Notice of Exemption Alpine Energy Limited The commission, pursuant to section 81, exempts Alpine Energy Limited from the application of: (a) section 17 of the Electricity Industry Reform Act 1998, in relation to Alpine Energy Limited's current involvement (via its subsidiary company Timaru Electricity Limited), and interest in Opuha Dam Limited and in the Opuha Dam Partnership; (b) clauses 2 (7), 2 (8) and 2 (9) of Schedule 1 of the Electricity Industry Reform Act 1998, in relation to the Management Services Agreement between Opuha Dam Limited and Alpine Energy Limited; and (c) clauses 2 (12) and 2 (13) of Schedule 1 of the Electricity Industry Reform Act 1998, in relation to transactions entered into between Alpine Energy Limited Opuha Dam Limited and between Alpine Energy Limited and the Opuha Dam Partnership. The exemption is subject to the following terms and conditions: (1) that Opuha Dam Limited operate its hydro electric generator at a nameplate capacity of 7.5MW or less; (2) that neither Alpine Energy Limited, Opuha Dam Limited, nor the Opuha Dam Partnership undertake further generating activities at the Opuha Dam or elsewhere; (3) that Alpine Energy Limited's equity and return rights in Opuha Dam Limited not exceed 50%; (4) that Alpine Energy Limited shall not at any time: hold more than 50% of the partnership units of the Opuha Dam Partnership; hold in its own right, or exercise in its own right, or as proxy, or as attorney, or in any other manner, more than 50% of the voting rights in the Opuha Dam Partnership; hold or receive more than 50% of the equity or return rights in the Opuha Dam Partnership. (5) that all terms and conditions of the Resource Management Act consents, currently held by Opuha Dam Limited, concerning the use, flow, discharge, damming, or otherwise, of water remain in full force and effect and are not altered in any way that would change the basis of this exemption; (6) that, as part of its related companies disclosure in its annual report, Alpine Energy Limited identify the total number and value of transactions entered into between itself and Opuha Dam Limited and between itself and the Opuha Dam Partnership, and maintains a schedule specifying the nature and import of these transactions which is to be made available to the Commerce Commission on request; and (7) that Alpine Energy Limited comply with section 25 of the Electricity Industry Reform Act 1998 (arms length rules), subject to the limited exemption specified in (b) and (c) above, as if it is exempt from complying with the ownership separation rules by reason of any of sections 28 to 35. The exemption takes effect from the date of publication of this notice in the New Zealand Gazette.