24 APRIL 2008

NEW ZEALAND GAZETTE, No. 76

equals an amount that would be determined from
time to time under Rule 3.1.1 of Part H of the Rules
if Genesis and Energy Online were a single
participant.

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

(a) The exemption is granted on the condition that
Genesis provides a level of security which covers
both Genesis’ and Energy Online’s prudential
requirement under the Rules so that the overall
market prudential requirements will remain the
same;

(b) the clearing manager reviewed the proposed
exemption and advised that the exemption would be
practicable and would not result in a reduction in
present levels of security;

(c) Genesis and Energy Online have informed the
Commission that the consequences of not granting
the exemption would be that Energy Online would
incur additional costs if it were required to
provide any other form of security, for example
the operational costs of setting up and managing a
letter of credit and the financial costs of obtaining
a letter of credit at less favourable rates than
Genesis; and

(d) there will be little or no impact on other participants
and service providers and the exemption will not
affect any other rules.

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

(2) This exemption expires at the close of 31 July 2008,
being the earliest date that will enable the Commission to
have regard to the views of participants.

(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 5.00pm on Friday, 9 May 2008.

Dated at Wellington this 21st day of April 2008.

For and on behalf of the Electricity Commission:

DAVID CAYGILL, Chair.

au2823

Electricity Governance Regulations (Exemption
No. 80 (Bosco Connect Limited)) Exemption
Notice 2008

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. 80
   (Bosco Connect Limited)) Exemption Notice 2008.

(2) This notice comes into force on 1 May 2008.

2. Exemption—Bosco Connect Limited (“Bosco Connect”)
   is exempted from compliance with the requirement in Rule
   2.4.3 of Part H of the Electricity Governance Rules 2003
   (“Rules”) that a third party guarantor maintains an
   acceptable credit rating as defined in Rule 2.5 of Part H of
   the Rules.

3. Conditions—This exemption is granted on the following
   conditions:

(a) Bosco Connect must procure an unconditional third
party guarantee, as required by Rule 2.4.3 of Part H
of the Rules, from Mighty River Power Limited
(“Mighty River Power”);

(b) Mighty River Power must enter into a deed in favour
of and enforceable by the clearing manager
providing that the clearing manager may set-off any
amount owing by Mighty River Power under that
third party guarantee against any amount payable by
the clearing manager to Mighty River Power as if
Rule 9.4.3 of Part H of the Rules applied to that
amount owed by Mighty River Power;

(c) Mighty River Power must ensure that any acceptable
security that it provides from time to time under
Rule 2.2.2 of Part H of the Rules secures its
obligations under the third party guarantee that it
provides under paragraph (a) of this clause in
addition to its own obligations; and

(d) Mighty River Power must at all times maintain a
minimum level of security under paragraph (c) of
this clause that equals an amount that would be
determined from time to time under Rule 3.1.1 of
Part H of the Rules if Mighty River Power and
Bosco Connect were a single participant.

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

(a) The exemption is granted on the condition that
Mighty River Power provides a level of security
which covers both Mighty River Power’s and Bosco
Connect’s prudential requirement under the Rules so
that the overall market prudential requirements will
remain the same;

(b) the clearing manager reviewed the proposed
exemption and advised that the exemption would be
practicable and would not result in a reduction in
present levels of security;

(c) Mighty River Power and Bosco Connect have
informed the Commission that the consequences of
not granting the exemption would be that Bosco
Connect would incur additional costs if it were
required to provide any other form of security, for
example the operational costs of setting up and
managing a letter of credit and the financial costs of
obtaining a letter of credit at less favourable rates
than Mighty River Power; and

(d) there will be little or no impact on other participants
and service providers and the exemption will not
affect any other rules.

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

(2) This exemption expires at the close of 31 July 2008,
being the earliest date that will enable the Commission to
have regard to the views of participants.

(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 5.00pm on Friday, 9 May 2008.

Dated at Wellington this 21st day of April 2008.

For and on behalf of the Electricity Commission:

DAVID CAYGILL, Chair.

au2822

Electricity Governance Regulations (Exemption
No. 81 (Auckland Gas Company Limited))
Exemption Notice 2008

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