D.—l

SOUTH ISLAND SYSTEM. MAXIMUM QUARTERLY LOADS.

The operation of the various existing power schemes and financial returns received therefrom continue to be satisfactory. The gross revenue has increased to £1,470,043, and after paying operating-expenses, interest, and depreciation it has been possible to make available a sum of £179,641 to the Sinking Fund Account which is still, however, £942,757 in arrears. Although so far as the people actually supplied are concerned the Dominion's electricity schemes can be considered eminently successful, there are still some twenty thousand or more homes in which it has not yet been possible to make a supply of electricity available. I have given considerable thought to the problem of making it available to these people wherever it can be done in a reasonably economical way, but have not yet been able to evolve any completely satisfactory method. There are other problems connected with the distribution of electricity with which this particular one is allied, and the whole question is one which needs special attention at an early date. To meet the increasing demand for additional power in all directions the Department has been actively engaged on new work and additions to power stations and transmission lines and on surveys and investigations for additional works and lines. To provide the additional generating capacity the erection of two additional units, each of 21,000 kW. capacity, has been completed at Arapuni ; a commencement has been made with a new development of 40,000 kW. capacity below the existing one at Waikaremoana, whilst a further 20,000 kW. generator has just been delivered for installation in the existing power-station on that scheme. In the South Island orders have been placed for two additional units, each of 15,000 kW. capacity, for installation in the existing power-station at Waitaki, and the Diesel-engine plant 5,760 kW. capacity previously located as a standby station at Lyttelton has been transferred and re-erected at Dobson, on the West Coast, to meet the special demand for mining purposes in that area. In addition to actual construction work, surveys and investigations have been carried on in relation to further power schemes on the Waikato River, and as to control works at Lake Tekapo, and for a power-station on the Rakaia River to utilize in the winter months the water diverted from the Rangitata River and used for irrigation in the summer months.

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