PURCHASE AND SALE OF ELECTRICITY.

Shannon News, 22 May 1928, Page 3

PURCHASE AND SALE OF ELECTRICITY.

■» Horowhenua Power Board's Estimates. Large Increase in Receipts. The estimates of the Horowhenua Electric Power Board, for the year ending March 31st, 1929, came up for consideration at the meeting of the Board on Tuesday. They show a slight increase on the returns for the past year, but in the latter it is seen that, while the actual expenditure exceeded the previous estimate by a comparatively small amount, the income was largely increased, mainly in the direction of current used for heating, cooking and industrial purposes. No immediate concessipns are announced, but an allowance to users of separator motors is under consideration. The main items on the estimates were as below:— EXPENDITURE. .

Further particulars as to the position at March 31st, 1928, were supplied by the secretary and treasurer (Mr P. W. Goldsmith), as follows: — POSITION OF UNSPENT BALANCE OF LOAN MONEYS. £ Cash at Bank —Current A/c. and on deposit 31/3/28 . 2115 Balance of £IO,OOO Loan retained by Public Trustee 2000 £4113 Expended to Ist May— Wages • 137 Various goods • • 176 Wages to 9th May (approx.) 80 Poles arriving and to arrive (188) » 71 Sundry goods on order, meters, etc 200 Wire on order 350 £1515 Cash available £2600 (Shillings and pence omitted). GOODS IN STOCK AT MARCH 31, 1928. £ ■ Transformers 1219 Copper cable 896 Poles 731 Insulators 171 Line material and all sundry goods 1247 £4264 REFUND FROM REVENUE ACC. The balanee sheet for the year shows that in the adjustments between the Revenue Account and the Loan Account there is a balanee in favour'of the latter amounting to £420 4s 2d. The cash available for loan purposes will thus be increased by this amount, making a total of a little over £3OOO. FUTURE WORK AND REQUIREMENTS. With the limited funds now available, extensions will necessarily be on a small scale. The following roads are perhaps the most likely to provide openings for extensions during the present year:— No. 6 Line, Foxton. Extension Otakii Gorge Road (towards railway). Swamp Road, Te Horo. Road by Austin's and Easton's, Foxton. „ Provision must also be made for — Erection of service lines.. Some extensions t 6 low tension lines. Strengthening of low tension lines. Extra sub-stations. Transformers for contingencies. The question of what material, plant and goods will be necessary to carry out the above programme in addition to stocks already on hand and on order as previously stated, is estimated by the Engineer to be about as follows: — £ Transformers 1180 Meters 950 Copper wire .. 430 Insulators 200 ■ Line material 300 . Poles' 125 £3185 These figures, which make no provision for contingencies or accidents, indicate that the loan moneys available will only just carry out the work of the year, if the year's work assumes the proportions before mentioned. BEPORT OF FINANCE COMMITTEE The Finance Committee reported having met on the evening of the 11th May, all the membra .being present. It was decided to reeojmmend to the

Board that the Publie Trustee be appointed sole depreciation funji commissioner and that the money set apart as the Board's depreciation and renewals reserve (£4784) be in due course invested with the Public Trustee. The estimates of income and expenditure as prepared by the office were considered and discussed by the Committee, item by item. REVENUE ACCOUNT. The only items altered in thiß account were, those on the expenditure side relating to salaries and transport respectively, the former being somewhat increased and the , latter correspondingly reduced. The totals, after allowing for the sum of £3OOO for depreciation, stand as on the statement sent out to members. £ Expenditure 42,072 Income • • 41,260 Estimated dr. bal. on I the year's working at 31st March, 1929 £Bl2 With regard to the question of salaries, no changes are recommended in respect to the senior positions; a few small rises in respect to juniors have been approved and are included in the estimates brought down. LOAN ACCOUNT. The position with regard to the loan was discussed and the treasurer's statement was scrutinised. If the programme for the year's work is carried out it will just about exhaust the loan moneys raised by the Board. GENERAL. It was reported to the Committee that reducing the price of power fsr milking motors by id per unit on the first 100 units per month would be a concession which, based on last year's figures, would cost the Board £6OO annum. MINIMUM ON SMALL SEPARATOR MOTORS. A request to have the minimum reduced from 0s per month was deferred until information is obtained as to the number of consumers likely to be afiicctccl SUNDRIES AND CONTINGENCIES. The following statement shows the sundries and contingencies as they were last year and as they are estimated for the ensuing year:— Estimated Year for Aeeount. 1927/28 28/29

The recommendation as to the appointment of a depreciation fund commissioner was adopted, on the motion of Mr T. G. Vincent, seconded by Mr C. Blenkhorn. QUESTION OF CONCESSIONS. In reviewing the estimates and report, the chairman (Mr G. A. Monk) said it was not felt that the Board would be justified in making a recommendation for a reduction in the price of power for milking motors. The charge for,,separator motors was 5s per month per horse-power, with. 5s as the minimum for any motor used. Those

who were using a half-horse power motor had to pay ss, those who were using a 1£ h.p. motor 7s 6d. The Committee had the question of a reduction under consideration, and probably a recommendation would be made in the near future. It would be necessary to know the number who would be affected. The finance committee's report was adopted. LOOKING TO THE FUTURE. The chairman went on to say that the income, as compared with the amount of electricity purchased, was perhaps not as large as it should be. It was generally reckoned that, in order that the business should be on a satisfactory basis, the income should be about three times the amount of the purchase money paid for electricity. This Board wa3 not in a position to show that at present. They had a heavy industrial load, principally from the flaxmills. This wag a payable load, and had helped the Board considerably, but it meant that they had a very high peak, which they were unable to flatten out. The revenue compared more than favourably with the amount of capital expenditure, but it was. not quite so favourable as the revenue of some of the other Boards when compared with what they were paying for electricity This Board had now to find a certain amount for depreciation each year.. Practically three and a-half years of their present contract with the Department had gone by. He did not see any •"writing on the wall" in regard to their future contracts, but' he thought they could take it that there was not going to be any rise in the cost to. the controlling authorities. He thought that, with the advent of the Waikaremoana scheme, they were entitled to look forward to the time when the Public Works Department would be able to make them some concession. Some people would consider this statement optimistic; but there would be a connected load ready for Waikaremoana, and this would be a very fine asset when that scheme Avas ready. EFFECTS OF DAYLIGHT SAVING. Referring to the innovation, of daylight saving, last summer, the chairman stated that he had had a return sent to him by the Board's secretary, taken from a small group of users in Levin. It was for the months of November and December and of January and February. For the first two months there seemed to have been a saving to the group, of 18 units; but the second period showed exactly the same consumption as before daylight saving. He presumed, accordingly, that the Board had experienced some loss of revenue, but he did not think it had been a big loss. In many cases people during that period did not reach the minimum; there was probably a greater number than usual who did not reach the minimum, for which they had to pay just the same. PROSPECTIVE RECEIPTS.

The Chairman thought it could be taken conclusively that there would be a further increase in the use ot cookers. It was known that the flaxmills were fluctuating a little, and there were not many more that could come on now. Meter rents Trad gone for good. He had a little regret on this account, but apparently he was alone in that respect on the Board. The fact that the estimate for penalties was not so high this year as the amount received last year showed that the position of the "people was better. The trading account would gradually dimmish until it amounted to only a few pounds a year. Interest on advances to consumers was also a diminishing item. Referring to the estimated total did not think it could be said that the estimates were over-conservative, but he had every hope that they would reach the amount "named, and probably n.vn aa A it

£IO,OOO LOAN. Turning to the expenditure side, the chairman stated that, during the past year, the Board agreed to raise a £IO,OOO loan, and the sinking fund for that loan, which was for 20 years, was very heavy; they had agreed to the Public Trustee's suggestion to make it heavy. He did not know that this was going to have any ill effect on the Board. DEPRECIATION FUND. Continuing, the chairman said he understood that there was likely to be a concerted action somewhat against the question of depreciation. Some Boards were claiming that, by having to pay depreciation, they were unable to give concessions to their consumers, and they contended that, with the establishment of a good sinking fund and properly maintained mains, there was not the necessity for such heavy depreciation. He was of opinion that if this Board handed its undertaking on to posterity without this depreciation fund, they-would be handing them a burden. If any big storm destroyed the lines, they would have there a fund which they would be entitled to draw against for renewals. Whether it was too heavy, seeing that a sinking fund had been established, was a matter for discussion, but as far as it affected this Board he thought that the amount named was fair, and that considerable benefit would be felt when their lines started to weaken., He hoped that this would not happen for some years—but it certainly would happen.

SALAEIES AND WAGES. The original item of £3650 for salaries had been increased by the committee by £123, making £3773, the amount of increase required being taken off the transport estimate (originally £1500). The committee felt that probably after this year the office staff might be, reduced a little; but for the present year it was felt that the minimum staff they could do with was there, and those employees would have to be kept going. If it was found that, during the year, they could do with less, advantage would be taken of that. Wages would probably be reduced somewhat this year. Although there had been a reduction in the number of men employed—six or seven having been put off recently—those men were praetically all on loan expenditure.

Though the number of outside men had been reduced, the wages were still about the same.

MOTOE VEHICLES

The chairman added that the matter of transport was one that had exercised the minds of the committee somewhat, owing to the number of motors which the Board possessed. Ho found that they had the following cars:— The engineer's, the foreman's, two for inspectors, one for the meter reader, and one spare Ford car that was used when one of the others was laid up. While they had plenty of cars, they had not any spares at present. In lorries they had the big lorry, which they could not do without, as it was used for carrying poles and transformers; two Morris trucks, which would not be on the road as constantly as in the past; and three runabouts. One of the runabouts was used at the station in Shannon; the man in charge and an assistant constituted one of their gangs. There were two runabouts attached to the depot in Levin. He did not think there was any likelihood of the Board's having; to buy any cars or" trucks in the near future. It had exercised his mind for some time whether they had not too many, but their engineer (Mr J. A. Smith) assured him that use could be made of them. The transport in this district would always be heavy, owing to its geographical position. ■ i '. The estimates were passed, on the motion of the chairman, seconded by Mr Vincent,

Estimated Estimated 1927-28 Expended. 1928-29 15,500 16,117 16,600 Interest, sinking fund, and Maintenance and renewals . principal 12,000 2,000 3,558 1,927 500 12,166 2,784 3,575 2,620 489 12,757 3,000 3,773 . 2,650 400 Public lighting (renewals and attention) 1,500 150 1,451 83 412 199 1,377 100 412 Board members Office rent and cleaning 400 215 200 200 460 480 Printing, advertising and stationery 220 206 450 464 965 Sundries and contingencies . 500 Interest on advances to consumers i 900 600 INCOME, £39,120 £40,815 £42,072 Estimated ] Estimated 1927-28 Earned 1928-29 Electricity salesHeating and cooking 12,800 4,000 13,618 5,183 14,100 5,660 Power — • ' . £7,252 1,503 483 \ . . 834 • 5,604 14,600 2,300 15,676 2,806 16,000 2,880 1,300 1,182 1,330 800 1,091 100 263 200 250 387 - 100 420 812 Interest on advances to consumers .. 621 Estimated dr. bal. Mar. 31, 1929 .. £36,530 £41,354 £42,072

£ £ Bad and doubtful debts 302 200 Shannon Dairy Co 300 Foxton, Paraparaumu and Paekakariki services 133 90 Bank fees and exchange 42 42 41 41 Court fees, summonses, etc 24 20 Greenhouse waterheater 26 Legal charges and stamp 24 20 15 10 N.Z. Power Boards Assn. 12 12 46 50 £965 £480