POWER BOARD

Southland Times, Issue 20661, 17 April 1929, Page 15

POWER BOARD

SOUTHLAND EXECUTIVE. MONTHLY MEETING. The Southland Electric Power Board met yesterday, Mr W. Hinchey (chairman) presiding over the following members: Messrs E. Bowmar, C. Henderson, A. W. Rodger, D. J. Heenan, P. Arnott, A. A. Mac Gibbon, T. Golden, T. A. Buckingham, W. Lusk and the Hon. A. F. Hawke. Riverton Bridge. . A deputation from the Riverton Borough Council, consisting of Dr N. G. Trotter and Mr A. E. Willett, waited upon the board to discuss the question of preserving the beauty of the. new bridge over the Aparima by concealing the power lines in a cable under the bridge instead of using poles erected on the bridge to carry the power. Dr Trotter said the question which prompted the deputation to wait upon the board was the carrying of the electric current over the new bridge. The bridge was built primarily as a public utility, but it was also desired that it be a structure of beauty and they hoped it would not be disfigured by the erection of unsightly poles to carry the lines. It was suggested that the power line should be installed in a cable conduit to be concealed under the bridge. The Post and Telegraph Department was using a type of cable and the Railway Department was carrying its water supply across in pipes which would be hidden beneath the masonry of the bridge. The speaker said he thought it would be comparatively easy to instal a cable now, but a difficulty would arise if delayed until the bridge was nearly completed. Mr Willett said that he did not see why Riverton should be asked to pay for something which was going to benefit other parts of the country and be of value to residents of Invercargill. The Post and Telegraph and Railway Departments were making no charges for agreeing to put their lines and pipes under the bridge. The Power Board was the only body asking the borough to contribute and the sum asked was £55, part of the price of the cable across the bridge. They would have to pay later for the town electricity supply and he did not see why they should pay for what was going to benefit others. Poles would be unsightly on the bridge and would require to be renewed in time. The Public Works engineer recommended cable, as it would last for all time and would not be a cause of disfigurement. The Riverton Borough had no power to levy a charge on the Wallace County or any other body.

In reply to a question whether there would be a considerable difference between the cost of the poles and the cable, Mr Willett replied the amount was estimated at £55.

Dr Trotter said that the Riverton Borough wished to be reasonable. They did not feel they could afford to face a heavy additional charge, but were prepared to contribute something. Mr L. B. Hutton (chief engineer) said that there appeared to be some misunderstanding. He said that the extra expense lay in the construction of a line to carry 3000 volts in a small space. There might come a time when pedestal lights would be installed on the balustrades of the bridge. The 3000-volt line served only one part of the Wallace County, Riverton Rocks settlement, and was independent of other Lincs, The Reverton Borough could be assured that when the Power Board quoted £55, the actual extra cost, to be met by the board would be considerably more than that, A special offer for the supply of the cable material had now been withdrawn and the extra cost would now be nearer £BO. A decision must- be made quickly so that the Public Works Engineer could go head with his plans. The chairman (Mr Hinchey) informed the deputation that, the position would receive every consideration. After the deputation retired the matter was discussed when it was agreed that a cable would be the most, satisfactory job. Mr A. W. Rodger moved that the board advise the Riverton Borough that they would accept a contribution of £4O. This was seconded and carried. Correspondence . An unusually large batch of correspondence. comprising in the main requests that penalties for late payments be waived, was dealt with. A discussion on the penalty arrangement ensued and Mr A. W. Rodger suggested that the time had come for the board to adopt some other method of dealing with requests. He said that the board should not bother about the claims to have the penalties waived unless supported by a sworn statement that the account had not been received or through other circumstances that brought about the late payment of accounts.

The chairman said he considered the discount system better than the penalty charge on accounts. It was ultimately decided not to alter the existing arrangement. Chief Engineer’s Report. The chief engineer reported as follows: Power Station—The month’s output was 2,072,630 units, and a peak of 5350 k.w. was reached on the morning of Tuesday, March 19, 5300 k.w. of which was maintained for half an hour. On the same date the station turned out 78,450 units, the highest daily output for the month. The rainfall recorded was 9.18 inches, anti the lake level rose from 9ft 9in to 10ft Gin. There was a rise in the Waiau river. Outside work has consisted chiefly in the alterations in the cubicles, and these were handed over to the new occupants towards the end of the month. A start has been made on the piles, etc., for the new cottage. Transmission Line—A partial patrol was carried out, the lines covered being chiefly the Invercargill-Gore sections. A pole was changed near Lochiel and one crossarm secured. A start was also made with retransposition of the high tension telephone. Minton Area:—Further progress has been made with the substation alterations and the two new oil circuit breakers have been unpacked ready for erection. The construction party has assisted at this work, and has in addition erected eight service lines, carried out one high tension extension at To Tua and commenced work on a guaranteed high tension extension at Heddon Bush. Feeders tripped on 76 ocasions; only 28 of which could be traced to a known cause. Of the remainder, 19 were on Nos. 1 and 2 feeders, and it is suspected that there are still insulators on the coast secteions of those feeders which have not yet returned to normal.

Invercargill Area:—There were 27 interruptions to service, 17 of which were prearranged, and nine of which were from unknown causes. The chief interruption was on the Riverton feeder and was due to a flashover on the main transformer bushings. Apart from this, all stoppages were momentary. The substation behaved normally during the month. Faultsmen attended to 101 jobs, 37 of which were not of an electrical nature. The construction party erected nine service lines in various parts of the district, and carried out two large transformer erections.

Gore Area:—There were only two major interruptions to service, and these lasted only 15 minutes and 93 minutes respectively. One was due to a broken insulator at Moa Flat, and the other to a broken line above Waikaia. There were 58 momentary interruptions. The construction party erected a low tension of 20 chains in Lumsden, and carted poles in Lumsden, Riversdale and Gore; and ran service lines in various parts of the district. So much work has accumulated that a second party will have to be employed temporarily in the area.

General:—A start has been made with the overhaul of transformers, fuses, and transformer loads. This is an important work, and will occupy a fair amount of time. It is, however, quite five years since the first transformers were erected, and there are indications that they should receive attention. It is important, also, that figEres & io Josdisg aad cosraaaa.

should be available in the office, and a card system has been devised, in conjunction wtih the cardex system, which will afford us valuable information not heretofore available.

House Wiring:—The number of new' consumers secured during the month was 38, and a total of 43 connections were made. 47 extensions were made to previous installations. 14 ranges were connected, but this high figure is probably a rush to get a range installed prior to the 31st March on account of the G.P. point. 21 motors of a total horse power of 70 and three waterheaters complete the list. The total additional load connected in the month was 246 kilowatts. The report was adopted.

Secretary’s Report. The secretary (Mr Charles Campbell) submitted the following report:— Finance.

(a) The cash receipts (for the year ended March 31) in respect to electricity accounts totalled £lOB 173, as against the revised estimate made some months ago of £109,500. (b) The amount received by way of rates was £44,907, against the estimate of £43,877. (c) The position of Power Fund Account is set out as follows —

Balance outstanding as at 31/3/1929 4,672 11 2 The Work of the Office.—l have much pleasure in stating that, during the past financial year, the work in the office was carried out to my entire satisfaction and in a manner which reflected credit upon the board and on the organization as a whole. When one considers our somewhat intricate guarantee systems, the varying

scale of charges, the new conditions brought about by recent legislation, the tons of thousands of entries which have to be accounted for and the widespread area covered by the 70,000 odd bills which are compiled and despatched every year and when one realises that it is only on rare occasions that an error is complained of by a consumer, then it must be conceded that a big job is being done in a manner which is worthy of being brought favourably before the board. I have no hesitation in stating that the board’s office system, the position of the accounts, the number of staff employed, the volume of work done and the cost thereof are matters respecting which the board can safely welcome investigation by any person qualified to express judgment. A Saving of £1,500 this Year.—From time to time discussions have taken place with the bank respecting the suggestion that loan credits should be set-off against overdraft amounts, with respect to the calculation of interest—but beyond the arrangement made with respect to what is known as the No. 2 Power Fund Account nothing ever resulted. A section was inserted in the Finance Act, 1920, under which a local authority could, subject to conditions, use credits in loan account in lieu of bank overdraft. This section, slightly amended, appeared as Section 46 of the Local Bodies’ Loans Act, 1926. I give hereunder for the information of members the full text of the section:— (1) Any local authority may, in anticipation of its revenue receivable under the general account, temporarily transfer to its general account any balance of a loan account, or any part, thereof, for such period and on such terms as the Governor-General in Council may authorize. (2) The moneys so transferred shall be deemed to be a liability of the general account, and shall be repaid to the loan account from which the transfer was made within the same financial year. (3) The total amount so transferred shall be deemed to form part oi the amount which a local authority is empowered to borrow by way of bank overdraft, and shall be subject to the same limitations. (4) A statement of the particulars of every such transfer shall bo forwarded to the Audit Office within ten days after such transfer. (5) The provisions of section fifty-nine hereof shall, with the necessary modifications, apply to moneys borrowed under the section. After conferring with Mr Martin, counsel to the N.Z. Power Boards’ Association regarding the position and after satisfying myself that the board could safely transfer £70,000 during the financial year and make a saving of £1,500 in interest by so doing, I applied to the secretary to the Treasury for authority under Section 46 of the Local Bodies* Loans Act, 1926, “to make such transfer for such period and on such terms as the Governor-General in Council may authorize,” Subsequently 1 waited upon the manager of the board’s bank, and after discussing the position with him, I wrote to the bank concluding with the following paragraph:—lt is assumed that, notwithstanding the board's proposal to temporarily use loan account credits in lieu of overdraft that the overdraft limit for the period to 31/3/’3O, when approved by the Loans Board, will receive the same kind and favourable consideration from the bank as has been granted in previous years. The board will be obliged if you will please write confirming this. The Secretary to the Treasury replied as follows:—“I have to state that as a result of the decision of the Supreme Court in 1922 (Kiwitea County Council v. Bank of New Zealand), that banks could not. be compelled to make further advances in order that these credits could be re-transfer-red to loan account at the end of the year in case funds in the general account were not sufficient to meet such obligations, no Orders-in-Council are being issued under the above mentioned section.”

At this stage 1 learned that Mr Hoyles would be in Wellington at an early date and on his being approached he kindly agreed to wait upon the Prime Minister in connection with the matter to lay the facts before Sir Joseph and to ask that an Order-in-Council be issued in the board’s favour — thus enabling the board to complete its negotiations with the bank. It is worthy of note that the attitude which is apparently taken up by the banks is overcome in respect to harbour boards by reason of the fact that under the Harbour Boards’ Act, 1923 (see Sections 49 and 52) all monies including monies received by way of loan are payable into one bank account, although, of course, separate cash accounts have to be kept in the boards’ books. The following shows the proposed amount of transfers, date of transfers and saving in interest:— Proposed Proposed date Amount of amount of of transfer. interest transfer. saved and earned bytransfer to

Notwithstanding the transfers which the board seeks authority to make, the board’s overdraft as at the end of each month during the current financial year would be as set put hereunder. This gives evidence of the fact that the bank would still have a considerable business with the board: April £85,200, May £50,400, June £19,800, July £5,000, August £1,700, September £29,600, October £26,900, November £7,500, December £23,700, January, 1930, £14,500, February £2,400, March £113,000. Insurance:—Notification has been received from the State Fire and Accident Insurance Office of the rates which have been fixed for the year’s accident insurance. A comparison of last year's and this year’s rates is set out hereunder: —

The following is a summary of the board’s insurance for the past six years:— Class: Amount Pre- Claims Overinsured: miums paid, draft

With some enthusiasm the following resolution was passed at the recent Municipal Conference: “That municipal corporations take into consideration a scheme by which they may co-operate in a united scheme with regard to fire, accident and fidelity risks.” This remit is in harmony with the feeling which has been expressed

at Power Board and County Conferences, hence it would appear that the time is ripe for some effort to be made to bring the whole of the public body insurances under one national scheme. < think that a remit along this line of thought should go forward to the next Power Boards’ Conference. —Decided to send remit forward. Bad Debts.—A schedule of those bad debts which every effort of the office has failed to recover has been prepared and it is suggested that a copy of same be supplied to (a) each member of the board to look through and (b) each outside officer of the board with the hope that possibly some information might thus be obtained that would lead to recovery of the debt. The board will be asked to consider the question of granting a special commission to those outside officers who trace any bad debt on the list.- —Decided to give officers 5 per cent, commission. Cost of Elections.—Section 4 of the Electric-power Boards’ Amendment Act, 1927 provides as follows: —“(1) The reasonable cost of every election under the principal Act that is not held simultaneously with the election of members of any local authority, and the reasonable additional cost incurred by a local authority in respect of any election under the principal Act that is held simultaneously with the election of members of the local authority (except in every case the expenses of scrutineers and other expenses incurred by or on behalf of candidates), shall be paid by the electric power board.” (2) Any dispute arising as to the amount to be paid by an Electric-power Board to any local authority under this section shall be determined by the Audit Office, after such inquiry as it thinks fit, and the decision of the Audit Office in any such dispute shall be final. The Municipal Association is endeavouring Io have this altered so that one half of the cost of a joint election and of compiling the roll is borne by the local authority conducting the election and the other half by the other local authorities (e.g. Hospital Board, Power Board and Harbour Board) on whose behalf elections are held. I think that this matter should be referred by remit to the Power Boards Association.—This was approved. Electric Rangers:—lt seems to me that a policy question (as distinct from any technical aspect) is involved in the recent resolution which prohibits the installation as from April 1, 1929, of any electric range with an ironing plug as part of its equipment. I understand that the reason for the regulation is that the ironing plug on a range presents a possible source of danger. The regulation leaves us in this position that, on the one hand we will have several hundred consumers enjoying the privilege of the ironing plug at the cooking rate of Id per unit while other consumers with the same size of rangers are excluded from such a concession. Apart from that aspect there is the consideration of a possible source of danger being premittcd to remain on ranges installed before April 1, 1929:—Decided to await developments in the matter. The report was adopted.

Actual bank overdraft as at 31/3/19 .,73,934 7 7 Outstanding cheques; .. .. 14,352 7 10 88,286 15 5 Cash in hand and at bank receiving agencies: .. ,. 993 11 2 £87,293 4 3 The overdraft limit was fixed at £90.000. (d) The postion of part VI of Loan Account is as follows— Amount on fixed deposit .. 84,000 0 0 Amount in open account .. 3,505 0 5 Balance at Cr: £87,505 0 5 (e) The Special Loan Account has a credit balance of £1,712 6/1 I. (f) The position of the London account is set out as follows— Receipts:— Balance on hand at commencement of year .. .. Remittances from Inver787 1 9 cargill to London .. .. 3,800 0 0 4,587 1 9 Payments:— Sundry expenditure relative special loan 3,536 0 3 Sundry expenditure relative Part VI of loan Sundry expenditure relative 587 8 9 Power Fund 327 11 7 4,451 0 7 Balance at credit of Ixmdon account 136 1 o (g) The Power Fund No. 2 Account shows the following position— Balance at commencement of year Withdrawals Interest Gore 1,904 15 6 Borough Loan 465 0 0 1,439 15 6 Add interest earned on set off 114 17 7 Balance at credit of No. 2 account £1,554 13 1 (h) Position of advances o consumers: The amount owing to the board at commencement of vc ar was 40,984 17 4 Additional debits added during year 3,511 13 8 44,496 11 0 Repayments during year Principal' 23.023 11 Interest . 2,987 10 LJ 26,010 16 1 Less cash refunds and transfers to elect 129 7 O 25,881 8 8 The balance outstanding as at 31/3/29 was (i) Sinking Funds: £18,615 2 4 The amount of the fund at March 31 was: No. 1 Loan of £750.000 .. 100.540 1 9 No. 2 Loan of £750,000 .. Supplementary Loan of 66,002 15 0 £150,000 4,96S 10 0 Total amount in Sinking Fund £171.511 6 9 (i) Summary of cash receipts for all purposes for year 1928-29: General rate 1928-29 .. .. 39,093 7 0 General rate arrears .. ., 5,814 12 0 44,907 19 0 Sale of electricity 108,173 1 Sales of store and material Rents (permanent village 1,371 4 7 and sub-station cottages) Miscellaneous sales and ser363 10 0 vices 138 4 6 1,872 19 1 Accident compensation for workmen Accident, compensation for 42 13 4 public risk 8 0 0 Commission on insurances .. 95 0 4 Toll gate receipts Recoveries arising out of 14 14 6 sale of office buildings .. Transfer of stores and 97 9 7 materials to Special Loan Account . .• 394 12 11 Transfer of stores and materials to Part VI of Loan Account 42 17 Exchange on Cheques .. .. 24 7 2 Miscellaneous Refunds: 0 k d General average deposit .. .. 28* 10 0 Refund toll calls 8 Refund Customs deposit .. 4 0 0 Refund overpayment phone rent .. 3 2 6 35 13 2 Total cash receipts 155,709 13 4 (k) Position of Electricity division as at 31/3/29: The balance outstanding commencement of year was 9,282 18 6 Sales during the year amounted to: Sale of current, meter rents, etc 103,026 5 4 Less allowances .. 453 8 10 102,572 16 6 Fault repair charges .. 1,478 5 11 Less allowances ,. 33 7 6 1,444 18 5 Penalties charged .. .. 1,066 3 6 Less allowances .. 63 7 7 1,002 15 11 105,020 10 10 114,303 9 4 Cash received 108,173 7 1 Less cash refunds and transfers .129 5 8 108,044 1 5 Discount allowed .. .. 142 15 3 Less redebited .. 1 16 2 140 19 1 Electricity transfers board’s own use .. . - 1,095 17 8 Transfer to bad and doubtful account .... 350 0 0 109,630 18 2

£ 31/3/’3O. £ S. (1. 5,000 April 9 134 0 0 5,000 April 20 130 0 0 5,000 April 24 128 10 0 15,000 Mav 8 369 15 0 3,000 May 17 71 17 0 7,000 June 6 157 4 0 19,000 June 17 410 17 0 3,000 July 15 (58 10 0 3,000 Julv 23 56 15 0 5,000 Sept. 28 68 15 0 £70,000 £1,596 3 0

Kate. 1928-29. Amount. Premium. £ s d Clerical 2/5,000 □ 0 0 ” common law I/1,230 12 4 Engineers ” .. 22/6 950 10 13 9 Electrical Supply C.L 22/6 2,700 30 7 6 Garage E’ployees 45/893 20 1 10 Electrical In’tors 45/1,092 24 10 0 Meter readers . 45/1,319 29 14 0 General 45/16,000 360 0 0 480 19 5 1929-30. Rate. Amount. Premium. £ K d Clerical 1 /- 5,000 2 10 0 ” common law 6d. 1,300 0 6 6 Engineers’ ” .. 30/1,000 15 0 0 Electrical Supply C.L 3,0/2,700 40 10 0 Garage E’ployees 60/900 27 0 0 Electrical In’tors 60/1,100 33 0 0 Meter readers . 60/1,300 39 0 0 General 60/16,000 480 0 0 638 2 6

less interest commis- on presions. iniums. paid: Fire .... 469,057 2,653 306 172 Employers’ Liability . 219,145 3,127 1,847 203 Public Risk 6,000 331 43 22 £694,202 £6,111 £2,196 £397 Averages per annum . 115,700 1,018 366 66