HYDRO-ELECTRIC OPERATIONS.

Press, Volume LXVIII, Issue 20711, 23 November 1932, Page 14

HYDRO-ELECTRIC OPERATIONS.

YEAR'S WORK REVIEWED. QUESTION OF POWER COSTS. WELLINGTON, November 22. "Hydro-electric development and operation has throughout the year again been one of the most important func tions of the Department," says the Public Works Statement. "Capital expenditure has been mainly concentrated on the remedial works at Arapuni and on continuation of construction works at Waitaki. The operating works have to some extent felt the effects of the prevailing depression in that there has not been the same increase in loading during the year as has been usual for some time. In the North Island systems the loading for the year shows a small percentage increase but in tho South Island the loading has been slightly below that of the previous year. "The general financial position of the operating accounts shows a small improvement on that of last year, the percentage over net operating expenses being 7.28 as against 7 per cent, last year. The figures for the year are as follows: — Percentage Earned on Operating Capital After Paying Operating Expenses. u, ■ to .2'3. gS-l, it "ll -J §lr HoralioiiiAra £ £ £ £ £ puni .. 1,310,051 361,864 115.0W 40,381 3.58 Waikaiemoana, Lake Coleridge 1,73*,5W 218,196 37,245 180,951 10.43 Totals 6,577,504 080,102 201,148 478,954 7.28 "The general result of the operation of the Department's electric-supply system to date has been that the schemes have paid all operating expenses and interest, and, in addition, have been able to provide £642,267 towards reserves for depreciation and sinking fund purposes. Arapuni Works. " Work on all sections of the remedial measures decided upon, following the report of Professor P. G. Hornell/who was called in to advise tho Government in 1930, was. continued throughout tho year. The programme set was well maintained, and it was possible to raise water in* the dai\i and head-race at tho end of March last. Some time was necessary to recondition the machinery, which had b'ecn idle for over eighteen months, but the station was able to go into commercial operation again on April 10th, 1932. The works carried out appear to have been quite successful in preventing any further movement in the block of country, the tilting of which wa*> the prime cause of the station going out of action in 1930. "Since the close of the period a leak developed through the lining of the head-raco into the porous drainage system below, but it was possible to locate it and effect repairs without closing down the station. It was, however, deemed advisable to run the Auckland Power Board's plant in terms of the agreement with that Board for a short period each day to facilitate work on repairs. "The transmission lines of the Manga-liao-WaikaremOana system were completed into the Taranaki area during the year, and supply given to the South Taranaki Power Board and to New Plymouth. At the same time work has been continued from the northern end on the line which will connect this system with Arapuni between Stratford and Arapuni. Lake Coleridge System. '' Following the Jong drought in the' spring of 1930, the following year had a plentiful rainfall and there was thus no need to operate the Diesel station which had been provided to meet the overload or water shortage conditions at; Lake Coleridge. Since the close of the present financial yoar, however, there has again been a period of low rainfall, and the Diesel plant has "been opcrat'od on two shifts per day since the beginning of August. There is now no prospect of difficulties occurring such as occurred in 1930, but with the presont loading on the system it will probably be necessary to run the Diesel plant for a portion of the year in any but a very wet year until the Waitalii plant is completed. Waitaki Development. "Work was continued without interruption at Waitaki, though, particularly since the end of the financial year, it has been necessary to make some curtailment in the rate of expenditure in order to keep within the funds available. Though this will mean some delay in the date of completion, it will not nocessarily mean any great inconvenience to power users, as in the area lo be supplied there has been a small reduction in the amount of power' used rather than an increase. .Most of the work done during the year has been on the Otago side of the river and in tho power Btation. Unfortunately, the rock m a section on .the Otago half of tho river has turned out to be rather poor on one section, with the result that excavation has had to go somewhat deeper than originally contemplated, with consequent increase in concrete quantities j*ud costs. Electric-Supply Operating Accounts. "Horahora-Arapuni-— As was mentioned in last year's Statement, the Arapuni plant has been considered as under construction during the year, and the operating account has boen charged with interest for the year only on such of the lines and sub-stations as were in ff i on or using power con^s°^° r f, 0r other Power stations fhefinancial position mav be summarised as under i Capital investment (total) * Bevel: 11 " ° f year " Operating eases' '/ ffijjjj* " f Baksce •• •• £46,881 lTcfeS fS tw" geß ' but ' not being «ufU "Lalfe USM? ™„,f Colerid &e-Although the revenue does not show the cuftomarv in crease over that of the preceX vear" it was not necessary to 3 ye A' Diesel plant yea? wi?h ° result that the tS the year are again very satisfactory £ Capital investment at end' of „ yCar •• •• 3,802,497 S e ™ •• ■.. 218 106 Operating expenses .. 37 245 . Balance .. . ... " 180>95 l "The balance.has been used in pay--1 ment of interest, £12,500 has been paid

to depreciation aeeount, £18,062 to •* sinking fund, and £76,905 to general* „: reserve. The scheme has now an acv * cumulated depreciation icsorve or •• £211,752, a sinking fund of SiSifit* (of which £110,242 has burn used mie-., * demption of loans), aud a general » serve of £174,249. •* "Mangahao-Waikaremoana—ln spiw of the depression the scheme continue*;. ■ ■•' to show some small improvement in its - financial position, ;. £-''"*' Capital investment at end of £ U» :: » '«£ „ Operating expenses ~. * B > Balance ~ •• 231 ' 125 ' j . "The balance has boen used in pay* <|'; ment of interest, and has, in additjM, J allowed a payment of £48,347, or ■Allr | 334 short of the statutory provision, »;.,.£ the depreciation account. ';._|: Price of Power Supplied. u;^ '•Throughout the year at various?, times the Department has been f K ?fe to make reductions on the prw* flart. power supplied in bulk, partindaiiy Wp the smaller Power Boards, no that Offib should obtain the same rates at[ »™£HH plicable to the main centres. AitnWßAg the Government is anxious to doi evequ* thing possible to bring down the wg of living, it is regretted that it not been possible to comply with m& request.' Government action » W« directions has, however, enabled Pftrtjjj Boards to effect economies in *"&& cases by reductions in interest xMgJ" and in wages, which have been P 8 on to the actual consumers. -, "It has to be remembered that ofe. far the greatest part of the cost »?| the Government of supplying in bulk is made up of capital «*l««3\f on its investment, and, as the "w™&i| has practically all been raised »W°*'S it.has not itself obtained any from reduction on interest rates. has, moreover, been supplied ift »f;f past at such reasonable rates that actual retailers of electricity have, «£* the average, been able to bring thg|| own financial positions into a W condition than is that represented _ efegg the Government's own Electric S. tt Pg« Account. In tho general cry *« ™J| duction the ■ fact is often overtoeWfcrf that since Government schemes into operation very considerable tions have already, been made » average price per unit paid by the co^||| Snccees Claimed. , ''i| '' Where there is in all cases one ply authority, and in many case* '*ps, supply authorities, between the Gow»« ment system and the actual of electricity, a uniform price for pwjTWj supplied in bulk by the CtoTtfl««WJ;A does not by any means necessarily bw»» j that the actual consumers are all to obtain power at the same Some authorities havo existing pl*» on which they still have to pay * ft F"*',.s> r charges, the cost of distribution consumer and per unit sold varies V»" ; -t considerably in different localities, ana i- E some authorities havo different wjv& from others as to the reserves rjJ;'l should establish or as to the they should adopt in disposing «* *?£?'£' profits made. The present system Wf* s not be absolutely equitable, bst « «*$ reasonably be claimed that it nM ,'JfIS ? }l successful. As compared with tions existing before tho advent «f jtM* Government scheme, it has b 3 rO WSJ.n down the price of electricity *» •> *'-. places where electricity was pW»»WK!^ 1 used, and it has made electricity * , able at a reasonable cost to tbott**"?*-] off consumers who otherwise «» possibly have availed themselves benefit*.'* -< ! ' s " ' -'"^