Meridian Energy (NZE:MEL, ASX:MEZ) "welcomed" a fast-track panel draft decision to relax operating limits at Lake Pukaki, allowing use of water stored between 518 and 513 meters above sea level for three years, ahead of a Transpower-estimated 4% electricity shortage risk threshold, according to a Friday filing with the Australian and New Zealand bourses.
The company acknowledged stakeholder concerns regarding eased access to contingent storage and proposes that, if the draft is confirmed, half of the five meters of contingent storage continue to be restricted to periods of heightened supply security risk for the remainder of the year, given the positive hydro outlook for winter, the filing said.
The draft decision also approves permanent rock armoring at Pukaki Dam to improve resilience against wave erosion under lower lake operating levels.
The panel's final decision is due by July 3, the filing added.