CHARGES FOR ELECTRIC POWER

Otago Daily Times, Issue 14184, 9 April 1908, Page 8

CHARGES FOR ELECTRIC POWER

PROPOSED MODIFICATIONS, DISCUSSION ADJOURNED. At the meeting of tho City Council last evening Cr Shacklook,' iii" accordance with noitice previously given, moved as follows: (a) So mucli. of the- rescflu-tion cf the council of July 18, 1906, fixing l/ho prices for supply of electric power to consumers using 25 lijo. and'' upwards be and tho ;,-a.nx-9 is .hereby rescinded. (b) That it-he fallowing charges for ' electric power, as per.diagram No. 1195, be made and adopted by tihis council, in ,±he manner- following, that is to flay— ' (1) To apply to use,rs who guarantee payment for 25 li.ii. during period of • supply on tho low-rate meter. (2) T,hlit for users above 150,000 imits per annum the peak load rate bo applied for five winter months only between the hours of 3 p.m. to 7 p.m. (3) That speoial quotations be given to consumers -requiring supply tor' 24hours per day, and using over 500,000 units per annum. (4) That in tho caso .of applications already granted at. special rates without a specified term of contract, such con-' sumors to -bo ajiowed' tho option of entering into a oontract for a pariod of fivo years from the "date of connection of service, provided llliat tho consumer or consumers guarantee payment for 25 h.p. during period of supply at rata? quoted. The' higher rate to apply for five winlter months only.. 1

It was agreed to suspend the standing orders, and tho business in question was proceeded with.

Cr Shacklock said that when a resolution was passed on March 19 to the cffcct that the present scalo ol charges be continued lie was of the opinion that what was meant was that tho present practice of fixing charges ehould continue. Since then ho had found' that he was mistaken. He had found that the resolution was simply a con. firmation of a resolution passed on July 18, 1906. At. that meeting .Mr Goodman had submitted a diagram containing a scalo of charges for electric power to private consumers. Liiio a lot, of other matters in connection with Waipori, that system of chargcs laid down had ' proved to be inaccurately based, l'he committee • decided that consumers using above 25 horse-power would get a special quotation. But in the first quotation that Mr Goodman made lie departed froiri'tliis diagram. Ho also spent considerably over £500 on the converter station in ' connection with the Railway Station lighting. He was not saying that Mr Goodman did wrong. The probabilities were that ho did right. The Milburn Limo and Dement Company's contract was not such a bad one as they were disposed to believe. ..When Mr Stark took charge ho followed out' the practice that was setby Mr Goodman. Tho committee and the council had certainly improved a little upon' the Milburn Limo Company's contract, In August last he (Cr 'Shacklock) practically presided over his first meeting as chairman of tho Electric' Power and Lighting Committee. Mr Stark followed the practice of their former engineer, and whenHhe question was asked if the chargcs were in accordance with the diagram, the committee,was assured . that tliciy were, and the quotation was accordingly confirmed by tho committee and by the council. Since then the committee had found that it was not acting absolutely according to tho letter of tho diagram. Mr Goodman had allowed for a high load at certain tim<?3 every day in the year, but a peak load did not occur every day at tlJe time stated J>y him. When the peak lead did not exist it was not fair to charge power to users as' if it did exist. The matter of fixing charges for power should not be left entirely to tho engineer's interpretation. It was not fair to him that it should be so. If tho council now set down rules for the engineer's guidance, he would know exactly where he was. People appeared to be under the impression tliat ho (Cr Shacklock) proposed to reduco the charges. What ho submitted to them had the approval of tho engineer. His quotations Aid not mean any reduction on the scale set down in the diagram in regard to users of 25 h.p. up to 50 li.p. Fifteen thousand units per annum meant 50 h.p. for : 10 hours per day, and for 500 days in the year. The peak load would 1 be made as existing at 4 o'clock in tho afternoon over every day ■in the year. An applicant for power must guarantee tho use of 25 h.p. He proposed that a guarantee should be given for a continuous 25-h.p., whether it «us used or not. The rates for power he did not propose should be reduced at all. Clause 2, "That for users above 150,000 Units .per annum the peak load rate be applied for five winter months only, between the hours of 3 p.m. and 7 p.m.," would do away with the peak load rate in the summer months. Power would be supplied at the low rate for seven months, and for five winter months consumers would have to pay a peak load rate for five hours of the day. In regard to clause 3, "That special quotations be given to consumers requiring supply for 24 hours per day and using over 500,000 units per annum," such a proposal would meet- a cafio like that of tho Milton Lime and Cement Company. At certain hours of tilie day the power could be profitably disposed of at almost any price. ■ Tho cost of production decreased in exactly the proportion that increases wore made ill supply. The propositions ho had made would put the charges for elcctrie power on a. more business-like footing, and enable them 1o deal wit-li all classes of consumers who oamo along. Some discussion took place,' and when the. hour of 10.30 arrived, Cr Walker moved that further consideration be adjourned until 4.30 p.m. on Friday. Tlio motion wa.s carried on the voices.