Pursuant to section 161D(1)(e) of the Climate Change Response Act 2002, I, The Honourable Nick Smith, Minister for Climate Change Issues, give the following notice.
N o t i c e
1. Title and commencement (1) This notice may be cited as the Call for the Provision of Electricity-Related Contracts and Related Information (Aluminium Smelting) Notice 2010.
(2) This notice takes effect from and including 25 March 2010.
2. Interpretation (1) Unless the context otherwise requires:
Act means the Climate Change Response Act 2002.
Activity means the physical and chemical transformation of alumina (aluminium oxide, Al2O3) into saleable aluminium metal (Al).
NZAS means the company registered as New Zealand Aluminium Smelters Limited.
Related Company has the meaning set out in the Companies Act 1993.
3. Electricity-Related Contracts Required to be Provided (1) Provided NZAS is carrying out the activity at the date of this notice, NZAS must provide the Ministry for the Environment, within 30 working days of the date of this notice, with a copy of the following contracts to which it or any of its related companies, is a party to:
(a) The agreement dated 15 August 1963 and entered into between the Crown and Consolidated Zinc Limited for the supply of electric power, as amended from time to time;
(b) the agreement dated 30 April 1981 and entered into between the Crown and Comalco Power (N.Z.) Limited for the supply of electricity, as amended from time to time;
(c) the agreement dated 20 August 1993 and entered into between Electricity Corporation of New Zealand Limited and Comalco Power (N.Z.) Limited and NZAS as guarantor, as amended from time to time;
(d) any agreement supplementary to any of the contracts referred to in paragraphs 3(1)(a) to 3(1)(c) that is still current as at the date of this notice; and
(e) the power contract dated 12 June 1969 and entered into between Comalco Power (N.Z.) Limited and NZAS, as amended from time to time, restated as of 20 June 1994.
(2) Provided NZAS is carrying out the activity at the date
of this notice, NZAS must provide the Ministry for the Environment, within 30 days of the date of this notice, with the following information relating to electricity contracts:
(a) The document entitled "Summary of Contracts relevant to Power Supply from Meridian Energy Limited to Comalco Power (N.Z.) Limited" prepared for the Electricity Commission Establishment Unit in August 2003;
(b) an explanation relating to historical and future pricing under or relating to the contracts referred to in paragraphs 3(1)(a) to 3(1)(c) which will assist
in a determination by the Minister of an allocative baseline or baselines for NZAS pursuant to the Act;
(c) a summary, for each of the 2006/2007, 2007/2008 and 2008/2009 financial years, of the agreed price and escalator calculations under the contracts referred to at paragraphs 3(1)(a) to 3(1)(c), (for the avoidance of doubt, this information may be provided in summary form in a newly created document rather than providing all source documentation for the calculations);
(d) the framework for agreement between the Crown and NZAS establishing a framework for a negotiated greenhouse agreement developed in 2005;
(e) an explanation of how transmission pricing operates under the contracts referred to in paragraphs 3(1)(a) to 3(1)(c); and
(f) a statement setting out the amount of electricity likely, as at the date of this notice, to be consumed by NZAS in excess of 543.75MW during each
of the periods 1 July 2010 to 31 December 2010,
1 January 2011 to 31 December 2011 and 1 January 2012 to 31 December 2012.
Dated at Wellington this 25th day of March 2010.
HON NICK SMITH, Minister for Climate Change Issues.