MEL
08/07/2014 08:37
GENERAL
REL: 0837 HRS Meridian Energy Limited
GENERAL: MELCA: Meridian Energy signs dry year hedge contract with Genesis
8 July 2014
Meridian Energy has signed a four-year electricity hedge contract that will
provide the company with hedge cover
for dry years.
The agreement begins on 1 January 2015 and allows for up to 150MW to be
available every year. If Meridian's contract with NZ Aluminum Smelters saw a
reduction in volume, the agreement has a provision to terminate after the
first two years.
The structure of the new agreement allows for 100MW to be available year
round, with an additional 50MW available from 1 April to 30 October in each
year of the contract.
Meridian currently has a 200MW hedge contract with Genesis that ends in
October 2014.
Meridian General Manager Markets and Production, Neal Barclay, says the
transaction with Genesis follows a competitive process that Meridian
initiated in December 2013.
"This arrangement with Genesis is more flexible than the existing arrangement
and gives us confidence that we will
meet our commitments to customers if we experience a drought or face other
market challenges," says Neal.
"We're happy to have reached this conclusion with Genesis. They are our
neighbour in the McKenzie Basin and we know them well, given our current
swaption that has been in place for five years."
For media queries, please contact:
Michelle Brooker
Media Manager
021 225 9624
For Investor Relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
End CA:00252529 For:MEL Type:GENERAL Time:2014-07-08 08:37:42
