Meridian Energy monthly operating report for January 2020

PG 1

Meridian Energy monthly operating report for January 2020
18 February 2020
Attached is Meridian Energy Limited's monthly operating report for the month of January 2020.
Highlights this month include:
▪ In the month to 13 February 2020, national hydro storage increased from 123% to 126% of historical average
▪ South Island storage sat at 127% of average and North Island storage at 117% of average on 13 February 2020
▪ Meridian’s January 2020 monthly total inflows were 71% of historical average
▪ Meridian’s Waitaki catchment storage at the end of January 2020 was 118% of historical average
▪ Storage in Meridian’s Waiau catchment was below average at the end of January
▪ National electricity demand in January 2020 was 0.8%

higher than the same month last year
▪ Meridian made calls under the Genesis Swaption in January and early February 2020
▪ January 2020 saw low rainfall across much of the country, with cooler temperatures in the first half of the
month contrasting with a warmer second half
▪ New Zealand Aluminium Smelter's load during January 2020 was below the contract level of 622MW
▪ Meridian’s New Zealand retail sales volumes in January 2020 were 25.1% higher than January 2019

ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Claire Shaw
External Communications Manager
021 370 677

M E R I D I A N E N E R G Y L I M I T E D
M O N T H LY O P E R AT I N G R E P O R T
April 2019
M O N T H LY O P ER AT I N G R EP O RT
JA N UA RY 2 0 1 9

J A N U A R Y H I G H L I G H T S
In the month to 13
February 2020, national
hydro storage increased
from 123% to 126% of
historical average
South Island storage sat
at 127% of average and
North Island storage at
117% of average on 13
February 2020
Meridian’s January 2020
monthly total inflows
were 71% of historical
average
January 2020 saw low
rainfall across much of the
country, with cooler
temperatures in the first
half of the month
contrasting with a warmer
second half
New Zealand Aluminium
Smelter's load during
January 2020 was below
the contract level of
622MW
Meridian’s New Zealand
retail sales volumes in
January 2020 were 25.1%
higher than January 2019
Meridian’s Waitaki
catchment storage at the
end of January 2020 was
118% of historical
average
Storage in Meridian’s
Waiaucatchment was
below average at the end
of January
National electricity
demand in January 2020
was 0.8%higher than the
same month last year
Meridian made calls
under the Genesis
Swaptionin January and
early February 2020
Meridian Energy Limited Monthly Operating Report for January 20202
18 February 2020

2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL DEMAND
Range (2009-2019)201520162017201820192020
MARKET DATA
▪National electricity demand in January
2020 was 0.8% higher than the same
month last year
▪January 2020 saw low rainfall across much
of the country, with cooler temperatures
in the first half of the month contrasting
with a warmer second half
▪Demand in the last 12 months was 1.2%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter's load
during January 2020 was below the
contract level of 622MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.8% at the
end of December 2019
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.4% at the end
of December 2019
Source: Electricity Authority
Source: Electricity Authority
3
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
5%
7%
9%
11%
13%
15%
Dec 14Jun 15Dec 15Jun 16Dec 16Jun 17Dec 17Jun 18Dec 18Jun 19Dec 19
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (13 February 2020)
86yr Average199220042008
2012201820192020
MARKET DATA
▪January 2020 saw little change in ASX
prices
▪National storage increased from 123% of
average on 13 January 2020 to 126% of
average on 13 February 2020
▪South Island storage increased to 127% of
historical average on 13 February 2020.
North Island storage decreased to 117% of
average
Source: ASX
Source: ASX
Source: NZX
4
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
70
80
90
100
110
120
130
140
150
160
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
$/MWh
OTAHUHU ASX FUTURES SETTLEMENT PRICE
28 June 201930 September 201931 October 2019
29 November 201931 December 202031 January 2020
70
80
90
100
110
120
130
140
150
160
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
$/MWh
BENMORE ASX FUTURES SETTLEMENT PRICE
28 June 201930 September 201931 October 2019
29 November 201931 December 202031 January 2020

110
112
112
112
113
112
113
00000
119
119
119
120
120
120
119
76
77
78
79
80
82
83
107
107
108
108
108109
109
109
109
109
109
109
119
119
119
119
119
119
119
119
119
119
119
119
66
66
67
68
69
69
70
71
72
73
74
74
0
50
100
150
200
250
300
350
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S NZ CUSTOMER CONNECTIONS
FY20 Meridian NIFY20 Meridian SIFY20 Powershop
FY19 Meridian NIFY19 Meridian SIFY19 Powershop
NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.5% during
January 2020 and have risen 4.3% since
June 2019
▪Retail sales volumes in January 2020 were
25.1% higher than January 2019
▪Compared to January 2019,
residential/SMB sales volumes increased
by 17.6% (increases in all segments) and
corporate sales volumes increased by
38.9%
▪To date this financial year, retail sales
volumes are 22.5% higher than the same
period last year
▪This reflects a 13.7% increase in
residential/SMB sales volumes and a
38.7% increase in corporate sales volumes
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian
operating
information
350
376
349
347
363
401
421
00000
248
254
233
243
247
248
272
336
347
326
345
301
280
359
345
334
289
310
329
185
182
171
178
180
168
196
189
223
219
228
219
0
100
200
300
400
500
600
700
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S RETAIL SALES VOLUMES*
FY20 Residential/SMBFY20 CorporateFY19 Residential/SMBFY19 Corporate

0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
January YTD86 year average
NEW ZEALAND STORAGE
▪January 2020 monthly inflows were 71%
of historical average
▪To date this financial year, inflows are
124% of historical average
▪Meridian’s Waitaki catchment storage
moved from 2,213GWh to 2,210GWh
during January 2020
▪Waitaki storage at the end of January
2020 was 118% of historical average and
20% higher than the same time last year
▪Storage in Meridian’s Waiaucatchment
was below average at the end of January
2020
6
18 February 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian
operating
information
0
500
1,000
1,500
2,000
2,500
1-Jan1-Mar1-May1-Jul1-Sep1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-201520162017201820192020

0
200
400
600
800
1,000
1,200
1,400
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S NEW ZEALAND GENERATION
FY20 HydroFY20 WindFY19 HydroFY19 Wind
NEW ZEALAND GENERATION
▪Meridian’s New Zealand generation in
January 2020 was 7.0% higher than the
same month last year, reflecting higher
hydro generation and wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 9.4% higher than the
same period last year, reflecting higher
hydro generation and wind generation
▪The average price Meridian received for its
generation in January 2020 was 38.4%
lower than the same month last year
▪The average price Meridian paid to supply
customers in January 2020 was 34.1%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 21.4% lower than the same period last
year and the average price paid to supply
customers is 22.8% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian
operating
information
101
123
122
121
94
51
77
72
77
87
285
149
99
125
153
171
100
96
95
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY20FY19

63
66
55
49
46
50
51
58
57
48
41
37
39
44
38
45
41
49
58
0
10
20
30
40
50
60
70
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
AUSTRALIAN RETAIL ELECTRICITY SALES VOLUMES
FY20FY19
AUSTRALIAN RETAIL
▪Australian retail electricity sales volumes
in January 2020 were 17.3% higher than
the same month last year
▪To date this financial year, Australian retail
electricity sales volume is 17.6% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 2.5% during
January 2020 and have risen 16.4% since
June 2019
▪Gas customer connection numbers rose
6.3% during January 2020, with total sales
in the month of 22TJ
Source: Meridian
Source: Meridian
8
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian
operating
information
176
192
171
119
64
51
22
4
20
40
41
20
17
99
13
25
102
64
0
50
100
150
200
250
JulAugSepOctNovDecJanFebMarAprMayJun
TJ
AUSTRALIAN RETAIL GAS SALES VOLUMES
FY20FY19

61
56
44
44
44
41
38
3
7
19
17
15
16
14
74
64
43
40
37
36
33
30
33
36
49
49
10
11
25
30
26
23
29
21
16
11
1
3
0
10
20
30
40
50
60
70
80
90
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY20 WindFY20 HydroFY19 WindFY19 Hydro
AUSTRALIAN GENERATION
▪Meridian’s Australian generation in
January 2020 was 16.2% lower than the
same month last year, reflecting higher
wind generation and lower hydro
generation
▪To date this financial year, Meridian’s
Australian generation is 13.0% lower than
the same period last year, reflecting lower
wind generation and lower hydro
generation
▪Weather related high pricing in January
2020 is reflected in wholesale prices and
cap contract proceeds this month
Source: Meridian
9
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian
operating
information

NEW ZEALAND
JANUARY
2020
MONTH
JANUARY
2019
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2019
MONTH
7 MONTHS
TO JANUARY
2020
7 MONTHS
TO JANUARY
2019
New Zealand sales
Retail contracted sales volume (GWh)6945556506104,3553,554
Average retail contractedsales price
1
($NZ/MWh)$103.398.2$100.0$99.8$106.2$103.2
NZAS sales volume (GWh)4634634634483,2093,071
Financial contract sales volumes
2
(GWh)1701571641351,0711,391
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$66.5$69.4$62.3$65.3$67.2$65.4
Retail customer supply volumes (GWh)7335816696504,5623,741
Cost to supplyretail customers ($NZ/MWh)$95.1$141.3$57.1$112.7$109.2$146.7
Cost to supply wholesale customers ($NZ/MWh)$76.8$125.8$45.4$89.6$96.3$125.9
Cost of financial contracts ($NZ/MWh)$86.7$126.1$81.6$92.8$101.8$119.6
TotalNew Zealand customer connections
4
315,225297,621313,599313,150
New Zealand generation
Hydro generation volumes (GWh)1,0951,0221,1471,0497,5036,947
Wind generation volumes (GWh)122116125133901736
Total generation volumes (GWh)1,2171,1381,2721,1828,4047,683
Average generationprice
5
($NZ/MWh)$77.1$125.3$51.4$93.7$97.7$124.4
New Zealand hedging
Hedging volume
6
(GWh)2961551821481,1871,206
Hedging costs ($NZ/MWh)$96.1$69.3$64.4$67.3$72.4$68.2
Hedging spot revenue average price ($NZ/MWh)$100.0$127.7$63.1$104.1$104.4$140.8
Future contract close outs ($NZ m)-$0.2-$0.4-$0.9-$0.2-$5.0-$2.9
10
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian operating information

AUSTRALIA
JANUARY
2020
MONTH
JANUARY
2019
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2019
MONTH
7 MONTHS TO
JANUARY
2020
7 MONTHS TO
JANUARY
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)51445046380323
Average electricity contractedsales price
1
($A/MWh)$130.0$160.0$161.1$174.0$150.7$158.2
Retail contracted gas sales volume (TJ)2295164794152
Average gas contractedsales price
1
($A/GJ)$33.4$39.2$20.0$18.9$15.1$18.3
Financial contract sales volumes
2
(GWh)466863400
Financial contractedsales average price ($A/MWh)$122.0$79.2$80.1$87.3
Cost to supplyelectricity customers ($A/MWh)$257.6$332.0$82.2$89.2$128.2$138.9
Cost to supplygas customers ($A/GJ)$41.1$19.3$9.9$14.0$11.7$11.8
Cost of financial contracts ($A/MWh)$138.8$58.2$68.3$91.3
Powershopelectricity customer connections
7
127,847101,020124,668121,575
Powershopgas customer connections
8
32,38714,30930,46529,182
11
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian operating information

AUSTRALIA
12
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
JANUARY
2020
MONTH
JANUARY
2019
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2019
MONTH
7 MONTHS TO
JANUARY
2020
7 MONTHS TO
JANUARY
2019
Australian generation
Wind generation volumes (GWh)38334144328329
Average wind generationprice
5
($A/MWh)$225.9$122.0$101.9$110.3$130.5$148.1
Hydro generation volumes (GWh)1429161591152
Average hydro generationprice
5
($A/MWh)$153.1$220.7$64.4$66.9$95.6$115.8
PPA generation received (GWh)2921293021886
Average PPA generationprice [net of costs] ($A/MWh)$59.5$121.0$7.8$16.5$31.2$16.6
Australian hedging
Hedging volume
6
(GWh)395048297
Hedging costs ($A/MWh)-$23.1$89.9$89.9$83.5
Hedging spot revenue average price ($A/MWh)$130.3$58.6$72.3$95.8
Future contract close outs ($A M)$0.0$0.0-$0.1$0.7$0.8-$0.2
Meridian operating information

MERIDIAN GROUP
Footnotes
1.Contracted sales volumes and volume weighted average price received from
contracted customers less distribution costs
2.Derivatives sold excluding the sell-side of virtual asset swaps
3.Average price of both NZAS sales volume and derivative sales volumes
4.Meridian Retail and Powershop New Zealand installation control points (ICPs),
excluding vacants
5.Volume weighted average price received for Meridian’s physical generation
6.Over the counter and ASX contract volumes excluding the buy-side of virtual asset
swaps
7.Financially responsible market participants, excluding vacants
8.Meter installation registration numbers
13
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
JANUARY
2020
MONTH
JANUARY
2019
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2019
MONTH
7 MONTHS TO
JANUARY
2020
7 MONTHS TO
JANUARY
2019
Meridian Group
Employee and Operating Costs ($m)22222224166157
Stay in Business Capital Expenditure ($m)33442625
Investment Capital Expenditure ($m)1112109
Total Capital Expenditure ($m)44563634
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Retail contracted sales volume (GWh)599630583590610650694
Average retail contracted sales price ($NZ/MWh)$113.5$115.4$109.5$102.7$99.8$100.0$103.3
NZAS sales volume (GWh)463463447463448463463
Financial contract sales volumes (GWh)150176148129135164170
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3$66.5
Retail customer supply volumes (GWh)645662581623650669733
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1$95.1
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4$76.8
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6$92.8$81.6$86.7
Total New Zealand customer connections304,993307,798309,372311,694313,150313,599315,225
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,0159801,0491,1471,095
Wind generation volume (GWh)116135126143133125122
Total generation volume (GWh)1,2271,2411,1411,1231,1821,2721,217
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4$93.7$51.4$77.1
New Zealand hedging
Hedging volume (GWh)145139132145148182296
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4$67.3$64.4$96.1
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6$104.1$63.1$100.0
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5-0.2-0.9-0.2
Australia contracted sales
Retail contracted electricity sales volume (GWh)63665549465051
Average electricity contracted sales price
1
($A/MWh)$149.8$147.0$131.2$168.0$174.0$161.1$130.0
Retail contracted gas sales volume (TJ)176192171119645122
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8$18.9$20.0$33.4
Financial contract sales volumes
2
(GWh)54436065636846
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1$80.1$79.2$122.0
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9$89.2$82.2$257.6
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6$14.0$9.9$41.1
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1$68.3$58.2$138.8
Powershop electricity customer connections
7
111,373112,995115,099118,721121,575124,668127,847
Powershop gas customer connections
8
24,09625,24026,52927,85829,18230,46532,387
Australia generation
Wind generation volume (GWh)61564444444138
Average wind generation price ($A/MWh)$115.7$124.7$127.3$125.5$110.3$101.9$225.9
Hydro generation volume (GWh)371917151614
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4$66.9$64.4$153.1
PPA generation received (GWh)35343031302929
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2$16.5$7.8$59.5
Australia hedging
Hedging volume (GWh)36393650485039
Hedging costs ($A/MWh)$67.2$98.6$107.3$95.5$89.9$89.9-$23.1
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7$72.3$58.6$130.3
Future contract close outs ($A M)$0.0$0.2-$0.1$0.0$0.7-$0.1$0.0
Meridian Group
Employee and Operating Costs ($NZ m)24242525242222
Stay in Business Capital Expenditure ($NZ m)4344443
Investment Capital Expenditure ($NZ m)1221211
Total Capital Expenditure ($NZ m)5565654
FY20 OPERATING INFORMATION
14
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201820182018201820182018201920192019201920192019
New Zealand contracted sales
Retail contracted sales volume (GWh)521529497524481448555534557508538548
Average retail contracted sales price ($NZ/MWh)$113.1$110.7$106.7$98.3$98.5$95.5$98.2$102.0$101.3$105.4$112.7$113.9
NZAS sales volume (GWh)426426411439444463463418463448463448
Financial contract sales volumes (GWh)386196140149146217157196187168168129
Average wholesale & financial contracts sales price ($NZ/MWh)$63.9$58.5$58.0$65.9$72.7$68.9$69.4$80.6$80.3$73.0$72.3$69.6
Retail customer supply volumes (GWh)541560528554509468581572587538578592
Cost to supply retail customers ($NZ/MWh)$87.1$90.0$95.0$309.8$183.0$115.5$141.3$171.6$186.0$113.4$113.3$102.8
Cost to supply wholesale customers ($NZ/MWh)$68.9$74.4$88.7$284.1$137.1$98.1$125.8$153.6$168.2$97.5$93.1$89.7
Cost of financial contracts ($NZ/MWh)$71.8$93.1$94.3$267.7$152.7$116.5$126.1$156.8$163.0$104.4$96.3$103.0
Total New Zealand customer connections292,091292,906293,386294,695296,064296,532297,621299,351299,905301,230301,508302,277
New Zealand generation
Hydro generation volume (GWh)1,0701,1239598979059721,0221,0151,0461,0601,1251,132
Wind generation volume (GWh)1269011510799831161048199123100
Total generation volume (GWh)1,1961,2131,0741,0041,0041,0551,1381,1191,1281,1591,2481,232
Average generation price ($NZ/MWh)$72.1$77.2$86.8$284.6$149.5$98.8$125.3$153.1$171.5$99.8$96.5$95.2
New Zealand hedging
Hedging volume (GWh)170167147200190177155142186144149138
Hedging costs ($NZ/MWh)$65.7$63.1$62.5$77.7$74.7$61.7$69.3$66.6$71.2$65.0$66.3$63.9
Hedging spot revenue average price ($NZ/MWh)$74.5$80.8$87.9$290.6$180.8$104.6$127.7$157.7$168.4$103.1$101.9$97.5
Future contract close outs ($NZm)-0.1-0.3-0.6-0.5-0.5-0.5-0.4-0.7-2.8-1.1-0.4-0.1
Australia contracted sales
Retail contracted electricity sales volume (GWh)585748413739443845414958
Average electricity contracted sales price
1
($A/MWh)$149.6$168.9$159.4$150.4$151.5$165.9$160.0$162.2$159.7
Retail contracted gas sales volume (TJ)4204041201799132510264
Average gas contracted sales price
1
($A/GJ)$16.1$15.5$14.2$15.7$20.7$24.7$39.2$15.4$19.4
Financial contract sales volumes
2
(GWh)5142
Financial contracted sales average price ($A/MWh)$64.1$80.7
Cost to supply electricity customers ($A/MWh)$103.1$105.7$114.1$108.7$113.3$111.4$332.0$112.4$133.7
Cost to supply gas customers ($A/GJ)$14.8$12.8$15.0$6.8$8.9$14.0$19.3$11.7$29.4
Cost of financial contracts ($A/MWh)$70.1$100.2
Powershop electricity customer connections
7
96,74396,80196,65797,51498,61899,368101,020102,730104,450106,240108,332109,804
Powershop gas customer connections
8
1,1374,7767,5589,57711,33312,50814,30916,75118,22519,99021,42622,612
Australia generation
Wind generation volume (GWh)746443403736383033364949
Average wind generation price ($A/MWh)$153.0$148.0$163.9$178.3$123.2$134.9$225.9$143.9$126.1
Hydro generation volume (GWh)1011253026231421161113
Average hydro generation price ($A/MWh)$37.3$46.0$128.6$92.0$90.9$94.8$153.1$79.3$77.4
PPA generation received (GWh)11107131211293331
Average PPA generation price [net of costs] ($A/MWh)-$66.0-$63.9-$71.3-$65.5$121.3$20.8$59.5$40.4$34.2
Australia hedging
Hedging volume (GWh)8051
Hedging costs ($A/MWh)$65.6$95.9
Hedging spot revenue average price ($A/MWh)$58.2$99.0
Future contract close outs ($A M)-$0.1-$0.1$0.1-$0.1$0.0$0.0$0.0$0.0$0.1
Meridian Group
Employee and Operating Costs ($NZ m)222324222222222223222629
Stay in Business Capital Expenditure ($NZ m)534543333459
Investment Capital Expenditure ($NZ m)111111121121
Total Capital Expenditure ($NZ m)6456544545710
FY19 OPERATING INFORMATION
15
18 February 2020
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian operating information

Hedging volumesbuy-side electricity derivativesexcludingthe buy-side of virtual asset swaps
Average generation pricethe volume weighted average price received for Meridian’s physical generation
Average retail contracted sales pricevolume weighted average electricity price received from retail customers, less distribution costs
Average wholesale contracted sales pricevolume weighted average electricity price received from wholesale customers(including NZAS) and financial contracts
Combined catchment inflowscombined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes
Cost of hedgesvolume weighted average price Meridian pays for derivatives acquired
Cost to supply contracted salesvolume weighted average price Meridian pays to supply contracted customer sales and financial contracts
Contracts for Difference (CFDs)an agreement betweenparties to pay the difference between the wholesale electricity price and an agreed fixed price for
a specified volume of electricity. CFDs do not result in the physical supply of electricity
Customer connections (NZ)number of installation control points, excluding vacants
FRMPfinancially responsible market participant
GWhgigawatt hour. Enough electricity for 125 average New Zealand households for one year
Historic average inflowsthe historic average combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes over the last 85 years
Historic average storagethe historic average level of storage in Meridian’s Waitaki catchment since 1979
HVDChigh voltage direct current link between the North and South Islands of New Zealand
ICPNew Zealand installation control points, excluding vacants
ICP switchingthe number of installation control points changing retailer supplier in New Zealand, recorded in the month the switch was
initiated
MWhmegawatt hour. Enough electricity for one average New Zealand household for 46 days
NationaldemandElectricity Authority’s reconciled grid demand www.emi.ea.govt.nz
NZASNew Zealand Aluminium SmeltersLimited
Retail sales volumescontract sales volumes to retail customers, including both non half hourly and half hourly metered customers
Financial contract salessell-side electricity derivatives excluding thesell-side of virtual asset swaps
TJTerajoules
Virtual Asset Swaps(VAS)CFDs Meridian has with Genesis Energy and Mercury New Zealand. They do not result in the physical supply of electricity
16
18 February 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for January 2020
Meridian operating information