ELECTRIC POWER IN COUNTY DISTRICTS

Bay of Plenty Times, Volume LVIII, Issue 10379, 17 May 1930, Page 3

ELECTRIC POWER IN COUNTY DISTRICTS

Review of Past Year’s Operations. MR LOCH HEAD RE-ELECTED CHAIRMAN. The annual meeting of the Tauranga Electric Power Board was held in Security Buildings yesterday. Present: Messrs T. Lochhead (Chairman), C. E. S. Cane, J. Hume, J. M. Darragh, 11. G. Lever, S. H. MacDougall and G. H. Mends. The minutes of the last annual meeting were read *%nU confirmed. The Chairman stated, in regard to what took place at the last meeting, that ho would submit to the unanimous request of members of the Board and would carry on to the end of the term. Chairman’s Annual Report. The Chairman read his annual report as follows: In presenting this report which reviews the Board’s operations during the past year, one is impressed with the remarkable progress made and the fact that our business is developing into a big concern. The many uses to which electricity Is being put in our area shows the progressiveness of the people and the popularity of the commodity which we are selling. It also shows clearly that electricity is becoming a necessity, that it is entering into all the activities pursued in the district, and that it is playing a big part in its development. The Board, to fully carry out its part in the development, must direct all its energies towards the definite objective of reductions in charges. The main methods of achieving this purpose is to keep down expenditure without impairing efficiency and to increase the load upon the present lines. Financial Position.—The Board's authorised capital is now £144,500, £17,000 of which still remains to be raised. Owing to numerous requests for extensions it became necessary, early In the year, to approach the ratepayers for authority to raise a further loan, A poll was taken on August 24 last, upon the Board’s proposals to raise £30,000. and it is with gratification that I record the fact that the approval of the ratepayers was secured by a large majority. The revenue account for the year shows a total of £22,869/9/11 and a gross sum of £10,131/14/8 carried to the nett revenue account. Prom-this £6,654 3/8 was paid in interest on loans, £1,235 for sinking funds, £1,581 8s to our compulsory depreciation account, £1,500 In reduction of the preliminary expenses account, £4l Is unauthorised expenditure, and £422 6/10 was carried forward. Works Accomplished.— During the year, extensions to the Board’s high tension system were carried out In the following districts: enree, Omokoroa, Te Puna, Lower Kaimai. Oropl, Maketu and Rangiuru. Provision for increase in load on the original reticulation has necessitated a large amount of work, particularly at Mount Maunganui. The reticulation system has functioned satisfactorily and It is pleasing to note that the number of Interruptions to the supply was reduced considerably as compared with previous years, and the services rendered by the Board, compares very favourably with that of other power districts. Work at present in hand will reduce these interruptions still further. Reductions In tariff were adopted during the year and the Board’s milking charges are now below those ruling in some of the other dairying districts. It may be advisable at some future date for the Board to consider re-arranging its various tariffs, with a view to removing a few anomalies and consolidating on a simpler basis. Connected Load. —The following figures show the connected load as at March 31, 1929, and March 31, 1930, giving the increase for the year. These figures do not include the whole of the Athenree extension. as a number of these consumers were not connected until the

Number of consumers. —815 for March, 1929: 879 for March, 1930; increase 55. As far as can be foreseen, the development of the load will proceed most rapidly in the domestic and milking motors.* A busy time is anticipated for the commencemeut of the next dairying season, enquiries for connections of milking motors coming in freely. In the industrial section, one large consumer. Is considering an increase in plant, while swamp drainage pumps have been the subject of several enquiries. Accidents.—The year has . been free of accidents of any Serious nature to the Board’s stall or plant. Transport.—ln general the vehicles have funtcloned well, and costs are tending to decrease. The Board’s administrative officers are ever on the alert for improvements, and th'e Board has always been ready to give every assistance in the installing of new labour and cash saving devices, to enable the most efficient service to be given to consumers. Improvements in electrical systems. equipment and appliances are constantly being invented, and in a growing business, such as ours, up-to-date knowledge is essential, and conference of Power Boards can be lltffif justified, if only from the fact that secretaries and engineers meet together and discuss .their problems. Staff.—During the year our former Secretary, Mr R. P- Baigent, was appointed Secretary and Treasurer to the newly constituted South Tarauaki Electric Power Board, at Hawera. His place has been filled by the appointment of Mr J. RChambers, who was previously Accountant to the Franklin Electric Power Board, at Pukekohe, and he la taking a keen interest and giving diligent attention to the business of our Board. The Engineer, Mr J. R. Bongard, is also active and alert to everything pertaining to his Department. I wish also to express ,my appreciation of the work carried out by both the office and outside staffs during the past twelve months, every one earnestly endeavouring to further the Interests of the Board. In conclusion. Gentlemen, I think we can look back on the year s operations with pleasure and satisfaction at the progress made in the development of our undertaking. I have to thank you, Gentlemen, fur your loyal support, and harmon- ‘ ious working during .the year, u is onlv by such assistance, co-opera-tion, and adherence to sound hias ness principles that an undertaking such as this can truly prosper. • Mr Gaue. in moving the adoption of Hie Chairman’s repor , said ' the Board was making steady improvement.

Mr Darragh seconded the motion, which was carried. Election of Chairman. The Secretary, Mr Chambers, called for nominations for the position of Chairman. Mr Hume moved—That Mr Lochhead be re-elected Chairman.—Seconded by Mr Mends and carried. Mr Lochhead returned thanks for the renewal of confidence and said he hoped all members would work together for the advancement of the Board’s interests. Chairman’s Remuneration. Mr Darragh moved—That the Chairman’s remuneration be the same as last year.—Seconded by Mr Mends and carried. General Purposes Committee. Mr Hume moved—That the General Purposes Committee—the Chairman and Messrs Lever and Mends —be re-elected.—Seconded ty Mr Gane and carried. Mr Lever returned thanks on behalf of the members of the General Purposes Committee. Travelling Expenses. Mr Gane moved—That the members’ fees and travelling expenses be fixed on the same basis as last year.—Seconded by Mr Mends j*id carried. Monthly Meetings. It was decided that the regular meetings of the Board be held on the third Friday of each month. Secretary’s Annual Report. The following annual report was presented by the Secretary, Mr J. R. Chambers:— I have submitted for your perusal the balance sheet and accompanying accounts of the Board for the year ended March 31, 1939. and in conection therewith append hereunder a brief explanation of cogent features In the Revenue Accounts and an informative resume of the Board’s financial position: Expenditure. A. Purchase of Power.—The cost of power purchased from the Borough Council is rapidly increasing, which, of course, Is offset by the large increase in the sales of electricity. The average cost per unit sold Is .4666 d which can be considered very satisfactory when compared with the price paid by other Boards. The percentage of cost of power purchased to sales of electricity has slightly decreased, this year’s figure being 28.5 per cent., against 29.1 per cent, last year. This percentage will, of course, in-; crease as the Board grants reductions in charges. B. Repairs and Maintenance.— The position with regard to these charges remains the same, as outlined in my report on the Board’s operations to December 31 last, and I do not desire to make any further comment thereon. C. Management and General.— It Is with pleasure that I record a reduction in these charges for the past year. Owing to economies effected In the internal management and •new systems instituted a substantial reduction has been effected in overhead charges, despite an increase in the number of consumers. This position must be viewed by the Board with complete satisfaction and as a still further considerable increase in consumers can be dealt with, without any increase in staff, the ratio of profit to sales in the future should show a substantial Increase. Income. A. Sales of Current. —The sales for this year are £20,874/3/11 as against £19,594,/0/10 last year, an increase of £1,280/0/1, which can be considered quite satisfactory. B. Rent of Motors and Hire of Motors. —There is an increase of £99/3/3 under this heading, which, of Course, is more or less counterbalanced by.an increased capitalisation in our motor stocks account. C. Penalties and Commissions. — This figure shows a substantial reduction, and it is gratifying to note that accounts are being paid more promptly. The Board should not look to penalties as a means of revenue, but in the light of inducing the consumers to pay their accounts within the discount date. I am of the opinion that the penalty charge is too high and would recommend for your consideration a reduction from 16 2/3 per cent, to 10 per cent. Interest on Loans. —The amount of this item, viz., £6654/3/8, shows that the Revenue Account is bearing the full brunt of interest charges. Sinking Fund Appropriation.— The same remarks apply here as for Interest on loans. Unauthorised Expenditure. —This item shows a considerable increase over the figure for last year and is comprised practically entirely of subscriptions to local associations, some of whom do not even function in our district. As most of these Associations are supported by ether local bodies It appears that the same ratepayers are subscribing two and three times over, and I would, therefore, suggest that our donations for the coming year be kept down to a minimum. Preliminary Expenses Account.— I have transferred the sum of £ISOO in reduction of the above account which stands as a fictitious asset in our balance sheet and was originally paid for out of loan moneys. In order to improve our ■financial position, I would recommend that the balance of this account be written off next year. General Financial Sunmuirj. The first matter of paramount importance to be considered is the financial stability of our business. Are our reserve funds large enough ,pr do we require to make further provision for possible future contingencies? The Board’s depreciation reserve, with this year’s addition, stands at £3070/8/9 and the sinking fund reserve at £4,610/13/4. a total of £7681/2/1, and £ISOO has been written off the Preliminary Expenses Account. The depreciation reserve is compulsory, but I consider that, as our finances permit, further provisions should be made for wiping off the intangible assets and thus strengthening our general financial position. The Board’s reticulation system is being maintained in firstclass order out of revenue‘and the only contingent that cannot possibly be provided for is the question of obsolescence. ■ in conclusion, I desire to thank the Chairman and members for their unfailing support during the six months that I have been associated with the Board. Mr Darragh, who had previously brought up the question, moved— That the penalty charge be reduced to ten per cent. —Seconded oy Mr MacDougall and carried. Mr Darragh commented on the amount of subscriptions to local associations, and thought these should be cut out. , , Mr MacDougall moved —That for the current year no subscriptions or donations be made to any local organisations.—Seconded by Mr Darragh and carried. Mr Gane moved—That the secretary’s report be adopted.—Seconded by Mr Mends and carried. Mr Gane asked for information m regard to the trading account, the writing down of’ stocks, and. depreciation were given by the Secretary,

present year. Mar. 1929 Mar. 1930 No. K.W. No. K.W. Domestic supply 1683 2045 Water heaters 3i4 199 400 245 Field pumps 116 48 157 61 Commercial 16 32 Milking motors 296 418 361 494 Other motors 38 430 47 479 2794 3356