Ann: QUARTER: MRP: Quarterly Operational Update -

• Release Date: 30/01/14 11:02
• Summary: QUARTER: MRP: Quarterly Operational Update - 3 months ended 31.12.13
• Price Sensitive: No
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					MRP
30/01/2014 09:02
QUARTER

REL: 0902 HRS Mighty River Power Limited (NS)

QUARTER: MRP: Quarterly Operational Update - 3 months ended 31.12.13

Quarterly Operational Update

Three months ended 31 December 2013

QUARTERLY HIGHLIGHTS
o AVERAGE ENERGY PRICES paid by customers increased less than inflation
o TAUPO STORAGE increased by 88GWh
o GEOTHERMAL GENERATION made up 39% of total generation

Mighty River Power's average price received for its electricity sales was up
just 0.6% in the three months to 31 December 2013 compared with the prior
comparable period (pcp: three months to 31 Dec 2012). Customer sales volumes
were down on the pcp as the Company actively managed its portfolio for value
and risk in a quarter of high seasonal temperatures, high national hydro
storage levels and correspondingly low wholesale prices. Base-load geothermal
generation made up 39% of total production, partially compensating for lower
hydro output as storage was re-built following the drought in the preceding
three quarters.

SALES PRICING UP JUST 0.6%, FALL IN VOLUMES WITH FOCUS ON MEDIUM-TERM VALUE

Mighty River Power's average sales price to residential and commercial
customers for the quarter was $111.17/MWh (up 0.6%) compared with $110.52/MWh
in the pcp. During the quarter the Company committed to no increase in energy
prices for its residential customers until at least 1 April 2015. Overall
customer sales volumes were down 9% as the Company continued to reduce sales
volumes in the low-price, low-margin commercial market (down 11% on pcp).  In
the residential market, seasonal demand was 5% lower on a per customer basis
primarily due to high seasonal temperatures.  Lower South Island customer
numbers (down 14%) was the result of the Company temporarily reducing
acquisition and retention activity over the past year in the South Island due
to the market risks prior to final commissioning of Transpower's upgraded
inter-island link.

TAUPO STORAGE INCREASED 88GWh (up 26%)

A strong increase in competitors' hydro inflows over the quarter resulted in
increased South Island storage, which peaked at 182% of average in late
October, and led to significantly reduced wholesale electricity pricing.
During this time, Mighty River Power used inflows to Lake Taupo to build up
storage for future use. After a year of extremely low inflows, Lake Taupo
storage was up 26% over the quarter from 338GWh at 30 September to 426GWh
(97% of average) at 31 December.

Total generation was down 5% (94GWh) on pcp largely as a result of lower
hydro generation (down 15% or 169GWh), while the average price the Company
achieved for its generation, which outperformed the market for the second
quarter running, was $47.67/MWh (compared with $66.25/MWh in the pcp). The
lower hydro generation volume was partially offset by higher geothermal
production (up 19% or 99GWh on pcp) with the additional output from the new
Ngatamariki plant, completed in September last year, and increased fuel
availability at Kawerau with a new larger consent secured for fuel.
Generation at the Nga Awa Purua geothermal station was lower because of an
unplanned outage to improve reliability, and the station currently has a
reduced operating capacity (down about 10MW) until the first half of FY2016
when the turbine is scheduled to be repaired and restored to full capacity.
Geothermal production for the quarter was 39% of total generation, versus 31%
in the pcp. In line with the lower wholesale prices and the general industry
trend of lower thermal plant utilisation, Mighty River Power decreased its
generation from its Southdown gas-fired plant, with a load factor of only 5%
for the quarter.

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

For further information:

David Glendining
Head of Communications
T 0272 105 337

Anna Hirst
Head of Investor Relations
T 0275 173 470
End CA:00246491 For:MRP    Type:QUARTER    Time:2014-01-30 09:02:43