Qld coal-fired generator plans for water shortages

Red faces all round: To add to the company’s woes, the $1.7 billion pipeline project – the centrepiece of the Government’s emergency water supply strategy – is behind schedule. Tarong insists there is only a low risk of it running out of water, despite its only major supplier, the purpose-built Boondooma Dam, falling to 19 per cent capacity. This follows a Beattie Government directive that Tarong stop taking some water from Lake Wivenhoe. A statement issued by the company on 23 November said it could reduce its generation "in a way, that won’t impact on security of supply or our customers”. “For example, output could be reduced when demand for electricity is low, such as overnight and at weekends," the statement said.

Tarong prepares to go bust: However, Tarong has also arranged for Queensland Treasury to set aside a $50 million "working capital facility" to help the company pay wages and other business costs if its Boondooma water supply fails. A Tarong spokesman said the agreement, struck last July, was a "prudent and normal course of action".

The Courier Mail, 24/11/2006, p.5

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