Power Limited and Southpark Utilities Limited
Pursuant to Regulation 194 of the Electricity Governance Regulations 2003, this Exemption Notice is issued by the Electricity Commission, formally constituted as the Electricity Governance Board ("the Commission"), in favour of Contact Energy Limited ("Contact"), Duke Energy Limited ("Duke"), Mighty River Power Limited ("Mighty River"), and Southpark Utilities Limited ("Southpark"). This exemption is being granted under urgency in reliance on Regulation 194 (4).
Subject to any terms and conditions imposed upon Contact, Duke, Mighty River and Southpark as noted below, the Commission hereby grants Contact, Duke, Mighty River and Southpark an exemption from the requirement to comply with
the following Electricity Governance Rules 2003 ("the Rules"):
1. Rule 11.6 of section IV of part C (voltage support costs).
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 exemptions, the subject of this Exemption Notice and the Commission's reasons for granting them shall be notified in the New Zealand Gazette on 22 April 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 30 September 2004.
2. The exemption applies only to the extent that the parties have obligations as distributors under rule 11.6 of section IV of part C.
3. The exemption only applies to the GLN0332, MDN0141, MDN1101, OTA0221, OTA1101, OTA1102, PEN0331 and SWN2201 nodes.
Board's Reasons for Granting the Exemption Contained in this Notice
The reasons for granting the exemption are as follows:
(a) The relevant nodes are grid injection points and the parties are consequently unable to nominate a peak kVAr for each of the relevant nodes.
(b) The issues faced by the parties are due to the transition from NZEM to the Rules and can be addressed through granting an exemption for a short period.
(c) The Commission has not had sufficient time to review the options available and take independent advice of these matters.
(d) The Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.
(e) Granting the exemption will allow time for the Commission to investigate a rule change or other mitigation measures which appropriately address the issue.
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 22 April 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.