HYDRO-ELECTRIC EXTENSIONS.

Taranaki Daily News, 18 May 1921, Page 4

HYDRO-ELECTRIC EXTENSIONS.

The results of the working of the New Plymouth borough hydro-electric department for the past year are exceedingly gratifying, the profits, after allowing for every charge, including depreciation, sinking funds, repairs and renewals, totalling the large sum of £8922. This is some £-2400 more than the profits earned in the previous year, but until the present extensions are carried out the profits are not expected to continue; on the contrary, they are expected to substantially diminish for the next two or three years, because interest on the capital involved in the extensions will have to be borne out of revenue. When, however, the extensions are completed, and the extra power generated is in use, the profits will recover to some extent. The fact is that the maximum profits on the present comparatively inexpensive scheme have been gained, and ratepayers cannot anticipate' the same ratio of profit on the enlarged scheme, mainly because of the very great increase in the cost of carrying out the new work. In his report to the council, the general manager rightly stresses the value of cheap power and the improbability of making big profits from the sale of surplus power to other parts of the province. The price of the power sold to Inglewood, for instance, was based on the estimates of cost of construction in January, 1920, but this cost, as we all know, has been practically doubled. Apart from this, however, we quite agree with the general manager when he points out the advisability of selling power as cheaply as possible outside, for what helps the rest of Taranaki must materially assist New Plymouth. That should be the town’s constant aim rather than the making of direct profits. A proposal was before the council on Monday to make provision at the new works for enlarging the size of the tunnel and forebay, etc., in antieipation of future demands for power, the cost being estimated at £B3OO. In the past we have had to pay dearly for the lack of forethought and provision for the future. We don’t want to find ourselves in this position over our hydro-electric undertaking. The extra sum is comparatively small, and the council should have no hesitation in agreeing to the proposal, if, of course, the money can be. Obtained, here or in England. It will undoubtedly prove a wise and remunerative investment, and enable the department to take other sources of water supply at some future date, when Mr. Blair Mason’s present scheme is completed. Really there is hardly a limit to the possibilities of power from Mount Egmont, and we have not the slightest doubt but that in the course of a few years the 8000 h.p., estimated. to be provided under the present scheme, will be found inadequate for the needs of Taranaki. With the expenditure of an extra £B3OO on the extensions now under way, the department will be in a position to deal with still further extensions should the demand for power warrant it. The borough manager is taking a long and wise view of the position, and should be supported by the council.