POWER SUPPLY

Otago Daily Times, Issue 23831, 10 June 1939, Page 19

POWER SUPPLY

CENTRAL OTAGO BOARD REVIEW OF YEAR'S WORK HEALTHY FINANCIAL POSITION The annual meeting of the Central Otago Power Board, which was held at Alexandra, was presided over by the chairman (Mr W. Bringans) and by Messrs E. Marslin, C. Weaver, G. T Alexander, J. F. Partridge, W. M. Lopdell, S. A. Stevens. L. N. Tolly and T. Blakie. The following report was presented Tor the year by the engineer-manager 'Mr A. E. Ellis):— Supply System Power supply was drawn from the Roaring Meg station during the whole period, and the supply, except for seven stoppages, was continuous The plant had run well and was in good order. The line equipment was generally in good order, and after 14 years' service in the oldest sections, showed no signs of undue deterioration. No poles had so far failed in service. Covered wire in the borough low-tension reticulations had frayed and would probably require early replacement. Two dredging loads have been carried during the year, one continuously and the other for about eight months. The Roxburgh main line had been overhauled and the transformers reconditioned. A dredge transformer sub-station has been erected at Lowburn and required only a switching cubicle, now under construction, to complete. Statistical Figures The power system, the report continued, consisted of 5317 poles carrying 908 miles of wire over 188 route miles of high tension lines. There were 205" transformers totalling 6305 k.w, capacity, connected to the lines supplying power to .4186 k.w. of connected load. The units generated were distributed as follows: ■ District. Units. Increase. Alexandra .. .. 1,147,900 149,800 Clyde .. .. .. 267,860 6,090 Cromwell .. .. 813,001 155.705 Matakanul .. .. 821,500 51,360 Dredges 1,722,170 62.880 The above table showed an increase In consumption generally throughout the district and greatest in the Cromwell area. The gross revenue from the sale of power was £18,226 for 1938, compared with £IB,OOO for 1938. The average selling price per unit sold was 1.07 d for 1938 and .905 d in 1939. The revenue per cent, of the total outlay was 14.15 per cent, for 1938 and 13.64 per cent, tor 1939. Working expenses as per cent, of gross revenue were 27.77 per cent, for 1938 and 29.76 for 1939. The average revenue per consumer was £l7 0s 4d for 1938 and £l6 for '.939. The gross revenue from the sale of power had fallen owing to the stoppage of the Molyneux Dredge. A sum of £723 12s due under the minimum charge had been held in a reserve account and not credited to this year's income. If this had been included, the revenue would have shown an increase. The domestic revenue increased >by £BB6. Additions to consumers' installations during the year were: Lighting points 611, heating points 271, ranges 36, water heaters 33, motors', 30, totalling 586 k.w. of connected load. General Review Extension work for the year included a short extension to the Dry bread area in the Matakanui district. Supply began in December. Progress was made with the reticulation of the Upper Clutha area. Application for a loan was made to the State Advances Corporation early in May and offer of the money finally obtained in September. The money was received in February of this year.' Construction work was begun, in February, and was still in progress. A conference was held with the Teviot Board regarding interconnecting the two generating stations, and an agreement was reached to do this. The board was still awaiting official sanction from Wellington to this agreement. '. ':':■:•■

A conference was also held with the Lake Wakatlpu Board on the question of the amalgamation of the two .districts, and agreement was arrived at. The early closing of Parliament Erevented the necessary legislation eing passed, but tins was to be put forward again during the present year., The board's new offices and showroom were completed during'the year. ■■ The capital assets had been increased from £132,755 to £139,782. This was brought about by an increase of £7027 ,on account of expenditure of approxi--1 mately £2OOO on the Upper Clutha area, £3OOO on the building and furniture of hew offices, etc., and the balance of £2027 on the Drybread extension and additions to the existing area. Loan Liability h The total loans raised by the board had increased from £102,000 to £144,000, an increase of £42,000 for the year. The loan liability on the original area had accumulated repayS?S ts °} £PJ2°> having a net liability of £85,760, to which was added the new loan liability of £35,000 on the Upper Clutha area. One shortterm loan of £3OOO was paid off during the year. i l * fading account showed that considerable expansion had taken place, due to the increased showroom facilities, and the more vigorous sales policy adopted by the engagement of a salesman. The turnover for the year, including installations and sales of goods, had doubled for the whole district. A profit of £385 was shown . in the trading account The main items in the Income and expenditure account were: Working expenses, £5323; interest and sinking funds on loans, £7222; renewals and depreciation, £2448; interest credited to dredging companies' deposits, £1110; and appropriation of £16,120, £l7; a total expenditure'o:£ £16,120. The revenue for the year was £ 18,449 resulting in a profit of £2329 on the year's operation. This wan a credit against the accumulated debit balance of £2600 from the previous year, and left a debit of £271 As the profit for the year of £2329 was arrived at by transfers from dredging companies' deposits which had already been capitalised in the construction of the "Meg* scheme and were not now represented by cash, it was necessary to eliminate these to arrive at the result. of the domestic trading. When allowance was also made for capital works charged against revenue, it was estimated that the veer's working resulted in a cask rredit balance of approximately £6OO. Healthy Position The balance sheet showed a healthy position in that the revenue was Increasing at a faster rate than any increase in operating expenses. The position would have to be closely , watched to see that sufficient cash was kept available against the increased committments due to dredging loads, and, providing that this was done over the next few years, it should then become possible for the board to derive direct benefit annually from the money received from the dredging companies which was at present locked »m in capital assets. The reoort expressed appreciation of the tervice given by the staff during the year.