Notice of Exemption Alliant International New Zealand Limited and Utility Investments Limited The commission, pursuant to section 81 of the Electricity Industry Reform Act 1998, exempts Alliant International New Zealand Limited and Utility Investments Limited from the application of section 35 (1) (e) of that Act in relation to a prohibited cross-involvements in an electricity lines business, comprising the electricity distribution network owned and operated by Powerco Limited, and an electricity supply business owned and operated by TrustPower Limited. The exemption is subject to the following terms and conditions: (a) Alliant International New Zealand Limited and Utility Investments Limited will continue to use all reasonable endeavours to cease their involvements in Powerco Limited by procuring the prompt sale of sufficient of their shares in Powerco Limited so as to become not involved in that company in terms of the Electricity Industry Reform Act 1998. (b) During the period of the exemption, Alliant International New Zealand Limited and Utility Investments Limited will maintain an arms length relationship with Powerco Limited. Maintaining an arms length relationship means complying with the arms length rules defined in Schedule 1 of the Electricity Industry Reform Act 1998. (c) Alliant International New Zealand Limited and Utility Investments Limited will not exercise any right they may have to promote or veto the appointment of any directors of Powerco Limited. (d) The exemption expires at midnight on 30 June 2000 unless any variation or earlier revocation in terms of section 81 (5) occurs. (e) Alliant International New Zealand Limited and Utility Investments Limited will notify the commission 2 weeks in advance of additional involvement in any electricity lines or supply business, as defined in the Electricity Industry Reform Act 1998, which provides either company on its own, or together with any associate, with an additional 0.5% of the assets, control rights or equity return rights of the electricity business. (f) Alliant International New Zealand Limited and Utility Investments Limited will provide the commission with monthly written reports beginning 1 month after the date of this decision on the progress they are making to achieve compliance with the Electricity Industry Reform Act 1998. The commission may vary or revoke this exemption in accordance with section 81 (5) of the Electricity Industry Reform Act 1998. The exemption takes effect from the date of publication of this notice in the New Zealand Gazette.