Marlborough Lines Limited Electricity Line Charges from 1 April 2014

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consumer. For more information visit http://www.marlboroughlines.co.nz/about-us/disclosures.aspx Marlborough Lines Limited Electricity Line Charges Marlborough Lines Limited Electricity Line Charges Marlborough Lines will provide an annual discount to qualifying consumers in March 2015, provided there is no legislative or regulatory change which would adversely affect the provision and/or receipt of discounts. To qualify a consumer must be connected to the network on the qualification date in March 2014 and not be located within the Network's "Remote" Area. The total discount to be paid is estimated at $8.025 million excluding GST. The value of the discount is based on the usage and line charges paid for each installation during the period from 1 February 2013 to 31 January 2014. The minimum discount rates are set out in the price schedule below. Discounts will be calculated and paid to the retailers at the end of March 2015. Marlborough Lines arranges for electricity retailers to pass on the discount to each qualifying Residential Connections - Standard Option DS Daily Charge - up to 20kVA Capacity $ / day 1.143 0.230 1.143-10,981 DT Daily Charge - above 20kVA Capacity $ / day 2.286 0.459 2.286-584 70 DSNL Daily Charge - up to 20kVA Capacity $ / day 1.143 0.230 1.143-2,607 2,117 Applies if the Low Fixed Charge (DL) is not available Energy Based Charges - Available with fixed charge codes DS, DSNL or DT 10 Uncontrolled Energy c / kwh 8.457 1.692 5.474 2.983 12 Hot Water - Controlled Energy - Note 3 c / kwh 4.946 0.990 4.539 0.407 Normally a minimum of 15 hours per 24 hour period 18 Night Rate - Controlled Energy - Note 3 c / kwh 2.140 0.428 2.140 - Available from 11pm to 7am Residential Connections - Low Fixed Option - Only available in Non-Remote Areas and for Capacity < 15kVA DL Daily Charge - up to 15kVA Capacity - Note 2 $ / day 0.150 0.030 0.150-4,459 Fixed Charge applicable to code 11, 16 &/or 17 Energy Based Charges - 11 Uncontrolled Energy c / kwh 12.988 2.605 10.005 2.983 Available with fixed charge code DL 16 13 hour Controlled Energy - Note 1 c / kwh 9.476 1.902 9.069 0.407 Available with fixed charge code DL 17 Night Rate - Controlled Energy - Note 1 c / kwh 6.669 1.340 6.669 - Available with fixed charge code DL DG Distributed Generation - (small scale) for volumes input into network Exported energy all time periods - Note 9 c / kwh 0.500-0.500-50 Applies to all volumes supplied back into network Schedule, 31 January 2014 Page 1

Marlborough Lines Limited Electricity Line Charges Non-Residential Group 1 - up to 45kVA - includes 3 phase 60 amp supply NS Daily Charge up to 15kVA $ / day 1.664 0.333 1.664-752 189 NH Daily Charge up to 16 to 30kVA $ / day 2.288 0.458 2.288-403 39 NT Daily Charge up to 31 to 45kVA $ / day 3.380 0.676 3.380-1,333 70 Energy Based Charges - Available with fixed charge codes NS, NH or NT 23 Uncontrolled Energy c / kwh 8.457 1.692 5.335 3.122 20 20 hour Controlled Energy - Note 3 c / kwh 6.816 1.363 6.816 - Tarrif closed from 22 13 hour Controlled Energy - Note 3 c / kwh 4.946 0.989 4.946 - Normally on minimum of 15 hours per 24 hour period Unmetered Supplies US Unmetered Supplies up to 8kWh per day $ / day 2.350 0.470 2.350-26 7 UL Unmetered Supplies above 8kWh per day $ / day 3.640 0.728 3.640-3 2 Non-Residential Group 2 - up to 70 kva Capacity RT Daily Charge 46 to 70 kva $ / day 9.256 1.851 9.256-255 12 Energy Based Charges - Available with fixed charge code RT 31 Uncontrolled Energy c / kwh 6.857 1.371 3.735 3.122 30 20 hour Controlled Energy - Note 3 c / kwh 6.286 1.257 6.286 - Tarrif closed from 22 Hot Water Controlled Energy - Note 3 c / kwh 4.946 0.989 4.946 - Normally on minimum of 15 hours per 24 hour period Non-Residential Group 3-70 to 140 kva Capacity, RV Daily Charge 70 to 105kVA $ / day 16.432 3.286 16.432-79 2 RX Daily Charge 106 to 140kVA $ / day 21.944 4.389 21.944-52 3 Energy Based Charges - Available with fixed charge code RV or RX 40 Uncontrolled Energy c / kwh 6.276 1.255 3.154 3.122 22 Hot Water Controlled Energy - Note 3 c / kwh 4.946 0.989 4.946 - Normally on minimum of 15 hours per 24 hour period Schedule, 31 January 2014 Page 2

Marlborough Lines Limited Electricity Line Charges Group 4 - above 140 kva Capacity - Low Voltage Supply BF Daily Charge $ / day 6.900 1.810 6.900-105 Energy Based Charges - Available with code BF with LV Metering 51 Day Energy - Note 4 c / kwh 2.411 0.482 2.300 0.111 50 Night Energy - Note 4 c / kwh 0.468 0.094 0.468 - WL Regional Peak Demand Charge Note 5 $ / kva / Month 5.774 5.774 Based on demand in peak periods AL Capacity Charge Note 6 $ / kva / Month 11.050 2.984 11.05 - Based on Assessed Capacity Group 4 - above 140 kva Capacity - High Voltage Supply - HV Equipment by MLL BHM Daily Charge $ / day 6.900 1.810 6.900-5 Energy Based Charges - Available with code BHM with HV Metering 61 Day Energy - Note 4 c / kwh 2.341 0.468 2.234 0.107 62 Night Energy - Note 4 c / kwh 0.454 0.091 0.454 - WM Regional Peak Demand Charge - Note 5 $ / kva / Month 5.610 - - 5.610 Based on demand in peak periods AM Capacity Charge Note 6 $ / kva / Month 10.731 2.897 10.731 - Based on Assessed Capacity Group 4 - above 140 kva Capacity - High Voltage Supply - HV Equipment by Consumer 4 BHC Daily Charge $ / day 6.900 1.810 6.900 - Energy Based Charges - Available with code BHC with HV Metering 61 Day Energy - Note 4 c / kwh 2.341 0.468 2.234 0.107 62 Night Energy - Note 4 c / kwh 0.454 0.091 0.454 - WH Regional Peak Demand Charge - Note 5 $ / kva / Month 5.610 - - 5.610 Based on demand in peak periods AH Capacity Charge - Note 6 $ / kva / Month 10.481 2.830 10.481 - Based on Assessed Capacity Schedule, 31 January 2014 Page 3

Marlborough Lines Limited Electricity Line Charges Irrigation and Similar Seasonal Loads Fixed Charges PM Capacity Charge Minimum $ / day 2.743 0.549 2.572 0.171 158 4 For Installed capacity 7.5kW to 23kW PK Capacity Charge $ / kw / day 0.119 0.023 0.108 0.011 135 13 For Installed capacity above 23kW PH Provided Capacity Charge $/ kva / day 0.076 0.015 0.065 0.011 2 Applies when additional transformer capacity required Energy Based Charges - Available with PM, PK, & PH 96 Controlled Seasonal Energy - Note 3 & 7 c / kwh 2.805 0.561 2.805 - Consumption during September to May only. 97 Non Seasonal Energy - Note 7 c / kwh 23.378 4.676 23.378 - Consumption during June July August only. Controlled Street Lighting Group Customers 80 Streetlight Energy c / kwh 1.050 0.210 0.670 0.380 For fixed charge codes MDCFC, PMFC, RNZFC MDCFC MDC/Transit Streetlighting Fixed Charge $ / month 14,133 2,827 14,133-1 PMFC Port Marlborough Street Lighting Fixed Charge $ / month 515.40-515.40-1 SQ Port Marlborough mutiple street lights - maintenance $ / month 953.88 953.88 RNZAF RNZAF Base Woodbourne Street Lighting - multiple lights $ / month 263.90-263.90-1 - Controlled Street Lighting - Individual Customers PSLT1 Individually Owned / Private Streetlight less than 150W $ /fitting/month 17.00-17.00-4 Includes Maintenance Charge PSLT2 Individually Owned / Private Streetlight above 150W $ /fitting/month 22.75-22.75-1 Includes Maintenance Charge Power Factor (PF) Charges PFT Power Factor Charges - Time of Use ICPs - Note 8 kvar/month 10.400-10.400 - Power Factor calculated from ToU data PFI Power Factor Charges - Non-ToU ICPs - Note 8 kvar per Day 0.352-0.352 - Power factor assessed Schedule, 31 January 2014 Page 4

Marlborough Lines Limited Electricity Line Charges and General Conditions 1. "Remote'' areas are identified on the map on Marlborough Lines web site. The Low User option and the annual discount are not available to Consumers within the Remote areas. www.marlboroughlines.co.nz 2. MLL may charge fixed charges for the period of disconnection where an installation is reconnected within 12 months from the date of disconnection,. 3. Controlled Loads must have automatic ripple control. Minimum loads are required: Codes 12, 16, 17, 18, 22 & 28 minimum load - 1.5kW, Code 96 & 97 minimum load 7.5kW, Codes 20 & 30 mimimum load, 10kW. 4. 5. 6. 7. 8. 9. These tariffs require ToU metering. The Day period is 7am to 11pm, and the Night period 11pm to 7am. The Regional Peak Demand charge is payable each month. The chargeable kva is set by the Network based on the average of the highest six peak half-hourly demand measured between the hours of 7:30am - 10am and 4:30pm -7pm during weekdays each month from May to September in the year prior. Where the data is not available an estimate will be made. The capacity charge is based on the Network's assessment of capacity provided by the Network for the Installation. This takes into account the actual peak demands imposed by the installation and the transformer capacity provided by the Network. In general, the assessed capacity will not be less than 60% of the transformer s capacity. Supply to Irrigation and similar seasonal loads will generally be available for a minimum of 19 hours per day subject to Network requirements. The higher non seasonal rate applies from 1 June to 31 August inclusive. Marlborough Lines will charge where the power factor at an installation falls below 0.95. at the time of the six highest monthly demands, Marlborough Lines may charge the power factor charge. The charge for loads is : Chargeable kvar * price per kvar, where the Chargeable kvar is the total kvar less the kvar at 0.95 power factor, at the time of the six highest monthly demands. The charge for generators where the actual or assessed mean power factor at the time of the six highest monthly outputs is lagging, i.e. importing reactive power, Marlborough Lines will charge for generators is : Chargeable kvar * price per kvar, where the Chargeable kvar is the total imported kvar. A price code of DG applies to volumes input into the Network from small scale distributed generation installations. The price for lines services was 0.0 cents /kwh in FY14 and has increased to 0.5 cents /kwh. 10 Loss Factors Loss Code Loss Factor Loss Factor Low Voltage Metering MLLV Load (Consumption) 1.0693 Export (Generation into the Network) 1.0072 High Voltage Metering MLHV 1.0384 1.0225 Schedule, 31 January 2014 Page 5