AGL Macquarie will spend $1.1 million on community and environmental rehabilitation projects in the Upper Hunter after a local creek was polluted with fly ash.
A hole in a fly ash transfer pipeline resulted in ash slurry flowing into the creek bed of Bayswater Creek in September 2019.
Despite AGL's attempts to stop the pollution, an estimated 1,440 cubic metres of fly ash was released.
The enforceable undertaking will see AGL Macquarie spend up to $600,000 on upgrades to the pipeline and contribute $500,000 towards local environmental projects, which are being determined.
AGL will also provide a training session to members of the Australian Energy Council Environment Working Group on the application of specialised testing to ash pipelines and the benefits to environmental performance from the review of their processes.
It will also pay the EPA's legal and investigative costs of $87,800.
AGL Macquarie has since amended its alarm management system to help identify any potential leaks in the future.
An AGL spokeswoman said the company had developed a number of initiatives designed to improve environmental performance at AGL Macquarie and within the energy industry.
"AGL takes our environmental obligations seriously and are committed to working with the NSW EPA to ensure that these initiatives are successfully implemented, and the subsequent environmental improvement outcomes are achieved."
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