The proposal by Actew, now Actew-AGL, to operate a gas-fired generator was first floated publicly in August 1995.
Actew's then chief executive, Mike Sargent, said the utility would decide whether to build its own generator in about six months. A generator could have been operating within 18 months of this decision and would have been capable of producing about 10 per cent of the ACT's winter power needs.
In March 1996, despite an oversupply of generators in Australia, Dr Sargent said that, with an investment of $150million, the ACT could generate electricity for about 30 per cent less than some major coal-fired power stations and could reduce the cost of electricity to ACT customers by about 10 per cent.
In November 1996, a $10million agreement for the development phase of the power station was signed by Actew, West Coast Energy Australia and BHP Power.
Over the next two years, planning for the power station was to also include negotiations for the contracts for the purchase of gas for the generator. The aim was to have the generator operating by 2000.
By December 1999, after the Carnell Liberal government had failed to sell Actew, its joint venture with AGL was on the table. AGL managing director Len Bleasel included in those negotiations that AGL was keen to establish a gas-fired power station in Canberra.
On February 29, 2000, Mr Bleasel advised the Australian Stock Exchange of a series of regional development initiatives planned for the ACT, if the proposed joint venture proceeded. The initiatives included the development, management and operation of a 90MW gas-fired power generation plant in the ACT, the development of an ACT call centre, and the establishment of the national headquarters of an AGL infrastructure management and services business in the ACT.
About 12 months later, the proposal was for a 70MW power station, with two 35MW units. Another 35MW unit could be added if required. There were assurances noise from the type of generator proposed would be contained within about 100m of the site. Queanbeyan City Council was assured it would not be seen or heard from its existing or proposed residential developments.
ActewAGL chief executive John Mackay said the generator would be about the size of two small houses.
A few weeks later, then planning minister Simon Corbell decided not to require an environmental impact statement on the generator. Planning and Land Management, now ACT Planning and Land Authority, required Environment Australia to be consulted to ensure the protection of the nationally endangered plant species, the hoary sunray.
The project was dormant until last year when some electricity prices increased by about 20 per cent.
Mr Mackay met staff from the ACT Planning and Land Authority on May 2 to discuss leasing land at Hume for a generator.By October, the future of the generator was linked to a proposed $1billion data centre. The ACT Government offered ActewAGL the direct sale of 21ha of land, opposite Mugga Lane tip, 600m west of the Monaro Highway, but not in the Tralee Street area.
Putting a power station on the new site was strongly opposed, particularly by residents of Macarthur and Fadden. The size of the proposed generator has been reduced, but the project's future is not yet assured.
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