Meridian owns Tekapo A and B power stations, but the Electricity Industry Act passed by Parliament last year directs they be sold to Genesis.
Meridian would retain ownership and operation of the other six power stations on the Waitaki system.
The move, along with other measures in the Act which came into force on November 1, is aimed at increasing competition in the electricity industry.
Both state-owned enterprises have been working since last year on formalising the sale of the two power stations, this week confirming major agreements, including a water management plan, have been completed. Minor issues are still being resolved.
No date has been set for the sale to be completed, although the aim was still to have that done in the first half of this year.
While neither company would be drawn on a possible date, a logical handover would be July 1 when the financial years of both companies start.
When contacted by the Otago Daily Times, Genesis public affairs manager Richard Gordon said the final date would be set by the Government, which owns both companies.
Once negotiations were completed, the agreements would be sent to the Government, which would direct both companies' boards of directors on the changeover date.
"The discussions are still proceeding and there are a few things to be sorted out yet. Things are moving along at a fair rate and it's not far away," he said.
One of the issues still being discussed was how Genesis would be involved with the Tekapo community. Meridian operates a community fund which makes grants to organisations in the Waitaki generation area from Tekapo to Kurow.
When Genesis takes over Tekapo A and B, the Tekapo community would not have access to the Meridian fund.
"We have been discussing that with the Tekapo community leaders. I can't say at this stage what we are thinking in terms of community involvement. We may have other ways of managing that," he said.
Asked what the takeover of Tekapo A and B would mean for South Island electricity consumers in terms of prices, Mr Gordon said Genesis' acquiring those assets meant it would become a national retailer offering competitive prices.
It had been doing that in Dunedin, Christchurch and Queenstown since February last year and had gained about 20,000 customers by the end of last year in the South Island.
"Our view ... is price is an important part of that," he said.
Meridian and Genesis had also reached a "virtual assets swap" agreement through a long-term electricity hedge agreement. Under that, Genesis would buy up to 450GWh of electricity a year from Meridian in the South Island and sell the same amount to Meridian in the North Island.
That agreement, along with the purchase of Tekapo A and B, enabled Genesis to expand its South Island business.
Asked what Genesis would pay Meridian for Tekapo A and B, Mr Gordon said that had to be set and, while not sure if it would be made public, acknowledged it would probably be revealed in the two companies' annual reports.
In Genesis' interim annual report, board chairman Dame Jenny Shipley said a great deal of work had been accomplished on the change of ownership.
A wide range of transitional, operating and water agreements had been negotiated, Tekapo operations staff recruited and a Christchurch office established.
Meridian spokeswoman Michelle Brooker also confirmed consultation was still under way with Genesis on the sale, which was expected to be concluded in the first half of this year.
