OTAGO POWER BOARD

Otago Witness, Issue 4041, 25 August 1931, Page 5

OTAGO POWER BOARD

MONTHLY MEETING The monthly meeting of the Otago Electric Power Board was held on Tuesday, when- there were present Messrs J. K., Simpson (chairman), D. Boyd 11. M. Driver, A. M’Kinnon, G. Moore. W. B. •Gal/awdy,- W. Taine, and A. E. Russell. ENGINEER’S REPORT. The J- C. Collins) submitted the foliowinw' rfjJQit for the past month, which was a3<jy>f6a. Authority was given uiO Cngjneej t° purchase 25 miles of copper bSTB on a basis of £36 a ton. EXECUTIVE COMMITTEES RECOMMENDATIONS.

Water Heating Charges.—Recommend that the board having given serious consideration to the question of water heating charges considers that an alteration to the charges as devised by our experts, could not be justified, but feels that satisfaction to consumers is essential, and recommends that the engineer concentrate immediately to the exclusion of less important matters in an endeavour to give satisfaction in every individual case. The committee feels confident that every difficulty in connection with water heating will in this way be met and overcome. The recommendation was adopted. SUPPLY OF POWER.

The town clerk (Mr G. A. Lewin) wrote advising of the City Council’s approval of the proposed new contract for the supply of power for 10 years. The matter was considered in committee, and the following statement was issued by the chairman for publication:—“ln presenting the City Council’s letter I would like to state that we have given much consideration to this, new- contract for supply of power from the Dunedin City Corporation. We have first of all to be thankful to the corporation that they gave us a fair hearing when we asked for alleviation under the old -.contract. Our previous endeavours for relief have now borne fruit. The immediate effect of this new agreenient will be a saving in excess of £5OO in the past heavy winter quarter. Although the same rate of saving will not continue over the lighter summer quarters, our big advantage will be relief when we urgently require it —namely, in the ensuing four years.” The town clerk’s letter read:— I am in receipt of your letter of the 22nd ult. herein, and have to say that the whole matter has now been considered by both the Electric Power and Lighting Committee and the City Council itself.The proposals contained in your letter under reply were duly approved, with the exception of the suggestion that the new’ contract should be for a period of eight years. In that connection lam to say that our offer was based on the definite assumption that the new term would run for a period of 10 years: hence the 10year term will need to be provided for. I confirm hereunder an outline of the terms agreed upon—viz.: (a) That the existing power supply agreement with your board be cancelled. (b) That two new- agreements be completed between the parties—one for the northern area and one for the southern area of supply—such agreements to hold good for a period of 10 years, and to date from April 1, 1931. (c) That the agreements be generally similar in terms to the Government supply contracts with power boards, with any special provision that may be necessary.

(d) That the price per kw. for the northern area, taken at Port Chalmers, be £7 15s for supply on a maximum demand on a half-hourly basis.

(e) That the price per kw. for the southern area, taken at IVaipori. be on the following sliding scale—namely: £7 10s p.a. for quarterly demand until that demand exceeds 1200 kw., £7 9s p.a. if quarterly demand lies between 1101-1400 kw-., £7 Ss p.a. if quarterly demand lies between 1401-1600 kw., £7 7s p.a. if quarterly demand lies between 1601-1800 kw., £7 6s p.a. if quarterly demand lies between 1801-2000 kw.. £7 5s if demand is greater than 2000 kw. I am now taking the necessary steps to have a draft of the new agreements prepared by the city solicitors, and will submit same to you for perusal at the earliest possible date. TENDERS. It was decided to accept the tender of Messrs Turnbull and Jones for 25 miles of 7/14 copper at a price of £491 15s. The quotation of Messrs A. S. Paterson and Co. for reconditioning insulator bushings on the Milton and Stirling transformers at £34 13s was accepted. GENERAL. It was decided to retain the services of Mr Evans for necessary re-inspection work in the whole of the southern area, and that his transport be provided. Mr Russell moved that a statement of expenditure so far incurred, and not provided for in the estimates, be prepared by the secretary, and that any savings made be also included. —The motion was carried unanimously.

On the motion of Mr Gallaway it was decided to take action to have the board’s depreciation fund deferred from seven to 10 years.—Mr Boyd said he thought they were asking for something before they needed it.

Correspondence was read in regard to the charges for heating.-—The chairman stated that heating was their stumbling block at the present time, from the financial point of view. It was pointed out that the engineer was to go into the whole matter. TRANSPORT.

A lengthy report was submitted on the running of the board's cars and trucks, insurance, consumption of oil, etc., by the transport member, Mr Taine. Mr Russell said that in his opinion the report regarding the condition of one of the board’s trucks was not satisfactory. He thought that the repairs which had required to be carried out were not trivial. He had seen the truck, and the body was in bad order. A clause in the report read: “I would strongly recommend the board to accept the offer of Mr J. H. J. Stevenson, garage proprietor, of Balclutha, for the servicing of our trucks. This means that our trucks will have all the details attended

to every 500 and 1000 miles —no oiling or greasing, etc., will be done except by him, and this will assure the board that the job is done properly, and there is not the slightest doubt the result will be most satisfactory to the board. The cost is 15s per 1000 miles per truck, we supplying our own oil. Mr Stevenson will keep the truck drivers up to time, as he will keep exact records. Another important matter is that the yearly overhaul will be absolutely dispensed with. Ihe report was adopted. Mr Russell asked what check was being kept on the mileage of the motor vehicles and the running costs. Mr Taine said that an analysis was taken out each month of the mileage and the costs.

REDUCTION IN INTEREST HATES INCLINED.

Mr Russell, of the Finance Committee, submittJu following report:—

_ Receipts during July amounted t>, £3307 /s 4d, of which £2740 3s 3d repfiCcnifd electncity sales. £423 on account of apoliances sold, and £144 outstanding rates. Receipts from the sale of electricity for July show a slight decrease as compared with those of last year, but for the four months ending July 31 £12.355 Is 8d was received as against £12.000 5s Id last To' ir \ Expenditure for July totalled £4346 13s Id, of which £2788 18s 5d was paid to the Dunedin City Corporation for power supplied for the March quarter (last years amount for the same peiod as £3096 3s /cl) and £450 payment for motor vehicle replacements. The accounts presented to-day total £9676 4s 2d, of which £8845 5s 7d represents interest’due on loans, and payment of these will leave the bank overdraft at £22.628 19s 7d. Ihe position regarding unpaid rates is that of the £2879 16s 8d original area rates outstand ng at March 31 1931 £lO3B 14s 2d has tinee been paid to the board, and £155 19s 2d is held pro tern by local authorities, leaving a balance outstanding of £1685 3s 4d, of which £149 10s lOd are 1929-30 rates and £1535 12s 6d are 1930-31 rates.

In keeping with the Prime recommendation of 4 per cent, reduction in interest rates, representations were made to the principal holders of the board s original £200,000 6 per cent, debentures, but a reduction was not entertained. In relation to to-day's production value of the land which constitutes the security for these debentures, their interest value has more than doubled, and the refusal of the holders is to be regretted. It is submitted that something more than a gesture from the Government is necessary to provide relief for ratepayers from fixed interest charges. Negotiations have also been proceeding for some time with a view to a reduction in the price paid by the board for power, and some relief in this direction is anticipated.

In moving the adoption of the report, Mr Russell said that the comparatively small amount of rates now outstanding was proof that their ratepayers were endeavouring to do their best by the board. Of course, the more rates unpaid at the end of the year only created a larger future burden on those endeavouring to pay, and their attitude must necessarily be a determination to collect arrears. They knew that the rates bore on the people like a heavy burden, whereas it would not be nearly as distressing if value were received in the way of additional electricity used. In the meantime, until they could induce their consumers to take more energy, they must administer the scheme so as to make rating as light as possible. It should be mentioned that as a result of their efforts Parliament had. granted them alleviation from the necessity of heavily reducing their overdraft limit in the present year. In fact, the process of reducing the overdraft limits bad been delayed two years. This gave thejn a breathing space in which their consumers must try to consume more electricity.

Mr Taine said he thought they should congratulate Mr Russell on his report. It was very creditable to their ratepayers that they had paid up so well. The report was adopted.

STEAM PLANT AT KAITANGATA. A letter was received from J. 0. Allan, Kaitangata, asking if power could not be obtained from a steam plant at Kaitangata. Such a supply would be of advantage to both the board and Kaitangata.

It was decided to instruct the secretary to reply stating that the matter had already been considered by the board and that a general statement would be issued later on.

Mr Boyd said that Mr Allan was wide of the mark when he stated that additional power could be supplied at a cost of £lOOO.