1. Pursuant to section 172I of the Electricity Act 1992 ("Act"), I notify the amendment of the Electricity Governance Rules 2003 ("Rules") under section 172H of
the Act.
2. The empowering provisions for the Electricity Governance Regulations in relation to which the amendments to the Rules are made are sections 172D(1)(3) and 172D(1)(4) of the Act.
3. The existing procurement plan in Schedule C5 of Part C of the Rules will be replaced in its entirety with a new Schedule C5. The key changes are to:
(a) clarify the assessment methodology and quantity requirements;
(b) provide an expanded definition of the requirements for making a frequency keeping offer;
(c) describe the method for selecting frequency keepers each trading period;
(d) require the system operator to review its dispatch when a frequency keeper advises it cannot maintain frequency or time error to the standards required;
(e) provide for the system operator to procure frequency keeping from a generator in an area temporarily cut off from the rest of the grid;
(f) outline the method the system operator will use to assess the performance of generators providing fast instantaneous reserve; and
(g) allow for a verified error range for data supplied in any assessment of ancillary service performance requirements.
4. Pursuant to section 172Z(4) of the Act, the reasons for my decision to amend the Rules are that:
(a) this amendment updates the procurement arrangements with enhancements to the specification and procurement of ancillary services; and
(b) the new procurement plan complies with the requirement in the Rules to review the procurement plan annually.
5. These Rules come into force on 1 December 2007.
6. Copies of the Rules may be inspected free of charge or purchased from the Electricity Commission, Level 7, ASB Bank Tower, 2 Hunter Street, Wellington. The Rules can also be viewed on the Electricity Commission's website
http://www.electricitycommission.govt.nz/rulesandregs/
rules
Dated at Wellington this 20th day of September 2007.
DAVID PARKER, Minister of Energy.