ELECTRIC POWER

Southland Times, Issue 21855, 4 November 1932, Page 9

ELECTRIC POWER

THE MATAURA SYSTEM. BOARD TAKING OVER. . (From Our Correspondent.) The Southland Electric Power Board’: proposals for purchasing the Mataurt Borough Council’s reticulation systerr Were considered at a meeting of th< ratepayers on Wednesday evening There was an attendance of 22. His Worship the Mayor (Mr C. D McConnell), in explaining the objects of the meeting said that all were nc doubt aware that the Southland Frozer Meat Company had given notice to the council of its decision not to renew the existing contract for supply of curreni to the borough so that negotiations had been entered upon with the Southland Electric Power Board relative to r supply from that source. Tentative agreements having been arrived at, the council considered the ratepayers should know what had been done. Mi McConnell then proceeded to read the clauses of the offer after which he invited questions and remarks concerning them. Mr A. G. Clark said that having no alternative it appeared that nothing else could be done by the ratepayers than accept. Mr C. H. Hargest asked what the position of industrial concerns at present under agreement to the board would be. Would a new agreement under the new scheme be required? The Mayor replied that in his opinion the present agreement would suffice. Mr P. Amos asked if the change over would affect the house wiring system to which a reply in the negative was given. Cr. J. W. Aitken stated in regard to the previous question that consumers must understand that if the board came in it would fix everything up as far as the switchboard, but that if there were any other defects in the installation it would be remedied at the consumer’s expense. After several minor questions had been answered satisfactorily the following motion was carried: “That this meeting of ratepayers approves of the draft of agreement arrived at between the representatives of the Southland Power Board and the Borough Council and as submitted to this meeting.” Cr. J. Ingram said another milestone in the history of the borough had been reached and while it was a matter of regret that the council was disbanding its only trading concern it was apparent that it was a necessity. Whatever might be said to the contrary the electric light trading system had been a paying concern. He referred the meeting to the reports appearing in the Press of profits made by several municipalities throughout the Dominion and would remind them that since 1917 the price of power had not materially altered. Figures taken from their own balance-sheet would show them that in that year the energy had cost them £179 which was sold for £394 or approximately 100 per cent profit. In 1930-31 the figures were £1059 and £1577 respectively, or, say, 50 per cent profit. The fall in profit was largely accounted for by overloading and line losses. If, then, taking the period of 15 years as stated above when the sums paid out were £179 and £1059, assuming that the natural increase was maintained, he considered the Power Board ought to be in a good way at least as far as the borough was concerned. Regarding street lighting, Cr Ingram gave it as his opinion that in the past the council had been altogether too liberal with it. They certainly had the best lighted borough of its size in the Dominion. In this connection he would like to say that their own engineer had at various times been of the opinion that new wiring would be necessary and acting on this an ‘outside opinion was obtained from Mr R. S. Brown, of Dunedin, which cost the borough £25. The report contained the advice that to put the system in first class order something like £2720 would have to be spent. He felt quite safe in saying that £25 was the best investment the borough ever made. The report appeared in the Press on November 18, 1930, and two days later councillors had received a written offer from the Southland Electric Power Board to take over the reticulation system. Cr J. J. Griffiths said he did not consider that Cr. Ingram had been wise in giving the ratepayers the figures he had just quoted and in his opinion the public would be misled by them. However, it was his intention to support the motion as he considered the best thing to do was to sell to the board and get quit of the whole thing having regard to the fact that sooner or later it would be imperative that the whole reticulation and installation would have to be brought up to date. Cr. Ingram said that the figures quoted by him were facts and were available at the Town Clerk’s office for any ratepayer caring to see them, so why try and hide them at this meeting? There being no further questions or discussion, the motion was carried, there being two dissentients. A further motion ot appreciation of the work done by the Mayor and Council concerning this matter was carried by acclamation. The Mayor acknowledged the compliment and paid a tribute to the manner in which the officers of the Power Board had placed their proposals before the council and for the assistance they had given in arriving at the agreement for sale and purchase of the system.

Power Board’s Proposals. The Power Board proposals were as follows:— (1) The Southland Frozen Meat Co. has notified the council that the company will be unable to renew its agreement to supply the council with electrical current. (2) The Southland Electric Power Board has offered to purchase the council’s reticulation system excepting the street lighting system. (3) The board offers to pay the council forthwith £l6OO in cash and to take over the electric light redemption loan of £1750 bearing interest at 6 per cent., also the electric light works redemption loan of £950 bearing interest at 5| per cent, also the sinking funds. This means that the net cash offer made by the board is equivalent to £4060. The board offers further inducements which will be explained later. (4) The council’s electric light, lines, transformers, etc., stand in the balancesheet at £4500 less some £313 allowed for depreciation, leaving a net amount of £4187. The board does not propose to take over the street lighting which is valued at £3OO. Therefore the board’s cash offer amounts to this—that the council is to get £4060 for an asset which stands in the books at £3900. (5) The board will supply current for street lighting and all other purposes of the council at a price of one penny per unit. The consumption for street lighting is round about 14,000 units in a year. At the board’s price of one penny per unit this will cost the council £54. Formerly approximately an average of £l3O per annum was the amount charged in the council’s street lighting accounts for the purchase of energy. This shows a saving of £76 per annum. (6) After the council sells the electric light lines to the board, the board will at its own cost, overhaul the whole system and bring it in every way up to modern standards. (7) If due to the change over it is found that some alterations are necessary in consumers’ installations this work will be done by the board free of cost. This would not include alter-

ing house switches or lamps or appliances. (8) The sale to the board would free the council from the necessity of having to raise money—possibly £2OOO or £3OOO to bring the system up to standand requirements. The board will carry the whole responsibility and will undertake to give consumers an efficient service of electricity. (9) The board’s engineering staff will give the council all necessary advice in regard to the matter of the street lighting and will carry out any work required by the council at actual cost plus ten per cent.. There will not be any charge for tire expert advice. The board will agree to its poles being used for street lights and, where necessary, will erect cross-arms thereon free of charge. (10) Consumers’guarantees are to remain at the council’s present scale except that the council will not object to a guarantee being arranged on a monthly basis so long as the year’s guarantee is not thereby increased. (11) The board will agree that the scale of charges for electricity to consumers in the borough shall not exceed the council’s present scale of charges and further that in those cases under the board’s scale of charges where consumers receive a supply of electricity at a lower price than that payable under the council’s present scale then the board will reduce the charges in respect of electric current to consumers within the borough using a similar quantity of current for similar purposes under reasonably like circumstances to the same rate as is charged by the board to other consumers outside of Mataura. Under this arrangement a consumer can have the benefit of the council’s scale and guarantee for lighting and the board’s scale for cooking, i.e., Id per unit with the board’s yearly guarantee for cooking. (12) Meter reading and the making up of all accounts will be attended to by the board, but the consumers will be able to pay their accounts at the office in Mataura as in the past. (13) It is proposed to have an agreement which will bind the board to all of the conditions mentioned, the agreement to be for a period of 15 years. (14) The matter of the board taking over the supply and arranging for consumers to receive current generated by ihe board is to be mutually arranged as between the council, the Southland Frozen Meat Co. and the board. The board will indemnify the council against the possibility of any claim for damages by reason of its entering into sn agreement with the board for the sale and purchase of the council’s reticulation. (15) Except with the consent of the :ouncil the board will not levy on

properties within the Borough of Mataura the separate rate which the board is empowered to levy pursuant to Section 64 of the Electric Power Boards Act, 1925.