FUTURE OF ARAPUNI

Otago Daily Times, Issue 22267, 21 May 1934, Page 8

FUTURE OF ARAPUNI

A PROMISING OUTLOOK With four units in operation at Arapuni, and the high-power transmission line to Stratford now linking the three North Island generating stations, the first stage in the development of Ara-pnni-Horahora is now complete. The full scheme for Arapuni allows for eight 15,000 kw. sets taking the whole flow of the Waikato. This, with Horahora added, will mean 130,000 kw. instead of the 70,000 representing full capacity at present. When Arapuni was embarked upon (says the New Zealand Herald) the day for proceeding before the original four units was purely conjectural. Now, apparently, it is not far away. With the new transmission line in use, it ia expected that the winter demand from the Waikaremoaua-Mangahao area will absorb all the surplus of the ArapuniHorahora plant. Thus, it is stated, plans for extension are being considered, but no decision has yet been made. The very fact of this consideration speaks well for the progress of Arapuni. In 1930, when the plant was stopped because of the trouble in the headrace, it was estimated by the Public Works Department that the full load would not be carried until 1936. With what afterwards proved an over-generous allowance for the cost of repairs, it was estimated that the plant would just meet capital charges and working expenses at that date. This allowed for a gross income of £455,000, with the whole output utilised. The accounts given in the Public Works Statement last year showed .xross income to he £337,040. With working expenses deducted the net yield, £28<J,900, fell sdiort of capital charges by £41,487. This amount included £36,590 as a payment of part of the capital charges of King's wharf station, leaving the net deficiency on the department's system alone less than £SOOO.

With the extra demand created by the southern area now linked with Arapuni the financial results should be even more promising on the basis of four units only. As it has been shown that new units added will give a return of 25 per cent, on their capital cost if run to rapacity, it follows that the outlook for Arupuni is very promising; so promising, in fact, that reconsideration of the charges for bulk supply should presently be possible.