Pursuant to Regulation 194(2) of the Electricity Governance Regulations 2003, the Electricity Commission gives the following notice.
N o t i c e
1. Title and commencement—(1) This notice is the Electricity Governance Regulations (Exemption No. 89 (System Operator)) Exemption Notice 2008.
(2) This notice comes into force on the day after the date it is notified in the New Zealand Gazette.
2. Interpretation—A term that is defined in the Rules and used in this notice has the same meaning as in the Rules.
3. Exemption—The system operator is exempted from compliance with the requirement in Clause 33.1 of Schedule C4 of Part C of the Electricity Governance Rules 2003 (“Rules”) to zero reserve requirements for a contingent event.
4. Terms and conditions—This exemption is granted on the following conditions:
(a) It will expire on 30 November 2009; and
(b) when clause 33.1 would otherwise apply but for this exemption, the system operator will:
(i) set the reserve requirement to the highest of the settings specified in paragraph (c) below that the system operator considers is reasonably likely to result in a dispatchable SPD solution; and
(ii) use reasonable endeavours to make available
to participants, as soon as practicably possible, the reserve requirement set in accordance
with subparagraph (i) that applied at the commencement of each relevant real time pricing period; and
(c) the settings referred to in paragraph (b)(i) are 0.0, 0.2, 0.4, 0.6, and 0.8.
5. Reason for granting the exemption—The reasons for granting this exemption are:
(a) to allow the system operator to partially dispatch reserves in situations where there are insufficient energy and/or reserve offers in the trading period to simultaneously meet the energy requirements and the reserve requirements for a contingent event;
and
(b) to give better pricing signals to participants when there is a shortage of energy, or reserves, or both; and
(c) to provide an interim method of providing for
the partial dispatch of reserves until a rule change proposal and comprehensive software solution can be developed.
Dated at Wellington this 1st day of July 2008.
For and on behalf of the Electricity Commission:
DAVID CAYGILL, Chair.