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Pending the installation of the additional plant now on order, every effort has been made to meet the demands for current for private lighting. The growth of this demand during the past four years is shown in the following table:— Units. Revenue. £ 1906 ... ... ... ... ... ... 46,000 £1,150 1907 ... ... ... ... ... ... 56,240 £1,406 1908 ... ... ... ... ... ... 65,930 £1,689 1909 ... ... ... ... ... ... 74,320 £1,858 In order to meet this increasing demand with an already overloaded plant, a second wing dam was thrown out at the head-gates of the intake-flume at Okere, raising the water-level another 6'in., to a total head of 15 ft., and increasing the maximum output of the plant from 95 up to 105 kilowatts, with both generators fully loaded. In order to still further assist in meeting this demand, all the arc lamps in the streets have been replaced by clusters of metallic filament lamps, considerably reducing the consumption of current. In addition, the work of putting meters in all the premises has been pushed on. These have the effect of largely reducing the consumption in premises formerly charged a fixed rate based on an estimated average consumption of current. As a result of these measures eighteen new consumers have been connected to the mains during the year, bringing in a minimum increase of £54 in the annual revenue. New distributing-mains have been run along the Ohinemutu Road, giving four additional street-lights at important corners, extending to the Utuhina Bridge, and through Whakarewarewa as far as the new baths, supplying these baths as well as several private consumers and four new street-lamps. The work of preparing for the installation of the new plant on order has been pushed on. The raising of the sides of the head-race at Okere power-house and the erection of wing dams on either side of the river will enable the existing flume to carry the increased amount of water required, and has in the meanwhile increased the capacity of the existing turbines from 85 to 105 kilowatts. The new turbine will have a capacity of an additional 100 kilowatts, but when it is installed I would recommend that only two machines—the new 100 kilowatt generator and one of the old 50 kilowatt generators—be run at a time, and that this output (150 kilowatts) be taken as the maximum output of the plant. This would enable one 50-kilowatt generator to be kept in reserve ready to put on to the load in case of difficulty with either of the others. At present we are taking very serious risks of a serious stoppage by operating the whole of our plant at full load every night in the year, and it is only by the utmost vigilance and attention and unusual good fortune that we have carried on so far without disaster. On two occasions during the year serious breakages occurred, but in both cases temporary repairs were effected before the following evening, and the supply carried on without interruption. Regarding 150 kilowatts as our maximum output with the new plant installed, this limit will he reached within a few weeks, and the question of further extensions will require to be considered at once. The alterations in the transmission line now being effected will give a capacity of 400 kilowatts, and the switchboards specified with the plant on order provide for extension to a total capacity of 1,000 kilowatts. A very serviceable workshop has been erected at the Okere power-house, and equipped with a lathe, which will enable all minor repairs to be effected on the spot, and will obviate the necessity, in case of such minor repair, of leaving the town in darkness for three or four days while the necessary replace parts are ordered from Auckland. Water-supply System. The water-supply system has been maintained very satisfactorily. During the year twentynine new consumers were connected to the mains, making a total of 255. The revenue has been as follows: 298 domestic supplies, at £1 10s., £447; 40 hose standards, at 10s., £20; 58 extraordinary supplies taking 8,520,000 gallons, at Is. per 1,000 gallons, £426: total, £893. In addition, about 50,000,000 gallons are used by the baths, 4,000,000 for street-watering, and 2,000,000 for garden-watering, and for these no credit is given. Valuing this supply at 6d. per 1,000 gallons, this credit would amount to £1,400. The expenditure has been —Salaries, £75; wages and material, £202; proportion of office salaries and expenses, say, £200 : total, £477. The working profit thus amounts to £416, or If per cent, on the capital cost of £24,000, in addition to the free supply to the baths, streets, and gardens, which is worth another 6 per cent, on the outlay. No stoppage in the supply occurred during the year, and complete precautions have been taken to give an emergency supply through the old flume from the Puarenga River in case of serious trouble with the wooden mains. The old cast-iron mains have been connected to the new wooden ones by means of an 8 in. valve, ready to open up at once on such an emergency; the old flume has been repaired and put into working-order for its whole length of one mile; and a flush-ing-valve put in the old main immediately above its connection with the new main. This valve is left constantly open, so that the water from the old pipes, if suddenly required, will be fresh and clean. The reticulations laid by the Public Works Department provides only for the inner area of the town, between the railway-station and the lake. The whole of the suburbs south of the railwaystation were unprovided for, and are being built up rapidly. The immediate demands of these suburbs have been met during the year by the laying of a quarter of a mile of 4 in. main and about two miles of 1 in. pipe. Considerable extensions will be required in this direction, and 3 in. and 4 in. mains will be necessary for the permanent supply in order to render the system .available for fire-prevention purposes, for which the 1 in. mains are, of course, of no service.