Mighty River Power Quarterly Operational Update

Mighty River Power Quarterly Operational Update
Three months ended 31 December 2014

QUARTERLY HIGHLIGHTS
• Geothermal now New Zealand’s second largest electricity fuel source
• ASX FY2016 future prices up $77.66 cents
• Hydro generation down 159 GWh – lowest Q2 production in Company history

Mighty River Power’s quarterly operating statistics for the period ended 31 December 2014 show a decrease in generation volume, down 1% (24GWh) on the pcp due to a continuation of weak inflows across the catchment. Hydro production of 826GWh was down 159GWh (16%) on pcp – almost 200GWh below the Company’s average, making it the lowest second quarter hydro production since the Company was formed in 1999. However, Lake Taupo storage increased by 37% during the quarter, ending the period at 95% of average.

NZ HAS LESS THERMAL GENERATION AND INCREASED DEMAND; ASX FUTURES UP
ASX futures prices have increased across all maturities, reflecting the significant reduction in contracted gas electricity generation in New Zealand, as well as lower coal commitments by Genesis Energy. The reduction of more than 5,000GWh of thermal fuel commitments since 2013 has restored the balance of market supply and demand from an energy perspective. National demand increased by 2% during the period on pcp, meaning electricity consumption was back up to 2011 levels.

GEOTHERMAL NOW NZ’S SECOND ELECTRICITY FUEL SOURCE
During the second half of CY2014 New Zealand reached a significant milestone in renewable electricity supply, with geothermal generation replacing gas as the second most important electricity fuel source behind hydro. Geothermal generation has increased by more than 150% in the past decade. Unsubsidised investment, including $1.4 billion by Mighty River Power, has boosted geothermal output from 6.5% of national supply, to 16%. Geothermal is the only renewable not dependant on the weather – running 24/7. It has played an important role in displacing non-renewable generation, and overtaken both coal and gas-fired generation in the past six years, cutting millions of tonnes of emissions. Geothermal made up 40% of Mighty River Power’s total generation for the quarter.

SMART METER DEPLOYMENT CONTINUES TO GAIN MOMENTUM
The deployment of AMI smart meters by the Company’s metering business Metrix continued to increase, with 16,000 installations completed during the quarter. A total of 25,000 smart meters have been deployed so far in FY2015, increasing the number of smart meters to 367,000. Metrix expects to commence the deployment of 225,000 smart meters to Trustpower’s residential customers later this year.

Mighty River Power will release its financial results for the 6 months ended 31 December 2014 on 24 February 2015.

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