Notice Type
Authorities/Other Agencies of State
Notice Title

Notice of Making of a Recommendation and Assessment Concerning the Electricity Governance Rules 2003 – Rule Amendment Proposal No. 43

This notice of a recommendation and assessment concerning the Electricity Governance Rules 2003 (“Rules”), Rule Amendment Proposal No. 43, 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 the Rules be amended on 1 April 2005. The Commission’s recommended amendments to the Rules consisted of the following:
? The insertion of a new schedule, Schedule F3 – Grid Reliability Standards, into Section III of Part F;
? amendments to Rules 4.4 and 5.2 of Section III of Part F to provide clarity around the content of the Grid Reliability Standards;
? amendments to Schedule F4 – Grid Investment Test, to ensure consistency with the proposed Schedule F3;
? the insertion of new Rules 5A and 5B into Section III of Part F to provide for a process to determine the “core grid” and for interested parties to request, or the board to initiate, a review of the core grid determination;
? the insertion of a new Rule 12A into Section III of Part F to provide for a process for Transpower to publish grid reliability reports which set out:
(i) a 10-year forecast of supply and demand at each grid injection point and each grid exit point; and
(ii) whether the power system is reasonably expected to meet the N-1 criterion, including in particular whether the power system would be in a secure state at each grid exit point, at all times over the next 10 years; and
(iii) planning proposals for addressing any matters identified in accordance with (ii) above;
? the amendment of the definitions of “economic investments” and “reliability investments” in Part A; and
? the insertion of the corresponding new defined terms “core grid”, “core grid determination”, “grid reliability report”, “expected unserved energy”, “primary transmission equipment”, “N 1 criterion”, “secure state”, “satisfactory state”, “single credible contingency event”, “system instability”, “unacceptable overloading” and “unacceptable voltage conditions” into Part A of the Rules which completes the package of changes required to implement the Grid Reliability Standards.
Recommended Amendments to the Rules
The recommended amendments to the Rules were to insert the Commission’s proposed Grid Reliability Standards in a schedule to Section III of Part F of the Rules and the other proposed amendments were part of an integrated package to give effect to those Grid Reliability Standards.
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/rulesandregs/recommend
Dated at Wellington this 1st day of April 2005.
For and on behalf of the Electricity Commission:
ROY HEMMINGWAY, Chair.