Ann: QUARTER: MRP: Quarterly Operational Update -

• Release Date: 17/04/14 10:56
• Summary: QUARTER: MRP: Quarterly Operational Update - 3 months ended 31.03.14
• Price Sensitive: No
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					MRP
17/04/2014 08:56
QUARTER

REL: 0856 HRS Mighty River Power Limited (NS)

QUARTER: MRP: Quarterly Operational Update - 3 months ended 31.03.14

Quarterly Operational Update

Three months ended 31 March 2014

QUARTERLY HIGHLIGHTS

o GEOTHERMAL GENERATION increased by 36% to the highest ever production level

o HYDRO GENERATION up 13% reflecting the decision to build up storage in
prior quarter
o COMMERCIAL SALES volumes down increasing net wholesale sales

GEOTHERMAL GENERATION INCREASES BY 36%, HYDRO GENERATION UP

Mighty River Power's geothermal production was its highest ever in the period
at 682GWh, an increase of 179GWh (or 36%) on the prior comparable period
(pcp) - making up 45% of Mighty River Power's total generation. The boost in
geothermal production was the result of the additional base-load generation
from the 82MW Ngatamariki station completed in September last year, and
increased generation from Kawerau due to more fuel availability with a new
consent secured for additional fuel.  Gas-fired generation at Southdown was
only 6GWh during the quarter due to the plant being out for routine
maintenance. Southdown is being progressively returned to service with two
units now operational, and the third unit expected to be back in service by
the end of April.
Hydro generation was up 95GWh on pcp (up 13%) to 834GWh despite quarterly
inflows at the 2nd percentile. There has only been one drier year on record
for the January to March period. The Company had built-up storage in the
previous quarter to average levels at 1 January 2014.

COMMERCIAL SALES VOLUMES DOWN, NET WHOLESALE SALES UP

Net sales to the wholesale market (102GWh long) increased as a result of
Mighty River Power reducing commercial sales commitments by 12% through 2013
(calendar year), with the wholesale market providing better rewards for the
Company's flexible hydro generation.
Since the beginning of 2014 the Company has seen increased volatility and
higher pricing in the wholesale market, and the longer net sales position
gave the Company flexibility to optimise value in the market resulting in the
price achieved for total generation of $105.34/MWh (up 8%).
The overall price the Company achieved for its fixed-price electricity sales
was up slightly (1.3%) to $112.67/MWh, which reflected higher commercial
prices. Both residential prices and volumes remained flat, with the Company
holding broadly steady market share for the period. The Company announced in
December that there would be no increase in residential energy prices until
at least April 2015, and it has recently also increased its Prompt Payment
Discount by 2% for customers on both direct debit and electronic billing.

TAUPO STORAGE AT LAST YEAR'S LOW LEVEL

Lake Taupo ended the period with storage at 33% of average, with both
national and Taupo storage at about the same level as they were this time
last year. Typically Taupo inflows increase in May from the low in April.
Mighty River Power's lower commercial sales commitments and higher reliable
base-load geothermal production, along with dry year cover and hedging
contracts, provides the Company with resilience to manage wholesale price
risk when hydrology is low.

Mighty River Power will release its financial results for the year ending 30
June 2014 on 20 August 2014.

For further information:

Anna Hirst
Head of Investor Relations
T 0275 173 470

Marie Winfield
Communications Manager - Operations and Development
T 027 210 5337
End CA:00249587 For:MRP    Type:QUARTER    Time:2014-04-17 08:56:55