GREY POWER BOARD

Greymouth Evening Star, 23 April 1931, Page 3

GREY POWER BOARD

PROFIT ON YEAR'S W.ORKING CHAIRMAN’S ANNUAL REPORT For the first time in the five years’ history of the Grey District Electric Power Board, the profit ; and loss account has shown a credit, there being a profit of over £4,000 on the operations during the year ended on March 31. This fact was conveyed by the Chairman (Mr. J. W. Greenslade) in the course of his annual report, submitted to the Board last evening. The meeting was the final held by the pre-

sent Board. There were present, in

addition to the Chairman, Messrs J. B. Kent, H. Duggan, F. L. Turley, W. H- Parfitt, J. Mulcare, H. G. Carter, W. Clayton and J. Smeaton. The Chairman’s report was as follows: — “The year has been one of much increased activity on the part of your Board, and. on the whole, the growth has been most gratifying. Power has been extended to the Ten Mile and Nelson Creek, and Blackball consumers are now supplied from the Board’s own plant at Dobson. For the past few

years since the inauguration of electric supply at Blackball, the power has been purchased by the Board from the Coal Company and retailed to the consumers, but despite the unfayourable conditions now prevailing in the township a distinct Saving will be

effected as a result of the present arrangement. Practically all coal iilines in the Board’s area are how using electricity for power purposes and, I understand, find it a marked improvement on other forms of power and much more economical. One' sawmill is solely operated by electricity, and, it was hoped that others would have followed, had it not been for the intense depression through which the industry has been passing during the past few years. “The Board’s major work at the present time is the construction by con-

tract of the new power station at the Arnold River site. It was hoped to have had these works in operation by now, but owing chiefly to an ‘abnormally bad season, with consequent heavy rains and floods, the work has been very considerably retarded. The scheme is now nearing completion, however, and under the circumstances very fair progress has been made. I might add that, as anticipated, the Work will be completed for very little more than the estimate, and had it not been for certain improvements in layout, which considerably added to the cost, the work would have been completed under estimate by several thousand pounds. “The annual accounts,are now ready for audit arid I am very pleased to say disclose a highly-satisfactofy posi-, tion as far as operation to date is concerned. All figures given are, of course, subject to audit. After provision for depreciation, sinking fund, and interest the year's working shows a profit, pi £8,323/15/6. This amount entirely clears the accumulated deficiency of £4,267/16/1 carried over from last year, and shows for the first time in the Board’s history, a credit to profit and loss acboupt of £4,055/ 19/5. It is felt that this amount should not be dissipated in any way, as the effects of the depression are only now , being felt by the Board, and until this year’s ■ estimates are prepared we will not have any idea of this year’s commitments and revenue. Furthermore, the Board’s revenue is of such a nature as Jo be subject to violent fluctuations, and for this reason it is .absolutely .imperative that some reserve should be created to meet sudh , fluctuations if and when they occur. I anticipate a falling off in revenue, ; partly on account of revised rates and partly on account of ’ tile times through which we are passing. This falling off will be counteracted to some extent by increased consumers, but . if must be remembered that the dis- ■ trict is much nearer saturation poirit now than it was twelve months ago, if there is such a thing as saturation point in connection with»electricity supply. It is the experience of ourselves and other concerns of a similar nature' that electricity to a cer- , tain extent .creates its own demand; it makes possible industry, the effective operation of which is only feasible where cheap electric power is avail- , able.

“Commenting on the balance-sheet I make the following observations:—The aggregate capital expenditure to date amounts 'to £218,823 While the total loan liability is £225,734, the sum of £86,205 having beep expended on hydro works. Against loan liability there are sinking funds amounting to £15,274, depreciation reserve now stands at £3,732/14/2, the amount of £1,509/4/8 having" been added this year. This amount is yet to be funded, but I suggest the decision on this question be left till the estimates are before the Board in May. A brief summary of the salient figures is given below. The amount of .sundry debtors is rather larger this year than is desirable, but this is occasioned by two large consumers owing between them the sum of £l5OO. New agreements are being completed with these consumers and this matter is being specially provided against. REVENUE ACCOUNT Power purchase;’Expenditure 1930, £385 10/8; expenditure 1930/31, £470 5/3; estimate 1930/31, £2OO. Generation: £8,004 1/3—7,979 1/ —8,273.* Distribution and public lighting: 432 5/2 — 667 5/8—615. -Management and general: 4,213 3/8—3,709 12/8 —4,771. ♦lnterest: 6,826 14/9—8,854 13/7—7,035 17/5 Depreciation: 1,052 14/9 —1,509 4/8 —1,400. ♦Sinking Fund: 2,010—3,062 15/6—2,124 15/10 Totals: 22,924 10/3 —26,252 18/4 —24,419 1.3/3*. ♦Estimates were exceeded in these eases on account of change of method in raising hydro loans. Balance Revenue A/c .1929/30, £4,267 6/1 Dr; 1930/31, 4,055 19/5 Cr; 920 13/7 Cr. Sales of current: 25,672 19/9—31,848 16/9— 29,427.

Gross revenue from all sources: 26,868 4/7 — 33,531 18/11—30,212. Accumulated sinking funds. £15,274. Accumulated depreciation reserve, £3,733. Accumulated sufplus, £4,056.

Progress of Revenue: 1926, £22/13/ 10; 1927, £9,021/7/1; 1928, £17,969/3/ 3; 1929, £20,649/18/2; 1930, £26,170/ 17/10; 1931, £33/531/18/11. Consumers: 1930, 2088; 1931, 2360. Ranges connected: 135.

“In the light of the foregoing I think you have every reason to be very proud of your undertaking. This Board has passed through most trying experiences, and the public ought to feel very pleased that no rates were collected. If it had not been for long-sighted administration and careful management there is no doubt re; course would have been made to our rating powers, but I am thankful to say that by the narrowest of margins this Course was avoided. I am not prepared to say that rates will not be collected in the future, but such a

possibility is now extremely remote as far as the revenue account is concerned. Our capital expenditure has now practically exhausted the available loan mbneys and you will have to consider in the near future the question of providing for further capital expenditure and as to the possibility of meeting this from revenue or further loan money. The cash balance in .Power Fund Account is £9,602 credit, Loan Account £867, Hydro Loan £6,944. Except for the fact that overdraft interest is eliminated the eash balance on Power Fund may be disregarded as any guidance you require is obtained from your Revenue Account balance. “In conclusion, let me express the opinion that with careful management this concern has every , indication of becoming one of the best in New Zealand, despite the fact that the annual capital charges on an idle steam plant have to be carried for .a number of years, and it should be possible in time to come to supply current cheaper than anywhere else in New Zealand.” Amplifying his report, the Chairman stated that he wished to thank members for the courteous manner in which they had on all occasions treated him while in the chair. He recognised that it was with their co-opera-tion that so much had been accomplished. He had also tb place on record his appreciation of the highlyeflicient executive officers, Messrs A. J. McDowall (secretary) and S. Trotter (engineer), and the efficient and loyal staff generally, of whom he could not speak too highly. The bal-ance-sheet was ready for the Audit Department, and that was an achievement on the part of Mr. McDowall, who had been working until the small hours of the morning, in order to have the balance-sheet ready for that meet-

ing. He also wished to thank the Press Eor the manner in which they had

Jollowed the Board’s business, and the way in which its doings had been reported- In conclusion, he thought they could all safely say that the position was far better than had been expected. He thought they might wipe the deficit off and have a credit of £2OOO on March 31, but they had exceeded that. They had been able to fund the depreciation in full, allow for all acagainst the Board, and still have a credit of £4OOO odd. In July, 1926. they got through special legislation for an overdraft of £ll,OOO, and things looked very bad at that time. In 1928-1929, the overdraft of £ll,OOO was used to its full limit. The difficulty had to-day. been overcome, and the Board had a credit. During the past twelve months, the whole of the money for the hydro loan was raised, without brokerage, and the saving made covered the payments in connection with the superannuation fund. With regard to the rates for power, it had been suggested that there should be a reduction, but he would not touch on that subject, as it was a matter for the new Board. The commercial rates (Would have to be gone into, and the staff were' preparing a statement on that subject, showing what a reduction would cost. He' thought members were all agreed" that commercial users should have some reduction. Whdn taking the figures for the yefir into consideration, it must be remembered that the superannuation i fund, to the extent of £3OO odd, had been provided for. In considering the future, they had to look to an increase in the capacity of the plant. At the present time, the Board’s capital debt was about £250,000. Members would agree that if it were at all possible to avoid increasing that to any great extent, it should be done. Small amounts might be required for the reticulation of outlying districts. It was very nice to think that they might be able to apply the credit balance in some way that would overcome the difficulty of borrowing- further money. They should consider at the next

meeting the creation of a reserve fund. That policy was being followed by Boards throughout New Zealand. The Board had a very speculative load. Difficulties had occurred at Blackball, and they did not know what was going to happen in connection with the mining load. Mr. Carter: Can you anticipate the report of 1931-1932 ? “That is rather too much to ask,” replied the Chairman. “That is the reason you want a reserve. There is,

of course, the change-over to hydro, which may be! to a certain extent costly. If you create a reserve, it could

be done under the condition that any of the money could be used in connection with depleted revenue.” Mr. Mulcare: The best reserve is to get -out in the country and get as many consumers as you can to take ypur load. The Chairman added his thanks to the Chairman of the Works Committee (Mr. Smeaton), stating that the

latter’s practical advice had been very valuable to the Board, and they were very thankful to have him in that position'. RETICULATION CLAIMS Mr. Kent said that the Chairman was to be congratulated on his very fine report. Before the Board created any large reserve, however, it had to see that its area was reticulated, and that the power it was able to generate was sold. A reserve was quite all right, when they got to a certain stage, but it was not wise to limit the reticulation.

The Chairman said they were not considering that at present. Mr. Kent replied that it must be considered. It would be far better to use the money for development purposes, rather than put it in the bank for something that might happen. It was a grand thing to see that the report showed the electrical business had increased like a showball. Mr. Smeaton also congratulated the Chairman, and endorsed the remarks regarding the staff. It had always been a pleasure to him to work with the engineer and the secretary. He felt sure that every member of the Board was pleased to see the engineer again on duty, after his illness. The workmen employed by the Board had always done their work honestly and conscientiously. He was very pleased to see that the Board had a reserve, and would not be attacking salaries or wages. Mr. Clayton said he felt sure that they should have a small ’reserve of some description. The Board had a load which fluctuated a great deal at times, and a little reserve would he very helpful; but they must hot forget that they had to reticulate the country districts as soon as possible. Before they created any great reserve, they should do that. A good, solid farming community would not give much danger of load fluctuation. He congratulated the three Greymouth Borough representatives on their reelection, unopposed, which showed .that the ratepayers were satisfied with the work the Board was doing.

He thought they had every reason to be satisfied.

Mr. Mulcare stated that, so far as building up a reserve was concerned, he would certainly vote against it while there remained any part of the area which could be reticulated. The benefit should be given to the district, and they should, as soon as possible, go out to the country districts. The big commercial users had been referred to, but they must not forget the smaller users. It was the. little things that counted. Mr. Turley said he was quite convinced "that, before any reserve was thought of, the country reticulation must go on. He was one of those who would strive to se t e that take place as soon as possible. The Board must consider country reticulation in the very near future, and without the guarantees that some of the Board members insisted On.

The Chairman: I am afraid that if we had carried that into effect, we would riot have any surplus to-day. Mr. Turley remarked that a surplus without consumers was not necessarily a good business proposition. In reply, the Chairman stated that he had very decided opinions with regard to the establishment of a reserve. It would only, be making the position safe, so far as the Board was concerned. The work in the country districts had been considered, and would be carried out as soon as possible. The Board had to protect itself while the going was good, for fear times would come when money, was urgently required. Any business that, was worth-while at all should look after itself in that respect. Mr. Turley: Times cannot get much worse. ~ .. “We have not felt it yet, said the Chairman. Mr. Turley stated that he knew hundreds of families on the West Coast who had suffered. . Mr. Smeaton: The West Coast is the best part of New Zealand to-day. “That is not saying much!” retorted Mr. Turley. , On the motion of Mr. Kent, seconded by Mr. Clayton, the Chairman’s report was adopted. ENGINEER’S REPORTS. The engineer (Mr Sinclair Trottei) reported as follows for the peno , March IS to April 22, inclusive. Generating Station. —The units erated for- the period March 14 to April 20 were as follow: —Week ending March 21, 99,190, maximum load 1020 k.w.; March 28, 99,490—1120 k.w. ; April 4, 97,520—1,080 k.w.; April 11, 91,320 —1060 k.W.; April 18, 105,450— 1,040 k.w.; total (five weeks) 492,970 The maximum half-hourly demand during the period w r as 1120 k.w., the highest weekly load factor being 60.35 per cent, and the lowest 48.86 per cent. , Consumers. —Since last Board meeting ten new applications for supply of power have been received, making the total to date 2422; 42 new consumers (including Paparoa) have been connected, bringing the total number of consumers up to 2400. Extensions and alterations to 3 installations have been carried out. The connected load for the period is as follows, including three electric ranges:—Righting 16.995 k.w.; heat and irons, 37.600 k.w.; water heating, 1 k.w.; power, 24 h.p.; cooking, 20 k.w.* Previous: — Lighting, 896.510; heat and irons

1439.090; water heating, 111; power, 3162; cooking, 991.4. Totals: Lighting, .913.505 k.w.; heat and irons 1476.690 k.w.; water heating, i.u k.w.; power, 3186 h.p.; cooking, 1011.4 k.w. Total load for period, 94;. total load at last meeting, 5764; total 5858 k.w. ' . . J. Reticulation— Paparoa mine arid village are now taking supply irpin. the Board, and Blackball townsMp supply was transferred to the Board) s system early in the month. The Blackball mine is also connected with the Board’s plant for the supply of la limited amount of power when available. The outside gang have been engaged connecting new consumers aid on general "maintenance work. Owii g to' road-widening operations by the Grey County Council on Omoto Road, four or five high-tension poles are in danger of coming down through slips, and it is proposed to put in fresh poles and transfer the wires}. This will be done with as little inconvenience as possible to the town consumers. The report was adopted. The engineer also submitted his annual report for the year ended Mardh 31, as follows: — Power was first available in April, 1926, so that the year under review is the fifth year of public electricity supply in the district. The maximum half-hourly demand on the Dobson generating station has now reached 1200 k.w., peaks in the neighbourhood of this value occurring regularly oin normal working days, hence it , has been necessary during the year ti(ocontrol certain loads at times in orde>r to keep ' the overload on the plant within reasonable limits; howevey, . this has been done without serious inconvenience to any consumer. No seri-

ous interruptions in the supply occurred during the year. It is interestjing to note that all the interruptions were from causes arising in the transk mission system, principally due tp contacts or lightning flash-overs 'durjing bad weather. The generating sysn tom has operated very satisfactorily during the year, and for its size the results favourably with those of any similar station to ( be found elsewhere. The units generated amounted to 5,131,670, and the coal consumed was 7576 tons, giving a consumption of 3.2551b5' of coal petunit generated. Renewals to boiler furnace brickwork accounted for the heaviest item in the upkeep expense, but no other major repairs or were required. The following extensions to the 11,000 volt transmission lines, along with low-tension mains where necesjsary, were carried out during the year:—Extension from Rapahoe (Seven Mile) to mines in Ten Mile Creek,extension from Ngahere tq Nelson Creek, extension from to Blackball and Paparoa, extension from Stillwater to Kaimata hydro electric works. Numerous short ■ exi tensions to the low-tension mains were built to serve new consumers,-and additional carrying capacity in the’lovlr tension mains was provided where inicreased load made this necessary? Transformer sizes were increased at Blaketown, Runanga, and Recreation Ground sub-stations. The following figures show the loa<> conditions from April 1, 1930, to March 31, 1931, along with the figures? for the previous year: — Capacity of generating plant April 1 1929 ■fo March 31, 1930. 1000 k.w.; April 1 1930 to March 31, 1931, 1000 k.w. ?

: K.W.H. generated April 1, 1929 to-March 31,. 1930, 4,351,454; April 1, 1930 to Itfarch 31; 1931, 5,131,670; increase 18 per cent. K.W.H. used for operating power house aux.: 415,465 —443,424—14.85. „ n K.W.H. fed to transmission system: 3,936,080 ‘—4,711.010—19.7. ; K.W.H. purchased: 52,873 —64,493. Per cent, used in power house auxiliaries: J Tons of coal consumed: 6,487 —7,576—16.8. Lbs. of coal per K.W.H. generated: 3.34— 3.255 —2:75. (Decrease).- ‘ Maximum half-hour demand on generating station: 1,100 k.w.—1,200 k.w.—9.1. (Increase). Annual load factor, per cent.: 4546—48.82. > K.W.H. sold large power consumers: 2,481,199 _2 934 284. K.W.H. used for street lighting: 112,000 of consumers at March 31: 2,110 Total connected load at March 31: 5,764. ' ’ A t , The report was adopted. HYDRO CONTRACT. The consulting engineers (Messrs Yickerman and Lancaster) reported as follows on the progress at the Arnold Oliver hydro-electric works during the five weeks since March IS:— . ‘ Weather.—Three weeks’ very bad Weather with almost continuous floods in the river have been experienced, and this has seriously delayed work. Dam. —On the left bank concreting has been commenced again, and op. the right the excavation of foundations is in hand. ■* Intake.—The temporary dam ip front of the intake was carried away by the floods, thus stopping Work and allowing a large stream to pass through the tunnel. The dam has been restored and the intake practically completed, except for fixing the permanent gates. Tunnel.—The work of cleaning up was commenced, but was stopped by the flood. Pipe Line. —Shingle is in hand for

completing the gap, and this is to be done at once. Power House.—The erection of the machinery is in hand, one tyrbine being ready for the generator and the second nearly ready. Tail Race.—The drag scoops have worked fairly reg-ularly and have made fair progress, but the floods have interfered with the party trucking out at the lower end. Men Employed-—Messrs Sparks Ltd. have employed an average of 61 men, with a maximuni of 82. Transmission.—Mr Butler’s contract is completed and Messrs Reyrolle, Ltd., are erecting the switchgear at the Kaiata sub-station. Mr Mulcare asked if the delay through bad weather mentioned in the report would add to the time for the completion of the contract. Mr Vickerman replied that floods did delay the work, and the recent trouble had added materially to the time it would take, if everything went well now, the work should be completed in about three months. Mr Smeaton: Under favourable conditions? ' ' ’ ’ "■ ’ Mr Vickerman said that the tatilrace should be kept going, even if the conditions were not too godd, but the dam would be delayed if floods occurred. Mr Clayton: How long will it take the contractors to complete the dam under favourable conditions? Mr Vickerman said that it should take about three months. The report was adopted. Mr Duggan voiced a complaint regarding the frequent failures of the >S? et ! lghts at Runanga, for which £4 per annum was being paid, and

said that it would cost that ippch to keep a man putting the lights on again when they went out. Three or four of the lights were out at tlie present time. The Chairman jokingly remarked that the rate would have to lie increased, to meet the extra cost."” • Mr Smeaton said that Brunner was - getting good service since the engineer made some alterations. Mr Duggan supplied the engineer with details, and Mr Trotter undertook to investigate the trouble. The Chairman referred to the approaching elections at Brunnerton and Runanga, and said that Messrs Smeaton and Duggan had been very fine members of the Board. They de- . served the confidence of the pepple they represented, . and he wpjild Ws® to see them both re-elected.