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Low hydro lake levels and high wholesale electricity prices shouldn't hurt power companies' profits because they are passing costs on to customers, says credit rating agency Standard & Poor's.
But continued poor water storage levels could lead to a deterioration in companies' balance sheets, said credit analyst Chris Cudsi.
"Their substantial internal hedging of generation output against their respective retail customer base (at least 80 per cent of generation output) means they have been passing on most of the increased energy costs to retail customers," Cudsi said.
"Accordingly, generator retailers are expected to perform within 5 per cent of earnings forecasts in fiscal 2008, despite hydro storages currently tracking at their worst level since 1992, or around 60 per cent of average."
Wholesale prices had jumped 186 per cent in May from a year earlier, to $210 per megawatt hour, as total hydro lake storage across both islands fell.
S&P rated Contact Energy, Meridian Energy, Genesis Power, and Mighty River Power, along with Transpower, Powerco, Vector Port of Tauranga and Watercare.
In a report titled "Industry Report Card: New Zealand Utilities Are Powering Along", S&P also said the nine companies rated had seen minimal impact on their credit quality as a result of the credit squeeze.
"The rated New Zealand utilities are expected to manage future refinances with minimal problems, despite significant projected annual capital expenditure of over $2 billion across the sector over the next few years."
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Genesis Energy, the state owned power company and owner of the Huntly Power station has announced the replacement for its long serving chief executive Murray Jackson.
Canadian Albert Brantley will succeed Jackson who leaves the company in August at the end of his contract term.
Chairman Brian Corban said Brantley had 30 years' industry experience at the international level and would be an "able successor" to Jackson.
His leadership work record includes large scale energy facilities including building power stations in Abu Dhabi.
Brantley spent five years as chief executive of the New Zealand listed gold producer, L&M Mining.
His most recent leadership role was in 2007 as chief operating officer of Oceanagold, operator of the Macraes mine near Dunedin.
Genesis is New Zealand's largest energy retailer, with more than 700,000 electricity and gas customers, mostly in the North Island. It is also heavily involved in gas exploration and production in Taranaki.
- NZPA
