The second stage of Hydro Tasmania's redevelopment of the Lake Margaret scheme involved:
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The construction of a two- kilometre woodstave pipeline to carry water from the upper station to the top of the second penstock.
The construction of a new fibreglass penstock, sending the water 220 metres down at a 38 degree slope to the lower station.
The preservation of the original penstock.
The extension of the lower station to house a brand new generator.
The preservation of the original generator.
There are also plans for a viewing platform, to include the lower station in long term plans to turn the Lake Margaret area into a tourist attraction.