EXPANSION OF POWER.

New Zealand Herald, Volume LXII, Issue 19027, 26 May 1925, Page 11

EXPANSION OF POWER.

MONEY FOR ELECTRICITY. ♦ NEW LOAN FORECASTED. PROGRESS OF RETICULATION. YEAR'S PROFIT OF £12,492. An intimation that it would bo ncces- j sary to obtain heavy loan sanctions next year to provide for extended electricity reticulation was made at the annual meeting of the Auckland Electric Power Board yesterday. The chairman, Mr. J. W. Holdsworth, was re-elected for a further term of office, and Mr. S. J. Harbutt was reappointed deputy-chairman. There were also present: Messrs. T. Bloodworth, R. T. Clark, E. 11. Potter, H. T. Goldie, J. Rowe, L. Joil, J. Dempsey, J Park and M. J. Bennett. The annual report of the chairman showed that during the year the total output and' volume of business was greater than at any period in the history of electric supply in Auckland. There wias a profit of £12,492 on the year's operations. Although small compared with the huge capital involved in the undertaking the profit was satisfactory in view of the heavy capital expenditure, namely, £435,227, and it had to be borne in mind that the board's business was not to make large profits, but to .;ell power as cheaply as possiblo consistent with sound commercial management. Items of Expenditure. Of the year's capital expend)turc the sum of £133,336 represented the purchase of the Hobson Street station, so that the actual amount expendid on extension work was £301,891, making a total capital expenditure since the board's inception of £1,618,368. The balance of loan moneys on hand at March 31 last was £220,000. A saving of £4OOO a year was being ellected by improved methods of handling coal in connection with the steam plant on the King's Wharf, and it was anticipated that further saving would be made in the near future by the addition of still more labour-saving plant. One of the many directions in wdiich there was ground for satisfaction, said the chairman, was the continuity of supply. There bad been five interruptions during the year, but in the majority of cases the duration was only a case of minutes and had caused little or no inconvenience to consumers. This bore very favourable comparison with other supply systems throughout the Dominion. In fact it was recently reported that one system in the South had some 58 stoppages during the 12 months. Impressive figures were quoted by Mr. Holdsworth when dealing with the reticulation carried out during the year. A total of 7122 poles had been erected, 60,000 yds. of underground cable had been laid, 1,014.000yd5. of overhead cable had been erected and 330,000yd5. of cable had been used in connection with consumers' services, which had been carried out at the rate of 100 a week. , High Construction Standard. The reticulation, said Mr. Holdsworth, involved a higher standard of construction than any other system in the Dominion and its life would quite equal the rate adopted to cover its depreciation. The direct current network had been reinforced at many points and the benefit was already noticeable in improved pressure for the consumer and by a reduction in distribution losses. The real benefit, however, would not be realised until it was further advanced and the system of sectionisation completed by the finishing of the new Bteresford Street sub-station and the installation of additional plant in the Hobson Street sub-station, both of which works were well in hand. Owing to the board's vigorous policy, the reticulation of the inner area was now practically completed, and the gangs were working in the outer areas covering Point Chevalier, Avondale, New Lynn, the furthest parts of Mount Albert, Mangere and Otahuhu, and on toward the southern boundary of the board's district at Papakura. Although they were anxious at the earliest possible moment to meet all the demands within the. area, it had to be remembered that, at its inception, the board decided that all areas reticulated must show a reasonable return. Notwithstanding the fact that less thickly populated districts were b?ing reached, each' case was being treated on its merits and in some cases the board had anticipated a reasonable return. New Benefits to Consumers.

The new domestic rates approved last December were proving successful and would have the eifect of making the domestic use of electricity most popular. It would enable consumers to have' the undoubted benefits of electric cooking and other domestic application of electricity at a very moderate cost. Over 150 electric stoves had already been connected. In addition, a special water heating rate had been offered to enable householders to be absolutely independent of other methods of hfcating. That the service was wanted was evidenced by the fact that already 270 houses had adopted it and new installations were being added at the rate of 20 per week. While it was possible that a small loss might bo incurred over this supply; the servico was being placed at the disposal of consumers in anticipation of water power. Some interesting comparisons showing the expansion of the board's business during the last twelve months were contained in the report of the general manager, Sir. A. Wyllie, who was absent owing to illness. Units generated numbered 46,853.560 (compared with 26.337,490 during the preceding year); units sold, 36.599,488 (21,230,903) ; working expenses, £150,506 (£100.580) ; interest and sinking fund, £137.321 (£87,873); depreciation, £27.742 (£22,149); ' surplus, £12,492 (£4004); working cost per unit, .99d (1.14 d); total cost per unit sold, including allcapital charges; 2.07 d (2.39 d); average revenue per unit sold, 2.14 d (2.44 d); number of consumers, 22,206 (16,342). Need lor the New Loan. The question of a new loan was referred to by the general manager in the following terms:—"The progress of our reticulation and other work during the pastyear has been so fast that it will be necessary during the coining year to make provision for appealing again to the ratepayers for a large provision for future requirements, and at the same timo for raising a new loan for the progress of our further works." The chairman stated the last loan was being very rapidly depleted, and in the near future it would be necessary to obtain authorisation for further expenditure. The question of offering consumers financial assistance to enable them to extend their, demand was discussed by se.veral members. In his report, Mr. Holdsworth bad mentioned that capital expenditure was so heavy that it would be necessary to get as many new consumers as possible. A scheme for financial assistance had actually been adopted by the board, though it had not been put into actual use. It would invojve very little extra expense in the way of capital outlay, and was likely to be profitable. Tribute to the Working Gangs. In moving the adoption of the chairman's reportt Mr. Harbntt said that 16 gangs were working in the board's area—more than ever before. It was very seldom that lie had seen gangs working so energetically and efficiently as those of the Auckland Power Board. The report was adopted. The following resolution was carried: — "Now that the comprehensive scheme as planned by Mr. A. Wyllie has been carried to a successful issue, this board desires to place on record its thanks and appreciation for his years of faithful work on behalf of the electricity undertaking of this city and at the same time congratulates him. on the completion of this important work." It was decided to offer Mr. Wyllie hopes for a speedy recovery from his illness.'