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There was one serious interruption to the Christchurch supply during the year : this extended over 6 hours 58 minutes, and was caused by an exceptionally heavy snowstorm on the 7th and Bth August, causing insulator failures. As all telephone circuits were down, and as transport was very seriously held up by the snow, repairs occupied a much longer period than would otherwise have been necessary. Considerable damage was also done and poles were washed out on two of the lines by exceptionally heavy floods in the Hawkins and Selwyn Rivers, though service was maintained over the third line. There were two serious and numerous minor interruptions to the supply to South Canterbury : the first was caused by the same heavy snowstorm in August which resulted in a good deal of damage in the snow area between Rakaia Gorge and Methven ; the second was caused by heavy floods in the Opihi River washing out a pole. Provision has been made to have river-crossings carried on towers with piled foundations and long spans, to obviate recurrence of these troubles. The provision of a second independent circuit to Timaru, now almost complete, should considerably improve supply to this district in the future. HORAHORA. The financial results on this plant have again been very satisfactory, though, on account of the considerable increase in capital charges, the profit has not been quite so great as in the previous year. The position may be summarized as follows — £ Capital investment .. .. .. ..735,091 Revenue • .. . . .. . . . . 85,830 Operating-expenses .. .. .. .. 19,612 Balance .. .. .. .. £66,218 The balance has been used in paying interest and depreciation, and has left a profit of £21,348 for the year. This has been used in paying £11,342 to Sinking Fund Account and a further £10,006 to reserves. This scheme now has a Depreciation Fund of £46,444, a Sinking Fund of £28,939, and a Reserve Fund of £30,554. Two additional units, each 2,000 kilowatts were brought into operation early in the year, and the whole station has given little trouble throughout the year. Transmission-lines to Auckland, to Rotorua, to Hangatiki (Waitomo Power Board), and to Pukekohe (Franklin Power Board) were put into operation during the year. In addition a line was built from Waikino to Aongatete, to enable supply to be obtained from the McLaren's Falls plant of the Tauranga Borough Council, and a supply of 1,200 kilowatts has been obtained from this plant. The maximum load on the Horahora plant during the year has been 11,400 kilowatts. There have been rather more than usual interruptions to the main lines during the year, in the main caused by exceptionally heavy winds bringing down branches of trees. Waikaremoana. The small initial plant (1,000 kilowatts) at this scheme has been leased to the Wairoa Power Board, and is being operated by them, pending being taken over again by the Department when construction work on the main development is well under way. The capital outlay is £80,564 ; capital charges, interest, and depreciation amount to £5,949 ; the revenue received has been £1,901 ; leaving a loss of £4,048 for the year. Mangahao. This, the latest Government station, went into regular operation at the beginning of the year, and, considering the magnitude of the initial development and the high costs ruling during the period in which it was built, has had a successful initial year.

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