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ERGON ENERGY TO EXAMINE COMMUNITY SUGGESTION FOR ALTERNATIVE

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					      ERGON ENERGY TO EXAMINE COMMUNITY
     SUGGESTION FOR ALTERNATIVE SUBSTATION
                     SITES

9 August 2007


Ergon Energy will investigate suggested alternative sites for a new substation in the
Belgian Gardens area and has not ruled out its proposed Fry Street location.

Following on-going consultation with members of the Belgian Gardens community and
Townsville City Council representatives, Ergon Energy will examine other site options as
suggested by the community, to locate its proposed $20 million substation.

General Manager Northern Operations Paul Ryan said, ”Ergon Energy remains committed to
the need for a substation in the Belgian Gardens area to meet the demand for power. The
community has identified some questions about the proposed Fry Street site and Ergon Energy
has listened.

“The community has a clear message for a desire for Ergon Energy to examine alternative sites
in the area and we are undertaking that process now,’ he said.

Sites to be investigated include the community’s suggested site across from Mundy Creek, land
near the Cleveland Youth Detention Centre and undeveloped land at Garbutt and Rowes Bay.

Mr Ryan said the option remained for Ergon Energy to build its substation at the
proposed Fry Street location.

“However Ergon Energy must be responsive to community concerns and we may need
to amend our original proposal, “he said .

In examining other sites, Ergon Energy will consider engineering, technical,
environmental, community and cost issues in the investigation process he said.

“Building a new substation is not an option, it is a necessity to meet the strong forecast
growth in the demand for power from the community. We have to make sure that we
develop a facility that not only performs its function in supplying power but also is
compatible with the surrounding environment.”

When constructed the substation would eventually supply approximately 5,000
residential and commercials customers at Belgian Gardens, Pallarenda, Rowes Bay,
Castle Hill, parts of North Ward and Garbutt and possibly Magnetic Island in the future.

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                             Ergon Energy Corporation Limited ABN 50 087 646 062
                             Ergon Energy Queensland Pty Ltd ABN 11 121 177 802
                                                                                                (07/99)
The substation would take up load from existing substations at Garbutt and Neil Smith
(Townsville CBD), freeing up their capacity to cater for the ongoing growth across the
city and suburbs.

Demand for power in the Belgian Gardens area has been growing at about 4% a year over the
last 6 years and is forecast to continue at 4%per annum into the future.

Mr Ryan said Ergon Energy will communicate its plans for the proposed substation and invite
community input as the project develops.

“We hope to be in a position to meet the community in about four weeks to explain
thoroughly the substation proposal. In the mean time we will undertake an information
program both providing information to the community and listening to their issues,” he
said.




ENDS
For more information contact Corporate Communications Manager John Fowler on
47276272 or 0417283713




                                        Ergon Energy Corporation Limited ABN 50 087 646 062
                                        Ergon Energy Queensland Pty Ltd ABN 11 121 177 802

				
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