The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-02-25
HYDRO.
SUCCESS IS
CITED
How Canadian Province Man
ages and Administers
Great Power Plant.
Continued from First Page.)

NOAIAuO0U 1EOIn HITHL EAko.J
which 1t had contracted. The COM
mission contracted for additional
power supply OF $4,000 horsepower,
and again for $4,000 horsepower.
Subsequently, in August, 1917, 1t
purchased outright the Ontario
Power Company at Niagara. with
its plant capacity of over 100000
horsepower. which was increased TO
100000 horsepower in 1919. and, in
December. 1920. the commiseion
acquired by purchase the Toronto
Power Company, with its over
1885, 900 horsepower capacity.
In 1890 the load reached D total
Of $4,000 horsepower. The Queens
-Chippawa development on the
Niagara river was begun by the
commission in 1917. It will pro-
vide about 100000 horsepower, the
largest individual power plant in
the world. Today the Hydroelec.
trio Power Commission is transmit.
ting for distribution about 100000
horsepower. Since the inauguration
Of the commission there has heen
purchased on behalf OF the cooper
ating municipalities no less than
twenty-five water powers, thirty
hydraulic generating plants, and
over sixty electrical distribution
systems. At present the commits
sion operates electrical power en-.
terprises, which; when fully devel.
oped, will have an aggregate
capacity Of 1,00O,O00 horsepower.
The commission supplies electric
ity to the larger portion Of the
population OF the province.
This undertaking, since electrical
energy was first transmitted by the
commission, has grown to these
proportions in thirteen years. Pub
lie demand for It began in 1900,
when q few leading manufacturers
and prominent citizens of the city
Of Toronto recognized that low
cost power was necessary factor
in general commercial and indus
trial growth and expanding markets
for agricultural and manufacturing
products.
The legislature, recognizing the
widespread demand on the part of
municipalities, provided the neces.
sary legislation which, from time to
time, was enlarged and adapted to
meet all contingencies as they
arose.
The principles underlying the
municipalities undertaking, briefly
expressed, are as follows:
First-The generation and trans
mission Of electricity to the munich
palities on q wholesale scale Is dealt
with by commission which acts in
dependently in the capacity of trus-
tee and agent for municipalities.
Seeond-The local distribution Of
electrical energy Is under the direc-
ton of local commissions appointed
under the public utilities act.
Third-Capital required by the
commission for power plants and for
the transmission of power Is adj
vanced by the government. The
municipalities, by contract with the
commission, undertake to repay in
thirty years the. moneys thus loaned
by the government. The munich
palities assume the total liabilities
Of the whole undertaking.
Fourth-The local distribution sys-
tenn Is financed by the issue Of
municipal debentures. Provision is
made In the rates charged to the
ultimate consumers for revenue with
which to retire these bonds also,
usually in twenty years.
Fifth-The trustee" commission
supplies power at wholesale rates
to the municipalities, charging each
municipality the actual cost. The
''cost Of power" includes all the
usual costs Of operation and main
tenance Of the generating, trans
forming ana transmission plant and
equipment, and, In addition, the an.
nual interest charges on the mon
eys borrowed for the initial cost
Of installation, also provision for
renewal depreciation and sinking
fund reserves, as well as a special
reserve fund for contingencies.
Sixth-Each municipality sells
electrical energy to its local con.
sumers at its cost, including the
expenses Of distribution ana with
provision for the local bonded indebt-
edness.
Seventh-Under the power COM
mission act, the commission is re-
quired to determine, annually, the
actual cost of service supplied to
the municipal corporations by the
local commission for such strictly
municipal purposes as street light
ing, street railways and operating
lectric.motor.d driven pumps in water
works, and II any profit has &C,
crued through the charging Of the
rate used throughout the year, this
surplus is handed back to the
municipality.
In our next article, shall show
the widespread benefits which have
been derived from the various opera.
tons involved in the supplying Of
electrical energy at cost to the
municipalities Of Ontario, under the
hydroelectric power commission act.