CITY ELECTRIC LIGHT INSTALLATION

Nelson Evening Mail, Volume LVI, 19 July 1924, Page 3

CITY ELECTRIC LIGHT INSTALLATION

SATISFACTORY REPORT The following satisfactory report concerning the city electric light installation was submitted to tho Council last evening by tho electrical engineer (Air C . A. Henderson):—

Consumers’ applications, 900; lighting load applied for, 54.5 k.w. ; healing load applied for, 518 k.w.; power load applied for 1120 k.w.; total load applied lor, 1283 k.w. The increase in the number of applications is 33 in 14 days, an average still of over two par day. Ag instructed I submit herewith my report on the financial position of tlie Electric Supply Department at 30th June, which must he read conjointly with the Town Clerk’s revenue account attached. It is not possible to give the exact position as all meters cannot lie read on the same day as it takes the month to read the 1000 odd installed now that tho gas and electric meters are read by the same man. The Town Clerk has consequently estimated the consumption recorded but not read, and has completed his records on tliis estimate, which is, if anything, on the conservative side. The Department commenced supply on tho 27th October, 1923, and has been in operation on die oOUi .June, 257 days. During this period tho development has been very rapid, and to show the increase I give the units generated per month :

In April, May ,and June, 1924, 167,820 units were generated. The rate of increase is that- the average daily output during June is seven times that of October. Unl'ortuna. tely, the units sold are not available, as foe quite, 'a long period, due to the shortage’of meters, many consumers were without meters and charged on th- average. RESULTS COMPARED

In order to show the position I will compare our results with Mr Toogood’s estimate in his report of 1922. I would like to -say that the estimate is very good and that our results agree closely with the figures, except that the very rapid development was not foreseen by Mr Toogood. Quoting from page 5 Mr Toogood says: “First Year’s Operations^—We cannot forecast the first year’s results, and the Council must be prepared to pay from Capital Account the whole of the capital charges, allowing for the plant paying working costs only.”

Owing to tho rapid development we have alter 257 days, passed the stage referred to, leaving a gross profit of nearly £'looo over working costs, and a not loss of only £567 including interest. I will, therefore, compare our results with the second year, and will ask you to note the results of April, May, and June.

“Second Year’s Operations.—ln two years 800 consumers should have been connected, and tho maximum load would be 200 kilowatts with 20 o/o load factor.

The units generated would be 3-50,000 per year. The coal required w6uld be 940 tons, to which must be added 15 o/o wastage or a total of 1100 tons, the cost of repair would be practically nothing except for furnaces and grates and can he put down at £250.

1100 tons coal at 45s per ton £2475 Oil and stores 150 Repairs 250 Wages a.s before 3200 Office expenses 200 Capital charges. 4500 Total £10,775

The revenue would be 7d per unit on the amount of electricity sold. Of tile amount generated 15 o/o will he lost and therefore on the above assumption 300,000 units will he actually measured in the meter and paid for, or a total of £8750.

In the second year’s operations it is to he expected that there will be a loss of about £2OOO. The way to reduce this loss is to keep down the staff to tho bare minimum and push the sale of electricity to the utmost.”

On tho 30th of Juno after 257 days we bad 866 consumers and a maximum load of 230 k.w., compared with 200 k.w. estimated and our load factor is 49.4 per cent, against 20 iw "■=- lima ted. The units generated 304,364, against 350.000 per annum or 24 / ' { “i n hi 257 days. This shows that in 257 days we have, notwithstanding the loan Prognndrn Cures C'rns Quickiv. 1/6 — ln the end he went to the Dentist and had the tooth extracted. True, the pain has gone, hut so has the tooth ! Tf he had applied a little Bnrraelough’s Magic Nervine the pain would have disappeared just as quickly. Nervine stops the pain because it kills the nerve. Barrneluugh’s Magic Nervine has given satisfaction for over 25 years. Price 1/6 everywhere, or post free, from Barraclough’s Pty., Box 1247, Wellington. Money back if not satisfied.

months of start, exceeded tho second vear’s estimate.

CO AL CON SLi M PTIO N

| Coal used, 2nd year estimate, 1100 } at 45/-, £2475; units generated, 350,000; [ pounds of coal per unit, 7.04; cost ot 1 coal per units, .1.7(1; 257 days, 1096 at S 24/-, £1310.4; units generated, 304,364; I pounds of coal per unit, 8.07; cost of j coal per unit, 1.021 d ; April, May, June, f 511 at 24/-, £613.4; units generated, | 167,820; pounds of coal per unit, 6.8 ; I cost of coni per unit, .89d; estimated f repairs per annum, £250 or £176 for , 257 davs; actual repairs, £2l/6/7. Stni tion wages £3200 per annum, less outi side staff is £2555 or £IBOO for 257 days t estimated, against actual wages £1712 j 3s sd. | Those figures show that we. had sue- | tended in keeping well below Mr iouI good’s estimates, our saving <n coal alone being £B3l. This is largely due to cheap coal, but 1 would, draw your attentin to tho fact that, with the cheap coal the calorific value of which is about 20 per cent, below Westport our consumption is now (5.8 lbs against 7.04 estimated per unit generated. In the wages a very largo saving is shown. Our wages per unit generated are 1.02 d against the estimate per unit generated of 1.5 d. We now come to tho revenue sale, and on page 5 of the report Air Toogcoil says:— ‘'The revenue must be based on an

average return of (id per unit. To do this the charges for light may be ]od per unit, and for domestic power

4d per unit.” The lighting rate has, however, been fixed at 10 per cent below Air Toogood’s recommendation. Street lighting is sold at 3d per unit, and a large quantity of industrial power as sold at 2d per unit. This places an enormous handicap on the department, but the economies effected and the rapid development have, I am glad to say, overcome tho hurdle. Had the price of light been left at lOd per unit, the

extra, revenue would have been at least £550 per annum at the present, rate of consumption. "With reference to reticulation we have up to June 30, 1924, installed 8-50 services which, it was expected, would take over two years to obtain. Those services are being done on the average of £4 12s each against £5 estimated, which saving is recently increased about Is 6d per serivee bv the introduction of a new service suspension which is a great improvement on the method at first adopted.

I)EV'ELOPAIENT PHENOMENA L To summarise the position the development lias been phenomenal, with the result that instead of having to pay all capital charges out of capital, on the first- year’s operation we have on 257 days working the small loss of £566 19s 3d. The Town Clerk lias, at my request, given a comparative statement for the three months, April, Alav, and June, from which you will see that during the months of May and June the department has shown a profit. As it was not expected the Department would show a profit until the third year of operation the fact that wo have a not. profit of 2£ per cent on June working, is a matter worthy of special note. As the Power House plant is working satisfactorily I anticipate no great expenses until additional plant is installed. Consequently I anticipate that wo will continue to run at a profit. I wish, however, to state that as our maximum load this month has risen to 235 k.w., we may anticipate a maximum next winter of 400 k.w. This will necessitate running both machines during the heavy shift. It- is not good practice to have an electrical simply station without spare plant, and I recommend that an extension of plant should he considered this summer and ordered so that it can he installed and in operation for tho winter of 1926.

Tho Mayor said a complete balance sheet would be available at tlie next meeting. The report was a most satisfactory one.

The report was referred to Committee.

Period. Output. Units generated Oct. 17 to 31, 1923 4497 Nov. 1 to 30, 1923 17,992 Dec. 1 to 31, 1923 23,000 Jan. 1 to 31. 1924 24,065 Feb. 1 to 29; 1924 28,685 March 1 to 31, 1924 38,305 April 1 to 30, 1924 45,250 May 1 to 31, 1924 58,770 June 1 to 30, 1924 63,800 Tot a 1 , 304,364