POWER RETICULATION

Otago Daily Times, Issue 24418, 2 October 1940, Page 5

POWER RETICULATION

PROPOSED EXTENSION SCHEME FOR SUTTON AREA GUARANTEES READILY OFFERED Negotiations between the Otago Electric Power Board and a number of settlers in the Sutton district are being carried out at present with a view to extending. the power supply which now ends at Middlemarch. If the proposal, which was first put forward in the form of a petition from the residents concerned, is decided upon, the Power Board will seek authority to raise a loan to cover the costs of reticulation and if this is granted the extension will be commenced.

The area for which a power supply ■s now sought was originally canvassed when the Middlemarch scheme was undertaken, but, at that time, the necessary guarantees could not be obtained. Residents in the area have now taken the first step towards a reconsideration of the proposal and it is the desire of the Power Board to meet their wishes

The subject was discussed at a recent meeting of the board, which left further negotiations in the hands of its engineer, Mr J. H Gardiner, and the member for the area, Mr J B. McGill. Their preliminary inquiries have been attended by promising results, the latest reports indicating that of the annual guarantees totalling £620 required to place the scheme on a sound footing. £4BO has been obtained and it is anticipated that the remainder of the sum will be made up without difficulty. The capital cost of the power reticulation necessary is estimated at £4150, and the annual guarantees are on a basis of 15 per cent of that figure. This allows 6 per cent, for interest and sinking fund on the loan, leaving 9 per cent, to cover other costs, including those of power supply. About 35 consumers are expected to be included in the scheme, and the average guarantee asked is in the vicinity of £2O though this figure varies considerably according to the distance from the main source of supply from the consumer’s property. A meeting is to be held at Middlemarch to-morrow, When Mr McGill will explain the project to prospective consumers.