Contact Energy

Contact Energy

Type	Public (NZX: CEN)
Industry	Electricity generation Electricity retailing Natural gas wholesaling Natural gas retailaing LPG retailing
Founded	1996 (1996)
Headquarters	Wellington, New Zealand
Key people	Grant King, Chairman Dennis Barnes, Chief Executive
Revenue	NZ$2,230,900,000[1]
Operating income	NZ$441,415,000[1]
Profit	NZ$150,294,000[1]
Total assets	NZ$5,643,499,000[1]
Total equity	NZ$3,235,610,000[1]
Employees	~1,000 (2008)[2]
Website	www.contactenergy.co.nz

Contact Energy Limited (NZX: CEN) is a New Zealand electricity generator, natural gas wholesaler and electricity, natural gas, and LPG retailer.

The company is the second-largest electricity generator in New Zealand (after Meridian Energy), generating 24 percent of New Zealand's electricity in the year ending 31 December 2009, and has the second-largest market share of the country's electricity retailers (after Genesis Energy).^[3] Contact owns and operates nine power station in New Zealand, is the operator of one other New Zealand power station, and owns 25% of one Queensland power station. The New Zealand power stations consist of three gas turbine facilities, in Auckland, Hamilton and Taranaki; four geothermal stations north of Taupo, and two hydroelectric dams on the Clutha River.

Contact Energy originated with the partitioning of the Electricity Corporation of New Zealand in 1996, and publicly listed in 1999. The Australian energy company Origin Energy holds a 51% shareholding in Contact Energy.

History

Contact Energy was incorporated on 8 November 1995 and became a state owned enterprise on 18 November 1995.^[4] Contact commenced operations on 1 February 1996, acquiring assets from ECNZ with a payment of $1.6 billion.^[4] As the founding chief executive, Paul Anthony was instrumental in establishing the corporation distinct from ECNZ.

In 1999, the company was sold in a public offering of shares, with 40% purchased by Edison Mission Energy (EME) as cornerstone shareholder. EME subsequently increased its shareholding to 51%.

Following financial difficulties elsewhere in its business, EME onsold its shareholding to Origin Energy in 2004.

During the 2008 financial crisis, Contact decided to increase prices by up to 12%, while doubling its directors' fees. As a result, it lost more than 40000 customers in six months - 10% of the total. Its profit was halved. Contact calls this the worst blow to its reputation in the company's history.^[5][6]

Power stations

Contact Energy owns and operates (unless otherwise stated) the following power stations:

Name	Fuel	Type	Location	Capacity (MW)	Annual Average Generation (GWh)	Commissioned	Notes
New Zealand stations
Clyde	Hydroelectric	Conventional	Clyde, Otago	432	2050	1992
Ohaaki	Geothermal	Flash steam	Ohaaki, Waikato	70	300	1989
Otahuhu B	Gas	Combined-cycle turbine	Otahuhu, Auckland	380	2380	2000
Poihipi	Geothermal	Flash steam	Wairakei, Waikato	55	350	1996
Roxburgh	Hydroelectric	Conventional	Roxburgh, Otago	320	1610	1956-1962
Stratford	Gas	Open-cycle / Combined-cycle turbine	Stratford, Taranaki	585	3350	1998, 2010
Te Huka	Geothermal	Binary cycle	Taupo	23		2010
Te Rapa	Gas	Open-cycle turbine Cogeneration	Te Rapa, Waikato	44	200	2000
Wairakei	Geothermal	Flash steam / Binary cycle	Wairakei, Waikato	161	1310	1958, 2005
Whirinaki	Diesel	Open-cycle turbine	Whirinaki, Hawke's Bay	155	9	2004	Owned by New Zealand Government
Overseas stations
Oakey	Gas/Oil	Open-cycle gas turbine	Toowoomba, Queensland, Australia	300		2000	25% owner

Decommissioned stations

Name	Fuel	Type	Location	Capacity (MW)	Annual Average Generation (GWh)	Commissioned	Decommissioned	Notes
New Plymouth	Gas / Oil	Steam turbine	New Plymouth, Taranaki	600		1974	2008
Otahuhu A	Gas	Open-cycle turbine	Otahuhu, Auckland			1968

Developments

Generation developments

Contact Energy Development Projects

Name	Fuel	Location	Proposed capacity (MW)	Status	Notes
Hauāuru mā raki	Wind	west Waikato	504	draft consent granted
Hawea	Hydro	Lake Hawea, Otago	17	Consents granted
Tauhara stage 2	Geothermal	near Taupo	250	Consents granted
Te Mihi	Geothermal	north of Taupo	159	under construction	To replace Wairakei station
Waitahora	Wind	Puketoi Ranges, east of Palmerston North	156	Consents granted

Other developments

In 2001 and 2002, Contact and Edison Mission Energy developed the Valley Power Peaking Facility near Traralgon in Australia. This plant was sold in 2005.^[7]

In 2006, Contact and Genesis Energy set up a joint venture project called Gasbridge to provide an option to import LNG.^[8] Their proposed terminal at Port Taranaki was highly controversial, and the plan was shelved in favour of an offshore terminal plan in mid 2009. ^[9]

Contact and Origin Energy have developed a gas storage project at the depleted Ahuroa reservoir in Taranaki.^[10]

Contact has indicated it intends to begin public consultation on hydro developments on the Clutha River, at Queensbury, Luggate, Tuapeka and Beaumont.^[11][12]

See also

• Electricity sector in New Zealand
• New Zealand Electricity Market

References

1. ^ ^{a b c d e} "2011 Annual Report". Contact Energy. 22 August 2011. http://www.contactenergy.co.nz/web/shared/financialresults?vert=in. 
2. ^ "About Us". Contact Energy. http://www.contactenergy.co.nz/web/view?page=/contentiw/pages/aboutus/aboutus&vert=au. Retrieved 2008-07-01. 
3. ^ "Energy Data File". MED. July 2010. http://www.med.govt.nz/templates/StandardSummary____15169.aspx. 
4. ^ ^{a b} Annual Report 1996. Contact Energy. 11 December 1996. 
5. ^ Bradley, Grant (15 August 2009). "Director-fee fallout hurts Contact". NZ Herald. http://www.nzherald.co.nz/droughts/news/article.cfm?c_id=180&objectid=10590906&pnum=0. 
6. ^ "The Market Teaches Contact A Lesson After Director’s Fees Fiasco". NZ Energy & Environment Business Week. 29 April 2009. http://nzenergy-environment.co.nz/home/free-articles/the-market-teaches-contact-a-lesson-after-directors-fees-fiasco.html. 
7. ^ "Contact Energy Announces Sale Of Valley Power Stake" (Press release). 31 August 2005. http://www.contactenergy.co.nz/web/mediaandpublications/pressreleases/2005/20050831_01. Retrieved 13 February 2011. 
8. ^ "Gasbridge - Preserving New Zealand's future energy options". Gasbridge. 4 October 2006. http://www.gasbridge.co.nz/uploads/File/gasbridge_site_announcement.pdf. 
9. ^ "Port LNG proposal off table". Taranaki Daily News. 2 July 2009. http://www.stuff.co.nz/taranaki-daily-news/news/2557509/Port-LNG-proposal-off-table. Retrieved 10 May 2010. 
10. ^ "Contact Energy opens $400 million development in Taranaki" (Press release). Contact Energy. 31 May 2011. http://www.contactenergy.co.nz/web/mediaandpublications/pressreleases/2011/2011-05-31-contactenergyopens400milliondevelopmentintaranaki. 
11. ^ Joanne Carroll (3 March 2009). "Contact to release Clutha hydro plans". The Southland Times. http://www.stuff.co.nz/southland-times/news/1759384. 
12. ^ "New hydro on the Clutha". Contact Energy. 17 April 2009. http://www.contactenergy.co.nz/web/view?page=/contentiw/pages/ourprojects/cluthahydro-introduction&vert=ch. 

External links

• Contact Energy