POWER SUPPLY

Waipa Post, Volume 47, Issue 3371, 23 September 1933, Page 7

POWER SUPPLY

TE AWAMUTU BOARD. SEPTEMBER MEETING. Mr J.. T. Johnson presided at the usual monthly meeting of Te A,wamjuitu Electric Power Board on Friday, and also present were Messrs J. G. Sutherland, A. L. Storey, W. J. North, J. C. M'ontefiore, S. C. B. Macky, and N. M. Lethbridge. The secretary-manager, Mr D. T. B. McArthur, was in attendance. Mr J. B. Teasdi.ie was granted leave of absence.

Two new setlters at the northern end of the Board's district, beyond Ohaupo, wrote inquiring for supply to their homes and milking sheds. The m'anager explained the position, and gave particulars of his inquiry in the .area. The cost of the line would be about £4OO, and he had asked for a. guaranteed service from the settlers of at least £55 per annum. However, same of the settlers were reluctant to join, as they had oil engines in their milking sheds.

Mr Montefiore expressed the opinion that it was inadvisable to continue reticulating new areas by using revenue. All should be left until loan mjoney was available. The present policy seemed to be " robbing Peter to pay Paul." Revenue earned from established lines should, when there was a profit, be returned to the consumers by way .of lower charges. The chainman said his policy was to carry out further reticulation from revenue, instead of raising more loans. Mr Montefiore contended that the original consumers had shouldered a liability oi £130,000. Some of the present charges were too high, and should be reduced instead of new areas being reticulated with the profits. He considered the past policy Was entirely wrong. Mr Lethbridge remarked that Te AKvamutu's charges all round,, compared very favourably with any other district's charges. Mr Montefiore sajd the Board's duty was to give the consumers supply as cheaply as possible. To accumulate profits and use them to supply people who had stayed out of the enterprise for years was quite wrong. Mr Sutherland said the rates were being steadily lowered. The new areas were hearing the costs of development, for their payments covered the interest on the installation.

The chahlman saul the policy was to create a better asset to the con3umsrs, arid figures proved; clearly that this had .been done. It was sound business.

Mr Macky observed that there was a very good asset, developed steadily, while at the swme time giving consumers as cheap light and power as was obtainable practically anywhere. He favoured the present po.icy as against Mr Montefiore's contention that mpre loan money should be raised to supply settlers insilde the Board's "termor)..' who had not been able to obtain service because of sparse settlemjsnt making the cost too high. Mr Montefiore said those people should have to await the raising of loans instead of the profits earned from present customers being used to supply them. He would still contend that those profits should be returned to consumers by way of lower charges. During a general discussion it was mentioned that during the visit of the chairman and the secretary-manager to Wellington next week they would investigate avenues for raising part of the authorised loan money for further l ; ne development, and' they k'pd been given the necessary authority to arrange for borrowing up to £7OOO to repay to the power fund account sums advanced to the loan account.

Mr Macky inquired if it was desirable to depart from, the present policy. The chairman thought the policjy shou'd be defined one way or the other instead of leaving the matter open for discussion month after month. The Board might decide whether or not to continue along present lines, which would mean paving for new lines out of ordinary profits. Mr Sutherland moved that the present policy of paying for construction out of revenue' be.continued till next year's estimlates are reviewed. He was firmly convinced that that was the wisest course, for the Board was steadily increasing its assets. The number of consumers was increasing year by year, thus spreading the responsibility. Mr Lethbridge seconded, saying he also was convinced that it was the wisest and fairest course. Mr Montefiore asked if the loan money was found to be available would the Board be prepared to take it.

The chairman said if the motion affirmed the proposal the money would not be uplifted. Mr Montefiore said he wouM support the motion if it was clearly understood that the policy would be reviewed at the end of the present financial year. He felt sure that if the Board's personnel was altered later there would be more support for his viewpoint.

The motion was carried. ,Mr Sutherland indicated that he would also .move to capitalise the money at present advanced to the loan account from the power fund account.

Mr North seconded. After a brief discussion Mr Sutherland decided to defer action in that direction until the end of the financial year.

'The Te Aiwam'utu Co-operative Dairy Company, Ltd., wrote confirming the arrangement entered into for additions .and alterations to the electrical plant at the factory.*—Approved. The relieving telegraph engineer, Post and Telegraph Department, at Hamilton, forwarded a report and valuation on three poles in Te Awamutu business area.—^Received.

The clerk, Ohaupo Torwn Board, wrote that he was instructed to point out that owing to the lew state of the finances the Board could not see how it could continue to use the street lighting at the present cost, and might be compelled to discontinue the use of the lights. He asked for re-cpn-n'xleration of a proposed reduction in charges.

To a question the mjanager said Ohaupo had eight street lights.

Mr Montefiore remarked that no reduction could be made while the Board continued its policy of carrying out development work out of revenue. Mr Sutherland said that rather it was. impract : cable to lower the charge until the end of the year. It was suggested that the Town Board reduce the number of street

lights if it could not pay for the eight lights. The secretary ww instructed to reply that no reduction in price could be mjade. The e'.ectrical overseer, Public Works Department, Auckland, wrote that the quest : on of supply for lighting and power at No. 2 camp, Waikeria Boi*-. stal estate, had again been raised, and he asked for information as to the minimiuim annual charge, it being understood that the Department would erect the necessary service line froim the ca!mp to the Board's line, a distance of approximately 46 chains. The approximate load would be 30 lights, two power points, and one 3-horse-power motor. The stated that the estimated cost would be £BO for transformers, etc., and the minimum annual charge would be £l3. He had replied to that effect. The financ'al statement showed the power fund account in credit £3OOB 10s. consumers' finance account in credit £205 12s 3d, and the loan account in debit £2383 4s 2d. The total credit in all accounts was. £B3O 18s Bd. There was £7570.6s 7d due by the loan account to the power fund account for amounts advanced up to 31st of March pending the raising of loan money. 'Revenue earned from sales of cui'rer.it for July w,as: General lighting and heating, £1216 6s 6d; power, £620 8s; penalties and sundries, £2B 12s; approximate street lighting, £3B; total, £1903 6s 6d. IRevenue for July last year totalled £1738 8s 3d. ; M:r Sutherland remarked that the figures were extremel v good, when it was remembered that reduced charges were effective in the latest figures. Accounts passed for payment totalled £1637 17s sd. Mr Lethbridge gave notice to move that members' fees be reduced by half. He added in explanation that he considered the proposed basis of 10s per meeting was ample, though he was not influenced by anonymous coirrespondence in the press when the Board decided two months ago to hold more frequent meetings. Mr Montefiore said that if the motion was that there be no fees at all he would support it. Mr Lethbridge said he was quite willing to amend his miotion accordingly. The subiect will be dealt with at next month's meeting.