26 FEBRUARY

NEW ZEALAND GAZETTE

423

Board’s Reasons for Granting the Exemption Contained in this Notice

Pursuant to the requirements upon the Commission contained within Regulation 194 (3), the Commission has, before granting
the exemption contained within this Exemption Notice:

(a) had regard to section 172N of the Electricity Act 1992 (“the Act”);

(b) subject to Regulation 194 (4), publicised its intention to grant the exemption; and

(c) had regard to any views that have been made known to the Commission within the time specified by the Commission.

The reasons for granting the exemption are as follows:

(a) The definition of “Electricity Retailer” in the Act includes ECHL in its capacity as clearing manager as the definition
includes parties who sell electricity to another party other than for the purposes of resupply.

(b) ECHL is concerned that it is possible to construe the definition as placing unintended obligations on them. A specific
obligation would be for ECHL to provide metering equipment for some direct connect consumers. It is possible that
other amendments to Part D would add further unintended obligations on ECHL as a result of the definition of
“retailer”.

(c) The Commission considers that ECHL should not have any obligations as a retailer in respect of Part D by virtue of its
role as clearing manager.

(d) The Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.

(e) The Commission has decided it is appropriate to exempt ECHL from this obligation while ECHL continues in its role
as clearing manager.

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 1 March 2004.

For and on behalf of the Electricity Governance Board:

ROY HEMMINGWAY, Chairman.

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Exemption Notice – Application #4 – Todd Energy Limited and King Country Energy Limited

Pursuant to Regulation 194 of the Electricity Governance Regulations and Rules 2003 (“EGRs”), this Exemption Notice is
issued by the Electricity Commission, formally constituted as the Electricity Governance Board (“the Commission”), in favour
of Todd Energy Limited (“Todd Energy”) and King Country Energy Limited (“KC Energy”). This exemption is being granted
under urgency in reliance on Regulation 194 (4).

Subject to any terms and conditions imposed upon Todd Energy and KC Energy as noted below, the Commission hereby
grants Todd Energy and KC Energy an exemption from the requirement to comply with the following Electricity Governance
Rule:

1. Rule 4.9 of section III of part G (dispatch instructions).

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 exemption the subject of this Exemption
Notice and the Commission’s reasons for granting it, shall be notified in the New Zealand Gazette on 26 February 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 1 June 2004.
2. The exemption is only in relation to dispatch instructions for Mangahao power station at the MHO0331 node.

Board’s Reasons for Granting the Exemption Contained in this Notice

The reasons for granting the exemption are as follows:

(a) Todd and KC Energy have been in discussions with the system operator about a means by which they can receive and
relay dispatch instructions. The discussions have almost been completed but as at 1 March, Todd Energy and KC
Energy will be unable to comply with the rule requiring them to have in place means for receiving and relaying
electronic dispatch instructions. Facilities are likely to be in place by 1 June 2004.\n
(b) The Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.

(c) The Commission considers it is practical to grant the exemption to allow Todd Energy and KC Energy sufficient time
to implement facilities which comply with the rule.

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 26 February 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.

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