Distributed Generation

DISTRIBUTED GENERATION

INFORMATION PACK

Issue 1.2 March 2008

DDiissttrriibbuutteedd GGeenneerraattiioonn Guidelines & Application Form

For small generators – total capacity less than 10 kW

Issue 1.2 / 4 March 2008 Installing distributed See the attached guide for generation with less details of each numbered step. This document is subject to than 10 kW change without any prior notice. in capacity Interpretation: Please ensure you have the Generator - is referred to the person or an latest version. organisation that owns or operates distribution START HERE generators. 1 Typically smaller distributed generation System Selection systems of this size are rotating (turbine) based systems, solar photovoltaic panels, etc. 2 Application Process Note: The Generator will submit the application accompanied with the additional information and the application fee. Submission of Application Within 5 business days of receiving the application , Westpower will send to the Generator a written notice advising whether the application is complete or not. 3 Note: Westpower will send a written notice to the Generator, stating whether the application is approved or declined within 30 business Application Approval days after the date of receipt of a Process completed application . Extension of time by mutual agreement of up to 20 business days may be granted by the Generator. 4 Note: The Generator must give a written notice Notice of Intention to to Westpower confirming whether or not he intends to proceed with the connection, within Proceed 10 business days after the day on which the notice of approval has been received . 5 Connection Process Connection Contract Note: Both parties must, in good faith, attempt to negotiate a connection contract within 30 Negotiation business days . 6 Contact your Note: A new meter may be fitted at the Generator’s location, by either the Generator Electricity Retailer or the Retailer. 7 Note: The Generator must comply with all Installation, Testing and regulations and local bylaws. The Generator must use a Registered Inspection Electrician who is required to follow AS4777 plus all NZ regulations and standards. 8 A small system could generate up to Note: Westpower will credit your retailer for a 87,600 kWh per year (10 kW systems). Connection Completion portion of the delivery charge for each month The income from this generation will by netting off the exported energy from the depend on the price negotiated with the and Benefits imported energy, subject to the net variable retailer. charge never being less than zero.

Page 1 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

Contents

Guide to installing distributed generation with capacity less than 10kW 3

1 System Selection 3

2 Submission of Application 4

3 Application Approval Process 4

4 Notice of Intention to Proceed 5

5 Connection Contract Negotiation 5

6 Contact your Electricity Retailer 5

7 Installation, Testing and Inspection 7

8 Connection Completion and Benefits 8

9 Glossary 8

APPLICATION FOR CONNECTION AND OPERATION OF A DISTRIBUTED GENERATION SYSTEM UP TO 10 KW IN TOTAL TO WESTPOWER’S NETWORK 9

Page 2 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

Guide to installing distributed generation with capacity less than 10kW This information guide is intended for individuals or organisations wishing to connect distributed generation with a total capacity less than 10 kW to Westpower’s electricity network for the purpose of generating into the grid and selling electricity. This is a one-stage application process .

For larger systems above 10 kW there are separate guidelines.

The information provided in this guide is of general nature and the owners of distributed generation must discuss their intentions with Westpower before connecting the distributed generation system to the network.

Westpower will assist you with the connection process as distributed generation of this size can require changes to your connection to the electricity network.

To understand the various terms used in this guide, please refer to the glossary on the back of this guideline.

This guide does not apply to generation systems that are stand-alone and have no connection to Westpower’s electricity network.

1 System Selection The likely distributed generation technology for systems with a capacity less than 10 kW will be rotating plant, such as turbines (wind, steam, hydro, etc) or large arrays of solar panels. At the upper end of the range, systems are likely to have a three-phase output. If so, you will need a three-phase connection to Westpower’s network. You need to consider your connection to the network in this regard.

Generation systems that are less than 10 kW in capacity are unlikely to have any significant effect on Westpower’s network, but may require some modifications to be carried out which can affect your connection to the network. All distributed generation systems must comply at all times with the requirements of the Health and Safety in Employment Act 1992 , Electricity Act 1992 and the regulations and rules made under the Electricity Act 1992. The distributed generation must comply with Westpower’s connection and operation standards (Westpower Distribution Code).

For this reason, Westpower recommends that you contact ElectroNet Services Ltd., to make sure that your distributed generation complies with all requirements prior to submitting the application. This may involve extra charge.

ElectroNet Services Limited is the wholly owned subsidiary of Westpower Limited, and as such, will be the contractor involved in all dealings with respect to distributed generation.

Westpower may, from time to time, include in the pocket of the folder, product brochures from suppliers of distributed generation equipment. Westpower has no affiliation with suppliers and accepts no responsibility for any information supplied in this manner.

Costs of these distributed generation systems vary widely depending on the technology and the installation; these matters should be discussed with the supplier.

Page 3 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 2 Submission of Application Any person or organisation, who wishes to connect distributed generation capable of generating electricity at a rate of 10 kW or less in total, must apply to Westpower by using the application form attached to this guideline and provide any information in respect of the distributed generation proposed to be connected.

If the application is for an increase in capacity for an existing connection, you must provide extra information about the size (nominal capacity) of the additional generation and the total size (nominal capacity) of all generators at the point of connection.

The application form has to be accompanied by the following attachments:

a. information about the name plate rating (if known), or other suitable evidence that the generating unit is (or will be) only capable of generating electricity at a rate of 10 kW or less;

b. detailed information about the inverter and/or battery (if applicable);

c. technical specification of the equipment that allows the distributed generation to be disconnected from the network on loss of mains voltage;

d. information and justification showing how the distributed generation complies with AS4777 (where appropriate);

e. information and justification showing how the distributed generation complies with the Westpower’s connection and operation standards;

f. the application fee.

Within 5 business days from the date when the application has been received, Westpower will advise you in writing whether or not your application contains all the information required.

3 Application Approval Process Based on the information provided in the application, Westpower will assess whether:

a. the generator will comply at all times with the requirements of the Health and Safety in Employment Act 1992 ; and

b. the distributed generation will comply at all times with the Electricity Act 1992 , and the regulations and rules made under this Act; and

c. the connection of the distributed generation complies with Westpower’s connection and operation standards (Westpower’s Distribution Code).

Within 30 business days following the date a completed application is received, Westpower will notify you in writing whether the application has been approved or declined.

Due to situations which occasionally arise, Westpower may seek an extension of the application processing time. In these circumstances, Westpower will notify you in writing specifying the reasons for the delay and the amount of additional time required to process the application.

You may grant an extension of up to 20 business days and must not unreasonably withhold consent to an extension.

Page 4 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

4 Notice of Intention to Proceed If the application is approved, a written notice must be provided to Westpower confirming whether or not you as “The generator” intend to proceed with the connection and, if so, confirming the details of the generation to be connected.

Notice must be given within 10 business days after the day on which Westpower gives notice of approval to connect distributed generation or, within a longer period of time mutually agreed between Westpower and you.

Failure to give written notice to Westpower within the time limit specified, the application will be considered cancelled and Westpower’s responsibilities under Electricity Governance (Connection of Distributed Generation) Regulations 2007 will no longer apply. This does not prevent you from submitting a new application for connection of distributed generation at a later, subsequent date.

5 Connection Contract Negotiation After receiving the written notice of intention to proceed, both the applicant and Westpower have 30 business days during which they must, in good faith, attempt to negotiate a connection contract.

If no connection contract has been negotiated by the expiry of the negotiating period, the regulated terms attached to this guideline will apply for the connection of distributed generation.

The period for negotiating a connection contract may be extended by mutual agreement between both parties.

6 Contact your Electricity Retailer You must discuss your Generator scheme with an electricity retailer as you may be selling any surplus of energy (exported energy) back to them. You can purchase from, and sell to, any retailer trading in Westpower’s area.

The electricity retailers currently operating on Westpower’s Network are:

- TrustPower - Meridian Energy - Mighty River Power - Genesis Energy - Contact Energy Agreement with an electricity retailer and you must be completed before you can connect your generator to the Westpower network. There are limitations (depending on your metering setup) on using an independent retailer other than the incumbent retailer for the area (TrustPower). This is explained in the next section.

A new meter may need to be installed

Your retailer is responsible for your metering installation. When you contact a retailer, you need to discuss with them the fitting of a new meter, or ask if your present meter will be suitable. The complexity of the metering required will depend on the contract you have arranged with the retailer who is purchasing your exported power.

Your electricity retailer will advise you of any rental costs and data handling fees associated with this metering.

Page 5 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. Minimum metering requirements

You will usually need full “import/export” metering system that measures in each half hour the energy (kWh) used (imported) or injected back into the system (exported).

You can own the meter yourself, or your retailer or meter provider may choose to own it and lease it to you.

This type of metering will need access to a phone line, or could be fitted with a cellular modem, to allow it to be remotely interrogated.

Where the volumes of exported electricity are not likely to be large, you may be able to use a simpler type of metering which uses a second meter to measure the quantity of electricity exported, but will not provide the information of when it was exported.

The simplified metering is illustrated below. While this diagram shows single-phase metering, three-phase metering could be connected in a similar manner. Metering of this type will usually be rented from your retailer who will advise you of any rental costs for this meter, which may only be a few cents per day.

In addition there may be a tariff / meter change fee, depending on your location and your existing metering.

Reverse run stop

If the above simplified metering arrangement is used, it may be only possible for you to purchase from, and sell to, the incumbent retailer (TrustPower). This is because an independent retailer would have to “profile” the energy you generated.

Page 6 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 7 Installation, Testing and Inspection The installation must be undertaken by a qualified trades personnel to ensure compliance with all required building and electrical codes and standards. All wiring associated with the system must comply with AS/NZS 3000 - Electrical Installations (Australian/New Zealand Wiring Rules) or any successive standard or legislation, and be undertaken by a registered electrician where required by legislation. You must also ensure that all building and other consents required are obtained, by discussing the proposal with your local council.

Safety comes first in connection of any generation equipment; safety to you, and safety to others connected to, or working on, Westpower’s electricity network. If your generator continued to operate when there was a power cut, you could cause Westpower’s electricity network to become active at a time it was assumed to be dead. This can cause a serious accident to anyone working on the network, and/or damage to your equipment.

A system complying with Australian Standard (AS) 4777.2 and with protection systems installed in accordance with the AS 4777.3 will provide isolation and prevent this happening.

Your registered electrician should closely follow AS 4777.1 for Installation requirements. This Standard is available from the internet from http://www.standards.govt.nz or http://www.standards.com.au , where it can be downloaded from.

While AS 4777.1 deals primarily with the connection of inverter based systems, the principles covered by this standard shall also be followed for distributed generation systems that do not employ inverters. Also, the EEA – “Guide for the Connection of Generating Plant” may assist you with determining the most appropriate electrical arrangements for the connection and protection of the distributed generator. It can be downloaded from www.eea.co.nz website.

The installation must also comply with Westpower’s Distribution Code.

Please note that after your application has been approved and the steps outlined above are completed, as a minimum you must:

a. test and inspect your distributed generation before connection;

b. give Westpower adequate notice of the tests and inspection – we may send qualified personnel to the site to observe the testing and inspection;

c. provide Westpower with a written test report when testing and inspection is complete, including suitable evidence that the metering installation complies with the metering standards in the rules; and

d. pay the fee specified by Westpower for observing the testing and inspection, up to the maximum fee prescribed in Schedule attached.

Whether or not you entered into a connection contract with Westpower before the period for negotiating a connection contract, you must complete the testing and inspection presented above prior to the connection of distributed generation.

If you have entered into a connection contract with Westpower, your distributed generation will be connected in accordance with that contract as soon as practicable. Otherwise, Westpower will connect the distributed generation on the regulated terms as soon as practicable after the expiry of that period.

Page 7 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 8 Connection Completion and Benefits Once the connection has been completed, you and Westpower must perform all obligations under the negotiated connection contract or regulated terms, in accordance with connection and operation standards.

As owner of the distributed generation installation, you will need to negotiate a contract for the amount of electricity that is sold to an electricity retailer or, to another party via an electricity retailer.

Westpower will credit your retailer for a portion of the delivery charge for each month by netting off the exported energy from the imported energy, subject to the net variable charge never being less than zero.

9 Glossary

Business day is considered as any day of the week other than Saturday, Sunday, or a public holiday (within the meaning of the Holidays Act 2003 )

Connect , in relation to distributed generation, means to be connected to a distribution network or, to a consumer installation that is connected to a distribution network

Distributed generation means equipment used, or proposed to be used, for generating electricity that:

a. is connected, or proposed to be connected, to a distribution network, or to a consumer installation that is connected to a distribution network; and

b. is capable of injecting electricity into that distribution network

Distribution network means the electricity lines, and associated equipment, owned or operated by Westpower, but does not include:

a. the national grid; or

b. an embedded network that is used to convey less than 2.5 GWh per annum

Distributor means a person who supplies line function services to any other person or persons (such as Westpower)

Generator means a person who owns or operates distributed generation

Any term that is defined in Electricity Governance (Connection of Distributed Generation) Regulations 2007 and used, but not defined, in this guideline has the same meaning as in the regulations.

Page 8 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

Application for Connection and Operation of a Distributed Generation System up to 10 kW in total to Westpower’s Network Written agreement from Westpower must be obtained before the system can be connected to Westpower’s network Please return completed form to: Westpower Limited Phone: 03-768 9300 PO Box 388, Greymouth Fax: 03-768 2766 Details of a person/organisation applying to connect a Details of Distributed Generator Distributed Generator to be installed Connection: Name: ______Existing New

Company: ______Residential Commercial

Expected Connection Date: ______Address: ______Manufacturer rating of Equipment: ______Amps: ______kW: ______Phone: ______Volts: ______kVA: ______Cell phone: ______

Number of Phases: Fax: ______Single Phase Three Phases

Email: ______

Details of customer at premises where a Distributed Type: Generator is to be connected (if different from above) Solar PV Wind Turbine Micro Hydro

Gas Turbine Steam Turbine Fuel Cell Name: ______

Other (please specify) Company: ______Address: ______Connected Voltage: ______

Phone: ______Inverter and/or Battery Details (if applicable):

______Cell phone: ______Fax: ______ICP of Installation (from power account): Name of Electrical Contractor:

Certificate of Compliance No: System complies with AS 4777 (where appropriate) Yes, Information attached Not applicable

Equipment that allows the generator to be System complies with Westpower’s Distribution disconnected from network on loss of mains Code voltage: Yes, Information attached Technical Specification Attached

FAILURE TO COMPLETE ALL SECTIONS OF THIS FORM MAY RESULT IN DELAYS PROCESSING THIS APPLIATION I hereby apply to connect a distributed Generator to Westpower’s Network and confirm that the above information is correct:

Signed: ______Name (please print): ______

Date: ______

Westpower agrees to the connection of the above Westpower does not agree to the connection of the above Distributed Generator to Westpower’s Electricity Network Distributed Generator to Westpower’s Electricity Network

Signed: ______Signed: ______

Name (please print): ______Name (please print): ______

Date: ______Date: ______

Page 9 of 9 Issue 1.4: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

DDiissttrriibbuutteedd GGeenneerraattiioonn Guidelines & Application Form

For medium and large generators – total capacity greater than 10 kW

Issue 1.2 / 4 March 2008 Installing distributed See attached guide for generation with greater This document is subject to details of each numbered step. than 10 kW in capacity change prior any notice. Interpretation: Please ensure you have the START HERE Generator - is referred to the person or an latest version. organisation that owns or operates distribution generators. 1 Usually distributed generation above 10kW will System Selection be diesel, wind generation, hydro, gas or co- generation. 2 Initial Application Process – Note: The Generator will submit the initial Stage I application accompanied by additional information and the application fee. Submission of Initial Application Within 5 business days of receiving the application , Westpower will send to the Generator a written notice advising whether the application is complete or not. 3 Note: Westpower will send to the Generator Initial Application information relevant to the application within 30 business days after the date of receipt Evaluation Process of a completed application .

4 Note: The Generator may request further information that is reasonably necessary to enable the Generator to consider and act on Stage I Completed the information given to him. Westpower will provide this information within 10 business days of the request being received . 5 Final Application Process – Submission of Final Note: The Generator must make a final Stage II application, within 12 months after receiving Application the information at Stage I . 6 Note: Westpower will send a written notice to the Generator, stating whether the application is successful or not within: - 45 business days (capacity ≤ 1MW) Final Application - 60 business days (1MW < capacity< 5MW) Approval Process - 80 business days (capacity ≥ 5MW) After the date of receipt of final application . One or more extension of time by mutual agreement of up to 40 business days may be granted by the Generator. 7 Note: The Generator must give a written notice to Westpower confirming whether or not he Notice of Intention to intends to proceed with the connection, within Proceed 30 business days after the day on which the notice of approval has been received .

Continued on the next page

Page 1 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. Continued from previous page 8 Connection Process Connection Contract Note: Both parties must, in good faith, attempt to negotiate a connection contract within 30 Negotiation business days . 9 Contact your Note: A new meter may be fitted at Generator location, either by the retailer or the Electricity Retailer “Generator” may arrange it itself. 10 Note: The Generator must comply with all regulations and local bylaws. Installation, Testing and The Generator must use a Registered Inspection Electrician who must follow the AS4777 regulations as well as all NZ safety regulations and standards. 11 The income from this generation will Note: Westpower will credit your retailer for a depend on the price negotiated with the Connection Completion portion of the delivery charge for each month retailer. by netting off the exported energy from the and Benefits imported energy, subject to the net variable charge never being less than zero.

Page 2 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

Contents

GUIDE TO INSTALLING DISTRIBUTED GENERATION WITH CAPACITY GREATER THAN 10KW 4

Introduction 4

1. System Selection 4

2. Submission of Initial Application 5

3. Initial Application Evaluation Process 5

4. Stage I Completed 5

5. Submission of Final Application 6

6. Final Application Approval Process 6

7. Notice of Intention to Proceed 7

8. Connection Contract Negotiation 7

9. Contact your Electricity Retailer 7

10. Installation, Testing and Inspection 8

11. Connection Completion and Benefits 9

Glossary 9

Application for connection and operation of a distributed generation system above 10 kW in total to Westpower’s network 10

Page 3 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

Guide to installing distributed generation with capacity greater than 10kW

Introduction

This informational guide is for individuals or organisations who want to connect medium to large distributed generation systems (above 10kW) to Westpower’s Distribution Network, to generate electricity and possibly export energy into our network. These systems are usually three-phase, and are typically installed at industrial, commercial or rural sites. Any agreement to connect distributed generation to our network may include costs associated with design and reinforcement of the existing network. If network reinforcement is required, the design and schedule for this project work will need to be factored into your installation planning. Projects may also be constrained by network resources and restrictions. Larger generators (above 1000kW) may be subjected to Transpower's terms and conditions. If this is the case, we will facilitate responses to Transpower's requests. The generator (owner) will be responsible for providing any requested information to us to assist in the process. Distributed generation must meet all relevant statutory and regulatory requirements and comply with all applicable safety standards. If a distributed generator is connected to our network, The generator is responsible for safety equipment and procedures must be in place to ensure safe interaction between your distributed generator and our network. More information about distributed generation is available on the Electricity Commission’s website: http://www.electricitycommission.govt.nz For information about connecting smaller distributed generation, see “Guide to installing distributed generation with capacity less than 10kW” .

These requirements apply to all existing or prospective distributed generators that may operate in parallel with the distribution network regardless of whether energy is exported or not.

These requirements do not apply to generators that have no connection to the distribution network.

1. System Selection

Usually distributed generations above 10kW are diesel or wind generation. Occasionally it could be hydro, gas or co-generation. Your system must comply at all times with the requirements of the Health and Safety in Employment Act 1992 , Electricity Act 1992 and the rules and regulations made under the Electricity Act 1992. Your distributed generation system must also comply with the Westpower connection and operation standards (Westpower Distribution Code). For this reason, Westpower recommends to contact ElectroNet Services Ltd., to make sure that your distributed generation complies with all these requirements prior to submitting the application. This may involve extra charge. All distributed generators connected directly to Westpower’s low voltage distribution network shall, as a minimum requirement, comply with the requirements of the “EEA Guide for the Connection of Generating Plant” ( http://www.eea.co.nz ) and shall be installed in accordance with NZECP4:1993 and/or NZS/AS 3000:2000 - Electrical Installations (known as the Australian/New Zealand Wiring Rules) or any subsequent revision.

The general requirements outlined in AS 4777 shall also be followed, where the generation plant uses inverters. The presence of distributed generation shall not restrict Westpower’s requirements for switching on the distribution network.

Page 4 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 2. Submission of Initial Application

Any person or organisation who wishes to connect distributed generation that is capable of generating electricity at a rate above 10 kW in total, must apply to Westpower by using the application form attached to this guideline and provide any information in respect of the distributed generation proposed to be connected. If the application is for an increase in capacity for an existing connection, the generator has to provide information about the size (nominal capacity) of the additional generation and the size (nominal capacity) of all generators at the point of connection. The application form has to be accompanied by detailed information requested in the form and the application fee. Within 5 business days from the date when the application has been received, Westpower will advise you in writing whether or not your application contains all the information required.

3. Initial Application Evaluation Process

Within 30 business days of receiving your completed initial application Westpower will provide you with the following information: a. the capacity of our network, including both the design capacity (including fault levels) and actual operating levels; b. the extent to which connection and operation of your distributed generation may result in a breach of the relevant standards for safety, voltage, power quality, and reliability of supply to other connected parties; c. any measures or conditions (including modifications to the design and operation of our network or to the operation of your distributed generation) that may be necessary to address the matters referred to in paragraphs (a) and (b); d. the approximate costs of any network-related measures or conditions identified under paragraph (c) and an estimate of time constraints or restrictions that may delay the connecting of your distributed generation; e. any further detailed investigative studies that we reasonably consider are necessary to identify any potential adverse effects on the system resulting from the proposed connection, together with an indication of: i. whether we agree to you, or a suitably qualified agent for you, undertaking those studies; or ii. if not, whether we could undertake those studies and, if so, the estimated cost of the studies that you would be charged; f. any obligations to other parties that may be imposed on us and that could affect your distributed generation (for example obligations to Transpower, in respect of other networks, or under the Electricity Governance Rules); g. any additional information or documents that we consider would assist your application; and h. Information about the extent to which planned and unplanned outages may affect the operation of your distributed generation.

4. Stage I Completed

You can request further information from us which is reasonably necessary to enable you to consider and act on the information provided to you in response to your initial application. We will provide this further information within 10 business days of the request being received.

Page 5 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 5. Submission of Final Application

If you decide to proceed with the connection, you must submit to Westpower a final application together with the results of any investigative studies that were identified by Westpower under clause 3.(e) above, within 12 month after receiving the information for the initial application (stage I). After receiving your final application, Westpower will notify all other persons and organisations that made an initial application for connection of distributed generation to that particular part of the network, that Westpower’s decision would be affected by the connection of the distributed generation that is the subject of the final application.

6. Final Application Approval Process

Westpower will assess, based on the information provided in the final application, whether:

a. the generator will comply at all times with the requirements of the Health and Safety in Employment Act 1992 ;

b. the distributed generation will comply at all times with the Electricity Act 1992 , and the regulations and rules made under this Act; and

c. the connection of the distributed generation complies with Westpower’s connection and operation standards (Westpower’s Distribution Code).

Within the time frame specified below, Westpower will give you a notice in writing stating whether the application has been approved or declined. The time frame below is considered after the date of receipt of the final application.

Time within Westpower will decide the final application

Distributed Generation Capacity Time Frame

• Less than 1 MW 45 business days

• Between 1 MW and 5 MW 60 business days

• Greater than 5 MW 80 business days

Due to situations which occasionally arise, Westpower may seek one or more extensions of the final application processing time. In these circumstances, Westpower will send you a notice in writing specifying the reasons and the additional time required for processing the application.

You may grant an extension of up to 40 business days and must not unreasonably withhold consent to an extension.

Page 6 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 7. Notice of Intention to Proceed

Once the final application to connect distributed generation is approved, you must provide a written notice to Westpower confirming whether or not you intend to proceed with the connection and if so, confirming:

a. the details of the generation to be connected; and

b. that you accept all the conditions (or other measures) which we have specified as conditions of the connection.

Notice must be given to Westpower within 30 business days after the day you received the approval to connect distributed generation, or within a longer period of time mutually agreed between Westpower and you.

Failure to give prior written notice to Westpower within the time limit specified, the application will be considered cancelled and Westpower’s responsibilities under Electricity Governance (Connection of Distributed Generation) Regulations 2007 will no longer apply. This does not prevent you from submitting a new application for connection of distributed generation.

8. Connection Contract Negotiation

After the written notice of intention to proceed has been received by Westpower, both the applicant and Westpower have 30 business days (starting on the date on which the Westpower receives the notice) during which they must, in good faith, attempt to negotiate a connection contract.

If no connection contract has been negotiated by the expiry of the period for negotiating a connection contract, the regulated terms attached to this guideline will apply for the connection of distributed generation.

The period for negotiating a connection contract may be extended by mutual agreement between both parties.

9. Contact your Electricity Retailer

You must discuss your generator scheme with an electricity retailer as you may be selling any surplus of energy (exported energy) back to them. You can purchase from, and sell to, any retailer trading in Westpower’s area.

The electricity retailers currently operating on Westpower’s Network are: • TrustPower • Meridian Energy • Mighty River Power • Genesis Energy • Contact Energy You need to have an agreement with an electricity retailer completed before you can connect your generator to Westpower network.

Page 7 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 10. Installation, Testing and Inspection All wiring associated with the system must comply with AS/NZS 3000 - Electrical Installations (Australian/New Zealand Wiring Rules) or any successive standard or legislation, and be undertaken by a registered electrician, where required by the legislation. You must also ensure that all building and other consents required are obtained, by discussing the proposal with your local council.

A system complying with Australian Standard (AS) 4777.2 and with protection systems installed in accordance with the AS 4777.3 will provide isolation and prevent this happening.

Your registered electrician should closely follow AS 4777.1 for Installation requirements. This Standard is available from http://www.standards.govt.nz or http://www.standards.com.au , where it can be downloaded.

While AS 4777.1 deals primarily with the connection of inverter based systems, the principles covered by this Standard shall also be followed for Distributed Generation systems that do not employ inverters. Also, the EEA – “Guide for the Connection of Generating Plant” may assist you with determining the most appropriate electrical arrangements for the connection and protection of the distributed generator. It can be downloaded from www.eea.co.nz website.

The installation must also comply with Westpower’s Distribution Code.

For generators above 10 kW that are connected to Westpower’s HV network, the minimum metering requirement will be to measure active and reactive energy, in half-hour intervals. This will require 4-quadrant “Time of Use” (TOU) metering to be installed. This metering will require either a telephone connection or a cellular connection for remote interrogation.

You should discuss the metering with your electricity retailer first, as they may install the required metering or choose to modify your existing metering.

Please note that after your application has been approved and the steps outlined above are complete, as a minimum you must:

a. test and inspect your distributed generation before connection;

b. give Westpower adequate notice of the tests and inspection – we may send qualified personnel to the site to observe the testing and inspection;

d. pay the fee specified by Westpower for observing the testing and inspection, up to the maximum fee prescribed in Schedule attached.

The following tests should be carried out on both generation and associated control equipment:

• secondary injection testing of all protection

• proof of tripping circuits for protection operation

• automatic synchronising and interlocking

• load and VARs sharing stability

• loss of mains testing

• and compliance of warning notices and labelling.

Page 8 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. 11. Connection Completed - Benefits

Once the connection has been completed, you and Westpower must perform all obligations under the negotiated connection contract or regulated terms in accordance with connection and operation standards.

As owner of the distributed generation installation, you will need to negotiate a contract for the amount of electricity that is sold to an electricity retailer or to another party via an electricity retailer.

Glossary

Business day means any day of the week other than Saturday, Sunday, or a public holiday (within the meaning of the Holidays Act 2003 )

Connect , in relation to distributed generation, means to be connected to a distribution network or to a consumer installation that is connected to a distribution network

Distributed generation means equipment used, or proposed to be used, for generating electricity that:

a. is connected, or proposed to be connected, to a distribution network, or to a consumer installation that is connected to a distribution network; and

b. is capable of injecting electricity into that distribution network

Distribution network means the electricity lines, and associated equipment, owned or operated by Westpower, but does not include:

a. the national grid; or

b. an embedded network that is used to convey less than 2.5 GWh per annum

Distributor means a person who supplies line function services to any other person or persons (such as Westpower)

Generator means a person who owns or operates distributed generation

Any term that is defined in Electricity Governance (Connection of Distributed Generation) Regulations 2007 and used, but not defined, in this guideline has the same meaning as in the regulations.

Page 9 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version.

Application for connection and operation of a distributed generation system above 10 kW in total to Westpower’s network

Please return completed form to: Westpower Limited Phone: 03-768 9300 PO Box 388, Greymouth Fax: 03-768 2766

Details of your proposed distributed generation

The owner of the Distributed Generator must provide sufficient information to Westpower to enable successful connection to the Distribution Network without affecting other connected Customers on the network.

For all existing electricity connections and, when applying for a new electricity connection we will evaluate the total export capacity of your proposed distributed generation (i.e. the maximum amount of electricity that your generation is able to inject into our network), to assess whether your proposed generation will exceed the capacity of your electricity connection. To complete this evaluation, we will need evidence of your generation capacity – normally a kilowatt rating.

Please attach to your application a copy of the manufacturer’s specifications and/or, a photograph of the “name plates” for your proposed generation as evidence of its capacity.

Additional information may be required if the manufacturer’s specifications are not comprehensive.

The extent of the information required will depend on the size and type of generation. This information will remain confidential between us unless agreed otherwise, however we reserve the right to release information about the distributed generation to meet our obligations to Transpower, the operator of the national grid, or as required by the Electricity Governance (Connection of Distributed Generation) Regulations 2007.

We will use the information supplied in your application to evaluate and model our network to decide what method of connection would be needed and at which voltage level the connection should be made.

You must obtain our written agreement before you can connect distributed generation to our network

Details of a person/organisation applying to connect a Details of customer at premises where a Distributed Distributed Generator Generator is to be connected

Name: Name:

Company: Company:

Address: Address:

Phone: Phone:

Cell phone: Cell phone:

Fax: Fax:

Email:

ICP of Installation (from power account): Connection: Existing New

Residential Commercial

Expected Connection Date:

Page 10 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. Technical information for distributed Generators The information required to be supplied to Westpower for all Distributed Generation is as follows: Data required for each Distributed Generator

10÷100 100÷750 >750 Data required for range of power output kVA kVA kVA

Type of generator unit - synchronous, asynchronous, etc;

Type of prime mover;

Rated terminal Voltage (kV)

Rated generator capacity (kVA);

Rated minimum power factors (both over and under excited) at rated kVA;

Maximum continuous active power generated (kW);

Maximum short term active power generated (kW);

For asynchronous generators, reactive power requirements (kVAr);

Anticipated operating regime e.g. continuous, intermittent, peak lopping;

Method of Voltage control;

Generator transformer details, if applicable;

Interface Arrangements

10÷100 100÷750 >750 Data required for range of power output kVA kVA kVA

The means of connection and disconnection;

The means of synchronisation between the Distribution Network and the Distributed Generator;

Generator neutral and earthing arrangements;

Technical Data

10÷100 100÷750 >750 Data required for range of power output kVA kVA kVA

Lowest frequency at which the Distributed Generator can run

Actual low frequency trip setting and time delay

Actual over frequency trip setting and time delay.

Minimum operating power;

Generator kW/kVAr capability charts (at lower Voltage terminals at nominal and ±10% of nominal voltage) at:

(a) maximum short term power;

(b) maximum continuous power;

(d) 50% output

Page 11 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. (e) minimum power

Auxiliary power requirements at:

(a) Rated power output

(b) Minimum power output

Start up times to minimum operating power:

(a) From Cold

(b) From Warm

Normal ramp rate

Time for cold start to full rated output;

Inertia constant (secs) (whole machine);

Stator resistance;

Direct axis synchronous reactance;

Quadrature axis synchronous reactance;

Direct axis transient reactance;

Quadrature axis transient reactance;

Direct axis sub transient reactance;

Quadrature axis sub transient reactance;

Leakage (positive sequence) reactance;

Negative sequence reactance;

Zero sequence reactance;

Earthing resistance/reactance;

Time constants:

(a) Direct axis transient open circuit;

(b) Quadrature axis transient open circuit;

(d) Quadrature axis sub transient open circuit;

Generator transformer details (impedance, tap changer, vector group, earthing, maximum over voltage capability at rated frequency etc.);

Type of excitation system: (block diagram/specifications, forward/feedback gains/time constants and limits);

Speed governor and prime mover data: (detailed functional description of governing system with all subsystems including system control and turbine time).

Page 12 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. Control arrangements

It is preferable for Distributed Generators not subject to despatch, to export reactive energy (kVArh) whenever real energy (kWh) is being exported onto the Distribution Network. Subject to network voltage remaining within agreed limits, the desired power factor should be between 0.85 and 0.9 – see sections 6 and 7 regarding islanding detection requirements.

Westpower will advise if continuously acting fast response automatic excitation and/or governor control systems are required to control the Distributed Generator voltage and frequency without instability over the entire operating range of the Distributed Generator. This will depend on the size and type of Distributed Generator and the characteristics of the part of the Distribution Network to which it is connected to.

Protection

The Distributed Generator shall be equipped with the appropriate protection elements as required by the “EEA Guide for the Connection of Generating Plant”. Distributed Generator owners are to consult Westpower with regard to any special arrangements or protection that may be necessary due to the characteristics of the Distribution Network.

PROTECT REQUIREMENTS

10 ÷ 100 kW 100 ÷ 750 kW > 750 kW

Generator Circuit Breaker

Dedicated Transformer

Disconnect/Isolate Switch

Over-voltage protection

Under-voltage protection

Over-frequency protection

Under-frequency protection

Earth-fault protection

Over-current Voltage Restraint Protection

Neutral Voltage Displacement Protection

Synchronisation

Loss of Network supply (Islanding see section 7)

Power factor or Voltage Regulation Equipment

Page 13 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. The protection associated with a Distributed Generator shall co-ordinate with the protection associated with the Distribution Network as follows:

(a) In order to reduce to a minimum the impact of faults on the Distribution Network, the generator must meet target clearance times, that are agreed between Westpower and the generator, for fault power flowing from the Distribution Network, Westpower will ensure that the relevant protection settings are compatible with the target clearance times that are specified by Westpower;

(b) The settings of any protection which controls a circuit breaker, or the operating parameters of any automatic switching device at any Network Connection Point, shall be approved by Westpower;

(c) It will be necessary for the Distributed Generator protection to co-ordinate with any auto re- close settings specified by Westpower, and;

(d) Any Distributed Generator connected to the Distribution Network may be required to withstand, without tripping, the negative phase sequence loading incurred during the clearance of a close-up phase-to-phase fault by Distribution Network back-up protection and which is within the plant short time rating.

Islanding

The part of the Distribution Network to which a Distributed Generator is connected, may inadvertently, or during emergency conditions, become detached from the rest of the Distribution Network, creating an "island". Westpower will decide based on the local Distribution Network conditions, whether islanding is a credible possibility, and whether it is desirable for the Distributed Generator to continue to generate while connected to the islanded section of the Distribution Network. Westpower would generally require that the Distributed Generator disconnect from the Distribution Network upon the detection of islanding.

If no facilities exist for the subsequent re-synchronisation with the rest of the Distribution Network, the Distributed Generator owner will, under Westpower's control, disconnect the Distributed Generator prior to reconnection of the island to the rest of the Distribution Network and the subsequent re- synchronisation of the Distributed Generator.

Where Westpower determines that islanding is a credible possibility and that the Distributed Generator is to disconnect upon detection, Westpower will require that the Distributed Generator always export more reactive power than any credible islanded load can absorb. The Distributed Generator owner is to install equipment that is capable of detecting the resulting reduction in reactive power export/increase in voltage which would be caused by islanding and disconnect the Generator from the Distribution Network.

Under emergency conditions, some Distributed Generators may continue to operate outside the statutory frequency limits. Where Distributed Generators are connected to the Distribution Network at a Voltage level of 11kV or less, it is possible that there could be automatic low frequency load disconnection equipment within the load. Consequently, Distributed Generator owners should ensure that all protection on their Distributed Generator’s has settings to co-ordinate with those on the automatic low frequency load shedding equipment. Westpower will provide information on this equipment on request.

Page 14 of 14 Issue 1.2: 4 March 2008 This document is subject to change prior any notice. Please ensure that you have the latest version. Fees for connection of distributed generation Fees for connection of distributed generation

The following fees are in accordance with Electricity Governance (Connection of Distributed Generation) Regulations 2007, and applied to any application to connect a distributed generation to Westpower’s network. The fees are in relation to distributed generation capacity and are charged for each activity prescribed below, individually.

Activity Fee [$] Fee for application for distributed generation 10 kW or less in total

Distributed generation of 10 kW or less in total 200

Fee for initial application for distributed generation above 10 kW

Distributed generation of above 10 kW in total but less than 100 kW in total 500 Distributed generation of 100 kW or above in total but less than 1 MW 1,000 Distributed generation of 1 MW and above 5,000

Fee for observation of testing and inspection

Distributed generation of 10 kW or less in total 60 Distributed generation of above 10 kW in total but less than 100 kW in total 120 Distributed generation of 100 kW and above 1,200

Page 1 of 1 Regulated terms for connection of distributed generation Regulated terms for connection of distributed generation

NOTE: These terms needs to be interpreted in conjunction with Electricity Governance (Connection of Distributed Generation) Regulations 2007

General

1. Overview of regulated terms 2. Interpretation 3. General obligations

Meters

4. Installation of meters and access to metering information

Access

5. Right of Distributor to access Generator's premises 6. Process if Distributor wants to access Generator's premises 7. Distributor must not interfere with Generator's equipment 8. Generator must not interfere with, and must protect, Distributor's equipment 9. Obligation to notify if interference with Distributor's equipment or theft of electricity is discovered

Interruptions and disconnections

10. General rule about interruptions 11. Circumstances allowing Distributor to temporarily disconnect distributed generation 12. Obligations if distributed generation temporarily disconnected by Distributor 13. Adverse operating effects 14. Interruptions by Generator 15. Permanent disconnections

Confidentiality

16. Meaning of confidential information 17. General rule about confidentiality 18. When confidential information can be disclosed 19. Disclosures by employees, agents, etc

Pricing

20. Pricing principles

Liability

21. General rule about liability 22. Exceptions to general rule about liability 23. Limits on liability 24. Liability clauses do not apply to fraud, wilful breach, and breach of confidentiality 25. Indemnity 26. Force majeure

Page 1 of 8 Regulated terms for connection of distributed generation

General

1. Overview of regulated terms

This schedule sets out the regulated terms for connection of distributed generation that apply to the connection of distributed generation that is connected in accordance with regulation 9 and Schedule 1.

2. Interpretation

These regulated terms must be interpreted--- a. in light of the purpose of these regulations; and b. so as to give business efficacy to the relationship between the Distributor and the Generator created by these regulations; and c. the Distributor means Westpower Ltd.; and d. the Generator means the person who owns or operates distributed generation.

3. General obligations

1) The Distributor and the Generator must perform all obligations under these regulated terms in accordance with connection and operation standards (where applicable). 2) The Distributor and the Generator must each construct, interconnect, operate, test, and maintain their respective equipment in accordance with--- a. these regulated terms; and b. connection and operation standards (where applicable); and c. the rules. 3) The Generator must, subject to subclause (2), construct, interconnect, operate, test, and maintain its distributed generation in accordance with— a. reasonable and prudent operating practice; and b. the applicable manufacturer's instructions and recommendations. 4) The Distributor and Generator must each be fully responsible for the respective facilities they own or operate. 5) The Distributor and Generator must each ensure that their respective facilities adequately protect each other's equipment, personnel, and other persons and their property, from damage and injury. 6) The Generator must comply with any conditions that were specified by the Distributor under clause 18 of Schedule 1 as conditions of the connection (or, to the extent that those conditions were the subject of a dispute under clause 20(3) of that schedule, or of negotiation during the period for negotiation of the connection contract, the conditions or other measures as finally resolved or negotiated).

Meters

4. Installation of meters and access to metering information

1) The Generator must ensure that 1 or more metering installations are installed that— a. separately record any inflows of electricity from the distribution network and any electricity injected into the distribution network; and b. fully comply with the rules. NW70.10.09 31 August 2007 (Amendment 0) 2) The Generator must provide to the Distributor, at the Distributor's request, the interval data and cumulative data recorded by those metering installations. 3) The Distributor may require that reactive metering be installed for meters that are category 2 or above (as defined in the rules). 4) The Distributor's requirements in respect of metering measurement and accuracy must be consistent with the rules.

Page 2 of 8 Regulated terms for connection of distributed generation

Access

5. Right of Distributor to access Generator's premises

1) The Generator must provide the Distributor, or a person appointed by the Distributor, with safe and unobstructed access onto the Generator's premises at all reasonable times--- a. for the purpose of installing, testing, inspecting, maintaining, repairing, replacing, operating, reading, or removing any of the Distributor's equipment and for any other purpose related to these regulated terms; and b. for the purpose of verifying metering information; and c. for the purpose of ascertaining the cause of any interference to the quality of delivery services being provided by the Distributor to the Generator; and d. for the purpose of protecting, or preventing danger or damage to, persons or property; and e. for the purposes of reconnecting or disconnecting the distributed generation; and f. for any other purpose relevant to either or both of--- i. the Distributor connecting distributed generation in accordance with connection and operation standards: ii. maintaining the integrity of the distribution network. 2) The rights of access conferred by these regulated terms are in addition to any right of access the Distributor may have under any statute or regulation or contract.

6. Process if Distributor wants to access Generator's premises

1) The Distributor must exercise its right of access under clause 5 by,--- a. wherever practicable, giving to the Generator reasonable notice of its intention and of the purpose for which it will exercise its right of access; and b. causing as little inconvenience as practicable to the Generator in carrying out its work; and c. observing reasonable and prudent operating practice at all times; and d. observing any reasonable security or site safety requirements that are made known to the Distributor by the Generator. 2) However, the Distributor may take all reasonable steps to gain immediate access where it reasonably believes there is immediate danger to persons or property. NW70.10.09 31 August 2007 (Amendment 0)

7. Distributor must not interfere with Generator's equipment

1) The Distributor must not interfere with the Generator's equipment without the prior written consent of the Generator. 2) However, if emergency action has to be taken to protect the health and safety of persons, or to prevent damage to property, the Distributor--- a. may interfere with the Generator's equipment without prior written consent; and b. must, as soon as practicable, inform the Generator of the occurrence and circumstances involved.

8. Generator must not interfere with, and must protect, Distributor's equipment

1) The Generator must not interfere with the Distributor's equipment without the prior written consent of the Distributor. 2) However, if emergency action has to be taken to protect the health and safety of persons, or to prevent damage to property, the Generator--- a. may interfere with the Distributor's equipment without prior written consent; and b. must, as soon as practicable, inform the Distributor of the occurrence and circumstances involved. 3) The Generator must protect the Distributor's equipment against interference and damage.

Page 3 of 8 Regulated terms for connection of distributed generation 9. Obligation to notify if interference with Distributor's equipment or theft of electricity is discovered 1) If the Distributor or the Generator discover evidence of interference with the Distributor's equipment, or evidence of theft of electricity, the party discovering the interference or evidence must notify the other party within 24 hours. 2) If interference with the Distributor's equipment at the Generator's installation is suspected, the Distributor may itself carry out an investigation and present the findings to the Generator within a reasonable period. 3) The cost of the investigation--- a. must be borne by the Generator if it is discovered that interference by the Generator, or by its subcontractors, agents, or invitees, has occurred, or if the interference has been by a third party, and the b. Generator has failed to provide reasonable protection against interference to the Distributor's equipment; and c. must be borne by the Distributor in any other case.

Interruptions and disconnections

10. General rule about interruptions

The Distributor must make reasonable endeavours to ensure that the connection of the distributed generation is not interrupted. NW70.10.09 31 August 2007 (Amendment 0)

11. Circumstances allowing Distributor to temporarily disconnect distributed generation

Despite clause 10, the Distributor may interrupt the connection service, or curtail either the operation or output of the generation, or both, and may temporarily disconnect the distributed generation in any of the following cases: a. in accordance with the Distributor's congestion management policy: b. if reasonably necessary for planned maintenance, construction, and repairs on the distribution network: c. for the purpose of protecting, or preventing danger or damage to, persons or property: d. if the Generator fails to allow the Distributor access as required by clause 5: e. if the Generator modifies its distributed generation, without prior authorization from the Distributor, in such a way that it has a material effect on the Generator's injection of electricity into the network: f. in accordance with clause 13 (adverse operating effects).

12. Obligations if distributed generation temporarily disconnected by Distributor

1) The Distributor must make reasonable endeavours to--- a. notify the Generator before any interruption under clause 11; and b. co-ordinate with the Generator to minimise the impact of the interruption. 2) The Distributor and the Generator must co-operate to restore the distribution network and the distributed generation to a normal operating state as soon as is reasonably practicable following temporary disconnection. 3) In the case of a forced outage, the Distributor must, subject to the need to restore the distribution network, make reasonable endeavours to restore service to the Generator and to advise the Generator of the expected duration of the outage.

13. Adverse operating effects

1) The Distributor must notify the Generator as soon as is reasonably practicable if it reasonably considers that operation of the distributed generation may--- a. adversely affect the service provided to other distribution network customers; or b. cause damage to the distribution network or other facilities; or

Page 4 of 8 Regulated terms for connection of distributed generation c. present a hazard to any person. 2) If, after receiving that notice, the Generator fails to remedy the adverse operating effect within a reasonable time, the Distributor may disconnect the generation upon reasonable notice (or without notice when reasonably necessary in the event of an emergency or hazardous situation).

14. Interruptions by Generator

1) This clause applies to any connected distributed generation above 10 kW in total. NW70.10.09 31 August 2007 (Amendment 0) 2) The Generator must notify the Distributor of any planned outages and must make reasonable endeavours to advise the Distributor of any event that affects network operations. 3) The Generator must make reasonable endeavours to notify the Distributor of the interruption and to co- ordinate with the Distributor to minimise the impact of the interruption.

15. Permanent disconnections

1) Despite clause 10, the Distributor may permanently disconnect distributed generation in the following circumstances: a. on receipt of a request from a Generator: b. without notice, if a Generator has failed to comply with either the connection or safety requirements of the Distributor and there is an ongoing risk to persons or property. c. without notice, on receipt of the registry inactive status with reason "De-energised---ready for decommissioning" where the trader has de-energised a site, attempted to recover the meters, and updated the registry to that status: d. on at least 10 business days' notice of intention to disconnect, if--- i. the Generator has not injected electricity into the network at any time in the preceding 12 months; and ii. the Distributor has not been notified by the Generator of reasons for the non-injection; and iii. the Distributor has reasonable grounds for believing that the Generator has ceased to operate the distributed generation. 2) If the point of connection is to remain as a consumption point, where applicable the Generator must cancel any seller contracts and ensure the trader decommissions the embedded generation network service point with the reconciliation manager. The site must revert to a standard ICP. 3) If the point of connection is to be disestablished in its entirety, a permanent disconnection must be performed by means of isolation of generation by removal of all electrical connections to Distributor's lines. The Distributor must notify the Generator within 2 business days of the work having been completed. Where applicable, the Generator must cancel any seller contracts, ensure that the retailer decommissions the embedded generation network service point with the reconciliation manager, and that the retailer arranges decommissioning of the ICP. 4) Once having the status of decommissioned on the registry, the ICP must not be used again. The process for new connections in Part 1 or 2, as the case may be, of Schedule 1 must be followed if generation is to be connected again at this point of connection. 5) Both the Distributor and the Generator (through notification to a retailer where selling to a retailer) must ensure that the registry is correctly updated throughout this process in accordance with the rules. NW70.10.09 31 August 2007 (Amendment 0)

Confidentiality

16. Meaning of confidential information In this schedule ,---

confidential information means all data and other information of a confidential nature provided by one party ( A) to the other ( B) under these regulated terms, but excludes--- a. information known to B before the date it was provided to B by A and that was not obtained directly or indirectly from A:

Page 5 of 8 Regulated terms for connection of distributed generation b. information obtained bona fide from another person who is in lawful possession of the information and who did not acquire the information directly or indirectly from A under an obligation of confidence.

17. General rule about confidentiality

1) Each party must preserve the confidentiality of confidential information, and must not directly or indirectly reveal, report, publish, transfer, or disclose the existence of any confidential information, except as permitted in subclause (2). 2) Each party must only use confidential information for the purposes expressly permitted by these regulated terms.

18. When confidential information can be disclosed

Either party may disclose confidential information in any of the following circumstances: a. if the Generator and Distributor agree in writing to the disclosure of information: b. if disclosure is expressly provided for under these regulated terms: c. if, at the time of receipt by the party, the confidential information is in the public domain or if, after the time of receipt by either party, the confidential information enters the public domain (except where it does so as a result of a breach by either party of its obligations under this clause or a breach by any other person of that person's obligation of confidence): d. if either party is required to disclose confidential information by--- i. any statutory or regulatory obligation, body, or authority; or ii. any judicial or arbitration process; or iii. the regulations of any stock exchange upon which the share capital of either party is from time to time listed or dealt in; or iv. the rules: e. if the confidential information is released to the officers, employees, directors, agents, or advisors of the party, provided that--- i. the information is disseminated only on a need-to-know basis; and ii. recipients of the confidential information have been made fully aware of the party's obligations of confidence in relation to the information; and iii. any copies of the information clearly identify it as confidential information: NW70.10.09 31 August 2007 (Amendment 0) f. if the confidential information is released to a bona fide potential purchaser of the business or any part of the business of a party, subject to that bona fide potential purchaser having signed a confidentiality agreement enforceable by the other party in a form approved by that other party, and that approval may not be unreasonably withheld.

19. Disclosures by employees, agents, etc

To avoid doubt, a party is responsible for any unauthorised disclosure of confidential information made by that party's officers, employees, directors, agents, or advisors.

Pricing

20. Pricing Principles

Connection charges that are payable by the Generator must be determined in accordance with the pricing principles set out in Schedule 4.

Page 6 of 8 Regulated terms for connection of distributed generation Liability

21. General rule about liability

1) If a Distributor or Generator breaches any of the regulated terms (whether by act or omission), that party is liable to the other. 2) The Generator's and the Distributor's liability to each other is limited to damages for any direct loss caused by that breach. 3) This clause does not limit the liability of either party to pay all charges and other amounts due under these regulations or the regulated terms.

22. Exceptions to general rule about liability

1) Neither the Distributor nor the Generator, nor any of its officers, employees, directors, agents, or advisors, are in any circumstances liable to the other party for--- a. any indirect loss, consequential loss (including, but not limited to, incidental or special damages), loss of profit, loss of revenue (except any liability under clause 21(3), loss of use, loss of opportunity, loss of contract, or loss of goodwill; or b. any loss resulting from the liability of the other party to another person; or c. any loss or damage incurred by the other party if, and to the extent that, this results from any breach of the regulated terms or any negligent action. 2) The Distributor is not liable, except to the extent caused or contributed to by the Distributor in circumstances where the Distributor was not acting in accordance with the regulations (including these regulated terms), for--- a. any momentary fluctuations in the voltage or frequency of electricity conveyed to or from the distributed generation's point of connection or nonconformity with harmonic voltage and current levels; or NW70.10.09 31 August 2007 (Amendment 0) b. any failure to convey electricity to the extent that--- i. the failure arises from any act or omission of the Generator or other person, excluding the Distributor and its officers, employees, directors, agents, or advisors; or ii. the failure arises from--- a. a failure to convey or a reduction of injection or supply of electricity into the distribution network; or b. an interruption in the conveyance of electricity in the network, at the request of the system operator or under a nationally or regionally co-ordinated response to an electricity shortage; or iii. the failure arises from any defect or abnormal conditions in or about the Generator's premises; or iv. the Distributor was taking any action in accordance with the regulations or regulated terms; or v. the Distributor was prevented from making necessary repairs (for example, by police at an accident scene). 3) The Generator is not liable for--- a. any failure to perform any obligation under these regulated terms caused by the Distributor's failure to comply with the obligation; or b. any failure to perform any obligation under these regulated terms arising from any defect or abnormal conditions in the distribution network.

23. Limits on liability

1) The maximum total liability of each party, as a result of a breach of these regulated terms, must not in any circumstances exceed, in respect of a single event or series of events arising from the same event or circumstance, the lesser of--- a. the direct damage suffered or the maximum total liability that the party bringing the claim against the other party has at the time that the event (or, in the case of a series of related events, the first of such events) giving rise to the liability occurred; or

Page 7 of 8 Regulated terms for connection of distributed generation b. $1,000 per kW of installed capacity up to a maximum of $5 million.

24. Liability clauses do not apply to fraud, wilful breach, and breach of confidentiality

The exceptions in clause 22, and the limits on liability in clause 23, do not apply--- a. if a Distributor or Generator, or any of its officers, employees, directors, agents, or advisors, has acted fraudulently or wilfully in breach of these regulated terms; or b. to a breach of confidentiality under clause 17 by either party.

25. Indemnity

1) Each party (the indemnifying party) must indemnify the other for damages claimed by third parties to the extent that the loss is caused by a breach of NW70.10.09 31 August 2007 (Amendment 0) these regulated terms by the indemnifying party, where the loss is materially caused by any action or omission of the indemnifying party. 2) The indemnity in this clause is subject to the limits on liability specified in clauses 21 to 24.

26. Force majeure

1) A failure by either party to comply with or observe any provisions of these regulated terms (other than payment of any amount due) does not give rise to any cause of action or liability based on default of the provision if--- a. the failure is caused by--- i. any event or circumstance occasioned by, or in consequence of, any act of God, being an event or circumstance--- a. due to natural causes, directly or indirectly and exclusively without human intervention; and b. that could not reasonably have been foreseen or, if foreseen, could not reasonably have been resisted: ii. a strike, lockout, other industrial disturbance, act of public enemy, war, blockade, insurrection, riot, epidemic, aircraft, or civil disturbance: iii. the binding order or requirement of any court, government, local authority, the Rulings Panel, or the Electricity Commission, and the failure is not within the reasonable control of the affected party: iv. the partial or entire failure of supply or availability of electricity to the distribution network: v. any other event or circumstance beyond the control of the party invoking this clause; and b. the party could not have prevented such failure by the exercise of the degree of skill, diligence, prudence, and foresight that would reasonably and ordinarily be expected from a skilled and experienced Distributor or Generator engaged in the same type of undertaking under the same or similar circumstances in New Zealand at the time. 2) If a party becomes aware of a prospect of a forthcoming force majeure event, it must notify the other party as soon as is reasonably practicable of the particulars of which it is aware. 3) If a party invokes this clause, it must as soon as is reasonably practicable notify the other party that it is invoking this clause and of the full particulars of the force majeure event relied on. 4) The party invoking this clause must--- a. use all reasonable endeavours to overcome or avoid the force majeure event; and b. use all reasonable endeavours to mitigate the effects or the consequences of the force majeure event; and c. consult with the other party on the performance of the obligations referred to in paragraphs (a) and (b). NW70.10.09 31 August 2007 (Amendment 0) 5) Nothing in subclause (4) requires a party to settle a strike, lockout, or other industrial disturbance by acceding, against its judgement, to the demands of opposing parties.

Page 8 of 8 DISTRIBUTION CODE Contents

1 Introduction

2. Advisory and Information Systems

3. Supply

3.1 Quality of Electric Supply

3.2 Interference with other Customers

3.3 Application for the Supply of Electricity

3.4 Re-Located Buildings

3.5 Connection of Supply

4 Electrical Service Lines

4.1 General Requirements

4.2 Underground Service Lines

4.3 Overhead Service Lines Constructed by Customer

4.4 Increase in Load

4.5 Upgrading Service Lines

5 Temporary Supplies

5.1 Responsibility for Builders Supply

5.2 Connection to Supply

5.3 Charges for Temporary Supplies

5.4 Builders Supply: Support for Overhead Wires

Page - 2 5.6 Underground Service Lines to Temporary Supplies

5.7 Single Phase Temporary Switchboards and Enclosures

5.8 Earthing

6 Power Factor (PF) Correction

6.1 General Requirements

6.2 Automatic Control of Capacitors

6.3 Effects of Capacitors on Ripple System

7 Motor Starting

8 Tariffs

Page - 3 1 Introduction

This code has been compiled and issued for the guidance of electricians, consulting engineers and architects who are involved with the design and installation of electrical systems connected to Westpower Limited’s network.

The code contains policies and procedures that must be undertaken as a condition to obtaining a supply of electricity.

The code should be read in conjunction with:

• Westpower tariff charges.

• Westpower Electricity Pricing Schedule.

• The Electricity Regulations 1997 and subsequent amendments.

• The Electricity Act 1992 and subsequent amendments.

• Electrical Codes of Practice and subsequent amendments.

• Appropriate Standards and subsequent amendments.

• Health and Safety in Employment Act and subsequent amendments.

Copies of this Distribution Code can be obtained from the Reception Desk at 146 Tainui St, Greymouth, or the Asset Manager, P.O. Box 388, Greymouth.

Page - 4 2 Advisory and Information Services

Westpower’s staff are available to provide a wide variety of free advice to customers and prospective customers. Please contact ElectroNet for advice on:

• Tariffs

• Methods of Supply

• Load Monitoring

• Electrical Safety

The following ElectroNet staff are also available for consultation:

• Asset Manager

• Operations Manager

• Electrical Supervisor

• Senior Electrical Engineer

Page - 5 3 Supply

The supply of electricity and/or network services is conditional on:

• Relevant Acts and Regulations, including the Electricity Act 1992, the Electricity Regulations 1997 and associated Electrical Codes of Practice.

• Westpower’s use of System Agreement with individual retailers.

• Westpower’s current Electricity Pricing Schedule

3.1 Quality of Electric Supply

Technical details are as follows:

Single phase two wire or three phase four wire systems of alternating current at a nominal voltage of 230 volts between phase and neutral which except for momentary fluctuations is intended to be maintained within 6% above or below that standard voltage, at your point of connection.

NOTE: Westpower is not responsible for the voltage drop caused by customer’s service lines.

• Except for momentary fluctuations the frequency of your supply will be at 50 hertz or within 0.75% above or below this.

While we will use our best endeavours to maintain a continuous supply within the above paramaters we cannot guarantee always to do so.

3.2 Interference with other Customers

No customer by the operation of any equipment, appliance or installation shall unduly interfere with a satisfactory supply to any other customer. In such cases Westpower will investigate the circumstances of the interference and require the offending customer, where necessary, to take remedial action within a reasonable period. Where the required action has not been taken Westpower may disconnect the equipment causing the interference or, if such disconnection is not possible, Westpower may disconnect the customer’s installation. The customer who causes the interference shall meet the cost of investigation and remedial action.

Page - 6 Attention is drawn to the effects of harmonic currents and voltages that are generated by electrical and electronic equipment including variable speed AC and DC drives. Although the equipment is required to meet the limitations of ECP 36, interference can still be caused to other customers. Pro- vision of appropriate filtering to eliminate interference is the responsibility of the offending customer.

3.3 Application for the Supply of Electricity

Owners of lines are required to give at least 15 working days written notice to the Territorial Authority and other affected utility operators where an electrical reticulation is to be constructed along, over or under any legal road. Furthermore resource consents are required for certain works in some areas, and these can take several weeks to obtain.

For this reason it is important that ElectroNet’s Asset Management Group is consulted in the early stages of planning, to negotiate supply and metering arrangements. It is also important to ensure adequate written notice can be given in order to meet the customers planned connection dates.

3.4 Re-Located Buildings

All re-located buildings are considered as new installations. 3.5 Connection of Supply

Supply will only be connected to new installations when the approved contractor responsible for connecting the supply has sighted the completed certificate of compliance.

If prescribed work has been carried out while an installation has been disconnected from the supply, a certificate of compliance is required as for a new installation. 4 Electrical Service Lines

The following general requirements apply to new and reconstructed service mains in Westpower’s area of supply.

Only one service main shall be provided for each installation.

Where a customer’s service line passes through or over a third parties’

Page - 7 property, the customer must obtain an easement for that section of service line. This requirement applies also to shared distribution lines, in which case the easement must be provided by the customers in the name of Westpower Limited. We require an agreement to grant an easement before supply is connected. This enables work to commence and allows time for the easement process to continue separately.

4.2 Underground Service Lines

Customers may choose to install an underground service within their own premises. However, access to Westpower’s equipment including service fuse boxes and distribution boxes is restricted to Westpower’s approved contractors only.

Reparation of any ground that is disturbed in the connection of a consum- ers underground service to Westpower’s network will be paid for by the consumer. 4.3 Overhead Service Lines Constructed by Customer

The customer may choose to build his own line providing that the Electricity Regulations 1997 are met and the construction is up to approved standards. The customer owns the line and is responsible for the maintenance on that section of the line.

4.1 General Requirements

Service lines are the customer’s responsibility. The point of connection of a service main to Westpower’s distribution system is defined in the Meters and Lines section of our terms and conditions for Domestic Customers. If it is agreed with the customer, the transformer and pole it is erected on will remain a part of Westpower’s system, it must be constructed to Westpower standards and use new equipment.

Tensioning of conductors may only be carried out by persons meeting the competency requirements stated in the Electricity Regulations 1997.

The customer must supply a Certificate of Compliance covering both the electrical and structural aspects of the line installation before connection to the Westpower network.

Page - 8 4.4 Increase in Load

Adequate notice prior to any significant load increase should be given to Westpower before connection of supply to prevent problems of future capacity constraints on Westpower’s network.

4.5 Upgrading Service Lines

Adequate written notification is required before any service lines are up- graded or their position changed. 5 Temporary Supplies and Caravan Sites

5.1 Responsibility for Builder’s Supply

All persons who are responsible for temporary supplies, such as builder’s temporary supplies (i.e. the builder or the owner) must submit a “System Connection Form”. 5.2 Connection to Supply

Requests to connect to the supply should be made through ElectroNet Services Ltd. 5.3 Charges for Temporary Supplies

The charges for temporary supplies will be at non-domestic rates as set out in Westpower’s Electricity Pricing Schedule. A charge is made for installing the supply and for dismantling the supply at the conclusion of use.

5.5 Builder’s Supply: Underground Areas

Westpower will install a service box on the boundary of the customer’s premises in accordance with its policy for services.

If a permanent electricity supply is to be taken from the service box, then it is essential that Westpower is informed of the approximate intended permanent electrical load. This is essential to allow an adequate sized cable to be installed between the service box and the lines or cables supplying the box.

5.6 Underground Service Lines to Temporary Supplies

All service lines shall be installed in accordance with NZS 3000. Page - 9 If the intended use of the same cable for the builder’s supply is eventually to supply a permanent installation any surplus cable must be coiled up and buried at the foot of the builder’s pole with suitable protection against damage. At the supply end of the cable, the cable is to be introduced into the service fuse box and termi- nated by a qualified contractor who holds an appropriate EAC to do this work.

5.7 Single Phase Temporary Switchboards and Enclosures

Switchboards and enclosures must comply with the Electricity Regulations 1997 and NZS 3000.

5.8 Earthing

An earth electrode compliant with the Electricity regulations shall be provided as close as practicable to the base of the builder’s pole.

The earthing conductor shall be insulated and mechanically protected and fixed to the pole over the conductors length.

6 Power Factor (PF) Correction

6.1 General Requirements

The power factor of a customer’s installation shall be maintained at not less that 0.95 lagging at any time. The power factor shall be determined by Westpower’s instruments and shall be assessed on the average value over a 30-minute period.

Westpower reserves the right to charge a penalty in addition to the normal electricity charges when it is found that an installation is maintained at less than 0.95 lagging power factor.

6.2 Automatic Control of Capacitors

Permanent automatic controlled capacitor installations are acceptable. 6.3 Effects of Capacitors on Ripple System

Westpower operate a ripple voltage load control system at a frequency of 425 Hz.

Westpower may request that ripple blocking chokes be installed by the Page - 10 customer where power factor correction capacitors are fitted, to avoid ripple signal absorption.

If any installation of capacitors on a customer’s premises is capable of affecting the Company’s control signals adversely, then the customer will be required to supply and install adequate blocking facilities to Westpower’s requirements.

7 Motor Starting

Motor starting limitations will be determined by the methods detailed in the Electrical Supply Authority Engineers Institute Committee Report on Motor Starting Currents for AC motors. The relative voltage change (r.v.c.) at the point of common coupling and at the main 11 kV supply substation shall not exceed the amount shown in the table below.

SCHEDULE OF RELA VIT E VOLTAGE CHANGE orF( m ESA cIE omm etti e er p )tro At M nia Sub F er quency fo S nitrat g At PCC 1( 1kV Bu )s

nI e cx ess fo 10 strats p re ho ru 0.1% 0. 5 %

nI e cx ess fo 3 strats pe day b tu 0.3% 0.1 % no m ero ht an 10 strats p re ho ru

N to m ro e ht an 3 strats p re day ni ulc nid g n to m ero ht an 1 trats 0.6% 5.1 % b wte een ht e ho sru fo 5pm & 11pm on any day Em gre ancy eq piu me tn etrats d erfni que yltn erif.g.e( 10.2 % 0.2 % pump )s

Details of fault levels for calculating the r.v.c. are available on request.

8 Tariffs

Westpower offers reduced rates for electrical energy where the hours of use are restricted.

Please refer to our Tariff Schedule for the various rates.

Considerable savings can be made by selecting appropriate controlled tariffs, for both domestic and non-domestic customers. Page - 11 For advice, please contact the appropriate ElectroNet staff below

Rodger Griffiths Westpower Asset Manager Ph. 768 2704 [email protected]

Terry Hughes Asset Manager - Lines Ph. 768 2711 [email protected]

Cosmin Cosma Senior Electrical Engineer Ph. 768 2907 [email protected]

Thomas O’Callaghan Asset Manager - Stations Ph. 768 2775 thomas.o’[email protected]

Kent Martin Operations Manager Ph. 768 2753 [email protected]

Cyril Shirley Electrical Supervisor Ph. 768 2702 [email protected]

Westpower Limited 146 Tainui Street P O Box 388 Greymouth Ph. 0800 768 242 Ph. 03 768 9300