BULK POWER

Ashburton Guardian, Volume 55, Issue 292, 23 September 1935, Page 7

BULK POWER

CONFERENCE OF AUTHORITIES. SUGGESTIONS TO GOVERNMENT. REPORT BY MR E. F. NICCXLL. After attending an important conference of electric power authorities in Wellington two weeks ago, the chairman .of the Ashburton Electric Power Board (Mr E. F. Nicoll) prepared a report on the deliberations of the conference and this was presented to members of the Board at the meeting this morning. The report was as follows“At the present time the Association has a membership of 45 power boards and supply authorities and these were fully represented at the conference which was largely attended,. During the same week the Engineers’ Association, and the secretaries held their respective conferences, and representatives were present from all parts of New Zealand. Amongst the other business dealt with at these conferences, many interesting papers were read and discussed. Some of these are worth study and later will be made available to Board! members. “At the main conference the two principal matters for consideration were: (1) The bulk supply report and (2)) the setting up of a permanent secretariat. Before I deal with these, I will touch on other remits which have an interest for this Board.

“The Thames Valley Board proposed that the Government should be asked to consider subsidising power boards in the reticulation of sparsely developed areas. Though this remit met with a certain measure of support, it was finally negatived on the main ground that too much must not he asked of the Government at the present juncture in view of the importance of securing its favourable consideration of the bulk supply report. Subsidies on Lines. “In connection with the subject, one of the papers read at the Secretaries’ Conference dealt with the suggestion • that a board should! set aside a small percentage from its profits each year and place this appropriation in a special reserve account for use in cases where some subsidy was necessary to make a line return the required revenue on capital cost. It is a point rvhieb merits consideration, but it would have to be dealt with carefully and within certain limits.

“The evergreen proposal with regard to the cutting of overhanging trees and the recovery of the cost from owner or occupier, was again negatived. The deciding factor appeared to be a strong plea by a delegate from one of the fruit-growing districts, who stated that a board possessing such powers might seriously injure the orchardist. “Nationalisation of Electrical 'Undertakings.—Proposed! by ManawatuOroua and no doubt arising from the recent troubles with Palmerston North Borough, was not treated very seriously and was negatived without discussion. “Rural Mortgagors Final Adjustment Act, 1934-35. Sale of Appliances. —lt was proposed that the conference consider the application of this Act as it affects the installation of electrical appliances and fittings where credit is

given, and it was stated that the new Act placed power boards in the position of being an unsecured! creditor instead of a secured creditor as before. An investigation is being made into the whole matter and boards will be advised of the exact position at an early date. Question of Transport. “The remit suggesting that the Env gineers’ Association be asked to report on the most suitable type of car for power board!'use with a view to a pool purchase of British cars, was negatived. Most boards seemed to have their own ideas with regard to transport. “At the Secretaries’ Conference cer-

tain remits were passed which were in the main endorsed by the general conference, though not always unanimously. Those which are of interest to this Board are as follow: “1. That authority be given by Orcler-in-Council for the investment of depreciation reserve funds in approved trustee securities. “2. That ratepayers on the defaulters’ list be not disfranchised at any poll either for election of representatives or on loan proposals. It was argued! that a borough ratepayer is not disfranchised and that it was not fair to discriminate. “3. That the Education Department be recommended to take the necessary steps to ensure that regular and systematic instruction be given to scholars in all schools with a view to guarding against electrical accidents. At the present time I have under discussion with the Engineer-Secretary the best method of securing the desired! result, andt a proposition will be placed before the Board immediately dealing with the matter.

Pensions for Staffs. “4. That as amongst power hoards, employee retiring pensions is becoming a fairly general question, and as it is felt that all boards would quite gladly receive information which would assist in its broader consideration, it is suggested: (a) That the Secretaries’ Committee obtain the permission of the main conference to draw up a model plan or scheme; (b) that it inquire into and set out the advantages which would he secured if there was co-opera-tion of all boards in the way of putting all their business through one channel; (c) it would obtain full details of costs and quotations; (d) it would formulate a basis which would enable individual boards to ascertain their respective costs and so on. The main idea is to obtain an expanded consideration of the matter. Permission was given by the conference and the Board 1 will have an opportunity of considering tho report in due course.

“5. That with a view to increasing

the number of radio license holders and thus increasing a very desirable load from power boards’ point of view, the New Zealand Broadcasting Board, and/or the Postmaster-General be urged to promote a publicity campaign drawing attention to the benefits of ‘Wireless in the Home.’

“The above remits w T ere all endorsed by the main conference. It was further stated' that the secretaries’ branch had continued its compilation of statistics dealing with insurance of power board risks in an endeavour to obtain a more favourable tariff, and it was reported that underwriters will later place before the executive of the Power Boards’ Association the most liberal terms they can offer. Probably any such terms would be based on all, or a large percentage, of the boards agreeing to join in such a scheme, and it remains to be seen whether the saving would be such as to make it worth while to alter existing arrangements where they have worked satisfactorily. Bulk Supply Question. “Turning now to the bulk supply report. The Municipal Electric. Supply Authorities’ Association (the breakaway body formed last year) asked to be beard on this subject, and this being granted, their representatives attended and while agreeing generally to support the report, they asked for certain amendments which they considered necessary to conserve their special interests. They asked that a clause should be inserted providing that where any supply authority has a supplementary plant which it proposes to use regularly for the purpose of reducing its peak load, that such supply authority shall have the right to produce and use apart from the supply received either from the Department or a power board, one-third of the normal requirements. “Later when the delegation had retired and! the report was under discussion, the Wellington City representatives made a strong claim on the same lines, but the proposal was heavily defeated. Whilst the Auckland and Christchurch city delegates accepted the report despite the fact that the proposed standard rates must adversely affect cost as compared with the rates paid under their recent contracts, the Wellington City representatives were prepared to fall in wit the charges as. set out in the report, provided the Corporation had the right, if they so desired!, to generate onethird of their requirements with thenown plant, and in this connection, it is of interest in, passing to note the present position in that City.

In a Happy Position. “Wellington’s demand last year was over 20,000 k.w. and they derive their requirements from the combined system Waikaremoana-Ar apuni. They possess a steam stand-by plant of a capacity of 10,000 and have now accepted tenders for a, further plant of a capacity of 15,000. The latter is of the most up-to-date nature and is capable of being brought into action at very short notice in any -case of sudden breakdown of the hydro-electric supply - “The cost of this new plant is stated to be in the neighbourhood of £200,000, and the Corporation having the funds in hand from past accumulated profits, finds itself in the happy position of being under no necessity to approach the Loans Board for permission to raise the money. “As the City’s contract with tne Public Works Department is now understood to be under consideration (and one of the delegates stated that the Department demands would mean an additional cost of £30,000 per annum) it can readily be seen that the possession of such powerful supplementary plant raises difficulties which speak ioi themselves. It is obvious that the right to produce one-third of the lequirements of any municipality with its own stand-by plant might materially affect the financial conclusions of the bulk supply report.

Reasonable Propositions. “The report, which is already in members’ hands, was finally adopted with only three dissentients and will in due ocurse be presented to the Government as the considered opinion of the power hoards and supply authorities (outside the Municipal Electric Supply Authorities’ Association). What its fate will be, remains to be seen, but it presents such a sound view of the position and such reasonable propositions with a view to improving the whole aspect of bulk supply, that the general feeling seemed to be that many of the suggestions would be welcomed by the Government and that it will receive, not the usual “consideration,” but really serious investigation and consideration.

“Secretariat.—Members will remember that as previously reported, the proposal to reconstitute the Association as an Electrical Development Association with a permanent secretariat did not meet with any general favour from tile Boards, hut there was a suggestion from several quarters that with a view to continuity of interest and to make the Association of more general use to its members, a part-time secretary should be appointed. Appointment Decided On.

“The Executive, therefore, brought down definite proposals in this direction for submission to the conference and whilst regret was expressed from some quarters that it had not been found possible to induce boards to go the whole way, it was finally decided that half a loaf was better than no bread, and the Executive was empowered to seek and appoint the most suitable applicant for such a position. “The salary to be offered is £350 per annum, with permission to do outside work provided the interests of the Association are always the first consideration. The successful applicant must provide his own office accommodation, staff and equipment and the appointment will be subject to three months’ notice on either side. It was further decided that the services of Mr Martin ho retained as legal adviser at a salary of £IOO per annum. “The above proposals will probably mean that it will not he possible any longer for the Association to he financed on the 50 per cent, subscription basis which has been current for the past three years. The return to

full payment will, however, he more than justified if the new arrangement proves satisfactory and achieves the probable results claimed. Time will show if this is so, and in my opinion everything depends on c the appointee to tho position. The result may, of course, be so convincing that Jatei there may be a justifiable dlomand for a full-time secretary.

“The conference was full of interest, and was conducted in a business-like and practical manner by the chairman, Mr J. A. Nash, M.P. (president of the Association), who was re-elected to the position. The South Island representatives on tho Executive were also reoleeted, and as representing tho Ashburton Electric Power Board, my name was included among the four.”