22 FEBRUARY 2007

NEW ZEALAND GAZETTE, No. 20

407

(a) define a co-generator, an industrial co-generating
station and an industrial process;

(b) introduce a process for approving co-generators;

(c) increase the dispatch compliance band for
co-generators; and

(d) widen the definition of bona fide physical reason for
co-generators.
A copy of the Commission’s recommendation and assessment
is available, at no cost, on the Commission’s website:
http://www.electricitycommission.govt.nz/rulesandregs/recommend

Dated at Wellington this 15th day of February 2007.
For and on behalf of the Electricity Commission:
PETER HARRIS, Deputy Chair.
au1069

Notice of Making of a Recommendation and
Assessment Concerning the Electricity Governance
Rules 2003 – Rule Amendment Proposal
No. 110, 2007

1. This notice of a recommendation and assessment
   concerning the Electricity Governance Rules 2003
   (“Rules”), Rule Amendment Proposal No. 110, 2007, 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 February 2007, the Commission made a
   recommendation that various rules in Part A and Section V
   of Part G of the Rules be amended.

Recommended Amendment to the Rules

4. The recommended amendments to the Rules:

(a) define a high spring washer prices situation
(“HSWPS”);

(b) introduce a process whereby a HSWPS can be
detected;

(c) allow for the publication of provisional prices
whenever such situations are detected;

(d) allow for the relaxation of associated security
constraints; and

(e) allow for the publication of final prices based on
revised constraint data.

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

Dated at Wellington this 15th day of February 2007.
For and on behalf of the Electricity Commission:
PETER HARRIS, Deputy Chair.
au1070

Electricity Governance Regulations 2003

Electricity Governance Regulations (Exemption
No. 40 (Pricing Manager)) Exemption Notice 2007

Pursuant to Regulation 194(2) of the Electricity
Governance Regulations 2003, the Electricity Commission
(“Commission”) gives the following notice.

Notice

1. Title and commencement—(1) This notice is the
   Electricity Governance Regulations (Exemption No. 40
   (Pricing Manager)) Exemption Notice 2007.

(2) This notice comes into force on 1 March 2007.

2. Exemption—The Pricing Manager is exempted from
   compliance with:

(a) Rule 4.2 of Schedule G6 of Part G of the
Electricity Governance Rules 2003 (“Rules”), but
only to the extent that it would otherwise
apply in determining the instantaneous reserves
information to be incorporated in accordance
with paragraph 3(b) below;

(b) Rule 5.4(e) of Schedule G6 of Part G of the Rules;
and

(c) Rule 5.5 of Schedule G6 of Part G of the Rules, but
only to the extent it would otherwise apply in
determining the instantaneous reserves information
to be incorporated in accordance with paragraph 3(b)
below.

3. Terms and conditions—This exemption is granted on
   the conditions that:

(a) it will expire on 30 June 2008; and

(b) when preparing prices in accordance with Rule 5.4
of Schedule G6 of Part G of the Rules, the Pricing
Manager must incorporate instantaneous reserves
information for the schedule of prices for each
trading period calculated as follows:

(i) If instantaneous reserves have been dispatched
at the commencement of the trading period,
then the instantaneous reserves information will
be the instantaneous reserves information
that was contained in the dispatch schedule that
was prepared immediately prior to that trading
period commencing, for that trading period,
regardless of whether dispatch instructions were
issued from that dispatch schedule;

(ii) in all other cases, the instantaneous reserves
information will be set to zero.

4. Reason for granting the exemption—The reasons
   for granting this exemption are:

(a) to ensure clarity and consistency in the pricing
process;

(b) to provide an interim efficient method of
incorporating instantaneous reserves information
into the pricing process until decisions can be
made in relation to a proposed rule change allowing
for variable reserves. Those decisions cannot be
made until after the system operator’s software
upgrade has been completed;

(c) to ensure that the most appropriate instantaneous
reserves information is used in the pricing process;
and

(d) to ensure that future energy/reserve shortage events
do not give rise to extreme pricing outcomes, such
as that which occurred during the shortage event of
10 March 2004.

Dated at Wellington this 19th day of February 2007.
For and on behalf of the Electricity Commission:
PETER HARRIS, Deputy Chair.
au1189