In this issue:

• Spot Market Commentary
• Spot Market Prices
• Hydro Storage

Spot Market Commentary

Spot market prices for the month of October averaged $49.58 at Haywards.

The hydro storage situation for New Zealand as a whole improved markedly over the month, with the overall level rising from 48% to 54% of maximum capacities. Average temperatures with very wet periods in Auckland and the lower North Island predominated.

The Taupo and lower South Island catchments experienced significant dry spells for the month, although the major South Island hydro catchments (Waitaki and Clutha) experienced major improvements in storage levels (up 13% and 9% respectively).

Spot Market Prices

The Spot Market averaged $49.58 at Haywards for October 2006, a decrease from $61.01 for the previous month.

Spot Prices were significantly below average prices for September, the result primarily of greater hydro inflows. The highest half-hour spot price at Haywards (per MWh) during the month was $104.27 for period 22 on 3 October; the lowest half-hour spot price at Haywards (per MWh) during the month was $0.11 for periods 6-10 on 16 October.

Spot Price Statistics

Average Daily Prices

Average Half Hour Prices

Hydro Storage

Inflows for October for New Zealand were slightly below average for the month. Lake Taupo inflows were well below average, whilst southern lakes experienced strong inflows. Overall South Island storage improved from 43% to 52%, whilst North Island storage fell from 71% to 61%, the lowest level this year. The overall NZ level improved from 48% to 54%.

National Storage

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

NZ Storage and Minzone
February 2006 to June 2007

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.