ELECTRIC POWER SUPPLY.

Hawera Star, Volume XLVI, 21 May 1926, Page 2

ELECTRIC POWER SUPPLY.

SOUTH TARANAKI SCHEME

YEAR’S PROGRESS REVIEWED

BOARD’S ANNUAL MEETING

The first annual meeting of the South Taranaki Electric Power Board was held at Hawera last evening. There were present: Messrs L. A. Bone, J. B. Murdoch, N. C. Innes, E. A Washer, E. Long, E. A. Pacey, and H. S. Elliott, (secretary). Mr. J. Houston, solicitor to the board, was also in attendance. An apology for absence was received from Mr. J. E. Stevenson. Mr. Bone was re-elected chairman. CHAIRMAN’S REPORT.

An interesting report, in which the preliminary negotiations leading to the constitution of the South Taranaki rhectrie Power Board in April, i'J2o, were briefly traversed and tue hoard’s operations and intentions were reviewed, was presented by the chairman and adopted by the meeting. The report was as follows: ‘"This electric power board district was originally constituted as a protective measure. The five local bodies, namely, Hawera Borough Council, Hawera County Council, U aimate West County Council, Normanby Town Board and Manaia Town Board, whose lands lie in the board’s district, objected to a proposed inclusion of the greater part of their territories in the district of the Taranaki Electric Power Board The local bodies had certain lights and were determined to preserve them. When, in September, 1923, it was notified in the press that application was being made to the Governor on the lines indicated, the local bodies prompt, iy took steps and waited on. the Minister in protest. Further conferences ensued, -fclie necessary legal steps were taken, and by a proclamation dated April 24, 1925, the South Taranaki Electric Power District was duly constituted. Representation on the board was apportioned by Order-in-Council of May 25, 1925, and the first election of members of the board took place on June 26. The board now meets monthly in Hawera.

“All the rights of the local bodies and of the ratepayers are kept open and are preserved. The board is absolutely free to acquire electrical energy in the best and cheapest market available —it is not bound to anyone in any way whatever, and is guid. ed solely by the best interests of the ratepayers. The source from which the board should aerive its supply is quite an open matter. The formation of the power district and the board, does not commit the board or the local bodies or the ratepayers to anything or to any body, but leaves them all masters of their own houses with all their rights preserved.'

SUGGESTIONS EOR SUPPLY

“Matters in regard to supply of electrical energy cannot stand still —the Government has schemes which are widespread, and which ultimately wlil embrace the whole North Island. “The board was not long in existence when it found requests being made for power. Various suggestions were made. The Opunake Board was to reticulate and supply an area on the Skeet Road to the dairy factories near the Auroa Road; the Kaponga plant was to supply the Auroa, Mangawhero, and Rowan Roads and the Manaia Road in part, and other kindred suggestions had consideration. There were both practical and legal objections, and a series of small local loans would have been necessary... The board, in the best interests of all of its ratepayers, decided not to permit these, but to explore something in the nature of a comprehensive scheme under which its whole district could be supplied at a much cheaper cost, if possible. Whether that comprehensive scheme will eventuate, and the actual lines of it, will be determined by inquiries now on foot and being diligently prosecuted by the board. “The board will require to see a sound proposition in the' way of a regu_ lar supply of power at reasonable rates before it puts a proposal to the ratepayers. When the board is satisfied with a proposition involving any expense, it will put the whole matter to the ratepayers in the way of a poll, and the fullest possible publicity will be given to every detail.

“Such matters necessitate the services of a first-class electrical engineer. The board has been fortunate in securing as its engineer Mr. T. R. Overton, who is thoroughly well vouched for as a capable and experienced electrical engineer. The board 1 will have the advantage of his experience and advice. Further, before any scheme is submitted to a poll, the whole details of the proposal will he placed before the Pub_ lie Works Department for scrutiny by its engineers. The board will, so far as is possible, take every precaution to ensure success.

OPTION TO PURCHASE.

“By the Hawera County Electric Lighting Act, 1902, the Hawera County Electric Company, Ltd., is empowered to supply electrical energy within its defined area of supply. Certain local bodies, namely, Hawera Borough Council, Hawera County Council, Normanby Town Board, and Manaia Town Board (being the local authorities having jurisdiction within the company’s area of supply), were given certain rights by that statute Since th. 4 Act was passed there have been alterations in the territory under the control of the local bodies, the most important being the creation of the Waimate West county, which was originally included in the Hawera county.

“The rights given to the local bodies by the statute are in the nature of an option to purchase. That option is exercisable on giving six months’ notice to the company at any time after the expiry of 2 5 years from the date of the Act coming into force — that is to say, the right is exercisable after September 13, 1927. “The terms of the purchase are defined in the Act as payment of the value (at date of sale) of the undertaking, land, rights, buildings, materials and plant of the company suit, able to and used by it for the purposes of its undertaking—the value in case of difference to be determined by arbitration. “The board decided to explore this avenue of supply, and to that end met the directors of the company in preliminary and friendly discussion. With the concurrence of the directors, the board’s engineer has commenced a careful investigation of the company’s

plant and reticulation. Nothing is being done hurriedly, but the position of this plant and of other available plants within our district and outer area is being carefully explored. FINANCIAL PROPOSALS.

“Of necessity, expenses are being incurred in ' investigating the various plants r§f erred To, and, in addition, the preliminary expenses of the formation of the board are to be met. These are not heavy, and it lias .been sought to finance them in the cheapest possible way. There qr© also the expensess of the ensuing year to be considered—the engineer will he actually engaged on his investigations. “All these can be met by arranging an overdraft with the board s bankers. Steps have been taken in this direction, and the Minister has approved of the board having an overdraft of £2OOO with the Bank of New Zealand. However, to support this it is necessary that an appropriate rate be struck as security for the overdraft. As a one-third margin is insisted on, a rate has been computed at one-eighth of a penny in the pound, on "the. capital value of the land in the district, and will yield £'3loo 8s 9d. “Although the board is proceeding to strike this rate, it is not proposed to collect the same during the present financial year, i.e., the year ending March 31. 1927. The hoard hopes that if matters progress satisfactorily there will be no necessity to collect the rate at all. The board hopes that in the event of a comprehensive scheme being adopted, it will be able to follow a 'course authorised by statute and clear off the overdraft from such moneys as would be raised by way of loan. Of course, if circumstances require it, the rate would have to be collected,” said the chairman in conclusion.

PROPOSED RATE.

The formal resolution was passed authorising "tiro notification of iivton—tion to levy, if required, a vote ox one. eighth of a penny in the pound sterling on the improved value of all rateable property within the hoard’s district the' rate when levied to he collected by the local authorities in the constituent district.

ASSOCIATION MEMBERSHIP

In a letter forwarded in reply to the board’s inquiry, the secretary of the New Zealand Electric .1 ower Boards’ Association outlined the objects of the association and the oenents to lie derived from membership. It was unanimously decided to apply for membership.

INQUIRY FROM MOKOIA

In continuance of previous inquiries, the secretary of the Mokoia and District Settlers’ Association (Mr. R. A. Richter) wrote requesting information as to the possibility of reticulation being extended to Mokoia. The chairman mentioned that at present Mokoia was in the outer aiea of the board’s district. On the motion of Mr. Murdoch it was decided to reply that the board was arranging for a canvass of the whole area, upon the completion of which the board would be in a position to farther discuss the possibility of supplying current to Mokoia. Accounts totalling £6OO were passed for payment.