SOUTHLAND POWER BOARD

Otago Daily Times, Issue 21648, 19 May 1932, Page 14

SOUTHLAND POWER BOARD

, SECRETARY’S REPORT At the monthly meeting of the Southland Power Board, held at Invercargill on Tuesday, the secretary (Mr C. Campbell) reported as follows lor the month of April:— Receipts from sale of electricity as at May 7 in comparison with the previous year are as follow: — 1932. 1931.

13,871 18 9 £13.871 18 9 Income from all sources (including rates) for the period shows an increase of £3830 over and above the same period in previous year. The bank overdraft at May 7 was £26,769 8s 7d. At the same date last year it stood at £41,681 19s 9d. London account has a credit of £220; special loan account credit is £351; power fund No. 3 credit is £30.474; power fund No. 2 credit is £262; Savings Bank account credit is £233; the investments on deposit credit stand at £35,000. On May 7, £2162 covered the amount outstanding by way of arrears and accounts unpaid on recent due dates. This represents approximately 800 accounts. We feel we have the overdue accounts problem under good control. There are undoubtedly numbers of consumers whose position in our books calls for careful attention and review, but we are in constant touch with them. Taking all factors into consideration, the position is satisfactory. . ■ Efforts to maintain sales campaigns of lamps, appliances, and other power using equipment were nullified in respect of the 1931-32 year by the economic position, but the showroom and trading department managed to hold its own, although we were not able to make any further allowance for depreciation on stocks. A summary of the results of the department for the past two years is given hereunder:

The special committee will be carefully reviewing the trading estimates in the light of the future, therefore a more comprehensive statement will be submitted in due course. Meantime, members will be interested_ in the following summarised statement in respect of the period 1928. when the big rush of business may be said to have almost ended, to 1932:—Stocks of trading equipment in April, 1928, £12,953; purchases to March 31, 1932, £13,188; a total of £26,141. Value of stock on March 31, 1932, £8354; less balance of depreciation provision. £1206; a total of, £7148. Four years’ gross profit, £6877; four years’ depreciation provision, £2762; four years’ expenses, £3572; net profit taken into account, £543. PUBLIC TRUST LOAN.

The secretary submitted a report on the Public Trust loan, explaining that in 1925 the board borrowed £150,000 from the Public Trust Office at 6 per cent., 20 year term, 1 per cent, sinking fund. Several months ago he approached the Public Trustee for a lowering of interest or alternatively for his consent enabling the board to pay off the loan if the board could raise the money elsewhere at a lower rate. The public trustee declined to agree to a lowering of interest, but said that’ he would accept repayment of the loan. . Correspondence on the subject was presented, the secretary concluding: It was thought that 'we would benefit by a 20 per cent, reduction, but in this we have been disappointed because the measure of assistance given under the Act is effected by the process of a stamp duty of 10 per cent, on receipts of interest which is subsequently refunded to the local bodies less 5 per cent, for administrative costs. The net benefit is about i per cent. In other words the interest on the Public Trust loan will now work out at 54 per cent. The questions now are: (I) Whether any further effort should be made to benefit the board by raising the whole or part of a (redemption) loan in New Zealand at a lower rate than 5J per cent.; (2) whether an operation in London .would be likely to be more successful. I hope to be able to place a London opinion before members very soon. The rate of interest should be favourable, but there will be stamp duty and flotation expenses. These should be offset by the exchange which the remittance of the money, to New Zealand would earn. On the other hand the exchange position in relation to the sending of the interest to London from time to time would have to be taken into account. , . , The secretary’s report was adopted. CHIEF ENGINEER’S REPORT.

The report of the chief engineer (Mr X,. B. Hutton) presented to the meeting was as follows: — Power Station. —The output for April was 2.248.130 units. This is greater than any previous April output. The daily average was 74,937 units.. On Friday, the 24th, from. 5 until 5.30 p.m., the station carried a peak of 6220 kw. The biggest day was Friday, the 29th, when 84,640 units were generated. The lake level stands at Oft lOin above the sill. The rainfall was 4.31 in, thg average river discharge. 359 cusecs, and the power station consumption 320 cusecs. The runners of all turbines have been inspected, and will be clean of debris each week-end until the heavy load period is past._ A test was made to co-relate gate openings with output, and necessary adjustments made. As the relation between turbine gate openings and output is dependent on other hydraulic factors, this is a point which must be watched if machines are to be worked at their maximum efficiency. Transmission Line.—The chief work was scrub cutting on the Nightcaps stretch, the area dealt with being approximately 40 square chains. This work will be continued between Linton and Wairaki as opportunity offers. At Waihopni, Dawson’s, and Hedgehope, trees and gorse were cut, and at Heddon Bush a piece of gorse hedge was replaced by wire fence. Wiuton Area. —The construction party spent most of the month in Otautau, where the low-tension network was completed, the high-tension extended, transformer moved to new position, street lighting overhauled, load redistribution, etc. We are now in a position to tackle any electrical growth likely to occur in the township. At Oreti a short extension w(ia made to an 11,000-volt line, and range loads more evenly served. Tree trimming was done at Nightcaps, Birchwood, Strathvalo, Ringway ’ Ridges, Waikouro, Glndfield, Fairfax, Gummies and Gropers Bush, Wnipangp. and Lsla Bank. Invercargill Area. —The construction party spent a week in a-rearrangement of transformers and low-tension mains at Kennington, and along East road to Mill road. At Clifton a low-tension extension was made to serve a motor. Nine services were erected, two of which were for motors. On the Waianiwa branch the pole-to-polo inspection of high and low-tension was completed. At Kennington three 30ft poles were changed for 25ft, the .former being deemed too slim to carry additional wires. At Riverton six new overhead type street lamps were erected in the main street and adjusted as necessary at night time. Several houses at Haldane, wired but not connected, were visited, and fixtures, etc., removed. Gore Area.—There was no serious fault on the system, though a broken wire near Charlton caused 30 minutes’ stoppage on No. 6, and a broken wire beyond Waikaia —combined with a fractious motor car—caused two hours’ stoppage on part of No. 2. The construction party made an extension and did maintenance on the Kaiwera branch, ran a service at Waikoikoi, and converted two at Edendale and Wyndham. Poles were armed in Gore for the strdet lighting circuit. An extension was made into the Mataura Borough at the request of the council, and service, made available for a group of their consumers. A 100 kva transformer was installed at Waimumu after line alterations had been made, and more transformer groups on No. 4 feeder reconditioned. House Wiring.—Fourteen consumers were secured in the month, bringing the total up to 9364. Eleven installations

were connected, and 70 extensions made to old installations. Seven motors were connected, totalling Hi h.p. The total additional load was 51 kw. Re inspection of installations was further advanced. Invercargill 50, Winton 60, and Gore 37 bring the total to date up to 2595. The report was adopted.

£ s. d. £ s. d. Sales and arrears .. 10.521 0 5 9,686 3 7 Advance payinents 3,350 12 4 3,068 6 1 Totals £13,871 18 9 £12,754 9 8 Increase over last year 1.117 9 1

1931. p.c. of sales. 1932. p.c.of sales. Cost of poods 4452 60.0 1844 64.8 Wages and salaries 686 9.2 331 11.6 Capital charges 175 2.4 175 6.2 Other expenses 425 5.5 254 9.0 Total •.. 6184 83.1 2750 96.7 Sales 7415 100 2843 100 Profit, gross .. 1231. 16.9 93 3.3 Depreciation allowed .. 980 Profit, net .. 251 — 93 —