Ann: QUARTER: MRP: Quarterly Operational Update

• Release Date: 23/10/13 10:30
• Summary: QUARTER: MRP: Quarterly Operational Update
• Price Sensitive: No
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					MRP
23/10/2013 08:30
QUARTER

REL: 0830 HRS Mighty River Power Limited (NS)

QUARTER: MRP: Quarterly Operational Update

FLEXIBLE GENERATION PORTFOLIO COMPENSATES FOR LOW HYDRO CONDITIONS

Operating statistics for the quarter to 30 September 2013 reflect additional
geothermal production from the new Ngatamariki station and active management
of the Company's portfolio - with increased net purchases from the wholesale
electricity market to cover customer sales requirements, due to lower hydro
production during the period.

The 82MW Ngatamariki station boosted total geothermal output to 691GWh and
43% of Mighty River Power's total generation for the quarter. The overall
generation volume of 1,621GWh was down 348GWh (or 18%) on the prior
comparable period (pcp) due to low inflows into the Waikato River catchment
(hydro generation down 34%) and the Company opting to buy additional volumes
cheaply from the wholesale market - rather than using more expensive
gas-fired generation. South Island hydro conditions, which have a much
greater influence on national pricing, were above-average during this time
and resulted in low prevailing wholesale prices during the period.

The Company achieved an improvement in the relative wholesale price paid for
purchases compared with the wholesale price it earned for its generation
(LWAP/GWAP), from 1.04 in the pcp to 0.97 for the three months to 30
September 2013. This reflects the best use of its flexible generation in a
period of low inflows, in addition to recent improvements in the national
transmission grid which have strengthened the competitive environment and
reduced exposures to locational price risk.

RECORD LOW OUTPUT FOR WAIKATO DURING Q1; HYDRO STORAGE NOW ABOVE 100% OF
AVERAGE

As a result of the Company's management of the available water and flexible
use of hydro and gas-fired generation, the weighted average wholesale
electricity price achieved for generation was $64.37/MWh, similar to pcp and
above the market prices received by our competitors for the period. Flexible
gas-fired generation accounted for only 4% of total production and was down
nearly 50% to 67GWh in line with the national trend of renewables displacing
thermal plant. While hydro volumes for the quarter were the lowest for Q1
since the Company was formed in 1999, Lake Taupo storage is now at more than
100% of historical average after strong inflows from late September.

MAINTAINS POSITIVE SALES MARKET SHARE TREND

Electricity sales volumes to customers were down 5% on the pcp, largely
reflecting lower national demand and a drop-off in commercial volumes (down
8%) with the Company actively managing its sales book after achieving a very
strong increase in advance of the commissioning of Ngatamariki. Over the past
five years the Company has increased its market share from 17% to 19%. In the
continuing highly competitive market in the quarter, Mighty River Power's
average FPVV sales price was $123.47/MWh across its multiple consumer brands
and sales channels.

Mighty River Power will release its financial results for the six months
ending 31 December 2013 on 26 February 2014.

See attached for further details.
End CA:00242733 For:MRP    Type:QUARTER    Time:2013-10-23 08:30:52