When Western Power formally split into four separate businesses on April 1, it marked the end of a long-established reform plan by the state government.
When Western Power formally split into four separate businesses on April 1, it marked the end of a long-established reform plan by the state government.
And working feverishly right up to the deadline were teams of lawyers, seeking to ensure that the four successor bodies would have appropriate powers and be able to function properly.
Blake Dawson Waldron partner Jon Carson led a team that advised the state government over the 12 months leading up to disaggregation.
However, Blakes certainly wasn’t the only law firm benefiting from energy reforms in Western Australia.
Allens Arthur Robinson, Mallesons Stephen Jaques and Jackson McDonald are among the firms picking up work in the sector, as discussed below.
Blakes has been closely involved in energy reform for several years, playing a key role in drafting legislation for the state government.
It completed a wide range of tasks during the past 12 months, including a due diligence investigation of the assets, contracts and liabilities of Western Power prior to the split.
It drafted contracts to cover about 250 inter-entity agreements, which dealt with matters such as shared IT systems, data programs and licences.
Mr Carson said his team had to create easements to deal with parcels of land where transmission lines (owned by the new Western Power) link up with power stations (owned by Verve Energy).
Other tasks included rewriting insurance contracts, drafting a 100-page submission to the Australian Competition and Consumer Commission and updating lending arrangements with the WA Treasury Corporation.
As well as working on energy reform, Mr Carson’s team has been working on the roll-out of co-generation power stations that Alinta is building at Alcoa’s alumina refineries.
Allens’ major projects have included working with the new owners of the Dampier to Bunbury natural gas pipeline.
It advised the new owners – a consortium comprising listed investment trust DUET, Alinta and Alcoa, and known as Dampier Bunbury Pipeline – during the bidding phase in 2004.
It has since worked with DBP on a range of matters, including the $1.9 billion expansion of the pipeline and the development of access arrangement under the national gas access code.
Allens has also advised Rick Stowe’s The Griffin Group on its contract with Mitsui & Co for the design, construction and commissioning of the $400 million Bluewaters coal-fired power station near Collie.
Construction commenced last month on Bluewaters, which will generate 208 megawatts of base load power.
Mallesons’ big assignments last year included advising Western Power (prior to its break-up) on the procurement of up to 330 megawatts of base load generation capacity.
This included entering into a long-term electricity supply agreement with the successful bidder, NewGen Power, for a new power station at Kwinana.
The Mallesons team, led by former partner Robert Cole and current partner David Perks, developed a process that complied with the relevant legislation while recognising the risks faced by NewGen in the newly deregulated market.
It also worked with Western Power to develop an innovative electricity trading contract designed to operate in the new wholesale market.
Jackson McDonald has a long involvement in the energy sector, particularly in regulatory reform and the establishment of the wholesale market, and chief executive John McLean said the entry of new private sector participants provided further opportunities.
“The energy sector has been an area of particular growth for the past four to five years and we see that continuing,” Mr McLean said.
