HYDRO STATIONS

Timaru Herald, Volume CXLVII, Issue 21449, 13 September 1939, Page 12

HYDRO STATIONS

Output and Revenue A Year of Progress By Telegraph—Prebs Association WELLINGTON, September 12. ‘‘Hydro-electric developments have continued to be one of the Government’s most successful undertakings,” declared the Minister of Public Works (the Hon. R. Semple) in his annual statement to Parliament this afternoon. Largely as a result of the Government's housing policy and stimulating of local industries, said Mr Semple, the increase in the number of consumers was the greatest for any one year since 1928. The number of units generated in the Government stations showed an increase of 17.14 per cent in the North Island and 18.97 per cent in the South Island, whilst the operating returns of the various distributing authorities indicated an increased consumption of 13.35 per cent, as compared with 14 per cent last ye?.r. Sinking Fund Account Gross revenue had increased to £1,688,583, and, after paying operating expenses, interest and depreciation, said Mr Semple, it had been possible to make available a sum of £585,131 to the sinking fund account, which was still, however, £558,076 in arrears. To meet the increasing demand for additional power in all directions, the department had been actively engaged on new work and additions to power stations and transmission lines and on surveys and investigations for additional works and lines. In the South Island two additional units, each 15,000 K.W., for the Waitaki power station were being delivered, and preliminary work in connection with installation was in hand. Orders had been placed for a 25,000 K.W. unit for the new development which would be built in the Rakaia River at the termination of the Rangitata irrigation canal. Main transmission lines, inter-con-necting the Lake Coleridge-Waitaki system with Southland, and with the West Coast, had been completed, as also had a second main line between Arapuni and the Bay of Plenty. Earnings of 8.41 Per Cent Financially the year had been a successful one, and the whole electric supply account had been able to earn 8.41 per cent on the operating capital after paying net operating expenses. Average operating capital in the North Island system was £9,208,227; gross revenue, £1,127,132; working expenses, £200,438; net balance, ln the South Island system, average operating capital was £6,247,478; gross revenue £561,431f working expenses, £187,835'; net balance, £373,616. The general position to date was that the electric supply account had been able to meet all operating and Interest charges, had provided the statutory requirements of £1,680,732 for depreciation, and, in addition, hack- provided £1,091,878 towards sinking fund requirements of £1,649,954. Also, £87,199 had been paid to general reserve from profits made from time tcTtime on Lake Coleridge system. In other words, the, electric Supply system, as a whole, had paid interest and operating charges and provided £2,859.809 in reserves, of which £496,364 had already been utilised by Treasurj' for the paying off of loans which formed part of the original capital.