D.—l

Summarized Position: Percentage earned on Operating Capital after paying Working-expenses.

The general position to date is tliat the Electric Supply Account has been able to meet all operating and interest charges, has provided the statutory requirement of £1,925,921 for depreciation, and in addition, has provided £1,852,807 towards the statutory sinking-fund requirement of £2,067,461. In addition, £390,724 has been paid to the Reserve Fund from profits from time to time. In other words, the electric-supply system as a whole has paid all operating and interest charges and provided £4,169,452 in reserves, of which £1,538,178 has already been utilized for the paying-off of loans which formed part of the original capital. There are, however, still to be met arrears of sinking funds amounting to £214,654. Construction. The demand for electric power still continues to increase, and, in addition to the ordinary expansion due to farming development and the construction of houses, industrial development and the supply of military camps has imposed a special load on the supply system. To meet this demand additional main generating-stations and increased reticulation facilities have to be provided as a matter of urgency. On the Waikato River two additional 21,600 kW. units are being installed at Arapuni, thus completing the final development at this station to a total of 146,400 kW. At Karapiro some sixteen miles below Arapuni, a new dam is being built to utilize 100 ft. fall, and three 30,000 kW. generating-units are being installed, tlius providing 90,000 kW. additional power from which must be deducted 10,300 kW. at present being generated at Horaliora, which will be submerged when this new development is put into operation. At the outlet to Lake Taupo a diversion canal has been constructed on which six regulating-gates have been installed so that the outflow from Lake Taupo can be regulated to provide water as required for the generating-stations below. The use of these gates will obviate any water being wasted over the spillways at certain seasons, and this water will be stored for use when the peak demand requires it. At Waikaremoana work is nearing completion on the lower development which utilizes a head of 370 ft., and at this station two 20,000 kW. generating-units are being installed. The main feature of this work is the construction of 7,500 ft. of 16 ft. diameter pressure-tunnel. At Cobb River good progress is being made on a scheme recently taken over from a private company. This scheme utilizes water under a head of 1,964 ft. and four 3,000 kW. generating-units are being installed, of which one unit is to be used as a spare ; therefore the output will be 9,000 kW. This scheme is capable of being doubled at some future date. In Canterbury construction works are proceeding on Highbank scheme situated on the Rakaia River, although the water-supply is being obtained from the Rangitata River by means of a 42-mile irrigation race. The available fall is 330 ft., and one 25,200 kW. generating-unit is being installed.

XIII

I '" I ~ A-tmrmra Percentage Operating- Gross i Work i n g- Net, Net Balance capital. Revenue. j expenses. Balance. to Operatingi capital. | _ £ £ £ £ PerCent. North Island system 9,519,865 1,533,136 64-0,884 j 892,252 9 • 37 South Island system 5,882,967 678,813 .173,289 505,524 8-59 Totals .. 15,402,832 2,211,949 814,173 1,397,776 9-07