Ancillary Service rates 2008

Voltage Support

Rule 11.6 Part C IV requires the system operator to set, annually in advance, the Peak Rate and the Penalty Rate for each zone used to allocate voltage support costs. The methodology used by the system operator for setting those rates is to determine, for each zone, the unique pair of rates that satisfy:

The peak and penalty revenue derived from kvar data for each distributor kvar reference node (grouped GXPs) will recover the estimated cost of the voltage support contracts, assuming that kvars at each distributor kvar reference node are as in the previous calendar year.

The penalty rate is equal to or greater than the per unit cost of new high-voltage var support equipment.

Rates are rounded to the nearest cent per kvar.

For the twelve months commencing 1 March 2008, the rates determined according to this methodology are:
 

       Zone 1

        Peak rate  180 c/kvar

        Penalty rate  229 c/kvar

 Nominated Peak Demand

Rule 11.6 Part C IV requires distributors to nominate annually in advance a peak demand in kvar at each distributor kvar reference node in each zone. For avoidance of doubt the nomination is for offtake only, it should not net off any injection.

 For the twelve months commencing 1 March 2008 nominations have been requested for zone 1.

 For information on submitting the nominated peak demand please contact the system operator at system.operator@transpower.co.nz .