Multi-Year Contract Adds Portfolio Flexibility for Mighty Ri

24 June 2011

Mighty River Power has confirmed a multi-year agreement with Genesis Energy to add further electricity portfolio flexibility and assist with managing the risk of low rainfall in the Waikato catchment.

Mighty River Power General Manager Operations, Fraser Whineray, said the contract would add supply side portfolio flexibility. In conjunction with Mighty River Power’s gas-fired Southdown co-generation plant, the Company now has more than 1,000GWh per year of discretionary owned and contracted generation.

Mr Whineray said the agreement was negotiated following Genesis’ RFP issued to the market in November last year.

“This is part of effectively managing risk and providing further flexibility across our overall electricity portfolio, that includes hydro, geothermal and thermal production and contracted purchases, in combination with multiple sales channels – residential, commercial, industrial and the wholesale market.”

Mr Whineray said Mighty River Power was supportive of product development and liquidity in the derivatives market as evidenced by its active hedge book, work with joint venture entities to bring additional liquidity to contract markets, and this most recent transaction with Genesis.

ENDS

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