THE AUCKLAND POWER BOARD

Nelson Evening Mail, Volume LXXII, 28 January 1939, Page 11

THE AUCKLAND POWER BOARD

AN INTERESTING SURVEY A NELSONIAN'S VISIT (A brief review of its activities, and results achieved for the year ending the 31st March last, as disclosed in its Annual Report and Balance Sheet, by William Lock.) For some years past I have received copies of the Auckland Power Board reports and balance sheets. and endeavoured to furnish readers of “The Mail” with some of the main particulars and facts disclosed, which may be of interest, and especially as showing the progress made. When the Nelson City Council had decided to establish an electric installation to supply the city with current. the writer visited several parts of the Dominion, with the object of securing information which might be of value, and was particularly indebted to the electrical engineers of the Auckland system in this respect The supply was then under the control and administration of the Auckland City Council. In 1922 a Power Board was formed, and has been (to say the least) one of the best administered, most successful, and up-to-date of any in the Dominion. THE BOARD'S AREA The Auckland Power Board district is a very large one. and comprises, in addition to the Ci 4 ,y of Auckland, the Boroughs of Onehunga. Otahuhu, Manurewa. Mount Albert. Mount Eden. One Tree Hill. Newmarket. Papakura. the Road districts Mount Roskill. Panmure. and Mount Wellington, the Town districts of Ellerslie. Papatoetoe. and Howick. and the County of Manukau—the approximate area being 325 square miles and the population estimated at 225.000. The capital value of the district was £78.840.179 in 1933. The secretary and treasurer of the board. Mr H. M. Spear, A.R.A (N.Z.). F.C.1.5.. has forwarded the last year’s reports and balance sheet. One is from the chairman of the board and the other from the general manager. Mr R. H. Bartley. M.1.M.E.E., M.1.M.E., a great fund of interesting information is contained, of which I can only give briefly a few of the facts. This is the sixteenth annual report and balance sheet, and discloses a year of steady progress, and development. The surplus for the year was £20.000. This is regarded as an evidence of the phenomenal growth of the domestic supply, and especially as the board made reductions in the supply rates totalling £51.000 two years ago POLICY AND AIM The board’s policy of assisting consumers to instal labour-saving appliances was also a factor in the progress referred to. The aim of the board is to supply electric energy to everyone at the least possible cost, and without doubt this aim has been, and is still being carried out with marked success. In the case of municipallv-owned installations the profits of the scheme have sometimes been applied for the relief of rates instead of reducing the price of the current. REVENUE The nett revenue for the year was | £710,021, compared with £650.093, an increase of £59,328, but the operating expenses increased during the year by C 65.291. It is pointed out that this increase is largely the result of working under conditions over which the board had no control, but it was fortunate in being able to effect a saving in the capital charges of £8.655 by paying ofT a loan of £225.000 has reduced the additional costs to £56.636. Another striking evidence of progress is the fact that the increase in the number of units sold, compared with the previous year, amounted to twenty-two and ah alf million. Last year the units sold numbered 165.235.530. and for the

j year ending the 31st March, 1938. j ! 187.610.909. The increase shows that ! ! two million were for lighting, showing n j I nett revenue of £6.000. light and power I i £25.500 Els. for domestic supply £35,000. j I It is of considerable interest to note ; • the remarkable development that has taken place in the board’s business | since its inception in 1922. Comparing I the first annual accounts with the six- | teenth:— 1923 1938 ! Total capital j expenditure ... £915,237 £3.524,579 j Total net revenue j from supply ... £156.249 £703,047 Total working | expenses £76.654 £474.624 | Units sold 13.599.195 187,255,444 1 Average revenue [ from supply 2.83 d .901 Id ( Average net price 1 per unit sold — 1923 units ! For lighrting 4.042.063 £84.173 4.99 d : For power ... 6.844,136 £44,772 1.57 d j For domestic # j supply * 810,915 £16,493 4.34 d j For tramway traction ... 1.556.209 £8.393 1.29 d i For street ! lighting ... 245.872 £2,428 2,37 d 13.599.195 £156,249 1938 units For lighting 13,697.207 £116,569 2.0318 d For power 59,201,281 £198,297 ,8039 d For domestic | supply 91,767.409 £303.773 .7944 d For tramway i traction 20.007.255 £51,794 ,6213 d i For street 1 lighting 2,510.292 £32,614 3.1180 d 187,255,444 £703,047 1923 1938 Number of consumers 11,609 58,325 Number of ranges installed Nil 11.460 Number of w<ater heating systems installed Nil 15,405 In submitting this comparison the striking development in the domestic supply is most remarkable; the reduction in rates from an average of 4.34 d to the present average of .7944 d requires some explanation. In 1922 when the board was formed the domestic rate was 5d during the winter and 3d during the summer, with a meter rental of 10s per annum; today meter rentals are abolished—3d is charged for the first 36 units per month and jjd for all in excess, all less 10 per cent, if paid on the due date, with a minimum charge of Is per month. It will be seen therefore that taking tne 36 units as consumption for lightthe cost to-day is considerably less than half what it was originally. The advantages of hot water services and cooking ranges are within the reach of all. under the deferred payment and hue systems now in vogue and the unit rates charged for these services make tnem cheaper than what would be posI sible by any other form of heating, j The board has every reason to be proud of the wonderful results achieved— re- . suits more than comparable with other j parts of the Dominion and overseas. LOAN LIABILITY The board's loan libility amounts to £2.411,700, against which a sinking fund of £1,054,859 is held by the Public Trustee. The loan which fell due during the past year of approximately £224,500, and though the board had suffiicent sinking funds to pay the :

I amount, yet the transfer necessitated i payment of 155.000 for exchange. This | amount was provided out of the board's I cash resources. The board sent its ; chief engineer. Mr A. O. Glass, overseas ; for seven months, to inspect and study j the latest developments in the U.S.A.. ! Great Britain, and European countries. ! and he was erabled to get in touch with | the world’s latest developments. RANGE CAMPAIGN The inducements held out to consumers to hire, or purchase, electric ranges, has met with wonderful success, and the board dealt with 3,000 applications during the year. Of this number 905 represent ranges purchased by the consumers, and the balance of 2.095 are on terms of hire of four shillings monthly. ALL ELECTRIC HOUSE “Is now within the reach of all, and our returns show that the average cost of running an all electric house is approximately 5s 6d per week.” The service department of the board has been of wonderful advantage to consumers, and the service and nominal charges are much appreciated. All a consumer has to do is to telephone their request, and a service man is despatched immediately to attend to their requirements; 9,781 were received and attended to during the year. The fact is mentioned that all the board's allocations have ben considerably exceeded in the year, which has been one of considerable difficulty for the executive and staff in rearranging the working conditions, consequent upon the new labour legislation, and the advent of the 40 hour week, and the report further states that “every effort possible has been made to apply the new legislation to our daily 24 hour service.” The general manager, Mr R. H. Bartley. M.I.E.E . M.1.M.E.. in a very excellent and enlightening report, gives some interesting frets concerning all phases of the operations carried on. and the results obtained and the approximate cost of same, and mentions that “the load development is very marked and we have connected to the system current consuming devices approximating 36,051 kilowatts, viz., 1561 motors, 3110 electric ranges, and 1874 water heaters.” SOURCE OF SUPPLY The main source of supply is from the Arapuni plant, and the general manager states that there has been no major interruption from the station, and very few minor troubles, during the year, and he expressed the board’s appreciation to the District Engineer and staff for the excellent service given. KING’S WHARF STEAM PLANT When the Power Board was established 16 years ago, it took over an extensive steam plant, which supplied the electric current for the City of Auckland. the business being administered by the City Council. In recent years a practically new and enlarged plant was installed which was able to supply current required in the board’s area. When the Arapuni works were out of action, but now the steam plant is only called upon during the period of the heavy winter loading. The nett revenue account shows that the power purchased has increased by over £35 000 beyond the previous year, and the unit cost has increased from .334 d to .3391 d per unit. REVENUE The total revenue received was approximately three-quarters of a million. Large increases in returns are shown under domestic supply, commercial lighting, and industrial power. The costs of installations under the financial assistance and hire purchase schemes, amounted to £40,000, and of this amount £34,992 has been charged to consumers. 1

The cost of installing ranges under the rental schemes has been £12.419, an account of which rentals amounting to £7.776 has been received, but after crediting rentals from motors, etc., a balance of £15.696 is transferred to the revenue account. STREET LIGHTING The demand for street lighting was not so great as was anticipated, only 214 new lamps being installed, but this is to some extent compensated for by the increased demand of community lighting. which shows 1882 lamps installed during.the year. The total number of street lamps now in operation is 7,140, and community lights 2,775. It is expected that this service is sure to expand. CAPITAL EXPENDITURE The total capital expenditure to the 31st March, 1938. was £3.524.579, the value of stock and stores £96,414, investments of £165,611, represents a total of £3.786.602. Many other figures are given by the general manager, showing the financial position to be wonderful, considering the comparatively short time it has been in existence, an achievement which the members, executive and staff should feel proud.