CHEAPER ELECTRICITY

Dominion, Volume 5, Issue 1276, 3 November 1911, Page 6

CHEAPER ELECTRICITY

HUTT WATER-POWER SCHEME

WILL IT SUPPLY THE CITY?

THE MAYOR TO NEGOTIATE,

The harnessing of the Uutt K-jver is scarcely regarded as being a thing of today or to-morrow, but tho City Council spout a deal of lime iasl. night discussing a report Irom the ok'ctrical engineer purporting to show the saving which the abandonment of our present method of j steam generation of current in favour of 1 a scheme to purcha**? power from the. Covernment's hydro-elect ric plant, which is not yet even in embryo. j Ihe tramways engineer had submitted to councillors a confidential report which Kjive an <sitim»l.c of the advantages which the city would derive in inking current from the proposed water-power plant, n p l r ? Period of five y/virs he estimated that fourteen and a half million units would be purchased in bulk by the city annually, and tho calculation had town based on a pricc ofijsfirl. per unit, as suggested by the Kn'ginecr-in-Chief, Mr. Holmes. Engineer's Estimates. Following was his comparison of prosent and proposed .selling price* Present Proposed Prico Prico per unit, per unit. Tramway powor ... t.22d. 1.22 d. Power for pumping 2.0 d. l.fld. Power and heating ... 3d. & ljd. Ind Private lighting 7d. sd. Street lighting 4d. W. Jrack lighting 3.5 d. SM. "In tho expenditure I liavo aJlowcd," wrote Mr. Kichardson, "for tlic capital charges and running costs of a convener station by the corporation, a.n<l a linking lund sufficient to extinguish the capital ?L l , I10W<!r , 3,1(1 stations in IW-', when a large tramway loan and the eiectric loan mature. I have also mado duo allowance for increased capital charges which will have to bo met, due to expenditure on new machinery and extensions to the distributing mains. X have also taken into account tue probable ntcewary expenditure ln . connection with the alterations which will bo required by the lighting system in order to uso tho supply irom the Government direct on the mains from the tianslurmers. I have allowed for a consukrable expansion in the output of curium lor the city, and i have no doubt Dial when low prices for current such as suggested are in sight that the estimates will bo justilied. "The estimates show that the Government would get an annual revenue from the corporation of JXHi.OOO. an amount suthcient, according to Mr. Halmes's estimate, to justiiy the Government in proceeding with the scheme. As the output increased these results would be improved, and it would be possible still turther to reduce the cost of current to Hie citizens."

Air. Richardson submitted a statement of estimated receipts and expenditure* assuming that power was purchased at the rate of .(j per unit. Summarised, his estimates of expenditure were as follow —

Cost of current in bulk 36,197 10 0 Working expenses 20,038 5 0 Capital charges 19,360 0 0 bulking fund 10,CG9 0 0 Depreciation 7,280 0 0 Total £93,5-11 15 0 Assuming that the rates charged to consumers were: tramways, 1,22 d.; pumpiii" l.&d ; power and liglitmg, 1.0 d.; private ligatiui;, Od.; street lighting, 4d.; track lighting, 3.5 d.; he estimated the revenue u'nder the various heads to be as follows-.— •£ s. d. Iramways • 30,500 0 0 \ u«'I>ing 1,875 0 0 1 owcr and heating 10,037 10 0 Private lighting 41.CCG 13 i street lighting 7 jik vi a Track lighting 3 i 'Total M; 750 -0' 0 Showing a credit balanco of X2,--0o ss. In a second schedule, based on a calculation of .-Id. per unit as the price of current, and corresponding reductions of from sd. to 3.5 d. in selling price per unit for private lighting, of from id. to 2.5 d. for street lighting, and of from 3.5 d. to 2.5 d. for track lighting, Mr. Richardson snoived the probable revenue as .£79,510 Bs. 4-d., and tho expenditure as ,£76,729 18s. 4d., still showing a credit lalanee of .C27SO 10s. (The reason for the second schedule was that the Mayor hoped that the city would bis alMo to secure tho current at the lower ra'to).

Mayor Optimistic. Referring to the report, tho Mayor lnaue tho following statement-.—"For a lull year, with '.he aid of Mr. Richardson and ilr. Petersen, 1 have had this matter under consideration. 1 decided not to submit any proposals to my council until the city could; in taking current lrom the Government—l. Iteduco the cost of light to the citizens of Wellington. 2. Scrap the whole of tho machinery and buildings of the lighting and power stations. 3. Provide ior tlie repayment of tho loan moneys invested in tnoso parts of tho tramway and' lighting undertakings. The present report oi Ju-. Richardson's is carelnlly prepared, it ucals with tho various provisions to be made and shows that tho city of Wellington can pay to the Government JZW,m per annum, which will cover tho standing charges on tho inauguration of the system, including tho construction of tho works, and yet give to the city tho advantages above-named.

"if the city of Wellington can find all money required to make tho Government concern payable on a basis of 6d. per unit, and a largo increase of revenue can ba obtained as weU from tho liutt district, then tlio charge tho Government makes tho city ot lid. per unit cotiiu ,x? reduced, and with tho increased revenue obtainable troni the ilutt, the loss tnorugn reduction would be met, and evervone in tne city and suburbs would get tne and current still cheaper. Again, Unslow, fvurori, Johnsonville, and otner districts would require to be served, and as n is proposed to generate, say, 10,t)D0 horsepower at tho Upper ilutt, and about aOSO horse-power will to-day serve tne wiiole requirements of the city, there is enough ami lo spare for all. . . . "What i ask my council io-night is to authorise mo to open definite negotiations with the Government so that a basis of agreement may be arrived at, the details oi which would of course liavo to be submitted to tho council before final ratification."

He moved that tho Mayor bo authorised to open negotiations with the Government on the scneme, and to report to the council.

Mr. Stuart Richardson, electrical engineer, said that the scheme would be a good one for the city even when it was first started, and when the loans wove rcpaid by tho operation of tho sinking fund it would bo even bottor. The figures had been very carefully considered, and tho interests of the city had been safeguarded in every possible way. All the machinery and all the lines would bo duplicated so that there would bo no risk of the current failing.

Support from the Council, Councillor Fletcher said he was strongly in support of tho movement proposed by the Mayor. Tho scheme seemed to open up immense possibilities. He thought, however, that they should get an absolute guarantee from the Government that there should be a continuous supply. Councillor Smith considered that negotiations should be made so that Hie Government would not bo ablo to supply anyone within tho city. He thought' it was possible that tho schomo might mean such a revolution in the industrial resources of New Zealand, that it would astonish the world.

Councillor Fuller thought the wholo discussion was premature, ns lbo completion of tho scheme was a long way off. n« did not think the council should go cap in hand to the Government. The Government had not been too good to tho Mayor in the past...,. He moved that the discussion bo defend for three months.

There was no swojjfior, and the motion lapsed.

Councillor Shirtcliffo thought that if tho scheuio was brought to fruition it would bo another valuable work the Mnyor had accomplished for tho city during his term of office. Tho speaker, however, was of opinion Hint that part of the report which referred to private lighting did not go far enough, lie did not wish the council to go to the Government, and let the Government think that they were prepared to pay ,6d, pet ""it,

Ho did not think llmt the council ha<l yet rcachod Hie minimum cost for the generation of olccl.ricily. Ho v.'as of opinion that they should approach tho Covcrnmenl, prepared lo pay not more than o bsti-.ii nl' .•lil. |K-r unit. In an important matter like this it would not he ami-s if i,ni. or two councillors were as-VH-iatr-d with I lie Mayor in negotiating with tho Ooveniment.

The Mayor suggested Councillors Smith .'in'! ShirtclilTo.

Councillor M'Knnsric thought that a practical man like Councillor Trevor cliniiM he on Ihe committee.

Councillor Cohen said the proper time to discuss flic report, was when it como from Ilio committee.

Tho .Mayor 'aid that, councillors ought l/i remember fhat the Government would not spend .CHI,OOO for this scheme unless llfy could we a maiket for the current, and (he council ought to offer a market. It was a scheme in which the city and adjacent boroughs could combine with profit.

It was agreed (hat the Mayor, in conjunction with Councillors ShirtclifTo, Smith, anil Trevor should enter into negotiations with the Ciovernme.at.