State Generation of Electricity
The local electrical supply authorities are the distributing or retail bodies, and the State is the generating, transmitting, and wholesale authority. On 31 March 1965 the Electricity Department had a capital outlay of £304,000,000. Completed works in operation totalled £243,000,000, works under construction £55,000,000, with a further £6,000,000 invested in plant, motor vehicles, and stocks. This money has been invested since 1911 in the networks of generating stations, transmission lines, and substations, as shown in the accompanying map. The State generating capacity in March 1965 was more than 2,250,000 kW – 1,429,000 in the North Island and 821,000 in the South. This development is summarised in the following table:
|Government-owned Generating Stations|
|Station||Capacity in Kilowatts, November 1965||Date of First Operation (or Purchase)|
|King's Wharf||27,000||1942 (purchase)|
|Evans Bay||22,000||1950 (purchase)|
State Charges for Bulk Electricity
The income derived from the sale of electricity to the distributing authorities is defined by statute and obtained through contracts covering five-year periods. Before contracts are negotiated, the gross operating expenditure, including interest and depreciation for the ensuing five years and the likely sales of electricity, are estimated. An amount equal to 25 per cent of the estimated expenditure is added and this additional sum provides moneys for loan repayment and capital works. The selling price is calculated so that, from the estimated sales, the gross expenditure plus the 25 per cent addition will be obtained.