BOROUGH ELECTRIC PLANT

Feilding Star, Volume 2, Issue 316, 21 August 1924, Page 8

BOROUGH ELECTRIC PLANT

PBOPOSED SALE TO POWER. BOARD.

DETAILS OF TENTATIVE

AGREEMENT

Following are the details of the tentative agreement as arranged by the committees of the Feilding Borough. Council and the Mnna-watu-Oroua Power Board, for the sale of the Feilding electricity undertaking, as prepared lor submission to the Council at its next meeting : I.—The Feilding Borough Council shall sell and tfiQ Manawatu-Oroue Power Board shall purchase the following assets of the municipal electrical installation shown in the Council's balance-sheets of March 31, 192.1, viz.: (a) freehold land £l5O and engineer's residence, £950 13s; £llOO 13s; (b) station plant, £10,749 2s 3d; (o) lines, £7700 12s 9d; (d) batteries, £OB9O 7s 8d; (c) buildings, power station, £2104; (f) meters, £2301 Is Id; (g) transformers, £1.780 9s 10d; (h) office fixtures, £4O 10s od; (i) preliminary expenses £2418 10s 4d; (j) cash at bank (o/a capital). £"470 Gs 8d; total, £41,700. 2. —The Council's rights to sinking fund established for the purpose of repayment of loans mentioned in clause 5 hereof shall he transferred to the Power Board. 3. —All book debts owing to the Council and incurred up to the 31st March, 1921, shall belong to the Council and shall not be included in the purchase. The purchase money to be paid by the Hoard on the basis.' of the above figures shall be £41,700, less amount of sinking funds as at 31st March, 1924 (which sum is hereinafter called the purchase money), subject to any increase, decrease or any other adjustment thereof as hereinafter appearing. 4. —The Council shall sell and the Power Board shall purchase the stock, fuel, lamps, fittings, etc (purchased out of revenue) at a valuation to be agreed upon by an officer of the Council and an officer of the Board; failing agreement an independent valuer to be called in; such .cum agreed upon to he added to the purchase money. 5. —The Board shall, subject to the Minister's approval, take over the Council's fixed loan liability in respect of the said installation as at 31st March, 1924, and shall thenceforward pay all interest, principal, sinking fund and other liabilities in respect thereof, including d-jnon-tnres at maturity. 6. —The Board shall pay in cash to the Council for all stock purchased or any necessary adjustments at date of taking over. 7. —In case the fixed loans cannot be taken over, then all the purchase money shall be paid in cash. 8. —The purchase money shall be increased to include, all increased capital expenditure as from 31st March, 1924. 9.—The Board shall not charge borough consumers a higher tariff for lighting and heating and power than the lowest rates charged in other parts of the. Hoard's district for similar consumers, and shall not in any event penalize them or charge them higher rates than the lowest rates in other parts of the Board's district. 10.—The. Board shal 1 not penalise borough ratepayers by striking in the borough any rate on the unimproved or improved value of their property higher than the lowest rate struck over any part of the Board's reticulated area. J.l.—The allocation of K.W's for light, heat and power to the Council and borough consumers, shall not be less than is sufficient to meet present consumption, and ful ure needs. 12. —Street lighting: The Council shall pay the following rates for street lighting, viz: All lamps at present below 100 watts at the rate of £3 each per annum. All lamps at present 100 watts or over £3 12s Od per annum. All new lamps of 100 watts £3 12s Od per annum. Present lamps below 100 watts if raised to 100 watts to he. £3 12s Od per annum. The above charges shall include current for lighting, installation and maintenance of all poles, wires, cables, switches, lamps and everything required to maintain an efficient street lighting system, provided, however, that the above prices shall be subject to reduction on a. pro rata basis in the event of the Board reducing its tariff charges for light or power in any other part of the Board's reticulated area. Provided further that in the event of the Borough Council requesting the Board to instal additional street lights the Board shall erect such lamps when and where desired by the -Council. The Board shall switch on all street lights o.t astronomical sunset every night hi the year and shall maintain such supply until astronomical sunrise every day. The Board shall not substitute lamps of less candle power than those at present in use. 13._50 ] oug as the Board shall continue the said lighting the Council shall not nor will not hereafter •establish any other' system, of lighting in the borough of Feilding.

14.—Post Office Clock: Wholesale tariff to be charged for ' lighting same.

45 The Council's accounts up .to and at 31st March. 1924, «is passed by the Government Audit Department to be. final and binding. >f the audit' has not been made up by the 30th July, 1924,, the purchase shall nevertheless be settled and all moneys due to the Council shall then be paid, but any necessary adjustment consequent on the said audit shall be made when the audit lio« been completed. The Council wil' supply the Hoard with detailed list? of stocks as at 31st March, 1924, and further information as may he desired.

10.—The Council shall transfer tu the Board section 484, Eyre street, about half acre, on which the power house and buildings are situated, also section 478 with dwelling bouse erected thereon. 17 The Power Hoard shall make all alterations it deems necessary to change the system from single phase to three phase free of cost to borough and replace if necessary nil single phase motors with three phase free of cost to the consumers. 18.—The Hoard shall not be liable for any failure or deficiency in the supply of electricity caused wholly Ivy strikes, lockouts, or other cause-' beyond its control, but the Hoard shall at all iimes, fake all reasonable steps and use all reasonable means to ensure a continuous supply of electricity to the Council and borough consumers, nnd to minimise the risk of such failure or deficiency and the loss or delay arising therefrom. 10.—The Hoard shall take over the. Council's electrical undertaking as from the 31st day of March, 1924, arid the nett profits accrued to the date of the actual taking over shall be handed to the Power Board. 20.—The charge to be allowed the Council for administration from the Ist April, 1921, until the date of taking over shall he at the rate ut £4OO per annum. 21.—The Council shall pay to the Public Trustee out of revenue all sinking fund contributions falling due up to and including 31st March, 1924. 22. The Council shall pay all interest on its loan debentures up to 31st March, 1924. 23. —The Council shall transfer the license field by it from the Government to tho Board and shall not apply for a further license. 24. —House Wiring: If the wiring of consumer*' premises in the borough of Feilding wlien installed was of a standard that conformed to the Fire Underwriters', requirements for insulated single phase 230 volt, the*.. the cost of any charge. in the consumer's installation due to the advent of three phase, or to any regulations made by the Power Board, shall be. borne by the Board. 25.—The Hoard shall take over control as from the 30th September, 192.1, 26. —The present rates charged by the Feilding Council for lighting and power shall be continued until 30th September, 1924, after that date the charge shall be the lowest rate charged to similar consumers in the Hoard's district.

27. During change over the supply of electricity must be maintaineed bv the Power Board.

28.—This proposed sale and all its terms are subject to confirmation by the Feilding Borough Council and Manawatu-Oroua Power Board, and also subject to obtaining any other necessary legal sanction by consent of the Governor-General. With regard to loan moneys.—The question of repayment of Loans is referred to J. A. Nash, Esq., M.P., to interview the Minister.