D. -1

XIV

Waikaremoana . Operation at this plant has been carried out during the year by the Wairoa Electric-power Board, who have leased the plant until December of this year. Both the original plant and the one recently installed to provide additional power for constructional purposes have operated without any serious difficulties during the year. The capital expenditure has been increased during the year from £80,564 to £185,703. Capital charges, interest, and depreciation on the plant in operation amounted to £6,771, the revenue received has been £2,405, leaving a loss of £4,367 on the year's operation. The accumulated loss on this plant now amounts to £15,050, against which there is an accumulated Depreciation Fund of £6,326. Mangahao. The second year of operation of this plant has been marked by rapid growth of load, and the financial results have been satisfactory. The total capital expenditure has been increased to £2,242,870 during the year, of which amount about £250,000 represents assets not in operation at the end of the year. The financial position may be summarized as follows : — £ Capital . . . . . . . . . . 2,242,870 Revenue . . . . . . . . 101,897 Operating-expenses .. .. .. 26,921 Balance . . . . . . £74,976 The balance has not been sufficient to pay interest and depreciation, and leaves a deficiency of £56,902. The accumulated deficiency on this scheme now stands at £124,193, against which there is a Depreciation Fund of £64,255. The balance of revenue over working-expenses represents a payment of 4 per cent, towards capital charges, which can be considered as reasonable. ft is a, considerably greater percentage than was paid at a similar stage of its career by Lake Coleridge, which has since proved so successful. The very dry summer experienced had the effect of very considerably reducing the revenue received in the last quarter of the year, owing to the large extent to which the fuel-driven plants in the area had to be called upon to assist in supplying power to the district. The arrangements made with the fuel-generating plants in Wellington, Palmerston North, and Wanganui proved most satisfactory, and the co-operation of the authorities controlling these plants was much appreciated. There is no doubt that the advantages of electric power are being more and more appreciated in this area, and the following table indicates the annual increases that have taken place in the demand taken by different supply authorities obtaining power in bulk from this supply

Quarter ending Quarter ending Percentage 30th June, 1926. 30th June, 1927. Increase. Power-station output .. .. .. 17,703,060 21,752,550 23 Horowhenua .. .. .. .. 1,282,937 1,574,298 23 Wellington .. .. .. .. 8,905,700 8,682,150 0 Hutt Valley .. .. .. .. 1,372,120 2,230,450 62 Meat-works .. .. .. .. 263,700 473,150 80 Railway Department .. .. .. .131,180 237,890 82 Manawatu-Oroua .. .. .. .. 1,786,871 2,843,641 59 Dannevirke .. .. .. .. 295,877 378,821 28 Tararua .. .. .. .. .. 317,725 497,357 57 Wairarapa .. .. .. .. 687,900 590,910 0 Wanganui-Rangitikei .. .. .. 989,436 2,652,618 168 Central Hawke's Bay . . . . .. 239,690 449,406 88 Hawke's Bay .. . . .. .. 0 353,929