POWER BOARD

Southland Times, Issue 22478, 14 November 1934, Page 9

POWER BOARD

MONTHLY MEETING OFFICERS’ REPORTS. The monthly meeting of the Southland Electric Power Board was held at Gore yesterday. There were present: Messrs W. Hinchey (chairman), J. T. Carswell, W. McChesney, W. Norman, A. A. Mac Gibbon, E. K. Sim, G. Wraytt, D. J. Heenan, P. Arnott and T. Golden. The secretary, Mr C. Campbell, reported to the board for the month as follows:— There is yet no decision from the Treasury as to the fate of the board’s application for sanction to an overdraft as at March 31 next. The matter of the exchange on the remission of sinking fund moneys to London in connection with the rearrangement of the board’s loan has been the subject of correspondence between the office and the Public Trustee. I have reported to the Finance Committee and now respectfully advise the board that Mr B. Hammonds (10 years’ service) having resigned to take up other activities has been given an excellent testimonial on behalf of the board. Mr B. Henderson has been transferred from the office staff. I have under consideration a requisition for an assistant with wireman’s license, skilled -in minor repairs and adjustments, with ability to step in as emergency meterreader and capable of erecting prepayment meters should this work ever be undertaken by the office. Meantime to work on repairs for consumers in conjunction with the showroom, etc. The board’s retail consumers now total 10,170. Some 17 new consumers were added during October. Over forty motors were connected in that month and about 100 extensions—mostly points for lighting and radio sets—were made to existing installations. Range sales are slow, but three were connected in October. It will be remembered that the board agreed to a lower annual minimum charge (guarantee) in respect of the supply of electricity to a number of registered relief workers. In several cases the consumers affected are no longer in receipt of relief on the number five scheme. The instructions of the board are desired. In regard to the question under the agreement of August, 1930, with the Invercargill City Council: the Council having made an application for an order for arbitration (on the grounds that the said agreement is incorporated in the agreement of April, 1925) the application was heard on Tuesday last when the Supreme Court reserved its decision. If the order for arbitration is not granted the writ will come forward at the next sitting of the Court. I should like to take this opportunity to refer to the efficient services rendered to the board by the Town Clerk at Mataura, Mr Fisher, who acts as receiving officer in Mataura. The position of the Mataura consumers’ accounts is very satisfactory. For the period from November 1933 to date the bad debts have not exceeded £ll. At the moment there is not more than £5O outstanding, including recent and new accounts. The increase in revenue is £lOO above the corresponding period of last year. There are some 385 consumers in Mataura. The question of Section 20 of the Finance Act, 1934, as it affects power boards has been taken up with the Auditor and Controller-General who has advised that where loan money raised for the purpose of financing consumers’ installations and for purchasing materials and goods to be used in a trading department, has been used for such purposes and recovered, and again used for the same purpose it becomes “free money” and is not subject to the provisions of Section 20 when repaid for the second time. Cash Receipts. Cash receipts from sale of electricity etc., up to October 31 in comparison

with the same period last year are as follows:— 1933/34 1934/35

The power fund account is in credit to the extent of £7,664 in comparison with an overdraft of £18,161 at this time last year. We commenced the financial year with current accounts outstanding to the extent 0f£6633. As at October 31, the amount was £4580, of which only £1272 could be classified as being definitelj’ “in arrears”. During the current financial year bad debts have been written off to a total of £lB2 against which we have made recoveries of £l5B in respect of accounts previously written off as “bad and doubtful” With regard to accounts owing to the board in respect of installations financed by the board, at the commencement of the financial year the amount outstanding was £5617 since when we have financed some additional installations. The balance remaining to-day is £5075. The office regrets that, in relation to the cases where the installations are on Crown lands and in cases where the Crown’s mortgage takes precedence of the . board’s charge, the recovery position is very weak. It will rest upon the good grace of the Government whether any material improvement is made in the position of these accounts. Up to the present, however, the principle of priority of charge as enunciated by the Court of Appeal is being insisted upon by State Departments. As to the matter of the installations on non-reticulated properties. The outstanding accounts are not collectable until such time as electric power is made available to the respective installations. Proposals that these unreticulated ratepayers be enabled to become consumers have been looked into from time to time but it has not been possible to see that a reasonably business-like proposition could eventuate without requiring too high a guarantee from the prospective consumers. The Government audit inspectors have just concluded a periodic visit of inspection and have brought the audit examination right up to date. The figures may be summarized as follows: £ The estimated expenditure against the power fund account for the year 1934/35 is 160,259 The actual expenditure for the first six months of the year as detailed above totals 68,635 This figure (£68,635) will be subject to credits for service ■ line labour charges and the credits for other wiring jobs and services, etc., being carried out and operated through the power fund expenditure (say £500) Cr. 500 This leaves a balance (of the estimates) of £92,124 after taking into consideration the credit of £5OO 92,124 The board has certain main known commitments against this balance. They are as follows:— £ Interest and sinking fund payments 67,433 Interest New Zealand Government loan 330 Interest excess overdraft London, including exchange 600 Fee under license for generation 315 Invercargill city payment 1,469 Suspense allowances provided in estimates 250 Salaries and wages 12,250 82,647 Allowance for unforeseen contingencies provided for in estimates 1,000 Balance for general recurring expenditure under all sections 8,477 92,124 The expenditure under the various sections of the work is within the amounts provided for in the estimates and the balance after deducting the main known commitments should be ample to meet the general recurring expenditure during the latter six months of the year. Main Highways Account. Immediately the Rt. Hon. J. G. Coates announced that it was proposed to pass legislation authorising a grant out of the Main Highways Revenue Fund to county councils and certain road boards to be applied in relief of ratepayers I communicated with Mr Hargest asking that endeavours be made to extend the relief in respect of power board rates collected by county councils. At the suggestion of Mr T. Golden, the chairman (Mr W. Hinchey) was communicated with during his visit to Christchurch and it was suggested that he (Mr Hinchey) put forward representations to Mr Coates and the Hon Adam Hamilton. This was done and both have replied. Mr Coates’s reply is as follows:—“With reference to your telegram concerning the proposed rebate on rates, I regret 1 am unable to agree to your request as only a limited amount is available for the purpose, and it would be hardly appropriate to subsidise power board rates out of the Main Highways account. Assistance towards payment of county rates should make it easier for farmers to meet other obligations, and your boardf should thus benefit indirectly.” Engineer’s Report The chief engineer, Mr L. B. Hutton, reported as follows:—The output for the month was 1,906,780 units, the heaviest day being on Friday the 19th. The half hourly peak reached 5340 k.w. on Thursday, the 18th, from 11.30 till noon, and on the same day there was a sustained peak of 5170 k.w. from 11 till noon. The rainfall for the month was 2.57 inches. The lake has been discharging freely, the level now standing at 10 feet 6 inches. The average river discharge was 981.5 cusecs, while the power house consumption was 261.5 cusecs. Maintenance work included changing the oil in Nos. 1 and 2 machines, turning down the collector rings of No. 3 machine, and attending to the pastures. A strong gale on the 12th caused a tie wire on the south line to break near the Sharpbridge Creek, allowing the wire to come in contact with the woodwork. The pole

was eventually set on fire. This in turn affected the telephone which gave way due to the heat. The top of the pole finally burnt off and came to the ground. A new pole was erected. At Heddon Bush two insulators were found to be damaged by gunfire,,, and had to be replaced. It is remarkable that there are still people, actuated by either malice or mischief, who will deliberately jeopardize the supply to a considerable portion of the South Island. The matter has been reported to the police. The construction party has in the Winton area been engaged in running low tension extensions and service lines, and in salvaging the material necessary for the work. Alterations were made at Otautau, Forest Hill and Ryal Bush for milkers. At Pikopiko, line and transformer were changed to supply a range, and similar action was taken at Heddon Bush. The low tension material was salvaged from Dipton, Otautau, Kauana, Otahuti, Centre Bush and Limehills, while high tension material was taken from Hokonui. A service was re-established for a stone crusher at Wilsons Crossing. As to substation operation, the gale on the 12th was responsible for 29 trips, most of which were momentary and took place between 6 p.m. and 9.30 p.m. There were only six feeder trips from the Invercargill substation, three of them being due to the gale on the 12th, and two due to broken wire. A broken fuse base on Gorge Road was responsible for a stoppage of one hour on No. 4 feeder. Nine service lines were erected, five of these being for milking motors. At Otaitai Bush, supply to the flaxmill was discontinued, the large transformer removed, and a small one put in its place. A pumping service at Makarewa was dismantled. A start has been made with regrouping the transformers between Woodlands and Morton Mains. Extensive alterations are being made at Makarewa in order to afford alternative and more efficient routes of supply to the freezing works. Much of the work has to be done during the weekend. A systematic overhaul is being made in the Waimahaka fault area. Earth wires are being removed where they are no longer required, broken high tension insulators replaced and crossarms and poles straightened.

Substation operation was quiet in the Gore area, there being only one stoppage of note, and that for only less than an hour. This was on No. 2, due to a branch having been blown across the line. The construction party ran thirteen service lines, at Kelso, Waiparu, Redan, Freshford, Gore and Mataura. A gravel plant was reconnected at Riversdale and the necessary transformer placed in position. A section of line at Waikoikoi, high tension, low tension, and transformers, was completely overhauled, a pole to pole inspection being made. Thirty-one new consumers were secured during the month, bringing the total up to 10,170. Seventeen installations were connected, and 102 extensions made to old installations. Three ranges were connected, and also 45 motors, the total additional load being 125 k.w. The number of re-inspections during the month was 238, bringing the total to date up to 4812.

Ordinary payments received Advance Payments £ £ 72,460 75,046 3,372 4,644 Increase above last year’s relative period 75,832 79,690 3,858 79,690 79,690 Receipts from other sources (in comparison with the previous year) are as follows:— 1933/34 1934/35 £ £ Rates 11,819 9,974 Interest earnings 1,011 1,186 Miscellaneous 3,385 1,887 Showroom 1,305 1,344 Repayments of Installation Accounts 1,379 830 18,899 15,221 The position of the board’s funds as at October 31 was as follows:— 1933/34 1934/35 £ £ Special Loan, Invercargill 144 Dr 637 Dr Power Fund London 72 24 Cr Power Fund No. 3 Open Account 15,039 3,655 ” Power Fund, Fixed Deposit 61,000 74,000 ” Power Fund No. 2 1,263 1,145 ” Power Fund No. 4 Invercargill Savings Bank 293 302 ” Power Fund, Mataura Bank of New Zealand 209 220 ” Group, Assurance Commisison Fund 1 7 ” 77,733 78,716