Manawatu Herald THURSDAY, SEPTEMB. 12, 1918. HYDRO-ELECTRIC POWER IN CANADA.

Manawatu Herald, Volume XL, Issue 1876, 12 September 1918, Page 2

Manawatu Herald THURSDAY, SEPTEMB. 12, 1918. HYDRO-ELECTRIC POWER IN CANADA.

SOME -in I (.‘resting iculars regarding the development of hydroelectric power in Canada arc '-■upplied by Mr -J. Simpson, who is a,i present on a visit to New Zealand. Some 20 years ago, he says, the Government of Ontario granted to private companies valuable concessions for the development of hydroelectric power at Niagara Falls, but 15 years ago the manufacturers of Ontario realised (hat the .price they were compelled to pay to these companies made an unfair handicap on them in competition with the manufacturers nearer the source of electrical energy. The high price of electricity made the power developed from coal almost as cheap, if not cheaper, than the electric power, the coal supply coming mainly from Pennsylvania. So the manufacturers began an agitation fur cheaper power, and for the Government to either develop power under Government ownership and control, or to enter into an agreement with one or more of the private companies upon a basis that would assure the sale of power at greatly reduced rates. The Government endorsed the plan, and appointed a commission to co-ordi-nate the interests of the province and the manufacturers in providing means to transmit and distribute power from the private companies at a rate mutually satisfactory to the companies and the Government commission. The municipalities asked the ratepayers to guarantee the bonds of the Provincial Government which were issued to supply the money for the transmission lines from Niagara Falls, the distance being between 50 and 140 miles, and

also to provide tlic money through the issuing of debentures to establish the plants for local requirements. On this basis of linance, the commission was able to float the bonds to provide the transmission plant and the municipalities to provide the distributing plant. The Provincial Commission sold the power to the various municipalities at not mure than one-third of the rates that were being charged by the private corporations. The private companies still continued as competitors, but they were compelled to adjust: their rates in accordance with the lower rates fixed by the Municipal Hydro-Electrical Commissions. In one year after the municipal plants were in full operation ilwas shown that the consumers of power were saving fully £OOO,OOO per annum as a result of the reduced rates. Ten years after the Government scheme was launched, the industries of the province were using 3,0(10,000 tons of coal less per annum. The Government venture was a success from the very beginning, and despite (he fact that the rates were reduced as to effect a saving of £OOO,OOO per annum, all the financial obligations, including the interest on debentures and the sinking fund, and the operating expenses had been fully met, and the surpluses were applied to development of the plant to serve a wider area.