21 SEPTEMBER 2006

NEW ZEALAND GAZETTE, No. 109

Amendment Proposal No. 88, is issued by the Electricity Commission (“Commission”), established under the Electricity Act 1992 (“Act”), pursuant to section 172E (2) (c) of that Act.

2. Section 172E (2) (c) of the Act 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

3. On 15 September 2006, the Commission made a recommendation that changes to some Rules in Parts A, G and H be made to clarify inconsistencies.

Recommended Amendments to the Rules

4. The recommended amendments to the Rules clarify several minor inconsistencies with some Rules in Parts A, G and H of the Rules.

A copy of the Commission’s recommendation is available, at no cost, on the Commission’s web site:
http://www.electricitycommission.govt.nz/rulesandregs/recommend

Dated at Wellington this 15th day of September 2006.

For and on behalf of the Electricity Commission:
PETER HARRIS, Commissioner.
au6468

Notice of Making of a Recommendation Concerning the Electricity Governance Rules 2003 – Rule Amendment Proposal No. 90

1. This notice of a recommendation concerning the Electricity Governance Rules 2003 (“Rules”), Rule Amendment Proposal No. 90, is issued by the Electricity Commission (“Commission”), pursuant to section 172E (2) (c) of the Electricity Act 1992 (“Act”).

2. Section 172E (2) (c) of the Act 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

3. On 19 September 2006, the Commission made a recommendation that the Rules be amended to update Schedule D2 of Part D of the Rules.

4. Section 172F (3) of the Rules provides that the Commission is not required to comply with section 172F (1) (which relates to carrying out an 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. In reliance on section 172F (3), no such assessment has been carried out.

Recommended Amendment to the Rules

5. The recommended amendment to the Rules is to update Schedule D2 of Part D by:

   (a) inserting information regarding four new GXPs;

   (b) deleting two superfluous and, in some cases, inaccurate columns of information (“meter” and “location” columns); and

   (c) amending other inaccurate data.

A copy of the Commission’s recommendation is available, at no cost, on the Commission’s web site:
http://www.electricitycommission.govt.nz/rulesandregs/recommend

Dated at Wellington this 19th day of September 2006.

For and on behalf of the Electricity Commission:
PETER HARRIS, Commissioner.
au6554

3251

Notice of Making of a Recommendation and Assessment Concerning the Electricity Governance Rules 2003 – Rule Amendment Proposal No. 99

1. This notice of a recommendation and assessment concerning the Electricity Governance Rules 2003 (“Rules”), Rule Amendment Proposal No. 99, is issued by the Electricity Commission (“Commission”), established under the Electricity Act 1992 (“Act”), pursuant to section 172E (2) (c) of that Act.

2. Section 172E (2) (c) of the Act 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

3. On 18 September 2006, the Commission recommended that the existing Schedule C5 of Part C of the Rules, which contains the procurement plan, be replaced in its entirety with a new Schedule C5.

Recommended Amendments to the Rules

4. The key changes between the existing Schedule C5 and the one recommended by the Commission are set out below:

   (a) an increase in the system operator’s standard charge-out rates for administrative costs relating to procurement (clause 45);

   (b) new clauses to be included in any new long-term contract for over-frequency reserve, voltage support or black start (clauses 75 to 77) to specify:

    (i) the system operator can cancel a contract by giving the service provider one month’s notice if, in the system operator’s reasonable opinion, the number or duration of maintenance outages of equipment used to provide or monitor the ancillary service is such that it substantially detrimentally affects the service provider’s ability to provide or monitor the ancillary service; and
   
    (ii) a formula for annual adjustment of the availability or event fees is to be agreed between the system operator and the ancillary services agent;

   (c) an updated commentary by the system operator on the competitive cost pressures and degree of market innovation involved in ancillary service procurement for the plan year (clauses 81 to 83);

   (d) clarification of the response rate required of generating units to provide frequency keeping ancillary service (clause 90);

   (e) amendment of existing provisions to cancel an existing offer or submit a new or revised offer later than two hours prior to the beginning of a trading period:

    (i) by extending the existing provision to situations where the system operator has issued a formal notice (clause 113);
   
    (ii) by requiring a service provider to report all cancellations or submissions that have been made later than two hours prior to the beginning of the trading period, to the system operator in writing with an explanation for each (clause 114);
   
    (iii) by requiring a service provider to prepare a written monthly report of all such cancellations and submissions by the 20th of the month following the month being reported (clause 114); and