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Letter to NZ Government Re: Genesis Power Station

Dear Prime Minister and Ministers,

We are upset by media reports today that your Government plans to fast track and approve funding for the proposed Rodney Power Station.

Genesis Energy advised the Electricity Commission on 4 December 2008 that:
(a) the power station should not be regarded as "committed" or "likely to proceed", and
(b) Genesis Energy has not secured enough gas to operate it.

The RMA process for the power station proposal is still underway and we are waiting for a decision to be released for several of the applications.

The power station proposal was publicly notified in April 2008, the hearing took place in October, and any delays in the RMA process have been due to either Genesis or the council/commissioners.

Some of the resource consents were granted in December and have been appealed to the Environment Court. By Genesis Energy. No other party has appealed the applications that have been approved so far.

Were you aware that the project will require an additional spend of $117 million for just the gas infrastructure? (Vector costings) Or that it's not going to be a fast start peaking plant that can be turned on and off when needed? Or that according to Transpower and NorthPower, a CCGT baseload plant like the one proposed for Rodney is very likely to 'trip' if there is a power outage? So there will be no security of supply for Auckland or Northland if that happens.

Please reconsider the Job Summit recommendation that the Govt fund and/or fast track the Rodney Power Station. I agree that the (eventual) construction would create more jobs. But if Genesis Energy doesn't have the gas to run it, the power station will sit idle and the Government will end up spending a half a billion dollars on a white elephant.

Yours sincerely,

Amisha & Tony O'Brien

ENDS

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