OTAGO CENTRAL POWER BOARD

Otago Daily Times, Issue 24627, 7 June 1941, Page 14

OTAGO CENTRAL POWER BOARD

YEAR'S WORKING REVIEWED The annual meeting of the Central Otago Electric Power Board was held on May 29, the following members being present:—Messrs W. Bringans (chairman), W. M. Lopdell, C..J. Spain, L. M. Jolly, J. F. Partridge, A/ T. Allison, G. T. Alexander, W. H. James and W. P. Saunders. The chairman extended a cordial welcome to Mr C. J. Spain, a new member representing Vincent County. Mr W. Bringans was re-elected chairman for the ensuing year. In his report the engineer-manager (Mr A. E. Ellis) stated that the supply was drawn from the Meg station and the Teviot station running interconnected. This was the first year of operation under these conditions, and the stations ran well together, and only on one or two occasions was any interruption experienced. The plant carried the whole demand, except through the dry summer period when one dredge had to be shut down over the peak loads daily for two months. The power system consisted of 8372 poles carrying 1375 miles of wire over 293 miles of high-tension lines. Line extension work for the year comprised a number of small lines in the. original area and the completion of construction in the Upper Clutha districts of Maungawera, Tarras, Lindis and Bendigo. The capital cost of this work for which the

sum of £35,000 was borrowed, was £32,746 15s sd. During the year supply was given to the third dredge, the Austral (N.Z.) Company's dredge at Lowburn. The capital assets of the board comprising generating and distribution plant increased during the year from £169,305 to £174,899, the increase of £5594 being expended on lines in the Upper Clutha area (£4089) and the balance on the rest of the area. The assets of the board, totalling £174,899. had a net liability of £113,450 against them, the difference of £61,440 being made up of £25,350 repaid and £36,099 revenue capitalised. This showed that 27 per cent of the assets were free of debt. Sales of power had Increased from £21,762 in 1940 to £32,154 this year, a difference of. £10,392, which was accounted for as follows:—lncrease in dredging revenue £BO3I, increase in domestic revenue (original area) £143, increase in domestic revenue (Upper Clutha) £2203 (first full year of supply), increase in domestic revenue (Matakanui) £109; total, £10.486. The net result of operations for the year was a credit balance of £13,117 to be carried forward to make the accumulated credit of £17,894. This item was not cash, but the reappearance in tha revenue account of dredging deposits previously capitalised. The total cash receipts for sales of power were £16,686. The chairman commented on the steady growth of the board's domestic revenue, upon which it depended to meet capital charges and operating expenses. With the exception of generating costs and power purchased the working expenses of the board had remained almost the same as last year. It was to be expected that the cost of power supply would show an increase with the provision of extra power to accommodate the larger dredging load, but the position of the board's finances was. buoyant. In a few years' time the benefit of dredging revenue would be realised in the greater cash receipts then coming in. This would be passed on to consumers by way of further reductions in the price of power.