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$100 MILLION INVESTMENT - MUJA POWER STATION

Release Date: 28 February 2006

State-of-the-art digital control systems to be installed at Muja Power station will be computer based and increase the level of automation of the station, bringing it in line with the best in the world.

The new systems are part of a two-stage $100 million program to prepare Muja Power Station for the new competitive energy market.

Verve Energy CEO John Lillywhite said this investment was a commitment by Verve Energy to the long-term future of the coal-fired power station, the coal mining industry and Collie.

He said it comes after reaching a new agreement with Wesfarmers Premier Coal to supply Verve Energy’s coal requirements until 2030.

The two-stage $100 million program involves the uprating next year of Muja Stage D to increase its capacity by 54MW to a total of 454MW; and the replacement of the control and instrumentation systems in Stages C and D in 2007 and 2008. 

“The new control equipment would be digital and assist with the efficiency of the four units by fine-tuning their operation,” said Mr Lillywhite.

“Muja Power Station will continue to be the backbone of our portfolio of coal-fired generation units for many years to come.”

Mr Lillywhite said the extra investment would help Verve Energy not only compete in the new energy market and enable it to maintain its share of the market, but ensure the coal-fired plant has a long useful life.

The installation will be carried out during routine overhaul and maintenance shutdowns and will not affect the quality or reliability of power supplies.

Any queries from the media are directed to Verve Energy's Corporate Relations branch.

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