POWER RETICULATION

Waikato Times, Volume 122, Issue 20502, 19 May 1938, Page 13

POWER RETICULATION

SPARSELY SETTLED AREAS CENTRAL WAIKATO PROPOSALS CHAIRMAN'S ANNUAL REPORT The matter of reticulating sparsely settled areas with electricity and the • methods by which it could be carried out were dealt with by the chairman of the Central Waikato Electric-Power ■ Board, Mr T. Hinton, in his report which was presented at the annual meeting of the board yesterday. “In my last report 1 brought up this matter with a suggestion of provision being made for reticulation in such areas as gave definite promise of becoming self-supporting within a 1 reasonable time,” said Mr Hinton. "However, there has been such a rush of work during the year, and there has also been such a difficulty in obtaining poles that it would have been futile to have introduced the matter again. I would now suggest that, when the opportunity does arise, consideration should be given to the reticulation of areas which, whilst at the time not offering inducement of being I self-supporting, are considered likely j to develop within a reasonable time j into self-supporting or even profitable j areas.” j Several Methods of Procedure j There were several ways in which the work could be done with the assistance of I lie revenue account, continued Mr Hinton. In the first place the lines could be built out of aecu- . mulated profits, but lliis procedure ' would seriously restrict Ibe amount of work that could be dune if the accumulated profits were not to be depicted- The revenue funds were put to a very useful purpose in financing loan expenditure pending the raising of loans, thus avoiding having the loan mo.ney lying idle whilst awaiting expenditure. It would be unwise to hinder this satisfactory method of ffnance. Another procedure would be to build the lines ou! of lojjn money to I the value of the amount on which .t i I full guarantee of 15 per cent, could j be obtained, and to provide the balance of capital expenditure from acj cumulated profits. This method was I adopted in putting in the main line to j Raglan, on which approximately £iom j of accumulated profits was expended, j However, this method was not rej commended for general use. j The third method detailed by Mr I Hinton was in build tin* lines w holly | from loan uccounl. tin* detlemney j n revenue. pend'mr Hi- linn* when' the scheme I self-supporting. to This Urn speaker considered |„ the most salisfaclMi-y. meih-ul ..f dnam-iug *;ich ;;rd;is as lll** hoard decided Were -mtlir entlv promising l-> merit special attention. \ssuniinc that an area j was considered by Hie board to be i likely to become self-supporting in j a reasonable tone, but on which at i the time guarantees could not be obt tained for more than JO per cent, in- - stead of 15 per cent., if the area were , reticulated the deficiency of 5 per ' cent, would amount to £so per annum ' for each £UK>o of capital expenditure. ! However. Ibis deficiency should, if the I district developed as anticipated, be a

gradually diminishing quantity. A Reasonable Cost In other Words, lo give that special area I lie benefits and advantages of electricity, tor which it would otherwise have to wait, and lo develop the area, an amount equal to 2d per consumer per annum over the board’s fiOUO consumers for each £IOOO of capital expeiidiluro would be required to be made up by general revenue, nil general business lines this cost w*• u i * 1 l*e quite reasonable. 'll is surprising, when the mind is cast bark, lo realise flie vast extent "f wlial was considered sparsely setUni areas I hat Infs since been reficui.Med." said Mr Hinton. It is more surprising still, that, in spile of tin's and the many reductions in charges Ilia! have been made, the percentage of revenue to capital expenditure is just as high, or even higher, than ever.” In congratulating the chairman on his report. Mr J. .1. Byburn endorsed the suggestion for Hie reticulation of the sparsely settled areas. Many of II: ’in should be brought in. be said, as with a certain amount of development they could lie expected to become self-supporting in a reasonable time.

self-supporting in a reasonable time