ELECTRIC LIGHT WORKS.

Taranaki Daily News, Volume LV, Issue 301, 13 May 1913, Page 8

ELECTRIC LIGHT WORKS.

YEAR'S OPERATIONS REVIEWED. < 1 NET PROFIT OF £1,207. ] A comprehensive review of the opcr- i ations of the Borough Electric Light Department during the past year was subiiuittci] to the Borough (Council last night, by the town clerk (Mr. F. T. Bellringer). Dealing with the revenue 1 account the report stated:— , Finance—Owing to the extensions of the head works coaling so much more < than was originally "estimated, it became necessary, contrary to expectations, to raise the £12,000 loan, the debentures for which had been hypothecated to the Bank, Tho A.M.P. Society took the whole of the amount at par at 5 per cent, interest with y„ per cent sinking fund additional. The interest and principal were payable in Sydney, New , South Wales, free of exchange. The I loan is repayable on the Ist October, ( 1922. Considering tho state of the, money market at the time of the raisl ing of the loan, these terms must be ] considered satisfactory. The capital exI penditure for the year amounted to £11,210 15s Id, made up as follows: j Extensions at the Power House inteluding forebay, pipeline, and machinery, ] I etc., £9,788 18s lid; additions to exist- j ing plant, transmission line, etc., £lB !)s ] ■ 7d; private ligliting extensions, £1,298 KJs Id; public lighting extensions, £lls 10s (idj. total £11,216 15s Id. Of this amount £BOOS Is I Id was expended from the £12,000 loan, £BB2 14s 10d from the £5,200 loan, and £2,328 18s 4d froir revenue. On the year's working this account showed a gross profit oi £4,414 17s 7d. This had been appropriated as follows:—lnterest on capital, £1,213 125,; sinking funds, £134 lGs 4d; depreciation, £l,Bsti 2s 8d; total, £3,207 (is 7d. This left a net profit for the year of £1207. The most unsatisfactory feature in connection with the balance sheet was the item "profit ou sale of goods, £3 13s 7d." The profit for the previous year amounted to £75 8s Od. Whilst he, agreed that the Council should purchase goods for sale in order to prevent any possibility of exorbitan charges by tradesmen, he felt that any sales of goods should be at such prices as would enable tradesmen selling at the same prices to realise a reasonable profit. A large amount of the sales had been made to tradesmen who received a spec--1 ial discount, but in these cases also there should be a sufficient margin to pay for handling and for reasonable profit to the Department. In order to show at a glance the rapid growth of tho Council's electricity business, he appended several tables of comparisons for the different years, the figures given 1 being as at 31st March in eacli year. ' Tn connection with these comparisons f it had been his desire to have shoHvn the ' number of electrical units generated, the line losses between the power station • and the distributing station, and the line losses between the distributing station and the consumers' meters. The Electrical Engineer, however, reported that owing to being in a transition stage since installing the 0,600 volt genA erator, the power house Tecords do not j show the total units generated for the year. He was thus unable to deal with this particular phase of the question. : , NECESSITY FOR INCREASED WATER i, POWER. '■. The Council had since the inception of : the scheme, always understood that - sooner or later some artificial means '. would be necessary to increase the head i of water at the intake in order to give r increased water power at the turbinw, but it was only on the 25th March last that it realised that the works were almost immediately necessary. From time to time reports 'had been received from different engineers on the matter, and as late as February sth last, Mr. H. W. Climie, C.E., in reporting upon the i stoppage of the water Bupply to .lie ;, reservoir of the previous month, and . after making a test of the electrical ma- ) chinery, stated:—"The conclusion I have i arrived at is to confirm the opinion ex- . pressed in my letter of July 4th last, t that there is quite enough flow through . the tunnel without building a weir to 2 wive 450 horse-power (300 k.w.). If the t electrical output is larger than this, it will be necessary to build a weir or adopt other meaauTes to maintain the water level at the forebay high enough to supply the reservoir." On the 25th March, however, Mr. Climie intimated that the Electrical Engineer having disputed the accuracy of the figures ob- ( tained- from the power-house Engineer t regarding the amount of power developed by the turbines during the dem- ; onstratio.i trial, he had carried out a , complete new test. As the result of the new test, Mr. Climie recommended the immediate construction of a weir. In the meantime, however, the poll on the tramways loan had been taken, and , no provision had been made therein for the cost of this work, which will probably amount in round figres to £3OOO ; There was also the question of the I duplication of the transmission lines, , ! which would be necessary before power . would ja available for the tramways. , No estimates had been supplied for this [ work, but he understood from the Electrical Engineer that at a rough estimate the cost would also be in the , neighbourhood of £3OOO. The Council , had therefore in the near future to pro- , vide the sura of £6OOO for these two. i works. He believed that it was intended to endeavour to provide this out of revenue augumented by a temporary advance from the district fund. Verycareful consideration should be given to the linances of the Department before the course suggested is adopted. The accounts showed that at the 31st March there remained an unexpended balance of the £12,000 loan amounting to £3,994 18s Id, and a cash balance on the ordinary account of £Ol4 Os sd, a total of £4608 18s Od. Against this, however, thue were outstanding liabilities on extensions, works authorised, and materis Is on order amounting to £4207 15s Bd. Had all these works been completed and accounts paid before the end of the year there would therefore have remained a net available balance in cash amounting to £4Ol 2s lOd. It would be seen, therefore, that if the cost of the weir and the transmission line were paid for in the way suggested; it can only be done by tying up the future profits and depreciation funds for several years. The result in his estimation would be to cripple the Council in connection with its ordinary public works, and to als# .•cripple the electric tight business for some years. Any available revenue from j the department would be required for

some years in pushing out private lighting wires in every direction ii) which profitable business can be found. This, in his opinion, was the direction in which capital expenditure from revenue should be made, and in the meantime, such larger payments us those mentioned should be provided for out of loan monies. Lafoc on, no doubt, the industry would .lave grown t'- such pn "\t> ■•■ that it would be able to meet heavy ex* penditure o! tliis i;:«.cur--, ami sliJl .u>. sufficient fund-i available for private lighting extensions. Tie, of course, recognised! that this was a policy question, '"'i pi, the same time, he fel* it his duty to point out what effect in his opinion the carrying out of such a policy would have upon the finances of the department.