1. This notice of a recommendation and assessment concerning the Electricity Governance (Procurement Plan) Amendment Rules 2010 is issued by the Electricity Commission ("Commission") pursuant to section 172E(2)(c) of the Electricity Act 1992 ("Act").
2. The Act provides that, no later than 10 working days after making a recommendation to the Minister of Energy and Resources concerning the Electricity Governance Rules 2003 ("Rules"), the Commission must publicise the recommendation and the assessment completed under section 172F of the Act.
Recommended Amendments to the Rules
3. On 2 July 2010 the Commission will recommend that Schedule C5 of Part C be amended.
4. The recommended amendments to the Rules:
(a) Ensure the system operator can agree terms with ancillary service providers that are materially the same as those in the procurement plan;
(b) make it clear that:
(i) the obligation on the system operator to enter into ancillary service procurement contracts is discretionary and is subject to the conditions of implementation detailed in paragraphs 4 to
7 of the procurement plan;
(ii) the system operator is to use reasonable endeavours to enter into ancillary service contracts which include the key contract terms and key technical requirements; and
(iii) the negotiated contract terms must not be materially inconsistent with the key contract terms;
(c) update information on frequency keeping initiatives the system operator is pursuing;
(d) record the system operator’s intention to explore options regarding changes to data monitoring resolution requirements for instantaneous reserve; and
(e) allow the system operator to agree to less frequent testing for over frequency reserve equipment.
5. A copy of the Commission’s recommendation and assessment is available, at no cost, on the Commission’s website at
http://www.electricitycommission.govt.nz/rulesand
regs/recommend
Dated at Wellington this 1st day of July 2010.
For and on behalf of the Electricity Commission:
DAVID CAYGILL, Chair.