27 may not fix the prices that QTSC must charge for the electricity 28

 


 

s9 11 s9 Gladstone Power Station Agreement Amendment that it sells or the services that it provides under the 1 Interconnection and Power Pooling Agreement; and'. 2 (ii) In paragraph (b) of Clause 16G before `section 264' insert 3 `section 92N or'. 4 (d) Amendment of Clause 16H 5 Omit Clause 16H and insert-- 6 `16H. System Control 7 Subject to the other provisions of this agreement the Queensland System 8 Operator may not give, except in accordance with the Code, a direction 9 under section 92B of the Electricity Act about system control which would 10 prevent QTSC from complying with its obligations under Clause 7 of the 11 Interconnection and Power Pooling Agreement.'. 12 (e) Amendment of Clause 16I 13 Omit Clause 16I and insert-- 14 `16I. Removal of Immunity for Certain Breaches of Interconnection 15 and Power Pooling Agreement 16 (a) If as a result of a State Electricity Entity, the Queensland System 17 Operator or NEMMCO complying with-- 18 (i) a provision of the Code or the Queensland Grid Code (as 19 defined in the Electricity Act) about system control; 20 (ii) a condition about system control imposed under the 21 Electricity Act on the State Electricity Entity or the 22 Queensland System Operator; 23 (iii) a direction about system control from NEMMCO or the 24 Queensland System Operator; or 25 (iv) a direction about system control given under section 299 of 26 the Electricity Act, 27 QTSC is prevented or impaired from complying with any of its 28 obligations under the Interconnection and Power Pooling 29 Agreement QTSC shall not be entitled to claim that the obligation 30

 


 

s9 12 s9 Gladstone Power Station Agreement Amendment to comply with the Code or the direction is a lawful excuse for 1 any default by QTSC of the Interconnection and Power Pooling 2 Agreement that may arise from or be caused by compliance by 3 the State Electricity Entity, NEMMCO or the Queensland 4 System Operator with the Code or the direction. 5 (b) All words and expressions which have a defined meaning in the 6 Code have the same meanings where used in Clause 16I(a) 7 unless the context otherwise requires or indicates.'. 8 PART III--AMENDMENTS 9 8. The State agreement is amended as follows-- 10 Insertion of Clause 16J 11 After Clause 16I insert-- 12 `16J. Queensland Sensitive Load Schedule 13 (a) The State must-- 14 (i) place and retain the load of the Smelter on the schedule of 15 sensitive load under the Code for Queensland with priority 16 specified on the basis set out in Clauses 7.4(b)(iv) and (v) 17 and Clause 7.5 of the Interconnection and Power Pooling 18 Agreement; 19 (ii) specify under clause 4.3.5(c) of the Code that automatic 20 disconnection of the load of the Smelter under 21 clause 4.3.5(a) of the Code shall not occur until the power 22 system frequency falls to 47.0 Hz and, in accordance with its 23 obligations under clause 4.3.5(c) of the Code, replace the 24 load of the Smelter (or part thereof), which would otherwise 25 have been part of a block of interruptible load in an 26 under-frequency band specified in clause 4.3.5(b) of the 27 Code, in that band with an equivalent amount of interruptible 28 load nominated by other Market Customers in Queensland; 29

 


 

s9 13 s9 Gladstone Power Station Agreement Amendment (iii) use its best endeavours to procure NEMMCO to agree 1 under clause 4.3.5(c) of the Code to the power system 2 frequency of 47.0 Hz so nominated by the State for 3 automatic disconnection of the load of the Smelter; and 4 (iv) ensure that this schedule is provided to NEMMCO by the 5 date of commencement of the Code, and that all updates of it 6 are provided to NEMMCO. 7 (b) All words and expressions which have a defined meaning in the 8 Code have the same meanings where used in Clause 16J(a) 9 unless the context otherwise requires or indicates.'. 10 EXECUTED BY THE PARTIES AS AN AGREEMENT. 11 SIGNED by THE HONOURABLE DOUGLAS ) 12 SLACK, MINISTER FOR ECONOMIC ) 13 DEVELOPMENT AND TRADE OF THE ) 14 STATE OF QUEENSLAND, FOR AND ON ) 15 BEHALF OF THE CROWN IN RIGHT OF THE ) 16 STATE OF QUEENSLAND ) 17 in the presence of: 18 Witness 19 20 SIGNED for and on behalf of ) 21 GPS POWER PTY. LIMITED ) 22 (ACN 009 103 422) by ) 23 ) 24 its duly constituted attorney ) 25 in the presence of: 26 Witness 27

 


 

s9 14 s9 Gladstone Power Station Agreement Amendment SIGNED for and on behalf of ) 1 GPS ENERGY PTY LIMITED ) 2 (ACN 063 207 456) by ) 3 ) 4 its duly constituted attorney ) 5 in the presence of: 6 Witness 7 8 SIGNED for and on behalf of ) 9 SUNSHINE STATE POWER B.V. ) 10 (ARBN 062 295 425) by ) 11 ) 12 its duly constituted attorney ) 13 in the presence of: 14 Witness 15 16 SIGNED for and on behalf of ) 17 SUNSHINE STATE POWER (NO. 2) B.V. ) 18 (ARBN 063 382 829) by ) 19 ) 20 its duly constituted attorney ) 21 in the presence of: 22 Witness 23

 


 

s9 15 s9 Gladstone Power Station Agreement Amendment SIGNED for and on behalf of ) 1 SLMA. GPS PTY LTD ) 2 (ACN 063 779 028) by ) 3 ) 4 its duly constituted attorney ) 5 in the presence of: 6 Witness 7 8 SIGNED for and on behalf of ) 9 RYOWA II GPS PTY. LIMITED ) 10 (ACN 063 780 058) by ) 11 ) 12 its duly constituted attorney ) 13 in the presence of: 14 Witness 15 16 SIGNED for and on behalf of ) 17 YKK GPS (QUEENSLAND) PTY LIMITED ) 18 (ACN 062 905 275) by ) 19 ) 20 its duly constituted attorney ) 21 in the presence of: 22 Witness 23

 


 

s9 16 s9 Gladstone Power Station Agreement Amendment SIGNED for and on behalf of ) 1 NRG GLADSTONE OPERATING ) 2 SERVICES PTY LTD (ACN 061 519 275) by ) 3 ) 4 its duly constituted attorney ) 5 in the presence of: 6 Witness'. 7 © State of Queensland 1997

 


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