In this issue:

• Spot Market Commentary
• Spot Market Prices
• Hydro Storage

Spot Market Commentary

Spot market prices for the month of October averaged $44.85 at Haywards. Overall New Zealand storage rose 4% to 55% of maximum capacity.  October spot prices fell this month, the result of the increasing hydro lake levels, but were still subject to constraints around the DC Link, which is currently restricted to one pole and as such has no redundancy for outages.  The week of 20-25 October saw Pole 2 out, and as such the effect of separate North and South Island markets.  As such, prices spiked to over $1000/MW for half hour periods around the morning peaks.

National hydro storage levels rose to an above average level on 3 October, 11 months to the day since the last time the levels were above average (3 November 2007).

Spot Market Prices

The Spot Market averaged $44.85 at Haywards for 2008, a minor decrease from $49.42 for September 2008. Half-hour spot prices at Haywards were relatively settled this month, with one week of price spikes due to the DC outage with a high of $1083.21 for period 17 on the 21st of October, and a low of $0.03 for period 8,9 on the 5th of October.

Spot Price Statistics

Average Daily Prices

Average Half Hour Prices

Hydro Storage

Inflows for October for New Zealand were above average for 11 days of the month. Overall South Island storage improved 5% to 50% of maximum capacity, whilst North Island storage rose 2% to 77% of maximum capacity.

The overall NZ level rose 4% to 55% of maximum capacity.

National Storage

The NZ storage level currently sits well above the EC Operational Minzone, as the following diagram illustrates:

Disclaimer: The information contained in this document is based on information that has been provided to Mighty River Power Limited or its related companies by third parties and is intended for general reference only. Whilst every effort has been made to ensure the accuracy and completeness of the information contained in this document, this document is provided on the basis that neither Mighty River Power Limited nor any of its related companies make any representation or warranty as to the accuracy or completeness of the information contained in this document. Neither Mighty River Power Limited nor any of its related companies shall be liable for any losses, damages, costs or expenses suffered or incurred by any person who elects to rely on the information contained in this document.