12 APRIL 2007

NEW ZEALAND GAZETTE, No. 40

1017

Authorities and Other Agencies of State Notices

Electricity Commission

Electricity Act 1992

Notice of Making of a Recommendation and Assessment Concerning the Electricity Governance Rules 2003 – Rule Amendment Proposal No. 20, 2007

1. This notice of a recommendation and assessment concerning the Electricity Governance Rules 2003 (“Rules”), Rule Amendment Proposal No. 20, 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 5 April 2007, the Commission made a recommendation that Technical Code A of Schedule C3 of Part C of the Rules be amended, by amending Rule 4.4.2, adding a new appendix to the Technical Code and by adding new terms to Part A of the Rules.

Recommended Amendments to the Rules

4. The recommended amendments to the Rules are to:

(a) amend Rule 4.4.2 of Technical Code A of Schedule C3 of Part C of the Rules to:

(i) require the duplicate protection requirements to apply to grid assets at voltages of 220 kV a.c. and to future grid interface voltages higher than 220 kV a.c.;

(ii) refer to a new appendix A;

(b) clarify, in a new Appendix A to Technical Code A of Schedule C3 of Part C, the technical specifications that must be met to comply with the requirement in Rule 4.4.2;

(c) clarify, in the proposed new appendix, the requirements for existing assets;

(d) include new terms in Part A of the Rules to define the meaning of “back up protection system”, “main protection system” and “circuit breaker failure protection system”; and

(e) make a minor typographical correction to the defined term “circuit-breaker”.

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 5th day of April 2007.

For and on behalf of the Electricity Commission:

PETER HARRIS, Deputy Chair.

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Electricity Governance Regulations 2003

Electricity Governance Regulations (Exemption No. 42 (Contact Energy Limited, Genesis Power Limited, Mighty River Power Limited, Alinta ENZ Limited, and Transpower New Zealand Limited in its Capacity as System Operator)) Exemption Notice 2007

Pursuant to Regulation 194 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. 42 (Contact Energy Limited, Genesis Power Limited, Mighty River Power Limited, Alinta ENZ Limited, and Transpower New Zealand Limited in its capacity as System Operator)) Exemption Notice 2007.

   (2) This notice comes into force on the day after the date it is notified in the New Zealand Gazette.

2. Exemption—Contact Energy Limited, Genesis Power Limited, Mighty River Power Limited, Alinta ENZ Limited, and Transpower New Zealand Limited in its capacity as System Operator are exempted from compliance with Rule 7.3.3 of Section III of Part C of the Electricity Governance Rules 2003.

3. Reasons for granting the exemption—The reasons for granting this exemption are that:

   (a) the Commission has already stated in its AUFLS consultation paper that it wishes to make a recommendation that the Rules be amended to correct the ambiguity between Rule 7.3.1 and Rule 7.3.3 of Section III of Part C and would already have done so if the system operator had been able to implement changes without delaying other committed projects;

   (b) there appears to be some risk that the present method for allocating reserve costs to holders of dispensations will distort generator incentives to offer their non-compliant plant, particularly during some e3p commissioning tests; and

   (c) initial views of other North Island parties facing instantaneous reserve charges are that they are indifferent to, or support, the granting of an exemption.

4. Urgency—(1) This exemption is granted under urgency in reliance on Regulation 194(4).

   (2) This exemption expires at the close of 1 June 2007.

   (3) Pursuant to Regulation 194(5)(c), the Commission will publicise the exemption on the Commission’s website and will have regard to any views that participants make known to it by 19 April 2007.

Dated at Wellington this 10th day of April 2007.

For and on behalf of the Electricity Commission:

PETER HARRIS, Deputy Chair.

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