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									6 May 2008

ANALYST PRESENTATION – ASSET SITE TOUR

Please see the attached analyst presentation delivered today by Babcock
& Brown Power (ASX: BBP) management. Presentations were made by
the following:

           Dr Paul Simshauser – Chief Executive Officer
           Wolfgang Steffens – GM Power Projects
           Andrew Kremor – GM Energy Markets
           Victor Browner – Acting GM Alinta


ENDS

Further Information:
Paul Simshauser                               Fiona Osler
Chief Executive Officer                       Investor Relations
Babcock & Brown Power                         Babcock & Brown Power
Ph + 61 2 9229 1848                           Ph + 61 2 9216 1383



About Babcock & Brown Power
Babcock & Brown Power (ASX:BBP) is a power generation business, with assets
diversified by geographic location, fuel source, customers, contract types and
operating mode. Its aim is to grow returns to its securityholders through
optimisation of its existing power generation business and the addition of further
generation assets and associated businesses via a combination of new
construction and strategic acquisitions.

The portfolio has interests in 14 operating power stations representing over
4,000MW 1 of installed generation capacity and five power stations under
construction. BBP has interests in a number of other associated power assets
including the WA retail assets of AlintaAGL. Babcock & Brown has been
developing, operating and acquiring the generation portfolio over a period of 10
years.




1
    Some assets have minority shareholders.
 Portfolio Summary




For further information please visit our website: www.bbpower.com
BBP Business & Transition Overview



Paul Simshauser, CEO
6 May 2008
    BBP VISION


    ∆3L
     ∆   Represents our business model being an
         integrated business
                                                  Business Model


     3   Represents our position as “one of
         Australia’s Top 3 energy businesses”
                                                      Top 3



     L
         Represents our readiness to deal with
         sudden direction changes in the power    “Long” & ready
         industry and a strategy of remaining       for change
         “long” power generation


2
    BBP VALUES
    • Our values shape our organisational behaviour
    • We are an organisation who demonstrates:
        –     Integrity in our dealings with key stakeholders
        –     Teamwork
        –     Safety first
        –     Passion for our business
        –     CreAtivity and Innovation
        –     Respect for our people
        –     EXcellence in what we do
              IT SPARX




3
                                                       Chief Executive
                                                       Paul Simshauser
                           General Manager                                           Corporate
                             Integration                                            Strategy and
                           Tom Richardson                                             Services




                                  General                                                                      General
                                                           General                     Chief
          Chief                   Manager                                                                      Manager
                                                           Manager                   Financial
        Operating                 Energy                                                                        Power
                                                           Business                   Officer
         Officer                  Markets                                                                      Projects
                                                           Services
                                                                                      James
      Brian Green                 Andrew                                                                      Wolfgang
                                                         Julia Oakley                 Brown
                                  Kremor                                                                      Steffens

    • Asset                  • Portfolio               • Information             • Group reporting,       • Project
    management               strategy                  technology                planning and             management
                                                                                 budgeting
    • Technical              • Fuel and gas            • Human                                            • Contract
    standards                                          resources policy          • Tax and treasury       management
                             • Wholesale
                                                       and services              • Financial and
    • Plant operations       energy trading                                                               • Engineering
    and management                                     • OHS&E policy            management               support
                             • Retail energy                                     accounting
                                                       and services
                             sales, marketing                                                             • Project
                             and operations            • Contracts and           • Transaction            Planning
                                                       major purchasing          processing
                                                                                 • Governance
                                                                                 • Capital
                                                                                 Management



        Integration Project: (Programme Management, Commercial, Operations, Alinta sales, Energy Markets, Information
                                            Systems, HR, Change and Comms)


4            Corporate Support: (Corporate Secretary, Investor Relations, Legal Counsel, Strategic Risk Management)
FLINDERS



        BBP STRATEGY
        • INTEGRATION
        • HARVEST strategy
            –   Maximise the value and returns of the existing assets
        • GROWTH strategy
            –   Horizontal growth in our generation plant stock through:
                  - Acquisitions; and
                  - Brownfield developments
            –   Horizontal growth through development and expansion of retail capacity and capability
            –   Vertical growth shifting from a pure power generator to an integrated energy business




    5
    INTEGRATION
    • Restructure the organisation - position for growth
    • Successfully integrate Alinta assets and ‘standalone’ assets into BBP’s new structure
      without increasing the cost base
    • Establish and implement common structures, processes and systems and underpin
      this with a shared services function across the merged group
    • Reinforce core competencies and documented processes that serve as a ‘template’
      for future acquisitions




6
    INTEGRATION - STRATEGIC OBJECTIVES
    • Establish and communicate desired BBP culture
    • Roll out corporate branding
    • Establish a business, scaleable IT systems platform
    • Establish end-state company structure, including Business Services, Energy Markets
    • Develop and implement organisation structure, define appropriate job roles, and fill
      positions
    • Establish Business Services performance targets and cost allocation methodology
    • Establish governance and compliance framework, including management controls &
      disciplines




7
    INTEGRATION - STRATEGIC OBJECTIVES
    • Design common business processes to enable an agile organisation, that will:
        –     Deliver efficiencies;
        –     Support effective decision making; and
        –     Encourage flexibility in the workforce
    • Provide efficient information management for consistent, accurate and timely
      reporting
    • Rationalise the IT environment to maximise the return on IT investment
    • Leverage the purchasing power of BBP
    • Implement the standard asset management life-cycle in Ellipse
    • Establish a Continuous Improvement Process for further benefits realisation
    • Use of portfolio approach to drive greater income




8
      INTEGRATION CHALLENGES
• Multiple activities
      –    Work stream activities and deliverables requiring
           precise co-ordination, cross-communication and
           management
      –    Significant procedural and structural changes
      –    Changes in location, roles and reporting lines for
           several staff members and teams
• Geography
      –    Multiple locations and remoteness of some operations
• Communications
      –    Disparate locations make it difficult to coordinate in a
           timely and consistent manner
• Timing
      –    Undertaking the key activities in a short timeframe
• Continuous growth and pace
      –    As BBP continues with its growth plans



  9
     INTEGRATION ACHIEVEMENTS
     • Regional structure in place
     • Alinta assets integrated in Power Generation business unit
     • Energy Markets model defined – initial operation commenced
     • Power Projects established integrated process between B&B and BBP
     • Executive General Manager Business Services appointed
     • Ellipse Process Blueprint and Solution Design developed
     • Implementation of BBP corporate network across sites
     • On track to deliver $14m annualised savings




10
     DEBT REFINANCING
     • Well advanced on refinance of $3.1 billion debt
          –     $2.1 billion Alinta acquisition facilities mature August 2008
          –     $1 billion asset-level debt
                                                                                Pool 22%
     • BBP has selected a group of banks and due diligence and documentation is
       progressing in accordance with plan
     • Margins expected to be in line with recent infrastructure deals
     • Interest rate exposure: hedged 86%
     • Schedule is on track for close in 2Q CY08
     • Debt rating in line with expectations, to be formally confirmed at close of refinance




11
     CLIMATE CHANGE - AUSTRALIA
     • Australian government ratified the Kyoto Protocol in December 2007:
         –     Committed to reducing greenhouse emissions by 60% of 2000 levels by 2050
         –     Announced that 20% of electricity will come from renewable sources by 2020
     • Federal Government has commissioned Professor Ross Garnaut to review the
       impact of climate change on the Australian economy
         –     Draft Report due 30 June 2008; Final Report due 30 September 2008
         –     Central to the review will be a 2010 Emissions Trading Scheme (ETS)
     • Consultation and design of the ETS will take place over next 12 months
     • Federal Government has also commissioned Roger Wilkins to conduct a strategic
       review of the Government’s climate change policies, due in July 2008
     • Interim findings from the two reviews have shown contrasting thoughts on the issue
       of transitional arrangements for electricity generators




12
     BBP CARBON EMISSIONS


                         Carbon Intensity - (kg CO2/MWh)

      BBP Average                                                                        <800

      National Electricity Market (NEM)1 Average                                        ~1,000

      % Below NEM Average                                                                ~25%




 • BBP supports an ETS with grandfathered allocation of permits to existing generators
   to recompense for the economic loss of value
 • Allocation of permits may lead to BBP becoming a casual trader of emissions permits




 1The National Electricity Market (NEM) is a wholesale market for electricity supply in the ACT and the states of Queensland,
 New South Wales, Victoria, Tasmania and South Australia


13
     EMISSIONS TRADING
     • CO2 emissions from power generation accounts for ~35% of national total
     • These emissions come from <100 sites so the power industry is a key target
     • Power generators generally accept that emissions trading is an important piece of
       the policy mix noting key issues:
         –     Appropriate permit allocation policy;
         –     Reliability of supply side; and
         –     Supply side transition
     • Apparent windfall gains from EU Scheme have made Grandfathering extremely
       unpopular with policy markers, however:
         –     Supply-side in Australia is very different to EU; and
         –     Consequences of an inadequate permit allocation policy have rarely been dealt with in
               academic work




14
     THE HISTORY OF POWER PRICES
     FORWARD PRICE TRACE FOR CALENDAR YEAR BASE SWAPS: 2003-2006
     Forward curve history                                                                                                                                                              CAL 05                         CAL 06
          ($/MW h)
                                                                                                                                                                                        CAL 07                         CAL 08
       $50.00
                                                                                                                                                                                        CAL 09                         CAL 10



       $45.00
                                                                                  C alendar 2009
                                                       C alendar 2008            bas eload s w aps
                                                      bas eload s w aps                                                                            C alendar 2010
                          C alendar 2007                                                                                                          bas eload s w aps

       $40.00            bas eload s w aps




       $35.00




       $30.00
                                                            C alendar 2006
                                                           bas eload s w aps
                          C alendar 2005
                         bas eload s w aps
       $25.00




       $20.00
               3




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                                                                                                                       Tim e
15
                Source: Australian Financial Markets Association
     THE HISTORY OF POWER PRICES
     QUEENSLAND SPOT PRICE HISTORY / FORWARD CURVES
Electricity price
   ($/MWh)
                              Spot prices (historical)
                              Forward curve (March 2007)
  100
                              Forward curve (May 2007)                                           June '07                       96.73



   90                         Forward curve (June 2007)


   80
                                                                                             May '07'07
                                                                                              May                      $80.90




                                                                                                                                                  70.71
   70

                                                                                                                                        $64.14


   60

                                                                                                               52.14
                                                                                                                                                                   53.58

   50
                44.11                                                                                                                                                                47.10
                                                                                                                                                          $45.01
                              41.33

                                                         37.79
                                                                                            Mar '07
   40                                                                                                                                                                      $38.93
                                            35.34                                                                         41.275
                                                                                                                                             39.125
                                                                                                                                                              36.863            36.875
                                                                                    28.96
                                                                       28.18                          28.12
   30



   20



   10



     0
              99-00          00-01         01-02         02-03        03-04         04-05            05-06    06-07      07-08              Cal 08           Cal 09            Cal 10
                                                                                        Financial year


                    Source: NEMMCO (spot prices), Australian Financial Markets Association (forward prices)


  16
            31
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                                                                                                                                                                                                                                                               EQUILIBRIUM PRICES




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                                                                                  base load swaps: $35/MWh




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                        8
     BBP OUTLOOK
     • Power Generation
         –     Outlook for electricity prices remains robust
         –     FY08 performance expected to be ahead of budget
         –                                                                 Pool 22%
               Recent rain has helped replenish dam levels in Qld with Boondooma at 49% and
               Wivenhoe at 22% (Tarong constraint relieved) but forward prices remain strong
         –     Hydro reserves on the east coast, especially Tasmania are still critical
         –     Demand growth continues to be strong in Qld
     • Energy Markets
         –     BBP has adjusted the 08F budget to reflect softer demand leading into winter 08, no
               further deterioration in 2H08 is anticipated
     • Following completion of the refinance and taking into account operating performance
       for the remainder of summer, BBP will update the market on cashflow available for
       distribution in 09F
     • Well positioned for continued growth




18
QUESTIONS
BBP Power Projects


Wolfgang Steffens, GM Power Projects
6 May 2008
     WOLFGANG STEFFENS - BACKGROUND
     • International Experience in Development & Management of large Power Plant
       Projects
     • Range from $300m - $1.5bn / 240MW – 1,600MW
     • Areas: North America, South East Asia, Middle East, Australia & Europe
     • 18 years experience in Power Industry
         –     Commissioning
         –     Manager R&D
         –     Business Re-engineering
         –     Sales & Business Development
         –     Project Director
         –     General Manager Project Execution




21
     STRUCTURE



                                       General Manager
                                        Power Projects




       Project     Development                                               Planning &
                                 Project Cost    Permits and
      Directors/    & Contract                                 Engineering   Document
                                   Control        Approvals
      Managers     Management                                                  Control




22
     ROLE

     • Project Management, Design, Construction & Commissioning of new power plants
     • Major upgrades to existing power plants
     • Engineering & Commercial Management support across the BBP business
     • Development of new power projects in co-operation with the BBP Business Groups
       and B&B




23
     TRIANGLE OF RISK CONTROL

             • High fix Costs
               [Owner pays high Risk
               premium upfront]
             • Risk Obligations
               to Contractor




        • Lower fix Costs
        • Risk Obligations
          to Owner




               Power Projects provides BPP with a higher flexibility
                       to move within the “Risk Triangle”
24
     CURRENT ACTIVITIES
     Projects in Execution
     • Tamar Valley TAS, 201MW CCGT and 55MW OCGT
     • Uranquinty NSW, 640MW OCGT
     • Newman Expansion WA, 37MW OCGT
     • Wagerup WA, 380MW OCGT in Commercial Operation since Nov 2007




25
     WAGERUP STAGE 1




26
     WAGERUP STAGE 1
     • Wagerup Stage 1, WA in commercial operation
     • 380MW (@41 Deg C) Open Cycle Power Plant
     • 2 x Alstom GT13E2MXL dual fuel with power augmentation
     • Commissioning Finalised Nov 2007




27
     TAMAR VALLEY PROJECT




28
     TAMAR VALLEY PROJECT




29
     TAMAR VALLEY POWER STATION
     • Tamar Valley Power Station TAS
     • 201MW Combined Cycle plus a new 55MW Open Cycle unit
     • Supplier of CC is Mitsubishi with a 140MW 701D GT & 70MW ST
     • Supplier of OCGT is Rolls Royce with a 55MW Trent 60 GT
     • DTEA Approval OCGT & CC achieved Oct 2007
     • Commercial Operation OCGT expected March 2009
     • Commercial Operation CC expected July 2009




30
     NEWMAN EXPANSION




              Geotech sampling on site



31
     NEWMAN
     • Newman Expansion, WA
     • 37MW OCGT unit
     • Supplier is Rolls Royce with a 37MW Trent 60 GT
     • Start Engineering Jan 2008
     • Start Site Works Jun 2008
     • Environmental Licence Approval achieved in Mar 2008
     • Commercial Operation OCGT expected Mar 2009




32
     URANQUINTY POWER STATION




33
     URANQUINTY POWER STATION
     • 4 x 160MW OCGT with Siemens V94.2 Gas Turbine Units
     • 14 km from Wagga Wagga, NSW, Australia
     • Unit completion dates expected from August to November 2008




34
     GOALS & OBJECTIVES
     • Deliver projects on time, on budget and to specification without compromising Safety
       & Quality
     • Add value to the development of new prospects and to the growth of BBP
     • Ongoing improvement of Technical Concepts to maximise plant performance and
       minimise capex & construction period
     • Ongoing improvement of management of construction risk from development
       through to operation




35
     ACHIEVEMENTS
     • Completion of Wagerup OCGT
     • Integrated Business Process between B&B and BBP
          –    Gate Reviews for Projects in Development
          –    Development Committee with B&B and BBP established
     • Integration of Alinta Energy into BBP
          –    Projects are managed and delivered without disruption due to transition
     • Managing construction of the Uranquinty project




36
     KEY ISSUES & CHALLENGES
     • Properly resourced & experienced teams
     • Secure and retain highly skilled core resources to deliver the projects
     • Enhanced Risk Management during project development
     • Procurement Strategy
          –     Changing from Single Project Approach to Portfolio Approach
          –     Standardisation of BBP Power Plants
     • Construction & Supplier Market
          –     It’s a seller’s market
          –     Access to Equipment
          –     Construction contractors don’t have sufficient qualified resources




37
QUESTIONS
BBP Energy Markets


Andrew Kremor, GM Energy Markets
6 May 2008
     ANDREW KREMOR - BACKGROUND
     • CEO ENERGEX – Distribution business SE QLD, BRW Top 100
     • CEO ENERGEX RETAIL – 1.1 million electricity & gas customers
     • Chairman Allgas – Gas distribution network Brisbane
     • Chairman Sparq – Joint Venture IT company between ENERGEX & Ergon
     • GM Marketing & Trading Tarong Energy – QLD based coal and pumped storage
       hydro generation, Starfish Hill Windfarm SA
     • CEO Northern Electricity Retail Corporation – QLD GOC 250,000 customers
     • Manager ETSA Power – 700,000 retail customers SA
     • 25 years industry experience




40
ENERGY MARKETS CAPABILITY

                                              Generation &   • Portfolio approach across electricity and
                                              Wholesale        gas
                                              Trading        • Common trading policies, processes &
                                                               systems
                                                             • Define new projects to fit BBP strategy
                                                               and market requirements
                                              Fuel           • Strategic procurement and management
                                                               of fuel, transportation and storage
                                                             • Portfolio approach to optimise short and
                                                               long term positioning
           Generation &                       Retail         • Grow retail position to support current
                                                               generation and new generation
          Wholesale Trading                                    development
                                                             • Develop retail capabilities, processes and
                                                               systems to support growth
               Portfolio                      Portfolio      • Capability to support short and long term
                                              Management       portfolio management – skills, systems,
              Management                                       analytical tools – to optimise return
                                                             • Risk management capabilities across
                                                               portfolio – skills, framework, systems
     Retail                Fuel               Emissions      • Strategic assessment of emissions
                                                               impacts/opportunities
                                                             • Influence development of ETS



                                  Emissions

41
        THREE STRATEGIC HORIZONS
                                                                                  III


                                                           II
                                                                          Options over:
         Business Growth




                                                                          • Low emissions technologies
           and Options




                                    I                                     • Energy Efficiency
                                                  VI Transition:          • Fuel Sources:
                                                  • New generation             • Coal
                                                  VI Transition:
                                                  • Gas                        • Gas
                                                  • Acquisitions
                                                    Gas / Coal                 • Renewables
                           Maximise the value                             • Pipelines and Transmission
                                                  • Retail (Elect./Gas)
                                                    New generation
                               and returns of                             • Emissions
                              existing assets.    • Emissions trading
                                                    Acquisitions
                                                  • Spark (Elect./Gas)
                                                    Retail Spread         • Australia & Internationally
                           Establish the Energy
                             Markets Operating
                                   Model

                                Integrate &
Management                        Harvest             Horizontal
  Focus                                               & Vertical          Position/Emerging Issues
                                                       Growth
   42
ENERGY MARKETS STRUCTURE
                                                          GM Energy
   CFO
                                                           Markets




  Risk &             Commercial          Portfolio                     Retail   Wholesale
                                                            Fuel/Gas                          AlintaAGL
Compliance            (Finance)         Positioning                    Energy    Energy



         Governance                                                                         Other Regions/
                                                                                             acquisitions




       Features
          Enables value to be optimised across the value chain
          Clear accountability for energy gross margin and energy
          risk management
          Focused capabilities in the key functional areas while
          enabling portfolio positioning
          Proper risk structure and segregation
          Scalable for future developments and acquisitions


  43
MANAGE INTERFACES


                                          CORPORATE



                                              Define/Deliver
             POWER PROJECTS                     required               POWER GENERATION
                                              performance,
                                             “Independent”
                                             Risk Oversight
                                                               Fuel Supply (Gas)
B&B                                                                                     Plant Availability
       Identification of generation                        Operational Needs       Generated Output to be sold
                 projects                                                             by Energy Markets to
         Prioritisation based on                                                         optimise return
           strategy alignment
      Inputs to project development      ENERGY MARKETS


                                      Define Services      Service
                                         Required          Delivery


                                      BUSINESS SERVICES

44
     CHANGES REQUIRED TO SUPPORT MODEL
     Element                                         End-State
     Structure        • Organisation structure designed to perform in the short term
                        while ensuring that we position for the future
                      • Governance structure to ensure prudent control of business
                        activities
     People           • Focussed on results, live BBP’s values
                      • Skills, knowledge and experience matched to the energy value
                        chain

     Accountability   • Energy Gross Margin (= Revenue – Fuel Cost +/- emissions)
                      • Alinta Sales
                      • Strategic positioning to address risks and provide options for
                        growth
     Processes        • Key end-to-end processes
                           – Strategic risk management
                           – Portfolio optimisation
                           – Transactional (wholesale, retail, fuel supply, emissions)
                           – Governance, commercial decision making and reporting
     Systems          • Evolve to align with the business processes
                      • Based on single data platform
45                    • Facilitates portfolio decision making
     KEY ISSUES & CHALLENGES
     • Developing system capability and analytical tools to support Energy Markets
       operations
     • Developing a culture that supports the achievement of business outcomes
     • Extract operational synergies
     • Extract portfolio benefits across gas and electricity positions
     • Position for future ETS and retail growth
     • Strengthen and continue to secure competitive gas supplies
     • Ensure prudent risk management




46
QUESTIONS
BBP Alinta


Victor Browner, Acting GM Alinta
6 May 2008
     VICTOR BROWNER - BACKGROUND
     • Over 15 years experience in finance and energy in Australia, USA and UK
         –     power plant development
         –     energy trading
         –     energy operations
         –     energy sales and origination
         –     risk management and structuring
     • Joined Alinta in 2003
         –     Currently Acting General Manager Alinta
         –     Previous roles all within Retail, largely dealing with portfolio management, business
               development, strategy, operations and regulatory affairs
     • Previous Energy Experience
         –     Automated Power Exchange (power scheduling and settlements)
         –     Enron (trading, development, origination and structuring)




49
     ALINTA OVERVIEW
     • Largest retailer of gas in Western Australia serving approximately 570,000
       customers
     • Supplying electricity to over 1,700 industrial and commercial customers
     • Asset portfolio includes:
          – 2 x 140MW gas fired power plants at Alcoa’s Pinjarra alumina refinery
          – 380MW dual fuel peaking power plant located at Alcoa’s Wagerup alumina
          refinery
     • Profit share arrangement with Wesfarmers for the production and sale of LPG




50
     ALINTA OVERVIEW (CONT…)
     GAS
     • Gas sales in excess of 70 PJ / year
     • Alinta has most of its supply contracted to 2015 and beyond


     WLPG
     •   ~ 170 KT / year of LPG production from the WLPG plant

     ELECTRICITY
     • Bilateral electricity sales ~ 2.1TWh / year
     • STEM sales ~ 0.4 TWh / year
     • > 95% of electricity supply from own generation and long term PPAs


     OTHER
     • Staff - 98 FTE employees

51
ENERGY MARKETS STRUCTURE
                                                          GM Energy
   CFO
                                                           Markets




  Risk &             Commercial          Portfolio                     Retail   Wholesale
                                                            Fuel/Gas                          AlintaAGL
Compliance            (Finance)         Positioning                    Energy    Energy



         Governance                                                                         Other Regions/
                                                                                             acquisitions




       Features
          Enables value to be optimised across the value chain
          Clear accountability for energy gross margin and energy
          risk management
          Focused capabilities in the key functional areas while
          enabling portfolio positioning
          Proper risk structure and segregation
          Scalable for future developments and acquisitions


  52
     STRUCTURE
                                              GM Alinta
                                         (formerly AlintaAGL)




                                      Commercial       Regulatory
         Wholesale           Retail                                         Legal    HR/Admin
                                       Services          Affairs




     FUNCTIONAL COMPONENTS OF THE BUSINESS:

     •   Wholesale                                 •    Retail
            –        Commercial                           –         Commercial
            –        Operations                           –         Operations
     •   Commercial Services                       •    Regulatory Affairs & Legal
     •   Analytics                                 •    Administration



53
     OPPORTUNITIES & CHALLENGES
     CHALLENGES
     • Maintaining competitive gas supplies over the medium-long term
     • WA gas and electricity market / tariff reviews
     • Manage the transition and integration into BBP
     • Manage the legislative changes and liability arising in a carbon constrained market
     • Prepare for full retail contestability in the WA market for gas and electricity
     • Continue to attract, retain and develop the best staff

     OPPORTUNITIES
     • High demand for energy in growing WA economy
          –     Underwrite the development of new power projects and upstream gas supply

     • Large customer base with well established brand
          –     Related products / services

     • Alinta’s generation portfolio is well positioned from a renewable and carbon intensity
       perspective
54
     OUTLOOK
     • Electricity
          –     Outlook for electricity prices in Western Australia improving
          –     Demand growth continues to be strong in Western Australia but “lumpy”
          –     Carbon to play a more significant role in the market            Pool 22%

     • Gas
          –     Marginal Domestic gas prices have increased over last 12 months and market supplies
                likely to be tight to 2010/11
          –     Gas retailers will need to pass higher supply costs through to end use customers
     • WLPG
          –     High LPG levels coupled with high LPG prices have seen WLPG perform strongly
          –     Higher domestic gas prices will erode contribution in the absence of higher LPG prices




55
QUESTIONS
      DISCLAIMER
This publication is issued by Babcock & Brown Power Limited (ACN 116 665 608) (“BBPL”) and Babcock & Brown Power Services Limited (ACN 118 165
156, AFSL 299943) as responsible entity of the Babcock & Brown Power Trust (ARSN 122 375 562) (collectively “BBP”).

BBP and its manager, Babcock & Brown Power Management Pty Ltd (ACN 122 225 334) (“BBPM”) and their respective related entities, directors, officers
and employees (collectively “BBP Entities”) do not accept, and expressly disclaim, any liability whatsoever (including for negligence) for any loss
howsoever arising from any use of this publication or its contents. This publication is not intended to constitute legal, tax or accounting advice or opinion.
No representation or warranty, express or implied, is made as to the accuracy, completeness or thoroughness of the content of such information. The
recipient should consult with their own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should
conduct their own due diligence and other enquiries in relation to such information.

The information in this publication has not been independently verified by the BBP Entities. The BBP Entities disclaim any responsibility for any errors or
omissions in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or
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the repayment of capital or a particular rate of return on BBP stapled securities.

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including personal financial product advice, or an offer, invitation or recommendation in respect of securities, by BBPL or any other BBP Entities. In
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the prior written consent of BBP.

This publication does not constitute an offer of securities in the United States or any other jurisdiction, and the securities referred to in this publication have
not been and will not be registered under the United States Securities Act of 1933, as amended. Securities may not be offered or sold in the United States,
or to or for the account or benefit of U.S. persons, unless they are registered under the U.S. Securities Act or exempt from registration.


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