Victoria's energy minister says she only heard about the Snowy Hydro expansion on the radio, but the premier is welcoming the news if it means the prime minister will stop "lecturing".
The expansion will use cheap renewable energy to pump water back through turbines in a bid to secure power supply for the eastern seaboard.
Premier Daniel Andrews says the expansion could mean jobs for Victorians and his government spoke with the company on Thursday.
"Hopefully (Prime Minister Malcolm Turnbull) has stopped the lecturing and now he's going to start acting," Mr Andrews told reporters.
"Hopefully as well he can bring himself to admit the national energy market is not working for customers, is not working for the people it's designed to serve."
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Earlier on Thursday, Energy Minister Lily D'Ambrosio told ABC radio there was no warning from the federal government that the announcement was coming.
"No conversations whatsoever," she told Radio National.
"The news is what we heard on the radio frankly. And what we woke up to this morning."
