January 2018 Operating Report

Monthly Operating Report
January 2018

»For the month of January 2018 Contact recorded:
•Electricity and gas sales of 568 GWh (January
2017: 572 GWh)
•Netback of $85.62/MWh (January 2017:
$81.33/MWh)
•Cost of energy was $31.31/MWh (January 2017:
$18.67/MWh)
»Otahuhu futures settlement wholesale price for the 1
st
quarter of 2018 (ASX):
•As at 8February 2018: $91/MWh
•As at 31 January 2018: $105/MWh
•As at 31 December 2017: $104/MWh
»As at 8February 2018, South Island controlled storage
was 87% of mean (31 January 2018: 72%) and North
Island storage was 129% of mean (31 January 2018:
121%)
•As at 8 February, total Clutha scheme storage
(including uncontrolled storage) was 60% of mean
•Inflows into Contact’s Clutha catchment for January
2018 were at 44% of mean (December 2017: 50 %,
November 2017: 69%, October 2017: 51%)
January overview
Operating reportContact Energy Limited
2
»Contact had no recordable injuries in December and
January, a period which included the major outage at the
Taranaki Combined Cycle plant where 125,000 hours
were worked.

Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201729/12/201731/01/2018
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201729/12/201731/01/2018
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Feb
17
Mar
17
Apr
17
May
17
Jun
17
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY17 BENFY18 BENFY17 OTAFY18 OTA
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Jan 18Jan 17Dec 17
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Jan 18Jan 17Dec 17

Electricity demand
Operating reportContact Energy Limited
»Reconciled market demand data not available as at time of release
5

10
15
20
25
30
35
40
45
50
55
60
-
100
200
300
400
500
600
700
800
900
16 17 16 17 16 17 16 17 16 17 16 17 17 18 17 17 17 17 17
$/MWh
GWh
GeothermalHydroThermalCost of Energy
Contact’s Generation business performance
Generation mix and cost of energy (FY17 and 18)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year

60
65
70
75
80
85
90
95
100
105
110
0
100
200
300
400
500
600
700
800
900
16 17 16 17 16 17 16 17 16 17 16 17 17 18 17 17 17 17 17
$/MWh
GWh
Commercial & industrial electricity salesMass market electricity sales
Retail gas salesNetback
Retail sales volumes and netback (FY17 and 18)
Contact’s Customer business performance
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited

Contact’s operational performance
8
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended
Seven months
ended
Seven months
ended
January 2018January 2017December 2017January 2018January 2017
CustomerMass market electricity sales
GWh248 254 246 2,154 2,196
Commercial & industrial electricity sales
GWh286 280 281 1,990 2,086
Retail gas sales
GWh34 37 43 486 429
Total electricity and gas sales
GWh568 572 571 4,630 4,711
Average electricity sales price
$/MWh185.12 180.48 181.45 188.28 185.22
Electricity direct pass thru costs
$/MWh(81.92)(82.10)(86.27)(83.92)(81.51)
Electricity and gas cost to serve
$/MWh(14.31)(13.96)(12.07)(12.33)(13.65)
Netback
$/MWh85.62 81.33 79.23 85.41 84.51
Actual electricity line losses
%4%6%5%6%5%
Retail gas sales
PJ0.1 0.1 0.1 1.6 1.4
LPG sales
tonnes4,551 4,676 5,128 42,929 42,788
Electricity customer numbers
#419,000 420,500 421,000
Gas customer numbers
#64,500 62,500 64,500
LPG customer numbers (includes franchises)
#85,000 77,000 83,500
GenerationThermal generation
GWh305 39 203 1,271 724
Geothermal generation
GWh257 282 265 1,983 1,834
Hydro generation
GWh191 355 258 1,826 2,428
Spot market generation
GWh753 676 726 5,081 4,987
Spot electricity purchases
GWh556 572 556 4,402 4,526
CfD sales
GWh127 132 98 276 292
Steam sales
GWh44 55 54 373 404
Commercial & industrial electricity sales
GWh10 10 10 59 62
GWAP
$/MWh118 43 119 96 47
LWAP
$/MWh(131)(51)(130)(103)(53)
LWAP/GWAP
%111%118%109%107%113%
Gas used in internal generation
PJ2.7 0.6 2.0 12.2 8.0
Gas storage net movement
PJ(0.5)0.1 (0.7)(1.3)(0.7)
Unit generation cost
$/MWh(41.19)(24.59)(35.64)(35.33)(30.47)
Cost of Energy
$/MWh(30.31)(18.67)(22.56)(30.50)(24.29)

Glossary of terms
Netback
Measures the performance of
the Customer business.
This enables the performance of
the retail channels to be
measured without using an
energy cost. The netback is
meant to cover, inter alia, the net
purchase cost, capital return,
risk margin and a retail margin.
Electricity revenue from mass market and C&I customers
Add: Revenue from gas sales
Add: Revenue from steam sales and direct electricity sales from Te Rapa
Less: Electricity distribution network costs, meter costs and electricity levies
Less: Gas distribution network costs, meter costs and gas levies
Less: Operating costs to serve the customer, including head office allocation
Cost of Energy
Measures the performance of
the Generation business.
Cost of energy reflects the total
operational costs of generating
and procuring electricity sold to
customers. It does not include
any capital return expectations.
Wholesale electricity revenue from our generating assets
Less: Electricity purchase costs from the wholesale market to supply customers
Less: Electricity transmission costs and levies
Less: Gas and diesel purchase costs (excluding gas purchases for retail gas sales)
Less: Gas transmission costs and levies
Less: Carbon emissions costs
Less: Generation operating costs and head office allocation
Netback and cost of energy is divided by the total retail sales volumes (electricityand gas sales) to be expressed as $/MWh

Keep in touch
Operating reportContact Energy Limited
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contact.co.nz
@ContactEnergy
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investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 4 462 1323
+64 21 072 8578
Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy