ELECTRIC POWER SUPPLY

Otago Witness, Issue 4028, 26 May 1931, Page 33

ELECTRIC POWER SUPPLY

AGREEMENT WITH GOVERNMENT. NEGOTIATIONS CONCLUDED. The Minister of Public Works (Air W. B. Taverner) announced on Thursday that finality had now been reached with regard to the agreement between the City Council and the Government for the purchase of electric power from the Waitaki station which was now being erected by the Government. The agreement was signed by the City Council about a fortnight ago, and the contract was made complete when the Minister's signature was affixed on Thursday. ~ Mr Taverner said that at some stages it had seemed that it was going to be impossible for a satisfactory agreement to be come to and the negotiations had been very involved. He was consequently extremely- gratified that the business had finally reached a conclusion. Dunedin had been saved, said the Minister, from the great expense which would have been involved had it been decided to carry out the proposed development work at Waipori, and the Government had reason to be pleased at having obtained a very important customer. He was of the opinion that all concerned had cause to feel gratified at the satisfactory agreement which had been made. EFFECT ON WAIPORI COST OF WAITAKI POWER. “The difference between the price the City Council will pay to the Government for power, and the interest and other charges which will be saved by the reduced capital expenditure at Waipori, will be tlye premium on what may be regarded as an insurance policy against a breakdown of the power supply,” said Mr J. J. Marlow, chairman of the Electric Power and Light Committee of the Dunedin City Council when questioned by our representative regarding the council’s view of the agreement. “From the time the Waitaki scheme is completed, in the event of any mishap at Waipori, there will be no danger of a serious delay in supply for trams, manufactures and lighting.” The agreement covers a 10-year period from the date of commencement of supply, the maximum supply which may be demanded by the city being 10,000 k.w. Supply will be given from the Waitaki power, station to the Government substation, at Halfway Bush, whence it will be taken over the City Council’s lines. “ The city is in the fortunate position,” said Mr Marlow, “of being able to generate power more cheaply than it can buy it from the Government under the contract, but the ability to purchase power from Waitaki means that it is assured of a continuous supply regardless of possible mishaps.” He explained that the council would, under the terms of the agreement, have to pay for 3000 kw at £6 10s per kw tor the first year after the power supply was available.' The cost could then be increased by £3250 per year during the ensuing five years, and the minimum amount of power would be increased simultaneously by 500 kw per year. In the sixth year the minimum amount of power would be increased by IOOOkw, so that at least COOOkw would have to be paid for. The minimum charge for the fifth year would thus be £32,500, which would be increased for the sixth year by £GSOO, making the minimum amount to be paid for power in that year £39.000. This figure and the minimum of 60t)0kw would then be constant for the remainder of the currency of the agreement. It would not, of course, be economic to pay for this power and not use it, so it was intended to use the minimum quantity and to make a saving on expenditure at Waipori. The principal effect on the council’s present power scheme was that it would not now be necessary to continue the development work at Waipori which it had been intended to. carry out, so that, instead of building the new dam to a height of 110 feet, it would be left at its present height of 67 feet for the next 10 years at any rate. The water now stood at a height of 55 .feet in the old dam, and the winter rains'would probably raise the level by another 12 feet in the new dam, into which it was anticipated that the water would be turned in about a fortnight’s time. “As the sum of £19,500 will have to be paid to the Government as soon as Waitaki can supply power,” concluded Mr Marlow, “ the Electric Power and Light Department intends to save as much as possible on construction work as the interest and other charges will help to a considerable extent to offset the large annual outlay.”