Present Plants to be Re-organized Under Central Provin Control: $10,000,000 to be Expended The extensive programme of development of the Commission of Construction of the Chekiang Province necessitates an ample supply: of electrical power, generated with 'a maximum efficiency, and provision for distribution throughout the low lying agricultural districts for drainage and irrigation, and to the important cities for industrial plants.
The Provincial Government passed resolution to re-organize the Dah Yoh Lee Electricity Works Hangchow, and members of the Readjustment Committee were selected from the stockholders, Chamber of Commerce, Construction Commission and Electricity Bureau for the Purpose of making a study of the financial status of the plant under' the former management and for' recommending a method of financing the indebtedness to stockholders and other creditors. The recommendations of this Committee were approved by the stockholders and the Provincial Government and the control was vested in the Chekiang Electricity Bureau.
The revenues for the first year's operation under this plan have been more than ample for meeting finan~ lal obligations in conformity with the plan adopted by the Committee.
The Chekiang Provincial Government has authorized and issued construction bonds, to the amount of $10,000,000, which are to be retired "in 18 installments at six month intervals during a period of nine years, These bonds were discounted 2 per cent. and the rate of interest is 8 per cent., payable semi-annually. The bonds are secured by the revenue from a surtax on land, from which $1,600, 000 per annum is appropriated for refunding the principal and interest.
The amount received from the eof bonds is to be entirely devoted to the building of a railway between Hangchow and Kiangsu, a highway between Hangchow and Huchow and $1,980,000 has been alloted to the Provincial Electricity Bureau.
There are 80,000 houses representing potential consumers in the ity of Hangchow and electric ser-Nice is now being provided to 16,000, Additional "consumers are being connected at the rate of 600 per month. Provision is now being Made for financing. the cost. of ing with installment payments, Which is expected to increase the rate of connections from 600 to 800 per month.
Rates to power consumers have been revised, and the supply of power to industrial plants within the area of the distribution system increasing at the ate of 100 Vilowatts connected load per month, and_ prot connecting addition: factory Toads of more than 2,000 Kilowatts The extensive areas of agricultural land, which are now flooded during the summer months and! which may be economically drained motor driven pumps, will provide ample load to utilize fully the capacity of the plant equip-mont,"and the Electricity Bureau is now planning for the construction and operation of pomping plants.
Surplus plant capacity will be available during the winter months for electric heating, and the rate of growth of this class of load during the past winter has. shown that the extent to which this class of load can be developed largely depends upon the rates which can maintained for this service.
'A'high ratio between the amount representing the average load and that representing the maximum load for this plant will permit a correspondingly high operating ficiency. If the expectations. of the Electricity Bureau are realized jin maintaining a load factor in excess of 60 per cent., the efficiency est plants now in operation; and, even with exceptionally low rates for service, annual profits of 20 per cent. on the invested capital, bbe expected.
A programme of electrical development, covering a period of five years, is" now being formulated, involving the construction of a 15,000 kilowatt initial unit for a generating station at Mangchow, the re-construction of the electrical distribution system in the city of Hangchow, and the construction of transmission lines to Yuhang, Kashing and Huchow. The contraction of irrigation and drainage plants and the addition of the Second unit, to the Hangchow plant, of 15,000 kilowatts capacity and an electric railway system for the of Hangchow are expected to be started during this period. The construction and equipment of an electric testing laboratory is also contemplated.
The nett operating revenue of the reserve for depreciation, is now 20 per cent. of the amount of the outstanding capital stock.
The inter-connection of isolated plants now under private management with the Government controlled system will provide power for lighting which may be marketed by the existing companies and extend the area where power service is available at low rates for drainage, irrigation and industrial develop-
During the past year the operating expenses of the Hangchow Plant have been reduced from $56,- 000 to $45,000 per month, while the gross receipts have been increased from $80,000 to $120,000 per month.
The operating expense is now being maintained at 40 per cent. of the amount of the gross receipts.
The provision of fands from the issue of Provincial Government Construction Bonds and the surplus. earnings from the operation of the plant have been utilized to obtai bank credits for financing the proxeamme of development for a. period of three years.
Text read from the printed page and cleaned; old type leaves the occasional error.