Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-11
HUGE SUMS NAMED
IN POWER BUDGETS.
Light Companies Also Plan
Heavy Financial 0utIayS
During Coming Year.
npesial pisnatch to The ear.

upeejal piSnateh to The star.
NEW YORK, January 10.-Electric
light and power companies will spend
1894, 394,716 for new plant and equip
ment in 1881, Electrical World reports,
g making public its annual budget
survey of the industry. The budget al
locates to fuel-burning stations the sum
of 1902 1894, 816; to hydro stations, $685.
381, 1892; transmission, $114,986,4 18; to
distribution and substations, $412, 49,
$50, and to miscellaneous items the sum
of $59,113,102
The 1891 budget figures include mu-
nicipal, local and all other light and
power properties and are predicated on
actual returns of 100000. Com
parative figures for 1880 expenditures
are: For fuel plants, $207. 90l .458; n.y.
dro plants, 1885 ,384; transmission,
49,, 084,606; distribution and substa-
tions, $432, 570,278; miscellaneous, $685.
e38,026.
Comparisons With 1880.
b Budget figures for the light and power
industry show a decrease in New Eng
land expenditures, accounted for by the
completion of several large hydro plants
also, several new lines and plants have
been installed and permit temporary
reduction in expenditures In the
North Central, Western and Eastern
districts, budget expenditures for 1881
are about equal to those of $780, thus
indicating normal industry growth. Ex-
penditureS by sections of the country in
1881 will include 1901, 840,195 for the
Eastern States, comparing with $685.
596,932 in 1880; sill, 752 ,695 in the
Southern States, comparing with 1884,
395,948 last year; 1924, 1881 in the
North Central region, compared with
1913. 1922 in 1880, and $135, 1924, 531
in the Western States, compared with
$139, 100000 last year.
The survey shows that more money
will be spent on distribution than on
any other item in 1881. This has been
true in the last few years and reflects
the trend toward underground systems,
extensions to outlying customers, mod
ern1Zatlon and revamping of diStribu-
ton systems, the construction of dis
tribution subStations and of new gen.
eral office buildings. Expenditures for
generation take second place and bid
fair to go up faster than those for
distribution because of the steady in
crease of capacity demands. Transmits
sion expenditures will be about normal.
Six Billions in Decade.
During the period from 1920 to
1885," says Electrical World, "the light
and power companies spent a total of
5000, 1926 900 for new plant and equip
ment, yet from 1880 to 1910 a reason
able estimate for expenditures is SILL
40O, 100000. The investment per unit of
generating capacity for the decade has
decreased slightly and is now about
1925. The per cent of total time gen.
Grating equipment is used has increased
from 20 to 80 In the same period. The
kilowatt hours generated per unit of
capacity have increased from about
LOO to 2,700 in 10 years. The revenue
and investment values per customer
have remained about stationary, the
present values being about $500 for in
veStment and $100 for revenue These
figures show that there has been a
fairly uniform earnings basis over the
decade despite enormous expenditures
and lowered rates, and this has been
made possible by greater hours use of
equipment, decreased unit costs of
equipment and better operating per-
Torrance, especially in fueI-burning
power stations"
In the next decade, the electrical
paper states, there is every reason to
believe that the capital requirements
OF the industry can be had at reason
able money costs. There are reasons to
believe, also. that the hours use of
equipment VII be increased and that
operating costs will decrease. In some
measure equipment costs will decrease
because Of improved quality and
changed design. There is also reason
to believe, the paper says further, that
in the next 10 years distribution equip
ment will require the largest capital ex-
penditures, with generating station and
transmission lines following in order of
magnitude.
Estimates for expenditures in the
decade 1930-1940 are as follows: Dis
tribution, $4,000 900, 900; generation,
$4,000, 900 600: transmission S2,25O,-
100000. The remainder of the capital
expenditures in the decade would come
under miscellaneous expansions, such as
ONCE buildings, stores and other items.