Transpower CEO will not be extending contract

16 May 2007

Transpower CEO will not be extending his 5 year contract

David Gascoigne, Chair of the Transpower Board, announced today that Dr Ralph Craven will not be extending his current employment contract term of five years.

The Board had entered into discussions with Dr Craven regarding an extension of his term, but he has decided that he does not wish to have it continued past its current expiry date.

"Dr Craven has strong Board support, is an excellent CEO and has ably led the company through challenging times.

“After joining Transpower in May 2003, Dr Craven recognised the need for a considerable increase in investment in the National Grid. Under his guidance capital expenditure on refurbishments, upgrades and new investments has increased from $50m in 2003 to over $340m in 2006/2007.

“Following a review of Transpower’s ability to deliver the type of System Operator service New Zealand deserves, Transpower is also investing some $50m to upgrade the major computer based tools used by the System Operator to ensure that the company, as System Operator, has the capability to operate the wholesale electricity market at world's best practice.

“Dr Craven has now been with Transpower for over four years and it is with regret that the Board has accepted that he will not be extending his contract.

“Dr Craven has built an excellent team and has led Transpower very capably. The company is now well positioned to continue its role as the owner, operator and planner of the National Grid, and to make the investments in infrastructure that are needed to promote renewables and sustainability - and to serve the interests of the country as a whole,” Mr Gascoigne said.

ends

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