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Horahora. —A booster transformer was put into service on 11 kV. supply to the Cambridge area on 10th October. (6) SUBSTATIONS. Penrose. —A fourth 110/22 kV. transformer bank, of 30,000 kVA. capacity, was put into service on 7th April, 1938. Four 6666 kVA. transformers for the second synchronous condenser have been dried out and placed in position ; work is proceeding on the foundations for the new condenser. Merz Price protective equipment was installed on the two 22/50 kV. transformer banks in May. Bombay. —Six new 110 kV. 0.C.8.'s were put into service. Seven new 1000 kVA transformers fitted with automatic on-load, tap-changing equipment are being made ready for the replacement of the existing 500 kVA transformers 50/11 kV. banks. Garages were erected at four cottages. Hamilton. —Work is proceeding on the replacement of the existing 11 kV. switchgear by new ironclad switchgear and metering equipment. A garage was erected at Cottage No. 2. Takapuna.- —The existing 0.C.8.'s on the 11 kV. incoming and outgoing feeders were replaced by new truck-type 0.C.8.'s on 4th December, and two booster transformers were put into service on 20th March, 1939. Henderson.- —New truck-type 0.C.8.'s were installed in place of the existing 0.C.8.'s on the 11 kV. incoming and outgoing feeders on Bth April, 1939. Garages were erected at three cottages. Tahekeroa. —Work has commenced on the installation of a booster transformer. Mareretu. —A 50 kV. lightning arrester fitted with surge counters was installed on 29th December, and a booster transformer was put into service on 16th April, 1939. A relief operator's bach and a communal garage were erected. Maungatapere. —A new 11 kV. feeder was put into service in March, and a booster transformer was put into service on 23rd April, 1939. Two garages were erected. Kerepeehi. —A garage was erected for the relief operator, and a start was made on the installation of a booster transformer. Waikino. —Work is in progress on the building of three new cottages. A new panel was erected on the control board for the mounting of additional relays for the Paeroa 50 kV. line 0.C.8. Waihou. —A booster transformer was installed on 9th March, 1939. A garage was built for the operator. Matamata. —A booster transformer was installed on 16th March, 1939. Te Awamutu and Hangatiki.—Two garages were erected at Te Awamutu, and two at HangatikiNgongotaha. —A new 50 kV. 0.C.8. for the second 750 kVA. transformer bank, and two 11 kV. earthing transformers from Edgecumbe and Waiotahi were put into service on Ist September. The old earthing transformer is being held as a spare. The switchroom has been extended to accommodate the 11 kV. switchgear that is being taken out of service at Hamilton. Two garages and a relief operator's bach were erected. Rotoiti.—An automatic reclosing, pole mounting, 6-6 kV. 0.C.8., was installed in October. Edgecumbe. —A fourth 11 kV. feeder 0.C.8. was installed and put into service by the Bay of Plenty Power Board on Ist August, when supply was commenced to the Whakatane Borough Council. Waiotahi. —A third 11 kV. feeder 0.C.8. was installed by the Bay of Plenty Power Board in May, 1938, and is being held as a spare. A lineman's cottage and relief operator's bach were completed in September. Onaarue. —A new 2250 kVA. 110/11 kV. substation to supply the Taumarunui area was completed in April, 1939. (c) TRANSMISSION AND DISTRIBUTION LINES. Arapuni-Edgecumbe 110 kV. Line. —Pole-erection was commenced in April, 1938, and construction was practically completed by the following April. Jumpers were run to connect up the new line to the old 50 kV. line at Hamurana, and the Arapuni-Hamurana section was put into service at 50 kV. on 22nd January to provide alternative means of supply to Edgecumbe and Waiotahi substations. Arapuni-Penrose 110 kV. Tower-line No. 2. —Route plans were completed, and tower-erection was commenced in March, 1939. It is expected to have the line completed by the middle of next year. Penrose-Henderson 110 kV. Line. —The proposed line was traversed and sectioned, a schedule of towers was prepared, and railway and tidal water crossings and the joint use of towers by the Department and the Auckland Power Board were investigated. A substation-site was selected at Mount Roskill and a legal survey made. Arapuni-Stratford 110 kV. Line. —Two new linemen's cottages were completed at Tangarakau Depot in July. Arapuni-Bunnythorpe 110 kV. Line (Ongarue-Ohakune Section).—A survey party was started on the location of the proposed line in the rough bush country between Pokaka and National Park in March. Maungatapere-Kaitaia 50 IcV. Line. —Survey-work was resumed in August. The pegging of structure positions has been completed, and a start made on the cartage of poles to sites. All poles on hand at depots were sterilized with an oxy-acetylene flame. Substation-sites were selected at Kaikohe and Kaitaia and legal surveys made. Ongarue-Taumarunui 11 kV. Line.—The construction of a double-circuit line was commenced in November and was completed in April, 1939. Taumarunui-Manunui 11 kV. Line. —Route plans were completed, and poles were carted to sites. A start "was made on the erection of poles in April, 1939.

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