THAMES VALLEY POWER.

Hauraki Plains Gazette, Volume XXXIX, Issue 5281, 30 May 1928, Page 4

THAMES VALLEY POWER.

THE BOARD’S OPERATIONS. MANAGER’S ANNUAL REPORT. At yesterday’s meeting of the Thames Valley Electric Power Board the ma.nager, Mr R. Sprague, submitted the following report on the year-s operations:— LOANS. “The amOiunt of loans sanctioned by the ratepayers to date’ is £850,000, of which £Boo’,ooo has been borrowed and £750,000 expended. The interest and sinking fund on loan moneys raised make the board’s annual liability £55,623 9s 10c}. “The amount of interest and sinking fund to be paid by the Power Fund for the year ending March 31, 1929, will be £51,245 13s 7d. REVENUE. “The sales of electricity for the past year amounted to £107,534, which is an increase of £14,487 over the revenue of the previous year. “The reduction in revenue from the industrial bulk consumers was owing to the Rising Sun gold mipe, closing down, apd the dairy factories’ reduction was caused by the Public Works Department insisting upon the la.rgest factories taking their own load's for a portion of the year, thereby restricting the f unctioning of the board'. “My estimate for revenue for the year ended March 31, 1928, from electricity and other sources, w'a& £10'7,805. The tota.l revenue obtained, was £114,641 9s 7d, exceeding the estimate by £6'836 9 s 7d. EXPENDITURE. “The expenditure for the year was as follows: Power, purchases, £33,389 10s; management and general, £9298 18s 'sd; maintenance charges, £8275 15s; m tor transport, £2398 l'ss. 7d; tree planting poles, £245 9s l 2d; discounts, £7Oll Ils 8d; interest for year, £40,477 7s lid ; sinking fund, £8791 9s 4c}; replacement 'of cars and trucks, £722 13s; reserve depreciation, £4539 16s 6d ; reserve allowances, £1750. “The above figures, show a reduction in management and general for the year/and only a small increase in maintenance and transport. With the centralisation of stores, etc., during the coming year the overheads should he cut down to a minimum. “The amountss pa,id by the Power Fund in interest and sinking fund/ W the year Was £49,268 17s, 3d. This i s now approaching the full amount of liability for interest a,nd sinking fund on all moneys borrowed. OTHER DEPARTMENTS. “The installation and' showroom, department sales totalled £23,863 10s 3d, which is a decrease, on the previous year’s sales. Owing to the reticulation in the area, being limited this, was to be expected, but a very satisfactory working profit for the year was shown, this amount being proportionately greater owing to administration charges and stocks, being re. duced and purchase being kept down to ,a minimum. ESTIMATE FOR NEXT YEAR. “On the basis of last year’s electricity sales—these figures being from actual sales for the quarter ended March 31, 1928—the revenue for the year ending March 31, 1929, would be as follows■ “Bulk supply, £lO/340 ; town meters, £25,000 ; street lighting, £llO2 ; water heaters, £4968; ovens, £317?; flat rate, £59,860'. Total, £104,442. “These, figures are based on sales during a period' when supply was restricted to dairy factories, and the Waitoa factory (the largest consumer) did not receive any power for. the quarter.

“In addition, there should' he, installed 75 2 h.p. motors, together with supply to industrial consumers, and. applications are being received) daily for new installations and additional lighting, 'heating, and cooking points to existing installations. “The revenue from electricity and other sources for the year ending 'March 31, 1929, should be £119,472. “The expenditure should not exceed £119,246, made up as follows : Power purchases, £35,000 ; management and general, £lO,OOO ; maintenance, £12,000 ; discounts, £6500 ; depreciation, £4500; interest and sinking fund, £51,246. INCREASE IN SALES. “Th& following figures show t'he growth of electricity since operations commenced: 1922, £6260 0s 2d; 1923, £22,70t 4s 6d ; 1924, £42,391 17s 8d; 1925, 5s 4d ; 1926, £76,301 15s 2d ; 1'927, £93,047 ; 1928, £107,534. v From the abojve figures it will be seen, that the annual increase is. being stea,dily maintained. As stated in my last annual report, the estimating of revenue is now becoming very difficult owing to the restricting of supply by the Public Works Department, caused mainly by conditions operating at Horahora and Arapuni, )and the position for the coming year has not improved. CONSUMERS?. “The total number of connected! to the board’s mains- is now 6626, ■ including the boroughs of Thames, and Te Aroha, The Thames consumers total 1074 and Te Aroha 610. “There ‘are now installed, and operating on. farms 1998 motors,' bf which 1704 are 2 h.p. milking motors. Of these, 155 milking and 67 faKm motors were connected during the. year, in addition there are 374 motors connected on meters and ranging from %th h.p. to 100 h.p. The water-heat-ers connected now total 1395, of which 324 were connected during the year.

“Quite a demand has set up for electric ranges, and to diate 229 have, been installed, 77 being connected during the yea.r. GENER'IVL.

“Further legislation came into force during the year making it compulsory for poiwer boards to provide a depreciation fund in addition to .sinking funds. The amount to be proportioned annually having been scheduled by the Audit Office, and, in terms of this, £7012 9s 6d has! been set off for depreciation and reserves,'etc., for the year. Provision is rmnde in the 'Act for power board® flitch cannot

provide for depreciation, etc., by loan or revenue to borrow same by overdraft. However, this board should not have occasion to rwsort to this procedure.

“It will be advisable within the next few years to refloat the, £350,000 loan in terms of, the loan proposals, the board 1 having the right to do so. This will mean ,a direct saving to the board in interest and sinking fund 'of £9590 annually.

“Owing to the bank increasing the rate of interest during the year on loan hypothecation account, and the board’s refusal to; pay same, the construction of works was financed 'out of the Power Fund account. The advances bj' the Loan Fund to the Power Fund for the installation and trading departments totalled at March 31, 1927, £51,311 5s Id, and for the year now ended amounts to £29,698 12s, which shows a reduction of £21,612 13s Id. The total amount refunded by the Power Fund to the Loan Fund for the year was £23,840 7s. 9d. “The amount of servive the board is now giving consumers by troublemen alone is very considerable, the cost of same exceeding £sooo' per annum, inclusive of transport and maintenance of same, etc., owing to the large number of milking motors, which total 1704 on the board’s mains, necessitating every possible preyention of interruption to supply for milking. The number employed at present is 10, each of whom is provided with a half-ton truck and are stationed as follows: Paeroa, Turns., Ngate.a, MorrinsvHle, Tirau, Matamata, Te Aroh.a, and Springdale. This service is not equalled by any other powe.r board in New Zealand. ‘‘Outside of Horahora interruptions during the year the only other causes were mainly due to trees on. the lip.es. Every effort is now being made to cc-mpet owners of trees endangering the board’s lines to have same re. moved, a.nd action in one case is being taken as a test case. It is not only the interruption of supply, but the cost of repairs to, the lines is a big item of annual expenditure.”