The big question facing the people of Collie is whether their coal will be chosen instead of gas to power a new 330 megawatt baseload power station, which the state-owned electricity utility Western Power wants commissioned by 2007.
Not helping the gas industry's cause is the long running legal battle between Epic Energy and State regulators over the transmission tariff Epic can charge customers on its $2.4 billion Dampier-to-Bunbury gas pipeline.
A new gas-fired baseload power project will require Epic to expand the capacity of its pipeline and the company is not prepared to do this while uncertainty regarding transmission tariffs threatens its commercial viability.
Another complicating factor for the procurement plan includes legislation, due to be introduced next month into State parliament that will pave the way for the disaggregation of Western Power into four separate utilities; and plans by AlintaGas to expand into the electricity market.
AlintaGas has argued its proposed co-generation joint venture with alumina giant Alcoa, which will see the gas utility supply additional electricity into the State's grid, will make the baseload power procurement process unnecessary.
