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This eBook is a reproduction produced by the National Library of New Zealand from source material that we believe has no known copyright. Additional physical and digital editions are available from the National Library of New Zealand.

EPUB ISBN: 978-0-908328-19-2

PDF ISBN: 978-0-908331-15-4

The original publication details are as follows:

Title: Hydro-electric power development in New Zealand

Author: Birks, Lawrence

Published: Govt. Printer, Wellington, N.Z., 1924

PUBLIC WORKS DEPARTMENT, NEW ZEALAND

HYDRO-ELECTRIC POWER DEVELOPMENT IN NEW ZEALAND.

BY LAWRENCE BIRKS, B.Sc, M.lnst.C.E., M.1.E.E., &c.

Chief Electrical Engineer, Public Works Department, New Zealand.

Prepared for presentation to the World Power Conference, Empire Exhibition, London, July, 1924.

WELLINGTON.

BY AUTHORITY: W. A. G. SKINNER, GOVERNMENT PRINTER

1924.

HYDRO-ELECTRIC POWER DEVELOPMENT IN NEW ZEALAND.

BY LAWRENCE BIRKS, B.Sc, M.lnst. C.E., M.1.E.E., &c,

Chief Electrical Engineer, Public Works Department, New Zealand

Sl.-M.MAUY.

1. Topographical.

2. Historical.

3. Private Developments.

1. Government Developments.

5. Government Schemes under Construction.

6. Electric-power Board Schemes under Construction.

7. Hydro-electric-power Schemes in' Operation.

S. Kleetric-power Hoards.

9, Financial Results.

10. Daily Load Factor.

11. General Considerations.

1. Topographical.

New Zealand is particularly well provided with available water-power, and has appropriately been termed " the Switzerland of the Southern Hemisphere."

Although the area of the Dominion is limited (102.250 square miles in the two main islands), the soil is generally very fertile, and the climate is temperate and equable.

A large proportion of the area consists of highlands, and the mountains are lofty. Many of the mountain-peaks range from 7,000 ft. to 10,000 ft., and there are extensive plateaux at elevations of I,oooft. to 3,000 ft. above sea-level. On these highlands the rainfall and run-off are high, and the energy available in the water flowing from the higher to the lower levels is abundant. On the plains, on the other hand, the rainfall, though ample, is not unduly heavy, and the land is very productive.

As a result of the topography of the highlands there are a considerable number of large and small lakes. In addition to the lakes there are a large number of high-level swamps, the outlets of which can be easily raised by means of low dams in such a way as to form artificial lakes, giving in some cases quite extensive storage areas.

The total water-power available in the Dominion in sources of 1,000 h.p. or more is about 770,000 h.p. in the North Island and 4,100,000 h.p. in the South Island, as set out in the table here with. Unfortunately, the largest blocks of power arc situated in very inaccessible positions in the southern fiords, although fairly close to navigable waters.

2. Historical.

With such extensive resources in water-power attention was directed to its development fairly early. A large number of temporary water-wheels were constructed in connection with gold-mining, particularly in Otago and Westiand, from 1852 onward, and a small public hydro-electric supply plant was installed at Keefton in 1887.

In 1898 the Stratford Electric Supply Company obtained legislative authority to develop electric power for the supply of Stratford Borough, and a 120 h.p. plant was installed on the Patea River in that year.

The first extensive bydro-electric-power proposal was for the development of the Waimakariri River by the Chrifltchurch City Council, and an enabling Act was passed for this purpose in 1902 authorizing the city to raise the sum of £300,000, but this scheme was not carried out at the time.

In 1902 the Hawera County Electric Supply Company obtained legislative authority to develop power in the Waingorongoro Stream, near Hawera, and is now operating with a capacity of 600 kw.

In 1903 the Borough of Dannevirke obtained authority to develop hydro-electric power and to borrow £40,000 for this purpose, but this scheme was not proceeded with.

In 1904 the Waipori Flectric Power Act was passed authorizing the development of the Waipori Falls, near Dunedin, by a private company. This scheme was proceeded with and taken over before completion by the Dunedin City Council. It is now in operation with a capacity of 9,000 kw., and plans have been drawn up for extension to 20,000 kw.

These various schemes drew the attention of the Government to the necessity of developing water-power generally, and in 1904 a full investigation was made, and a comprehensive report was prepared by the Engineer-in-Chief, Mr. P. 8. Hay, describing all the then known sources of power in

4

the .Dominion, amounting to ōm.iKto h.p. in the North Liar id and :;.2no,(K)<i b.p. in the South (Island. At that time the power actually developed in the Dominion from all sources was estimated at. 180,588 h.p., of which 9,911 h.p. was from water-power.

In 1903 the Water-power Act was passed, vesting in the.Crown the sole right <>f developing any future water-power m the Dominion for the distribution or sale 1,) electrical energy, thus in t Lis extent separating Ihe title to the water-power from the title to the land. A landowner can still freely develop the water-power on Ins hind lor his own use.

■:;. Private Developments.

The Public Works Amendment Act, 1908, authorized the Government to grant licenses to any person or body to develop water-power under such conditions as may be laid down in the license, and a considerable number of such licenses have been issued from time to time since that dale, mainly to local authorities and to a few private individuals and companies.

The usual conditions under which these licenses are now issued are as follows :

(a.) Period, forty-two years, subject to renewal at the discretion of tie- Government.

(6.) Rental for use of water, Is. per kw. year in the case of local authorities and Is. per kw year in the ease of private companies. (.. \ Tl. . (' j. —j.-" _ .1. ■ Lj. . 1 . ,1 1 1

(<:.) The Government retains the right to purchase the plant at valuation.

(</.) Maximum retail and wholesale selling-rates are fixed usually in the neighbourhood oi 9d. for lighting and 4£d. for power and heating for retail supply, and £l2 per k.v.a. year plus ),d. per unit for wholesale supply. Within these limits the actual sellingprices are determined from time to time by the licensee.

{<'.) It the Government run electric lines from a source of power outside the licensee's district tu ''"' boundary of the licensee's district, the licensee shall provide a connectingline, and shall exchange power with the Government, if available and if required, at a rate nol exceeding Id. per unit in the daytime and .Id. per unit in the night.

Licenses have been issued under these or similar conditions to the Waihi Gold-rnining Company for the development of Horahora Rapids (6,300 kw.), and to three private companies and twentyone local authorities Eor developments which are now in service, and to seven Electric-power Boards for developments which are under construction.

4. Government Developments.

Persistent demands were made for Borne years that the Government should develop the power Bources of the Dominion itself for the benefit of the people generally, and in L9lO the Aid to Waterpower Works Act 9 .uthorizing the Government to borrow £500,000 for this purpose, and the Lake Coleridge scheme for the supply of Christchurch City and Canterbury Province was selected for development. Operations were commenced on these works in L9ll and completed in 1915 with a capacity of 4,500 kw. which has since been extended to 12,000 kw. This scheme has proved thoroughly successful. The demand will shortly exceed the capacity, and extensions to a total capacity of 27,000kw, are under construction. Since the successful inauguration of the Lake Coleridge scheme, a complete system was drawn tip of interconnected [tower systems in both the North and South Islands, as shown on the maps herewith.

In order to carry out the comprehensive scheme the following further authorities were granted by Parliament: —

Electric-power Works Loan Act, 1919. £

1. Arapuni electric-power works, Waikato River, 96,000h.p... .. .. t,600,000

2. Mangahao electric-power works, 24,000 h.p. .. .. .. 1,600,000

3. Extensions of Lake Coleridge electric-power works to 16,000 h.p. .. .. 257,500

4. Purchase of the Hunihora electric-power works, Waikato River, from the Waihi Gold-mining Company, 8,400 h.p. .. .. .. .. .. 212,500

5. Extensions to the Horahora electric-power works, 14,000 h.p. 200,000 1: ....... (. .... 1... w~.,'. 1 ...1 —.«

6. Surveys for the Waikaremoana scheme .. .. .. .. 30,000

7. Surveys for the Otugo scheme .. .. .. .. .. ~ 30 000

£6 330,000

Firtartce Act, 1920. £

1. Waikaremoana electric-power works, 40,000h.p. .. .. .. .. 2.iinnjnHi Ok 1 11 >i it. Riira* rAani-*An unmi» mnJni ~. iltiti I. . ......

'2. tvaituna River electric-power works, 5,000 h.p. .. .. .. 150 000 ". - i frt tlia l.nl.'ii nlAAt-»i.> ...... -....1 .. ' l . " I ***-»/-» ■"».-*>-*

3. Extensions to the Lake Coleridge electric-power work., to 36,000 b.p. .. 720,000

4. Surveys and preliminary investigations for other electric-power schemes .. 30 000

0.000

A very complete report and estimate of the demand and cost of supply for the North Island was submitted by the Chief Electrical Engineer, -Mr. Evan Parry, B.Sc., &c., in Octobei 1918 After a full dismission of the use of electricity in the Dominion lie assessed the demand at j h.p. (0-15 kw.) per bead of population, and estimated the total power required, allowing for losses, at 160,000h.p. of installed capacity in the North Island and 110,000h.p. in the South Island.

Alter careful compansona with the developments in other countries and detailed estimates of the future demand in New Zealand, this lias been adopted as the basis oi the Government scheme. For the North Island n is proposed to develop this in three main stations viz.. Mangahao (24,000 h.p.), Lake Waikaremoana (40,000 b.p., capable of extension to 130,000 h.p.), and the Arapuni Rapids, on the Waikato River (96,000 h.p., capable of extension to 160,000 b.p.). These three power-stations are to be ultimate!} interconnected by a complete system of 110,000-volt I s for a total length of 1,112 miles, with 309 miles of branch mains at 60,000 ami ;;,",.ihhi volt».

6

The cost of the complete North Island scheme of wholesale generation and transmission as estimated in 1918 was as follows :

£ Mangahao Generating-station, 24,000]h.p. .. .. .. .. .. 43S 654 u- ■i. ~ .- ... ..? , _..

Waikaroinoana Generating station, 111.000 h.p. .. .. .. .. 544,369 \ I'.l >, 11 >li f h.e..|..> , I ......«..«1.... OC CU U I I. .. 1 /VTO Bfirt

Arapuni Generating-station, 96,000 h.p. .. .. .. .. 1,078,700

Total Generating slatioits. ll'.n.lKlll h.p. .. .. .. 2,061,723

Mam 1 10.000-volt transmission-lines. 1.112 miles .. .. .. 1,553 880 TJ 1. i . I- ~,,.-. -i „..

Branch transmission-lines, 309 miles .. .. .. .. .. 241,360

.Main substations . . . . . . ~ ~ , , _ 83g gQB

Distribution-lines and secondary substations .. .. .. .. 2,086,000

Total construction costs .. .. .. .. .. 6,781,771

Interest during construction .. .. .. .. .. .. 271.271

Loans to local authorities and power users .. .. .. .. .. 100 000 m. .1.: :*_! '

Working capital .. .. .. .. .. .. .. 150,000

Total .. .. .. .. .. .. .. 7,303,042

Between 1918 and the passing of the legislative authorizations in 1919 and 1920 costs generally increased to a large extent, and the authorizations were, therefore, increased accordingly. The item's under each power scheme in the authorizations include, of course, the portion of tin- transmissionlines and substations supplied from each source.

It was estimated that the programme would take ten years to develop, and that the total annual charges when completed, allowing 7J per cent, to cover interest, depreciation, and sinking fund, and £220,000 per annum for working-expenses, would amount to £767,728 that is practically £(> per h.p.. or £8 per kw. year.

It is estimated that this scheme when in full operation will effect a saving of I,(KKl,ikki tons of coal per year out of a total annual consumption of 2.!(»MHHI tons in the whole Dominion.

On the same basis 110,000 h.p. is also required in the South Island, ami towards this, developments arc in hand for an ultimate capacity as follows : Horse-power.

Lake Coleridge (Public Works Department) .. .. .. .. 36,000

Waipori Falls (Dunedin City Council).. .. .. .. 25,000

Lake Monowai (Southland Electric Power Board) .. .. .. in.

Total .. .. .. .. .. 77,000

In addition the following schemes have been investigated in order to make up the balance :

Horse-power. Teviot River .. .. .. .. .. .. .. 25,000

—-.—...... . . . . . . . . l-'b.- llawea . . .. .. .. .. .. .. 80,000

Lake Tekapo . . . . . . .. . . . , .. 5 000

Waimakariri River .. .. .. .. .. .. 30 000

Clarence River .. .. .. .. .. .. ..25 000

Toaroha River .. .. .. .. .. .. ..10 000

Arnold River .. .. .. .. .. ~ .. 4.000

Waihopai River .. .. .. .. .. .. .. 2 000 n, o:., .. ' ,_'

Gowan River .. .. .. .. .. ~ . 25 000

The final selection of the sources, their ordei of development, and the economical limits in each case have not y.-t been determined.

5. Government Schemes dudes Construction.

Of the above programme for the North Island the following works are under construction : The Mangahao scheme, which is being carried out by the Public Works Department, is nearing completion. It comprises two large dams, two and a quarter miles of tunnels, and three-quarters of a mile of pipe-line, giving a net head of 850 ft. at the power-house. Three ti. kw. and two 3,000 kw. Pelton wheels are being installed, coupled to alternators operating at a pressure of H.IKHI volt-. Power will be transmitted over a total of three hundred miles of transmission line at 110 000 volts. Wellington City, which will absorb the greate] part of the output, will be supplied over duplicate lines sixty-three miles long. The primary distribution will be at 11,000 volts from six main substations in the first installation.

lenders have been called for- the headworks, building, and machinery of the Arapuni scheme on the Waikato River. In this developmeni the waters of the Waikato River «ill be diverted by means of a dam 150 ft. high into a former high-level river-bed, along which they will How until a head of 170 ft. can be utilized by returning the water to the river below through steeply inclined tunnelled penstocks to the power-house, which will be situated at the bottom of the gorge 68 chains from the dam. The final installation will consist of eight such penstocks each 12 ft. diameter and each supplying a single 15,000 kw. unit. Specifications have been issued for the first section of the works, consisting of the whole of the headworks and three of the eight main generating units. This scheme is intended primarily to supply the City of Auckland, at a distance of I'll miles, to which power will be transmitted at 110,000 volts over one wooden-pole line, and ultimately a duplicate steel-tower transmission-line. The first installation of 45,000 kw. is expected to be in operation in 1928 and is estimated to cost £1,770,000, including transmission-lines to Auckland.

11

The total expenditure by the Government mi .ill the schemes in operation ami undei construction up to the 31st March, 1923, was as follows :

Schemes in opt ration : *

/ 1' r .-% I 11 11 ii- 1 'i ' 1 •'!' . Lake Coleridge -. ■• ■■ •• ■• 930,791

Horahora Rapids .. .. .. ■■ ■■ ■■ 136,756 ~ 1 77 nl 1

Waikaremoana .. .. .. .. . - • • • ■ 77,041

Sch* mes "mil r I 'onetruetion :

Mangahao (partly completed) .. .. .. .. 632,963

Arapuni Rapids (survey and reading only) .. .. ■■ ■• 78,839

Other Surveys .. .. .. .. .. -■ ■■ 13,708

Total outlay to 31st March, 1923 .. .. ..2.17" in,,

ii. Electrio-poweb Board Schemes pndeb Construction.

In addition to the Government schemes the following schemes am being constructed by the Electric-power Board-, :

The Southland Electric-power Board is now constructing work- at Lake Monowai. The area of Lake Monowai is eleven square miles, and with this targe storage capacity an average discharge of Too ensecs is assured. A head of ISO ft. is available, permitting the ultimate development of 'Jii.ikhi h.p. nn a -jo per cent, load factor. The Monowai River at it> outlet 1- being regulated and diverted through an open channel and steel pipe Bft. in diameter to a surge-chamber above the power house on the bank of the Waiau River. Tin- initial development will consist of two 2,000 kw. generators with provision for an ultimate capacity of six 2JMmt kw. units. The power will be transmitted at fiti.iHHi volt.-, to [nvercargill at a distance of sixty miles and to other substations. Reticulation will he at II.iMM) volts in country and 3,300 volts in borough area-, the total length of reticulation provided for being 1,600 miles. The capital outlay on the whole system is estimated .'Hi.iHH). and it i.s to he in operation before the end of 1924.

The Taranaki Electric-power Board is developing 2,000 h.p. in its Tariki scheme. This entails the diversion of the Manganui River through about one and a half miles of open channel into a swampy area. Forming a lake of some -J.ihhi acres in extent, and thence by natural channels and a tunnel one and a quarter miles long, giving an available head of 430 ft. Rainfall records show an fall id 104 in. With a seventy-square-mile catchment area an ultimate development of h.p. is possible. The whole Tank) scheme, including 306 miles of reticulation in fanning districts, is estimated to cost noiuxHi and to he in operation during 1925.

The following Electric-power Boards have also smaller schemes under construction:-

Power Board. Source. Kilowatts.

Tauranga • • • ■ ■ • - ■ .. Wairoa River 1,500 ..- 1.- i>:.. .... (uui

Wairarapa .. ■■ Kourarau River '.« hi

Teviot • • •■ ■ ■ ■ ■ ■ • Teviot River 500

Wairere . - . ■ ■ ■ ■ ■ ■ ■ • ■ Mokau River 250

Opunake .. .. .. ■■ •• ■ ■ Waiau Rivei 120

7. Hydro-electric-poweb Schemes in Operation,

Xhe largeal hydro scheme now in operation is the Lake Coleridge scheme, installed operated by the Public Works Department and supplying the Canterbury Province. Water is drawn from Lake Coleridge through a tunnel one mile and a quarter long and utilized at a head of i icity of the present plant is 12,000 kw., consisting of [our 1,500kw. units and two 3,000 kw. units. Power is generated at 6,600 volts three phase and transmitted sixty-three mile.-, at i;t;,(KK> volts to a main substation on the outskirts of the city. A branch transmission-line, eighty-four long, supplies the towns of Ashburton and Timaru and the surrounding districts. Tie' primary distribution is at a pressure of 11,000 volte, al which the power ia sold in bulk to fifteen local authorities, who undertake the retail distribution. In addition then- are forty-four wholesale industrial powerconsumers. Secondary distribution is undertaken at 3,300 and £OO volte.

The City of Dim.■dm is supplied from a hydro-electric plant on the Waipori River which is owned and operated by the city authorities, Water 1- conducted from several artificial storage reservoirs on the Waipori River and its tributaries through a tunnel and pipe-lines to the power-house, which is situated at the bottom of a narrow ravine. A head of 71m ft. i- available. The presenl capacity of the plant is 9,000kw. Power is generated at 2,400 volts and transmitted, at 35, 1 volts, a distance of thirty-three miles to Dunedin. The primary reticulation 1- at 6,600 and 3,300 volte. The trans-mission-line is tapped en route for the supply of the local demand in the country district. The tota\ capital outlay to 31st March. 1923, was £718,029.

In the North Island the Government have a large scheme in operation al ttorahora Rapids, on the Waikato River. This was originally installed by the Waihi Gold-mining Companj with .1 capacity oi 6,300 kw. and a forty-eight-mile transmission-line to Waihi, operating at 50,000 volte. The plant was purchased by the Government in 1919, and is now being extended to 10,300 kw. capacity, and m addition to supplying all the power ueeded at the mines it now supplies a large agricultural and ral district, including over 1,000 electric milking-machine motors and en largß driedmilk and butter factories. The planl is a low-head one (27 ft.), and will utilise practically the whole of the dry-weather flow of the Waikato River (5,000 c usees), the largest river in the North Island. The rating equipment consists of sis generators of 1,050 kw, each and two of 2,000 kw, each, working at a pressure of 5,000 volts. The power is transmitted at 60,000 volts over the mam lines and at 11,000 volte over the primary distribution.

7

In addition the Public Works Department lias recently constructed a small plant at Lake Waikarenioana. consisting of two 350kw. Pelton-wheel-driven units utilizing a head id' 680 ft. These two machines will ultimately be used as exciters for the main plant of 60,000 kw. which it is intended to install in the future. The power generated is transmitted at ll.ikki volts a distance of twenty-three miles to the Town of Wairoa and utilized in operating freezing and flax-milling machinery, as well as lighting, heating, and power purposes in Wairoa. In connection with this scheme a large amount oi the regrading, metalling, and bridging on the access road required for the large scheme has been carried out.

At Wairua Falls (Whangarei) a 2,<Kiokw. plant was installed in 1916 by the Dominion Portland Cement Company to furnish power for cement-making. The energy is transmitted a distance (if sixteen miles tn the factory at a pressure of 22.1HH) volts. A branch line also supplies the Borough of Whangarei and the farming districts <■» mule. The total capital outlay on this scheme to 31st March, 1923, was £87,643.

S, KI.F.CTHK'-l'dWKi: Bu.\i:ns.

Until 1915, when the Lake Coleridge scheme commenced supply, the distribution of the power was in the hands of the local authorities and companies operating the various power-stations subject to licenses issued under the Public Works Amendment Act. 1911. When the Government entered into the business it was found desirable to delegate the responsibility for the reticulation to the local authorities, and under tins arrangemenl the distribution of the power from Lake Coleridge lias been undertaken by t lie ('h list church City Council and ten Borough and County Councils. These smaller local authorities have only a few hundred consumers each, and with annual revenues ranging from £l,OOO in £4,500 each were obviously too small to take a comprehensive grasp of the commercial problems involved. As a result of this experience the Electric-power Boards Act of 1918 was passed. This Act instituted a new local authority especially charged with the responsibility of electric-power supply and its retail distribution from whatever source may be available. The areas to be constituted are determined by petition, which must be signed by at least per cent, of the ratepayers in the proposed district. The Board is elected by the ratepayers of the various constituent areas of the district, and has full powers of borrowing for the construction of works, and of rating to make up any deficiency in the revenue. The areas of the power districts are intended to be large and to include several constituent local districts, boroughs, or counties. In order to guide petitioners in drawing up the original petitions for the formation of districts the following principles have been laid down. The final decisions with regard to the areas to be constituted as electric-power districts lie with the Governor-General, and to obtain approval these principles musl be adhered to as far as possible.

(a.) The district must be large enough to have financial strength. For this purpose the demand should be at least I.(KKi h.p.. yielding a revenue to the Board of about £lō.<KM> per annum and involving a population of about five thousand persons. This is a minimum size in cases in which geographical and other considerations do not permit of a larger district. In the general ease, where possible, the population should be over 2o.tHH). requiring over UHH) h.p. and yielding a revenue of over £50,000 per annum: and in special eases, including large cities, the size may be even two or three times greater than this with advantage.

(b.) The district should include both town and country areas, but should have a distinct community of commercial and industrial interests. The country districts should be included with the town through which their produce is sold and their necessities purchased, and the whole of the bark country trading through any one centre should be included with that centre. The boundaries must be designed to foster and encourage this natural community of trading interests.

(c.) The district must be designed to give convenient road access fur tin- distribution-lines, to ensure both economical construction and for effective control and maintenance. From this point of view the boundaries will consist, whenever possible, of mountainranges, Large impassable rivers, or unsettled areas.

1,/.j The district must be designed to utilize as far as possible the points of distribution selected as most convenient for the purposes of the main Government transmissionsystem, and as far as possible the whole output of each of the main Government substation should be taken over by a single Power Board. This will not always be possible owing to th«' geographical configuration of the district, but should generally In- complied with.

(e.) For rating and statistical purposes it will be advisable, as far as possible, to utilize existing county boundaries whenever they conform approximately to the above considerations.

The Hoards have wide powers to purchase energy from the Government when available, or to develop it from water-power or any other source where such a supply is not available.

The development of the Power Board system is proceeding satisfactorily. There are now (March. 1924) tiiirtv-six Hoards gazetted, as set out in the table herewith. The total area covered, including inner and outer areas, is 56,414 Bquare miles, or 55 per cent, of the total area of the Dominion; the total population concerned is 661,557, or 52 per cent, of the total population of the Dominion; and the unimproved value included in the electric-power districts and outer areas is £179,370,263, or Ôt-Ō per cent, of the total unimproved value of the Dominion. More than one-half r ,f the Dominion is thus included within electric-power districts, and additional districts are being constituted. m t. i i r i._i_-_ it. ■_ i „_n_ __J 1 :.._.] _..j.1 :i_. r j.i_ ■

Twenty-three Boards have so far taken their loan polls, and have received authority from their ratepayers to borrow a total of £6,526,500. The unimproved land value of these twenty-three districts is £139,191,332. The loans approved to date thus amount to 469 per cent, of the

8

unimproved value of the land pledged as security for these loans, and a still smaller proportion of the total capital or improved value. The margin of security available is thus amp]-.

Boards already formed are carrying out their functions energetically.

Six Boards- viz., Thames Valley Cambridge Central. Te Awamutu, Hanks Peninsula, and Sprinj have carried out fairly complete reticulation of their areas, ami are distributing power taken in hulk from the Public Works Department'- bydro-electric power plant- at Borahora and Lake < 'oleridge.

The Auckland Board has taken over the city steam-power station, and is providing for extensions both of plant and mains. Tt ha- also entered into a conl raci to take the whole of its power. with a minimum of 15,000kw. from the Government when the Arapuni Station \& completed, which is estimated to lie in 1928.

viz., Southland, Wairarapa, Taranaki, Tararua, and Ashburton while pushing on with their reticulation in anticipation of a general supply of hydro-electric power, are giving a partial supply from smaller stations in the meanwhile.

Wairoa is taking power in bulk from the Department's station at Lake Waikaremoana, ant I supplies the borough and a few consumers in the neighbourhood.

Two viz.. Opunake and Teviot- have small local water-power stations in operation. Ten others—viz., Dannevirke, Horowhenua, Manawatu, Rangitikei, Mutt Valley, Central Hawke's Bay, Malvern, South Canterbury, Waitaki. and Otago are arranging to take power in hulk from the Government hydro-electric sources, and are preparing then- systems of reticulation with this end in view. The Buller District, though constituted, has not vet elected a Hoard.

The other ten—viz., Westland, Reefton, Grey, Otago Central, Wairere, Hobson, Kaipara, Marlborough, Poverty Bay, and Tauranga- are making special arrangements in each case which have not yet been finalized.

\K Financial "Results.

Including large and small stations, there are now thirty-one hydro-elect ric-power plants in operation in New Zealand.

On the :;Im March, 1923. the total installed capacity of hydro-electric power was 29,386 kw., representing 51*1 per cent, of the total electric power installed in the Dominion. The maximum load during the year amounted to 29,995 kw. i.e., slightly in excess of the total installed capacity, most of the stations operating on overload.

The annual load factor of the whole system amounted to 48*6 p

The units generated from water-power amounted to 127.727.52n and the units sold to 105,974,758 'l'll' 1 total capita] outlay, including distribution, amounted to £4,340,177, or £l4B pet kw. in-' Tin 1 total annual working-costs, including distribution costs, amounted to £253,844 that is. 0-57 d. per unit, or £8 10s. per kw. The annual capital charges amounted to £271,553 that is. 0-68 d. per unit, or £9 per kw. year yielding a rate of 6*3 per cent, of the capital outlay. The lm-oss annual retail revenue for the year amounted to £602,069 that is. L*36d. per unit, or £2O per kw.. and the net profit after paying all expenses amounted to £76,672. As compared with this tin- average price for steam stations for the year ended the 31st March, 1923, was 3*3Bd. per unit, or £3o*l per kw. of maximum load. Tin- load factor of the steam stations was, of course, lower than that of the water station-.

The industry as a whole is thus in a very sound position from the point "f view of the supply authority and the investor as well as of the consumer of hydro-electric power.

With the extensions to country districts which are now in band, the distribution costs will increase slightly, but all the main stations are being enlarged, and the increased output will enable generating-costs to be substantially reduced. The average selling-price for all purposes will probably fall within a few years to a penny per unit. This is, of course, an average price per unit sold, including a large proportion of country reticulation, extending away into the farming ami dairying districts, as well as the industrial and city Bupply. It includes all transmission and distribution costs, and under these circumstances it is a low average price.

10. Daily Load Factor.

Tin' question of daily load factor is of great importance in determining selling-price for electricity, and information bearing on this has been obtained for typical equinoctial and midwinter days by summing the half-hourly readings of sixteen of the larger power-stations of New Zealand the installed capacity of which was 51,683 lew., or 90 per cent, of the tola I installed capacity of the Dominion.

Details of the figures obtained are aa follows:

g

These load factors are high for both sources. The water-power stations can afford to and do sell at exceptionally low rates for off-peak loading, am! hence their higher load factor. It is this possibility which renders hydro-electric power particularly suit a hie for national development with the object of pushing the special industries adapted for such off-peak loading, such as irrigating, flour-milling, freezing, batterv-eharging, water-heating, steel-smelting, and electro-chemical industries.

11. General Considerations.

From a national point of view the most important result which is anticipated in New Zealand from the development of hydro-electric power is resulting from its extension to the farming ami dairying districts. In common with other countries New Zealand is experiencing an " urban drift, and it is expected that the provision of the conveniences and comforts of electric power in the country districts will do something inwards checking this drift. Already in many places the installation of electric power in the farmhouses and outbuildings has been an important factor, making the young people more satisfied with the country life, and in particular making domestic work more tolerable.

The manufacturing industries of New Zealand are so Ear comparatively small, and the export of manufactured goods is negligible. These are bound to develop with increasing population, and an ample supply of hydro-electric power, particularly when it is widely distributed and available at the points of production of the natural resources, will be the main factor in encouraging such development. In many industries such as gold-mining, sawmilling, and wood-pulping the installation of the steampower plant and the cost of furl fur its operation form a very large proportion of the cost of the industry. AVhen this can be replaced by cheap water-power delivered at the site industries can be developed in many cases where they would otherwise be financially impracticable.

Available Water-power in New Zealand: Schhmks of 1,000 Horsk-powilr and over.

* Signifies daily storage available to utilize 50-pcr-eent. load-factor. t Signifies seasonal storage made available. 2—Hydro-electric Power.

10

Available Water-power in New Zealand — continued.

• Signifies dally storage available to utilise 50-per-cent. load-factor. t Signifies seasonal storage made available.

16

12

Electric-power Supply of New Zealand for the ye\r ended 31st March, 1923.

• Includes distribution. Note.—Figures for special tramway stations are not included in capital outlay, working-costa, capital charges or revenue.

13

Lake Coleridge Electric-power Supply.—Results of Operation.

11

Waikato Electbic-poweb Supply.—Results of Opebation

Or

I

Lak :■: < !l ILER] Im. E i'l n:- 1.1 NE3. Each 52 in. diameter an I 2.180 ft. Inn-.

Lak :: < 'i >ler; dge.

Lake Coleridge Pipe-lines and Power-house.

Lake Coleridge Poweb Plant: Tunnel Intake.

Lake Coleridge Power-station.

Interior of Lake Colej ie Power-house: Total Capacity. 12.000 kiv.

Portable Substation containing a SO-kw. 11,000/400 Volt Transformer.

1 [orahora Power-station. 3ix 1,050 kw. General ors.

Mangahao Power-station (Sept., 1923).

4—Hydro-electric Power.

Arapuni Hydro-electric Scheme: Arapuni Gorge, showing Dam-site.

Abaponi Gorge at Dam-site, showing Entrance to Headrace.

BY AUTHUIUTY ■ \V. a. Q. SKINNEE, GOVERNMENT PRINTER, WEI^INGTON. —1924. [BOO/3/24—3088

—- LAKE COLERIDGE POWER STATION =

1922 JL

mangahao power development

PLAN &. SECTION

By Authority W A G. SKINNER. Government Printer. Wellington.

MANGAHAO POWER HOUSE

Cross Sections and Plan

By Authority • W A G. SKINNKK. CuvtrmmiHl PnnUt. WMirngt—

By Authority: W. A. G. SKINNER. Govtrnmtnt Printer. Wtilinfon.

v a l ..vUnilUWMmiHiMiimiU'M.' ,, , ,, * . ijpyiw^u, g aRaPOni power station

By Authority: W A. G. SKIN\ER. Government Printer. Wellington.

ARAPUNI POWER STATION

Ultimate Development

ARAPUNI POWER DEVELOPMENT

DC FEEDERS. MOTOR. BOOSTER. BATTERY By authority W A G Skinner Government Printer Wellington

WAIKAREMOANA POWER DEVELOPMENT

Bv authority WAG Skinner Government Printer Wellington

NEW ZEALAND.

PUBLIC WORKS STATEMENT AND REPORT OK CHIEF ELECTRICAL ENGINEER, 1923.

HYDRO-ELECTRIC DEVELOPMENT.

NEW ZEALAND

HYDRO-ELECTRIC DEVELOPMENT.

YEAR ENDING 31st MARCH, 1923

EXTRACT FROM THE PUBLIC WORKS STATEMENT.

BY THE HON. J. G. COATES, MINISTEE OF PUBLII WORKS.

Substantial progress is being made with the development of the hydro-electric power of the Dominion. The total outlay on all schemes during the year lias been £450,247, and the total outlay at the end of the year was £2,170,100.

Two schemes, Lake Coleridge and Horahora, are in full operation and arc being extended. The construction power plant for Waikaremoana has been installed. and is being used pending construction of the main plant to supply the local demand, and two of the larger schemes are under construction, viz.. Mangahao and Arapuni.

Lake Coleridge Electric-poweb Supply.

Satisfactory supply has been maintained from Lake Coleridge during the year. The financial result is as follows :

£ Capital outlay . . . . . . .. .. 843,033

Revenue for year . . .. .. .. .. 69,153

Working-expenses.. .. .. .. 19,271

Interest . . . . . . . . . . 35,275

Depreciation .. .. .. .. 9,307

Total annual costs . . . . . . 63,853

Profit for year . . . . . . £5,300

This enables the accumulated deficiency on the Profit and Loss Account to be reduced from £29,176 to £23,876. But it must still be noted that no provision has yet been made for the sinking fund, the accumulated deficiency on which is now about £37,765, which, in accordance with the State Supply of Electricity Act. must be paid before the installation can be considered as paying its «ay. The total deficiency is therefore £61,641.

The installation at the Lake Coleridge power-house has been brought up to full capacity of the present tunnel viz., 12,000 kilowatts, or 16,000 horse-power by the recent addition of two new generating units each of 3,000 kw., and the further extensions for which provision has been made «ill entail a second tunnel and intake works.

The Harper River diversion has been completed and is operating satisfactorily. In order to give the additional storage required for the future extensions the outlet-weir has been raised, and the water has already overflowed the higher level.

The proposed extensions beyond the present capacity «ill consist of two units each of 7,500 kw. (10,000 h.p.) with the provision for the future addition of a third similar unit. Towards this increased capacity the necessary transformers at the power-house and the transmission-lines to Addington have now been completed, leaving the tunnel, power-house extension, and Addington substation extension to enable the increased supply to be given. Plans and specifications for these are

S

ready, and will be issued as soon as the Christchurch City is prepared to enter into a contrad to take the additional output necessary to justify the works.

The line to Ashbiirton ami Tiinaru has been completed, ami arrangements have been made to supply power to the Lower Boards in both these places at the same rates as to all the other reticulating authorities except Christchurch City.

It is recognized that as the load develops with the extended plant it will be possible in a lew years to reduce the standard charges: estimates indicate that it will be necessary to maintain them until 1925. but an offer has been made to the Christchurch City of a ten-years contract to commence at once at 10 per cent, below I he standard rates.

The load on the power-house has increased rapidly during the year owing to the removal of rest notions. On the 31 st March it had reached 9.390 kw.. as compared with 7.600 kw. at the beginning of the year, and has since increased to 10,600kw., of which Christchurch City is taking one-half.

The estimated cost of the extensions to the Lake Coleridge plant to increase its capacity by 15,000kw. is £371,000. The Christchurch City Council have obtained a valuable report on the possibility of developing the Waimakariri River a 1 Otarama (lorge, which is estimated to cost over £900,000 for a planf of the same capacity. It is claimed that this installation would have a greater capacity for future extensions than the Lake Coleridge plan! : but, as 15,000 kw. will be sufficient [or many years to come, this cannot be considered an advantage which would justify an additional expenditure of over £500,000. As a result of this difference in capital outlay, the necessary additional power can be given from Lake Coleridge earlier and at a cheaper rate than from the Waimakariri. Moreover, if the Waimakariri scheme were developed the present power from Lake Coleridge would have to be sold mainly in North and South Canterbury. This will involve a large outlay in transmission-lines, which will be necessary in any case, but the cost would bave to be borne by a smaller output, and the hmd would take three or four years to develop.

Moreover, tins smaller load would have to carry the burden ol capita] charges for .i large outlay which lias been incurred especially for the supply to Christchurch, and winch is practically useless for the supply of the remainder of the demand. As a result it would involve a substantially higher cost of power to consumers outside the city. At the offer now made to the city for a ten-years contract the actual cost of power from Lake Coleridge will be cheaper than the cost of Waimakariri power as estimated by the city for nine years out of tin- ten. and after the tenth year, of course, the question of the further reduction of rates which can be made on the renewal of the- contract will come up lor consideration.

Horahora Electric-power Supply.

Service has been maintained satisfactorily during the year, and the reticulation has been rapidly extended by the Power Boards into the farming districts. The number of electric milking-machines connected to the mains of the lour Power Boards in the district has increased during the year to 880. The financial results of the year's operations are as follow : £ £

Capital outlay .. .. .. .. .. 395,022

Revenue .. .. .. .. .. 41,818

Working-expenses .. .. 9,721

Interest . . . . .. .. .. 19,208

Depreciation .. .. .. .. 6,620

Total annual costs . . . . . . 35,549

Profit .. .. .. .. .. .. £6,269

This has enabled the accumulated deficiency of £5,882 to be paid off, and £386 is available towards the accumulated sinking-fund deficiency of £8,459.

The load at Horahora reached 0,900 kw. during the year, which is 10 per cent, overload on the present installed capacity of 6,300 kw.

An arrangement was entered into during the year with the Auckland Electricpower Board to give them 2.000 h.p. from Horahora in advance of the power-supply

4

from Arapuni, which cannot he given until lii2S. and the construction of the necessary transmission-line for this purpose is in hand, together with the necessar; extension at Horahora, consisting of two units each of 2.000 kw.. to supply this and the normal extensions to the demand in the Waikato.

The arrangement with the Grand Junction Company to utilize their steam plant ai Waihi as standby has proved very useful «ai several occasions during the year, and enabled the supply at Waihi to lie maintained during the annual shut-down for the overhaul of the transmission-line.

Waikaremoana Electric-power Supply.

The main plant for Waikaremoana is designed for 40,000 h.p.. capable of extension to 60,000 h.p. at the one site, and up to [30,000 h.p. in three powerstations. But the most urgent necessity was for about 500 kw. to supply the Wairoa Borough and freezing-works. This was provided by installing in a temporary power-house the two ultimate exciters for the main power plant, each consisting of a 500 h.p. pelton wheel coupled to a 500 K.V.A. synchronous motor used as a generator in the meanwhile, and a 350 kw. direct-current generator. This plant was put into service in December, 1922, and is giving satisfaction, thus rendering the industries of Wairoa independent of the fuel-supply.

Manoahao Electric-poweb Plant.

The construction of this work i- making substantial progress. On No. I tunnel, a length of 81 chains, excavation has been completed, and concrete lining carried lor a quarter of the length. No. 2 tunnel is 1 mile 28 chains in length, and excavation is complete here also, while approximately 27 chains of lining has been done. The excavation and lining of the By-pass tunnel is completed. The Mangahao and Arapeti dams are under construction, and good progress has been made m spite of considerable difficulty and damage owing to numerous flood.-. The surge-chamber excavation has been completed, and concrete lining is in hand. Pipe-line excavation is completed, and the majority of the pipe-supports placed in position. The power-house construction is now well in hand, and although it has been delayed ihortage of carpenters it is hoped to have the building sufficiently advanced lo enable the erection of the machinery to be commenced about November. The surveys of the transmission-lines to Wellington, Marton, Dannevirke, and Masterton are completed, and the survey parties are now working from Dannevirke towards Napier, and erection is making substantial progress.

In view of the early completion of this plant, it has been necessary to negotiate the supply contracts with the Wellington City and the seven Power Boards which have been formed to undertake the distribution of the power. This scheme is being installed to its full capacity of 24,000 K.V.A. at once, and it is necessary to obtain the greatest possible output from the start in order to ensure financial success.

The greatest demand —probably f2,000 K.V.A. will come from Wellington City, and the balance of the power is being reserved for the Power Boards. But in order to ensure its utilization and its distribution over the widest possible area guarantees are being asked from each Board, dependent upon the reservation of power capacity required for the district concerned.

It is recognized that it will take some years to build up a load in each district to the amount required to be reserved, and the full guarantee is therefore not required until the fifth year, proportionately smaller amounts being required to be guaranteed for the earlier years. Under these conditions only two of the Boards have accepted their full allocation, three have accepted guarantees based on reduced allocations, and two others are not yet prepared to accept any guaranteed allocation. Out of the 24,000 K.V.A. power-house capacity there are still 5,250 K.V.A. available for allocation. This power will, of course, be given to the first district within reach of the mains that is in a position to give a guarantee to take the power actually available, and with this object in view arrangements are being made to extend the mains to Napier and Wanganui in order to reach a wider market.

Negotiations for the sale of power to the city are proceeding, and it is anticipated they will reach finality shortly.

5

Abapunj Elbctbic-poweb Scheme.

In accordance with the contract entered into with the Auckland Electric-power Hoard, specifications have been drawn up and issued for the construction of the dam and beadworks at the Arapuni Rapids, Waikato River, and tenders close early next \ear. Several inquiries have been received from large construction firms in Creat Britain and America. .Meanwhile tenders for the power-house building and plant will be advertised shortly.

The Department has already let contracts for the construction of the load be! ween the I'ailwav anil the dam-site, and has organized a haulage plant for metalling operations. The object of this is to avoid delay in opening up the work w lien the dam-construction is undertaken.

In order that Arapuni shall lie remunerative from the start it is necessar; to ensure a com I unci I load of at least 30,000 kw. on this station and Horahora. Towards this the Auckland Power Board will have an installed capacity at the end of this year of :io. kw.. and has recently decided to install a further 5,000 kw. in order to cope with the demand it anticipates before 1928. A proposal is also in hand for the formation of the Franklin Electric-power Board, which will further increase the demand. Tins, with the 10.000 kw. of load which it is anticipated Horahora will be carrying 111 1925. will give the full amount of business which is required to render the Arapuni scheme remunerative from the.start.

HyDBO-ELECTBIC POWEB GENEBALLI : I'Vl'l'llt Df.VKI.oI'MK.VI OB HyDBO-ELECTEH Poweb i\ Dominion.

As indicated in the table reproduced herewith, the following works are provided for :

(V) Completion of Mangahao to 20.000 kw. in 1924. with transmissionlines to supply Wellington, Masterton, Dannevirke, and Marton, and with early extensions to Napier and Wanganui.

(/).) ( 'instruction of Ārapuni beadworks, together with first three generating units, amounting to 45,000kw., in 1928, with additional units of 15,000kw. each as required; also duplicate transmission-lines to Auckland.

(c.) The extension of the existing power-house at Horahora, which is now in hand, and will be completed early in 1921. bringing up its capacity from 6,300 kw. to 10,300 kw., with transmission-lines to Auckland. Te Kuiti. and Rotorua, in addition to the existing lines to Waihi, Hamilton, and Te Awamutu.

(il.) The extension «if Lake Coleridge by addition of two units, each of 7,500kw. capacity, in 1920. Plans ami specifications for the work are ready, and the work will be proceeded with as soon as a definite contract can be entered into with the Christchurch City Council to take the power. The programme for development of Pake Coleridge includes extensions of transmission-line to Waimate, Oamaru, and North Canterbury, in addition to the lines to Ashburton and Timaru, which are practically complete.

(e.) In addition to the above, preparations are being made for the installation of a major scheme at Waikaremoana. This will probably take the form of two units of 10,000 kw. each. In the attached programme this i> scheduled fur completion in 1928. Inn will ni>t lie undertaken until the power demand in sight assumes proportions in keeping with a station of this size.

Preliminary investigations have been made of suitable sources for power for Otago, Marlborough. Nelson, and Westland.

In addition to the Government developments, the Dunedin City are extending their Waipori Falls station, now of 6,000 kw. capacity, by the addition of a 3,000 kw. generator, with provision ultimately for three more such units, and arrangements have been made whereby they will give supply over the Government transmissionlines.

The Southland Power Board is pushing on the Monowai scheme of two units, each of 2,000 kw.. with provision for future extension by means of four more such units.

6

The New Plymouth Borough has plans in hand for a power-station of 4.5(1(1 kw. on the Waiwakaiho River, and the Taranaki Power Hoard one of l .50(1 kw. at Tariki, and the Wairarapa Power Board. Tauranga Borough, and Taumarunui Borough have smaller water installations in hand mid approaching completion.

The steam reserve plants at Auckland. Wellington, Wanganui, and [nvercargill are being extended and reconstructed, and the steam reserve which «'ill be available in the course of a few years «ill be a follows: Wellington City, 10,000kw. ; Auckland Power Board, 25,000 kw.; Waihi Grand Junction Company, 3,000 kw. ; Wanganui Borough, 1,750 kw.; Christchurch Tramways, 2,500 kw. : and Invercargill Borough, 2,200 kw. These, «'ith the existing power plants already in operation, «ill amount in 1930 to 181,500kw. of water-power and 45.750 kw. of steam plant, compared with the present total of 29,000 kw. of water-power and 31,000 kw. of steam and other power already in service.

This development will amply meet the demands and give a margin for attracting special industries depending on a supply of cheap power. The question of large surplus power to attract special export industries by offering cheap electric power is an important one, and is receiving the fullest consideration. The Dominion is at present too dependent for its export trade on agricultural produce, the prices of which are liable to serious fluctuations, and as the agricultural industries of the world are restored to their pre-war output the prices of agricultural produce will inevitably fall. It is therefore important that every effort be made to develop an export trade in manufactured goods or chemical or metallurgical products, and in tins direction cheap power can assist very largely. The provision of such power is met in the above programme by the possibility of large extensions to several of the power-stations, particularly Arapuni and Waikaremoana.

The continued demand for hydro-electric power indicates the necessity for the Department putting in hand surveys and investigations of available schemes considerably in advance of the actual requirements, so as to ensure that the developments made «ill be in the best interests of the Dominion as a «hole rather than that of isolated districts. Consequently portions of this work have been carried out. and as soon as the survey parties have completed the surveys required lor actual construction it is proposed to carry on «ith this work, particularly in the direction of the supply to North Otago, Xorth Canterbury. Westland, Buller, Nelson, and Marlborough, and in the detail location and survey of one or two of the most economical sources «ith a view to their being made available lor the development of large electro-chemical or electro-metallurgical industries.

In view of the magnitude of the works now under construction and projected for the development of the hydro-electric resources of the Dominion, it has been decided thai officers of the Department should be required to keep in touch with the modern developments in other countries by periodic visits to the countries in which developments are proceeding most actively along similar lines to those ol the Dominion. In pursuance of this policy, Mr. F. T. M. Kissel has. during the year, visited the main hydro-electric developments of California, Canada. Norway, Sweden. France. Switzerland, and Italy, and the factories of England and America. As ;i result of this visit it is anticipated that the latest improvements and economies «■ill be incorporated in the designs now being drawn up.

The management of the various electrical-power plants of the Department, including the sale of power therefrom, together with the supervision and control of the operations of the various Electric-power Board districts and other electricsupply organizations, is of considerable proportions, and in a few years «ill have grown to very considerable magnitude. With this in view it «ill be necessary to set up a special body to take over the administration of the electric-supply services, and so relieve the Minister of many of the details with which he is at present concerned. The Minister will still, however, retain general control of the Department and the general finance. The exact composition of this body has not yet been determined, but its general functions will be as indicated above, and before anything is done the question of its detailed powers and personnel «ill be given very careful consideration.

Complete details of all the hydro-electric works and matters «ill be found in the Chief Electrical Engineer's report, while the schedule attached hereto sets out the scheme of development of hydro-electric power for the next six years.

7

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APPENDIX D.

ANNUAL REPORT OF CHIEF ELECTRICAL ENGINEER.

The Chief Hi.to micAi Engineeb to the Hon. Ministeb of Public Wobks Snt,

I dee tO report nl| tile position of e|,-Ct ric ■po We,' development ill tile | )01, |i |) ,oi | for til.' past year as follows :

s '"" m 3 last annual report the most important developments that have taken place are the extensi f tie- Lake Coleridge plant from 6,000 kw. to 12.ikki kw. capacity : the opening of the small local plant at Waikaremoana, of 7m kw. capacity, for the supply of Wairoa and district ; the extension of tic Vuckland Power Hoard's steam plant by tic addition of a 3,000 kw. unit ; the decisions of the Taranaki Electric-power Board to develop the Tariki scheme of 1,500 kw.; and of the Tauranga Borough to develop the Wairoa River, 2,000 kw.; and the constitution of nine additional electricpower districts, bringing the total up to thirty-one constituted districts 1.. ...-la:.: ... .1 :.. . n..: ■ ...

In addition the new installations and extensions sot nut in my previous report are still in hand or approaching completion, as follows .

ti u Hi,- li- Kilowatts, tioranora (Public Works Department), water-power .. 1 <»ki

Mangahao (Public Works Department), water-power 20 000 \t : /i> _ i) i, ,

M twai (Power Board), water-power .. I 000

Dunedin (City Council), water-power . .. ::ikki

New Plymouth (Borough Council), water-power .. .. 1000

Tevioj River (Power Board), water-power .. .. .-,lk,

Wairarapa (Power Board), water power . . 350

Opunake (Power Hoard), water-power .. p>,.

Auckland (Power Board), steam .. .. pi ikki

Wellington (City Council), steam .. .. .. 5 mm

Pahnerston North (Borough Council), gaa .. om

Napier (Borough Council), oil .. .. - (((j)

Plana are also in band for the construction of the following additional installations :

» i, ii- ,i- , Kilowatts. Arapum (Public Works Department), water-power .. 15 000

Lake Coleridge (Public Works Department), water-power in ikki

Tariki (Taranaki Power Board), water-power .. .. .. | .- )( hi

The actual power installed has h.n, increased during tin' year (nan 51,749 kw. to 57 589 kw an increase of 11 per cm., and now amounts to 0-075 kw., or 01 h.p. per head of population

Of the 57,589 kw, installed on the .'list March lasl 29,386 kw. were in fuel plants and 28,203 U in water-power plant.. Hut it nil! be noted that the proposed extensions «ill consisl almost'entirely of water-power installations.

Til.- attached curves (Fig. I) give a history of tin' growth of the outpul of the fuel and water-power stations in the Don,inn,,, since 1905, and a Eorecasl up to 1930, based mi installations actually decided upon.

It will be noted that tli-' only appreciable increases in the fuel plants in hand or proposed are the consolidation of the Auckland and Wellington power and tramways plants into a single modem and efficient station in each city. Tins will involve the ultimate dismantling of the old tramway stations and with the removal of tin- other -mall and obsolete furl plants the total capacity of the fuel stations will decrease rather than increase.

The installed capacity of the water-power stations, on the other hand, will increase rapidly in accordance with the above programme. The installation» already planned will give a capacity of 182,000 lew. of water-power and 46,760 kw. of Bteam-powerin 1930, a total ol 227,760 kw. ~. ~.0-144 kw or practically 0-2 h.p. per head of the estimated population in that year- viz.. 1,673,000.

22

Fig. I. Growth of thk Output of the Kuf.l and Water-power Stations in the Dominion since 1905.

Industrial Developments.

Owing to the continued shortage of power during the year throughout the Dominion, no notable developments have been possible in the application of electric power to industrial purposes. The most important is the operation of the new gold-dredge at Rimu Flat, which has proved very successful, and may result in a revival of gold-dredging on a large Bcale in the Dominion following on the development of the necessary cheap hydro-electric power.

23

trie milking plants, which will necessarily form a large proportion of the country load of the Electric power Boards, have increased by over LOO per cent, during the year. There are now over 1,100 Buch plants in operation in the Dominion, as compared with 648 lasl year. The following indicates the distribution of these plants :

Thames Valle\ Power Board ~ .. 384

Central Power Board .. .. ~ ~ 247

Te Awamutu Power Board .. .. .. .. 152

Cambridge Power Board .. .. .. 100

Banks Peninsula Power Board .. 67

Springs-EUesmere Power Board .. .. .. ~ 28

Southland Power Board .... 29

Tai Tapu Dairy < tompany .. .. .. .. ~ ,%

Eawera Electric Supply Company .. .. .. ~ .. no

i>t h.'f installations .. .. .. .. .. .. ~ .-,o

Total 1,143

The total number of milking machines in the Dominion operated for the greater part by benzine engines is 12,468, and is increasingat a rate of over 2,000 per war. There is thus ample scope for tin- development of electric-power supply in this direction.

In addition to the milking plants, the dairy factories are proving a useful load, particularly the utter and dried-milk factories, of which six are now supplied from Horahora.

Of the fifty-one lolling ami freezing works m the Dominion, four were previously operated l>\ hydro-electric power from Lake Coleridge, and one from the Waipori plant. One additional works ■viz., that at Wairoa, Hawke's Bay has been supplied with power from the Waikaremoana | and two more are making preparation to take supply from the new transmission-line recently constructed from Lake Coleridge to Timaru. These works constitute a useful load. An s freezing-works with a killing-capacity of five thousand Bheep per day requires 260 U. to 300 kw. during the season, and consumes 500,000 to 800,000 units per year. For this purpose hydro 1 ■ has the advantage thai it is nol only cheaper than coal bul is independenl of the mining and transport industries, and it is anticipated that within a couple of years the number of beezing-works supplied will be much larger.

1 Government: Developments,

itutory authorizations bo date for the development 'if hydro-electric power in the Dominion follows :

Aid to Water-power Act, L9lO £

Lake Coleridge electric-power works .. .. .. .. 500 000

Electric-powei Works Loan Act, L 919

Arapuni electric-power works . . .. .. 4 500 qqq

Mangahao electric-power works .. .. .. >t 1,600 000

Lake Coleridge extensions .. .. .. 257,500

Horahora electric-power works .. .. .. U2 500

\\ aikaremoana Surveys, &c. .. 30 000 r\*. a p__ ' ~_ '

Otago Surveys, Ac. .. .. .. .. .. 30,000

Finance Act, L 920-

Waikaremoana electric-power works . . .. 2 600 <khi

Kaituna River .. .. .. .. I5o!o00

Lake 1 loleridge extensions .. .. .. .. 720 000

Surveys and investigations .. .. 30 000

£10,330,000

The total expenditure at the end of the past financial year, including capital outlay, Btocks and debit balances on the trading accounts, is as follows :

£ Lake Coleridge .. .. .. .. .. 930 797

Horahora .. .. .. .. .. .. 436.755

Waikarei .. 77 04]

hao .. .. .. .. .. .. .. 632.963

Arapuni .. .. .. .. 78,839

Hutl River . . . . . . . . . . _ .j. 750

K.'iit un;i [live] . . . . . . . . 1 355

* >i h-T surveys . . . . . . . . . . 5 137

Genera] expenditure .. .. .. .. in:;

11-2.170,100

Of the above, the Lake Coleridgi Hod Waikaremoana systems are in commercial operation, and Mangahao and Arapuni are under construi

s—Hydro-de5—Hydro-de tri< Development.

24

These schemes are designed to feed into complete interconnected transmission-systems operating at 110,000 volts in the North Island and 66.000 volts in the South Bland, for feeding the substation-, as set out in the attached maps, supplying the various Power Boards and other reticulating authorities throughout the Dominion.

Bake Colerikgk Hydro-electric Supply.

The year ending 31st March, 1923. represents the eighth year of operation, and. after paying operating costs, interest and depreciation charges, shows a credit balance considerably in exa the previous years. Tables A, B, and 0 give ;, complete analysis of the results of operation of the Bake Coleridge plant, Table D gives a record of the connected load showing a diversity factor of 5'85, and Table K gives a complete summary of the financial results shown by the Departmenl and the fourteen other distributing authorities which deal with the power from Bake Coleridge. It will be noted that all these distributing authorities have nude a profit except the two Power Boards which only commenced operations during the year. Figure 2 shows the development in plant capacity and the growth of output since the commencement of operations in 1915. No serious troubles were experienced with the generating plant, and for the first time the steam standby plant was not called into operation during the vear.

With the installation of Xo. 5 generating unit at the beginning of the year the increased capacity of the station (9.000 kw.) enabled restrictions on the demand to be removed, An additional unit of 3,000 kw. has since been installed. Bine and insulator troubles showed a marked decrease owing to the changing of the transmission-lines from aluminium to copper and the substitution of a better class of insulators.

Financial Results- -The capital outlay at the end of the year was £848,033. as against £671,608 at the beginning of the vear. Details of the additional capital expenditure are shown on Table B attached. The revenue for the year was £69,153, being £6,300 in excess of all charges, including interest at 5-4 per cent, and depreciation at 2 per cent., but not including sinking fund. This surplus has been employed to reduce the accumulated deficiency on the Profit and Loss Account for previous years from £29,175 to £23,876. Particulars of the financial results of operation and load records are given in the attached Table A. The power-house maximum load reached 9,390 kw. on the rated plant capacity of 9.000 kw. : this represents an increase in the maximum output of 10 per cent. over that of the previous year. The units generated reached 13,451,660, an increase of 14 per cent. on the corresponding figures for the year previous. The annual load-factor was 52-9, being a reduction from previous figures,, due principally to the removal of restrictions and the consequent increase in the day load.

The total costs per unit are slightly higher, being 0-002 d. per unit in excess of the previous year. This is accounted for by the increase in the rate of interest charged, being 5-4 per cent, as against 4*75 per cent, in the previous year. Working-costs, however, show a distinct decrease over those of the past two years. Table C attached shows details of operating-costs as compared with those of the previous year.

The erection of the No. 4 pipe-line and the installation of No. 6 generating-unit were practically complete at the end of the year, and No. 6 set is now 7 in regular operation. The completion of this unit brings the normal output up to 12,000 kw., the ultimate capacity of the present tunnel and power-house.

Work on the switching-station at Windwhistle has been completed, and the Hororata switchingand sub-station is also in service, and will enable a Bupply to be given at 3.300 volts for the Railway Department's signalling-svstem on the Midland Railway and to the Malvern Electric-power District.

The north transmission-line has been completely overhauled, retaining the 7 135 aluminium win l , and the south line reconstructed with 19 13 copper wire and oew insulators. Tn addition, in anticipation of the duplication of the Bake Coleridge plant, a third line has been constructed with 19/13 copper wire, and equipped with the latest type of insulators. With the three lines there is sufficient transmission-capacity tn carry over 24,000 kw., the ultimate output of the present station and the proposed extensions.

The construction of the transmission - line to Timaru was completed during the year. This includes a special crossing over the Rangitata River, consisting of eight steel towers, each 84ft. high, enabling spans of 18 chains to be used.

A contract was let in October for the erection of the substation at Timaru, and in March for the substation at Ashhurton. Supply to these two places will be available during the current year.

The groin in connection with the diversion of the Harper- River was completed in September, and the whole of the Harper is now diverted past the intake gates. At the same time it was decided to raise the normal level of the lake from 1.667-5 ft. to 1,670 ft., and the work of constructing a new outlet weir was commenced in October and completed in February. This gives a substantial increase in the storage-capacity of the lake ;is well as in the tunnel-capacity, owing to the additional '■■ water available to overcome tunnel friction.

During the year the supply to Banks Peninsula Power Board was changed over to 33,000 volts by tin" installation of step-up transformers at Stoddart's Corner, and the 11,000-voll feeder was extended from Waikuku to Sefton, giving a Bupply to Kowai County.

A special duplicate 11,000-volt line was nm from Aldington substation to Fendalton in supply the Christchuroh Tramway Board's new automatic substation,

As the result of these extensions, the Department's 11,000-voll reticulation lias been increased during the year from S2{ miles to 00 miles.

The total connected load increased to 19,343 kw., as shown on Table l> herewith; an increase of 23 per cent, over that of the previous year. The maximum demand was 9,390kw., giving a diversity factor of T 5*25.

26

26

riuvuuj of Coal. -The saving of coal to Canterbury by the use of the ,37,561,627 units of hydroelectric power sold during the year as compared with the generation of a similar amount of power la the most efficient modern steam plant, consuming 31b. of coal per unit, amounts to 50,000 tons of coal per year. But the small isolated plants actually replaced by the Lake Coleridge supply were using in daily running from twice to four times this amount- say, 150,000 tons per year—equivalent to three full train-loads of 160 tons each per day, or three ship-loads of 1,000 tons each per week for the whole year.

-During the year there were nine interruptions to service exceeding one minute's duration, the total sum of these interruptions being 51! minutes. The longest period of interruption was fifteen minutes, occurring on Sunday afternoon, 21st January, from 3.38 p.m. to 3.53 p.m. This shut-down was prearranged to enable a loose wire, which was threatening trouble, to be removed. Of the other eight interruptions, two were due to trouble at the power-house, and the remainder to transmission-line trouble. In addition to the above there were thirty-seven interruptions of a momentary duration, mainly due to insulator troubles on the lines. The total number of insulators replaced on these interruptions was thirty, all of these being old-pattern.

Water-storage. -Advantage was taken of the completion of the diversion groin at the Harper and the raising of the overflow from the lake to 1,670 ft. to fill the lake, the result being that the level reached the 1,670 ft. mark by the end of the year, as against 1,661'5 ft. at the beginning of the year.

Future Extensions- In addition to the extensions set out above, preparations are in hand for increasing the capacity of the present station from 12,000 kw. to 27,000 kw. providing for a 24,000 kw. maximum output and a 3,000 kw. standby unit. This will involve new intake works, tunnel, headworks, penstocks, power-house buildings, and generating plant, consisting of two 7,500 kw. (10,000 h.p.) units with provision for the ultimate installation of a third similar unit. The preliminary survey work has been completed, and plans and specifications have been prepared for the tunnel. The necessary transformers to cope with the increased capacity, two banks each of 12,000 K.V.A., have been installed and are in service.

In order to provide for the additional demand at Addington substation it will be necessary to instal there an additional bank of transformers and 11,000-volt switchgear. For this purpose one of the 4,500 kw. banks displaced at the power-house will be employed, the other being dedicated to the Timaru substation. Plans and specifications have been completed for the necessary extensions to the substation building, and the construction will be pnt in hand during the current year. The transmission-lines are already of sufficient capacity for the full output of 24,000 kw.

Waikato Electric-power Supply.

The Horahora power-station has operated satisfactorily during the year under review, and lias supplied an important district with electric power, including two large mines at Waihi, four electricpower districts, the Hamilton Borough, and half a dozen wholesale consumers. Tables F, G, and II give a complete analysis of the results of operation of the Department's activities. Table J gives the total connected load showing a diversity factor of 2'84, and Table K gives a complete summary of the financial results of the Department and the other five distributing authorities.

financial Results of Operation. —The capital outlay on this scheme at the end of the year was £395,022, as compared with £353,808 at the end of the previous year, an increase of £41,214. This is analysed in Table U herewith. The year ended with a profit, after paying working-costs, interest, and depreciation, of £6,269. This is sufficient to pay off the previously accumulated losses of £5,882 and leave a balance of £386 to go towards the provision of a sinking fund.

The revenue for the year was £41,818, as compared with £28,207 for the previous year, an increase of 48 per cent. —a very satisfactory result. This increase is due mainly to the extension of the demand from the Electric-power Boards, as indicated by the following analysis :

192:2. 1923. Revenue from— £ £ VI l ninir llk Oi i 1 — 1

Mining companies .. .. .. .. .. 19 451 20,177

Power Boards .. .. .. .. .. 4.310 14*72,^

Hamilton Borough .. .. .. .. ) ,39] 2.911

Wholesale consi :rs .. .. 1,675 2,565

Miscellaneous .. .. .. .. 1..37-1 1.1,37

£28,207

til,BlB

The sum of tho maximum loads of the four Power Boards has increased during the year from 1,051 kw. (1,400 h.p.) to 1,8-15 kw. (2,460 h.p.), an increase of 800 kw. (1,060 h.p.) The increase in the present year can hardly be so high, but it should be approximately filK) h.p.. with an increase in revenue from the Boards of over £5,000.

Tho mines still constitute the main source of revenue almost half of the total- and the return from them should be a little higher during the present year. During the first few months of the year, owing to the stoppage of the ({rand Junction Company's battery, the revenue from the mines" was considerably reduced. However, the increased load required by tin' Waihi Hold-mining Company for pumping, together with the starting of the Junction Company's battery again in January, l!e_>,3, more than compensated for the low return at the commencement of the year.

As regards future prospects outside the original area oi supply, arrangements are being made for the construction of the transmission-line to supply power to the Auckland Tower Board at Penrose and the proposed Franklin Power Board, near Pukekohe. The transmission-line survey is complete,

27

and the material is on hand to commence construction in the spring. Tower will be available ovei this line, when the extensions at Horahora are completed, amounting to a maximum ot about 3,000 kw. available for most ot the time, falling to 2,000 kw. for a lew months in exceptionally dry years. In view of the decision to proceed energetically with the Arapuni Bchemi . I he main objeel in view in dealing with the Horahora plant is to build up as much load in advance as possible Eor the Arapum plant.

Extensions made during On Year. The Horahora Hamilton Te Awamutu 50,000-volt line was put into service at 50,000 volts on the 31sl December, 1922. This line had previously been supplying Te Awamutu at 1 I.imhi volts, and the change-over of the line to the Hamilton and Te Awamutu Bubstao 50,000 volts was earned out without any trouble except the inconvenience dm* to a stoppage of a couple of hours. The line has -nice given very satisfactory Bervice at 50,000 volts, and no insulator breakdowns have occurred on it.

The 50,000-volt line connecting Horahora and Arapuni is approaching completion. Tin.- will be operated at ll.<hki volts to supply [tower lor construction at Arapuni. and later on to connect up the Arapuni and Horahora power-station-.

The total syMem supplied from Horahora consists oi 86 miles oi 50,000-volt lino and 38 miles ot 11,000-volt bnes belonging to the Department, and ;;ihi miles oi Ll,ooo-voll lines. 389 miles of 3,300-volt lines, and 676 miles ot Low-tension lines belonging to the Power Boards.

The connected load has increased from 13,478 kw. t* of 6,100 kw. or 15 per cent., but the increase in powerhouse maximum load has been only 1,100 kw\ and the diversity factor has increased during the year from 2*3 to 2*84. The diversity factor for the whole load 2-84 is Low, owing to the low diversity of the two largest consumers in the mining companies. The diversity oi the Power Board demands is in each case between I and 5.

Opt ration. Headwords and power-house: The maximum load ot 6,900 kw. i.e., I" per cent. overload on the full rated capacity (6,300 kw.) of the plant installed was carried without difficulty, but on several occasions it was considered accessary, in order bo reduce the heating oi the generators at heavy loud in hot weather, to arrange for the Grand Junction Company's steam plant at Waihi to carry the wattless current. By means of co-operation between the Department and the .lime t ion Company in this manner the aecessil v for cutting off any load was avoided, and the besl possible use oi the waterpower plant has been made. In addition the Junction Company's steam plant was called on for emergency and overhaul purposes on twelve occasions during the year, for a total period ot sixty-one hours, during which 43,31MJ units were supplied by steam-power with a maximum load of 1,200 kw., in addition to carrying the company's own Load for these periods. Of this period, thirty-one hours and a half was tor the annual line-overhaul during Christmas week. This co-operation has been ot the utmost value in maintaining a continuous service. The power-house was shut down completely tor six hours on the 29th December for examination and cleaning of the

50,000-volt transmission-line, Horahora Waikino: There were seventeen accidental stoppages, for a total time of 9 hours ftB minutes, including two each over one hour, and the remainder from one to eleven minutes : also eleven prearranged stoppages for a total time «it 56 hours 18 minutes, including 30 hours 10 minutes for annual overhaul. Of these interruptions, eight were due to insulator-failures, one t" overload at Waihi, one to failure of an aing, and seven to unknown causes, oo i during had weather. As this is a Bingle line, carried on pin insulators that have been in service for over ten pears, this result musl be considered very salisfactory, and indicates that the type oi insulator originally installed by the Waihi Company was an excellent one.

50,000-volt transmission-line, Horahora - Hamilton -Te Awamutu: This is now in o at 50,000 volts, after having been in service for over a year at 11,000 volts. The operation has been very satisfactory. Elashovena have been noticed, which did not damage the insulatort insulators have been replaced, and there have been but momentary interruptions.

11,000-volt lines : No insulators have been replaced on the 11,000-volt lines, and the accidental interruptions I only momentary. Some of the poles are showing sap-rut. as was anticipated. The sap on these has been removed, and the heart-wood painted with creosote. Must of thi !1,000-volt lines to the area are operated by the Power Boards, and then- have Urn some cases oi faults difficult to Locate and consequent interruptions. There is good reason to think thai these faults will be eliminated, and that the reliability ot the Bervice, already good, will be improved to future.

■ moan a Electric-poweb Supply.

The demand for water-power al Wairoa, Hawke'a Bay, lias been very urgent for some years owing to the unreliability of the bar al the Wairoa River, which blocks the supply of coa] to the town and freezing-works foi long periods, and bas more than once threatened a serious disaster. In order to meet this difficulty, arrangements were made to install in advance the exciter units for the ultimate large power plant, which consist of two 800 h.p. water-wheels, each coupled to a 350 kw. exciter ami 300 kw. synchronous generator. These have been erected in a temporary building, and operate at e head oi 680 ft. through a 21 in. pipe-line t,600 ft. long. The electricity is generated al I'M) volts, three-phase, and stepped up to 11,000 volts, at which pressure n is transmitted to Wairoa, ,i distance of twenty-three miles. The line has been made suitable for conversion later on to a 33,000-volt line.

In Wairoa supply is given to the freezing-works, the flax-mills, and to the borough to feed its existing reticulation. Supply was commenced on the Lfith December, and by the 30th June, 1923, a maximum Load of 536* kw. was reached.

The transmission-line was erected and is controlled by the Wairoa Power Board, and to order to keep the standing chaigea as tow as possible the generating plant has beer leased to the Boar Department reserving the righl to use power as required for the construction ot the targe plant when undertaken.

■2B

The capital outlay on the plant installed is £76,126, but this includes an item of £5,698 for interest during construction, and £11,920, being a proportion of the outlay on the permanent improvement and metalling of the main road, which has been undertaken at a total cost of £62,789 in anticipation of the construction of the main plant later on.

The rental for the plant to the Power Board has been fixed at £2,100 per year, which constitutes the sole revenue to the Department from this scheme- at present.

The installation of this small plant is proving of great benefit to the town and district of Wairoa. Besides removing the anxiety as to the supply of fuel, the cost of retail supply to the borough consumers has been substantially reduced.

Mangahao Electric-power Supply.

Construction work on the headworks and trarismission-lines for this scheme is well in handDelivery ot some of the items of power-house plant has commenced, and the reports from the factories indicate that the whole of it will be ready for shipment before the end of the year, The delivery of the material for the trarismission-lines is well ahead of the construction work. The transmissionline to Wellington (sixty-five miles) is being carried out by contract, and good progress is being made, the pole-erection having now (ll) 8 23) reached Paraparaumu, a distance of thirty-six miles of double line.

The erection of the transmission-lines to Bunnythorpe and the Wairarapa is being carried out by day labour, and is also making good progress, the erection now (10/8 2.'J) having reached Linton, a distance ot twelve miles of double line. In addition seven miles of single line has also been erected by a co-operative contract from Bunnythorpe to Ashhurst. A third party has started at Dannevirke, working towards Woodville. In addition the erection of the poles for the special telephone-line which runs alongside all high-tension transmission-lines has been practically completed for a total length of 160 miles.

The survey of the main transmission-lines to Wellington, Marton, Dannevirke, and Masterton is completed, and the survey parties are now engaged on the extension from Dannevirke to Napier and on the patrol roads and tracks.

The site of the main substation for Wellington City .it Khandailah has been levelled and the necessary workshops erected. The designs of the substation plant building are completed, and a contract for the erection of the building will be placed very shortly. Delivery of the substation plant is expected early in l'J24. The sites of the other five substations Bunnythorpe, Marton, Dannevirke, Tararua. and Masterton —have been acquired ; contracts have been placed for the necessary plant, and the erection of the substations will he commenced early next year.

The question of the sale of the power from Mangahao is, of course, vital to the success of the whole scheme. Owing to the high cost of construction, this scheme cannot pay its way at the standard selling-rates until a market has been found for practically the whole output, at least of 20,000 K.Y.A. But, on the other hand, it is estimated that the demand will in a few wars considerably exceed the maximum output of 24,000 h.p. or K.V.A. The original allocation of the output amongst the various distributing authorities, based on population at the ratio of one horse-power to each ten head of population, is as follows : —■

Horse-power.

Wellington City .. .. .. .. .. .. 12,000

Hutt Valley Electric-power Board .. .. .. .. 2.mom

Horowhenua Electric- power Board .. .. .. .. 1,200

Manawatu Electric-power Board . . . . . . . . 3,300

Rangitikei Electric-power Board .. .. .. .. 1,800

Wairarapa Electric-power Board . . .. . . . . 2,000

Tararua Electric-power Board .. .. .. .. 1,000

Dannevirke Electric-power Board .. .. .. .. 1,300

Total .. .. .. .. .. .. 24,600

The city has already built up a load of over 8,000 kw. under conditions of severe restriction of demand, and it is anticipated that this will increase as soon as these restrictions are removed, even at present selling-rates, to 1.0,000 kw. ; and that the full allocation will be taken up and probably exceeded within a couple of years.

The seven Power Boards are each making provision to take and distribute the power as Boon as it, is available. Six have already submitted loan proposals to the ratepayers, winch have been approved by large majorities. These appropriations are as follows:

Wairarapa Electric-power Board .. . . . . . . 260.000

Manawatu Electric-power Board .. .. .. .. 500.000

Dannevirke Electric-power Board .. .. .. 175,000

Horowhenua Electric-power Board . . . . .. . . 260,000

Tararua Electric-power Board .. .. .. .. 200.000

Hutt Valley Electric-power Board .. .. .. .. 350,000

CI. 715,000

Of these. Wairarapa, Manawatu, Horowhenua, and Tararua have arranged delivery of the necessary material for the reticulation systems and commenced construction on a large scale. The other two, Dannevirke and Hutt Valley, are now preparing their plans.

•20

It will be necessary in each case to do all that iB possible to develop the load in advance in order to ensure the best possible financial returns in the first few years of supply, and special arrangements have been made with this object, as follows : The Wairarapa Power Board is developing 360 kw. from the Kouraiau River, which is expected to Ik- in operation early in 1924 ; the Manawatu Power Board has arranged to take power from the new Palmerston Borough suction-gas plant (900 kw.J as soon as it is completed, early in 1924 ; the Tararua Tower Board lias taken over the suction-gas plants al Eketahuna and Pahiatua previously operated by the borough in each place, and is extending the reticulation into the surrounding for Horowhenua a temporary supply nil! probably be available from the Department's construction plant a' the power house site : and for the Ilutt Valley, supply will probably be available from the Wellington City strain plant at Evans Bay.

These special arrangements for building up the load in advance should enable these districts to commence the supply from Mangahao with a substantial portion of their business already developed. and it is considered that they should have no difficulty in extending to reach their full alio, within five years. The demand from districts beyond those t<> which the power from Mangahao was originally allocated, particularly from Napier, is very urgent, ami obviously, if the nearer districts are not prepared t" contract to take the power allocated within live years, the more remote districts must he given an opportunity to share in the allocation, both with the object of extending the public convenience and of ensuring the financial return for the Mangahao scheme. On this account the various Boards are being asked to guarantee in the fifth year to take the amount allocated or to concur in the reduction of their allocation. At the same time it is quite recognized that it will take some years to build up thi ir load to the full allocation, and the guarantees for the earlier years an' therefore asked for only on a graduated proportion of the allocation, based on 'he following amounts U<r each of the five years of the contract period -viz., 40, 50, 60, 80, and 100 per cent. Most of tic hoards have fallen in with the guarantee, in some cases on reduced allocations, and the revised allocation is now as follows :

K.V.A.

Wellington .. .. .. .. .. ■■ 12,000

Hint Valley .. .. .. .. ..1,200

lloi'ow henna . . . . . . . . . . . . 1,200

Wairarapa (not accepted)

Manawatu .. .. .. .. ..1,500

Rangitikei .. .. .. .. .. .. 1,800

. i (not accepted)

Dannevirke .. .. ■• .. ■■ 450

Total .. .. .. -. ..18,150

Tins leaves 5,850 K.Y.A. still to he allocated to those districts which are first ready to give the guarantees. It is anticipated that a substantia] allocation of tics surplus will he required in Hawke's Bay a- soon as the necessary Power Board is formed to undertake its distribution.

Arapuni Electbic-poweb Scheme.

Following on the contract entered into with the Auckland Electric-power Board, specifications have been issuer 1 during the year for the const ruction of tin- dam ami headwords for the Arapuni scheme. and the specification for the'power-house and plant will he issued shortly.

The load in the Auckland District is growing rapidly, and there is a very strong unsatisfied demand from the manufacturing industries, particularly round Otahuhu, where the introduction of cheap electric power will give .i great stimulus to industrial developmei

The Power Board, in order to meel rlii.-; growth, has decided to further extend its steam station now under construction at King's Wharf Erom 20,000 kw. to 25,000 kw., ;is it is anticipated thai the demand will exceed the 20,000 kw. limit before Arapuni ran be ready, ami this increased load will be available as an initial load on the combined Arapuni and Horahora plants in 1928. In addition the output <>f Horahora will have reached about 10,000 kw., and there an smaller fuel plants already operating in the district, These, with the additional demands from new- industries, will, it is anticipated, enable Arapuni to start with a load largely in excess of the .'lO,OOO kw.. which it is :-,-d will enabl * ■ combined Arapuni and Horahora plant to pay from the start of operations, and the first installation previously proposed for Arapuni will require to be increased to meet the increased demand that the Auckland Power Board is providing for.

In addition, proposals are in hand for tin- formation of thr Franklin Power Board, centring round Pukekohe, which, if formed, will further increase the initial load on Arapuni.

The construction of the Horahora Auckland transmission-line now in hand, although until 1928 it will carry only 2,0t>0 h.p. a 1 50,000-volts pressure, is designed for a capacity of 15,000 kw, at 110,000 volts, so as to form the first of tin l three lines which will be necessary to BUpply Auckland from Arapuni.

Available Water-power in New Zealand.

In addition to the water-power sources already developed or under consideration, there are a large number of available powers awaiting developmenl when required, and amounting in .ill to about 750,000 h.p. in the North Island and 3,200,000 h.p. in the South Island. Table I* herewith gives a list of these possible sources, giving the maximum and the distance from the nearest deep-water port. Borne of these are capable of developmenl a 1 a low cosl up to the economical

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stage, and may on detailed survey prove suitable in the future for the establishment of electro-chemical or oilier special industries using a large quantity of electric power. The distance from the European market precludes the possibility of an export trade in competition with the large Swedish and Norwegian power sources for thai market ; but, on the other hand, the proximity to the Eastern and Australian markets gives New Zealand a transport preference over European products, which should be exploited to the fullest possible extent.

Electric-power Boards.

The development of the reticulation by means of Electric-power Boards has made substantial progress during the year. Nine additional districts were formed, and there an- now thirty-one districts constituted, and ten actually carrying out the distribution and sale of electrical energy. The total area covered is 16,818 square mile-, or 15 per cent, of the total area of the Dominion. The total population concerned is 582,091, or 45-5 per cent, of the total population of the Dominion ; and the unimproved value of the land included in the electric-power districts and outer areas is £159,439,000, or 50 per cent, of the total unimproved value of the Dominion. About one-half of the Dominion is thus covered, as compared with one-third last vear.

In addition to the thirty-one districts already funned, steps are being taken to form district- in Otago, Waitaki, Hawke's Hay, Poverty Bay, Marlborough and Bokianga, including large ana- in each case.

So far only one of the four main cities viz., Auckland—has yet been included in a power district, but ol the secondary towns. Palmerston North, Invercargill, Tknaru, and Wanganui are included, and Napier will probably be included shortly, leaving, of the towns with a population of ten thousand or oyer, only Hamilton. Gisborne, and New Plymouth outside. The advantage of Power Board organization i- more obvious to country than to city ratepayers, and yet the above position indicates that the cities are realising that it is to their advantage generally to be associated with the countrv in undertaking the work of reticulation of electric power on a comprehensive scale.

The Boards already formed are getting to work energetically in carrying out their function-. Six Boards—viz., Thames Valley, Cambridge, Central, Te Awamutu. Banks Peninsula, and SpringsEllasmere—have carried out fairly complete reticulation of their areas, and are distributing power taken in bulk from the Department's hydro-electric power plants at Horahora and Lake Coleridge. The Auckland Board has taken over the city electric-power station, and is providing for large extensions both of plant and mains. Three—viz., Southland. Tararua, and Ashburton—while pushing on with their reticulation in anticipation of an early supply of hydro-electric power, are giving partial supply from existing stations in the town areas. Wairoa is taking power in bulk from Waikaremoana, and supplies the borough and a few large consumers in the neighbourhood. Three-viz., Wairarapa, Opunake, and Teviot—have small power-stations approaching completion, and will commence supply before the end of the year. Eight others—viz., Dannevirke, Horowhenua, Manawatu, Kangitikei, Hutt Valley, Central Hawke's Bay. Malvern, and' South Canterbury—are arranging to take power in bulk from the Government hydro-electric sources, and are preparing their systems of reticulation with this end in view. The Buller District, though constituted, has not vet elected a Board. The other eight- viz.. Westland. Reefton, Taranaki, Grey, Otago Central. Wairere, Ilobson, and Tauranga—are making special arrangements in each case, which have not yet been finalized.

Table L herewith gives details of the dates of constitution, the area, population, and rateable value included in each of the thirty-one power districts already formed, also the amounts of the loans already authorized, and the voting on each poll taken. The total amount of the loans authorized by the nineteen districts which have already taken their polls is £5,636,500. The population of the inner areas concerned is 117.761, so that the loans authorized amount to £l3-5 per head of population, as compared with LI 1 last year. The unimproved valuation of the inner areas is £107,902,231, so that the loans authorized amount to 5-2 per cent, of the unimproved rateable value of the lands pledged as security for the loans, as compared with 5-4 per cent, last year. The voting at the nineteen polls amounts to 23,610 to 1,816—i.e., a majority of 93 per cent. In one case (Te Awamutu District) the poll was unanimous, and in the Taranaki poll, in which the opposition was the strongest, the majority was still 77 per cent.

Tabic M herewith shows the capital expenditure incurred by each Board up to the end of the financial year, the revenue and expenditure, and the amount of rates struck and collected. The total capital outlay by the twenty Boards which have started construction is £2,224,090, but a great part of this is on works not yet in service. The gross revenue from the sale of electricity by the nine Boards which had commenced supply was £206,909, of which three-quarters was received by the Auckland Board. The general result is a loss over the whole business of the Power Boards of £15,651 ; but. as a substantial portion of the interest on lines still under construction was charged to capital, the total amount that it was necessary to raise by rating in order to cover the losses was only £7,:>S2. With so many of the schemes in the very early stages of supply this result is quite satisfactory. The rating lor the next few years will have to be substantially heavier unless provision is made to enable Power Boards to carry forward losses in early stages of their operations, to be paid out of the profits which can be anticipated after the first few years, as the Department has done in connection with hake Coleridge and Horahora. lint, even so. such losses in the earl} stages do not indicate any want of security in the business as a whole, hut are inherent in startinu of any concern depending to such an extent on a large initial capital outlay to cam a revenue which takes time to develop.

Ml

During last year ten of the Boards struck a genera] rate, which was only collected in five oases and Beven <<( the Boards struck special rates lie the security Ice loans, none of which had to be collected.

Several of the Boards are passing through a critical stage owing to the high cost and high interest rates ruling in 1921 when they started construction work, and to the fact, that they have undertaken the construction of many lines without requiring the guarantees from consumers authorized by clause 7 (i!) of the regulations, lint costs and rates of interest are now substantially lower, and the other Hoards are profiting by such experiences, and much better results will lie attained by the Power Hoards generally in future as the result ol the experience of these earlier districts.

Local Electric-supply Systems,

Including tin' Government plant-, there are now sixty-three public electric-power stations in the Dominion, as detailed in Tables N and 0 herewith.

Four new water-power stations started operations during the year viz., Waikaremoana (7<M> kw.}. Whakatane (240 kw.), Fairlie (40 kw.), Havelock North (176 kw.) and one steam station (Hamilton) was closed down and supplied from Horahora, and one gas station (Wairoa) is now supplied from W aikaremoana.

Extensions were made during the year to Lake Coleridge (3,000kw., water-power) and Auckland (3,000 kw., steam). The changes during the coming year will also he in the direction of increasing the large stations and closing down the small ones, giving greater economy in operation.

The total installed capacity has increased during the year by 5,840kw., or I! per cent, (from 51,749kw. to 57,589kw.), and the maximum load by 5,636kw., or ] i \ per cent, (from t8,866kw. 1- 54,502 kw.).

1 he proportion of metalled plant is now as follows:

si i limi. Kilowatts. Proportion per ' fenl.

Water-power .. .. .. .. ..31 29,386 511

Steam-power .. .. .. .. .. 9 23,925 41-5

Gas-power .. .. .. .. .. 21 3,492 6-1

Oil-power .. .. .. .. ..2 786 1-3

63 57,589 100-0

showing a steady increase in the proportion of water-power.

The number of consumers supplied has increased from 88,838 to 106,7!»', an increase of 17,952, or 2<> per cent., for tin- year. The units per consumer, exclusive of tramways, were 1,280, as compared with 1.210 last year.

The total population included in the various areas of electric-powsr supply is 767,600. or over t;n per cent, of the total population of the Dominion ; so that the ideal of a supply being available to every home in the Dominion is well on the way to realization.

The maximum demand per head of population in the areas supplied, including tramways, is o*o7l kw., practically one-half of tin- allocation of 0-15kw. or o*2h.p. per head of population, which is the basis 'if the design of the Governmenl schemes. The units sold per head of population supplied, exclusive of tramways, were 178, as compared with lit', last year,

The total length of distributing - line is .'5.758 route-miles, as compared with 2,81 j lasl year, an increase of 944 miles, or 33 per cent. The number of consumers per route-mile is 28*4, as compared with 31-4 last year, the reduction due to the large mileage of oew lines erected during the year to which the full number of services arc not yet connected.

The power demand per route-mile of line is now 12kw., the sales 36,200 units, and the revenue £2BB, exclusive of tramways in each case. These are 3ul ntially smaller than last year, for the reason, but air -till remunerative returns over the whole business. Light country lines, on the other hand, will pay with a return of £5O per mile.

The revenue per kilowatt of output of all stations, excluding tramways, was £24-2, as compared with L-i 1 Lasl pear. The water-power stations show a revenue of £2O per kilowatt, steam stations of £3o*l per kilowatt, ami gas stations oi E4O-4 per kilowatt. These an- valuable figures for use in forecasting the revenue from systems of various descriptions. The water-power systems include the largest proportion of Large consumers, ami the gas-engine stations the Largesl proportion of small consumers.

Out oi the eighty-one distribnting authorities, fifty showed a profit for the year amounting to £137,989, and thirty-one showed a loss amounting to £28,988. The genera] resull is a nel profit Eoi tin- whole Dominion of £109,000 after paying working-costs (£553,540) and capital charges (£420,207) al the rate of 6.6 per cent, on the total capital outlay of E6, 108, t92. This shows a nel profit of 1-7 per cent., as compared with 1-6 per cent. Lasl year. The laisiness on the whole is thus a thoroughly sound and remunerative one, as well as supplying a public necessity to 60 \><t cent, of the population of the Dominion.

(J Hydro-eleotrio Development

32

Electric-power Supply of New Zealand for the Year ended 31st March, 1923.

Note. — Figures for special tramway stations are not included in capital outlay, working-costs, capital charges or revenue.

Daily Load Cubvbs. The question of the daily load curve and the ratio of the average load to the maximum load or the load-factor is an important one in determining the selling-price of electric power. Each station must ascertain its own load-factor and determine its selling policy accordingly. Hut as a general guide the daily load curves of sixteen of the larger stations of the Dominion have, by the kind co-operation of the engineers to these places, been obtained for two days of the current year—viz., Friday, 23rd March (representing equinoctial c litions), and Friday. -22 nd June (representing midwinter conditions). Friday has been selected as the late-shopping night in most places, thus representing the most extreme conditions of loading. These sixteen stations have an installed capacity of 51,683 kw., or 1«) per cent, of the total installed capacity of the Dominion, so that the resultant curves may lie taken to represent quite accurately the sha] 1 tic load curve of the combined output of tic whole Dominion. Water-power and fuel stations are proportionately represented, including all tic large stations (.1 each type, and the diagram includes not only the total output, but the water-power ami fuel-power outputs separately. The summation curves are plotted in Fig. 3. attd the results are as follow :

33

34

these toe 'lady load-factors. The annual load-factors are 'if course substantially lower, being ls-i; per cent, for water-power, 32-4 per cent, for steam power, and 11-0 per cent, for the whole output of tlie Dominion.

As shown In- the curve, the load throughout the day hours, 8 a.m. to 5 p.m.. is extraordinarily uniform. In summer there is a distinct drop at Ō p.m.. before the lighting-load curves conic on at ' ['-"I- In winter, on the other hand, the peal; occurs from 1 p.m. to Ô p.m.. ami is due lo the overlapping of the lighting load with the industrial ami tramway load for this period. !i is largely with the object of reducing this overlapping peak that the adoption til a standard time twelve hours instead of eleven and a half hours ahead of Greenwich mean time has been proposed, ami it would obviously reduce the cost of the electric-power supply accordingly.

There is an average difference between the total outputs for the 23rd March am! the 22nd June during the daylight hours of 6,000 kw., which represents partly the normal growth in the period of three months, and the balance mainly the radiator or heating loads for practically the whole of the Dominion, which thus probably a its to about 1,000 kw. The loading from midnight to 5 a.m. is surprisingly high -viz., 2,000 kw. on the steam-plants ami 12,000 kw. on the water-power stations. Ihis is mainly taken by the mining load, about 4,000 kw. : cement-works, about 2,000 kw. ; freezingworks, about 2,000 kw. ; (four-mills, about 1,000 kw.; and the balance by pumping, street-lighting, battery-charging, water-heating, and other all-night uses.

Inspection of Electric Links.

.he annual inspection of electric lines ha< been carried out during the vear, aid the condition o! overhead-wiring work in the Dominion has been maintained at a very Inch standard, particularly in connection with the new Power Board installations.

Registration ok Electric-wiremen.

Flu., matter has been under consideration for some years, ami c draft Bill has been drawn up with the object of bringing the qualifications and conditions of'registration of electric-wiremen up to a uniform standard throughout the Dominion, am! several consultations have been held with the authorities concerned during the year.

Staff.

During tic year Mr. F. T, M. Kissel visited the main electrical installations and factories of America, Great Britain, ami Europe, and gained much valuable information on recent development, which will he submitted in detail in a separate report.

ine work ot the branch is still hampered by frequent changes in the staff. The hydro-electric work of the Dominion has developed so rapidly that the utmost difficulty is found in getting the necessary trained staff at the salaries available. The staff already in the Department have done splendid service, and two or three very successful appointments have been made from outside. But several advertisements have resulted in no applicants with the necessary experience in the design and consi ruction of such works as are in hand. The present staff deserves the highest commendation for the loyal and efficient manner in which they have coped with extra duties, and have maintained the efficiency that is imperative with the growth of this increasingly important work.

Lawrence Birrs, B.Sc., M.lnst.C.E., &c.

Chief Electrical Engineer.

36

Tablk A. Lake Coleridge Eleoteio-power Supply.—Results of Operation.

36

Table B.—Lake Colekidge Electric-power Supply.—Analysis of Capital Outlay

Table C.—Lake Coleridge Electric-power .Supply.—Operating or Working Costs.

37

Table D Lake Coleridge Electric-power Supply.—Connected Load in Kilowatts at 31st March, L 923.

Table E. Lake Colerjdoe Electric-power Supply.—Gboss Financial Results op Distbibution op Enf.rcy for Yeab ended 31st March, 1923.

• After deducting amount of sales to other distributing bodies, totalling £32,921 to Public Works Department, and £-,063 to Christchurch City Council. t Woolston Borough Included in Christchurch City Council return. ♦ Included In capital expenditure. P.W. = Paid to Public Works Department. C.C. =■ Paid to Christchurch City Council. Net profit of the whole Lake Coleridge system, £27,656.

38

Table F.—Waikato Electkic-power Supply.—Results of Operation.

39

Table U. -Waikato Electbic-power Supply. Lnalysis oj Capital Outlay.

Table H.—Waikato Electbic-power Supply.—Operating oh Working Costs.

Table .1. —Waikato Electric-powf.b Supply.—Connected Load in Kilowatts (31st March, 1923).

Tabu: K. Waikato Eleotbio-poweb Supply. Gross Financial Results op Distribution of EnEBGY FOR THE Yi:ii: ENDED 31S1 MARCH, 1923.

* After deducting amount ot sales to other distributing bodies, totalling £17,039.

Net ]pE-. «iii fur the irhole Waikato Byetom, £5,820.

7 —Hydro-eleotrio Development.

o

41

to

X

44

45

05

47

48

Table I'.- Available Water-power ix New Zealand : Schemes of 1,000 Horse-tower and over.

in

Table I'. Avah.aiu.i-: Watek-powhb in New Zealand -continued.

• Signifies daily storage available to utilize 50-per-cent, load-factor. t Signifies seasonal storage made available.

APPENDIX E

ARTHUR'S PASS TUNNEL.

EARLY EXPLORATION AND CONSTRUCTION.

Nex'J to a prolific soil and the possession of great natural resources otherwise there is no adjunct of materia] progress that i- so generally important and exercises so vital an influence on national characteristics as the growth of the railway system. This being so, the Dominion of New Zealand may fairly claim to be supplied with the principal requirements for well-being and prosperity, inasmuch as nature has provided the former and the enterprise of its inhabitants has attended to the lattej

Anion- the colonists in the early days of New /.aland there were many who had a keen perception of the advantages that would attend the introduction of railways into the m-w country they were helping to found. The progress <<i colonization was. however, naturally somewhat slow in those days, and it was not until 1860 thai a contracl was let for the construction of the first New Zealand railway: this was between Christchurch, the chief town of Canterbury, and Lyttelton, its seaport. Since then railway-construction has progressed as rapidly as the financial position i country and the great natural obstaclefl encountered have allowed. At the present time th : about three thousand miles of hm- open for traffic, and a lame number of new lines under construction. In the Middle Island of New Zealand (or South Island, as it is more commonly called) the great obst,,rle to railway communication between the fertile plains of Canterbury, with its port, Lyttelton, on the easl coast, and the timber and coal lands of Westland on the west roast, has been the high mountainous ranges of the Southern Alps, which run parallel with the east and west coasts. The South Island is roughly about five hundred miles in length, with an average width of probably one hundred and twent; I it is divided for almost its entire length by this alpine range. Some of the summits of the range reach a height of from 10,000 ft. to 12,000 ft. Mount took, the highest point, rising to 12,349 ft.

From the earliest day- of colonization the question of railway communication betweei church, on the eas.l coast, and Greymouth, on the west roast, had attracted great attention, more especially among the residents of Canterbury and Westland. Greymouth is a bar harbour, difficult to work, and seldom if ever visited by steamers from Europe or America : but Lyttelton, the port of Christchurch, is a common port of discharge and loading for sued vessels.

Surveys and explorations for the purpose of ascertaining the best route over the mountain-ranges were put in hand al an early date. In 1864 Mr. Arthur Dudley Dobson made a survey for a road over the mountains from Christchurch to Greymouth. This was taken over a pass called " Arthur's Pass," in his honour, and runs down the famous Otira Gorge. The survey of this road and its

~(,

subsequent construction enabled a considerable aniounl ol useful information to be collected in furl herance of t lie projected railway.

Between lBB3 numerous surveys of proposed routes were made, ike most notable b the Cannibal (knee route, running from Culverden, in Canterbury, to Reefton, m Westland; the lluriiniii Gorge route, fr Waikare to Jackson Arthur's Pa ■ from Springfield, in Canterbury, to Stillwater, neai Greymouth. In 1883 Royal Commission was set up by Parliament In decide on ike best route for the proposed railway, ..ml the Arthur's Pass mule waa finally adopted. bm

The line from Christchurch had i n construi ed . • Springfield, end from Greymouth to Springfield the route was roughly as follows : Ii ran from Gn ; mouth up the valley of the Gri v River to Brunnerton and Stillwater junction, and thence up the Arnold, and round the northeastern side of Lai through a natural depression, into the Teremakau Valley; up the Teremakau River an i its tributary (the Otira) to Otira : from Otira ovei Anion'- Pass to B. alej Flat (or '■ Arthur's Pass," as if is no» generally called) : From Bealej Flat down the !!. aley Valli v 'to the J, of the Waimakariri River, then crossed 1( , t i,,, J ,.jrl l< ; ~., ,|„. Cass River, where it left the river and made for the saddle o) Mount Si. Bernard, wheno by Ihe lone valley of Slovens Creek to the Waimakariri Gorgi : thence down this Gorge to Springfield, and across i he plains to (Ihristchurch.

At that time tl e inb ntion wa to construct the line on a l-in-15 grade over Arthur's Pas,, using a centre-rail, Fell system. The summit of Arthur's I . 3,000 ft. above sei V 1 A _. ! . . I > . e 11 I . i , ■ . . .

As soon as the Arthui s Pass route was finally adopted, several influential New Zealand gentlemen ■ rystajl Syndicate, to push ahead with the construction of the Midland Rail ras now g, i , ~,: m to various railway-construction 1 the Ni a Zealand Government. In 1886 (hi Chrystall Syndi. t, was merged into the Midland Company, with a capita] of £500.000.

Midland Railway Company (Limited) «as whal is generally kno la,Ki - ' ruction corporation, similar to the great railway companies of Canada an(i " who took ovei the contracts o'i 'la- Chrystall Syndicate! "nulled, and a new one, dated 3rd lugust, 1888, was entered the v " y rnmenl and ike Midland Company. That contract provided hould contrui I a line fr Springfield, in Canterbury, to Brunne i freymouth, in Westland.

A.s an inducement to the company to build the railway, all Crown land- remaining al the lime "' I,h ' signing of bl in the provincial districts of Canterbury and Westland and Nelson ■-. and of an estimated yah I £3,150,000) were earmarked and cut up into blocks, each Meek being valued in a schedule attached in the contract, and none at less than 1 i:e i mire line was divided into seeiions for (he purpose ~f allocating the proportionate estimated cos! oi the construction of each particular section; the company, upon completion of a being enabled to select blocks of land, upon the basis ~f 10s. worth of land for each II spent si ruction of the railway.

Between 1886 and 1895 work proceeded vigorously, lan when al i thirty-five miles of the fine had 1 n completed Hie physical difficulties to be over» were found to be so greal thai the company shrank from attempting the apparently impossible, and accordingly the ambitious idea was abandoned. The result was thai the Goven iii took lie' railway over ami determined to penetrate the mountain-chains at all hazards.

From 1895 construction work was pushed ahead on both sides oi the mountain-ranges, and in i '" 1 " a committi I engineers was ~, | ~,, to consider the bes! means of - rossing the i ctua] dividingrange whether to adhere to the original proposal of a l-in-15 grade over thi range, or bo have a long summit-tunnel. The committee decided in favour of a summit-tunnel aboul six miles long, with ā grade of approximately 1 in 37.

In 1902 Mr. V. G. Bogue, an eminenl American engii r. was called m by the New Zealand Government, and after considerable investigation recommended a line with a shorter summit-tunnel "" ■' grade " f I i" 32. Übe considered a line with a summit-tunnel on such a steep grade was quite suitable, further surveys were made, and a line with summit-tunnel on a made of I in 33, and in its present position, was finally located. This proposal was submitted to Mr. Bogue, who confirmed the recommendations of the local engineers, and ii was finally decided t lopt this route

The eastern end of the tunnel is ai the summit of the fine between Christchurch and Greymouth, and is in the valley of the Bealey River, near what is now known as Arthur's Pass Station : and the western end is in the gorge of the Rolleston River, about three miles and a half above Otira Station Otira is about fifty-two miles from Greymouth, and Arthurs Pass is about eighty-five miles from I Ihristchurch.

The location of the tunnel having been derided, final surveys were at one- made for the purpose of carrying out the construction. A line was ranged out over the mountains from one end of the tunnel to the other, a series .if trigonometrical stations were established, and precise levels were carried from one side to the other. Owing to the mountainous nature of the country and the severe weather experienced at times, the whole of tins work was earned out under extremely trying and difficult conditions ; but, as will be seen later, it was done with extreme accuracy

Ine surveys completed, plans and specifications were prepared, and on the 12th lugust 1907 a contract was let to Messrs. .1. H. McLean and Sons for the sum of £599,794, the time for completion being fixed at five years a very optimistic estimate as events transpired In Ani-il 1 Ofl.Q t-na „-,.,.1- nf *-1... 1.-... ... 1 I* . _

in April l»ub, tne worK oi driving tne bottom I ling was commenced at the Otira end ■ and on he sth May Sir I. (~ Ward, as Prime Minis,,!, fired the firs! shot a, official opening of the work. On the Ist July, 1909, the bottom heading ai the bthur's Pass end was commenced.

51

After spending aboul Li-'btMKHi on plant and material, and making greal efforts to proceed with the work, the contractors found that they could not possibly finish the work lor the contrad price. They informed the Government accordingly. A parliamentary Committee looked into the whole position before releasing Messrs. McLean and Sons from the contract, and came to the conclusion that, as the Arthur's Pass Tunnel was a national work which ought to be completed, fresh tenders should be called, ami the Public Works Department be instructed to continue the work meanwhile. It was fairly evident thai no private contractors would face the task which the original contractors had found so ditlieult ; consequently the responsibility for the work was shouldered by the Public Works Department, which has now brought it to finality.

The Bummit-tunnel, though the most notable work on the line, js but one of many notable works. lor the bridges and shorter tunnels compel just a- much attention. To give some idea of their frequency and character it may be mentioned that, in a short length of nine miles, there are three high steel viaducts, one of which carries the rails 236 ft. above the floor of the gorge, and no less than seventeen short tunnel-, the longest of which is about 2,000 ft. : while there is scarcely a mile nf level in tic whole line. A tremendous amount of work lias also been done in protecting the railway embankments from mountain-torrents, which run at a terrific pace in flood-time.

The exact length of the tunnel is .*» miles ōō ] yards, all on the straight, with a grade of I m 33, iir i2 11. per chain, rising from about 1,685 ft. above mean sea-level at the western end to a height of 2, L 35 ft. above mean sea-level at the eastern end a rise of 850 ft. It will carry a single-track line ol 3ft. Gin. gauge, which is the standard gauge of the New Zealand Government railways. In crosssection the clear height above rail-level is 10 ft. * i in., with a maximum width of 15 ft. The tunnel is lined throughout. The side walls and footings are of mass concrete, and the arch is formed id' concrete blocks. Excepl where the ground is very bad the mas- concrete is carried part way up tie arch, and only a few rows of blocks are used,

The tunnel is In solid rock excepl for a few hundred feet at the portals. Those who expected some interesting geological discoveries as a result of the big drive through the range have been disappointed. Tie' rock was found to be monotonously alike right through, varying only in degree ot hardness. The rock lies on its edge in more or less vertical beds of greatly varying thickness, whose strike is more or less parallel to the tunnel. The rock is jointed in all directions and is fissured badly. It i< nf such a nature that explosives can b< used to greal advantage : but it i- gritty and hard oi drill-steels used for boring the holes for blasting. In places it changes abruptly from extremely hard 3andstone to medium sandstone and indurated slaty -hah'. Some of the rock was so hard that the greatest difficult) was experienced in hardening the drill bits so that the) would stand the wear and tea break. The greater part of the tunnel was, however, fair boring.

Temporar) timbering was used throughout to prevent flaking of tie- rock-surface, and Eairl) heavy timber was necessary in some of the worst places where faults m the rock-structure were encountered. The ground was sometimes dry, commonly wet. and occasionally very wet : but the tunnel was pierced without striking any very great volume of water necessitating special methods such as were employed in the construction of the Simplon and other lone tunnels. The greatest tfowof water was about 3,000 gallons a minute, but as the lining was completed this was considerably reduced, and the present flow i.-. about 1,500 gallons a minute.

The greater part of the work was done uphill from the lower or western end. <>n accounl of the assistance of the grade in getting rid of the excavated material, and because of tin heav) pumping required to drain the tunnel at the eastern end until tin' headings met.

The excavation was carried out by the bottom-heading method, followed by enlargemenl to lull section ; i.e., a hot torn heading or drive about 8 it. high and In ft. wide was first driven : when this had advanced far enough a top heading was driven, followed b) the breaking-down and excavation of the arch, walls, and footings. Tin- method allowed more men to be employed in the workings than if the tunnel had been excavated in one face and is in general use, except that sometimes the top heading is driven first. The best average rate of excavation was I:;.'. ft. per da) for twelve consecutive The headings were timbered as required, and when the lull Bection was excavated it was also timbered and lagged ready for concreting. The concrete limn:; of the tunnel was kepi as close to tie' full-section excavation as possible, .VII concrete was machine-mixed, and was in the proportion by volume of one part of cement, two parts of sand, and five parts of shingle. The concrete blocks in the tup of the arch were made outside the tunnel, and allowed to mature for three months before use when possible.

About half the stone for concrete aggregate was obtained from rock excavated Erorn the tunnel, and the remainder from deposits near each end of the tunnel. Good sand was scarce, ami grindingmachinery was used for a time at one end. Most of the stone and sand obtained outside the tunnel had to be washed, and the cost ol the concrete aggregate was high.

The drilling of the holes for blasting was all done by drills operated b) compressed an. Two or three drills were used in each of the headings, and others elsewhere as required. The compressed air was conveyed to the working-faces by a sin. main at one end and a 6in. main at the other end.

Power for the air-compressers, for lighting purposes, for driving the electric-mine locomotives, and for driving the miscellaneous machinery was obtained from hydro-electric plants at each end of the tunnel. At the western end (lie plant generated 600 horse-power at 500 volts, direct current. The plant at the eastern end was of similar capacity : and before the bottom headings met, power for operating the pumps for pumping water out of the eastern bottom heading had to be supplied l>v the plant, in addition to the power required for compressors, locomotives, lighting, &c.

The haulage of trucks from the working-faces to the completed part of the tunnel was effected by means of compressed air-driven winches and wire ropes. The haulage of the excavated materia] from the completed parts of the tunnel, and the haulage of timber, concrete, &c, into the tunnel, was done by means of 10-ton electric mine-locomotives. These ran on a 2 ft. 6in. gauge line, and in the completed portions of the tunnel power was taken from a bare overhead trolly-wire, in the usual way.

52

As these locomotives often worked beyond the completed portions of the tunnel, each locomotive was fitted with a drum carrying an insulated cable, and a rewinding motor and brake. The cab hooked bo the end oi the trolly-wire, and enabled the locomotive bo run 1,300 ft. beyond it. Tim enabled the locomotive bo run right up bo bhe working-faces if sessary, and avoided bhe difficulty and danger of providing a suspended bare trolly-wire in the uncompleted part oi the tunnel.

In a tiiniH'l five miles and a quarter long adequate ventilation is absolutely necessary. In tne Arthur's Pass Tunnel ventilation was effected by a system of exhausting the air from the workin purr air being thus induced through tin- completed part of the bunnel A Roots blower having a capacit) of 1,000 cubic feet pej minute was installed at each end it the tin I. the air being exhausted ■ : , a It; in, riveted steel pipe, which extended to the completed part- ol the tunnel. At the Otira end, as the working-face advanced, the blower at the end of the tunnel was found bo be insufficient, and a "booster" blower was installed about a mile and a half from the tunnel-portal. The working-faces were further ventilated by the exhaust air- from the air-drills. When the work was first started ventilation was effected by releasing compressed air a 1 the face, thus driving out bhe impure air along bhe bunnel. This in.-ant bhe fouling of bhe line along which spoil had bo be hauled, and a change to the exhaust system was made b\ bhe Public Workß Department.

ig outside and in bhe finished parts of the tunnel was by electric incandescenl lamp-, using each point. This voltage was boo high for lighting in tunnel woi tylene hand lamps were i here u I, bo each man.

\t both ends of the tunnel water for drilling, drinking, &c, was supplied to all fairs. The men the tunnel were housed, and change-rooms, baths, drying-rooms, Ac, were provided at pita! was erected and equipped at Otira, ami at the Arthur'- Pass end arrange ial 1 rains in ease of accident -

The progress of the low, ami the estimated time for completion, and also the estimated le !. A large pari of the work was done during the war perio I. Wages 1 .a- in some cases more than doubled ; cement, for md £lO per ton, and was at times almosl unprocurable. In orl had to be stopped for a short time as no cement was The supplv ": rground workers was never equal bo bhe demand, and, although nore than half-manned. In parts the rock proved much ■■• t.ill- ol rock -it the parts previously mentioned ■. "i'L

As previous!; aken over from the contractors m the Public Works i' ne tin' bottom headings had been driven for ,i '. completed anil lined for about a mile ami three-quarters. ■ e steady progress was made. On the 7th Maw 1918, the men at the Arthur's Pass end : unnrl heard the sound ole i barge* used in tin- bottom heading at the Otira end Keen in ■ ■ ! : and on the 29th June the sound of the rock drills working on the face Otira end i Arthur's Pass workers, who were abonl 200 ft. away. Shortly \ . the bottom headings met '■>> miles tis chains 10 links having been driven from the Otira end, and I mile 37 chains o'B links from tin' other end.

rhe i: ei ting oi the headings showed that the surveys \\.\<\ been made ami the tunnel driven with remarkable a* e difference between the actual length and the calculated length was 36 in., the difference in level was only IJ in., and the alignmenl was extremely accurate, being only g in. out. By way of comprison : In the Mount Cenia Tunnel, seven miles ami a half long, tin- error in direction was found t<> be nil. the error in levels to be I ft., and the actual length to be 15 ft. in excess of the calculated length.

i 'n tin' -Jl-i August, 1918, tin- final barrier in the bottom heading was shol away by a charge fired U Sir William Fraser, bhen Minister of Public Works; and about three years afterwards the whole of the excavation ami lining was completed.

Arthur's Pass Tunnel is the aeventh-longesl tunnel in the world, and the longest in the British Empire,

Serious and fatal accidents have been few : there have been occasional falls of rock, as mentioned above, delaying the work and increasing the cost. At the east end, for I,oooft. or more from the . orl 'I. the tunnel rims close to the river, under a steep hillside, and with very little cover in places. poinl where the arch was within 30ft. of the surface, and the roof was very thin rock covered with clayey gravel, the weigh.l of ground broke through the timbering of completed ition for 50ft. along the tunnel and ran to the surface, Si.me men were caught in this fall, whom died later. Two men, free and unhurt, were imprisoned in tin- bottom heading beyond the break for four days, while an adit was driven from the river side bo gel them out. Conversation with them w& through the 5 in. air-main, through which also they were provided with dry ! and fuud. They were none tin- worse for their experience.

Owing to the steep grade and the difficulty of dealing effectively with the smoke from strain locomotives, it was decided to electrify the tunnel. Several schemes were considered hydro-eL power against steam for the generating plant ; the electrification of a considerable length of the line on each side of the tunnel; the electrification of the tunnel only; and several other alternatives. t:ti.ilK decided to electrify the track from Otira to Arthur's Pass, a distance of about eight miles and three-quarters.

The generating plant is bo be steam-driven, and the power-house is a 1 Otira, The system which j 3 1,, be used is 1,500 volts direct current, overhead contact. Three marine-type water-tube hand fired boilers are installed, and the generating-sets consist ol two geared turbine-driven generators of 1,600 kilowatts capacity. In the future, when power becomes available, it is intended to link up the line with the hydro-electric system, and to use the steam planl as a stand-by.

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The power-house was built by the Public Works Department. The construction of tin- reser voirs and pipe-line- for tin' water-supply lor the power-house, and the Laying of the rails for the electrified portion of the line, wen- also earned nut by the Department.

Two contracts were let lor the real of the work one for the installation of the boilers, and another tor the prime movers and the electrical equipment. The. electrical equipment contract included the supply and installation of the generating-setS, locomotives, and all overhead work.

Climatic conditions have been against the rapid completion of the electrical work. The summit ol the line is 2,435 ft. above sea level. Otira is at an elevation of 1.2(10 ft. above sea-level. The rainfall is very high, the average annual rainfall being L 95 in. or over 16 ft. Considerable snow also tall- during some winters, a fall as much a- .") ft. having been experienced al Otira.

Temperature records have been kept near the tunnel-portal at the Otira end. The lowest temperature record was II Fahrenheit, and the highest 82 Fahrenheit. The thermometer remained below freezing-point for one period ol thirty-six consecutive days (thermometer outside in the shade).

In addition to the extreme cold and the intense rainfall, gales of meat violence occur in the district. Notwithstanding the difficulties which have had to be overcome, and the adverse climatic condition-, the electrical work is practically completed, and it is Imped to have trains running regularly through the tunnel in a few months' time.

APPENDIX F.

ARTHUR'S PASS TUNNEL.

KLEf'TRTFTOATION

The electrification of the tunnel having been decided upon, various sources of power were investigated, and the choice fell on steam ; though eventually it is probable that the State hydro-electric lines will pass near the power-house, when motor generators will be installed, and the steam be used only as a -tand-liv.

The planl consists of three Babcock ami Wilcox marine-type water-tube boilers, with 3,020 sq. ft. of hea (irate area, 89jsq. ft.: superheater heating surface, 590 ft.; pressure, 2501b. per square inch. Each boiler evaporates normally 13,5001b, per hour from flat a temperature of 100 K. to -team at 2501b. pressure, anil when working at that rate the superheater will raise 95per cent, of the steam in a final temperature of a limit v;i i F. This is for use in the main turbines th< 5 per cent, being taken by the f 1-pumps, fan-engines, &c. Bach boiler and superheater will for shori periods lie capable of an emergency capacity of 19,000 lb. per hour. Tin- performance above is based on coal of a calorific vain.' of 12,'hh) B.Th.U. per pound, atnl the use of mechanical-induced draught. The chii ;ys, one for each boiler, are 60 ft. above grate-level, of mild steel. -\. in. and j in. thick. I ft. diameter.

The main steam range is 6 in. bore, so arranged thai steam can be taken from any or all boilers to either or both of the main turbines, through two reducing-valves which reduce the pressure from 2501b. to Icm 11,. Should either of the valves fail, the whole station can be operated through the other while the defective one is Bhortcircuited and «repaired. The whole of the main ea and valves are covered 2 m. thick with plastic magnesia non-conducting composition, and the auxiliary steam ami exhaust piping with 1 1 in. of same. The w hole of Lagged work is enclosed by painted canvas.

The power-house planl consists «if

(a.) Two Hteam turbines, horizontal impulse type, rated 1,600kw. with a 50-per-cent. overload capacity, 3,000 r.p.m., steam-consumption 14-26 lb. per kilowatt.

(b.) Two Bets of double helical reduction gearing, 3,000 to 150 r.p.m., with special forced lubrication.

(c.) Two D.C. generators, 1,650-volt, 1200kw. normal rating, but capable of giving 25 per rent., overload for two hours. 50 per cent, for thirty minutes, LOO per cent, for five minutes with 94 per cent, efficiency; temperature-rise after six hours, 10 C. The exciters are 15 kw., 110 volts.

I'/) Two surface condensers maintaining 29 in. vacuum when supplied with 3,000 gallons per minute of water a 1 50 c P., and dealing with 22,5001b. of steam per hour.

(r.) Two sets compound high Bpeed engines, 100 kw.

(j ■ Two 125 K.V.A. alternators, twelve poles, 2,200 volts, 25 per cent, overload for two hours and 50 per cent, momentarily ; efficiency, '.<! per cent. : temperature aft» hours full load, I" C, or 25 C. above surrounding air.

(</.} One surface condenser to deal with exhaust from either of Lighting-sets (c, /), and maintaining vacuum 26 in. with 210 gallons of cooling water per minute.

(A ) One negative booster driven by interpole-type motor operating on 1,650-voll D.C. supply : separate exciter on same shaft, 110 volts; the 1 ster D.C. interpole type arranged for voltages from oto 225. Combined sets, 25 per cent, overload, two hours; 60 per cent., thirty minutes and |m per cent, momentarily; temperature, "2-") C. above surrounding air.

(i i One battery booster consisting of induction motor driving two D.C. generators in tandem (similar overload capacity).

[j.) Two 70 kw. station transformers; primary, 2,200 volts; secondary, lon volts; with aeutral broughl out giving 230 volts for Lighting purposes; efficiency, 97*87 pet cent.

(/■.) One overhead crane, lo tons, electrically operated from cage: three motors. Also a full set of Bwitching-apparatus and the usual auxiliaries.

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In the workshop, which is \>au m thi main powei house building, there 1- one overhead crane, 15 tons, 3-motor; one armature turning-lathe; one banding reel and brake for holding banding wire for armature; and a sel of the usual drilling, turning, grinding, and forging machine tools.

The power-house is built of reinforced-concrete framing and concrete-block panelling; steel root in boiler-house and ma in turbine-room, and wood and steel roofs over balance ; galvanized corrugatediron roofing covers the whole. The battery locomotive comparti ot concrete, and completely cut off from resl of building. The locomotive sheds are fitted with inspection pits throughout, the rails being supported on casl iron pedestals, lOin. high, for ligb.l and general convenience. All pits are wired for lighting; this does away with long lengths of flexible cord.

The overhead work in the open is of the double catenary type as used on the London, Brighton, oath Coast Railway In the Otira station yard the catei I, bul on the main line they are of copper, each 37 13 B.W.G. stranded 0-25 sq. in. section. The mm an wire is 6 OS.W.G. pended every 15 ft. to catenary. Every 300 ft. there 1- also a feeder of 37 15 to contact wire. In the tunnel a single catenarv of '. sq. in. stranded copper is used, supported 1 vi ry 60 ft.

in :-. used bonded ever) 300 ft. to catenary in open and every halt mile is feeder is bare in open and lead-covered in tunnel.

The negative feeder connected to negative booster is I sq. in. in section, carried .is t wo hare cables, a hj, on same poles an positive feeders, and as one lead-covered cable in tunnel, and it pndn 5-2 miles from the power-house, where it is bonded to the rails. A pilol wire, 7 I s 8.W.G., is 1 throughout for purpose of measuring rail-drop. Two copper bonds, 1 08. & S.. are used at each railtonds bel ween adjacent tracks ai every structure. These are connected to th>* I rs for earthing purposes. All metal-work of insulators and pins, d to rail, bol hj in tunnel and outside.

The tunnel is lighted throughout, the primary conductors being 19 -064 in. diameter hard drawn copper in open, connecting to two lead-covered cables in tunnel, supplying 9 single-phase transformers, \.. 2200 250, in tunnel. Each transformer supplies approximately 4,400 ft. of tunnel. There circuits; each supply a 60-watt lamp in bulkhead fitting every 165 ft., so thai ■: ■ 32|ft. One circuil burns continuously; the other can be switched in as required for inspection. There are also plug-sockets for attaching flex cords with cluster light for the ■ pair gangs.

The lI.T. cable supplying current for main lighting also 31 rves Arthur's Pass yard and buildings ; this is comprised ot 0-025 three-core high-tension, paper-insulated, lead-covered, to carry 37 kw. at 2,200 volts.

The locomotives, five in number, are of the 0-4- I 0 type, weighl approximately 50 tons, giving \-2\ tons per axle. Only one type is installed, the idea being to reduce number of spares and simplify operation, maintenance, and overhaul. One will be utilized for passenger-trains and two for freights. The contracl loads rain at 15*35 m.p.h., 1 nd foi passi uger 138 tons ai 17*35 m.p.h. up hill and 24-8 m.p.h. down.

There are four driving-axles, giving 100 per cent, wheel-adhesion ; each axle mounts one 170 b.h.p. (one hour rating) 750-volt motor with single reduction spur-gear drive, 15/68; this gives an accelei > ft. per second on the 3*03-per-cent. grade with a trailing-load 0

The control is of the Zwiegberg multiple-unil cam-shaft operated type, and enables two or more coupled locomotives to be operated by a single crew : current to opei supplied by .1 rotary transformer and by an emergency storage battery. Tin fan-cooled' There are four systems of braking: (!) Westinghouse automatic; (2) Westinghouse non-automatic, for locomotive alone ; (3) hand-brake* independent of Westinghouse bra (-1) rheostatic elect ric brake.

In addition to the main-line locomotives, there is also a shunl tteryoperated locomotive, 50 tons in weight, carrying half its ironclad oxid battery on a tender. This otive is 0 I I 0 type, centra] cab. Each half of battery, tOO volts, can be used separate) they are interchangeable. Locomotive is to haul 10 tons up gra lea 1 B*fi m.p.h. Each hdi battery ia rated as follows: Discharged in 5 hours, 387 ampere-hours; discharged in 1 hour, 252 ai hours : discharged in 1 hour, 198 ampere-hours.

omotives have been illustrated in the tieama of December, Vdil,

An interesting feature in connection with the condensing-water is this : it is dj Goat 625 ft. above the power-house. There is a concrete weir and the intake is protected from avalanches by a spillage of old rails. It then passes through a pipe concreted into .1 tn ach in rock till clear of floods ai ind then through gravel traps and sill chambers : then by 10 1 1 12in. welded ■■• ■V.' l ) ft. below, where il passes through a Pelton wheel driving a L25-K.V.A. 2,200-volt alternator, which operates in parallel with the similar steam-driven machine in This hydro sel will normally provide all the current for lighting, thus obviating powei manned at night, on Sundays, or when no train move ats are taking place. The waste from the Pelton wheel Bows into .1 circular concrete tank of 78,000 gallons capacity. Thence il is carried in 10-in ■: pea to drive 1 ; ril hj a head of 90ft. 1 ;, concrete reservoir, 38« above power-house, whence by IBin. riveted pipe it is carried to the main surface condensers. The small flow in Goal Creek when frostbound, and the large demand for condenser-water, necessitated this arrangemenl of reservoirs, which fill up between trains. The same source supplies domestic water-supply to the railway employees' which is fitted with a water-borne septic-tanl 3tem, and also is lighted ally.

By Authority : W. A. 0. Skinner, Government Printer, Wellington.—l 923. [BOO/8/23—12580

Abthub's Pass Tunnel: First Train to pass through Tonnel, Jeffery Electric Locomotive hauling Mai hinery foe Power house,

Arthur's Pass Tunnel: Interior of Power-house at Ōtira, showing Turbine.

Arthur's Pass Tunnel: Otira Power-house and Village.

Power-bouse at Otira under Construction.

Arapuni Gorge.

Wajkato River at Arapuni Dam Site.

Interior View of Tunnel, showing Feeder Cables and Overhead Suspension.

Arthur's Pass Tunnel; Electric Locomotive on Main Line.

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Session II

1918. N EW ZEALAND

HYDR O-ELECTRIC DEVELOPMENT.

NOKTH ISLAND SCHEME.

Laid o/, the Tiihl,- of !/„■ House „/ Representatives oy Leon.

REPORT BY THE CHIEF ELECTRICAL ENGINEER TO THE HON. SIR W FRASER MINISTER OF PUBLIC WORKS.

Outline of the Scheme of Development.

I he scheme „1 development herein advocated as regards the sources of power is practically identical with the scheme advanced in my interim report* on this subject. Briefly, it comprises the development ol three principal power sources viz.. Mangahao. Waikaremoana, and Arapuni—with the reservation that the construction of the dam required for the latter may be found impracticable or at least inadvisable, when the character of the foundations has be,.,, more definiteh determined'by I»*». "> wni<* eveni Arapuni would be replaced by Watiatia. which is the next in order of merit as regards size and location.

(II the three sources. Maneahao is the best situated in respect to the load, and it is to he regretted that this source is not capable of yielding a larger amount of power. The general scheme falls short ol the idealin two other respects viz.. the lack of a moderately large source of power in the Taranaki district, ami a similar lack in the Whangarei district If it were possible to obtain 50 000 horse-power or more Iron, Mangahao, and if a source of about 20,000 h.p. in the Taranaki district and of about 10,000 h.p. m the Whangarei district were available, the scheme herein outlined would be materially "«proved : bin the ideal ts never attained, and the scheme here advocated is the bes, under the circumstances, and. while being adequate, economical, and eminently practicable at tin- stase described, can be still further developed and enlarged as required.

It is recommended that in the interest ~| national economy and production the scheme should be planned in such a manner and on such a scale that a supply of power shall be available with the co-operation ol the local authorities tor every householder in the North Island, and for any industry requiring the supph ol power, temporarily or otherwise: for main-line electrification lighl railways coal and other mine-, for winding, pumping, ventilating, and smelting, and for any other purpose '

In order to provide for the requirements outlined above a total Bubstation load of 130000 li p is necessary, requiring a plant capacity in the main power-stations of 160,000 hj p allocated as follows ""■■■■ '■"'•""' h.p. ai Arapuni, 10,000 h.p. at Waikaremoana, and 24,000 h.p m Mangahao The P ower "' br provided is equivalent to one-fifth oi a horse-power per head of the present population „1 the North Island, which provis is ample for ordinary requirements, but not sufficient for such Mtraordinan developments as have taken place in Tasmania. The sources mentioned have however greater potentialities than it is proposed to develop under the presenl aoheme, which can be developed late to satisfy extraordinary demands In, powei over and above those now provided for The roui i length oi transmission-lines is I Il'l miles, and the number of primary substations is twenty-nine The location ol the power-stations and the primary main-line substations, together with the'routes oi the primary transmission-lines, is show,, on a map attached to tin- report The svste I trans mission as designed, togethei with a system of distribution radiating from the mam substations U sufficient ,i, ensure a supply ol power to the whole of the island. The distribution system allowed lor cannot be shown on the present map.

* “ Hydro-electric Development: North Inland Scheme." Public Works Statement, 11)17. Appendix E, p. 49 I—D. la.

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The total capital expenditure is estimated at £7,303.012. including interest during construction, working capital, and a sum to enable financial assistance to be afforded to power-users and local authorities. It is pointed out that the whole expenditure is recoverable in from six to seven years in coal saved alone, productive power is increased and economy secured country districts settled, and closer settlements generally accelerated, whilst at the same time the undertaking is self-supporting after a reasonable interval for development and growth.

On the basis ot 7!, per cent, per annum the capital charges will amount to £647,728, and working expenses are estimated at £220,000 per annum, making a total ol £767,728, repining an averaga return of £5-9 per horse-power of substation load, which return should be easily secured.

A similar scheme for the South Island is under consideration, but the details have not been worked out. The outlines of the scheme are simple. Briefly, it would consist „f a system of power-stations, all linked together : starting from Rake Coleridge, this power-house would be linked up on tie- north to a power-station in the Marlborough district and to Westland, and in the south to a power-house intermediate between the present Waipori power-house and Rake Coleridge; this would in turn be linked up to the Dunedin Corporation's plant at Waipori, and Waipori to a power-house in Southland The inclusive cost would be less, if anything, than the North Island scheme.

fie- report, is divided into headings in the following order :

The Function of Hydro-electric Rower in the State.

Electricity in Agriculture.

Electricity and Industry in General.

Wood-pulp Industry.

Electro-chemical and Electro-metallurgical Industries,

I 'eetririeatu f Main-line Railways

Electrification of Suburban Railways

Agricultural Railways.

Electricity and i loal-mines.

Electricity in Mining generally

Genera] Principles affecting the Generation and Distribution of Power

Estimate of the Amount of Power to be provided.

Outline of Scheme of Generation and Distribution.

wiuiine ol CHiieuie 01 weneiaiioii , lU u umli o.uhoh. Acquisition of Waihi Gold-mining Company's Plant.

Mangahao I >evelopment. hi i \ i

Waikaremoana Development.

Waikato Development.

Primary Transmission System.

Primary Substations. i. t ;...; - r

Secondary Transmission or Distribution Systen

Assistance to Local Bodies.

Capital Expenditure.

Financial Results.

General Remarks upon t\ir Estimates.

Map.

The Function of Hydro-electric Power in the State.

The development, distribution, and marketing of electric power on a comprehensive scale has since the war come to be generally recognized as one of the most essential agencies in national reconstruction. Previous t" the outbreak of war its importance in national life was but dimly sensed except by a comparatively few persons possessed of an unusual amount ol imagination and foresight, and it is evident from reading Hansard of a few years ago that even the far-seeing one regarded electric power more as a means of industrial development m the narrower sense in which the term is commonly used than a- the nerve-system of the community and as touching every phase ol

rial louai me. Neither was it recognized at that time that national organization for production and the promotion of national efficiency was a function of a Government. The war has made it imperative that the nations shall lie reorganized on a national scale, and that in future the marshalling ol the forces of oroduction must he a definite and conscious function of the Government of a country.

ol production must oe a aennme arm conscious iuucwuu «a im- wacaiuinii w .i ........... The change in the attitude of public men towards electric-power development is well illustrated by the recent action "I the Government in Great Britain. Before the war the generation and distribution of power was left to private enterprise : it is now proposed to sat up a body of Commissioners to co-ordinate the activities of the various power-supply authorities and to bring them into line for the advancement of the national interests, and by bo doing it is recognized that the organization of power production and distribution will result in a national saving of not lass than £100,000,000 per annum : or, putting it in another way which is vary striking, the coal saved would be sufficient to venerate continuously not lass than fifteen million horse-power.

generate cuuuiuuuuoi/j uv 'cm .nun ~,...,. r * The largest hydro-electric system owned by the State is probably that of the Swedish Government, which has three large hydro-electric stations aggregating over 200,000 h.p., supplying power to a lame system for electric smelting, railway electrification, and general industrial supply.

Another of the most notable instances of the development of hydro-electric power by the State ls t 0 De [ oU nd in the Province of Ontario, where the system is managed by a body consisting of three Commissioners. They commenced operations in 1908, and the load has no» atta d a magnitude of 160,000 h.p. The total length of primary transmission circuits is about 1,500 miles, and of

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"•." larv transmission i ircuita about 1,600 miles. Altogether some 113 municipalities are supplied. I lie BUpplv reaches | 11-tnileo ol 'J I.") miles from t 11.- main BOUTCC

Inother notable instance is t,, be found in Tasmania. Originally a c ess was granted to a company authorizing them to undertake the generation and distribution of power in Tasmania:' Inn the company failed, and alter some negotiations the State look over tic works an.l c pleteo They started with lihkmi h.p. of plant, which was augmented by 8,000 h.p. bo liter, and a further 16,000 h.p. ol generating plant is on order. Arrangements are being made lor developing other sources, as the present source is quite upequal to the demand. The magnitude ol the contracts entered into is ~ feature of this undertaking. Due contract alone amounts to 2Ō.IKH1 h.p. for electrometallurgical purposes. ~,„! i, ,s significant thai when the Stale took over the plant from the companj such big demands were nol anticipated. Nor was there any indication that the business smelting would attain such proportions The total contracts already entered into amount to 12,000 h.p., and further contracts amounting to ōh.ikhi h.p. are being negotiated.

New Zealand, no* at the outset of its career as a nation, has a unique opportunity of securing the utmost pos-iblc efficiency lor all time by developing its water-powers on such a scale and by providing for such a wide reaching system of distribution that electric power shall become available to every householder throughout the Dominion, and available at any point where circumstances require the application of power a'c .....:. i . i . i i ,- s.. . i : , t i ■. i ~ . - . , - ...

The functions ol that Department ol State which deals with the generation and distribution of power is one involving great responsibility and wide ranee of knowledge, as n touches every phase of national life m its industrial aspect. It has to generate ami transmit electric power: it has to make contracts ivith local authorities and oilier State Departments and individuals: il has to negotiate terms with industrial organizations outside New Zealand which may be desirous of taking advantage of the supply ol hydro-electric power; it has to finance local authorities to enable them to reticulate then districts; it has to finance power-users to enable them to convert from steam or oilier power to electric power; it has to assist industry by carrying out experiments in industrial processes on a commercial scale, lor the lack of which a great deal of talk concerning industry and science is lacking in cohesion. It may further be required to undertake the manufacture ol a special class of product in the national interest

Electricity i\ Agriculture.

\tcnsion of the Lake Coleridge supply t.. the country districts in Waimairi, Byre, Halswell, Paparua, and Springs has served to demonstrate its convenience, utility, and its effect m lessening the drudgery of farm life and in increasing production, especially so in dairying districts.

Electricity a- a power agent is s,, flexible and adaptable, and its uses therefore bo manifold, that there is scarcely an aspect of human activity to which it cannot be applied, the number of pri to which it i- capable of being applied on farms being about 125.* The supply "I electricity to farms and homesteads has already attained considerable dimensions in some pans of the United States of America il stent "I which is not generally known. \ census made by the Western Power Assoeiationt oi California in 1915 gives the total horse-power of electric tors on (aims at 190.H1 and the estimated figure lor l!i|s is 200,000.

Electric pumps are largely used in the districts menti d for pumping water tor irrigation purposes, wind, accounts for a large proportion of the power used, but after allowing for this there remain- a substantial balance for other purpo

One oi the most remarkable and deplorable movements ol the present day is the drift of the country population into the towns. Various reasons have been advanced to account for this tendency, bul it will I»- admitted that the drudgery associated with farming is one of the mam if not the primary cause. This drudgery will certainly be lessened when a general supply of electricity is available and the farming community has had time to become habituated to its various uses. In fact, the movement will then be in the opposite direction, as the stimulation given to production and the improvements made possible in the conditions of living will result in closer settlement of the country areas. At the same time these districts will be brought i -e closely into touch with the town- by the construction of light railways, made possible by a general supply of electric power.

Electricity and Industry in General

Using the word "industry" in a more restricted sense of manufacture, the importance of a supply oi cheap electricity for manufacturing purposes is one of paramount importance. It places at lie disposal ol the manufacturer a subtle and flexible form of energy which is adaptable to every kind of power, to heating, or to electro-chemical and electro-metallurgical uses. He is able to extend and adjust his business to the growth of demand without being hampered with the mauy rations which a manufacturer has to face if he has to provide a generating plant or increase its capacity.

These advai course well known and appreciated, bul what is not appreciated enough is the importance of a general supply of electricity available for use anywhere in tin- Dominion. At present if a manufacturer wishes to avail himself of a Bupply of electric power he has to [ocate his works in the vicinity of a town where he can get a supply, or he has to consider the question of the coal-supply and the cost ol coal, with the result that the factory is not always placed where it is best suited for the exigencies of the business. Moreover, it is quite certain that a number of industries which might be carried on are neglected altogether owing to the element of power being difficult to procure.

•C. I. Rohrer: 8. B. Review, V, 16, p. 714. *!• H. Davidson: G. K. Review, V, 21, No. 2, p. 130.

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We have abundant evidence «if the effeel of a supply of cheap electrical power in Christchurch and district: within a comparatively short time less than •> 'ear in tart the preliminaries were settled and contracts made for supplying power to every factory within an economical radius of supply from Christchurch. But what is more noticeable is the vvay in which a cheap supply of power has stimulated the industrial mind into activity in many directions, such as the manufacture of caustic soda, hydrochloric acid, calcium carbide, and steel smelting. Another fait worth noting is that for tin- hick of sufficient machine ry in the Government power-house one huge electric-smelting industry which contemplated starting at Christchurch or wherever power was available was losl to the Dominion which is regrettable, as it promised to be the beginning of a large development.

The general distribution of electric power makes possible a much larger use of the electrically propelled battery vehicle which has proved so successful in the Christchurch district, and Ims already been adopted by some of the dairy companies in tins Island for the collection of their cream, with pronounced success.

Wood-pulp Industry.

Tie' wood-pulp industry is one which has assumed large dimensions in Sweden and Canada, and, whilst lores) reserves have been set apart in New Zealand for this purpose and preliminary steps taken to establish the industry, no actual work has been done up to the present. The provision of electric power at suitable points would greatly assist promoters in overcoming the initial difficulties, and would no doubt lead to the establishment of a wood-pulp industry ami of allied industries using wood-pulp in its various forms.

Electro-chemical and Electro-metalluruical I ndustries,

Such industries as employ electricity as a heat agent or chemical agent an l distinguished from the general industrial uses of power by the fad that the cost oi power forms the largest item of expenditure, whereas in general the power expenses are small in proportion to the total expenditure upon production. Such special Industries cannot, for the reason stated, afford to pay the same price as the average obtained lor general industrial purposes. Nevertheless provision has to lie made for such industries, as they have a very important place in national production and development. Such industries range from comparatively small magnitudes, from the power standpoint. to very large dimensions. As a rule they are local in character, depending upon the occurrence or deposit of a mineral, and it is essential that a supply of power should be available wherever the circumstances are such as to favour the establishment of an industry of this kind It will even lie found that in some eases it will be profitable to bring raw material to a convenient locality where an abundance of cheap power is available, and to have it treated there.

Electrification of Main-line Railways.

The provision of an adequate and dependable supply of electric power which shall be available when and as required at such point- as may be desired by the Railway Department is indispensable to them if they an- to be enabled to keep pare with the development of the. country.

It should be clearly understood that railway electrification does not mean the displacement of steam locomotives altogether and at oner, but the gradual substitution of electric haulage for steam haulage on grades and m tunnels when and as the limits ol strain haulage are reached, after making every possible improvement short of entire duplication and extensive regrading.

The strain locomotive is easily the most economical tractor under ordinary railway conditions, but its speed becomes severely limited on grades because there is a limit to the power which can be accommodated on a steam locomotive. The electric locomotive, on the other hand, does not generate the power, Inn merely converts electric power to mechanical power, which it draws from a powerstation situated elsewhere The electric locomotive, being able to draw on a large central generating 3tation for its power, ran when required supply large amounts of power and so maintain higher average speed and increase the rapacity of the line for traffic.

For example, In if be supposed thai the limit under strain haulage has been reached in some portion of the division of tin* Main Trunk line between Tauniaruimi and Taihape that is to say. no more traffic ran be conducted over it. This means that if this constitutes the critical section, the whole Main Trunk system and its tributaries, and to a lesser extent all other lines, are limited by the capacity of the section or division mentioned, il now electric haulage he substituted for steam haulage on this section it would enable possibly twice the amount oi traffic to he conducted over it. and by so doing at once double the traffic capacity of the whole Main Trunk system, and substantially enhance the value of the whole of the Xew Zealand railway system, without any further expenditure than that necessary to electrify the section in question assuming, of course, that there are no other sections with the same or approximately the same limitations. The only alternative to this would involve regrading and reconstruction, which would inevitable introduce longer tunnels, which in themselves would offer an obstacle to an increased traffic, ami at the end it would he found that recourse would have to he had to electrification. The point to he noticed is that a general system of electric-power distribution is necessary in order to enable the Railway Department to deal with any tunnel or section with steep grades as soon as the capacity under steam haulage is reached, and that if a supply of electric power is not available for use when and where required tin 1 development of the country will be retarded and progress hindered.

Suburban-railway Electrification.

The question oi suburban-railways electrification is already an urgent our m some cast',-, as for instance between Wellington and the Hutt. There is no doubt in my mind that had the law permitted

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of it an electric tramway would have been in operation between these two centrt * h>ne ago, ami it is evident that before long the need of a mure frequenl service will become so -oat as to necessitate a removal oi the present legal obstruction, unless a service of the same general charactei is provided by the Railway Department. In course ol time, in all probability, a- a resull of the growth of the population, an electric Bervice on both the road and the railway will become a necessity T of course, no question as to the advantages oi pled ricity where In quenl service is required this is a matter of common knowledge : hut at the aame time, although tin' necessity may be great, it will he found that the actual convers i- postponed until the matter becomes an acute one, unless facilities in the way ot obtaining a supply of power are available. These delays may nol have the -aim direel retarding influence as delays in mam hue electrification, Inn the argument in favour of a provision of electric power \- equally valid.

Agricultural Railways

Another branch ol electric haulage which may possibly tiave an important influence upon the destinies ol New Zealand is the construction of light railways, by which 1 mean railways constructed with grades usually adopted for a good class ol I'm'! or. in other words, a tramway, which shall serve the country in the same way a- a tramway serves a town and it- suburbs, except that farm-produce would he conducted over it as a matter of course. These would not take the pi. I 'main or branch railways, but would act as feeders thereto. They would relieve the roads of heavy traffic, and would promote exchange between town and country and form an important link between producer and consumer. It is possible, of course, that there i- no immediate use for this class ol railway in New Zealand, bul it there is no system of general electric suppl) the matter cannol be put to a test, as it would never pay to provide a separate power-station for each line, hi any case it is quite certain that there is a future for rural railways where the population is closeh Bettled, as we have the example of Belgium before us. and it is onlv a question of time before the necessity for thorn will arise in -New Zealand.

Rlectricity am> Coal-mines.

One would be apt at first to conclude that colliery-owners would have no use for electric |>ower transmitted Iron, elsewhere, vet the contrary is the ease. In my own experience 1 have found the collieries amongst tin* first and most profitable customers of a power-supply undertaking, uotwith standing the fact thai coal from outside the district was used to tire the boilers in the power-generating station. Large collieries in South Wales. Lancashire, Yorkshire, and the Midlands derive their electric-power Bupply from hulk supply services over long transmission distances, and collieries on the north-east coast ol England, having an aggregate output ol Jh.ihmi.ihmi tons ol coal per annum, an entirely dependenl on the north easl coasl power-supply Bystem tor a supply ol electricity, and it is calculated that a saving of 1,000.000 ton- of coal pei annum is effected thereby.*

hj is sometimes assumed that the development oi hydro-electric power is inimical to the development oi coal-mines, and that the saving m coal which is effected by the substitution ol electrii I -team-power means thai so much less will he mined or imported. The contrary is. however, the cast , because any great measure ol economy when effected increase- prosperity, and increased prosperity invariably increases the demand for coal.

It is suggested thai the slack coal now produced will remain unutilized il certain power plant* now using the slack cease burning fuel and take a supply of power from a hydro-electric source. Mv own view is t hat increased production which will result from a cheap and unrestricted supply of i lectricity will put up the demand for slack coal for auxiliary purposes : that there will always he a market for mine-slack that i- normally produced, especially when improved methods of burning the -l.ek are adopted.

A method is now coming into vogue For steam-raising purposes which has long been in use in cement-mills and in the open-hearth process oi steel-making viz., thai of pulverizing the coal and forcing il under the boilers in the form ol a jel by mean- ol a fan. It is quite probable thai this method will be largely used for marine and railway purposes in future, and experiments have been made with a view to adapting the method to the requirements ol both marine engines and steam locomotives. M would seem that the nexf step in the process ol economizing fuel will he m the direction of pulverizing the Black and using it in the wav described.

Slack coal oi very inferior quality is treated on a large scale in Germany for its chemical contents, and also made into briquettes ol a comparatively high calorific value, bul it is doubtful if such processes can be operated with advantage in New Zealand.

The erection ol a power-house in the Huntly district has been suggested as a suitable source of electric power for the Auckland district, the plant being designed to burn the 3lack coal produced in mining the more marketable coals. There are several objections to this course. In the firsl place, if full advantage is to be taken of the cheapness of the slack the output of electricity would be dependenl upon the slack produced, and the development of the power-supply business regulated accordingly. On the other hand, if the power business is to be conducted in such a way as to be free to expand and bo keep pace witb developments unhampered by conditions as to the quantity ol slack produced, the power-station must be Located in such a position thai it can draw upon several coalfields, especially in view of the fad thai the quality of the slack produced varies considerably in calorific value and other properties affecting the method ol burning. My nun experience is thai slack even when obtained from the same scams varies even from week to week in such a way as to interfere with the combustion of the coal and the production of -team. I have known of a power-station located in one coalfield drawing its supplies of coal from another coalfield as a matter oi economy and to facilitate the operation of the plant.

*■■ Interim Report on the Electric-power Supplj in < ireal Britain ": Ministry of Reconstruction, Cd. 8880, p. 27.

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If a power-station were to ho designed with a view to utilizing the slack coal produced in the Huntlv district it is probable that the best ito locate it would be Auckland, so that it could draw supplies from other sources a, the same time. In the second place, the quantity of slack coal now produced in this district over ami above that which is sold is in the neighbourhood of 100,000 tons por annum At a load factor usual in power-supply systems this would only ho sufficien lor a maximum load of 12,000 h.p.. which amount is to,, restricted for developing the country properly and is not even sufficient to supply Auckland if all its requirements am to ho adequately provided for. |„ the third plaoo. thorn would not ho any saving in capital expenditure, whilst the working-expenses would be increased.

Electriciti in Minim- generally.

It has already 1 n indicated under the heading of '■ Electricitj and Coal-mines that collieries are extensive users of electric power derived from hulk supply systems, but the importance of a ,„■„,,ral supply "f power to the minim, industry in general is not commonly appreciated. Mining ot all kinds is at tiio host of a temporary character, and the importance ol being able to obtain electric power on demand, and discontinue the same when not required, can hardly ho overestimated. It would result in tin- opening and working of mines that would not pay under any other conditions, and numberless works of a prospective and experimental character could be undertaken that would never la- entertained undo, present conditions. , ii i :h; i ~.,,■,■■.c,,,,nt o t hi'

The supply of power lor short periods would not cause any difficulty or embarrassment to the power-supply authority, because, firstly, it is presumed that power is available in abundance, and in the second place the power demand over a long period would be fairly even as contracts expire and new contracts are made.

\ large extension of electric smelting of ores of various kinds may be anticipated as the result oi beins able to obtain a supply of electric power in the vicinity of the mines. It is noteworthy that the Tasmanian Government as soon as ,t established its hydro-electric works was overwhelmed with applications for power foi smelting purposes of a kind whirl, had not been previously anticipated; Hid although the works were designed on a liberal scale having regard to ordinary requirements oi the population and of manufactures, they proved too small to satisfy the demand for power, and immediate stops had to be taken to develop other and supplementary sources of power.

General Principles affecting the Generation and Distribution of Power.

The distribution of the load throughout the Island, and consequently the most economical distribution ol generating-stations and location of main transmission-lines, is dependent largely on the location "f the population. The attached map (B 11«) showing tin' distribution of population and consequent probable distribution of load over the Island has I n divided into districts and the probable centres of gravity of the loads of the whole and the various districts have been marked. Ihe centre of gravity of the load over the whole Island is on this basis somewhere in the neighbourhood of Okahukura, on the Main Trunk line, and it would be quit, feasible to supply the whole Island from one central generating-station such as Aratiatia or Arapuni, situated no. far distant Iron, his oint. Tins, however, is not the best method, and has disadvantages compared with the system adopted. . ....... ... , _ ._• _n_ ..» ~

The question is often asked, How far can electricity be transmitted economically at the present ,1 av '. The answer depends a good deal on circumstances.

The maximum distance is limited by the highest voltage which may be employed whic, to-day .rands at 150 000 volts; but this voltage cannot I mployed economically unless the powei to 1« transmitted is'large enough to justify the use ol a certain minimum size of wire, which at this voltage «ill not cause loss by developing what is known as a " corona.

"" UndTrlhe conditions prevailing in the North Island of New Zealand under the scheme outlmed ~ ,i.; ,„ tl,„ ,„nst annroDriate voltage for the primary transmission system is limi.ikki volts.

i„ this report the most appropriate voltage lor me priumi, ..—-™ . ■ ■ u [OOOOO volts the conditions affecting transmission are favourable up to 100 miles, ana ar not serious'up to 150 miles, but above this the difficulties begin to increase. For instance a "ansmZn-line of certain size of wire and spacing will transmit 17,500h.p. . distance oi It», nules, l4OOOhD 150 miles, and 12,900h.p. 200 miles, with the same regulation viz., 6 per cent, in ',, ' ' . that I- to sav the capita] cost of transmission per horse-power transmitted is increased «n JeTcent for an increase in distance of 50 per cent., and is increased by 170 ~,,cent, for an increase in distance of 100 per cent, Add to this the extra cost of maintenance and it will be evident that the cost of, er increases rapidlv with i-reaae of transrmssion distances.

longer distances, but there are limits to the regulations, and excess must be compensated for by machinery, which adds to the cost. ... ■ . .., „ ..... ,u„

,„„„ transmission-lines become „ necess.ty when the nearer sources are '"'"'« '«•■ requirements ot a district, or where Hi, power-stations available are "I such a size that their cost ' lln , „„„1,1 1,, so much greater than the unit-cost from the larger source as to compensate for , ." , cos. i,l transmission* As a general ml, it may be taken that under New / and conditions, Provided -I- ™rket - mailable, it will pay to develop any source yielding 20,000 h.p. on a 50-per-ccnt a. a cost of E2O pe. h.p. or under, as an alternative to obtaining the power by means ..I tmnamission-lme over 130 miles in length from another source. , , ,

coat of water-power developments is apt to be high or small or partial development so tha existing load., by helping to pay the heavy interest and fixed charges during the earliest vears of operation whilst the 1 1 is growing, have an added value over those winch are only prospective am! dependent on development.

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A bunted subdivision ol generating-capacity with interconnected transmission is also preferable to the single gene rating-station, because it gives greater security of supply by ensuring thai no industry i- wholly dependent on one power-station or transmission from one direction for its energy, but may get its supply from a general system which has more than one source of supply. This is particularly desirable in the case of railway electrification and metallurgical ami chemical processes involving hire-' amounts ol power, where the cost and disorganization caused by a stoppage ol supply even tor a -hoit time mav b<- so considerable.

The country has also been divided up into districts, and the load cent re of each considered separately with relation to possible sources of power, and the scheme ol supply shown on the drawing E 116 is submitted a- best suiting all the circumstances.

Estimate or Amount of Powbr to be provided.

In considering the design of a power-supply system it is first of all necessary to determine the total amount of power that will be required. This, of course, bears some relation to the population that will In- served when the power-supply is available, and can be estimated in that way. The Lake Coleridge plant, with its present capacity of 8,000 h.p., is supplying an area with a population ni 100,000 or, roughly, 0-083 h.p. pet unit of population. The demand for power is growing rapidly, and if the plant were available to supply it there is no doubt Inn the horse-power per unit of population would very considerably increase. Owing to the impossibility of securing extra plain, the supply of power for ordinary cooking and heating has had to be severely curtailed, but there is no doubt that tin- demand for power lor these purposes will increase enormously as soon a- we arc in a position to supply and it- value becomes more generally known. During the last financial year applications for 3,500 h.p. tor smelting purposes were refused on account of the insufficiency of the plant at Lake Coleridge. Some of the best-supplied of the smaller towns in the North Island, such as Tauranga, New Plymouth, Hawera, Te Aroha, have from o*l4 to o*o9 h.p. pei inhabitant of area served. The three latter arc working under severe restriction, due to the [imitation as regards the source o( supply and high pine-, and the figures given are in consequence very much less than would result from an unrestricted 3upply at cheaper prices. The power supplied by the Dunedin Corporation from Waipori is equivalent to about 0*125 h.p. per head of the population served, but tin- growth ol the load has been checked by the impossibility of getting any more power from the present source. There is evidently a demand lor more power in Dunedin, as this Department has received application from ~ Dunedin firm for 1,000 h.p. at Christchurch.

In other countries the use of electric power per capita is considerably greater. In a table appearing in the Electrical World of the 11th May, 1918, on the use of water-power for electric powe* generation the following figures are given : Norway. 0*468 per unit of population ; Canada. 0-216 per unit of population ; Tinted States. o*o7l per unit of population. These refer to electricity generated b\ water-power alone ; but, particularly in the United States, there is considerably more generated by steam than by water-power. The proportion has been stated as four to one in favour of steam, so that the consumption per head in the United States would be nearer 0-35. In Canada also the consumption per unit of population would he increased if the Bteam-generating plants were included. In California, which is one of the State- using water-power to a Large extent, the Pacific Gas and Electric Company has a plant capacity of h.p.. equivalent to 0*235 h.p. per inhabitant in the area served by it about oO.ikki square miles. When we consider that there are seven other companies with an additional aggregate plant of "2tit>.sm h.p. operating in almost the same area, and all interconnected, the peak load of the combined systems is about 0*46 h.p. per capita.

The Ontario Power Commission supplies power to an area of about 51,000 square miles m Canada and, although as yet large portions of this area are not reticulated, they have a peak load on their system of 157,048 h.p.. equivalent to aboul 0-136 h.p. per inhabitant. These figures are the mon remarkable when we consider that the average price charged in California and Ontario is more than is the case in the Government undertaking at Lake Coleridge.

The statistics kept by the Inspection of Machinery Department show that, excluding the railways, there are 68,716 h.p. in boilers and 78,513 h.p. in machinery other than that driven by steam in use in the North Island for power purposes. Careful records have been taken over a considerable portion of the Wellington district, and from records of the fuel-consumption, &c., a relation between machinery rating and continuous power-output baa been ascertained. Applying this relation to the recorded power above indicates that ii the existing machinery were connected into a general system it could all be supplied from a common source of 68,100 h.p. capacity, after allowing for losses in transmission, transformation, and distribution.

The scheme outlined below Eor the supply oi the North Island, ii.ikhi square mil»'-; in area. provides for a maximum demand of o'2 h.p. per inhabitant on the present population. During the period of construction, however, the population will in all probability increase by at leasl 2\ per cent. per annum, or 25 per cent, in ten years, which would be aboul the time necessary to completely carry out the proposals suggested. The electrification of the railways as the presenl lines become taxed in the limit ol -team locomotives, and the development of Bpecial metallurgical and chemical industries when cheap power is generally available, may increase this load as the scheme develops. The development in Tasmania is very interesting m showing the way the provision of power brings its l, i;1( j The Great Lake scheme there was -tatted with a plant capacity of 10,000 h.p., and commenced 3U pplv in 1916, but by the end of the same year the Tasmanian Government had entered into contracts for the Bupply of 12,000 h.p., and had under conaideration|other contracts for a further 50 000 h.p., nearly all for Bpecial metallurgical processes which were made possible by the creation of this cheap power-supply. The scheme of generation and transmission herein described does not

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provide lor such large special metallurgical processes as are referred to above, but is confined to providing lor the ordinary lighting, heating, and industrial load, together with limited amounts for railway electrification, electro-chemical and electro-metallurgical industries, Each of the two mam generating sources, however, has a considerable capacity in excess of what it is proposed to develop. and this can be cheaply drawn upon to meet further special demands as they may arkse. Tin- system can also be further extended b) developing other sources, such as Aratiatia Rapids and the Kaituna River, if necessit} arises. The possibility of having considerably increased loads in certain localities has been carefully considered in laying nut the main system of transmission. The scheme submitted herewith has been designed and estimated on the basis ol being able to supply "-2 h.p. per unit to a present-day population of 650,000, or 0-16 h.p. to the prospective population ten years hence. The maximum "demand on the system would he 130,000 h.p.. requiring a plant capacity of 160,000 h.p. in the generating-stations.

Outline of Scheme of Generation and Distribution.

The three main generating-stations Mangahao, Lake Waikaremoana, .a\<\ Arapuni -are āhown by heavy hollow squares, ami it will be noted that the Mangahao power-station is almost ideally situated for the supply of the Wellington district, as it is within a few miles of the centre ol gravity of the load; so also Waikaremoana is very favourably situated for the supply of the East Coast district. Arapuni, or alternately Aratiatia. is rather far south for the si efficient supply ol the Auckland districts, but when we consider that Mangahao is unfortunately rather small for tin- ultimate requirements of Wellington and Taranaki. which will later have to augment their supply from sources Farther north, these Waikato stations are particularly well situated.

To make the arrangement of generating plant ideal we would need to have a source ol 50,000 h.p. in place of the present limited ■of 24,000 at Mangahao, a cheap source of about 'Jo.ixx) h.p. capacity in the Taranaki district, and another of HI.iHHI h.p. in tin' Whangarei district. A search for a suitable and economical source in the Taranaki district of the desired size has proved fruitless. Smaller developments are possible, and at comparatively great expense for the limited amount ol power obtainable, and it is found that the Taranaki district can be more economically and better served by transmission from Arapuni and Mangahao.

The main high-tension lines from these main sources of power are shown on tin- map, and will he seen to follow the most practicable route to serve the load centres, while at the same time they have been laid out with due consideration to the locations in which development is most likely to extend. From tin' substations shown other lines at lower pressure will radiate oiii to other substations, ensuring a supply to tin- whole of the Island. It is proposed that the Department should sell power wholesale to local bodies, who will erect all distribution-lines and operate the retail business within an area of supply surrounding each of the mam Government substations.

Acquisition of Waihi Company's Plant.

The need for having an immediate market available for the power to be generated in these generating-stations is particularly marked in the case of the Waikato Bchemes, whether Arapuni or Aratiatia is developed. Either of these schemes, which have very large ultimate capacity, and which will hurt- become the main source of supply to the Island, involves heavy expenditure in the earlier stages and will take some time to construct. The acquisition of the Waihi Company's plant at Horahora suggests a possibility of obviating this difficulty to some extent. At present this plant is only working to hall' its capacity, and. the Waihi Company's main interest being gold-mining, no greal efforts are made to develop the power business, and so dispose of this surplus power. It is probable that if this plant were taken over by the Departmenl and lines built into Hamilton the balance of power would soon be absorbed then- and in the mining districts on the company's existing l me , The license issued to the company gives the Government the right to take over these works at anv time at valuation. Up to the present the station has been working to only about half its full rated capacity, and further expenditure on headworks would be necessary in order to secure the full rated output of the 6,000 kilowatts now installed with the freedom of interruption which is essential in an ordinary commercial undertaking. It is possible, as shown in interim report of 1916, to augment the supply at Horahora by a developmenl on the Pokaiwhenua River giving 16,000 h.p. in ; ,||. bul is nol recommended. The amount of power to be so obtained would be so small that after supplying the need- ol the balance of the mining districts near the Waihi Company's existing lines. and running lines to Hamilton. Cambridge, and local markets, there would only be a limited amount aboul 7,000 h.p. left to supply Auckland. This amount is not nearly sufficient lor the present reauirements of Auckland, and would onlv emphasize the need of the larger development.

Mangahao I >evelopment.

For the supply to the southern districts the Mangahao River has been selected aa the best available source of power. The power is obtained by diverting the waters of the Mangahao by a tunnel, one mile long, from a dam on the river through the lulls, tirst into a large regulating and storage reservoir formed by damming the Tokoinaru Creek near the old sawmill, and then from this reservoir through a second tunnel, I mile 26 chains long, out on to the hills al the back of Shannon. From the end of tins second tunnel steel pipes, 56 chains long, will carry the water to the power-house at the junction of tin- Mangaore and Mangatangi Creeks, about three miles from Shannon, and give a fall of aboul 900 ft. The flow in the Mangahao River is very variable, and provision has had to be made for storing water to carry over the periods of low Bow which occur periodically The main storage will be in a dam on the Tokomaru near the sawmill, which will be diret bly connected through

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the tunnel with the other main dam on the Mangahao. Further up the Mangahao will be a second dan. not directly c< onected to the tunnel, but which will also store a large quantity of water, and which will, in addition, stop any Bhingle winch is being carried down the river. When working on such a high head storage-capacity is ol ver} greal valu and the extent to which tin- value is to be depreciated by moving Bhingle filling up the reservoirs has beer, very carefulh ■ onsidered. The greater portion of the drainage-area of the Mangahao above the proposed intake is m standing bush, mainly forest reserve, which protects the slopes from detrition; and. although the river is subject to great fluctuations in Bow, our observations show that it carries a comparatively small amount of debris. The difference between the stream and some of the other Wairarapa rivers, particularly the Mangatainoka, which flows in the next valley to the eastward, is very marked li will be noticed at once that where these two rivers emerge from the hills on the Wairarapa side the Mangahao runs in a deep valley, only changing it.- course occasionally as it erodes away one or other of the banks, while the Mangatainoka run.- on a level almost with the surrounding country, and is constantly changing its course in floods. 'I he difference between the two rivers is due in the mam to the fact that the Mangatainoka brings down from the hills more shingle than it can transport across the (latter grade into the Manawatu, while the Mangahao brines down scarcely enough to keep pace with the erosion from its lower reaches, and so ha,- no tendency to build up it,- bed. It is to be expected, however, that there will be some fillingup oi the upper reservoir, but tins will keep the main basin lower down on the Mangahao clear lor a considerable number ol years, whilst the reservoir in the Tokomaru, not being in the main river, will be clear al all time-. By the time any filling-up of reservoirs will have materially depreciated the storage value the Mangahao scheme will have become linked up with the large schemes to the north. so th.it a small reduction in output on that account will not be of serious moment. It is also quite possible to build smaller dams as required higher up the river to prevent shingle reaching even the upper dam as now designed.

\ ery carefuJ observations of the river during the dry .summers in 1916 and 1917 suggest 24,000 h.p. as hem- the maximum plant capacity to install on this scheme, and during very dry summers one of the units, 6,000 h.p., would need to be a spare. The complete installation for delivery on to the main transmission-lines is estimated to cosl Ē438.654. This amount, which is equivalent to ElB'3 per horse-power of plant capacity, though not quite so cheap as for some of the larger developments at Waikaremoana and on the Waikato in generating-cost, is quite a reasonable figure for a development of this Bize : and when, m particular, we consider that it is almost at the centre of gravity of a load which will in a very short time absorb the whole of the power available, the development becomes a particularly good one.

Compared with Coleridge, the capital cost per horse-power to deliver on to the transmission-line, if the complete development is put in, is less than at Coleridge at its present stage, though not quite so cheap as it will be in its ultimate stages. The running-cost per horse-power on account of the larger development will also be cheaper at Mangahao, while the average distance over which the power has to be transmitted is also less. and. though the cosl of transmission per mile will be somewhal greater, their ifi no doubt but that at rates comparable with Coleridge the scheme would be paying all charges in a very short time.

Waikaremoana Development.

For the Easl (nasi districl Lake Waikaremoana is undoubtedly the most suitable source to develop, and from the hydraulic point of view is an exceptionally good development. In normal seasons tin' greater portion of the water of the lake leaks out through numerous underground channels, which unite some distance In-low the lake to form the Waikaretaheke River. During most of the past e lake has also been overflowing directly into the river-channel, bul this only occurs during very wel seasons. The lowesl level of which we have record was in 1915, when the level was down II li. below the overflow mark. With the water at this low level the flow in the river was considerably reduced, and ir is calculated that a minimum flow of nol more than 420 cubic feel per second can be relied on. The most suitable position [or a power-house is on what is known as the Whakamarino Flat, above the junction of the Kahutangaroa and Waikaretaheke. For the first stage of developmenl il is proposed to diverl the Waikaretaheke through a shorl cutting into a small hike called Kaitawa, and from there pipe it to the power-house, 670 ft. below. Tins small lake has verv little storage value, however so that the amount of power to be obtained from here is limited to about 29,000 h.p. To carry out the scheme outlined herein more than that amount of power is required to be drawn from Waikaremoana, so that provision has been made for controlling the flow from the lake to provide for the varying demand during the day. Still more power can be obtained later by extending the pipes from Kaitawa to connect through the diversion tunnel directly to the lake, and by this means, and by sealing as far as possible the leaks as the water lowers, the power may ultimately be increased to provide a plant capacity ol 136,000h.p. This stage is not, however, required for the scheme outlined herein, where the power required from this source is estimated at a plant capacity of Mi. J h.p. The estimated eosl of works necessary to deliver power on to the mam transmission-line is VA 1,369, or £l3-61 per horse-power. This unit-cost is somewhat higher than might otherwise be the case, owing to having to make provision for ultimately still larger developments. It is estimated that in the ultimate economical developmenl to the full plant capacity of 136,000 h.p. this unit-cosl would be reduced to about £9'4 per horse-power, or a total oi £1 ,272,305.

The worst feature of the Waikaremoana scheme is the distance thai has to be traversed through difficult country before getting any load. On the basis ol this report viz., \ h.p. per inhabitant of present population there is only a load of 9,191 h.p. thai is nearer to Waikaremoana than to either of ilf other schemes, whilst on the same basis there is a prospective load on Mangahao station oi

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50,139 h.p. The latter, however, has not a capacity sufficient to supply all fins, so that Waikareinoana and Arapuni have to be increased to each carry a portion of The load to the north-east and mirth-west of Palnierston North. To provide lor all contingencies of the scheme it is proposed to make the Waikaremoana development 10,000 h.p., as above.

Waikato Development,

For the Auckland and Mam Trunk district supply, and for the hulk of the Taranaki supply, two alternative sources have I n selected namely, tin' Arapuni Gorge and the Aratiatia Rapids, on the Uaikato River. Of these two the Arapuni is the better one. provided our investigations prove 'he construction of the big dam required to he practicable. It also has the advantage that it is fortylive miles nearer the main market in Auckland, whilst at the same time it is not much farther from tl iher market in Taranaki. The transmission-line south to Taranaki and the Main Trunk districts does not have to cross the same amount of undeveloped country as from Aratiatia. but will everywhere traverse country that is in process of development along the railway routes. It -to be expected that the loads along the routes of these transmission-lines will develop rapidly as the heavy sections ol railway ther i require electrification, and the settlement increases with the improved conditions. Ihe schen 1 development proposed is to build a dam in the gorge ol the river, raising the water-level about I Hi ft., and diverting the river into an old parallel channel at a higher level. Some t;o chains from the dam this old channel approaches within 8 chains of tl xisting channel, and at an elevation of 165 ft. above it. Here a low weir will he built across the channel, and the water required lor power will be taken through pipe tunnels to a power-house on the present river-bank. From observations made during the low-water Hows in 1915 it is estimated that we could ultimately install a plant capacity of 162,000 h.p. in this stat To till its function in the universal scheme outlined in this report a plant capacity of 96,000 h.p. is required. At this stage the development be--1 'a an exceptionally econ ical one, and tin' cost to supply on to the main transmission-lines a- in the other eases is estimated at E!-il7s.7(>'>. or LltlTtS per horse-power. II the scheme were ultimately extended to its limit it is likely that the whole, plant capacity of 162,000 h.p. might be installed for tl 126,707, or £B-78 per horse-power. Partial developments of this source would be relatively more expensive owing to the cost of the large dam having to lie incurred from the inception, Inn it is estimated riiat even a partial development ol :)7.7,i>i> h.p. can be put iii for £2O per horse-power.

The \ratiatia Rapids also afford a very good source of power, and up to a limit of 66,000 h.p. ran be developed in successive stages without unduly loading tl artier stages of develop tit. The limit ol 66,000 h.p.. however, is not sufficient to fit in with the scheme of distribution herein proposed, and another scheme of development has been adopted. This necessitates building a dam at the head of the rapids which will hark the water right into Lake Taupo drowning out the Huka Falls. With this sche a fall of 175 ft. becomes available, and with the regulation afforded by the storage in Lake Taupo the plant capacity ran be increased to 135,000 h.p. The development will be a fairly ec - mica] one at the ultimate stage, though owing to heavy cost of dam it will be somewhat expensive at earlier stages, r/nless exploration work proves special difficulties to exist at Arapuni it is unlikelv that Aratiatia will prove a better source for generation.

Primary Transmission System.

I'm' mam transmission-lines are shown on drawing F. 116, and will I I the suspension type, carried for the main on ironbark poles, though steel towers will have to be ado],tad in some cases where special construction is necessary. It will be seen that the various lines have ! n duplicated and interconnected in such a way that practically every substation is supplied with alternative supply in case of one line breaking down. The lines have 1 n laid out to serve existing markets in the most economical way, whilst as far as possible at the same time the routes bast calculated to serve prospective railway and special development loads have I n adopted. The scheme provides for a total length of 1,112 miles of main transmission shown on drawing, also for 309 miles of branch mains at lower voltage to supply disconnected mam substations.

The configural I the country is not so suitable for transmission as n is across the Canterbury Plains, where the lines can practically everywhere follow road-. A considerable length of the main lines in the North Island will have to go across country, and provision has had to be made for the extra difficulty of patrol under these conditions. A substantial ty] I construction has i n decided upon, and depots and linemen's quarters ai frequenl intervals have I n allowed for. The total cost of the mam transmission system is estimated a 1 £1,795,240.

Primary Substations.

The main substations connected to the main line «ill transform down the power to 11,000 volts fur distribution to the local substations and surrounding districts. At these stations n will also be possible to cul out sections of line which may develop a fault, and transfer the load to other circuits leading in the same direction, thus adding gTeatly to the flexibility of the system. Mosl oi the stats will have alternative supplies fro: a either direction to give extra security "in case of temporary breakdown of supply on any one circuit. They have been arranged to give supply to the various local authorities and power-users with the least expenditure in the secondary distribution system. The complete main substation equipment is estimated to cost £838,808.

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Secondare Transmission oh Distribution System lnd Substations.

From tin' main substation lines, mostly a. 11,000 volt-, will radiate out to smallei lo« tens ~iil.-iai.un- and pole transformer substations supplying all the local authorities a...1 large powerl.i a few districts where there are isolated loads ..1 some bum at considerable distance from the main substations it «ill 1.,' necessary to run out distribution-lines at :>2.O(X> volts, which can also pped along the route in much the same waj a- the 11,000-volt circuits. These lines «ill supply low-tension substations from which the local authorities' power reticulation «ill begin. In other districts where there 1- a number of fairly large individual power-users close together, lines at lower voltage (3,300 volts) «ill l.u run. supplving such larger power-users direct at this voltage. This work «ill be tinually growing, but u. make available the load of 130,000 I. p. assumed a- the basis ol tin- repori it is estimated 1 -1 E1304 per horse-power of plant capacity; ... a total ..1 £2,086,000.

From this point tin- balance of low-tension reticulation should !>.■ carried "in by the local bodies, or tever body obtains tl..' license t.. supply certain areas, and tl such retail business should be controlled directly by tl..' licensees, except .1. *,, far as the Department may, as mentioned later, advance sums on short-period loans t.. assist smaller licensees ... putting ..1 tl..- rrti.ul.it...it within their areas, or t" assist manufacturers in the installation of their electrical plant. It is proposed to make provision for having a maximum "I' £lOO,OOO available ai any one tin..' for this purpose.

Assistance to Local B :>.

0 ;.l bodies in reticulating their supply area, .....1 s., help to build up the load .... the power-supph svstem .....1 make it the more quickly come ... the profit-earning stage, it is suggested that a fund should be provided I".' .--...■ on short-dated loans t.. local authorities, or alternately to bear the cost of the Department carrying out reticulation work which «.II 1..' taken over by 1n...1 authorias -"".. as it has been put ...to operation.

Capital Expenditure.

The complete estimate to provide for the general scheme of electricity-supply outlined herein then becomes

. ihi even) Q j , , . Waihi Company's Horahora works a further sum dependent on m 8 arranged with that company would have to be added. Throuffl ' this report estimates have I n based on .1 rate not ex. ding 12 per cent ~,„,.-,,. orices With the present ansettled condition of markets and supplies K1- .ossible to estimate exactlv 'tol- c pleted some ahead, but even 1 the present high nrit . ea rema ir, iter the war the balance «-ill still be in favour ol such a scheme oi develo] ~,„„„,, the cos , I]|;lV ,„. „ e ater the cost of all competing powers «.II also be greater m much the sam e proporl and the revenue obtained will be increased in the same proportion. r J» probably take ten years to carry nut ,11 the works included in tl stunate. The initial ,nenditure on headworks would be heavy, but, on the other hand, the plant would only I- installed quire d to meet tl.- growth of the load. The average rate of expenditure on tl..- above assumption would l„. aboul £730,000 per ............

Financial Result.

~ av lv ,,ij| v be inferred that, inasmuch as tl stimated capital expenditure per horse power ~ . no t exceed tl xpenditure per horse-power on the Lake Coleridge undertaking the financial ~, ~...'|l c. satisfactory. The capital charges for interest, depreciation, and sinking fund at ;,;!',. wmamoun, I £847,728 per annum. The working-exp, , 1 £220,000

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per annum, making a total annual expenditure ol £767,728, r liring an average ret u per horse-power per annum of maximum load.

The last years return on the Lake Coleridge expenditure amounted to to pei ~....,. M"'"'' f"' annum, but tins return is influenced adversely by the predommance o the concentrated city load over the more diversified genera] supply. 1. is anticipated thai in he larger scheme, with a bigger ran,, ol distributi »1 a greate, variety in the use of p, r I the consequent ygreate, divers^ of demand in the system, a return oi al least £6 per horse-power can be easily obtained at the sami rate- a- those prevailing in the Christchurch district.

General Remarks upox the Estimates.

Referring to the estimated capita] expenditure of E45-63 per horse-powel ol plan this rate ,- somewhat less than the presenl inclusive expenditure upon the Lake Coleridge undertaking, whirl, is about »i per horse-power, and as the sue. 1 the latter is already assured there is every : fco believe that the larger development will also prove to be a hnancial success 1 1,- signihcai the hgure mav readily be appreciated by comparing it with the cost oi a steam plant. Ihe mentioned is not at all an uncommon one when all expenditure incidental to the installation oi tne steam plant is included.

The significance of the proposed expenditure may also De appreciated in another way I. would require a 1 least 1,000,000 tons of coal per annum to do the work ol the proposed hydro-electric plant if burnt under existing conditions. Coal would therefore be conserved to that extent and li it- value on the average be assessed at El per ton the sum of £1,000,00 t annum .! invested at 21 per cent. would amount in seven years to E7.600.000, a sum which is slightly in excess of the capital required.

B Further, the total capital charges, including interest, sinking fund, and depreciation, of 7J pel ~„.. amount to seven-eighths ol a penny in the pound on the present unimproved value o lan. i,. North Island We know, however, by experience ol the Lake Coleridge undertaking that . t very low .air. for power, which compare favourably with rates charged ... any part ..I the world, sufficient revenue is obtained at an early stage of develo] mto meet all capital charges as well as working-expenses, whilst ai tin- same time values are enhanced, production increased, and expenses of production diminished.

E. Paery, M.1.E.E.,

Chief Electrical Engineer.

Wellington, 26th October, 1918.

0 copl», in.man,» nap . £25

By Authority : Marcos F. Marks, Government Printer, Wellington.—l 9!

Price 61.

U,— IB.

Session II

1918.

NEW ZEALAND

HYDRO-ELECTRIC SCHEMES COMPARED WITH THE GAS INDUSTRY:

BEING \ REPORT BY Mb. JAMES LOWE, A.M.1.C.E., ENGINEER \\l> MANAGER, AUCKLAND GAS COMPANY, TOGETHER WITH REPLY BY Mb, EVAN PARRY, 8.5?.. M.1.E.E., A.M.1.C.E., CHIEF ELECTRICAL ENGINEER, PUBLIC WORKS DEPARTMENT.

Laid en the Table of the Bouse of Representatives by I.rare.

HYDROELECTRIC SCHEMES COMPARED WITH THE GAS INDUSTRY

[ntrqduction by Mr. J. H. Upton, Chairman of Directors.

(1) The question is sometimes asked, What effect will the competition of the hydro-electric schemes of Government bave upon the gas industry '. Tie* answer to thai question involves an examination into the economic soundness of the schemes themselves, and also opens up various large questions of ii political character. But, of course, the fundamental question is. Are these schemes financially and economically sound :'

(2) The directors of the Gas Company have asked Mr. -I. Lowe, engineer and manager of the company, to prepare a report on this important question, and bave thought il well to put it into print for the benefil of tin- shareholders.

(3) Public Works Statemenl Eot 1917 has supplied definite information regarding the Lake Coleridge scheme, upon which Mr. Lowe has been able to base reliable calculations showing the results that may be anticipated from similar enterprises in other parts of New Zealand if the Government tnwisely induced to borrow large sums of money for such works, when the country stands in urgenl need of railways and mails for the opening-up of virgin lands and the promotion of settlement.

W lii considering this report it musl be borne in mind thai Lake Coleridge was selected from among ~11 the hydro-electric schemes submitted for consideration by the Govemmenl as being the one winch p rom .. results from the smallest outlay of capital, and the comparison which Mr. Lowe institutes between the practical working-oul of this scheme and the proposed supply of electricity Erom Arapurn. .i- recommended by the Chief Electrical Engineer, is very instructive, and. so Ear as gas investments are c amed, very reassuring.

(5) The tit's! outstanding fact to which Mr. Lowe's report directs attention is the proof which the official returns afford thai electricity for lighting and powet cannol be supplied to consumers in Auckland at lower rates than are already current in the city, if State enterprises of this description ;in . to be placed on a self-supporting basis. The reason for this is made very plain. While the initial illation of the Arapuni scheme, providing for 30,000 horse-power, would according to tl stimate of the Govemmenl Engii r involve an expenditure of £1,200,000, the chief gain resulting from the substitution of water for steam power would consist in the saving of il xpenditure upon coal used e in v electrical works, which, us Mr. Lowe points out, consists almost entirely of slack that would otherwise become a waste product, but the carriage of which now provides a very substantia] revenue to the Railway Department.

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(6) Experience in other countries has shown that Ilia profitable development ..f hydro-electric schemes in competition with services employing steam-generation depends entirely upon the distance of the source of water-power and the cost of utilizing it, a- compared with the cost of coal at the chief centre to l,a supplied. It is clearly shown thai the competition which gas enterprises in Auckland may anticipate in the future can he in, greater than thai which lie- Auckland Gas Company is now suramin" with a steadily growing business.

(7) Sixtv per cent, of the gas Bold in An. Hand is for cooking, an.! the cost of heating by electricity is about nine ami a hail' times that ..1' gas. In other words, consumers can purchase for less than a halfpenny as much heat in tin' form of gas as would cost them at least hi. if produi a,] In- electricity.

(8) The farts quoted by Mr. Lowe regarding the successful competition of gas against electricity ii Toronto (Canada) and Bergen (Norway) are of especial importance, because the hydro-electric service! which supply these cities are among the most up to date in the world.

Tin' official figures in Mr. Lowe's report, showing that tin' capital outlay on the Lake Coleridge scheme greatly exceeded the estimate thai the estimated cosl was £23'2 per horse-power, whereas the actual cosl Las been E4s*B per borse-power are significant of whal New Zealand may expect in future if similar schemes are authorized. The unfair competition to which private enterprises are exposed, through the exemption of Governmenl and municipal trading concerns from taxation, also demands public attention. In Greal Britain similar enterprises are not subsidized in this way. The entire population of the Dominion is being taxed for the benefit of one section of the community, and public funds are employed under a system that tends to destroy the healthy competition which is necessary in order to secure efficiency. This is a matter that should be strongly urged uponthe attention of the Legislature.

.1. 11. L'PTON.

Chairman of Directors.

Report by Mr. J. Lowe, A.M.1.0.E., Engineer and Manager, Auckland Gas Company.

J.nl' ('oleridge Results.

in The following data regarding Lake Coleridge results is taken from the Public Works Statement, 1017 ■

Year ending

Capital outlay .. .. .. .. .. .. £366,984

Plant capacity.. .. .. .. .. .. 6,000 kw.=B,ooo h.p.

Revenue from sale of current . . . . . . .. . . £20,754

Working-expenses .. .. .. .. .. .. £12,889

Interest at 4 per cent. .. . . .. . . . . . . £13.743

Depreciation al 2 per cent. .. . . . . . . . . £6,078

Total annual cosl . . . . .. . . . . . . £32.710

Maximum load in power-station . . . . . . . . . . i ,366 kw.

Average weekly load factor (per cent.) .. .. .. .. 52-9

Energv issued I' rum power-house (kilowatt-hours) . . . . 14,774,960

Energy sold (kilowatt-hours) .. .. .. .. .. 11.664,961

The price or prices at which current is sold arc not given, but the average price received can be calculated, and is found to be 0-427 d. per unit sold.

(2) (a.) it is important to notice that the capital outlay is largely in excess of the estimates by the Eon K. McKenzie in the reporl of the second reading of the Water-power Bill, Wellington,'l3th October, 1910.

The estimate for the complete works, including transmission-lines, was £232,000 for a plant capacity of LO,OOO horse-power (vide Appendix A attached hereto). The estimated cosl was therefore £23-2 prr horse-power of plant, but the actual expenditure from the Public Works Statement out to £4s*B per horse-power of plant installed.

Tins figure would have been considerably greater had imporl duties been paid on the plant in accordance with the < iustoms tariff.

(3) (hj.) Thai the total annual cost is given as £32,710, made up of working-expenses, interest, and depreciation, while the revenue from sale of current is £20,754, 30 that there is a total loss i year's working of £11,956. The annual reporl does nol indicate now this deficil is met.

(I) Is ii to be charged againsl the revenue of the Dominion, or to be carried Eorward al the debit of profit and loss in the hydro-electric accounts (

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(5)

Government electric Bupply t- Government trading, and the accounts of such an undertaking reated exactl) a- would be the case were the enterprise a privat i<>.

(«) All deficits should ha , arried forward at debit of profit ami loss, to ha wiped .ml by future trading surpluses, if any. After the undertaking is properly started Buch a price should l"> charged for current a- will make the undertaking self-supporting.

(7) ndertaking should also pay all the usual charges that have to be met by private enterprises, tii'luditi" ratps ami taxes.

rates ;inii taxes. (8) (.-.) The average price pel ound by dividing the revenue by the energy sold, is 0>427d. per unit lor the year 1917.

(9) The cost of the nun to the undertaking, calculated by dividing the total annual cost bj the Jo ld, is 0>673d. hj may be said that the outpul could have been increased without any increase in capital ex] liture and operating-costs. This seems to be the case, as the plant is capable of genen [ilowatts, and the maximum load on the power-station during the year was only 1.366 kilowatts.

1,366 kilowatts. (10) The "input assuming tin' load factor in have remained constant at 52-9, might have been increased in the ratio ol I id 'la- energy sold would than have bec.ni.> 16,030,638 kilowatt-h.

MM'IUIII IN 1 CD This amount of current, sold at the average price (0>427d. per unit), would have yielded a revenue 0 f on l y £29 189 so that there would -till have ran,.mail a deficit ol £3,521, and this without am charges for rat - and possibly management. It therefore appears that the prices charged lor current are too low I .ha ami- u t. II the average price charged was M. per unit, ami it the maximum , ; was equal t. - plant, the revenue from the sale ot current would I- £33,397, ami this sum would be sufficient I I the working-expenses, interest, ami depri i2,7H hown in the accounts for 1017.

(12) I the hydro-electric station 1"-,, a private enterprise, paying 1 par cent, dividend on its capital it would have been required to pay income-tax mi £13,743; and it does not Beeni fair thai it should be exempt because it- capital is loan capital ami not share capital, especially a. nisin c petiwhich am subject I» taxation. H thus appears that, even under the most favourable circumstances, an av. I id. per unit would not be sufficient to make tin- undeiipporting if all legitimate charges were met. The Hudro-ekctrie Schemt for Auckland District.

(13) M| . |, ]ITV the Chief Electrical Engineer, proposes for Auckland district a hydro-electric station .„ ijapuni Gorge, .a, the Waikato River, and ha proposes an initial installation oi 30,000 h.p. for an Rxnendit ure of £1,200,000.

(14) H, ~...,- (Public Works Statement, 1911 "0 bjection to this scheme is that, whilst a,, exceptionally economical one lor the full development, the initial cost „, thl . i„ hydraulic works required makes it unduly expensive for partial development of under ~ it can be found that within reasonable time there is a prospective market would be justified on an economical basis.

(15) .... ~ whether there will be a market for 10,000 h.p. within a ~,, ,i,|, • be poi .1 out thai, compared with Lake Coleridge plant, the Arapum scheme '" J ",' : , ...„, ~, ;,, r,„. ,„r,,a1,1,v,1,„,1„,.„, :

(1.1 Thai the hydraulic work, will be unduly expensive for partial development :

2) Thai the chief centre of population to be supplied (Auckland) is about twice as Ear away from kranuni as Lake Coleridge is from Christchurch.

(1G) The cost per horse-power of plant installed at Lake Coleridge has largely exceeded the estimate of £23, and is now actually over £45. CO

The estimate of the Arapuni scheme is tin per horse-power of plant with a development of 3 ~ ~ an d this is probably also an underestimate, while for partial development it is certain that tln> li^ut• will be greatlj i i ded.

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(IS) If the same disparity be assumed between the estimate and the actual cost as was found to be the case with the Lake Coleridge scheme, the cosl per horse-powei of plant installed will be in the neighbourhood of £BO for complete development, and very much more for partial development.

(19) It has been shown thai the average price received per unii sold by the Lake Coleridge powerstation is 0- 127 d., and that this does no! pay expenses : and, further, thai the average price should imt be less than 0-sd. in order to meet working-expenses, interest at I per cent., and depreciation at 2 per cent., without any allowance for rates, taxes, and management.

(20) 11. thru, the Lake Coleridge installation requires an average price of at least 0-sd. per unit sold, ho« much more will the Arapuni scheme require in view of the admittedly greater expenditure required for hydraulic works and the much greater length of the transmission-lines from the principal market '.

(21) If the actual cost exceeds tl stimate in the sain.- ratio as has been found to be the case with the Lake Coleridge plant, the average price per unit in order to make ends meet, without rates, taxes, and management charges, will require to be in the neighbourhood of 0-Bd., and this for a development of 30,000 h.n.

(22) For partial developmenl the price would require to be very much greater, or else there would be a very large annual deficit.

(23) There is a greal difference between the area proposed to lit- supplied from Arapuni and thai already supplied Erora Lake Coleridge, because in the former area there are abundant supplies of lignite or brown coal, and in the latter area there arc no coalfields at all. 'I lie slack- and cheaper varieties of the Waikato coal arc at presenl chiefly used Eor steam-raising and power-production within tlic liist rid.

(24) One might expect to find, therefore, that the cost <>f generating power by steam would be less in the Inrmer district than in the latter, ami this is in lad the case, and it forms an additional circumstance which will militate againsl the success of the Arapuni scheme.

(25) The cost of electric current generated at the steam-driven station of the Auckland City Council, deducted from the accounts for the year ending 31st .March, 1917, is as follows :

Per Unit generated.

Coal .. .. •• .. 11,491

Oil-waste, stores, and water . . . . .. . . I I s 0-0132

Wages .. .- ■■ ■• •■ •• 3.559 0-1050

Repairs and maintenance —

Buildings .. .. .. .. .. ..1,288 0-0380

Engines and boilers . . .. . . 1,456 0-0l:> ( .i

Instruments and tools . . .. . . .. 519 0-0153

Dynamos, exciters, and transformers . . .. .. L 43 0*0042

Accumulators . . .. .. .. .. 60 U'0177 (' OOOITt)

0-5752 {i.O-5592'i

Units generated, 8,119,000; units sold, 6,842,000.

(26) In the event of the City Council deciding to take a bulk supply from the hydro-electric installation) the cost of the first item, and possibly two-thirds of the second item, which includes water, and also hall the wages-cost, could be saved. It is doubtful if there would be any saving in repairs and maintenance charges, because, although these charges could be eliminated on the engines and boilers, this saving would be counterbalanced by additional charges on the transformer plant.

C 27) The savings would therefore amount to 04002 d. per unit. But this saving is less than the average price charged for power by Lake Coleridge Station (0-427 d.), and greatly less than the price which a station at Arapuni would require to charge, operating, as it would do, under less favourable conditions with regard to cost of transmission and cosl of hydraulic works.

(28) No advantage would therefore be obtained by the electricity-consumers m Auckland City, unless the Government should sell the current at a price much below the cost of production and place the deficit on the shoulders of the general body of taxpayers.

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(29) The report of the Government Chief Electrical engineer tnaki - a greal feature of the saving to obtained by displa. ing coa

(30) It i- worthy oi note, however, thai the coal which would be displaced by the hydro-electric listricl i- chiefly -lack, which is produced in the hewing of household coal, and wil] be produced and broughl to the 3urface in any case.

(31) ll may be deplorable thai water should flow through the Arapuni Gorge unharnessed, bul i 1 is equally deplorable thai slack coal, aftei being broughl to the surface, should go to waste. The price \ coal .i] the Waikato mines is from 3s. to -V per ton, and the freighl to Am-Ida in lis 7-. lid. per ton. [f hydro-electric power from Arapuni displaces coal the Railway Department will lose this revenue.

(32) The country generally will lose thrice; first, by the adoption ol an unprofitable scheme; Railway Department ; and third, by turning slack coal into a waste producl.

(33) It is nol clear from the reports of the Chief Electrical Engineer that steam-power for the generation of currenl can be entirely dispens ' tote the report of 20th August, 1917 (Public Works Statement, 1917, page 17) : "Arrangements have been nude with the Christchurch Tramway Board for the use oi the whole of the i i t, amounting to "2.<hhi kilowatts, for stand-by purposes. I hi- provision will enable the Department to dispense with a spare unit al the power-house and to utilize the whole of the planl for revenue-earning purposes. It also enables the Department to maintain a local supply up to 1,000 kilowatts in the event of the breakdown of the transmission\n<!. further on : " A similar arrangemenl is under consideration for the use of Bome Bpare planl belonging to the t hristchurch City Council, and which they are putting in order for stand-by pur]

(34) And in the interim repori of the 19th February, 1917 (Public Works Statement, page 51), with ■ me for the Wellington district, m stated, " In the presenl instance I propose thai the stand-by unit should be a completi The advantage of a steam stand-by set in this scheme is tha I only does it serve the purpose of a spare unit, bul ii also provides means oi tiding shorl periods of exceptional or .tlinniiN.il low available water to b< to .i larger extent. The additional cosl of the steam unil over water-power is nol great, and the cosl of rum quenl occasions would be a negligible proportion of the total operating-cost, whilst dditional security and value conferred on the water-powei planl is oul of all proportion to the add'-'

(35) In view of these quotatii to be a reasonable conclusion thai in order to make reasonably smv of continuity of supply we musl either have two transmission-lines, each capable of carrying the whole load, laid by different routes to the city, so thai m case oi either the other can be used, or, alternatively, a complete steam-generating plant in the city.

(36) Duplication of the transmission-lines would add enormously to the cosl of the scheme, and perhaps also cosl more than a -team planl ; therefore it is likely thai a steam planl capable of supplyould have to be maintained d-by, II this is so there would be no Baving of capita] expenditure at the city power-station, bul quite the reverse, as there would be required both im-generating plant and a plant for breaking down the high-tension currenl from the hydro-electric station to the ordii m of supply.

(37) Tin- repori ol the 19th February. 1917 (Public Works Statement, page 19), lays down some interesting conditions, to which no exception can be taken : f| -'All ' ■ capital cosl of headworks, power-station, and plant, including everything up to the point ol transmission, should not exceed £2O per horse-power en accounl is taken of the cost of transmission, the extent of the capital expenditure will tend to swamp the advantages to be derived from sub(2.) " As regards the area to be supplied, their Le an economic limit to the area over which a given amount of power can be distributed."

(38) In the New Zealand Journal of Sciena and Technology, January, 1918, page 60, Mr. Parry states, Che capita] coal of an electric-power-supply Bvstem, including generating plant, transmission, distribution, and transformation, is about £4O per horse power ol generating plant when fully developed."

D.-lB

6

It appears, therefore, that the coat of the hydro-electric plant at Arapuni should ūo1 cost more than £2O per horse-power of plant if the scheme is to be economically successful : also thai the expenditure on transmission-lines should for the same reason not exc 1 £2O per horse-power ol plant. 'Hie aggregate expenditure should therefore not exc I tin per horee-power of plant.

(39) The Lake Coleridge plan! has already cost £45 per horse-powei "I plant installed, or approximately double the estimated cost of £23, and it appears to be necessary to provide a stand-by steam plant in Christchurch.

(Hi) The proposed Arapuni hydraulic works are admittedly more expensive than those at Lake Coleridge, and the transmission-lines required will be at least twice a,- long. It will also he necessary cither to duplicate the transmission-lines or to provide a stand-by steam plant in Auckland.

(41) in view of these considerations, can it be expected that the estimated (cist of the Arapuni scheme £4O per horse-power of plant installed -wilt be realized '.

(42) 1., it tint more probable that the estimates will be largely exceeded, perhaps doubled, as ha- been the ease with the Lake Coleridge scheme '

(43) Even if the estimate of E4O should be realized, it has been shown that current cannot lie supplied in Auckland as cheap as the cost of generating by steam in the City Council electric station.

Some Interesting Comparisons.

The question now to be considered is. What effect will the Arapuni hydro-electric scheme, il carried out. have upon the business of the Auckland Gas Company (Limited).

This question has been already answered, as it has been shown that the City Council Klectric Station is at present general ing current cheaper than it can be supplied from Arapuni, except the hydroelectric current be supplied at a loss.

The capital expenditure of the Auckland City Council Electricity Department was L' 335,411 18s. at 31st March, I'M T. and of this amount about one-third, or £109,927 55., had been expended in machinery, transformers, &c. his not clear that there could be any saving in future expenditure under this bead. Even if steam-engines and boilers were not required, transformers would have to be provided, and it docs not appear that engines and boilers can be dispensed with except the transmis-sion-line be duplicated. Any such duplication would certainly add largely to the cost per horsepower of plant installed, and would have to be charged for in the price of current delivered to the Auckland power-station.

The following is an analysis of the costs per unit generated and sold by tin' City Council Electricity Department Eor the year ending March, l!* 17 :

Price per Unit generated.

Price per Unit sold.

Generation oi electricity — d. d. d. d.

Coal .. .. .. .. ■■ 0-3389 0-403]

Oil-waste, stores, and water .. .. 0-0132 0-0157

Wages, generating-station .. .. 0-1050 0-1249 O-4571 0-5437

Repairs ami maintenance ---

Buildings .. .. .. .- 0-0380 0-0452

Engines and boilers .. .. .. 0-0429 0-0511

[nstruments and tools .. .. .. 0-0153 0-0182

Dynamos, exciters, transformers .. . . 0-0042 0-0050

accumulators .. .. .. .. 0-00177 0-0021 O-10217 0-1216

Distribution of electricity-

repairs, and maintenance oi mains

and meters . . .. .. .. 0-0749 0-0891

Public lamps .. .. .. -. 0-0185 0-0220

1 II UJ Ll_ 111 II I| ' - Management—

Salaries and office charges . . .. 0-0721 0-0857

Special charges .. .. .. .. 0-0576 0-0684

Bad debts .. .. .. .. 0-0058 0-00688

Interest on loans .. .. .. 0-42384 0-5040

Depreciation .. .. .. .. 0-2618 0-31137

Sinking funds .. .. .. .. 0-06196 0-0736S

Average cost .. .. .. 1-2958 {% 15357) 1-82643

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These figures are exceptionally good, and are the result oi the fad that the power load during the day is about equal to the lighting load in the evening.

Currenl is sold by the City Council For power purposes at various rates below the average cosl of production, the lowest published rate bei unil For the first units per quarter, and Id. per unil for all units in excess of this quantity per quarter.

The price-reductions to power-users are based od the consideration that they take the current principally in the daytime, when the generating plant and mains would otherwise be lying idle, and that, consequently, anyth om the power-user more than the costs ol genei and dislribution is profit.

The lighting-consumer is saddled with the whole charges, including interesl on capital expenditure ■ ■; consumers.

At the presenl time 60 per cent, of th< ing, and the chiel cooking load oci .. 5 p.m. and 7 ■ ■ time and breakfast-time is con- ■ atli exci eded by the demand al dinner-time. At the latter time gas is required bit feet per dour. This quantity oi gas represents a delivery of 124,000,000 British heat units per hour from the gasworks, and to obtain the sam.' amount of heat From electricity 18,342 h.p. would be required.

Tins heat is required through the greater part of the year during the chief lighting-hours on ~1, of the load, as an electrician would express it. Consequently, it electricity were employed for tliis |mm: nt would have to be generating, and the distributing mains would require to be capable of carrying, this-amount ol currenl in addition to the current required for lighl ing. The load factor would thus be reduced, and all charges per unil sold increased, and electricity For ■ :ing would require to be sold al a price which would include its due proportion of all charges.

sideration of these points makes it clear that it would be ruinous for an electric station to preponderance of it- output for cooking purposes al prices approaching power rates. In fact, it looks as though the price per unit for such business should approximate to the price charged for lighting. It would certainlv have to be considerably more price already given.

aa one unit of electricity has a heating-value equal to 3,420 therms., il is aboul equal in Keating-power to seven cubic feel of gas ; but Beven cubic feel of gas al Bs. costs 0'42d., in comparison with sid. per unit, the flal rate, and a possible average of, say, td.(?) for lighting under the maximum demand system of Auckland City Council Electricity Department.

The City of Toronto, Canada, is supplied by current from the hydro-electric installation at Niagara, .. Toronto Consumers' Company is therefore in competition with electricity Erom v Nevertheless the Gas ' by leaps and bout Is, and doubled its .utout between 190?

mi pin iM-iui'ni i-" ■ The president of the company, in moving the adoption of the report in 1914, said, inti r alia, " When ~ ffaa borne in mind that the amounl of gas put <mt during the past war was nearly double the quantity gold gix large increase in the company's trunk mains would be apparent. id that the number of meters installed had just about touched the 100,000 mark. iking an average of five people to a family, it would seem that nearly all Toronto was using gas."

\| r |; Schieldrop of Bergen, Norway, stated in 191 I. "" In Norway there is keen competition with ■ ..I.- ago t In' Bergen < rasworks ■ ■ lighting purposes; : sale is probably less than 5 per cent. ~,, cannot be given with any certainty, because there are uo separate meters for ligl I purposes, bul. '.■ ''"' re ducl ion in the supply ol for light Gas fo ind heating lias more than compensated for the loss, Tin' increase in sa j pa ] : real as since the competition with electricity *>■! in. The incn IMi|( | ( . ].,,., v ,.. ir over tin- preceding year for tip' whole ol Norwai was la per cent. For Bergen alone for the last three years the annual increase in gas 3old was between 2.", pei cent, and '■'>'.'> peT cent., and jjjjg ; M that the population within the district of supply during tin- period ary. When th irks al Bergen were put in operation late in 1908 everyI ( ,n too large a -''air; Imi three years lain- new Bettings of vertical ret -.-.-..r M'H I) Eour more setting Electrical pner „ v , us, and the pi are very eager to -'II it. We have to meet this uphill work for the electric | pie to compete with gas, for the Bimple reason of the qu mtity of heat in a unit <il t 0 the price to be paid in eithi r instance. Most people, when talking aboul neral way, will say," There we have a waterfall. It is simply a question of puttings turbine t(i | t ~ pulated place, and I ip iome apparatus so as to gel Vnd they will add. 'Thus you have heal and lighl practically for nothing.' 1; j V n ot the way il will turn out. as you gentlemen know. To get il nergy transmitted i;,n exceedingly expensive thing itself. Therefore, when every consideration is taken into account, iund ,| i;lt ~),., -. ng. On ill- contrary, when electii ity ha- to com M ,, f ue ] lt is driven to the wall. This doea 00l howevei prevenl one projeel after another comii v - ■ ■ t,|rlM 1" ulgated in such a way that they claim In he able [red per cent, ol a- th it: out of it thai it can be done very economically, and thai De produced on a very paying Imm-. 01 course, a- soon a- these promises are tested they fall an d then we are enabled to laugh at them. '

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Appendix A.

Extraol from Lyttettan Times, L4th October, 1910.)

From a Report of the Second Reading oj the Water-power Bill, Wellington, 13th October, 1910. r . ...'.. , , i i .i.i.i ...... i\. in.,,... .

Re Lake Coleridge: The Hon. R. McKenzie said be had worked the cost out as follows :-

Headworks .. .. .. 80,000

£ Store 200

fools .. .. ■■ •■ 1,000

Generators (lour). 2,000-kilowatl .. 11. 150

Freighl .. .. ■■ ■■ 6,655

Exciters .. .. .. .. 618

Cartage 2,258

Transformers .. .. .. 8, 152

Switchboards and lighting arrestors .. 1 ,900

Erection .. .. ■■ ■■ 1,810

Turbines (four), each 2,500 h.p. .. L 5 000

Poles .. .. .. ..25,200

Line-duplication, Tit miles . . . . 28.500

Cranes .. .. .. . . 1,500

(looling system .. .. .. 140

[nsulators .. .. 13, ! 10

Lubricat ing system . . .. .. 260

Substations .. .. ..19 ihki

Emergencies .. .. .. 850

Power-house building .. : >-6' ; < >

Foundations . . . . . . 7,584

Total .. .. . £231,997

Stall' bouses .. .. .. 2 : 100

Workshop .. .. .. .. 200 i

IYDRO-ELECTRIC SCHEMES COMPARED WITH THE GAS [NDTJSTRY.

Reply by Mr. Evan Parry, B.Sc, M.1.E.E., A.M.1.C.E., to the foregoing Report by Mr. James Lowe. A.M.1.C.E., Engineer and Manager, Auckland Gas Company, and Introduction by the (lhairman, Mr. J. 11. Upton.

Introductory and General.

This is a report the purpose of which, according to the introduction by the chairman of the Auckland Gas Company, is to ascertain "What effect will the competition of the hydro-electric Bchemes the Government bave upon the gas industry 1 " This is capable of a direct and simple answer. Instead, however, of taking the direct course the directors have preferred the indirect course involving "an examination into the economic soundness" of the Government schemes, apparently with the object of discrediting State enterprises. That this investigation is not at all necessary in order to satisfy inquiry is evident on reading the report, a- ample evidence is adduced by Mr. Lowe to prove that so far from suffering from competition with electricity the gas industry has prospered even in Toronto, where it is in competition (so-called) with a State hydro : electric-powe*r undertaking operat ing on a colossal scale. However, it is customary to adopt these tactics in similar circumstances. a notable recent instance being the attempts made to discredit the Hydro-electric Commission of Ontario by the financial interests <,f \\ ir I'nited State.-.

The effect of these tactics in the present instance ia to place the gas interests in a few towns in ■ to the national interests generally and to the country districts in particular. The object of the State is to place a flexible and adaptable form of power at the command of the lividual, the farming community, and industry generally, wherever situated, with a view to economizing labour and increasing production, and generally raising the standard of efficiency throughout be Mate. The effect of such a policy is not to discourage out to encourage and stimulate private enlernnse.

I have elsewhere expressed the opinion that in town-, where a gas-supply is already available the gas and electricity undertakings should be co-ordinated and managed by the same authority, and if the gas companies were purchased by the local authorities, with or without State aid, n would remove the apprehension which now exists amongsl gas companies and their shareholders at the approach of hydro-elect ric power.

In his report Mr. Lowe has committed the error of comparing an estimate of the capital outlay required to provide a supply of electricity to Christchurch only with an actual outlay which includes a distribution throughout an area of about 300 square miles, and other things not included in the Hon. Mr. McKenzie's estimate. This error vitiates the whole report.

Tin 1 expenditure upon the Lake Coleridge works, transmission, distribution, substations, and a certain amount "I local reticulation, amounts to about £45 per horse-power. This is a very moderate figure, and will and ahould be exceeded as tie' area of supply is extended, much to the benefit of the community and the financial advantage of the undertaking itself. I have elsewhere mentioned £4O per horse-power as attainable, bul this is for a completed scheme and not for a partially developed scheme, and covets the expenditure on purely bulk supply business only.

Mr. Lowe argues that if the expenditure on the Lake Coleridge undertaking has reached Ē45 as compared with an estimate oi £23, then the estimate ot Ē40 per horse-power for a scheme for the Auckland Province must cost in the neighbour] doi double this, or £BO per horse-power.

In the firsl place, the comparison with Lake Coleridge is an erroneous one, and, even if it were not, the argumenl based on it is fallacious; and. further, even it the expenditure should reai per horse-power the figure is quite a normal "in'.

I Bubraii a detailed reply to both Mr. Lowe's report and Mr. Upton's introduction, taken seriatim. I have made every effort as far as time permits to deal fully with even poinl raised, and 1 have made every effort to treat each argumenl fairly,

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9

In Reply to tii. Chairman's Introductory Remarks to Mr. Lowe's Report.

Paragraphs 1 and 2.

The question is asked. " What effect will the competition of the hydro-electric -.hemes ~1 the Government have upon tie gas industry?" the answer to which " involves an examination into the . i.iiomi. soundness of the -.heme- themselves. , , • ~ . 11....:.:. I. I o . i.,1

The answer to this question is direct and Bimple - viz.. that gas and electricity each has it- Bpecial tn, nun. and that m it- own special field of usefulness there is no competition between the two. Where, however, the gas industry has had the field to its,.lf the introduction of electricity has necessi-iti-d ;, readjustment of us business, hut in every ease much to its advantage,

In-tead ol answering the question in a direct and simple manner, Mr. Lowe was instructed to prepare a report which involved "an examination of the economic soundness of the Government es," and the answer to the question "f " What effect will the competition of the hydro-electric schemes ol the Government have upon the gas industry ' " is sought by propounding another ques Are these Bchemes linatieiallv and economically sound '

Th.' motive is ob\ i..u~ viz.. to discredit Government enterprise ; ami I notice thai under similar circumstances the tactics are always tin- same. Recently the financial papers ..f the world affected to be scandalized at the business methods ..f the Hydro-electric ('. .mini-5i..11 ..f th.- State ..f Ontario. I'll., agitation originated in the New York financial papers, lint why should financial houses m New York take such an interest in the conduct of a Stat.' department it. Canada ' Th.- reason is simple. It ha- found that power could In- obtained in the Province of Ontario much cheaper than in the State ..I Ne« York, and. moreover, the provincial scheme «as so comprehensive as to render a supply of electricity generally available in country districts as well as the towns. The result of this was that the citizens of X.-» York State and other states began to agitate for a similar system conducted by th,- State on smnlar hues: heme the alarm of the New York financiers. And instead ol reforming their own methods in order to enable the citizen of the united States to obtain electricitj at the same price a- the citizen ol Ontario, they adopted the method of trying to discredit the Hydro-electric (iommissioners >.l tintario.

Paragraph 'i.

Mr Upton has arrived at the conclusion that the Government would be unwise to embarK upon a,iv more hv.lro eleetne schemes, and that the money would l.e better spent on railways and loads. He bases hi, conclusion upon 'reliable" calculations by Mr Lowe, based upon an analysis ..I the Lake Coleridge Heme- a- disclosed in the Public Work- Statement for liilT. It will be seen m my reply to Mr. Lowe's report that hi- premises are unsound, and even if sound the deductions therefrom are quite illogical.

\. regards expenditure upon railways and roads: The existing railways cannot be worked to theii mil advantage unless certain critical seen,.,,- are electrified; whilst the question of road- is ~ question of the nature of the settlement. It is very little use openmg up backblock sections ..tnlst' at the same tit,,,- the population is drifting int.. the towns. It is claimed that a supply of le. tricity to the settler will provide him with such amenities as will induce Inn, t" stay on the land, ,„1 will ease the burden of the housewife and contribute to an increased production. It is claimed hat production in a certain district in Canterbury has increased considerably sine.- the farmer has en -applied with electricity, in spite ol the fact that the bous are at the war It can be confidently ■. d that electricity on the farm wall conduce t.. closer settlement, and closer settlement demands .nil illstilies .'...id load- ..... . .

Inother aspect of the question is that not only does a general supply ol electricity sin are production and attract new industries, but it also economizes coal to such an extent that the whole expenditure i- recoverable in a lew years.

Paragraph t.

In tins paragraph Mr Upton points out that the Lake Coleridge scheme was selected for develop men , because It promised the best result- lor the smallest outlay : and that, as any other -ehe will necessarily cost more, especiallj ,1 Mr. Lowe's calculations are correct, in consequence the prospect- ... i :1 , ,- mm investments are concerned are v.-n reassuring.

The cost ~l developing Lake Coleridge as a power source is low in nrsr cosi uonsiuermg in, , ~,., -| eve l op ed, but at the same lime the eost is liearlv twiee SS IUUeI, per hoi'se-powe, , v | |,. „, , the North Island -.heme- When lllllv developed. So that the prospeet IS not at ~11 "reassuring as fa. , nt. are concerned, if the view that cheap electricity is detr, „„,„„| to tie i« I orrect one. My view is that gas and electricity react ~, ~ the „,,„.,, „,„i that the prospects a- regards the gas industn are just a- reassuring in spite of and probably ... the result ..I cheap electricity.

Paragraph -Ī.

, thi paragraph it is i id out that -the first outstanding fact disclosed by Mr. Lowe's report ■ ,|„. ,„0,,l ihll eleellie.tV foi lighting a.ld power eailtiot be supplied to eo,,s|„, ie,S 1,1 Auckland at h.w.'r rate- than a,- alrea.lv current in the city .( the bulk supply business as undertaken bj the , "J,,,,,, ,- ..laccd ..,, a self-supporting basis." He also , Is out that the Auckland City I oun. .1 „. ..,„., -,,„,,, Iron, -la, k coal, which ,- a waste product at the mine.

* 1„ answer ... this : Mr. I vis very far indeed from proving the above contention, but in any ~,.,. the supply „1 electricity in Auckland ,s comparatively restricted. There arc townships and ',. L ~„ i.ie'ihe present limits «hah have „„ supply of electricity, and the Auckland Prox ' "fi ~'„.,,, to men, am sidcratior, a. all eithe. in M, Lowes report o, Mr. I pton > «action Whilst he .ranted ,ha, City of Auckland can very well provide for its nls

2- I), lb

in

D.—IB

~ satisfactory manner, it doe,- nol he'p to solve the Ficiene\ The tir-i bjeel is and should be to place an unrestricted suppb ol p. wci al the coi and of the individual iua-crr situated, but more particularly in country districts where a supply of electricity is otherwise inable, an.l he principle that the more isolated a person i- the mure is he m need of , | anical aid The expenditure ol £1,200,000, quoted bv Mi. Cpton, is an estimate win. hj i overs adworks and power plant, with transmission to Auckland and other centres in the province, ogether with a moderate amounl of distribution-lines in the province generally. The phiel gain from iliis expenditure i> i »t. as Mr. Upton state- the saving of expenditure upon coal slack in the City Kleetricitv Work- at the national one resulting from placing power at tl maud ol the dividual, thereb- increasing the national efficiency and stimulating production 'ompared with this, the question as to whether Auckland City Council finds it advantageous m i to take a bulk suoolv from the Governmenl is a negligible issue.

As to the burning of the slack, there are more ways than one of dealing with -lack, particularly if a supply of electric power is available.

It is also certain that as a duvet result of increased national efficiency the demand for coal will increase for purposes other than the production of power. And as regards the revenue 10.-t to the Railway Department. I question whether the railing ol slack coal i- profitable to the Deparl nt or Lvorth the wear-and-tear on the trucks and road-bed. I think the track- and railway service generally cjld he put to a Letter use in railing an increased quantity of agricultural produce and industrial oducts which would resull from a generally diffused supply of plectricity throughoul the province

Paragraph f>.

In tin.- paragraph it is claimed thai the profitable developmenl of hydro-electric schemes in competition with services employing -team generation depends entirely upon the distance of the source ol water-power and tin- cost of utilizing it. a- cm pa red with the cosl of coal at the chiel centre hi be an i n 11 ■■cd

So far from tins being true as regards hydro-electric power, ii is not even true as regards electric power derived from fuel plant-. Were this true a colliery could not afford to take ;l supply from an electric bulk-supply undertaking with long transmission-lines, yel that is a eon n experience. Lar-e numbers of verv large collieries in Smith Wales take a supply in bulk from a power-supply authority The same is the case in Lancashire and Yorkshire, which I know from persona I experience . and it is stated in the Reporl of the Coal Conservation Sub-committee of the Reconstruction Committee oi Great Britain that coal-mines having together an output of 20,000,000 tons per annum obtain a supply of electricitv from the North-east Coasl Power System. In every case the power is generated by means of a fuel plant ; and were it true that profitable development depends on the single factor ol distance, then it is a foregone conclusion that a colliery could not afford to take a supply of electricity from a far-distant coal-burning power-station.

In the same paragraph Mr. Upton expresses himself a,- satisfied thai the competition which ga* enterprises in Auckland may anticipate m the future ran be no greater than that which Auckland fias Company is now sustaining with a steadily growing business

1 quite agree with this view : hut it does not require an investigal ion into " the economic soundness of the Governmenl schemes "" to prove this. The prool lie- in the nature of the two agencies, u r as and electricity, together with a recognition of the special functions of each. And. as I have aaid elsewhere. M far from the two services heme run bv separate authorities, they should be conducted and inn by the line authority in towns where both gas and electricity are available.

Paragraph 7.

In this paragraph we learn that 60 per cent, of the gas sold in Auckland is for cooking ; it is also stated that the cost <>f heating by electricity is aboul nine and a hall time- thai of gas. <;a> is pre-eminently a heating-agent, and its advantages in tin- respeel musl lie conceded . and although this advantage may nol be so greal as it i- claimed above, due to a difference in efficiency, it is still 30 greal a, to be able i" claim the field of heating a- its own

Paragraph V

Attention is called in this paragraph to some facts quoted by Mr. Lowe in Ins reporl regarding the successful competition of mis against electricity in Toronto (Canada) and Bergen (Norway), where it ia claimed the electric services which supply these cities are amongsl the mosl up to date in the world. This confirms the view already expressed by me thai iīu* *ii« reeds on it- merits a- a heating-agent, and thai in order to reassure the shareholders "I tic lias i umpam regarding the effecl ol the Government schemes upon the gas industry in the few towns in which it is available it is nol at all necessarv to try and discredit electric-power supply as a State enterprise, hj is worth nothing that in the case ill' Toronto, quoted above, the gas interesl is in so-called competition with a State enterprise viz.. the Hvdro-electric Commissioners ol the Province "I Ontario,

Paragraph 9.

Here Mr. Upton quotes Mr. Lowe to prove thai the capita! outlay upon the Lake Coleridge undertaking greatly exceeded the estimate viz., E45-8 per horse-power, againsl £23*2 pei horsepower. This is held to he significanl ol what New /calami may ex peel in the Future if similar schemes are authorized.

The above comparison is entirely fallacious, as the estimate covers only the outlai necessarv to deliver a certain amounl of power in Christchureh, and as such ii 1- a fan estimate The actual outlav

11

I). 1b

wide svstem ol distribution, and New Zealand is to be congratulated if a general distribution throughout New Zealand ran be effected at the same cosl per horse power.

11 ls claimed in the same paragraph thai a general supply of electricity made available to all, >ei situated, exposes private enterprise to unfair Jeom petition. But, il w excepl a few gas ndertakinga in the principal towns, wh em eds and is loudlv clamouring for is a ■neral and abundanl supplj ol cheap el bu in the case of the gas companies .Mr. Lowe adduced e> idence to prove thai the gas interests survive and flourish even in Toronto, where the ipply of electricit) i- obtained from the Star.- in hulk.

l- v Rkpu ru \ Kepori m James Lowk. A.M.i.C.E wi> Manauek, Auckland Uah Company (Limited).

Paragraph I

_ I'lli- paragraph contains a sui an oi the Lai I iceount* for the yeai ending 31*1 March, lyn taken From the Public Works Statemenl . and, as the resull foi a second vear ..I working, would be regarded as inosl satisfactory by any power-supplj authority in the world.

Paragraph* "

In these paragraphs comparison i- mad.' between tin' actual expenditure incurred on the Lake Coleridge works up to the end "1 the financial year in March. 1917. which is al the rate ol £4s*B per horse-power ol plant installed, with an estimate ol E23-2 per horse-power made by the Hon I; McKenzie during the second reading ol the Watei power Bill in October, 1910.

The Hon II McKenzie's estimate, a- is evidenl on the face ol it, provides onl) for headworks, • house, transmission to Christehurch, and a substation in Christchurch, bul does nol provide for a general distribution system to enable i supph i" !»■ given to tin' surrounding di I

I he expenditure lor the year ending 31st March. 1917. covers nol only a plant of K.txio kilowatts, nit headworks and buildings for double this capacity, as menti lin the annual reporl ;it includes si during construction .il includes also the cost ol a distribul system in an area of about (X) square miles, which supplies, in addition to the Chi I itv Council, the following local ithorities, directly or indirectly : the boroughs ol Riccarton, Sprevdon, Woolston, New Brighton, tier, Lyttelton, and Kaiapoi; the counties of Halswell, Waimairi, Springs, Paparua, Heathcote, ■ ■ ristehureh Tramway Board. Cashmere Hills Sanatorium. Suunvside Asylum I' Templeton th< Christchurch Meat Cninp.n i. tin Canterbury Meat Company at Belfast. Borthwiek's Freezing-works at Belfast, tin North Canterbury Farmers' Freezing-work» al Kaiapoi. . number of flour-mills and dairy companies The total also includes i-xpenditure upon local reticulations m districts where tli<- local authorities arc unable t«- undertake tin' work themselves

Briefly, Mr. Lowe compares the expenditure on a partial development of headworks, an extended ol distribution, and a measure of [oca! reticulation with an estihiate for a full development ol headworks, no distribution, and no reticul

[u spite ol tins, the figure ol t45-fc< per horse-powei nl plant installed is well within our estimates al supply system, having regard t" tin- limited scale upon which we are working, The figure, I will inevitably !"■ exceeded with very great advantage u> the cbrrlrrranity when the .i- i ■•■ generally extended so as 1 d ••■ ttler in 'lm- area ol BUpply, ultimate objet tof thi , . disi ussion in the House Hi.it .it the the Hon. 11. McKenzie submitted the estimate referred to the immediate objecl seems to have to supply tin' principal towns in the same way as Dunedin is now supplied, and the expenditure bv the Dunedin Corporation on headworks, [lower plant, transmission-lines, am! substation appi'ared to have been adopted as a basis -.1 estimate. It iscleai ! ■ ribution throughout the country districts was not then in contemplation. The i atimutc mi I-mil in Iby the Hon. I!. McKenzie i> a verv fair one, having regard to the extent "I the work covered bv the estimate.

Paragraph* 3, I ■>. and 6.

In these paragraphs after quoting the deficil on the Lake Coleridgi working ol £11,956 for the 31s1 March, 1917, it is remarked thai the annual reporl does nol indicate how the deficil is met, and indicates for our benefil how the accounts should be kepi and how to charge For the power supplied

A reply to these questions is to be found I rence to Table 5, printed in the Public Works Statemenl for 1917, which appears to have escaped Mr. Lowe - □

hi answer to paragraphs 3 and I : The annual deficil is carried forward to the debit -if profil and »88 m the hydro-electri accounts (see pages 13 and 1 I ol the Public Works Statement, 1917).

In answer to paragraph 5 The accounts are treated on a strictly business basis, on sound .nid on lines approved by Parliamenl

In answer to parargaph 6 The intention is thai the deficits vitable in il arly years of the indertaking shall be paid oul "l future surpluses, after providing for depreciation, sinking fund, and ■ limitt d reserve ; and an A< i lasl session authorizing the procedure.

\- regards the suggestion thai aftei the undertaking is properly Btarted such a price Bhould be charged for currenl as will make the undertaking self-supporting, this is putting the carl before the The procedure adopted by the Department is the more businesslike one of determining whal trices will enable power-users u> compete with the lowesl prices obtainable elsewhere or in any othei pari ol the world, and to design the works on -*uch a scale and al such a cosl as will enable the prices , determined to be charged and I ake the business ultimately self-supporting. Briefly pul the

D.- Ib.

[2

penditure is not incurred unless the Departnienl is satisfied thai the business is ultimately self(iporting, apart hum the indirect benefits accruing to the State resulting from placing a cheap and ciblc Form of power al the command of the iinlivHln.il. and also quite irrespective of the large itional economy resulting from saving in coal-consumption.

Paragraph Ī

In this paragraph it is claimed thai the State hydro-electric powei undertakings Bhould also pay nil ilm ii,mil charges thai have In 1«- mel bv private enterprises, including rates and taxes.

This is a question of Governmenl policy. Another poinl of view which presents itself is thai the power-supply business should be conducted al the lowest possible cost, so us to enable economies Ui be effected and |)roduction generally increased, I» the benefit of the State indirectly, for it tin' whole benefil does not go in the consumer the State gains a new source of revenue us the business develops and .1 surplus is obtained. As a question of policy, however, the real poinl al issue is mil whether State enterprises should or should nut runt ribute to taxation, I nit whether any sorl of enterprise, private or public, should It taxed mi its improvements.

Paragraphs .V 9, In. and II

I lies.- paragraphs deal with i In' average revenue per unit obtained for the Lake Coleridge supply viz., 0427 d. and poinl mil that had the average price charged I n 0-sd. per nun instead of 0427 d. per unit a snlliriinit sum would have I n earned to pay nil capita] charges as well as workingexpenses.

I tiini mi tiiiilr with tlm antnmetic. A power-supply business is not. however, amenable in tlm kind ul reasoning displayed in this paragraph. I have never known a power-supply undertaking to ■arli a self-supporting stage in the second year of operation, or even tlm tilth : whereas tlm Lake 'oleridge undertaking has earned enough in its third year In pay working-expenses and interest, with surplus in tlm credit of depreciation a stage whien we did tint expect in reach until the fourth or Ith vear and this in spite of tlm hmt that the undertaking has been hampered, ami indeed brought in a standstill, because of tlm impossibility of obtaining tlm necessary plant to cope «ith tlm demand. Restrictions upon tlm growth of business have been in operation I'm' nearly two Man's, ami power for new industries, partly from outside tlm Dominion ami partly from other districts within tlm ' ilium, aggregating 3,500 h.p., has been refused. Moreover, tlm works are only half-completed, ami hey were never designed with a view in paying their way at such a stage. All we expect the business n .In is hj, pay its way when fully developed, ami to yield a small surplus with whirl, to pay "II the nficits mi the hist lew years' working, ami to write off items of expenditure not represented by tangible assets, sueh as preliminary expenses ami compensations.

Paragraph /'.'.

In tin- paragraph the ai-in nt is nilvaimeii that the Siate m carAing nui this undertaking is ngaged in an unfair competition with other interests whmh are subject in income-tax ami other taxes, '.hilsi the State is exempl front such taxation.

Tlm object of the State. I take it. is to place a supply of power al the command nl the individual. specially in lie' country, ami in the interest nl' eia my anil increased production. It is tint in competition with any other interest in doing it. because there is no other power offered in the field capable nf ii tine the requirements. It may he alleged that it enters into competition with the gas interests m certain towns: lint proof is adduced in the pamphlet that electricity cannot compete in price with gas for heating and cooking, and that the usual increase in the gas business in a certain district continues in spite of a supply of cheap electricity. Tins. I believe, is a Fact, ami is quite genera] : and I am convinced that the demand lor gas will continue tn increase, ami that both Inn.' a special Held of use. and that a town community i Is both.

In any case, the argument of competition only applies tn a lew favoured towns, and leaves out the lairs and tjm smaller towns.

Bvcn as regards the towns, it is a remarkable Fad that the demand for a supply ol electricity has I n just as insistent front those boroughs which own a municipal gasworks, such as Lyttelton Sumner, Rangiora, as from other districts. It is noteworthy also that the Dunedin Corporation whilst owning a mis business, found il incumbent, in the interest of the municipality, tn embark upon a hvdm-eleetin- enterprise.

The following resolution recently passed by the Borough C ail nl Blenheim is also pertinent In this issue: that "A supply of electricity in this borough, already supplied with gas municipally owned, is necessary ami desirable." [Marlborough Express, Ihh September, 1918.)

Paragraphs 13, //. and U.

I'l ojeel nl those paragraphs is to show that a supply to Uckland I Irapuni suffers in comparison with Lake Coleridge in two ways, viz. :

(I.) Thai the hydraulic works «ill he unduly expensive For partial development . ami

(2.) That i lie chief centre nf the population in he supplied (Auckland) is twice as far From Araiiiihi as Lake Coleridge is from Christchurch.

With reference in the first comparison, it is probably true thai For a development of 12,000 h.p. Lake Coleridge would he less costly than Arapuni, but on tl ther hand the advantt would he in favour nl' the latter I'm a development nf. say, 30,000 h.p. The argument advanced b\ Mr. Lowe ails if it he conceded that the requirements nf the Auckland Province are so much in excess „{ anterbury as tn requii initial outlay mi 30,000 h.p. instead nf 12,000 h.p. We now know thai

18

I). 11l

1 -"" ,h j" ''"J" 111, " ta "I Canterbury, when regarded 1n,,,, a national -.,,,„1 , develop ! ,aVI, " ; " leasl 20,000 h.p. instead "I 12,000 h.p.: so that popul id " tlal development of 30,000 h.p. for the Uckland district is not too optimist* "'her than this, u seems probable thai Arapui s - other source on the Waikato is destined to '''"!'"' a mam-"in,- supph for the North Island, in which case the argument that the cost "I developing Arapuni 1,,, anything less than 30,000 h.p. is unduly expensive has no weight at all

11 ar "J wer '" ,Im ' sec ' sieged disadvantage viz.. thai th,- chief centr the population to be supplied (Auckland) i- about twice ..- far away from Arapuni as Lake Coleridge is from Christchurch '""•'- -" ■ '"" un '1 ther hand the power to la- transmitted is greater, whilst there is i I general jnarkcl "" ,lir wa y. and -""a- concentrated industrial 1 1,- to be supplied, whilst there is at least one loeolitt destined to bee large industrial centre. As a result, power can be supplied in Auckland '" ''"' sa P«ees a- in Christchurch, despite the alleged disadvantages : ami 1 doubl il this will c c - 1'.'.l news in the people "I Auckland.

Vgain, although Arapuni is sonic distance from Auckland, which is about the centre ~f the population of the Am klahd Province, nis not far from the centr th,- population of the North Island onsidered as a whole; and. a,- the power to be obtained from this source is lai ami capable ol 'Pplying " largei area than the Auckland Province, it is well placed when regarded from a ■ - andpoinl.

Paragraphs Hi. Ii ./,-./ Id.

Hi'- argument advanced here i- an extraordinary one viz., il the Coleridge system was estimated i.i ">sl lii p,-r horse-power, aial ha- no» actually cost £45 per horse-power, or about double, therefore tin- Arapuni scheme, if estimated in cost tin per horse-power, will cost £BO per horse-power.

I he estimate ol £23 per horse-powei covers a lull development "I headworks, wlrlsi the supply is eonfined in Christchurch, in a manner similar to the supply to Dunedin from Waipori : whereas the expenditure of £45 per horse-power includes expenditure on headworks which are as v.- only parti] utilized, also expenditure on a system of distribution to tin- suburban an,! country population, also expenditure "ii account of retail business in '■'■nam arm,.-. Tin- Arapuni scheme also provides for - 1 system "I distribution in the Uckland Province, ami il stimate i- based upon the actual expendi turc mi a similar system supplied from the Lake Coleridge works.

Paragraphs 19, 21), and 21.

Tim purpose "I this is to prove that power cannot be delivered remuneratively to Ueklaud a! 1,--- than ii-><l per nun

lb'' argu nl employed is a- follows: The charge for a supply from Lake Coleridge in 1917, instead "I being 0-427 d. pel unit, Bhould hair I n 0-sd. per unit in order to male the lertaking pay its way, an,l as the capital cosl "f supplying Auckland must be, according to Ilia arguments advanced in the preceding paragraph, £BO per horee-power against £45 per horse-power expended on the Coleridge undertaking, it follows that th,- average |m,-,- ~1 the -upi'lv from Ar*puni must In- at least 0-Bd. per unit in order i ake the undertaking remmjerative.

The conclusion is 1.am,1.-.I upon the assumption that the Arapuni scheme «ill cost £BO per horsepower; but even lln-n tin- conclusion is not sound. Th.- capita] charges on the basis of 7 per cent per annii it EBO will i mnt i., £5-12 per horse-power pel annum Th,- working-expenses would certainly not exceed £30,000 per annum for a sale ..I 30,000 h.p., which is at the ran- of tl per horsepower per annum, making a total of Ē6-12 per horse-power per annum to cover all charges. This, on if,- basis "I a 50-per-cent. 1..a.1 factor, usual in hydro-electric plants, is equivalent to 0-36 d. per horse power hour, or 0-483 d. per kilowatt-hour in il verage, compared with which tin- figure 0-Bd. per unit -■'■ il- In be a wihl I'll,-ss.

Paragraph 22,

I hi- reads a- follows : " For a partial development the price would require to I).' very much "renter [than o*Bd. per unit], or else there would la- a very hum- annual deficit."

liven mi Ha' assumption nl a capital mist oi EBO per horse-power, I have shown thai the price per mill does not need to la- 0-Bd. per unit in make the scheme self-supporting. Th.- statement thai for partial develo] nt whilst the business is being built up there would la- annual deficits is a self-evident ■mm an.l inevitable m some .-lass,-, ~i business, an gst them being power-supply undertakings whether tin- power is derived fr.au fuel or fr head of wat. i Nevertheless, this disadvantage does nol militate against the rapid growth an.l expands power-supply undertakings. Evidentlv deficits "1 tl rly years ..I the undertaking are of little account in comparison with il mi.mm gain to the 'unniunit v.

Paragraphs 23 antl 24.

It is pointed oul id these paragraphs that coal is cheaper in Auckland than in Christchurch, ami Hint in consequence the cost of generating power l,\ steam is less in the Auckland districl than in the Christ-church district, ami that this circumstance «ill militate against the sum.., ~| i| M . \,,.,,,.,, scheme. '

The argu nl that because coal i.- cheap there is no room for a general power-supply undertaking, nr thai ii militates against its success, is disproved by the [acts. Il is within my own knowledge and •xperience, foi insti th I m m on a p<uujisuppl\ lystetn, ami also the ,-t -,-, illing and ready users, i ,-l one would be well justified in arguing beforehand that an electric-supply undertaking generating electricity- bv means o£ a steam planl would have no prospects at all in a mining districl The eontran is, how'evei thi facl and in this connec ""ii .1 reference to the Coal ('onservatiou Sub-committee "f the Reconstruction Committee of Great Britain is interesting [I tated on page 27 thereof thai collieries having an output of 20,000,000

ii

n. i>

..,. ul coal [>L't .iiiiinin in the ili-i-a.-t coast oi England are dependent upon a supply from the north-east coast power system, and that a saving of 1.000,000 tons of coal per annum has been Heeled in consequence. Large collieries in the Midlands, in Lancashire, Yorkshire, and South Wales Ilium a supply ul electric power for power-.upply authorities in whose area of supply they are minted.

Paragraph 25, 26, 27, and 2H

The purpose oi these paragraphs is to show thai the Governmenl could qoI supply Auckland City Council to its advantage excepl al a price which would uot be remunerative, and therefore al the rusl of the taxpayer in general. In proof of this a table of the works-cosl of the Auckland City Council electric generating-station For the year ending 31s1 March, 1917, is submitted, showing a a] works-cosl oi 0-5752 d. pel unit, or 0'65927d. per unit according to another table. This is ndubitably a fine performance. The plain is modern and of a mosl economical type for its size. : ~;il ig cheap, and i 1 is burnl and handled in the most economical way possible. In fact, it is our ,j the best municipal plants I know of, Bui when interesl and depreciation are added Ido nol suppose I hat the total would be less than 0-9 d. per unit. This is, then, the cosl "I generating electricity in Auckland under the besl possible conditions and with an expert staff. This does nol compare Eavourably with the average selling-price per unit from Lake Coleridge, nor even with whal Mr. Lowe savs it ougb.l to be.

ll is next stated that alt,'i' taking account of the saving in coal, oil. waste, stores, repairs, an,l maintenance il would not pay tin 1 Auckland City Council to take a supply at the average revenue per unit From the Lake Coleridge" undertaking, and the statement is reiterated that the cost nl supplying energy to Auckland from the Waikato is greater than the c>st pin- unit of supplying Canterbury from Lake Coleridge. I have disproved tin- in answer t,, a previous paragraph.

'""*' ' - I r i o i Hut. admitting Mr. Lowe's contention as in the increased capital and annual cost, I see no difficulty in the way "f supplying Auckland to advantage and without loss to the Department. It is evident that Mr. Lowe lias overlooked the effect of diversity and load factor as well as hulk upon the unit-prices, and he also seems oblivious to the (art that th,, Auckland City Council will I ly one hulk consumer amongst many from the very outset, and possibly Dot the largest by any mean.- when the scheme is fully developed. In discussing prices all the Factors mentioned must be taken into account, with,an which any statement of price ha,- little ~, leaning. As an instance we may refer t,, the pamphlet under the heading of "Some Interesting Comparisons," where a statement is | inn t,.,1 of the total costs of generating and distributing electricity by the Auckland City Council, including interest and depreciation viz., l-826d. per unit sold; and yet I have no doubt that the Auckland Citv Council have many customers paying at a lesser rate per unit than this, whilst at the same time thev may he regarded, and rightly so, as heme quite a- or more remunerative than other customers paying more than the average cost per unit. This should show that Mr. Lowe doe- not prove hi- ease by quoting either unit-costs or average prices.

Paragraphs 29, 30, 31, and 32.

The intention here is to show that the saving in coal resultin.e from a supply ol hydro-electric power would only appli to slack coal, which is produced in the hewing of household coal, and which must he brought to the surface in any ease, and thai if it is not used it will he wasted and the Railway Department will lose revenue.

I do not know how far n is true that all the slack so produced is used lor steam-raising in Auckland, but it is quite certain that a measure of economy which results in economizing coal creates i demand for coal lor use in other ways than steam-raising for power purposes; and I am ~l opinion il l;l i the coal-mines will profit a- much as any one else by the increase of general prosperity and oi production. From me previous experience I feel confident that the coal-mines will he amongst the First to lake advantage ol a hulk supply of electricity and 1,, use it m in,,re ways than one. A- regards he railways, a supply of electricity in hulk is essential if they are to keep pace with the development ,1 i 1,,, country. In any case I suppose fchey d, i regard the transport of slack coal as a very profitable business, and that they would he glad to replace it with more remunerative business, such as he transport of produce and manufactures.

Paragraph -i-i. 34, 35, "„<' 36.

I'h" arrangements made with the Christchurch Tramway Hoard and with the Chnstchurch City •Council lor maintaining steam For purposes of a standby are quoted in these paragraphs as proof positive that in order i,, make reasonably sure ~l a continuity of supply a complete steam-generating plant would l,c necessary m the City of Auckland for standby purposes, ~r else a duplicate line each , apable of carrying the whole load.

I do not know why it is necessary t,, make deduction- ol this kind when the fact- regarding the :essity, expediency, and use of standby plant are ascertainable by reference t,> the Waihi plant, or the. Lake Coleridge plant. ~r the Dunedin City Corporation plant. Referring to Lake Coleridge, there ~.,. in use two transmission-lines each capable of supplying l he whole of the present load, which load is m, an( J ,i hall times tie maximum supplied to the Chnstchurch City Council. The Tramway Board maintain at their own expense the plant nee < to run the whole of their service in the evenl of failure of supply. The Christchurch City ' ouncil maintain at their own cost a plant ~l about ,m, third of their maximum heel Tin Dunedin citv Corporation have duplicate hues, and maintain a s t. a ndby plant consisting fot their tramways only, bul have no standby [oi their powei iM ,I lighting load : ' '■ ild mining Company rely on a single transmission-line, ami maintain 1( i 0 y F,,i pumping gas-engines and a steam-engine These are exam],!,- of what

I).— Ib.

16

i found expedient in practice; and in fftco of those examples in New Zeal I lei aim xamplcs itaide N''» Zealand, which may he quoted by the hundred there is no need to make am assump is 1., what i- nocessan for Uokland. with a view to drawing conclusions thai standby i"i isions aiv liiii in-! Iv

" ...-,,, As regards results, I would refer to the statement made in public by the chairman of the Waihi Hold mining Company at the meeting of the shareholders held in London on the Bth May. 1918. and reported the Mining Journal, thai the saving in working-expenses as a result of the adoption of hydroe. in. power, directly and indirectly, is between £20,000 and £25,000 pel annum, after allowing foi uteres! and depreciatioi the cost of the nev plant.

The chairman "I the Christchur. hj framwaj Board has publii ly stated in regard to the Hoard - Iperations for the vear ending March, 1918, that instead of showing a surplus of f5,800, after providing '"i interest, sinking fund, ami depreciation, which they are able in 'ln as a result "I taking a supply nun Lake Coleridge, they would have shown a deficit due to increase in cost oi coal and othei orking-expenses.

It is quite evident thai none of the authorities quoted regard the maintenance of a standby plant as burdensome, even when it amounts to the whole ol the power requirements, as in tin- case ill the Christchurch Tramwav Board.

A- a rule tin- standbv provision is not more than a third of the maximum, and only just sufficient to maintain the more essential services : ami in the case of the Christchurch City Council is employed to reduce the peak-load demand from tin- Government.

Another point in connection with the employment of a standby plant is this: that as time goes on and the system of supplv is enlarged so as to link up with more than one source of supply, and when i In- number nf transmission-lines is increased with tin- increased demand, tin' necessity nf standby I.mi becomes less ami less, ami that they may be regarded largely in the nature ol temporary \|n'i!iiMltS.

As regards Auckland, there would be inevitably tun lines at the outset, supplemented later by a bird an-! ihen a Four!h line.

Paraqravhs .'J/. ■iH. 39. it). 41. 12, and 4

Some opinions nf mv own are here quoted regarding desirable limit- in the expenditure upon headworks ami generating plant, and also quoting an estimate of my own nf L'4n per horse-power as the cost ol large power-supply systems when fully developed. The question ol tin' expenditure pel horse-power i- a most involved one, ami it is quite possible for a scheme costing £BO or £lOO pit horse-power to In- more successful financially than one costing only one-half this rate. The capital expenditure per horse-power depends largely upon tin- extent to which the power i- mail.' available, [f the supply is confined to the towns and industrial districts ilia expenditure is so much : il extended to supply every fanner ami settler, however remote, tl xpenditure per horse-power is greater. Inn ii so doing tin- range ami diversity nf uses is increased ami a proportionately greater return is obtainable, whilst at tin- same time the gain to industry ami to the State generally is much enhanced . the greater area covered, ami bv tin- fart that the power nf production is greatly increased, not inly bv reason nf electric power being placed at the disposal nf the individual, but by tin- pnssilulii \ ,1 closer settlement ami by attracting tin- population from the towns in the country.

Mr. Lowe -arms to be under the impression thai the £45 hit horse-power -pent mi the Lake i loleridge system is not only in excess of the estimate which is not the case Inn considers it in be an abnormal figure altogether, whereas any one acquainted with power-distribution would regard il as abnormally low. 1 have no doubt that tin- expenditure on the Lake Coleridge undertaking pel horse-power nf plant will exceed the figure of £45 bv a considerable amount, much to the benefit ol Ma' community generally. 1 also anticipate that ultimately, as the lines become more am! more utilized, the capital expenditure in terms of the horse-power nf plant will be restored to about the present figure.

In paragraph 12 the argument is again repeated that the Lake Coleridge undertaking cost twice the estimate which is not true ami that therefore the supplv to the Auckland district will cosl twice tl -innate. Tins dues not follow even if the lirst assumption is ttin : and even if it did it would nni br regarded as an abnormal figure from the point nf view nf a comprehensive power system designed in supply all the needs nf the enuiiuumtv. nor would it I"- unprofitable as an investment.

" Some Interesting Comparisons."

Th,- matter under the heading " S Interesting Comparisons " may !"■ deall with conveniently en bloc, a- the purport ol it i- to answer the quest " What effeel will the Arapuni hydro-electric scheme, if carried out, have upon the business of the Auckland Gas Company ' "

The inference from the argu nts ami evidence adduced i- that, so far from having in fear competition, the Gas Company i- going in benefit bv it, Then why worry aboul it ' Tin' answei thai mir infer- Mr. Low,' would give in this question is. ■' i ih. we aiv not afraid ..I fair i ompetition. What we object in i- ~1,., in,m supplied by the State at less than cosl price." Bui tl vidence oi the chairman "I the Toronto Consumers' Gas Company, quoted in this connection, is to the effect that id.- business of the company ha- increased In' leaps am! bounds in spite nf the fact that they are in competition with a State Bupplv nf electricity viz.. the Ontario Hydro-electric Commission, operating ~n a colossal scale am! from Mr. Lowe's point ol view, selling electricity al less than cost price, ail ,1,,,.- nni pay rali- ami taxes So that the Auckland Gas Company has nothing to fear in any case Win then should tin- Gas Company trouble themselves about the matter ' Il is difficult in believe that the Gas C panv a- such should go to the trouble of proving thai the State hydro-electric

D.—lß.

11

chemes are not financially and economically sound, nr that the moneys expended thereon would he I'tter spent on roads and railways, or that the power-user in and around Auckland would not benefit a national system of electricitv-supplv. or that electricity cannot possibly compete with gas for "I'king. unless it was felt that the advent id a national svstem was in some way mimical to mh Test. It is quite evident from the chairman's introduction to Mr. Lowe's report that, in spite oi repeated assertion that the company ha- nothing to Fear, it 1- somewhat anxious about its putiition which, of course, is quite natural.

My own view, based on long experience, is that, whilst the functions of the two services overlap n some respects, each has its peculiar field m regard to which there is no competition. The special Hold ot electricity is fighting, power, and electro-chemical industry : the special field of gas is domestic heating and cooking generally, factory heating, forges and furnace work. The two systems overlap, is a large number of people prefer gas-lighting, and benefil the gas interest by demanding an illumina ion equal to that given by the more adaptable electric-light system. On the other hand, a number f people will not have gas heaters at any price, and will cheerfully pay the extra price for electric heating. In addition, there are some situations, such as pay-boxes at theatre-entrances, and occa ional use in sickrooms and bedrooms, where electric heating is Letter adapted for the purpose than :as heating, As regards cooking, the disparity in cosl is not 30 great as it is represented by Mr. Lowe. or the reason that a substantial proportion of the heat supplied by tie' gas passes into the Hue. whilst .a the case of the electric oven a lesser proportion of heat is dissipated.

'I he [mint, however, is that each agent has its peculiar and special function, and the real explanation of the anxiety disp ayed by a gas company at the advent oi electricity lies in the fad that befort tie advent it has all the held to itself, bul after the advent of e'ectricity il is laced with the necessity of readjusting its functions and of confining itself to its proper field. This necessitates a reorganization and an extension and possibly reconstruction of its work to provide for an increase in demand for which always follows the advent of electricity to a town.

The real solution of the difficulty with the gas companies ia For the municipalities to acquire them by State aid, and to work the gas department in conjunction with the electricity department as a joint service for the benefil of the public. I sec no incongruity al al in this. This Department has frequently referred customers to the Christchurch Gas Company for their heating, and a municipality should be in a position to supply both services, 00l as rival services bul as co-ordinate services, each with its special field of use ; and ir is my intention to advocate tins policy as part of a national system oi power and heating services.

E Parry,

The Hon. Sil Win, Fr.eer. Minister ol Public Works.

Chief Electrical Engineer.

;ilhM)ereinl>er. 1918

: mdt Cn<i ..i I'apti ['n-paratl I |riVt*H ;"imin,' i i 'D'l ■ .., i ■ j■■ ■ u.-

By Authority: Mxarus F \hiiKs. Government Printei Wellington 1913

Pric: >-< i.

L Birks, Lawrence, 1874-1924. 3J3.914150 Hydro-electric power development 993 in New Zealand/ Lawrence Birks. BIR 1924

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https://paperspast.natlib.govt.nz/books/ALMA1924-9917503113502836-Hydro-electric-power-development

Bibliographic details

APA: Birks, Lawrence. (1924). Hydro-electric power development in New Zealand. Govt. Printer.

Chicago: Birks, Lawrence. Hydro-electric power development in New Zealand. Wellington, N.Z.: Govt. Printer, 1924.

MLA: Birks, Lawrence. Hydro-electric power development in New Zealand. Govt. Printer, 1924.

Word Count

47,002

Hydro-electric power development in New Zealand Birks, Lawrence, Govt. Printer, Wellington, N.Z., 1924

Hydro-electric power development in New Zealand Birks, Lawrence, Govt. Printer, Wellington, N.Z., 1924

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