HYDRO-ELECTRICITY

Hawera Star, Volume XLVI, 21 August 1926, Page 9

HYDRO-ELECTRICITY

DEVELOPMENT IN DOMINION.

REVIEW OF PROGRESS HEAVY CAPITAL EXPENDITURE. (By Telegraph—Special to The Star.) WELLINGTON, Aug. 20. A prominent place (was given ini tlie Public Works Statement, presented to the House of Representatives to-night by the Hon. K. S. Williams, to the hydro-electrical development of the Dominion. , The year just completed represents the, fifteenth year since construction work on the department’s first hydroelectric development was commenced. Reviewing the propress made in that time the Minister said: The capital expenditure at March 31, 1916, the first complete, year of supply, was £362,000; at March, 1921, it had; grown to £1,072,000; and by March, 1926, to £5,134,000. The annual revenue, in 1916 was £BSIB, in 1921 £66,178, and in 1926 £287,942 .per annum. FUTURE DEVELOPMENTS.

The completion of the- large works at Arapuni and Waikaremoana, with consequent extensions to .trail-mission lines and sub-stations, aiS provision of extra plant n.t Arapuni, will require very heavy expenditure for. the next three years. In addition to this the growth of load on the Lake Coleridge system is l such that it will apparently be necessary to make :a, start with the construction) of an additional source of power in the south, probably within about a. year’s time.. These developments will call for an expenditure of at least £1,000,000 per year for the next four years; and, although there is little doubt but that- tihe hydro-electric development carried out to date has been an unqualified success, it is doubtful if the country would be justified in continuing expenditure for a, much longer period at this high rate. This is all the move evident 'when we remember that for every pound expended by the Government on generating works,an eaun.l or greater sum has to be expended both hv the distributing S'Upmly authority and by the tactual con.'r.rneir before the power can he fully utilised. It is true that in the North Island in particular the Government rate of expenditure can he. very considerably v e,cloyed after the three main key stations are in operation—there l will be extensions to he made from time to time ; whilst in the South Island there will still remain further sources to be developed before we can attain to the ideal of making power available to over' 1 one within the Dominion, who -a.it be nut within reasonably economic distance of the transmission system. We may oermit the annual expenditure +o be reduced after about four years’ time, but as far as can be seen at ->rr,cent it cannot lie allowed to- stop, -nd must continue at somewhat reduced ra,t» for manv years to come.

As the Government .scheme of supply •>rovicies generally for bulk supply to nmnl authorities and leaves the actual dis+rilmHon and sale of power to those -ytlmvities. the capital expeodthire indicated above Is onlv r>. part of the fetal capital involved in the actual distribution of power to the actual con"uma"c. Thus’ in 1916 +he supply authorities connected to the Government sunmlv had a, capital investment of oono 600. i n 192.1 £600.000 ,and in 1926 06.500.000. approximately. OPER A TING RESULTS. Lake Coleridge. £ Capital investment ... 1,366,951 Revenue 123,354 Operating expenses ... 27,035 Balance £96,319 This balance has been used in paying interest charges, together with 2 per cent, depreciation, .and has left a profit on the year’s operations of £26,646. This has been used in wiping off the (accumulated deficiency on the profit and lows account, amounting to. £17,739, .and has in .addition, enabled a contribution of £5,907 to be paid to the Sinking Fund account. This .scheme now has"a. depreciation l fund of £11,536 and a sinking fund of £8,907. Horahora. £ Capital investment ......... 735,091 Revenue 85,830 Operating expenses 19,612 Balance £66,218 The balance has been used in paying interest and depreciation, and lias left a profit of £21,348 for the year. This has been used in paying £11,342 to linking bund Account, and a further £IO.OOB to reserves. This scheme has now a, depreciation fund of £46,444, a- sinking fund, of £28,939, and a. reserve, fund of £30,554. Wa.ika.rem oaxia. The s.irLiill initial pmaurb (1000 kilowatts) at this scheme has been leased to the Wairoa. Power Board, and is being operated by it, pending being taken ever again by the department when construction work on the main development is well under way. The caiptal outlay is £80,564; capital charges, interest and depreciation amount to £5949; the. revenue re?eivcd Iras been £I9OT; leaving a, loss If £IO4B for the year.

Mangahao. This, the latest Government station, went- into regular operation at the beginning of the year, a,nd ; considering the magnitude of the initial development and the high costs ruling during the period in which it was built, has had e successful initial-year. The financial position may he summarised as follows: £ Capital 2,022,315 Revenue 76,857 Operating expenses, 21,865 Balance £54,992 The balance lifts not been sufficient to pay interest and depreciation charges, and leaves a deficiency of £67,291. The balance represents a payment of about 3.65 per cent towards capital charges, and must be considered satisfactory. CONSTRUCTION WORK. Arapuni. The expenditure during the year has amounted' to £329,;624, mainly on; the contract for headworks being carried on by Sir W. G. Armstrong, Whitworth, land Cb. ('Limited). Fiair progress has been, made during the year, though it has been retarded somewhat by severe flooding in the Waikato river. No unforeseen diiffculties have been met with, .and, although it does not appear that the contractors will bo able to complete by the specified date —August, 1927—they should not ho delayed very much beyond that date. W aikaremoana. Consequent on the rapid growth of load on Mangahoa. system, a; start has

been made, on construction work on the main scheme at Waikaremoana. A programme of work has been drawn up, by which .it is hoped to have this •scheme in operation by about the end. >f June, 1929. SURVEYS. Investigation work on various possible sources of power in South Canterbury has been continued during the year, and is still continuing. It is hoped that the Department will be in 3> position during the present year to make a jn-ono uncement on the next source to bo developed for additional power-supply to the Canterbury: and North Otago districts. After mentioning that a license had been granted for a large power development between Lake Manapouri tand Ooubtful Soain-d. for -fch-e man u fact ure of nitrates, the statement went on to say: The Department is making a fairly complete survey of tlie power possibilities in the country between lakes Te An an and Manapouri and 1 the western Sounds. The purpose of this is .not so much with the idea of immediate development for ordinary commercial and industrial requirements, but to enable definite information in regard to these large potential sources of power to be placed on record and published, with a view of attracting outside capital that may he desirous of establishing any special industry requiring large blocks' of very cheap power. The country is exceedingly rough, and the climate, exceptionally wet, so that progress on survey work has been slow. It is hoped during the coming season to obtain the services of the Defence Department to carry out aerial photographic survey of portions of the area,. POWER; BOARDS'. The various power boards buying in bulk from the Department have continued to energetically cany out their various schemes of reticulation, and have very materially assisted the Department in its general aim of making an adequate power-supply available to everybody within reasonably economic range of its lines. The whole question of power board finance and the prospect of success is now carefully reviewed by the Government, and. only such boards allowed to proceed as are considered to have reasonable prospect of success and such a® are designed and constructed to fall into the general scheme of development decided upon by .the Government.