Pursuant to Regulation 194 of the Electricity Governance Regulations and Rules 2003 ("EGRs"), this Exemption Notice is issued by the Electricity Commission, formally constituted as the Electricity Governance Board ("the Commission"), in favour of Todd Energy Limited ("Todd Energy") and King Country Energy Limited ("KC Energy"). This exemption is being granted under urgency in reliance on Regulation 194 (4).
Subject to any terms and conditions imposed upon Todd Energy and KC Energy as noted below, the Commission hereby grants Todd Energy and KC Energy an exemption from the requirement to comply with the following Electricity Governance Rule:
1. Rule 4.9 of section III of part G (dispatch instructions).
Exemption Notice to Appear in the New Zealand Gazette
Regulation 194 (2) requires that an exemption, and the Commission's reasons for granting it, must be notified in the
New Zealand Gazette as soon as practicable after being granted. Accordingly, the exemption the subject of this Exemption Notice and the Commission's reasons for granting it, shall be notified in the New Zealand Gazette on 26 February 2004.
Terms and Conditions of Grant of Exemption
Pursuant to Regulation 194 (1), the Commission may, in its discretion and upon the terms and conditions (if any) that it thinks fit, grant an exemption. The Commission is also required to state an expiry date pursuant to Regulation 194 (5) (b). In respect of the exemption contained within this Exemption Notice the Commission imposes the following terms and conditions:
1. The exemption shall expire on 1 June 2004.
2. The exemption is only in relation to dispatch instructions for Mangahao power station at the MHO0331 node.
Board's Reasons for Granting the Exemption Contained in this Notice
The reasons for granting the exemption are as follows:
(a) Todd and KC Energy have been in discussions with the system operator about a means by which they can receive and relay dispatch instructions. The discussions have almost been completed but as at 1 March, Todd Energy and KC Energy will be unable to comply with the rule requiring them to have in place means for receiving and relaying electronic dispatch instructions. Facilities are likely to be in place by 1 June 2004.
(b) The Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.
(c) The Commission considers it is practical to grant the exemption to allow Todd Energy and KC Energy sufficient time to implement facilities which comply with the rule.
Date Upon Which the Exemption Becomes Effective
Pursuant to Regulation 195, the date upon which the exemption contained in this Exemption Notice takes effect, being a date which is not earlier than the date of the New Zealand Gazette notice in respect of the exemption, is 26 February 2004.
Pursuant to Regulation 194 (5) (c) the Commission will publicise the exemption on the Commission's web site.
For and on behalf of the Electricity Governance Board.
ROY HEMMINGWAY, Chairman.