Power bosses want Bay station fired up

ROGER MORONEY AND NZPA
Energy bosses are looking to Hawke's Bay's Whirinaki power station as the potential saviour in what many see as a looming threat of nationwide winter power shortages.
The chief executives of two of the country's biggest power companies went even further and said the Government-owned reserve power station, which was commissioned in June 2004, should be fired up immediately to allay electricity supply concerns.
That idea also drew the support of National MP Nick Smith, who sits on an energy committee, but did not exactly get the thumbs up from Energy Minister David Parker who told Parliament that the Electricity Commission had a published set of assessment criteria that were intended to assure supply against a one-in-60-year drought.
"I am advised that, based on those criteria, although lake levels are well below average the probability of a power shortage this winter is low."
But, speaking at select committees reviewing their companies' finances for the year, Genesis' chief executive Murray Jackson and Meridian's CEO Keith Turner both said the 155 megawatt (MW) oil-fired, dry-year reserve power station at Whirinaki should be operating.
The Government built the plant which is only started up when electricity hits the "minzone". The minzone is reached when the minimum level of hydro storage required to meet electricity demand, when all other available thermal plants are running at full capacity, is breached, or when electricity spot prices reach $200 per megawatts an hour (MWH).
Prices averaged between $125-$140/MWH last week.
Mr Jackson said waiting for things to reach the minzone had been likened to hitting an iceberg before taking action.
Hydro reserves are at the same level as they were when the country last faced an electricity supply crisis in 1992, and NIWA is not forecasting significant rainfall over the next three months.
Mr Jackson said apart from having one machine out for maintenance, all of Genesis' Huntly machines were working at full load, and the Whirinaki generator should be fired up.
"We want every piece of reserve capacity we can get our hands on at this point in time to avoid a more serious position in the next couple of months," he told the select committee.
Meridian's Dr Turner said Whirinaki should be used now when storage is low, but before the peak demand of winter, "A plant like Whirinaki, in my view, should be operating. Having built the plant, the most economic use of that asset is to run it when prices are higher than its cost of fuel.
To have some artificial trigger on it, like $200/MWh, I think is not serving the consumers' interests, who paid for it," he said.
But Dr Turner said while hydro levels were concerning, it was too early to panic, and too early to launch a nation-wide power savings campaign.
He said a major campaign could have long term economic impact, in terms of how attractive New Zealand is for investors. NZPA