Hydro-Electricity

Hawke's Bay Tribune, Volume XVI, Issue 210, 23 August 1926, Page 7

Hydro-Electricity

Dominion Developments REVIEW OF SEVERAL PLANTS. BY PUBLIC WORKS MINISTER. The Minister of Public Works, the Ron. K. 8, Williams, in his annual statement says:— ‘‘The years just completed represents the fifteenth year since construction work on the Department’, first hydro-electric development was commenced, and, as I am now taking over this work from the Right Hon. Mr Coates, it would appear opportune briefly to review the progress to date. The Aid to Water-power Works Act was passed in 1910, authorising the Government to borrow £500,000 for hydro-electric development, and construction work was started on the first scheme at Lake Coleridge in the following year. Further authorisations were made by the Electric-power Works Loan Act, 1919 (£6,830,000;, and the Finance Act, 1920 (£3,500,000). The capital exjienditiire at the 31st March, 1916, the first complete year of supply, was £362,000; at Marell, 1921, it had grown to £1,072,000; and by March, 1926, to £5,131,000. Tn 1916 there was a total annual revenue of £8,518, in 1921 of £66,178,and in 1926 of £287,032 per annum. FUTURE DEVELOPMENTS. The completion of the large works at Arapuni and Waikaremoana, with consequent extensions to transmission lines and substations, and provision of extra plant at Arapuui, will require very heavy expenditure for the next three years. In addition to this the growth of load on the Lake Coleridge system is such that it will apparently be necessary to make a start with the construction of an additional source of power in tho South, probably within about a year’s time. These development will call for an expenditure of at least £1,000,900 per your for the next four years; and although there is little doubt but that tue hydro- electric development carried out to date has been an unqualified success, it is doubtful if tho country would be justified in continuing expenditure for a much longer period at this high rate. This is all tho more evident when we remember that for every pound expended by the Government on generating works, an equal or greater sum has to be expended both by the distributing supply nutli-

ity and by the actual consumer before the power can bo fully utilised.

REDUCING EXPENDITURE.

It is true that in tho North Island in particular the Government rate of expenditure can bo very considerably reduced after the three main key stations are in opreation—there will be extensions to be made from time to time; while in the South Island there will still remain further sources to bo developed before we can attain to tho ideal of making power available to every one within the Domin ior. who can'be put within reasonably economic distance of the transmission system. We may permit the annual expenditure to be reduced after about four years’ time, but as -far as can bo seen at present it cannot be allowed to stop, and must continue at somewhat reduced rate for many years to come. As the Government scheme of supply provides generally for bulk sup -swv

ply to local authorities and leaves the actual distribution and sale of power tc those authorities, the capital expenditure indicated is only a part of the total capital involved in the ae- i tual distribution of power to the ac- ' tual consumers Thus in 1916 the I supply authorites connected to the ' Government supply had a capital investment of £200,000, in 1921 £600,000, and in 1926 £6,500,000, approximately. OPERATING RESULTS: LAKE COLERIDGE. Tho total capital has been increased during the year from £1,008,491 to £1,366,951, of which about. £360,009 represents duplication works which ' had not gone into operation at the end of the financial year. The financial results for the year can be summarised as follows:—Capital investment £1,366,951, revenue £123,354, operating-expenses £27,935; 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 tho Profit and Loss Account, amounting to £17,739, and has in addition enabled a contribution of £B,907 to be paid to Sinking Fund Account. This scheme now has a Depreciation Fund of £111,526 and a Sinking Fund of £8,907. HORAHORA. The financial results of this plant have again been very satisfactory, though, on account of the considerable increase iu capital charges, the profit has not been quite so great as iu the previous year. The position may be summarized as follows:— Capital investment £735,091, revenue £85,830, operating expenses £19,612, balance £66,218. The balance has has been used in paying interest and depreciation, and has left a profit of £21,348 for tho year. This has been used in paying £11,342 to sinking fund account and a further £10,(106 to reserves. This scheme now has a depreciation fund of £1b,414, in sinking fund of £28,930, and a reserve fund of £30,354. Two additional units, each 2000 kilowatts, were brought into operation early in the year ,and the whole station has given little trouble throughout the year. Transmission-lines to Auckland, to Rotorua, to Hangatiki (Waitomo Power Board), and to Pukekohe < Franklin Power Board) were put into operation during the year. The maximum load on the Horahora plant during the year has been 11.400 kilowatts. The expenditure during the year has been £206,218.

WAIKAREMOANA The small initial plant (1,000 kilowatts) at this scheme has been leased to the Wairoa Power Board, and is being operated by them, pending being taken over again by the Department when construction work on the main development is well under way. The capital outlay is £80,564' charges, interest, and depreciation amount to £5,949; the revenue received has been £1,901; leaving a loss of £4,0-18 for the year. Consequent on the rapid growth of load on Mangahao system, a start has been made on construction work

on the main scheme at Waikatomoana, Tenders have been invited for the main items of the plant, which will consist of two units each of 20,000 kv.a. capacity. Surveys of transmission-lines to connect witii Mangahao lines at Napier are almost complete, and are also in hand between Waikaremoana and Gisborne. MANGAHAO. This, the latest Government station, went into regular operation at tho beginning of the year, and, consideridng the magnitude of the initial development and the high costs ruling during the period in which it was built, has been a successful initial year. The expenditure on this scheme for the year was £128,141. The main expenditure has been on completion of erection of the power-house machinery, and on preparation work and excavation for the upper Mangahao dam. The main transmission-lines have been completed as far as Wanganui, Onga Onga anil Masterton, and an extension to Napier is almost complete. Substations have been completed at Wanganui, Dannevirke, Mangamaire, Onga Onga and Masterton, and the sub-station at Napier is under con. structioir.

The total capital expenditure to date lias been £2,022,315, of which about £520,000 represents expenditure on extensions, and substations which bad not come into operation at the end of the financial year, and on the third dam, which is not yet complete or in operation. It is also to be noted that a considerable portion of the expenditure on transmission-lines and substations on the Hawke's Bay and Wairarapa side of the range is in reality an advance part of the expenditure necessary to provide load for the Waikaremoana scheme. The financial position may be summarised as follows: —Capital, £2,022,315; re. venue. £76,857; operating expenses, £21,865. Balance £54,992. The balance has not been sufficient to pay interest and depreciation charges, and leaves a deficiency of £67,291. MAXIMUM LOAD CARRIED. Tile load on the plant has developed very rapidly. The peak load to the end of the financial year was 13,960 kilowafts, but since that date a maximum load of 18,190 kilowatts has been carried. To the end of the financial year it was not necessary to call on any of the connected fuel plants to carry part of the load, though since the end of the year it has been necessary w get the Wellington and Palmerston North plants to carry part of their load for a few days on two different occasions during continued dry spells with heavy loading. When the third dam is completed, which it is anticipated will be during the coming summer, the water capacity will be considerably increased, but even then if we meet an exceptionally long continued dry spell it may be necessary to get assistance from the fuel plants for short periods. Arrangements have been made with some customers who hfivCt fuel plants for a supply uf power to meet these conditions.