Power Demands In Borough

Bay of Plenty Beacon, Volume 12, Issue 59, 23 June 1948, Page 5

Power Demands In Borough

STATISTICS SHOW NEED FOR LOAN

Development of the Whakatane Borough in recent years, with its consequent development of the demand for electricity for commercial and domestic purposes, has caused the Borough Council to consider the raising of a loan of £7,500 for the purpose of extending electrical services. A motion to apply to the Local Government Loans Board for sanction for the loan is to be considered when the Council meets again on July 12. It is proposed that security for the loan shall be a special rate of 1 2-sths d in the £ on the unimproved value of all rateable property in the Borough. Recent rapid development of the Borough and its demand for electricity are evidenced in figures compiled by the Town Clerk, Mr L. D. Lovelock, showing that,, whereas in 1945 only 10 permits for new dwellings and 29 for additions and alterations to a total value of £33,318 were issued, the figures for the year ended March 31 last were 42, 67, and £66,366. During the same period, 37 State houses, not included in the figures already quoted, were built. Subdivision of land, which is directly related to development has in the past two years been considerable. Also, the Council last year, passed a By-law allowing back areas tc be subdivided with a frontage to a common right-of-way and in consequence property owners have been permitted to sell building sections which were previously barred. The Housing Department has also, within the past 12 months, purchased large blocks of land in the King Street, Stewart Street area, necessitating the construction of new streets and providing for the erection of upwards from 120 houses. The growth of the electricity load is evidenced by the fact that the maximum demand in 1933 was 295 K.V.A. which increased to 335 K.Y.A. in 1937 and to 508 K.V.A. in 1939. The 1947-48 maximum demand was in excess of the registering capabilities of the meter at the Government sub-station, but was assessed at 730 K.V.A. Actually the question has been for the past two years or more that the load has been drastically restricted so that it will not exceed the present sub-station capacity of 750 K.V.A. This has only been possible by prohibiting new range and hot water installations in other than new houses.

Mr Lovelock points out that the undertaking since 1922 has met all capital expenditure out of revenue. In 1939 Loan Authority was obtained for £7,500, for Capital Expenditure and Main Sub-station Extension but debentures were not issued as the items were financed out of revenue and Bank overdraft. The present sub-station was installed in 1921 to handle the output of a small Hydro Electric Station of 240 K.V.A. The switchgear installed in this sub-station is now handling approximately 800 K.V.A. It became necessary to purchase land more centrally situated for distribution purposes, erect a new sub-sta-tion building, transformer foundations, and a 750 K.V.A. transformer, extension of 22 K.V.' Transmission Lines to new sub-station site at a total cost of over £3,000. This work has now been completed and paid for out of revenue, up to and including March 31, 1948. It is indicated that the ordinary revenues for the current financial year will be insufficient to meet necessary expenditure, and while the account reasonably can be called upon to meet a certain amount each year for capital requirements, the anticipated expenditure is reaching proportions which the revenue of the undertaking cannot bear. Therefore, to avoid the imminent financial difficulty it is recommended that the loan of £7,500 be raised.