A GOOD ASSET

Hawke's Bay Tribune, Volume XVIII, Issue 138, 25 May 1928, Page 3

A GOOD ASSET

HASTINGS ELECTRICAL DEPT. SATISFACTORY POSITION DISCLOSED. RATEPAYERS RECEIVE HANDSOME RETURN. “The demand for electric power is growing most rapidly in the use of labour-saving appliances in the home, and there is no doubt that further great developments may be expected in the next few years,” commented the Mayor, Mr. G. A. Maddison, in his annual report on the workings of the electrical department of the Hastings Borough Council. “The operations for the year just ended disclose most satisfactory results. Material progress has been made in the extension and improvement of the reticulation of the borough and the financial results for the year in the supply of electricity show the department to be in a sound and healthy condition, with a nett profit of £4,342.” The revenue and expenditure for the years ended 1927 and 1928 compare as follows: — 1

EFFECT OF DAYLIGHT SAVING". The revenue from private consumers had decreased by £336, accounted for by a reduction of one penny a unit to the majority of business concerns, and also daylight saving resulted in approximately a £lO5O decrease. These decreases had been greatly discounted by the natural increase in revenue due to the expansion of the activities of the department. There had also been a reduction made to residential consumers, but this concession had barely affected this year’s revenue. This latter reduction, together with the reduction on stove rates would tend to popularise stoves and smaller cooking appliances. The Borough Departments showed a decrease of £1873, but £2120 had been refunded, made up as follows: Water pumping £1123: sewer pumping £2OO, street lighting £686; the balance was refunded 1 to offices—Post Office clock, destructor and library. The cost’ for water pumping had been made a fixed charge of £l5OO, and street lighting at £8 per k.w. per annum, or a sum at present of £2OO. The ordinary expenditure out of revenue showed an increase of £1'325 which was entirely due to the increase in the number of units generated ; the distribution and general costs remained practically the same as last year. .The amount transferred to the nett revenue account, i.e., the profit after charging, generation, distribution, and general expenses was £BlB3 as against £9767 last year—a decrease of £1287. This must be considered very satisfactory having regard to the reductions in tariff and refunds as mentioned above. After allowing for repayment of principal, interest and sinking funds on loans, the sum of £4,342, being the nett profit for the year, had been transferred to the appropriation account. This amount, together with £1045 (transferred from reserve) plus £6434, being the accumulated balance. gave a credit balance of £11,821, from which had been appropriated £297 to general account for rent and office expenses, and £3249 comprising revenue contribution and caital outlay, leaving the Appropriation account with a credit balance of £8275. Of this amount a large proportion will be required for capital expenditure during the coming year. The total amount of capital outlay now stood at £106,155, and of this sum £27,206 had been provided out of revenue. The use of electric cooking ranges was becoming more popular and today there were seventy-four of these ranges in use, twenty-four of which had been installed this year. Of the money advanced to consumers for installing ranges and services only £5 and £l2 was outstanding lyThe statistical returns showed that the department had just about doubled its output during the past five years. The following comparison was given:—

STREET LIGHTING. There were now 444 street lights in the town including the cluster lightning in Russell street and the ornamental standards in Queen’s Square. The nine cluster light standards that have been recently installed in Russel street have proved a great success, and a better illumination in that part of the town, and had created a most favourable impression on visitors to Hastings. It was recommended that this system should he further developed, probablv in the further erection of six stndards in the garden reserve on railway road', and three from Heretaunga street going north up Rns»ell street, and one at the Post Office corner. In taking hydro-electricity the Council had been enabled to keep the street lights going until dawn without any extra cost to the borough except that of ordinary maintenance. COMMUNITY LIGHTING. This had now had a full year’s trial and had nrTved a success in the improved illt/nination of the main streets, and as an advertising medium for the business people. The cost to shopkeepers varied from ]/- per month for small shops to £6

14/10 for the largest one—the total revenue from this source being £426 9/6. The benefits of the contract with the Power Board' were shown in the big reductions the Council had been able to make to the borough departments, for the reason that most of this supply was taken after the fall in the peak load or maximum demand, i.e., the point of consumption on which the charge was made by the Power Board. The cost of water pumping had been reduced from £2637 to a fixed charge of £l5OO per annum; and the cost of street lighting from £954 to £2OO per annum. The total amount of reductions made for the year by the Department was approximately £3,000.

REDUCTIONS TO CONSUMERS: The following is a summary of the reductions made to consumers since 1923, and total no less a sum than £ll,OOO. Domestic.—l 922: Flat rate of 9d, average 9d: 1923: 8d and 3d, average 4d, 2d and l|d for cooking; 1927; Bd, 3d and IJd, average 3d, cooking lid all round. Water heating: Ijd to id or £lB per k.w. year. Power. —1922: Motors sd, 3d, 2}d, average 4d; 1923: motors 3d and 1 |d, average 2Jd ; 1924: motors 3d and lid, less 12i per cent., average 2d; 1926: motors 3d and lid,, less 12i per cent., average lid. Shop Lighting.—l 922: Flat rate of 9d; 1923: 8d and maximum demand average sd; 1926: community lighting 4d flat rate; 1927: Bd, 7d and 2d, and community lighting average 3d. FURTHER CONCESSIONS PENDING. “It is the policy of the Council, as circumstances permit, to make reductions to consumers in the price of electricity, and owing to the favourable financial position of the Department I have already discussed with the electrical engineer the possibilities of a further reduction in the price of current to residences,” commented the Mayor. “As an outcome I will probably be making recommendations to the Council in this direction in the near future, involving further concessions of an approximate amount of £l6OO per annum.” He explained that a sum of £3,225 had been placed on fixed deposit with the bank as a reserve and renewal fund, and he intended recommending to the Council that a substantial amount of the cash credit balance, namely £8,483. be further added to this fund. This would obviate the necessity of appealing to the ratepayers f-r any further loan money for the development of the department’s activities. The Council should, in the future, be able to carry out all extensions and replacements out of revenue. POWER HOUSE JUSTIFIED. The policy of the department in providing an adequate stand-by plant at the Power House had been fully warranted, and had the Council not been in such a position, it was most probable that consumers would have been very seriously inconvenienced in the supply of current during the past six months. A feature of the Department’s business had been the exception! development of the industrial or day load, and by the encouragement of this demand, the great success of the undertaking was assured.

1927. £ 1928. £ Light and power .,. 18,997 18,661 Borough Departments— \V ater pumping .. 1,939 970 Sewerage pumping 299 217 Street lighting .. 954 200 Pictures 362 334 Other depts 336 296 Public Works Dept 2300 Expenditure— £22,936 £22,978 Generation 10,187 11,455 Distribution 1,079 1,072 General 1,902 1,966 £13,168 £14,493

1924. 1928. Total number of consumers .... 2,291 3,078 Increase for year 111 247 Total load connected to system (k.w) 2,921 4,986 Increase for year ((k.w.) 270 847 Capacity of plant (k.w.) 600 1,175 Peak load (k.w.) 487 804 Units generated for year ,096,920 2 104,400 Load factor (p.c.) 21 31