OTAGO POWER BOARD

Otago Daily Times, Issue 21985, 21 June 1933, Page 13

OTAGO POWER BOARD

, MONTHLY MEETING The monthly meeting of the Otago Electric Power Board was held yesterday and was attended by Messrs A. E. Russell (chairman), C. R. Smith, W. Lee, G. Moore, D. Boyd, and R. H. Michelle. LETTING OF PREMISES. The chairman reported that no one had submitted a tender for renting the board’s offices in Dunedin. This referred to the proposal made at the previous meeting that, in the event of the 'Dunedin offices being let at a satisfactory figure the board should shift its headquarters to Milton. FINANCE REPORT. The secretary submitted the following report on the board’s finances; — Receipts total £3745 18s 2d and expenses £llsO 5s 9d. The bank overdraft at the end of May was £6138 Os lid, against £9481 16s Id last year, while the total cash receipts for April and May were £6385 4s 8d against £6901 16s last year. Additional labour for April and May amounts to £9 16s 4d. The report was adopted. WORKS REPORT. The engineer (Mr R. D. Veitch) submitted the following report for the month of May: In the Owaka district meter reading and earth testing have occupied most of the attendants’ attention. In the Owaka township one pole has been shifted to suit the requirements of the County Council, and alterations have been made to two street lights. An interruption to supply in this district occurred on May 27, due to a branch falling across the Owaka Valley line. Attention is being given to earths which do not comply with the requirements of the Publip Works Department. '

In the Stirling-Balclutha-Kaitangata district to improve voltage regulation at Stony Creek, a single phase transformer was shifted 11 spans, and a two-wire high-tension supply ' was extended to supply it. The low tension on these spans has been shifted to suit. A three-phase high .tension line has been run aci’oss the Balclutha bridge, and a 40 k.v.a. transformer and sub erected to allow of an up to 50 h.p. being supplied to the Balclutha bridge contractor. Metering alterations have been made to supply the alterations in loading of the district in general. Resagging and general maintenance work as required by the Public Works; Department inspector' has been proceeded with on the Kaitangata-Loveil’s Flat, Kaitangata, Inch Ciutha, Stirling, and Balclutha lines, and one pole reblocked in Balclutha. Tree cutting has been proceeded with. One set of H.T. fuses was changed, and tests were conducted on the main oil circuit breakers, protective reclosing and regulating systems, during the same interval. Street lamps were reinstalled in Benhar, and lamps replaced in Kaitangata and Balclutha. It is believed that, birds have caused several interruptions of seconds duration in calm weather. Storms on May 10 and 17 also operated the circuit breakers. At the main substation a netting protective guard has been placed round the live metal behind the control board in accordance with the wishes of the Public Works Department’s inspector. The Lawrence attendant has completed the quarter’s meter reading, dismantled one, and assisted in the erection of three transformers at • Wetherstones, and made alterations at Round Hill.

The Milton staff has been occupied on the usual transport repairs and store work, meter testing, and the preparing of transformers for the Wetherstones Gold Mining Company, on whose works a temporary bank of transformers has been installed. One pole has been erected in the Snowdrift line to give the required clearance from telephones. In Tokoiti fuses have been reconditioned. A new 11.000 V. switch has been installed at the Milburn Lime and Cement Works, and a 6600 V. switch in Springfield road. The local circuit breaker tripped out on May 17, the cause being unknown. Metal has been carted for the yard from the borough quarry. Disused material has been dismantled at Berwick and returned to store, and L.T. in this district strained up. Side hooks have been stapled to prevent their swinging into conductors. In the northern area longer croesarms have been fitted at Purakanui to prevent a recurrence of conductors twisting at that. point a.nd interrupting the supply. A broken insulator at Dunback caused an interruption at ’Palmerston on i'jTay 30. A considerable amount of re-straining has been done throughout the area to satisfy the requirements of the Public Works Department’s inspector. Work in connection with the fitting of braces to the Macraes line is being proceeded with, and - telephone crossings at Waikouaiti constructed. At Merton tree cutting has been superintended and maintenance work on lightning arrestors performed. Shot insulators at Purakanui have been replaced. A slight fire in the Milton testroom damaged approximately four square feet of flooring and one transformer. Both flooring and transformer have been repaired. This was occasioned by the stoppage of a motor driving a fan, allowing an air heater to get overheated. To prevent a recurrence of this the hot air fans are being fitted with automatic switches, which will cut off the heat when the air speed falls. The report was adopted. CORRESPONDENCE.

Notice of the annual conference in September of the Electric Supply Authority Engineers’ Association was received. —Leave was given for Mr Veitch to attend, and the secretary was instructed to make inquiries regardihg the probability of the Electric Power Boards’ Conference being held at the same time. The Ciutha County Council wrote asking for a reduction m lighting charges at Owaka. —A similar request was received from the Palmerston Borough Council.— Mr Smith said that Palmerston had made an application of this sort about a year ago. The matter had then been fully investigated, and it had been found that the board’s charges were the second lowest of the non-citv areas in the South Island. He did not think that the board would be justified in reducing the charges.—lt was decided not to grant the requests. The Lawrence branch of the Farmers Union wrote suggesting that the board should endeavour to get the duty on imported electrical appliances removed:— The chairman said that they were anxious to have the duty on ranges and other appliances removed. Power boards in New Zealand were in their infancy, and the only way they could increase their business was by giving consumers cheap service.—lt was decided the chairman should wait on the Tariff Commission when it came to Dunedin and place the position before- the members. ESTIMATES AND RATES. The engineer submitted the following estimates for the current year:—

After the estimates had been discussed the question of striking the rates for the current year was considered. It was shown that £6OOO should be paid off the overdraft by the end of the financial year, and for this reason it was considered necessary to strike the same rates as last year. Notice of motion to that effect was given, and the matter will be dealt tvith at a special meeting of the board on July 6. LOAN CONVERSION. Mr Smith presented a comprehensive report of the board’s loans, showing the advantages to be gained by converting them under the terms and conditions laid down by the Local Bodies’ Loans Board to a common H per cent, new loan. The board’s loans w'ere shown to be as follows:—£200,000 at 6 per cent., issued August 1, 1924, for a period of 36j years;

£13,400 at 5$ per cent., issued January 27, 1927, for a period of 20 years; £6600 at 5g per cent., issued July 15, 1928, for a period of 36j years; £40,000 at 5| per cent., issued January 27, 1927, for a period of 20 years; £15,000 at 5| per cent., issued February 6, 1930, for a period of 26 years; £16,500 at 6| per cent., issued February 21, 1929, for a period of 19 rears; total, £291,500.

Under conversion, the following premiums would be added to the existing loans: —On the £200,000 Otago district loan, £17,255; on the £13.400 Otago district loan, £484; on the £6600 Otago district loan. £274: on the £15,000 extension loan, £748: on the £40,000 Lawrence loan, £1443; on the £10,500 Owaka loan, £268; — total, £20,472.

Adding this £20,4/2 to the present loan total, said the report, there was a new converted loan of £311,971 bearing interest on the new level of 4j- per cent, Taking the old annual interest bill on the present loan of £291,500 (leaving out of account the late 10 per cent, and 20 per cent, interest reductions lately provided 'under statute), it was found to be £17,920. Under the 20 per cent, reduction scheme the board would get a saving of £3584, thus reducing the interest bill to £14,336. But under the new conversion scheme the board would get the following new interest bill: Interest on £311,971 at 4| per cent., £14,039, representing a saving of £297.

Actual Estd. 1932. 1933. 1934. £ £ £ Cost of power .. 10,595 9,694 10,566 Cost of goods sold 432 757 400 Wages and sala5,682 6.458 5,994 Motor transport 1,035 996 750 Reinforcing Claren275 don main line 3,362 5,767 Other expenses 3,128 Total operating and management 20,793 21,165 expenses .. .. 21,023 Capital Charges— 17,920 15,812 14,200 Interest .. .. Sinking fund .. 3,403 3,403 3,403 Depreciation re4,557 4,571 4,600 serve .. Special Items— Depreciation appliance stock 70 70 70 reserve .. .. New store and test room, Pal90 merston Total expenses £47,873 £45,454 £43,528