This is a case study on the economics of hybrid distributed generation embedded in the Orion Networks distribution system in New Zealand

7. SCENARIO PAYMENT OPTIONS Customer Status Scenario Payment Options (Typical) (GCLM) Load Line Rental Fee Management Single / Multiple Energy Tariff(s) (may / may not be time-related) General Customer (GC) Connection Fee (IPP) Generation Peak Period Demand Pricing TOU Energy Pricing or Net-metering Connection Fee (MCLM) Load Management Assessed Capacity (AC) Pricing Control Period Demand (CPD) Pricing Major Customer (MC) TOU Energy Pricing (IPP) Connection Fee Generation Peak Period Demand (PPD) Pricing TOU Energy Pricing

8. ENERGY PAYMENT OPTIONS

9. CAPACITY SAVING SCHEDULE MCLM: Chargeable Major Customer Winter Periods MCLM: Chargeable Major Customer Summer Periods Season Control Period Total Duration Summer 2000-01 1 Nov 00 – 28 Feb 01 81.1 Hours Summer 2001-02 1 Nov 01 – 28 Feb 02 1.6 Hours Summer 2002-03 1 Nov 02 – 28 Feb 03 31.4 Hours Season Control Period Total Duration Winter 1994 1 May 94 – 31 Aug 94 61.1 Hours Winter 1995 1 May 95 – 31 Aug 95 80.9 Hours Winter 1996 1 May 96 – 31 Aug 96 52.1 Hours Winter 1997 1 May 97 – 31 Aug 97 53.8 Hours Winter 1998 1 May 98 – 31 Aug 98 9.6 Hours Winter 1999 1 May 99 – 31 Aug 99 34.6 Hours Winter 2000 1 May 00 – 31 Aug 00 20.0 Hours Winter 2001 1 May 01 – 31 Aug 01 181.6 Hours Winter 2002 1 May 02 – 31 Aug 02 111 Hours

10. CAPACITY GENERATION SCHEDULE IPP: Summer Chargeable Peaks for Capacity Generation Season Peak Period Total Duration Summer 2000-01 1 Oct 00 – 31 Mar 01 307.5 Hours Summer 2001-02 1 Oct 01 – 31 Mar 02 53 Hours Summer 2002-03 1 Oct 02 – 31 Mar 03 108.5 Hours IPP: Winter Chargeable Peaks for Capacity Generation Season Peak Period Total Duration Winter 2001 1 Apr 01 – 30 Sep 01 318.5 Hours Winter 2002 1 Apr 02 – 30 Sep 02 233 Hours

11. CAPACITY PRICING SCHEDULE CAPACITY SAVING SCENARIO CAPACITY GENERATION SCENARIO Pricing Definition Line Transmission Delivery Fixed (Connection) - $500.05 ----- - $500.05/year Control Period Demand - $60.00 - $21.92 - $81.92/kVA/year Assessed Capacity - $24.40 - $22.00 - $46.40/kVA/year Pricing Definition Line Transmission Delivery Fixed (Connection): GC - $0.00 ----- - $0.00/year Fixed (Connection): MC - $500.05 ----- - $500.05/year Peak Period Demand $66.70 $33.30 $100.00/kVA/year

14. PROJECT FINANCIAL ANALYSIS

15. MCLM ENERGY & CAPACITY SAVINGS

16. IPP ENERGY & CAPACITY REVENUES

17. COMPARING MCLM & IPP SCENARIOS

18. WIND ENERGY CONTRIBUTIONS

19. WIND VS. WIND-DIESEL HYBRID

20. INFLUENCE OF GOVT. INCENTIVES

21. AVERAGE PPD WHOLESALE PRICES NOV 02 JAN 03 MAR 03 OCT 02 F E B 0 3 DEC 02