POWER PROPOSAL FOR FAR NORTHERN AREA

Northern Advocate, 25 May 1936, Page 6

POWER PROPOSAL FOR FAR NORTHERN AREA

COMPREHENSIVE REPORT SHOWS SCHEME WOULD WORK

reach of a feasible system of electric reticulation in the Far North are: 1283 houses in rural areas, 606 milking machines now running; 3150 inhabitants in towns and villages not included in the rural total, and 906 houses, places of business, and public buildings.

That, briefly, is a summary of the position as it disclosed itself to Messrs Mandeno, Lee and Brown, who conducted an investigation for what is now the" No. 1 Power District into the possibility of electrically reticulating the Mangonui, Whangaroa, Hokianga and Bay of Islands counties. On top of the milking machines now in use, the report submitted to the conference at Rangiahua last week recorded, there were approximately 200 sheds where 25 or more cows were being milked and where it was probable a considerable proportion would install machines when electrics power was available. Idustrial Possibilities. Besides the dairy factories at Awanui, Oruru, Motukaraka, Kaikohe and Moerewa, other power users were the Moerewa Freezing Works,, lime crushing works at Rangiahua and Oue. Stone crushing and gum washing plants also existed, but had not been included in the estimates.

Turning to deal with the description of the proposed system of distribution, the report stated that under the present offer from the Public Works Department, the department agreed to convey power to some central point in the district by means of a single circuit 50,000 volt line, the constructon of which was now in hand between Auckland and Maungatapere. They proposed extending that line in a fairly direct line from Maungatapere to that point which was found most ‘suitable in the Number 1 district.

Considering the point from that angle, the report aontinued, Messrs Mandeno, Lee and Brown had selected Rangiahua, the most suitable location for the main receiving sub-station. From that point the board’s lines would convey the power to sub-sta-ions at Pamapuria, Broadwood, Rangiahua, Remuera and Moerewa.

The report went on to deal with the technical nature of the distribution, and took up the running again to state in connection with recommended policy in regard to expenditure of the loan, that the . immediate erection of all lines included in it was not advocated. Capital Expenditure. Before .any particular locality was reticulated, it would be necessary to canvass and obtain guarantees of revenue from the residents sufficient to cover all costs. These costs were assessed roughly at 15 per cent on the capital costs of extension. The estimate of the capital required for the initiation of the scheme totalled £227,736, made up as follows: Cost of equipment at receiving station, 33,000 volt lines and slip down sub-stations, £21,400. Cost of primary and secondary rural distribution lines; —Fed from Pamapuria sub-station, £42,348; Kaitaia and Awanui reticulation, £3790; fed from Broadwood sub-station, £22,114; Kohukohu reticulation, £1365; fed from Rangiahua sub-sta-tion, £31,039; Rawene reticulation, £1875; fed from Remuera sub-station, £26,758; Kaikohe reticulation, £2856; fed' from Moerewa sub-station, £16,182; Moerewa reticulation, £1025; , Kawakawa, £1640; Opua, £285; Paihia, £1225; Russell, £1540. Other costs:—Condensers, £800; depots, offices and land purchase, £7500; for trucks, tools, furniture, etc., £9000; contingencies, £16,000; preliminary expenses, including cost of loan, £3000; first year’s interest and sinking fund at 5 per cent, £ll,OO0 —a grand total of £227,736.

Assistance To Consumers. On top of that, a certain amount of funds should be available for temporary assistance to consumers. These funds would be advanced to consumers on short terms to assist them in installing the wiring and electrical appliances. A sum of £25,000, it was sugested, should be provided for that purpose. A further item to be considered, was the possibility of absorbing the interests of the Alderton Utility Company should negotiations for that be jpjmpleted. Approximately £6OOO should be provided. If concrete poles were adopted for half the board’s lines, a sum of approximately £14.000 would be required for pole-making plants and for the extra *cost of constructing lines with ferro-concrete poles. It thus appeared that authority for the raising of loans totalling £375,000 should be sought from the Loans Board and from the

ratepayers. At the present time the Loans Board could not authorise the payment of interest at rates above 3£ per cent. It seemed doubtful, however, whether interest rates would remain so low, and it could be anticipated that 3ii per cent might have to be paid. Annual Expenditure. Besides interest, an allowance of approximately 2 per cent was required for sinking fund and depreciation. It would, thus, be prudent to allow 6 per cent for annual charges in capital. The estimate of annual expenditure was: Public Works Department charge for power, £7200; administrative costs, £3500; maintenance costs, £4000; capital charges at 6 per cent on £228,000, £13,700; a total of £28,400. The margin of profit was stated to be £2OOO per annum, and the report stated that the investigation showed that the scheme should be self-sup-porting from the start.

The estimate of revenue when the scheme was established, say in the second year after commencement of supply, was given as follows: Rural consumers, —Lighting consumers in 90 per cent of 1283 houses, at £5 a house, £5770; iron in 70 per cent of 1154 consumers, at £l, £808: grillers, kettles, immersion heaters in 30 per cent of consumers, at £4, £1380; water heaters in 40 per cent at £5 10/, £2530; milking motors in 70 per cent of existing sheds having 25 cows or over, at £l7, £8670; ranges in 10 per cent of consumers, at £l2, £I3BO. Town consumers, at £B, £6880; street lighting. £500; large power consumers, say, £2500. That made a total annual revenue of £30,418. Lines and Services. The report then went on to give a schedule of lines and services proposed. and summarised the position as follows; —

lA O q Ui w Wi o» c c ■j2 :s S3 S-i o w . So o 33 « £ w S3 U Pamapuria . 427 243 115.0 , £ 42,348 Brcadwood . 186 77 62.3 22,114 Rangiahua . 272 117 88.2 31,039 Remuera . 294 122 83.9 26,758 Mcerewa 104 47 46.1 16.182 Totals . ... 1283 606 395.5 138.441