POWER DEVELOPMENT

New Zealand Times, Volume L, Issue 11583, 28 July 1923, Page 9

POWER DEVELOPMENT

PROGRESS OF SCHEMES FUTURE DEVELOPMENTS FORESHADOWED. LAXITY IN KEEPING ACCOUNTS. SHARP WARNING FROM MINISTER. I The Minister for Public Works, Hon. J. G. Coates,. made an important statement in reference to the development of electricity throughout the Dominion when addressing the second conference of Power Boards of New Zealand, held at Old Parliamentary Buildings yesterday. Mr J. A. Nash, M.P., presided. • The Minister said there would prob* ably be a short amending bill of a noncontentious character, this year to the Electric Power Boards Act, to meet some slight anomalies that had arisen. It was now five years since the original Act was passed, and with thirty-one boards constituted and ten actually carrying out the distribution and sale of electrical energy, legislation was reaching a fairly definite stage. A few additional amendments were still required, but they should shortly be in a position to incorporate the amendments in a consolidating bill. Before doing so it was desirable that some experience should be obtained under the provisions of last year’s Act, providing for the amalgamation of adjacent electric power districts. The present legislation was based on the legislation providing for the amalgamation of counties. In. the case of electric power districts a number of the smaller districts must ultimately combine into larger districts in order to effect economy in the generation or purchase of energy and m its sale and distribution. Last year ten boards levied general rate 6 ranging from 0.04 d up to '0.65d, though only in five cases was the rate collected, amounting to a total of £7382. In addition seven boards levied special rates as security for loans, but none of these special rates were collected. NOT TO BURDEN RATES. It could not be impressed too strongly on the members of power boards that their business must be so arranged and their charges so fixed that they will be able, as soon as the initial years are over, to keep their annual expenditure within the limits of the revenue, and ; thus avoid a recurring rate. The rating power is essential in order to give security for loans, and to give the ratepayers • a definite responsibility to cooperate in rendering the scheme a success. It was not intended that the distribution of electric power should result in adding permanently to the ratepayers* already heavy burden of rates, j The question of the retail selling prices j was also an important one. The de-1 pertinent assumed the .responsibility of , fixing maximum prices. These were i usually 9d or lOd for light and 4d to 5d for power and heat as retail charges, f To wholesale consumers who guarantee to pay over £IBO per year the maximum I is usually fixed at £d per unit, plus a fixed charge in the case of boards takirig power in bulk from the Government of £l2 K.V.A. year, and in the case of boards operating their own power station £l6 nsr K.V.A. year. With those limits the department had j left the boards free to fix their own scale of actual retail and wholesale charges. , The department for its own purposes had \ developed a retail 6cale. which was very i simple indeed, and would be found generally to. return a sufficient revenue with power purchased in bulk at the department’s wholeeaile rate It was suggested that the association should tabulate ell the forms of retail charges into a standard scale, giving half ‘ a dozen alternatives, which the hoards should be free to select to suit their particular requirements. The standard j scale might provide gross charges from which disoounts of 5 per cent, to 25 percent. could be allowed, thus giving a > large range to. meet the varying financial position of each board* j PROGRESS SATISFACTORY. j The development of the power board * system was proceeding very satisfactorily. • There were now thirty-one boards gazetted. an increase of eight since the last conference in September, 1022. The total area covered, including inner and outer areas, was 46,818 square miles, or 45 per cent, of the total area of the Do-' minion; the total population concerned was 582,091, or 47.5 per cent, of the total > population of the Dominion; and the un- 1 improved value included in. the eleotric power districts and outer areas was £159,439,000, or 50 per cent, of the total unimproved value of the Dominion, j About one-half of the Dominion was now included within electric power districts,: as compared with one-third last year, j when the corresponding proportions were! 30 per cent., 38 per cent., and 40 per cent.. These figures constitute a substantial advance for the year. Having reviewed the work of the various boards, the Minister said that owing to the limited power available at Lake Coleridge and Mangahao, it had been necessary to adopt the principle of asking for guarantees in order to justify the reservation of plant capacity to meet the future demands of the board, and to justify the construction of new works, ouch guarantees had been required from nine boards, and had been agreed to in various forms by six. In some cases the amount of the allocation had been reduced in order' to reduoe the guarantee required, with the result that the surplus was now available for extension into other areas, to the mutual benefit of the department and the consumers. The demand for power was still very insistent and if boards pushed on energetically with their reticulations the total output in three yeaTs’ time would reach about 46,600 k.v.a. FUTURE DEVELOPMENTS. With regard to the future development of hydro-electric power in the Dominion, the Govemmentprogramme, as indicated in the Publio Works Statement for last year, provided for the following works:— (a) Completion of Mangahao. to 20,000 kw. in 1924, with transmission lines to supply Wellington, Masterton, Dannevirke, and Marten, and with early extensions to Napier and Wanganui. , (b) Construction of Arapuni headworks, together with first two generating unite, amounting to 30,000 kw., in 1928, with additional unite of 15,000 kw., each as required, one of which will be inoluded in the original contract; also duplicate transmission lines to Auckland. (o) The extension of the existing powerhouse at HoraJhora, which' is now in hand, and will be completed early in 1924, bringing up its capacity from 6300 kw. to 10,300 kw., with transmission lines to Auckland, Te Kuiti, and Rotorua, in addition to the existing lines to Waihi, Hamilton and Te Awamutu. (d) The extension of Lake Coleridge by addition of two units, each of 7000 kw. capacity, in 1926. Flans and specifications for the work are ready, and the work will be proceeded with as soon as a definite contract can be entered into with Christchurch City Council to take the power. The programme for delevopment of Lake 1 Coleridge includes extensions of transmission lines to Waimate, Oamaru and North Canterbury, in addition to the lines to Ashburton and Timaru, which are practically complete. (e) In addition to the above, preparations are being made for the installation of a major scheme at Waikareraoana. This will probably take the form of two units of 10,000 kw. each, but will not bo undertaken until the power demand in sight assumes proportions in keeping with a station of this size. In any case it is unlikely that the work can be undertaken until tho Arapuni Bcheme is well advanced. Preliminary investigations have been i made of suitable sources for power for « Otago, Marlborough, Nelson and Westland. In addition to Government develop- j mont, Dunedin City is extending Wai- 1

pori Falls station, now of 60G0kw. capacity, by the addition of a 3000 kw. generator, with provision for three more such units. Southland Power Board is pushing on the Monowai scheme of two units, each of 2000 kw., with provision for future extension by means of four more such units. New Plymouth Borough is extending its power station, now of 800 kw. capacity, with provision for an ultimate capacity of 5000 kw. or more. Taranaki Power Board has plans in hand for a power station of* 2000 kw. at Tariki, and the Wairarapa Power Board, Tauranga Borough, and Taumaruuui Borough have smaller water installations in hand and approaching completion. The steam reserve plants at Auckland, Wellington, Wanganui and Invercargill are being extended or reconstructed, and the steam reserve whioh will be available in the course of a few years will be as follows:—Wellington City, 10,000 kilowatts; Auckland Power Board, 25,000; Waihi Grand Junction Company, 3000; Wanganui Borough, 1750; Christchurch Ji’ramways, 5o00; Invercargill Borough, 2200. These, with the existing power plants already in operation, will amount in 1930 to 181,500 kw. of water-power, and 45,750 kw. of steam plant, compared with the present total erf 29,000 kw. of waterpower and 31,000 kw. of steam and other power already in service. CHEAP ELECTRIC TOWER. This development, said the Minister, would amply the demands and give a margin for attracting special industries depending on a supp.lv of cheap power. The question of a large surplus of power to attract special export industries by offering cheap electric power was an important one. gnd was receiving the fullest consideration. The Dominion was at present too dependent for its export trade on agricultural produce, the prices of which were liable to serious fluctuations, and as the agricultural industries of the world were restored to their pre-war output the prices of agricultural produce would inevitably fall. It was therefore important that eyery effort Bhouid bq made to .develop an export trade in manufactured goods or chemical or metallurgical products, and in this diree tion cheap electric power could assist very largely. AN INSISTENT WARNING. The question of accounts of the Elea tricrpower Boards was also an important one. It was essential for the examination and consideration of the financial position of the various hoar os—in lact, to the whole of the Power Board system itself—that the boards should be in a position to supply detailed Information of their financial positions at any time, and such information must be kept up Vo date. i Borne boards were unable, even at this date, to give the exact statement, of their positions at March 31st last, and even further back. This was very serious, and the boards should look very closely into this aspect. Both staff and members of the 'boards should be familial with their exact financial position at least every quarter, aid within a month of expiry of such quarter. He wished to impress on members the importance of taking the matter up with their staffs, i and insisting on the reports being placed : regularly in their 'hands. It was proposed in the legislation to be brought , forward this year to impose a penalty I not exceeding £IOO on any board op officer i failing to keep and present accounts in i accordance with the Act. , The management of the various electri-cal-power plants of the department, including the sale of power, together with : the supervision and control- of the operations of the various electric-power board districts and other electric-supply organisations, was of considerable proportions, and in a few years would 'have grown to very considerable magnitude. With this in view it would he necessary to set ap a special body to take over the administration of the jelectric-BUpply services, and so relieve the Minister of many of the details with which he is at present concerned. The Minister would still, however, retain general control of the department and the general finance. The exact composition of this body had not yet been determined, but the question of its detailed powers and personnel would be given very careful consideration. Appended to the Ministerial statement were tables showing the composition ot the boards, population served, amounts of loans end details of loan polls, gether with a statement of revenue aj|id expenditure and other returns of boaids tor the year ending March 31st.. The chairman asked the Minister if be could tell them whether the Waikar*- \ Moana scheme would 'be linked up to Napier? Also, lin tlm event of boards not entering into the full allocations that had been made for Mangahao, would it be . possible to supply power in tho meantime if the amount taken for the present ia not sufficient for their requirements? Would there be a surplus of power available? The Minister replied that they were asking the Power Boards in the Wellington area to enter into an undertaking , to say what amount of power they want and arrange accordingly. They knew; the boards would not use the amount allocated to them over the first year. They were in a difficulty regarding Hawked Bay, being asked to go on with a big ex penditure when they had no contract tor a single horse-power. Some time back he decided .that all future developments would be carried out 1 when there wert sufficient contracts made for sufficient power to guarantee the interest and jink fng fund or expenditure on the develop* ment. They h?d asked Hawke’s Bay district to say. what power it would require with a view to filling the gap 1925-30, and they would then overhaul the Wellington allocations. ] In conclusion he appealed to boards to give a helping hand on a matter that was of national interest. With electricity they could only go so far as they had sale for it, and it would be a. big nek to develop a lot of power which, might ' have to' go to waste. Thanks were accorded the Minister l as he withdrew, and the remits are to be placed before him when the conference has d4alt with them.