POWER SUPPLY.

Taranaki Daily News, 13 May 1922, Page 5

POWER SUPPLY.

NEW PLYMOUTH SYSTEM. YEAR’S NET PROFIT £8062. REPORT ON OPERATIONS. The net profit on the working of the New Plymouth Borough Council’s electricity department for the year ended March 31, 1922, was £8062 7 s 7d (after making full allowance for interest, sinking funds, depreciation, renewal and reserve funds), compared with £8922 2s lOd for the previous year. This information is contained in the report of the borough manager (Mr. F. T. Bellringer) accompanying the annual balance sheet and accounts,

The amount of this year’s net profit, the report states, is considerably in excess of the electrical engineer’s estimate at the commencement of the year. At that time it was felt that the limit of the output of the plant had been reached and that consequently the revenue would not' be increased to any appreciable extent. On the other hand the undertaking would have to provide the interest and sinking fund upon a considerable amount of capital expended upon extension’ of the head work’s, from which no revenue would be derived until the works were completed early in 1923. In view of the above, it was anticipated that the net profit for the year would not exceed £4500. Under the circumstances the net profit of £8062 7s 7d shown must be considered very satisfactory. As the various accounts show a large amount of detail, the information contained therein is summarised as follows: —

Capital Account.—Capital expenditure at 31st March, 1921, was, exclusive of .scheme E2 txtensions now under construction. £93,046 Ils lid: hydro-electric extensions, scheme E2, £44,14/ 10s lid; making a total of £137,194 2s J Ort. The capital expenditure during the year was, exclusive of scheme E2 extensions now under construction, £4,948 5s 7d; hydro-electric extensions, scheme E2< £64,134 8s 10.4; making a total capital expenditure of £206,276 17s 3d. Of the total capital expenditure, as above, £163,969 8s 8d has been expended from loan monies and £42,307 8s 7d from revenue. THE TRADING ACCOUNT. The trading account shows a net profit of £1,134 14s Bd, compared with a net profit of £1,297 19s 9d for the previous year. This is very satisfactory, considering the financial stringency obtaining during the year under review. It was intended that as soon as surplus current was available for disposal the department should launch out to a much greater extent in regard to the trading side of its business, including showrooms in the business portion of the town. As it is inticipated that the partial scheme will be completed early next year, this is a matter which will require the attention of the council in the near future.

The income for the year amounted to £24,860 15s, compared with an income for the previous year of £23,180 Is 6d, an increase of £1,680 13s 6d. This increase is considerably less than the increase of 1921 over 1920, which was £4309 0s sd.

The total working expenses amounted to £7,018 17s sd, compared with 7s 9d for the previous year, being an increase of £550 9s Bd. The gross profit amounted to £17,841 17s 7d, compared with £16,711 13s 9d for the previous year, an increase of £1,130 3s lOd. To the gross profit of £17,841 17s 7d shown above are to be added rent of land £144 Ils 7d and interest on fixed deposits £6O, making a total of £18,016 9s 2d Of this, interest and sinking funds absorbed £5,850 7s Id, depreciation reserve and renewal funds £4.124 14s 6d, leaving a net profit as previously mentioned of £8,062 7s 7d. The result of the year’s operations is such as to reflect the greatest credit upon the electrical engineer and his stall. The department was working under great difficulties during the greater part of the year, owing to the demand oeing in excess of the maximum output of the plant. The position was a little easier towards the end of the year, due to the change-over to three-phase being completed, this giving a little margin in electrical generation.

THE EXTENSIONS. The actual financial position of the hydroelectric extensions was not disclosed, although the actual cash received and expended to March 31, 1922, showed that the whole of the £40.000 loan had been received; £25,000 of the £72,000 loan; £40,000 of the £60,000 loan; and £8,600 of the £9,000. Since March 31, the balance of all the loans had been either received or arranged for, making the total loan-money either received or arranged for £lBl,OOO. The actual amount of loan-monev received to March *3l, 1022. was £113.603 7s 2d. of which £110,227 Is Id had been expended. The expenditure to March 31, 1922, as shown in the returns, amounts to £110.227. leaving £70,773 available at that date to complete the works in progress, including contracts as scheduled, upon which £10,254 5s still remains unpaid. As detailed in the December report, the expenditure anticipated after completion of the works (for purchase of extra turbines and generators, reticulation lines, meters, and alteration of turbines), amounting to £20,000, and which was omitted from the estimates, must not be overlooked.