ELECTRIC LIGHT EXTENSION

Taranaki Daily News, Volume LIV, Issue 73, 16 September 1911, Page 8

ELECTRIC LIGHT EXTENSION

1 AND HOW TO FINANCE THEM. 1 The Borough Council had a general I discussion last night concerning the dec-' trie lighting department, its extensions and possibilities. The meeting of Monday had been adjourned till last night to allow of the Council going as fully as possible into the whole matter of the finances before accepting tenders which had been received for supplies of plant and for carrying out certain works in connection with the enlargement of the department's operations. Councillors, as a result, gained much information, and the discussion drew details that, whilst very important, had not hitherto been common knowledge among the members. Several of them were not conversant with the detailed reports obtained in the life of the previous Council from Mr. Fred. Black and Mr. 11. W. Climie, so they were not conversant with the scheme of extension or with the necessity for it. The chairman of the Electric Lighting Committee, Cr. James Clarke, submitted the following statement of the estimated expenditure on new works and the approximate funds available, as follows: ESTIMATED EXPENDITURE. £ Machinery & duty (approx.) 3560 Race (estimated) 800 Crane (estimated) 200 Extension powerhouse (estimated) 350 Foundations (estimated) 200 Erection machinery and pipe con-

nection (estimated) 200 Pipe specials (estimated) 350 Pipe line and forcbay 3353 Consulting engineer (sav) 175 Excavations, etc., pipe line (est.) 150 Contingencies 5,00 On order, meters, poles, wire, etc. 750 10,388 Approximate funds available.—Balance electric light loan, £883; reserve fund, separate account (set aside 1010-1911), £1312; reserve fund, 1!) 1,1-1012 (estimated) £1500; profits from electric light, from initiation to March 21, 1010, transferred to general account, £1007; total. £5392. Cr. Clarke reviewed the finances of the department, and suggested the different methods by which the money could be raised for the extensions. The money could he advanced from the district fund account, but he didn't like that, for it would have the effect of increasing the Council's ovedraft in 1013 or 1914 to about £13.000. That was the only way the money could be raised without going to the ratepayers. A loan could be raised from the Government, but 'thev couldn't get the money there on the 3% per cent terms for an undertaking like this. The Council could issue debentures to the public for £IO,OOO, but he was not keen on this, for the Council would be dependent upon the debentures being taken up quickly. The Miheme that he favored was for the Council to issue debentures at 4'/> per cent., and to hypothecate them to the bank, opening a separate account, to whose credit would be plated the £5392' 1 now in hand for the electrical department. The Council could advertise that 1 these debentures were available, and the ' town clerk could lift them from the bank as they were required. The debentures ; could be issued for short terms of two, three or four years. These, he thought! would be rather a popular investment just now. This system would give the | electric light department a freer hand I than if the money were i the district fund account. The chair- | man of the committee could hardly ask I the Council for a further £SOO or £IOOO for urgent extensions at any time if be. knew at the time that the district fund overdraft was so large on account of the advance to his department. Cr. Clarke, replying to Cr. Morey, said the machinery now proposed to be I installed would give plenty of power for the suggested tram service. Cr. Morey: But is £IO,OOO enough? Cr. Clarke: We have £5392, which brings the total to over £15,000. He explained that of that £5392, there was a sum of £1097 which comprised the profits of the electric light department up to 1910, and which had been used in the district fund.

Or. Gilbert couldn't see where the .Council was going to get the £lf>97 to repay to the department, for the money ha'd been spoilt on the roads. He preferred, and he believed the public would prefer, a straight-out loan, rather than use the district fund and rob the roads. The Mayor (chairman for some years of the Llectrie Lighting Committee) reviewed the progress of the department and its present requirements. Enlargement of the plant was absolutely necessary. and the Council bad obtained reports and estimates frohi Messrs It. \V. t'liinie and I<\ Black on the scheme. The estimate for the whole of the work, including a weir across the river, etc., was over £11:000, and now the Council realised from the tenders how unreliable engineers' estimates were. Tenders showed that the Council would have to pay £IO,OOO for a comparatively small portion of it which had now become absolutely necessary. The chairman of the l'.lectric Light Committee need have no dillideiu'e in approaching the public for an electric light loan, for the ratepayers knew it was revenue-producing, and that they would not be called upon to pay a penny of interest. But the £I0,'00(> proposed was not enough. A Greater Xew Plymouth was in the air. and there was to be a big increase in demands for 'street lighting and private lighting. There was in sight an increase of revenue of IMOOO a vear at least and the Council should ask the ratepayers for authority to raise £20.000. One extra set of machinery was necessary in order to have a reserve set. At present there was no reserve power at all. Or. Anibnry said that the chairman had made the position very clear. The Council would be justified in goin« to the people and authorising the borrowing of this money, preferably oil the debenture system, and he felt sure the ratepayers would agree to the loan, for it could be shown to them that it was a very remunerative investment.

Cr. Clarke said that the Mayor's suggested borrowing of £20.000 would mean a straight-out loan. He would not like to tackle €20.00!) worth of short-dated uiMKMitiires.

1 he Mayor said that the £20.000 would be required, for before the second set could be installed the Council would have to construct a weir across the Waiwa,(costing, say, .1*3000). and the raising of the bed of the Mangamahoe •stream to permit of the enlargement of the flow of water through the tunnel. . Mrtimix said it was quite refreshing to get some details of the electric light department. Why hadn't (hev heard of these things before* " 1 I lie Mayor said the Council had heard ■'.l' iibont- this before, ft had been published. 1

Cr. Clarke snid 1 lie second set was an emergency set. Why provide water to 1 'in :1S well as the other set when it wns not intended that the emergency set and the regular miU'hinerv should be running at the same lime. The weir would not he required until a third set was being put in. and the first emergency set would not be used until the second emergency set was required, in probably about, four or live years. ' Of course, if the trams were authorised be-j fore tlu- four or five years were up ' then that was a totally different proposition. |

In answer to Cr. Clarke, the Mayor said there had always 'been sullicient water to run the present machinery, lie couldn't say whether there was enough to run the new machinery. They (hadn't had experience of it yet. (Jr. Clarke: If the past electric light committees haven't provided for this, it's pretty rough on the present one. He wanted to know why the Mayor spoke of 700 or 800-h.p. being required. Tin? Mayor said that now the machinery was being run by 330-h.p. The new machinery would take SoO-h.p. and 50h.p. for an exciter. Thus the total horse-power required would be 730-h.p. The 'Mayor added that so far the Council had been fortunate in that there was always a flood in the river, which had enabled the Council to run an overload. v Cr. Ambury: There was no flood in the river last vear.

The Mayor: Our big load is in winter, and during the winter they had been running so close to the margin that the department had had to decline further business. The electrical engineer had reported to the Council that the machinery was running up to the last ounce.

Cr. Morey: Was that the fault of the water, or of the machinery? Mr. Mack, the electrical engineer, replied that they had worked to the full capacity of the turbines, but there had always been plenty of water as long as the gratings could be kept clear. Cr. Clarke: What will it take to run the machinery when we instal the new 200-kilowatt set? Mr. Black said they were getting 200 kilowatts now, and it took 400-h.p. to produce it. Cr. Clarke: What horse-power can we get in the tunnel without a weir or dam'! Mr. Black's reply was that, without going into the theory of velocity and depth of the water, but figuring on the depth of water generally available now, they could get 800-h.p. without a weir. Cr. Clarke: Then if we can get 800-h.p. without the weir, won't that do us for six years? The Mayor, interrupting: No, only two or three years.

Mr. Black: If our consumption increases at the same rate as in the past it will do for five or six years. Cr. Clarke, to the Mayor: The engineer thinks the plant we're putting down is good enough for five years. You say two years. The Mayor: [f you put it down, and don't look for any more consumers, it will last till it wears out. Cr. Clarke, heatedly: That's not what we want. He went on to say that he was not prepared to ask the ratepayers to authorise,a loan for the weir until he was assured by an expert that it was likely to he wanted in the next few years.

The Mayor said that Westown, Frankleigh Park and other suburbs would soon want the light, and he believed the past rate of increase would be maintained. It was not necessary to raise the £•20,001), but merely to get it authorised and raise the money as required. Cr. Ambury: I believe in borrowing

money when we want it to spend. I believe the peoplo will vole for a £12,000 loan if it can be shown that the money is required in three or four years. But if you ask them to authorise £20,000 when you only want£ 12,000, they'll say, '• .£20,000 be hanged!" and the loan would be rejected. Cr. Clarke moved that steps be taken to raise a loan of £12,000 by debentures, to be hypothecated to the' bank, as already described. Cr. Stocker seconded. Cr. Buxton thought £15,000 would be required, and moved an amendment that that amount,be borrowed. Cr. (iilbert seconded. Cr, Clarke drew attention to the fact that the revenue would pay for extensions. They already had " £SOOO odd. and there was no need to borrow more than ;£ilo,ooo. Cr. Ambury said the New Plymouth people would very quickly authorise the borro wing- of a further sum if they could be shown in five years' time that it would be interest-earning. Cr. Ilartnell: How much of vour £12,000 is for extensions?

Cr. Clarke: We ought to have from £ISOO to £2OOO a year out of revenue for extensions. The Mayor said there would be expense in the next year or so in changing the voltage, and this, together with the probability that the distributing station would in consequence have to be removed from its present site, would make a big hole in £IOOO. He hadn't intended to bring this out Or. Stoeker: By ail means bring it out. want to know all about it. The electrical engineer said that it might not be necessary to alter the \oltage fur five vears if it were convenient to leave it till then. _ The amendment was lost, and Cr. Clarke's motion carried. A ratepayers' meeting will be called to discuss the loan proposal. The electrical engineer was authorised to proceed by day labor with the construction of the tail race.