Alinta also announced the Tasmanian Government has shown its support for the company’s plans to develop a 200MW power station to provide electricity for Tasmania’s Aurora Energy in the state.

AGL will today reportedly begin trading as AGL Energy, under the ticker "AGK", and the company last night applied to the ASX for AGL to delist at the close of yesterday’s trade.

“As of today, the transaction implementation date, AGL Energy is a reality,” AAP quoted AGL chief executive Paul Anthony as saying yesterday.

Under the merger, Alinta will acquire AGL’s infrastructure business while AGL gained a 33% interest in Alinta’s WA retail and co-generation business.

Meanwhile, Alinta said the Tasmanian Government has shown its approval for Aurora Energy to enter into a conditional agreement with Alinta for the long-term supply of electricity.

If finalised, the agreement would allow Alinta to proceed with the development of a new $230 million gas-fired power station to be built near George Town, north Tasmania. Alinta said the power station would also feed electricity into the national grid.

“This is an exciting project for Tasmania, as it will provide a long-term, clean and efficient source of electricity for local communities,” Alinta chief executive Bob Browning said.

“The Alinta Tamara Power Station will also be a significant boost for the Tamar region, providing hundreds of new construction jobs and regular ongoing employment once operational.”

Pending various approvals and finalisation of contractual agreements, construction is scheduled to begin mid-2007, with the power station expected to be operational by the 2009 first quarter.