Conflict of interest denied in power PR

By Mark Reynolds

A public relations firm behind an aggressive campaign to help TransAlta Canada buy out minority shareholders in TransAlta New Zealand has another big power industry player on its books.

Wellington-based communications business Sue Wood & Associates also acts locally for Edison Mission, the California-based firm that is the main shareholder in privatised Contact Energy.

Contact and TransAlta NZ are the two largest retail electricity firms in the country.

Between them they deliver power to nearly one million of the nation's 1.6 million electricity consumers.

But Sue Wood said there was no conflict of interest in her company's roles.

"Both clients know of the work we are doing and saw no conflict. We are not working for TransAlta New Zealand. We're simply advising the parent company on the communication of a share offer."

The campaign aims to help TransAlta Canada to buy the 33 per cent of TransAlta NZ it does not already own. That includes a 12 per cent block held by the Hutt Mana Energy Trust, which owns the shares on behalf of 84,000 consumers.

The TransAlta Canada campaign has included full-page advertisements in newspapers and a letter-writing campaign urging consumers to ask the community trust to sell.

Sue Wood said her company was working for TransAlta Canada as a one-off project. "We do not have a long-term relationship with TransAlta Canada."

She said her company was not involved in TransAlta NZ's business activities. TransAlta NZ uses Shandwick NZ for external public relations advice. Shandwick declined to work with TransAlta Canada on its latest buyout offer because it would have had a conflict of interest.

As adviser to TransAlta NZ, it played a big role in communicating that company's strategy in bidding last year for a key 40 per cent shareholding in Contact Energy. Shandwick's advice has also helped TransAlta NZ mount arguments against the pricing regime of national grid operator Transpower.

The external communications adviser for Transpower is Sue Wood & Associates.