Electricity will play a major part in providing energy services in the 21st century. Ecologically Sustainable Development (ESD), that is accommodating the needs of the present without compromising the needs of future generations, will provide a focus for optimising the use of electrical energy. Environmental externalities may redefine the cost structure of electricity. Strong corporate environmental management will ensure that current environmental objectives are met and that future ones, identified by the ESD process and environmental externalities accounting, can be developed and implemented by receptive business managers. This paper addresses the current environmental issues of electricity production. It outlines a management strategy for the SECV becoming a community leader in protecting the environment. ESD is discussed in terms of using non-renewable resources wisely, extending their availability and putting in place mechanisms which ensure their ultimate substitution by renewable resources and conservation. The paper explores options for dealing with costing environmental externalities, particularly in relation to greenhouse emissions.