WAITAKI POWER BOARD

Evening Star, Issue 21709, 2 May 1934, Page 6

WAITAKI POWER BOARD

PROFIT ON YEAR'S OPERATIONS FURTHER DISCOUNTS FOR CUSTOMERS The annual and monthly meetings of the Waitaki Electric Power Board were held yesterday morning, there being present the chairman (Mr R. Milligan), Messrs J. M’Diarmid. J. D. Rutherford, J. Newlands, It. B. Meek, W. S. Crombie, A. M'lnnes, J. M. Forrester. Power fund account credit, £355 14s 4d. Electricity loan account debit, £228 7s. Comparative cash receipts for March, the figures for the corresponding month or last year being given in parentheses:—Current, £1,819 5s Id (£1,738 Is 7d) ; sundry debtors for fittings and house wiring, £474 4s Id (£236 -3s lOd) : cash sales, £27 3s (£32 6s 8d). Totals, £2,320 12s 2d (£2,006 12s Id). At March 31 the total sum of advances under new range ♦terms amounted to £1,948 5s 3d, and by payments this had been reduced to £1,433 18s 9d. Cash receipts for electricity for twelve months ending March 31 show as £29,268 11s 5d for 1934, as against £27,828 2s 2d for 1933. The Finance Committee recommended that a uniform charge of 10s per chain inside the boundaxy as part cost of the additional service line be added to the charges for converting water beating to the pilot wire system.— Adopted. The Finance Committee recommended that, if requested by the Oamaru Borough Council, application be made to the Auditor-General for investment of £4,100 of' the reserve funds in Oamaru Borough Council’s short-dated debentures of the premium loan.— Adopted. It was resolved that inquiry be made of the Public Trustee for the investment of £5,000 in the common fund. — The Public Trustee advised stating that the reserve fund could be invested in the common fund under certain conditions, with interest at the same rate as is allowed on sinking funds (the present rate being 3J per cent.). —Received. ' It was decided to . recommend that £3,000 be invested in Government' debentures at 3J per cent, interest, maturing November, 1941, aiid that £I,OOO be invested in the _ Public Trustee Common Fund on his stipulated terms. Accounts amounting to £3,962 9s lOd (power fund £3,256 11s 7d, loan account £705 18s 3d) were passed for payment. It was decided that the board should not finance the purchase of other than approved makes of ranges. The Audit Inspector wrote advising that applications for_Order-iu-Council to invest reserve fund in Oamaru Borough Debentures must be authorised, and also acknowledging the board’s letter to the Under-Secretary, Public Works Department, making application for Order-in-Council.—Approved. , ANNUAL ACCOUNTS. The annual accounts showed a surplus of £1,719 12s 2d, as against a deficit of £971 8s 4d for last year—an advance of £2,691 0s 6d. Although a reduction Of £B9 was, made for street lighting and increases were:—General jcooking and lighting £825 2s 9d, commercial uses £329 14s lid, motor £449 7s 4d. The net increase Of £1,515 5s Id was mainly accounted 'for. by • increased cooking load in‘ both'domestic and com-‘ mercial use. Income from interest, due to the lower rate on fixed deposits,'.decreased by £149. The net prefit was not unduly large. Cost of installations and repairs was £174 13s sd, an increase of £37 12s Bd. In addition a reserve of £l5O 7s 6d had been set aside in respect of sales on hire-purchase agreements. The, total sales were £5,401 3s 7d, so that the net profit was not unduly large. Cost o_f_ Government power increased by £779, but a reduction in generation costs of, £546 left a net increase of £323. Cost -of distribution decreased by £329, principally in wages and transformer maintenance. The maintenance of public lighting increased by £34, management and general decreased by £458, almost -wholly due to salary reductions. Reinspection costs were lower by £46, due to the transfer of the inspector to installation work. This year there was no election, nor rebate to staff on current. this reducing expenditure by £lO2. Statutory interest reduction made a saving of £Bl9. Depreciation allowance on a greater value of assets was increased by £75, and A.M.P. repayment 1, increased by £36. The balance of cash in the power fund account was £7,567 11s lid, of which _ £5,884 would be absorbed as a premium on conversion loans. The balance of loan moneys in hand stood at £5,429 12s 4d, from which sundry creditors, £391 14s lid, must he paid. The effective balance* for new work was therefore £5,037 17s ud, plus any refunds from sundry debtors. CITY AND RURAL POWER CHARGES. , The Chairman asked if the board intended to protest further against the differentiation of Government power charges as between cities and rural disMr M'lnnes considered that both city and rural areas should he on a uniform rate. , ... Mr NeWlands said that the cities, by close reticulation, had an advantage oil the rural boards. They had the sup*port of some of the larger cities on the matter at present, but it behoved all rural boards to strenuously oppose any action anent the granting of new contracts to the cities, and ho moved that a letter of protest be forwarded to the

Government against the making of new; agreements with the cities. Mr Meek seconded the motion. Mr Forrester said the whole trouble was Dunedin, which had been brave enough to make a system of its own, resulting in cheaper power. The other cities wanted power as cheaply, and would fight hard to get it. The motion was earned unanimously, and it was decided to advise both members of Parliament for the district of the board’s action. On the motion of Mr Forrester Mr MTiines was appointed to the Finance Committee. CHAIRMAN’S ANNUAL REPORT. The Chairman reported: I am pleased to say that a net profit of £1,719 12s 2d has resulted from the year’s operations, as compared with a loss of £971 8s 4d for the previous year. This is an improvement of £2,691 0s 6d. The gratifying result is due to savings made in working expenses and in interest, also to a steady building up of the load due to -a growing appreciation _ by the, public of the benefits of electricity and of the attractive rates charged for it, .j while the financing by the board 'of i customers’ installations, where ' re- J quired, has in many cases removed the | last obstacle to participating in the ad- ! vantages of its use in the home or on ,j business premises. lam sure that the , continuation of the board’s liberal : policy will add further to,the demand j on our system, and, if the necessary di- j versity is obtained, it will result in | cheaper rates still being obtainable by T all the board’s customers, for I have 1 no doubt that the resolve to return to consumers the profits made from year' to year in the shape of lower charges will he adhered to. .The aim. of the board is to give an ample and satisfactoiy service to the district at lowest possible rates. Of course this involves an obligation on the board to efficiently administer its affairs so that the best results will he obtained. The-board is alive to the necessity of maintaining the physical assets of the system in good order. Adequate provision, therefore, for depreciation and for renewals continues to be made. The amount of cash in hand for this purpose is £16,534, while the general reserve fund stands at £11,855. Other small. reserves amount to £l,OOl, and the power fund has a credit balance of £8,234.; Customers’ accounts, less amounts owing to sundry creditors, represent £Bl6. In addition to all this, sinking funds and repayments of loans amount, to £24.727. We are therefore in a sound financial position, and I look forward to a steady lowering of charges for current supplied to our customers. The board, representing as it does a public service) is entitled to give the community whatever benefits accrue from a careful management of a concern established in its interests and which receives from it_ such generous support. Fresh inquiries continue to be made for extensions of lines to subdistricts not already reticulated,' and wherever the load is .. promising the board will be glad to extend the service. iWo have in the capital account' for this purpose a balance of £5,037, and there are customers’ debits due to t the' fund of £2,591, while stocks on hand are valued at £4,238,' a total of £11,866. With an authority not yet availed of to raise £3,150 if necessary, the amount available for fresh extension work is adequate for some time to come. As stated, I can see ho reason why, with careful management and a progressive policy, pur business should not continue to grow, and. it is therefore recommended that all t the profits made for the year just ended should be returned to our customers by increasing the , discounts,-.on, their accounts and by reducing the monthly minimum charge for ; lighting etc.,' in the country to the same as. that in the town—from 7s 6d to 4s. The new discount for domestic and commercial uses will therefore be 25 per cent., as against 20 per cent., while there will be an increased discount on power accounts of 2i per cent. These concessions, together with some increases ot salaries, will absorb somewhat more than the surplus, but we are quite safe in drawing a little on opr 1934-3<j revenue. The board subsequently decided to increase the discounts for domestic and commercial supplies by 6 per cent, and power supplies by 24 per cent.