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I F T OB PE O d u. * *\ PR P amaee t l2 02 0s >A o5 14 ool oo _ +8 % f §hes ky V45> 3 he . _ f Te bruasy 28 f 4 % s When the full deliveries are complete Increases in rates under such circum-- | . year's power costs for unwanted POWe" l.in 1938 we will then have 1,557,000 stances are out of the question, 2Nd | | to these three companics will be as korsepower on the basis of our pres-- the end of the losses is by no means | | forjows: cnt generating capacity, plus purchas-- in sight. | . Cost this yen;.m }Oafn ....6a86.853.750-°° 'ed power. Our present requirements Paid Power Barons. | A';e!'tt'g:'r '3:uvenea re.l.. 142375000 _ at peak are 833,000 horsepower, so wz wz i2z that if our requirements do not in-- "'The explanation of this condition lies in the sacrifice of the systems to Total, 1936 ..............$8,077,500.00 * crease we have overpurchased by 724,-- . _ those interested in the financial op--| | Tremendous Total. 000 hersepower, or pm't:tically double | erations of the power barons of Que-. "The deliverics end in October, our present requirements. | bee. Por the year ending Oct. 31. 1936, so that there are no further Sees High Rates. , 1934, we paid for purchased Ppow©"! _ amounts to be added, but the total "Unless it be reasonably expected | all of which was in excess of our re-- cost will be in excess of that for 1936, that the consumption of electrical quirements, and was virtually, if no:l because some of the 1936 power was |energy in the Niagara System will actualiy, unused, as follows. for part time, while in 1937 all the | double in the next few years, the peo-- Gatineau Power Company . . . . $3,864,705.18 power is contracted for for all the ple of the great central portions of 260.000 h.p. at $15. time, and the grand total which these cur Province may look forward to ex-- n.."."'n'.s.:n'Z}'.""fl;gm Heat &: | _ companies are entitled to take from cessively high rates, together with Eoet Cor iri..l:.ll..... .+. 1,192,500.00| -- the power users or taxpayers of On-- heavy financial losses for a good many | 75,000 h.p. at $15 for 12 | _ tario for power for which there is no years to come, provided, of course, § ip. ht §15 for 1 int! present and little prospective use, is _ that this House is content to sit idly ! ts ap. at gi5 for 1 inth the sum of $9,525,000 per year for by and permit this condition to con-- | 129,000 h.p. | -- thirty years. tinue. MacLaren--Quebec Power Co. 400,000.00 | "Worked out from the beginning to "The Commission has from the g'% g.p. :: :}g 5832.'}2:' , _ the conclusion of their contrects, Niagara River (generated and pur-- : sQ+dgg m § | _ these companies are entitled to take chased) and Chats Falls 996,000 40,000 h.p. | _ from the people of the Niagara dis-- horsepower, and its maximum firm Grand Total : 260.008 1 | ; trict a gross in payments of $326,326,-- uninterrupted demand for the year ge.:t':li:?r':zoié'.'. 129'008 1;8 006.14, or $40,000,000 more than the 19834 was (November) 833,000 horse-- MacL.--Quebec -- 40.000 h p. ! present entire investment in the Com-- power, leaving a spare capacity of Nesn esnt mission's whole system. {163,000 horsepower. _ Now 163,000 429,000 h.p. $5,457,205.18 "Now let us see what all this means. !horsepower is a reserve plant capa-- Tmis expenditure of nearly five and| | Thoe deficit in 1934 was $2,869,828. city very nearly 20 per cent. of the ~] one--half million dollars for Quebec!| | The addition to the power costs over yearly peak demand. Just how large power during 1934 was 11""908538"Y-l 51934 was $1,196,545.82. So that dis-- a reserve it is may be judged from and with it, much of the high cpar.' regarding what decreases in other ex-- the fact that it is equal to the capa-- of the transmission lines by which penses may be made or what increase city of the three largest generators in It was convey--d. f in sales of power may be effected, the the Commission's owned plants. TA 1933, the pre\'lbl&f_}'ear. these 'defic"' next year will be 34.066'373_ "So that the House and the coun-- costs amounted to something less, but : (1935)' tx-y may have no mlsgl'vmg as to the 'Mm a huge sum, as follows: | "In 1936, on the same basis, the accuracy of my statements and the Gatineau a s us a us a a a a a e & + + $4,306,289.58 idef,cit "1)1 u 55,490'123. in 1937' authorlty umn "¢hich t'hey are made' [ Resunra®nts ............ 5;2.(1)(6)&1).% 'S{:.937.623. and whcen in 1938 the may I read the signed statem>nt by MacLaren--Quetec db agarmnnl cressinment sinking fund of the Dominion Power Dr Hogg, chief hydraulic and oper-- $4,0976.450.87 & Transmission Company of $145,000 ating engineer, and Mr. R. T. Jeffrey, Muge Sum. is added the deficit on this basis will chief municipal engineer, both of the "We have paid to these three com-- be $7,082,623. t Hydro--Electric Power Commission of panies for unwanted power since the "It may be that during the coming Ontario? first contract commenced to Oct. 31, years some saving will be effected, but Text of Letter. 1934 the huge sum of $22.526,006.14. they will be a small percentage of the "*Mr. "P. Stewart Lvon: s "But bad as is the past, the future _ grand total of expenses. The major # s Acting Wals 43 Ll.l' hime s is even worse. A considerable portion _ savings are already effected. ha TE on Your inslfuctions, we ve made a study of load conditions 'ol the unwanteq power purchased last Increased Consumption, isti the Niagara System G | year was for part time only, as de-- «€XISUINE on the Niagara System dur. 11';"16 under the contracts com-- "It seems probable, too, that there ing the month of November, 1934, menced from time to time. Next year _ may be some increase in the consump-- with the object of determining what the full 429,000 h.p. mentioned will be ° tion of power. 'This prospect, how-- | | amount of power the Commussion on a full--time basis, at a cost of $6,«__ | °VCr, must not be over--rated. It must may expect to be required to supply 435.000 n dtiaal se * not o':l btox;gmt«exil !-h&t.i -Hy?'r(l)dw;':- ti:; additilci)gd tof the poger than cgn <Karp R men usiness in a virgin field. 5 supp rom plants on the tlm;'ale':' t)?:gtebblno?k?li;f ::':5: :Si::.i,}.l 'l'ap!d growth is accounted for in the Niagara Rivor and the Chats Falis ies which have not yet commenced. | 2@dition of new municipalities, com-- | plant (total) during the next two They are as follows: g{aany systems and' new individual cus-- | or"t'hree years. . f omers to its system. On attached sheets is set out the f"'na"m'n;f":?";'lg' "}3,'. 1&33; | "There are now no further munici-- primary power peak load for Novem-- | _ months ....................$135,000.00 _ | P@lities, other than a few rural mu-- | ber, 1934, amounting to a total of .'Buuhnmois. October, 1935, | n'cipalities to add, unless some new 900,000 horsepower for the Niagara | 67000 h.p. at $15 for one _ __ | towns spring up, which is unlikely in System,. As this peak load includes 5 marthk ..................... : #8,720.00 the Niagara district. There are few interruptible power, this has been ds-- . f Grand total, 94,000 h.p...$218.750.00 _ people, indeed, in the municipalities _ | ducted, allowance being made for di-- |_ "That is to say, the Niagara System _ served who have not electric light in | versity between firm power peak and | will be required to pay for unwanted |their houses. True, there has been _ | interruptible power of aproximateiy power in the year 1935, as follows: | some increase in the rural lines in 20 per cent. or 15,000 horsepower. & Last year's cost, 1934 ......$5,457,205.18| 1934, and we have offered induce-- "'In calculating the capacity of the ' Addition for full--time and ' ments to the farmers to use elec-- generating plants on the Niagara _ addition for further de-- , | _ tricity by giving free energy for wash-- River, the normal capacity (continu-- verics ..................$1,1906,544.02 | ing machines, radios and sanitary cus), of 830,000 horsepower has been Total, 1935 ..............$6,653,750.00 systems, but, after all, the growth reduced to 810.000 horsepower on ac-- "And still the story is not told, for which one may reasonably expect in count of low river water levels, which still further deliveries take place in the rural field is comparatively small may maintain during the next two TiAimes _ s 'hen one is discussing horsspower 1936, as follows: w years. . MacLarens--Quebec, July, 1936, in the hundreds of thousands and " 'From the capacity of Chats Falls 33.9000 h.p. at $15 for four losses in the millions of dollars. has been deducted transmission losses Inofikhs ...... .. ... ...« . : : -- --§105,000--00 "The growth in rural consumption &At htl.'- t'or n&-t xgeonmw 6 in the year 1934 over that of 1933 was auharnots, ober, _ 1936, onl, 1,577 h.p. at October peaks, and f | fidath e e T. 9C ersqace |~ 2270 hp. in August peak, 4t is 'quile | nieertagremnamcmmem cbvious, therefore, that the growth of < _ Grand total, 87,000 h.p. ...$232,500.00 _ load must henceforth dapend for the | 4 § "So that the calculation on next most part on the increased demand of | C customers already in existence, supple-- A mented perhaps by a certain increas-- ed commencial and manufacturing activity which might follow the clear-- ing of the channels of trade. ; |__"If the conditions in the next three years do not improve in the matter | of power sales, the revenue will be approximately $20,000,000 for the Niagara System. In 1938 we are ob-- l ligated to pay $9,525,000 for the power | of these three companies, or one--hal? our entire revenue, "There will be growth, but the hon. gentlemen will be perhaps amazed 4 when I tell you that the Niagara system generates, has had purchased f and thrust upon it 724,000 horsepower i 'as of 1938 in excess of the 833,000 M horsepower which it now requires. y ons Sss s .