D.—l.

Waikaremoana Power-house and Headworks.- —The construction of the pipe-line for No. 3 unit is well under way. The survey of the headworks, tunnel, and pipe-line for the lower development, which was started early in the year, is proceeding. Eight new cottages and additional single men's quarters, together with the requisite roading and footpaths were completed during the year. (b) SUBSTATIONS. Khandallah.—Two banks of 110 kV. potential transformers, complete with limiting resistances, switches, fuses, and auxiliary transformers, were put into service. The requirements of additional transformers, 110 kV. switchgear, and steelwork were investigated, and the work of replacing the existing 11 kV. switchgear with equipment of increased rupturing capacity was put under way. Paraparaumu.—The building of the single men's quarters was completed during the year. Bunnythorpe. —One staff cottage and also single men's quarters were erected during the year. An 110 kV. lightning-arrester to protect the east transformer bank, and two banks of 110 kV. potential transformers, complete with limiting resistances, fuses, and switches, were put into service. Wanganui. —An 110 kV. lightning-arrester was erected to protect the west transformer bank. A deep well was bored and a pump installed to augment the cottage water-supply. Two additional stall cottages were built. Hawera.—A surge counter was put into service on the 110 kV. lightning-arrester. An additional cottage was erected. Stratford. —An additional staff cottage was built, and the single men's quarters was shifted to a new site. Masterton. —The requirements of further 110 kV. switchgear and steelwork to be used in connection with the Masterton-Melling line were investigated. Melling. —The requirements of further 110 kV. switchgear and steelwork to be used in connection with the Masterton-Melling line were investigated. Mangamaire. —A new well was dug and the pump shifted to the new site. A new cable and 11 kV. switch cubicle for use with an additional transformer bank were installed during the year. Woodville. —New single men's quarters were built, a new well dug and the pump shifted to the new site. Dannevirice.—One new staff cottage was built. Levelling of the ground for the new steelwork bay is proceeding. Waipawa.—Two additional stafE cottages were built, and a new well was dug. Napier.—Two banks of 110 kV. potential transformers, complete with limiting resistances, fuses, and switches, were put into service, the 110 kV. capacitors being dismantled. Two new staff cottages were built. Wairoa. —A local service transformer and station oil-tanks were installed. Gisborne. —An 11 kV. earthing-resistance has been installed in the neutral of the earthingtransformer to limit the fault current. (c) TRANSMISSION-LINES. Khandallah-Masterton. —The survey of this line was practically completed during the year. Several parts of the line were repegged for deviations on account of the geological aspect of the country, earthquake faults, &c. The question of snow-loading was investigated and titles were searched for wayleaves. Sites for the proposed depot at Akatarawa were investigated. Woodville-Napier Duplication. —The survey of this line is proceeding. (d) GENERAL. Accommodation. —Owing to lack of accommodation and in order to replace temporary buildings> an extensive building programme has been carried on throughout the year at various power-stations and substations. This work has been mentioned above in most cases under the individual substations and power-stations. Palmerston North Office. —A considerable amount of construction was completed during the year. The new wing of the office was completed and was largely occupied by the General Branch. The section of the original building which was thus vacated was modified to provide more room for the typistes and Stores Branch office. The ground floor of the new wing consisted of an extension to the existing store and an additional store and test-room for the General Branch. In the yard a fourteen-stall garage, complete with workshop, &c., a pole-stacking site, a plant-shed and a loading-bank were completed, and an extension was made to the railway siding. 2. Operation and Maintenance. (a) power-stations. W aikaremoana. Headworks. —The lake-level has not varied much during the year, the level at 31st March, 1937, being 2010-60 and the level at 31st March, 1938, was 2011-20. The highest recorded level was 2014-10 and the lowest 2007-90. The rainfall for the year was 73-39 in. and the evaporation 25-63 in.

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