HYDRO-ELECTRICITY

Manawatu Times, Volume XLIX, Issue 2292, 10 November 1925, Page 10

HYDRO-ELECTRICITY

JUNAWATU-OROM POWER BOARD. MONTHLY MEETING AT PALMERSTON NORTH. The monthly meeting of the Mana-watu-Oroua Power Board was held at Palmerston North yesterday. Mr J. A. Nash, M.P., was in the chair and members present were Messrs Jos. Linklater M.P., F. W. Arbon, M. A. Eliott, J. Hodgens, H. H. Hunt, J. Morrison, L. T. McLean, P. J. Small, J. S. Tingey, J. H. Vincent, and Sir James Wilson. Authority was given to the chief engineer to. carry on with the electrification of Feilding Freezing Works on the same lines as at Longburn. Messrs M. A. Eliott and J. S. Tingey were appointed to act with the. chairman at a conference of Power Boards to consider a movement by employees for an Arbitration award.

On the, motion of Mr Eliott it was decided to accept no accounts (by way of advances to consumers) for installations except at the Board’s standard rate (32/6 per point). Accounts totalling £8029/16/8 were passed for payment. Silver Pine “Mine”. Mr T. Donaldson, assistant engineer reported on his visit to the silver pine forests' at Pokaka (main trunk line). Its object was to ascertain causes of delay in receiving poles. After going fully into the matter Mr Donaldson found that a considerable amount of the silver pine being cut is much too big for use as poles and Is only fit for milling. The Forestry Department’s estimate of the number of poles procurable from the block was 5000. To date approximately only 1800 have been received and with over half the area worked it is not anticipated the yield reaching the apappraisement. In conclusion the as praisement. In conclusion the assistant engineer recommended that as the Board was desperately in need of poles for secondary and consumers’ lines 500 each of the 26ft and 22ft. sizes be procured from Australia. Though only sufficient to build 16 miles of each of such lines this would supplement supplies coming forward from Pokaka. Allegation of High Charges. The Cheltenham Dairy Co.„ Ltd., wrote that it had completed a full term of twelve months in the running of its plant with power supplied by the Board. Upon going into the matter of the cost of power to the factory it was found that charges are abnormally high and It was considered the method employed by the Board in fixing the charges is totally unsuitable to a seasonal industry such as the company is engaged in. The letter pointed out that the method may be suitable to power users with a good load factor, but as the amount of power used by dairy factories varies considerably as between summer and winter months it is manifest that the Board’s basis does not suit the industry. After making comparisons with the cost of power to users of like quantities to the company as charged by other Power Boards, the letter submitted a comprehensive statement of what it considered to be “facts”.

The chairman observed that the letter opened up a serious question. It seemed to him, however, that under the Feilding Borough Council the company for one year had used 152,837 units, costing £1636/0/7, plus lighting charges • £26/4/11, or a total of £1662/5/6. Since the switch over to the Board, twelve months’ operations had involved the use of 114,074 units, cost a total £1077/12/11 a reduction of £584/12/7. Certainly the quantity used ha'd not been so great but that didn't alter the fact that it cost the Company less for a similar period. If a rebate for the past year or a reduction for the current one were granted the Board would have to make every other dairy factory the same concession. What the Board was trying to do was to sell at the lowest possible price but it had to meet expenses, and it was impossible to talk of reduced charges until the figures for the year endimr March 31st. 1926 had been reviewed After a general discussion the following resolution was carried; —

“That no reduction of charges could be considered until the Board had got over the initial staves when the question of prices would be reviewed.” Ways and Means. In reading the following statement of the financial position the chairman ventured the opinion that the finances of the Board were in a very satisfactory position.

The Chief Engineer (Mr W. A. Waters) reported as follows: — Transformers; —We are In a had way for supplies of these as they were lost in the s.s, Kent Are. One of the 100 k.v.a. for Fetidlng was sold on the wharf at Wellington for £5. Feuding Area:—ll,ooo/400 volt Lines Colyton. Taonul Road. Both the 11,000 and 400 volt cables have been erected on this route and terminated at the Valley Road intersection. The 400 volt lines have been

livened up and all consumers’ services have, been made though the wiring contractors have not yet completed the installation work.

11,000/400 Lines. Colyton, Ashhurst, Kimbolton Road. —These lines are supplying power to Hltchman’s corner on the Kimbolton road and all consumers in this vicinity to the Kiwitea Bridge are receiving -a supply c? owt-r. Poles have been erected to Kimoolton and two wirlu f gangs arb I *’’- v.lly engaged stringing u■_> c< nductors. The 11,000 volt portion of this line has been completed as far as Cheltenham and one wiring gang is continuing this work to Kimbolton having completed to Klwltea. Another gang is operating towards Cheltenham stringing 400 volt conductors and completing consumers' services and erecting the necessary distribution transformers.

Feilding Borough.—A gang has been steadily engaged throughout the month on reconstruction work. Denbigh Street has been repoled and heavy conductors provided to take care of the increased load. Manchester Street has also been repoled and a start will shortly be made to erect heavy cables in this vicinity.

Meters and Testing- Dept.—A Ford utility car was purchased for this Department during the month and is a’ready proving a splendid investment 'a the rapid handling of business. Pohangina:—Practically all the poles have been erected in the above area, and wiring is now proceeding. Some of the work in this area is the most difficult we have yet done. Lower Aorangi Road: —The extension in this area has been completed. Awahuri; —A few small lines radiating from Awahuri have also been livened up. Railway Department:—An officer of the Department has been in to ask if we can supply lighting to 65 new houses, to be erected on Milson’s Line. Our reticulation has been laid out to give the Railway Department supply at several points on the new station. Consumers: —During the month we connected the following:— Lighting and heating .. 89 Motors 49 Water-heaters 42 Total 180 Supply: —we have had a good run with Mangahao with the exception of last Monday when there were three interruptions, varying from 20 seconds to three minutes, duo to line trouble beyond Woodville. The Public Woiks Staff have been searching the line for weeks for this fault, but up to the present it cannot be traced. Special report on Lee’s line; The applications for supply from residents of Lee’s line arc as follows: —Gorton L. St. G., McKellar H. C. W., Kingston D. S„ Simpson J., Mair Bros., Mair Bros., Rentoul W., Masters C. A.. Port H. E., Adams L., Young A., LobX, A. J. No motors are signed up for in applications which have been received from a Contractor. The length of line involved to supply these is 3 miles 74 chains, plus a further 48 chains to tap the nearest existing line in Kawa Kawa Road making a total length of over 4* miles. The rough estimated cost of line is £lslO, and the revenue signed up for is about £6O. The return is thus about 4 per cent. Even adding the returns from 2 houses in Awahuri Road would still give less than 6 per cent return. Originally we proposed to supply this Road if necessary from Feilding reticulation, but it does not matter whether it is from Feilding reticulation, Kawa Kawa Road lino, or from Sanson Halcombe 11,000 volt loop, the cost is about the same in all cases. The line is therefore a total washout at present. (It was decided to send an officer of the Board out to Interview applicants in connection with power for other than lighting purposes.) Special report on Himatangi Extension:—With reference to this proposed extension an investigation of the above discloses the fact that there are three consumers at 5 mile from present line, and 3 mile farther on is Mr Davey. Other possible consumers on the line are not applicants, and neither is the Railway Station or houses of Railway, men. These may come on in the future. It is a line that can well be held over especially the tail end of it. Guaranteed Lines. When this matter was under discussion some months ago finality was ifrgt reached, on the guarantee question. The License state-i that if consumer will guarantee a revenue of not less than 20 per cent return or cost of line the licensee must erect the line and the consumer pay not less than 20 per cent for five years. But after five years the tariff charged for supply on these lines must be the normal one. (Incidentally I was responsible for this becoming regulations when a consumer demanded an impossible supply on one scheme put in). Therefore if a consumer demands a line which is going to be a losing proposition the Board can in turn demand its own terms for five years. The usual practice is to supply on 20 per cent, return for five years, and before the five years are up, sell the consumer ranges, waterheaters, motors etc., so that the revenue will keep up when the guarantee finishes. This is sometimes a risky procedure. As far as can be determined to date 12 & per cent Income return on a Power Board’s expenditure will just equal expenses, so it seems better to compute these lines on 12 i per cent for all time. Tills is the practice we are following. Tht 20 per cent for five years is often argued that the line is paid for tn consumer, but in the live years it also costs the Board 62J per cent or roughly 2-3rds. of guarantee money for interest, power and administration hence the nett cost of line to the Board will be roughly 2-3rds. of original cost when reviewed at the end of five years. If the revenue then is less than 12* per cent, on this 2-3rds. of the original expenditure than the line is a losing proposition for all time. (Sir James Wilson thought 6% should be regarded as sufficient income return with a view to assisting the country people and that as the Board was sure to be making a profit it should be used to extend the system to outlying districts. Turning

to the engineer Sir James observed: "You have given us figures, but no evidence to show they are correct.” The engineer: “The 12i per cent is known practice.” Mr Linklater pointed out that everything should be done to extend the privileges of electricity to the outer areas and that the percentage of income return should be as small as possible.) ' \

i£ s d Amount of Loan .... 400,000 0 0 Received to date .... 350,000 0 0 Balance .... 50,000 0 0 B.N.Z. Fixed Deposit 10,000 0 0 Public Trustee .... 32,951 14 0 Bank Balance .. 11,624 1 5 Available from P. , Fund A/c .... 17,574 14 1 Total amount available £122,150 9 6 Collections. October Since 1/4/25 £ s d £ s d Current .. 3415 8 7 14324 13 7 Installations 2492 13 5 11401 8 1 Miscellaneous .. 70 13 5 492 8 10 Sfc £5978 15 5 £26218 5 6 Total advances £42707 6 4 Amount repaid 29922 16 3 Balance outstanding £12784 10 1 Bank Balances; Loan £11624 1 5 Power Fund .... £12916 4 0 Engineer’s Report.