This notice of a recommendation concerning the Electricity Governance Rules ("Rules"), Rule Amendment Proposal No. 18 and No. 46, is issued by the Electricity Commission ("Commission"), established under the Electricity Act 1992 ("Act"), pursuant to section 172E (2) (c) of that Act.
Section 172E (2) (c) provides that, no later than 10 working days after making a recommendation concerning the Rules to the Minister of Energy, the Commission must publicise the recommendation and the assessment completed under section 172F of the Act.
Recommendation
The Commission made a recommendation that a new defined term "distributor kvar reference node" be inserted into Part A of the Rules, and Rule 11.6 of section IV, Part C of the Rules be amended (including replacing references
to "grid exit point" and "point of connection" with "distributor kvar reference node" or "generating stations"
(as appropriate), replacing references to "reconciled quantity" with "metered information" in Rule 11.6.3, the correction of other drafting errors and the insertion of a new Rule 11.6.4), in reliance on section 172F (3) on 8 December 2004.
Section 172F (3) provides that the Commission is not required to comply with section 172F (1) (assessment) if it
is satisfied that the effect of the recommendation is minor and will not adversely affect the interests of any person in a substantial way.
Accordingly, no such assessment has been carried out under section 172F (1) of the Act.
Recommended Amendment to the Rules
The recommended amendments are to correct errors in the Rules relating to the allocation of voltage support costs to zone 1 distributors as described below:
(a) Rule 11.6 of section IV, Part C of the Rules is amended, and a new defined term "distributor kvar reference node" is inserted into Part A of the Rules, to allow the voltage support cost allocation methodology to be performed on an aggregate rather than GXP basis;
(b) the new Rule 11.6.4 of section IV, Part C, means that generators are excluded from the definition of "distributor" for the purposes of Rule 11.6; and
(c) references to "reconciled quantity" are replaced by references to "metered information" in Rule 11.6.3 of section IV, Part C, to ensure that the clearing manager uses the appropriate information.
A copy of the Commission's recommendation (and assessment) is available, at no cost, on the Commission's web site:
http://www.electricitycommission.govt.nz/govern/regs/index.html
Dated at Wellington this 8th day of December 2004.
For and on behalf of the Electricity Commission:
ROY HEMMINGWAY, Chair.