Meridian Energy monthly operating report for February 2020

PG 1

Meridian Energy monthly operating report for February 2020
18 March 2020
Attached is Meridian Energy Limited's monthly operating report for the month of February 2020.
Highlights this month include:
▪ In the month to 10 March 2020, national hydro storage decreased from 126% to 111% of historical average
▪ South Island storage sat at 113% of average and North Island storage at 97% of average on 10 March 2020
▪ Meridian’s February 2020 monthly total inflows were 165% of historical average
▪ Meridian’s Waitaki catchment storage at the end of February 2020 was 116% of historical average
▪ Storage in Meridian’s Waiau catchment was above average at the end of February
▪ National electricity demand in February 2020 was 2.7%

higher than the same month last year
▪ Meridian made calls under the Genesis Swaption in February and early March 2020
▪ February 2020 was warm and dry across much of the country, contrasted by high rainfall and flooding in the
lower South Island
▪ New Zealand Aluminium Smelter's load during February 2020 was below the contract level of 622MW
▪ Meridian’s New Zealand retail sales volumes in February 2020 were 20.9% higher than February 2019

Meridian yesterday issued a media release outlining the business’s preparedness activity for COVID-19. A copy of
that release can be found here:
www.meridianenergy.co.nz/news-and-events/meridian-energy-preparedness-for-covid-outbreak

ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

PG 2
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 E R AT I N G R E P O RT
F EB R UA RY 2 0 2 0

F E B R U A R Y H I G H L I G H T S
In the month to 10
March 2020, national
hydro storage decreased
from 126% to 111% of
historical average
South Island storage sat
at 113% of average and
North Island storage at
97% of average on 10
March 2020
Meridian’s February 2020
monthly total inflows
were 165% of historical
average
February 2020 was warm
and dry across much of the
country, contrasted by high
rainfall and flooding in the
lower South Island
New Zealand Aluminium
Smelter's load during
February 2020 was below
the contract level of
622MW
Meridian’s New Zealand
retail sales volumes in
February 2020 were 20.9%
higher than February 2019
Meridian’s Waitaki
catchment storage at the
end of February 2020 was
116% of historical
average
Storage in Meridian’s
Waiaucatchment was
above average at the end
of February
National electricity
demand in February 2020
was 2.7%higher than the
same month last year
Meridian made calls
under the Genesis
Swaptionin February and
early March 2020
Meridian Energy Limited Monthly Operating Report for February 20202
18 March 2020

MARKET DATA
▪National electricity demand in February
2020 was 2.7% higher than the same
month last year
▪February 2020 was warm and dry across
much of the country, contrasted by high
rainfall and flooding in the lower South
Island
▪Demand in the last 12 months was 1.1%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter's load
during February 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 January 2020
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.4% at the end
of January 2020
Source: Electricity Authority
Source: Electricity Authority
3
18 March 2020
Meridian Energy Limited Monthly Operating Report for 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
5%
7%
9%
11%
13%
15%
Jan 15Jul 15Jan 16Jul 16Jan 17Jul 17Jan 18Jul 18Jan 19Jul 19Jan 20
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

60
70
80
90
100
110
120
130
140
150
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 201931 October 201929 November 2019
31 December 202031 January 202028 February 2020
60
70
80
90
100
110
120
130
140
150
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 201931 October 201929 November 2019
31 December 202031 January 202028 February 2020
MARKET DATA
▪February 2020 saw changes in near-term
ASX prices
▪National storage decreased from 126% of
average on 13 February 2020 to 111% of
average on 10 March 2020
▪South Island storage decreased to 113% of
historical average on 10 March 2020. North
Island storage decreased to 97% of average
Source: ASX
Source: ASX
Source: NZX
4
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (10 March 2020)
86yr Average199220042008
2012201820192020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.8% during
February 2020 and have risen 5.1% since
June 2019
▪Retail sales volumes in February 2020
were 20.9% higher than February 2019
▪Compared to February 2019,
residential/SMB sales volumes increased
by 10.6% (increases in all segments) and
corporate sales volumes increased by
39.6%
▪To date this financial year, retail sales
volumes are 22.3% higher than the same
period last year
▪This reflects a 13.3% increase in
residential/SMB sales volumes and a
38.8% increase in corporate sales volumes
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian
operating
information
110
112
112
112
113
112
113
113
0000
119
119
119
120
120
120
119
76
77
78
79
80
82
83
85
107
107
108
108
108
109
109
109
109
109
109109
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
350
376
349
347
363
401
421
381
0000
248
254
233
243
247
248
272
264
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

NEW ZEALAND STORAGE
▪February 2020 monthly inflows were
165% of historical average
▪To date this financial year, inflows are
129% of historical average
▪Meridian’s Waitaki catchment storage
moved from 2,210GWh to 2,229GWh
during February 2020
▪Waitaki storage at the end of February
2020 was 116% of historical average and
29% higher than the same time last year
▪Storage in Meridian’s Waiaucatchment
was above average at the end of February
2020
6
18 March 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian
operating
information
0
500
1,000
1,500
2,000
2,500
3,000
1-Jan1-Mar1-May1-Jul1-Sep1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-201520162017201820192020
0
2,000
4,000
6,000
8,000
10,000
12,000
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
February YTD86 year average

NEW ZEALAND GENERATION
▪Meridian’s New Zealand generation in
February 2020 was 5.9% 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 8.9% higher than the
same period last year, reflecting higher
hydro generation and wind generation
▪The average price Meridian received for its
generation in February 2020 was 71.6%
lower than the same month last year
▪The average price Meridian paid to supply
customers in February 2020 was 66.8%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 28.9% lower than the same period last
year and the average price paid to supply
customers is 29.8% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian
operating
information
0
200
400
600
800
1,000
1,200
1,400
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S NEW ZEALAND GENERATION
FY20 HydroFY20 WindFY19 HydroFY19 Wind
101
123
122
121
94
51
77
43
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

AUSTRALIAN RETAIL
▪Australian retail electricity sales volumes
in February 2020 were 33.2% higher than
the same month last year
▪To date this financial year, Australian retail
electricity sales volume is 19.2% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 3.0% during
February 2020 and have risen 19.9% since
June 2019
▪Gas customer connection numbers rose
3.2% during February 2020, with total
sales in the month of 37TJ
Source: Meridian
Source: Meridian
8
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian
operating
information
63
66
55
49
46
50
51
50
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
176
192
171
119
64
51
22
37
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

AUSTRALIAN GENERATION
▪Meridian’s Australian generation in
February 2020 was 19.4% 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 13.6% lower than
the same period last year, reflecting
higher wind generation and lower hydro
generation
▪February2020average wind generation
price includes the settlement of CY19
forward sold Large Generation Certificates
Source: Meridian
9
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian
operating
information
61
56
44
44
44
41
38
32
3
7
19
17
15
16
14
9
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

NEW ZEALAND
FEBRUARY
2020
MONTH
FEBRUARY
2019
MONTH
JANUARY
2020
MONTH
DECEMBER
2019
MONTH
8 MONTHS
TO FEBRUARY
2020
8 MONTHS
TO FEBRUARY
2019
New Zealand sales
Retail contracted sales volume (GWh)6465346946505,0014,088
Average retail contractedsales price
1
($NZ/MWh)$109.5$102.1$103.3$100.0$106.7$103.1
NZAS sales volume (GWh)4334184634633,6423,489
Financial contract sales volumes
2
(GWh)2831961701641,3541,588
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$68.7$80.6$66.5$62.3$67.4$67.2
Retail customer supply volumes (GWh)6825727336695,2444,313
Cost to supplyretail customers ($NZ/MWh)$67.9$171.6$95.1$57.1$103.9$150.0
Cost to supply wholesale customers ($NZ/MWh)$36.6$153.6$76.8$45.4$89.2$129.2
Cost of financial contracts ($NZ/MWh)$47.0$156.8$86.7$81.6$90.3$124.2
TotalNew Zealand customer connections
4
317,784299,351315,225313,599
New Zealand generation
Hydro generation volumes (GWh)1,0771,0151,0951,1478,5807,962
Wind generation volumes (GWh)1081041221251,009840
Total generation volumes (GWh)1,1851,1191,2171,2729,5898,802
Average generationprice
5
($NZ/MWh)$43.4$153.1$77.1$51.4$91.0$128.0
New Zealand hedging
Hedging volume
6
(GWh)3421422961821,5291,348
Hedging costs ($NZ/MWh)$100.7$66.6$96.1$64.4$78.7$68.1
Hedging spot revenue average price ($NZ/MWh)$75.1$157.7$100.0$63.1$97.8$142.6
Future contract close outs ($NZ m)-$0.2-$0.7-$0.2-$0.9-$5.2-$3.6
10
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian operating information

AUSTRALIA
FEBRUARY
2020
MONTH
FEBRUARY
2019
MONTH
JANUARY
2020
MONTH
DECEMBER
2019
MONTH
8 MONTHS TO
FEBRUARY
2020
8 MONTHS TO
FEBRUARY
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)50385150430361
Average electricity contractedsales price
1
($A/MWh)$150.4$159.2$130.0$161.1$150.6$158.3
Retail contracted gas sales volume (TJ)3792251831161
Average gas contractedsales price
1
($A/GJ)$22.2$45.2$33.4$20.0$15.4$19.8
Financial contract sales volumes
2
(GWh)434668443
Financial contractedsales average price ($A/MWh)$122.0$122.0$79.2$90.7
Cost to supplyelectricity customers ($A/MWh)$111.9$108.0$257.6$82.2$126.3$135.7
Cost to supplygas customers ($A/GJ)$20.4$35.6$41.1$9.9$12.0$13.1
Cost of financial contracts ($A/MWh)$52.2$138.8$58.2$87.5
Powershopelectricity customer connections
7
131,647102,730127,847124,668
Powershopgas customer connections
8
33,42816,75132,38730,465
11
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian operating information

AUSTRALIA
12
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
FEBRUARY
2020
MONTH
FEBRUARY
2019
MONTH
JANUARY
2020
MONTH
DECEMBER
2019
MONTH
8 MONTHS TO
FEBRUARY
2020
8 MONTHS TO
FEBRUARY
2019
Australian generation
Wind generation volumes (GWh)32303841359359
Average wind generationprice
5
($A/MWh)$474.6$151.6$225.9$101.9$160.8$148.4
Hydro generation volumes (GWh)9211416100173
Average hydro generationprice
5
($A/MWh)$56.4$86.3$153.1$64.4$91.9$112.2
PPA generation received (GWh)28222929246109
Average PPA generationprice [net of costs] ($A/MWh)$1.4$34.3$59.5$7.8$27.9$20.2
Australian hedging
Hedging volume
6
(GWh)433950340
Hedging costs ($A/MWh)$197.7-$23.1$89.9$98.1
Hedging spot revenue average price ($A/MWh)$58.6$130.3$58.6$91.1
Future contract close outs ($A M)$0.5$0.2$0.0-$0.1$1.3$0.0
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 March 2020
Meridian Energy Limited Monthly Operating Report for February 2020
FEBRUARY
2020
MONTH
FEBRUARY
2019
MONTH
JANUARY
2020
MONTH
DECEMBER
2019
MONTH
8 MONTHS TO
FEBRUARY
2020
8 MONTHS TO
FEBRUARY
2019
Meridian Group
Employee and Operating Costs ($m)24222222190179
Stay in Business Capital Expenditure ($m)33343128
Investment Capital Expenditure ($m)22111110
Total Capital Expenditure ($m)55454238
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Retail contracted sales volume (GWh)599630583590610650694646
Average retail contracted sales price ($NZ/MWh)$113.5$115.4$109.5$102.7$99.8$100.0$103.3$109.5
NZAS sales volume (GWh)463463447463448463463433
Financial contract sales volumes (GWh)150176148129135164170283
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3$66.5$68.7
Retail customer supply volumes (GWh)645662581623650669733682
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1$95.1$67.9
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4$76.8$36.6
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6$92.8$81.6$86.7$47.0
Total New Zealand customer connections304,993307,798309,372311,694313,150313,599315,225317,784
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,0159801,0491,1471,0951,077
Wind generation volume (GWh)116135126143133125122108
Total generation volume (GWh)1,2271,2411,1411,1231,1821,2721,2171,185
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4$93.7$51.4$77.1$43.4
New Zealand hedging
Hedging volume (GWh)145139132145148182296342
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4$67.3$64.4$96.1$100.7
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6$104.1$63.1$100.0$75.1
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5-0.2-0.9-0.2-0.2
Australia contracted sales
Retail contracted electricity sales volume (GWh)6366554946505150
Average electricity contracted sales price
1
($A/MWh)$149.8$147.0$131.2$168.0$174.0$161.1$130.0$150.4
Retail contracted gas sales volume (TJ)17619217111964512237
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8$18.9$20.0$33.4$22.2
Financial contract sales volumes
2
(GWh)5443606563684643
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1$80.1$79.2$122.0$122.0
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9$89.2$82.2$257.6$111.9
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6$14.0$9.9$41.1$20.4
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1$68.3$58.2$138.8$52.2
Powershop electricity customer connections
7
111,373112,995115,099118,721121,575124,668127,847131,647
Powershop gas customer connections
8
24,09625,24026,52927,85829,18230,46532,38733,428
Australia generation
Wind generation volume (GWh)6156444444413832
Average wind generation price ($A/MWh)$115.7$124.7$127.3$125.5$110.3$101.9$225.9$474.6
Hydro generation volume (GWh)3719171516149
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4$66.9$64.4$153.1$56.4
PPA generation received (GWh)3534303130292928
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2$16.5$7.8$59.5$1.4
Australia hedging
Hedging volume (GWh)3639365048503943
Hedging costs ($A/MWh)$67.2$98.6$107.3$95.5$89.9$89.9-$23.1$197.7
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7$72.3$58.6$130.3$58.6
Future contract close outs ($A M)$0.0$0.2-$0.1$0.0$0.7-$0.1$0.0$0.5
Meridian Group
Employee and Operating Costs ($NZ m)2424252524222224
Stay in Business Capital Expenditure ($NZ m)43444433
Investment Capital Expenditure ($NZ m)12212112
Total Capital Expenditure ($NZ m)55656545
FY20 OPERATING INFORMATION
14
18 March 2020
Meridian Energy Limited Monthly Operating Report for February 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$159.2$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$45.2$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$108.0$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$35.6$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$151.6$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$86.3$79.3$77.4
PPA generation received (GWh)1110713121129223331
Average PPA generation price [net of costs] ($A/MWh)-$66.0-$63.9-$71.3-$65.5$121.3$20.8$59.5$34.3$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$0.2$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 March 2020
Meridian Energy Limited Monthly Operating Report for February 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 March 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for February 2020
Meridian operating information