Pursuant to Regulation 194 (5) (d) 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") and Mighty River Power Limited ("Mighty River").
This exemption is an amendment of the original exemption granted under Regulation 194 to Contact, Duke and Mighty River, published in the New Zealand Gazette, 22 April 2004, page 1120.*
Subject to any terms and conditions imposed upon Contact, Duke and Mighty River, the Commission hereby grants Contact, Duke and Mighty River an exemption from the requirement to comply with the following Electricity Governance Rule:
1. Rule 11.6 of section IV of part C (voltage support costs).
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 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 Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.
(c) 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 is 3 June 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.
*Please note that Southpark Utilities Limited was incorrectly included in this exemption.