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Snowy Mountains Hydro-electric Power Act - Snowy Mountains Hydro-electric Authority - Annual Report - Year - 1958-59 (Tenth); including Parts II. Of the Eighth and Ninth Annual Reports (being financial statements for years 1956-57 and 1957-58), together with Auditor-General's Reports for years 1956-57 and 1957-58


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I960.

THE PA R L IA M EN T OF TH E COMMONW EALTH OF A U STRA LIA .

TENTH ANNUAL REPORT

OF THE

SNOWY MOUNTAINS HYDRO-ELECTRIC AUTHORITY.

YEAR ENDED 3 0 t h JUNE, 1959.

INCLUDING

PART IE OF EIGHTH ANNUAL REPORT

FINANCIAL STATEMENTS FOR YEAR ENDED 30th JUNE, 1957

AND

PART II. OF NINTH ANNUAL REPORT

F I NANCI AL STATEMENTS FOR YEAR ENDED 30th JUNE, 1958.

Presented pursuant to Statute, 21th April, 1960: ordered to he printed, \9th M ay, 1960.

I Cost o f P aper:— P r e p a r a t i o n , n o t g i v e n ; 8 7 0 c o p i e s ; a p p r o x i m a t e c o s t o f p r i n t i n g a n d p u b l i s h i n g , £ 4 2 0 . ]

Printed and Published for the Government of the Commonwealth of Australia by A. J. Arthur, Commonwealth Government Printer, Canberra. (P rinted in A ustralia.)

No. 18 [Group H].—F.8800/59.—P r i c e 2s. 6d,

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SNOWY M OUNTAINS HYDRO-ELECTRIC AUTHORITY.

P.O. Box 332, Cooma North, N.S.W.

3rd March, 1960.

Senator the Hon. W. H. S p o o n e r, M .M ., Minister for National Development, Parliament House, Canberra, A.C.T.

Sir,

In accordance with the provisions of Section 32b (1) o f the S n o w y M o u n t a i n s H y d r o - E le c tr ic P o w e r A c t 1949-1958, I have the honour to submit to you for presentation to Parliament the Snowy Mountains Hydro-Electric Authority’s Tenth Annual Report which covers the Authority’s operations during the year ended 30th June, 1959.

As required by Section 32b (2) of the Act, Financial Statements for 1958-59 were submitted to the Auditor-General for the Commonwealth who has certified to their correctness.

It will be recalled that the Eighth and Ninth Annual Reports for the years 1956-57 and 1957-58 respectively did not include the Financial Statements for those years. When submitting these Reports to you I explained the reasons for the delay in presenting the Statements. Briefly, the reasons were that with the completion o f the Commonwealth-States’ Agreement in September, 1957 it was decided with the Auditor-General’s concurrence that the Authority’s Accounts should be re-cast to conform with the financial provisions of the Agreement. This was necessarily a very lengthy process

because it involved the re-casting of the Accounts since the inception of the Authority during which time there had been an expenditure of £110,000,000. In addition, the complex provisions of the Agreement were being applied for the first time and gave rise to numerous questions of interpretation which required resolution before the Accounts could be completed.

This work has since been completed and the Auditor-General has certified as to the correctness of the Financial Statements for the years ended 30th June, 1957 and 1958.

The Revenue Account for the year ended 30th June, 1957 and Balance Sheet as at 30th June, 1957 (which form Part II. of the Eighth Annual Report) and similar Financial Statements for the year 1957-58 (forming Part II. of the Ninth Annual Report) are submitted with this Tenth Annual Report.

The Authority is again appreciative of the support and assistance extended to it throughout the year by you, Sir, as the Minister responsible for the Scheme. The Authority also wishes to express its gratitude to the Bureau of Reclamation of the United States o f America for the valuable help it has given under the Agreement between the Governments o f the United States of America and the

Commonwealth of Australia for technical training and assistance; also to the numerous Commonwealth and State Departments and Local Authorities which have co-operated with and assisted the Authority.

Finally, the very satisfactory progress made during the year would not have been possible without the whole-hearted efforts put into the Scheme by the Contractors and by the Authority’s and Contractors’ staff and wages employees. The Authority records its appreciation o f the fine job they all have done.

Yours faithfully,

W. HUDSON, Commissioner.

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ANNUAL REPORT OF THE SNOWY MOUNTAINS HYDRO-ELECTRIC AUTHORITY.

YEAR ENDED 30th JUNE, 1959.

THE YEAR'S ACTIVITIES.

I n t r o d u c t io n .

The year ended 30th June, 1959, has been one o f outstanding progress and achievements.

The first phase of the Upper Tumut works was virtually completed. The 14 miles Eucumbene- Tumut Tunnel was brought into service in June, 1959, making possible the first major inland diversion of water for irrigation. Tumut Pond Dam and the Tumut 1 Pressure Tunnel were both completed during the latter half of 1958 and storage of the spring snow-melt from the Upper Tumut Catchment in Tumut

Pond Reservoir was achieved. In May, 1959, T. 1 Power Station, now known as Tumut 1 Power Station, commenced commercial operation when the first two 80,000 kW. units were brought into service.

Construction of the Tooma-Tumut Diversion, the Tumut 2 Project, formerly known as the T.2 Project, and the Murrumbidgee-Eucumbene Diversion, which comprise the second phase of the Upper Tumut works, was commenced late in June, 1958. Since that time remarkable progress has been achieved on these works. In the short space of just over one year, approximately 11 miles of tunnel

were excavated, site preparation and river diversion works for the Tooma and Tumut 2 Dams were well advanced, access to and excavation o f the roof section of the large Tumut 2 underground Power Station were completed, and the 148 feet high concrete Tantangara Dam on the Upper Murrumbidgee River was half completed. Progress on this group o f works was so rapid that it was found necessary in March,

1959, to seek additional funds from the Government so that work could proceed unhindered to 30th June, 1959. An additional sum o f £4,500.000 was allocated to the Authority for this purpose bringing the total allocation for the year 1958-59 to £24,000,000.

The Agreement between the Commonwealth and the States of New South Wales and Victoria on the Snowy Mountains Scheme was given effect as from 2nd January, 1959, with the proclamation of the enabling legislation by the Commonwealth and the States.

T h e G u th eg a P r o je c t.

The 60,000 kW. Guthega Power Station which, pending the construction of Kosciusko Reservoir, is operating as a “ run-of-the-river ” station, continued to supply peak load electricity to the New South Wales system. In addition, the units were frequently operated on low power output to provide spinning reserve, so that unscheduled loading on the interconnected system could rapidly be met. The maximum

station demand for the year was 68,200 kW., which is the highest power output so far achieved at Guthega. During the year 157,695,300 kWh. o f electrical energy were generated, and 156,187,676kWh. were sent out compared with an estimated average of 144,000,000 kWh. The cost of this predominantly peak load energy was 1,0199d. per kilowatt hour sent out for the year; the overall cost of energy since generation commenced in 1955 has been 1.0209 pence per kilowatt hour sent out.

T h e U p p e r T u m u t D ev elo pm en t.

Construction activities continued to be concentrated on the Upper Tumut Development and the year’s end saw the completion of the 14 miles Eucumbene-Tumut Tunnel, Tumut Pond Dam and Tumut 1 Pressure Tunnel and the virtual completion of the 320,000 kW. underground Tumut 1 Power Station.

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Progress on the second phase of the Upper Tumut: Development, which comprises the Tooma-Tumut Diversion, the 280,000 kW, underground Tumut 2 Power Station and the Murrumbidgee-Eucumbene Diversion, was extremely rapid and there is no doubt that if similar rates of progress continue, this group of works will be completed well ahead of schedule.

E u c u m b e n e D a m a n d R e s e r v o ir . As recorded in my last Annual Report, the contract for the main and saddle embankments of Adaminaby Dam, now known as Eucumbene Dam, was completed on 15th May, 1958, Remaining items of work not included in the contract were completed during the first half of the year and the works were officially handed over to the Authority by the Department of Public Works, New South Wales, on 27th October, 1958. Since that date the Authority's forces have completed sealing the roads in the vicinity of the dam and have commenced restoration of the borrow areas. The work of restoring the borrow areas is being carried out with the assistance and co-operation of the

Soil Conservation Service of New South Wales.

At the 30th June, 1959 water in Lake Eucumbene had reached a maximum depth of 205.5 feet and covered a surface area of 15 square miles; 381,860 acre feet of water were in storage, of which 22,000 acre feet is above minimum reservoir operating level. Lake Eucumbene is rapidly developing into an attractive tourist area and has already been the scene of several successful aquatic carnivals. The

Authority is continuing to co-operate with the New South Wales Chief Secretary’s Department, the Fisheries and Game Department of Victoria, the C.S.I.R.O. and the Monaro Acclimatisation Society to ensure that fishing and wild life interests are developed to the fullest extent practicable thus affording a maximum potential for public recreation.

F in a l in s p e c tio n , E iic u m b e n e -T u m u t T u n n el.

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During the year the establishment of Adaminaby township at its new site was completed. At the year’s end. when the waters of Lake Eucumbene had extended to the old township site, final clean-up operations at and near the old site were well in hand.

E u c u m b e n e - T u m u t T u n n e l. - T he Kaiser-Walsh-Perini-Raymond Group of American Contractors continued to make excellent progress throughout the year and this 14 miles by 23 feet diameter tunnel which connects the coastal and inland river systems was brought into service in June, some four months ahead o f schedule. The completion of this tunnel, the longest ever constructed in Australia, has created

a link between Lake Eucumbene to the east and the Tumut River to the west. The importance o f this achievement is stressed in this Report since, for the first time in our history, it represents the conservation on a large scale o f Australia’s eastern water resources for the benefit of the inland.

R e m o v a l o f c o ffe r d a m a t E u c u m b e n e P o r ta l t o e n a b le w a te r to b e d e liv e r e d to o r d r a w n fr o m L a k e E u c u m b e n e .

During the year the Contractors placed 104,200 cubic yards of concrete in the tunnel lining and invert, and 5,500 cubic yards in Junction Shaft, now known as Happy Jacks Shaft. Installation of the control gates at Happy Jacks Shaft and the Tumut outlet was completed and in 4 \ months the Contractors carried out the construction of the 95 feet high Junction Diversion Dam, now known as

Happy Jacks Dam, placing the total quantity of 11,500 cubic yards of concrete in that time. This dam will be commissioned early in 1959-60.

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H a p p y J a c k s D a m a n d th e 6 0 f e e t to w e r s e c tio n o f H a p p y J a c k s S h a ft.

Tumut Pond Dam from downstream.

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T u m u t P o n d D a m a n d T u m u t 1 P r e s s u r e T u n n e l.—The high rate o f progress previously achieved by the Kaiser-Walsh-Perini-Raymond Group of American Contractors was maintained and by 3rd September, 1958, some five months ahead o f schedule, the Contractors had completed the installation of trashracks and gates at the dam and pressure tunnel intake, and the concrete lining and installation

of the gates at the surge tank.

On 13th September, 1958, the Prime Minister, the Right Honourable R. G. Menzies, C.H., Q.C., M.P. closed the river outlet gates in the dam and storage o f the waters of the Upper Tumut Catchment began. All work required under the contract, including the final clean-up of the construction areas, was completed by the Contractors by the contract date, 30th April, 1959.

T u m u t 1 P o w e r S t a t i o n .—Following the stationing in London of a senior Engineer to co-ordinate and expedite the supply of the various items of equipment being manufactured in the United Kingdom and Europe, the rate of delivery o f overseas equipment improved considerably. All o f the main electrical and mechanical equipment was delivered during the year and was available to meet the Authority’s installation and commissioning programmes.

The Group of French Contractors undertaking the civil engineering works made excellent progress on these works during the year. Despite the fact that it was found necessary to line more of the 30 feet diameter tailwater tunnel than was originally anticipated, the vigorous programme pursued and the close co-operation between the civil Contractors and the Authority’s forces carrying out the installation o f the

electrical and mechanical equipment resulted in the commissioning and commencement of commercial operation of the first 80,000 k\V. unit on 4th May, 1959, and the second 80,000 kW. unit on 29th May, 1959. At the same time as these two units were commissioned, all seven of the 330,000 volt 56,000 kVA single phase transformers and the seven 330,000 volt cables leading from the underground station to the main transmission lines were also commissioned.

T um u it 1 U n d e r g r o u n d P o w e r S ta tio n . V ie w s h o w in g p r o g r e s s iv e in s ta lla tio n o f U n it s .

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With the virtual completion of the civil works, all major items of equipment delivered to the site and the installation programme well advanced, it is anticipated that the third and fourth 80,000 kW. units will be commissioned early in October. 1959. and that the station will be available for operation at full power capacity of 320,000 kW. some five months ahead of schedule.

T u m u t 1 P o w e r S t a tio n . J u n c tio n o f d r a ft tu b e s a n d ta ilw a te r tu n n e l, 1 ,1 0 0 f e e t u n d e r g r o u n d .

Since Tumut 1 Power Station commenced commercial operation in May of this year, under the control o f the Snowy Mountains Council, 30,438,000 kWh. have been generated and 30,400,000 kWh. have been sent out to the New South Wales interconnected system. In addition to providing peak load energy, the station has frequently been operated at low- outputs and has, therefore, also provided spinning

reserve to take up fluctuations in the system load as the need arises. On 5th June, 1959, the maximum demand on the two 80,000 kW. generating units reached a figure of 149,000 kW.—which is slightly in excess o f the present capacity of the New South Wales Electricity Commission’s transformer bank at Yass. The capacity factor for the period was 13.8 per cent.

As required under the Commonwealth-States Agreement, the Authority is preparing a Notification of the future outputs of electricity from Tumut I, Tumut 2 and Guthega Power Stations for forwarding tc the Electricity Commissions of New South Wales and Victoria. This Notification provides for a restriction of outputs in the years prior to 1963-64 to allow the accumulation of water in Lake Eucumbene and thus ensure that the storage in reserve is always sufficient to supply the notified amounts of electricity and water for irrigation, under even extremely low flow conditions.

The amount of capital brought to account for the first phase of Tumut l Project from May, 1959 to March, 1960 was determined in accordance with the provisions of the Commonwealth-States Agreement at £9 million. The resulting cost of peak load energy sent out during May and June, 19-9 was .7653 pence per kilowatt hour. This figure is lower than the expected final cost of energy. As

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water storages are built up and production increases, more o f the capital invested in this project will be progressively brought to account. The final figure for the cost of energy will be approximately 0.90d. per kilowatt hour in 1963-64 when Tumut 1 Power Station comes into full production. The achievement of this figure during a particular period is subject, o f course, to the Electricity Commissions taking the notified average quantities o f energy and the station being operated as contemplated by the Authority.

In accordance with the Agreement, after the requirements of the Commonwealth have been met, surplus electricity is shared between the Electricity Commission of New South Wales and the State Electricity Commission of Victoria. The New South Wales Electricity Commission completed a 330,000 volt transmission line connection between the Upper Tumut Switching Station and the New South Wales

State network and was thus able to take its share of the surplus electricity from the Scheme. The Victorian Commission, however, was not able to take its share of electricity directly from the Scheme, as the 330,000-volt transmission line connection from the Victorian border to the State’s interconnected system

was not completed.

T o o m a D a m a n d T o o m a - T w n u t T u n n e l.—These diversion works which comprise essentially a 220-ft. high earth and rock fill dam and a 9 miles by 13-ft. diameter tunnel will divert the headwaters of the Tooma River and its tributaries to Tumut Pond Reservoir.

Thiess Bros. Pty. Ltd., the Company responsible for the construction of this project, is the first Australian Contractor to undertake a major civil engineering contract on the Snowy Scheme. It is gratifying to note that this Company has shown itself to be capable of constructing major works as energetically and successfully as any of the large overseas firms which have carried out work on the

Scheme. As mentioned earlier in this Report, the progress achieved by this Contractor in the year ended 30th June, 1959 was excellent.

T h e T o o m a - T u m u t T u n n e l w h e r e w e e k ly a d v a n c e s o f 4 8 0 f e e l p e r h e a d in g are b e in g a c h ie v e d .

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Working in both directions from an adit at the approximate midpoint of the Tooma-Tumut Tunnel, the Contractor had, at the year’s end, driven approximately 10,000 feet of tunnel in each direction whilst from the Tumut Pond end of the tunnel the face was advanced approximately 6,000 feet. These, advances, together with a short length of tunnel driven at the Tooma end, totalled 26,039 feet or

approximately 5 miles by 30th June, 1959, which is just over half of the total length of the tunnel. The maximum weekly advance during the year was 480 feet for one face and 1,252 feet for three headings, figures which compare favorably with world achievements for tunnelling rates. The excavation of the 1,524 feet by 18 feet diameter diversion tunnel to carry the Tooma River past the dam site and which will ultimately serve as the outlet works for the reservoir, was completed during the year and concrete lining was in progress at 30th June, 1959. Excavation and stripping of the dam site area in preparation for the placing of the embankment materials during the next summer season and the excavation of the spillway section were well advanced.

The contract also provides for the construction o f four small concrete dams and intake shafts at intermediate points where streams pass over the line of the Tooma-Tumut Tunnel. During the period under review, excavation of the 412 feet deep shaft at Ogilvies Creek was half completed and a pilot shaft was excavated for the full depth of 233 feet at Deep Creek Intake.

Of the 5J miles of aqueducts planned to supplement the water diverted by this project, approximately \ \ miles were completed by the Authority’s forces during the year, bringing the total length completed to date to approximately 2 \ miles. Contracts were placed for the hydraulic gates and associated equipment for the dam and tunnel and manufacture proceeded satisfactorily. All but one of these items were ordered from Australian suppliers.

T u m u t 2 P r o j e c t.—This project consisting of a 152 feet high concrete gravity dam, 7 miles of 21 feet diameter concrete lined tunnels and the 280,000 kW. Tumut 2 underground Power Station is under construction by the American Group of Contractors, Kaiser-Perini-Morrison-Raymond. The Contractors have steadily increased the tempo of their work since construction began and all phases of the project were ahead of schedule.

At Tumut 2 damsite, excavation o f the foundations and preparations for diverting the river were well advanced. Excavation of the headrace tunnel, approximately 3 miles in length, was commenced from the downstream end and, at the end of the year, 6,534 feet of tunnel had been driven with weekly advances of up to 350 feet. At the downstream end of this tunnel, over half of the 248 feet deep by 28 feet diameter surge tank had been excavated.

E x c a v a te d r o o f s e c tio n T u m u t 2 P o w e r S ta tio n . T h e d e p th o f e x c a v a t io n req u ir e d b e lo w th is le v e l is 8 4 fe e t.

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W o r k m e n in th e T u m u t 2 T a ilw a te r T u n n e l.

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The 3,600 feet by 19 feet wide and 17 feet high access tunnel to the underground power station had been driven its full length by April, 1959, and at the year’s end, excavation of the roof section of the power station machine hall, 320 feet long by 51 feet wide, had been completed. In this same area a drive 172 feet long had been excavated for the full length of the transformer hall and the raising of the two sloping

pressure shafts, each 1,100 feet by 11 feet 6 inches in diameter had been commenced.

In the 4 miles by 21 feet diameter tailwater tunnel, a length of 3,361 feet had been driven by the end of the year. At the outlet end of the tunnel the concrete river training wall and excavation of the outlet channel had been completed.

Progress on the manufacture of the turbines, by Charmilles of Switzerland, the generators, by A.S.E.A. of Sweden and the transformers, by Parsons of the United Kingdom was generally satisfactory.

T a rU a n g a ra D a m a n d M u r r u m b id g e e - E u c u m b e n e T u n n e l.—The 148 feet high concrete gravity dam ana 10| miles by 11 feet diameter diversion tunnel will divert the headwaters of the Murrumbidgee River to Lake Eucumbene. Rapid progress was also made on this project, which is under construction by the American Joint Venture Group of Utah Australia Ltd. and Brown & Root Sudamericana Ltd.

The first concrete for the dam was placed late in January, 1959, and at 30th June, 1959, slightly more than half of the 97,000 cubic yards of concrete required for this structure had been placed. The Contractors made excellent progress on this structure despite low air and water temperatures, which have necessitated special concrete placing and curing techniques. The maximum placing rate achieved for a week exceeded 5,000 cubic yards.

T a n ta n g a r a D a m o n th e t ip p e r M u r r u m b id g e e R iv er.

Production rates in the tunnel increased steadily during the year under review. In this period 7,608 feet were driven from the upstream portal and 10,679 feet from the downstream portal, a total of 18,287 feet or approximately 3-j miles of tunnel excavated. This represents about one third of the total length. The maximum weekly advance achieved in one heading was 415 feet. At the upstream end of the tunnel excavation of the 167 feet deep by 11 feet 6 inches diameter gate shaft had been completed.

Manufacture o f the hydraulic gates and associated equipment for the dam and tunnel proceeded satisfactorily. All contracts which have been awarded are with Australian suppliers.

During the year, the Authority's day labour forces completed approximately 1,000 feet of the 2 \ miles o f aqueducts planned for the project.

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T he Snowy-M urray D evelopment.

During the year, the proposal to modify the general arrangements o f the Snowy-Murray section of the Scheme received the favourable consideration o f the Commonwealth Government. The States of New South Wales, Victoria and South Australia have been fully informed o f the proposal. In January, 1959, the Snowy Mountains Council, constituted under the Agreement between the Commonwealth, New South Wales and Victoria, endorsed the modified proposal.

The States of New South Wales, Victoria and South Australia have, however, sought certain assurances in relation to the new proposal and, at the end o f the year, finalisation of the various matters raised by the States was in hand.

O r ig in a l L a y o u t f o r th e S n o w y - M u r r a y D e v e l o p m e n t.—The original layout for the Snowy-

Murray Development is contained in the Report of the Snowy River Committee published in 1950. This layout which is shown coloured red on the attached plan {se e Appendix III) provided for a dam on the Snowy River at Jindabyne for control o f the waters of the Snowy River and its tributaries. The active capacity o f Jindabyne Reservoir was to be 1,100,000 acre feet. The Snowy-Murray Tunnel was planned

to lead water westwards from Jindabyne Reservoir to the Geehi River and thence through Power- Stations M.6 and M.7 (now known as Murray 1 and Murray 2) to the Swampy Plain River, a tributary of the Murray. Dams were to be constructed on the Snowy and Geehi Rivers to enable these waters to be diverted through vertical shafts to the main Snowy-Murray Tunnel. Another Power Station, M.3, was

to be located at the bottom of a 1,000 feet vertical shaft at Island Bend and the station was to discharge into the long Snowy-Murray Tunnel. M.6 (Murray 1), one of the two major Power Stations in this layout, was to be located between the Geehi River and Bogong Creek. The second major station, M.7 (Murray 2), was to be located between Bogong Creek and the Swampy Plain River.

In its Report of 1950 the Snowy River Committee made it quite clear that further investigations on the layout o f the Scheme would be necessary and that these would probably bring about amplifications and variations. Subsequent detailed investigations carried out by the Authority showed that it was impracticable to construct a dam and reservoir at the proposed site on the Geehi River, due to the fact

that the site is in an area subject to landslides. This aspect itself would require the 1950 layout to be changed. As a result, however, o f further comprehensive investigations, a modified layout known as the High Level Diversion has been designed, which not only overcomes the problem on the Geehi River but also has a number o f advantages over the original layout.

H i g h L e v e l D iv e r s io n .—The modified layout is shown coloured yellow on the accompanying plan {se e Appendix III). The layout includes a dam and reservoir on the Geehi River as in the original proposal. The site is, however, about four miles further upstream than the original dam site.

The new layout provides for the principal diversion o f the Snowy River from a point near Island Bend, rather than from Jindabyne as in the preliminary layout of 1950, with a supplementary diversion by pumping from Jindabyne. From Island Bend, water will be diverted through tunnels to the Geehi River or to storage in Lake Eucumbene; the actual direction of flow depending on the magnitude o f river flows at the time and the power requirements at Murray 1. The diversion tunnels will be at an elevation approximately 700 feet higher than in the original plan to divert from Jindabyne.

In the tunnel which will link Island Bend with Lake Eucumbene, water will be able to flow in either direction, that is from Island Bend to Lake Eucumbene or in the reverse direction from Lake Eucumbene. This tunnel will be a feature o f the new layout. It will enable surplus Snowy water to be stored in Lake Eucumbene, thus making it the key storage o f the Scheme. It will also make it possible to harness Snowy River water for power and irrigation at least two years earlier than would have been possible under the original plan.

As in the original proposal, the modified layout also incorporates a dam and reservoir on the Snowy Rivei at Jindabyne, except that the active storage capacity is now about 250,000 acre feet. Water will be pumped from this reservoir to the tunnel system near Island Bend during the night and weekends when cheap off-peak energy is available. The water will then be diverted to the Geehi Reservoir for

the production o f peak load energy in the western power stations.

The main power development in the modified layout is a two-stage development between Geehi Reservoir and the Swampy Plain River near Khancoban; this development is very similar to the original layout. It is shown coloured yellow on the attached plan.

It is important to note that the distribution and diversion of water to the States of New South Wales, Victoria and South Australia will not be affected by the new layout.

Although the cost o f constructing the High Level Diversion will be no greater than the cost of the original proposal, the amount of energy and irrigation water which can be guaranteed under adverse drought conditions will be substantially increased. Fewer construction difficulties are expected as the tunnels will be at higher elevations and consequently the number and depth of access shafts will be reduced. Furthermore, the modified layout can be divided into smaller units o f work, thus providing

much more flexibility in design and construction.

Subject to final acceptance of the new proposal, the Authority is planning for construction o f the first phase of the Snowy-Murray section of the Scheme to commence in the year 1960-61.

F.8800/59.—2

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E l e c t r ic it y T ransm ission Systems.

During the year, the two 3 miles, 330,000 volt transmission lines from Tumut 1 Power Station to the Upper Tumut Switching Station and the 33 miles 330,000 volt line from the Upper Tumut Switching Station to the Murray River were completed and commissioned. As mentioned in my last Report, the line from the Upper Tumut Switching Station to the Murray River will make possible the interconnection of the transmission systems o f New South Wales and Victoria as well as enabling Victoria to draw Snowy electricity. At 30th June, 1959, connection o f the 330,000 volt transmission line from the Murray River

to the Victorian state network had not been completed by Victoria.

T e s tin g H ig h A ltit u d e T r a n s m is s io n L in e s — 6 ,2 0 0 f e e t e le v a tio n .

I n s t a lla tio n s to m e a s u r e ic e lo a d s a n d tr ia l s p a n n e a r

C o n s e t t-S te p h e n P a s s .

I c in g o n m a st. T h e o b s e r v e r h o ld s a 15 in c h r u le .

I c in g o n m a s t is c a u s e d b y a ir b o r n c lo u d d r o p le ts w h ic h

h it o b s ta c le a n d fr e e z e . I c in g g r o w s in t o th e w in d .

I c in g o n w in d e x p o s e d r o c k fa c e a t C o n s e tt-S te p h e n P a s s .

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Following the completion o f the first section o f the Upper Tumut Switching Station which is required for Tumut 1 Power Station, the designs and specifications for the second section which is associated with Tumut 2 Power Station reached an advanced stage and by the year’s end, tenders had been received and orders placed for the supply o f equipment. The Group Control Centre, which is located at the Switching Station, and which contains remote control facilities for the turbines, generators, transmission lines and the more important hydraulic gates in the Upper Tumut area, was virtually completed and commissioned during the year.

The survey work required for the two 2 \ miles 330,000 volt transmission lines from Tumut 2 Power Station to the Upper Tumut Switching Station was well advanced during the year. In addition, there was a considerable amount o f work carried out in connection with the Authority’s lower voltage construction power system and the 330,000 volt transmission system which will be required for the works

on the western side of the mountains. As it is proposed to provide a permanent transmission link crossing the main range between Guthega and the western works, observations were made of ice loadings on trial spans o f lines erected at high altitudes.

The total length of transmission lines now completed by the Authority for all purposes is approximately 260 miles.

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R oad C o n s t r u c t io n .

As work on the Scheme progresses, the Authority’s road network continues to expand. During the year 75 miles of roads and access tracks were completed, making a total of 207 miles o f heavy duty roads and 327 miles of lighter roads and access tracks constructed and maintained by the Authority. These figures do not include the 108 miles of existing public roads previously re-aligned or improved.

Further improvements, including 10 miles o f sealing, were made to the Alpine Way. Of the total length of 315 miles o f heavy traffic roads connecting the Authority’s works centres, 140 miles are now sealed, thus reducing the considerable cost of maintaining the roads and the depreciation and upkeep o f vehicles

Tourist traffic continues to make extensive use of the Authority’s road system to obtain access to the scenic and ski-ing areas in the mountains. The increasing use o f these roads by tourists and other members o f the public is contributing in no small degree to the cost o f road maintenance which must be added to the cost of electricity produced from the Scheme. It is unfortunate that the Authority is

not able to collect some revenue from the general public using the road system, to offset to some extent the consequent increased maintenance costs.

S n o w c le a r in g , U p p e r T u m u t R e g io n .

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I n v estig a tio n s a n d D esig n s.

E n g in e e r in g a n d E c o n o m ic I n v e s t i g a t i o n s .—Investigations were mainly concerned with the Snowy- Mu rray section o f the Scheme and in particular with the power developments between Geehi Reservoir and the Swampy Plain River. As a result of these studies, two major power stations are proposed, namely Murray 1 which will have a power capacity of 760,000 kW., and Murray 2 with a power capacity o f 440,000 kW. Detailed investigations were commenced and are continuing into the arrangement of the tunnel between Island Bend and Geehi Reservoir and the layout o f the Murray 1 Project. Investigations were also in hand for a re-regulating pondage on the Swampy Plain River to convert the

non-continuous releases of water from the Murray power stations into a reasonably uniform flow. Investigations to determine optimum methods o f hydraulic operation o f the Tumut 1 Power Station and its associated head works and river diversions were carried out. Advice was given as required to the Snowy Mountains Council based on the results o f this work. In the solution of these and other technical problems, extensive use was made of the electronic computer “ Silliac ” at Sydney University.

Use of the tape punching and editing equipment at the Authority’s Head Office, Cooma, together with the Authoiity’s teleprint service to the Sydney office has substantially reduced the need for Engineers to travel to Sydney in connection with the solution of problems on “ Silliac ” . During the year, considerable progress was made on the construction and commissioning of a small general purpose electronic computer of advanced design for the Authority. The computer, known as “ Snocom ”, has been developed under the direction of Professor D. M. Myers, Head of the Department o f Electrical Engineering, University o f Sydney, and is being constructed in conjunction with the Mathematical Instruments Section of the C.S.I.R.O. in Sydney. It is expected that “ Snocom ” will be in operation in Cooma in 1960.

F i e l d I n v e s t i g a t i o n s .—The Authority’s Field Investigation forces continued to concentrate their efforts on the Snowy-Murray section o f the Scheme.

Snow surveyor at work.

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Five new gauging stations weie constructed to provide information for the operation of completed works; but eleven other stations no longer required were discontinued. The number of locations at which river flows were recorded was 114. Readings were continued from the 57 snow measuring stations to provide information on snowmelt and the water content of the snow cover. There are now 25 meteorological stations in operation, four of which, in addition to supplying data for the Authority’s

own needs, provide information for the Commonwealth Meteorological Bureau’s synoptic network.

The cloud seeding experiment continued during the year in conjuction with the C.S.I.R.O. Preliminary analysis of the results o f the experiment indicates an apparent increase in precipitation in the target area, but before the Authority can accept such increases without reservation it is necessary to study other pertinent data collected during the course o f the experiment. These data raise a number o f points which require clarification before unqualified support can be given to the apparent results o f the experiment. Accordingly, arrangements have been made with the C.S.I.R.O. to submit data obtained to an independent overseas expert for assessment.

Initial work on measurement o f evaporation was carried out on Lake Eucumbene in conjunction with the C.S.I.R.O.

The assistance given by the Commonwealth Meteorological Bureau in regard to hydro­ meteorological studies for flood analysis and weather forecasting services for operational purposes is acknowledged with appreciation.

Engineering surveys continued throughout the year to provide information for investigation, design and construction o f all types o f structures. Extensive use was made of the Authority’s Beaver aircraft to obtain aerial photographs from which detailed contour plans were prepared.

Drilling work in the mountains.

During the year approximately 15,500 feet o f diamond and percussion drilling was carried out, bringing the total footage of drilling completed since geological investigations were commenced to over 30 miles, or over 5^ times the height o f Mount Everest.

E n g in e e r in g L a b o r a t o r i e s .— Studies on the use o f rock bolts continued during the year, efforts being directed to developing methods of protecting rock bolts with cement grout so that they can be used for permanent as well as temporary rock support. This work was particularly successful, and at the present time the methods developed in the Laboratories are being satisfactorily employed on the Tooma-Tumut,

Murrumbidgee-Eucumbene and Tumut 2 Projects. The equipment originally developed in the Labora­ tories for grouting rock bolts was used successfully in the field for grouting over 5,000 rock bolts in the Tumut 1 Tailwater Tunnel during the final stages of construction. Developmental work was

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also carried out on improved types o f rock bolts to achieve easier installation and simpler grouting methods; promising results have been obtained. The development by the Authority of the designed use of rock bolts is likely to have far reaching effects in underground excavation techniques.

Special investigations carried out during the year included completion of the hydraulic model studies o f the intake structures to the Tooma-Tumut Tunnel, on which particularly satisfactory results were achieved, and the commencement of work on intake structures for the first sections of the Snowy- Murray Works. Included in other work carried out for outside organizations, was a model study of the intake structure for the Pretty Valley Diversion undertaken for the State Electricity Commission of Victoria.

An interesting feature in the year under review was the increasing use o f models both by the Authority and its contractors to supplement maps and plans in investigation, design and construction problems. The Laboratory Workshops produced, amongst others, models o f the Tumut 2 Diversion Dam and o f the proposed Murray 1 Power Station. These have facilitated investigation and design studies, and have contributed to the determination of better construction techniques.

Observations of instruments to obtain data for structural behaviour studies were carried out at Tumut 1 Power Station, Tumut Pond Dam and other structures. Results from Tumut Pond Dam during the period o f first filling were of particular interest, as the dam behaved almost exactly as anticipated, thus confirming the soundness o f its design and construction. A more comprehensive analysis of these results is being carried out with the assistance of the United States Bureau of Reclamation so that full information will be available to assist in the preparation of future designs.

In addition to the special investigations referred to above, routine testing on a variety of construction materials continued during the year, and included a wide range o f destructive and non­ destructive tests. This activity has become an important feature of the Laboratories’ work, making a valuable contribution to the quality of the Authority’s construction work.

During the year, registration of the Laboratories in the field of mechanical testing was approved by the National Association of Testing Authorities. A N.A.T.A. certificate of registration was granted without any provisos or reservations. This reflects great credit on the laboratory staff as it recognizes that the standard of their operation and testing is as high as is obtainable anywhere in Australia.

E n g in e e r in g D e s i g n s .—The principal activities o f the Authority’s Design Group during the year were the completion o f the detailed designs of the first phase of the Upper Tumut works and the preparation o f construction and installation drawings for the Tooma-Tumut, Tumut 2 and Murrumbidgee-Eucumbene Proj ects.

Although still hampered to some extent by the lack o f a sufficient number of experienced designers, all work undertaken by the Design Group is now up to schedule.

As in previous years, the United States Bureau o f Reclamation gave invaluable assistance by providing designs and specifications for a considerable part o f the Authority’s works.

R iv er I m provem ent W o r k s.

In accordance with the provisions of its Act, the Authority is required to take all reasonable measures to avoid causing damage by flooding as a result o f the operation of its permanent works. In observing this provision, the Authority has arranged with the Water Conservation and Irrigation Commission of New South Wales for river improvement works to be carried out on the Lower Tumut

River. In addition, close liaison is being maintained with the responsible Departments in New South Wales and Victoria and with the Shires concerned, in connection with the section of the Upper Murray River to be affected by the Authority’s works.

So il C o n servation a n d L ire P r e v e n t io n .

Prevention o f erosion in the catchment areas of the Scheme is o f the utmost importance in assuring satisfactory long-term operation o f the Authority’s works for the supply o f irrigation water and the generation o f electricity. The Authority’s operations affect only a very small portion o f the catchment areas; however, as mentioned in previous Reports, the Authority considers that the real risk of widespread erosion in the catchment areas generally can be overcome by the regeneration of natural vegetation. The Authority is firmly of the opinion that this can be achieved by the prohibition of high-level summer grazing and the prevention of bush fires.

As mentioned in my last Report, the New South Wales Government, at the request of a number o f Government Departments and private organizations, eliminated grazing above elevations of 4,500 feet. To compensate for the loss of snow lease rentals, the Authority made a contribution o f approximately £12,000 to the State Government; a similar contribution will be made each year for the time being.

A number of the former lessees o f these summer grazing areas continued their violent opposition to the ban and commenced the season by driving stock onto the high ranges despite the State Government’s ban. The Kosciusko State Park Trust, which had the responsibility for enforcing the ban on grazing, delegated responsibility to the Soil Conservation Service o f New South Wales which in turn requested assistance from the Authority. Work carried out by the Authority to enforce the ban was therefore entirely at the expense of the Park Trust and was carried out under the instruction o f State Officers. Despite opposition by a minority of the graziers involved, the action taken was considered to be quite effective.

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Soil conservation activities continued vigorously in areas affected by the Authority’s works. The undertaking given by the Authority that no erosion hazard will result from its works was strictly maintained. As mentioned earlier in this Report, the Soil Conservation Service of New South Wales provided considerable assistance in the regeneration o f the borrow areas near Eucumbene Dam. Designs prepared by the Service, and which were implemented by the Authority’s forces, provide for the construction o f adequate drainage systems in the area to be followed by planting o f Eucalypt trees and tree seeds for final stabilisation. In other areas extensive plantings of selected species of willows and poplars were carried out.

The campaign to ensure that all employees on the Scheme are aware o f the hazards of bushfires was vigorously maintained and although the year was drier than average, there were no major bushfires in the Snowy Mountains Area. The Authority’s fire fighting squads assisted the Victorian Forestry Commission in bringing under control a major fire outside the Area.

Co-operation with the Management Council o f the Hume-Snowy Catchment Area Bushfire Prevention Scheme was maintained, and further fire fighting access tracks were constructed in conjunction with the Forestry Commission o f New South Wales.

Safety.

Considerable attention was given during the year to the problem of bringing about a greater awareness o f the need for safety amongst employees. It is recognized that the fast rate of construction on the Scheme, and the fact that much o f the work is underground, increases the danger hazard and consequently the need for greater safety measures.

In January, 1959, the Authority and its Major Contractors met to explore ways and means of co-ordinating and expanding efforts for improving the standard o f safety on the Scheme. The outcome of this meeting was the establishment o f the Snowy Mountains Joint Safety Council. Voluntary co-operation, joint effort and uniformity in accident prevention measures are the essence and spirit of

the Council’s approach to the problem. The Council consists o f the Commissioner o f the Authority and the Project Managers, representing each major contracting group or Company. Direct representation by the Heads of the Member Organizations ensures that decisions can be made quickly without reference back to Principals.

The Council has appointed a full time Safety Adviser and an Assistant Safety Adviser. In addition each Member Organization has its own Safety Officer or safety staff. The salaries and expenses of the Safety Adviser and his assistant, together with the cost o f equipment and other facilities owned jointly by Member Organizations, are shared in proportion to the number o f employees. Decisions

of the Council are implemented by a Working Committee, which, with the support and direction o f the Top Management o f the Member Organizations, is able to pursue a vigorous safety programme. As a Member Organization o f the Council, the Authority has its own internal Safety Advisory Committee o f seven officers, including representatives of the Unions and employees, which meets fortnightly. The Committee’s decisions are implemented by an Executive Committee. A sub-Commit­

tee advises on safety publicity and education programmes and, in addition, local Committees have been established on each section of the work to hold weekly safety meetings with the men for discussing the previous week’s accidents and means o f eliminating them in future. A daily record o f the number of accident-free days for each group o f men is posted on notice boards erected at the Works Centres.

Proposals for incentive payments to employees with accident-free records are being considered by the Authority and the Contractors. The town o f Cooma was declared the New South Wales Road Safety Project Town and the Authority took an active part in this project. Considerable assistance was given throughout the year and part o f the salary and expenses o f the Project Organizer were met by the Authority.

Staff and Industrial M atters.

S t a f f .—There was a very small increase in the Authority’s total staff during the year whilst the number o f wages employees decreased by approximately 15 per cent. The fall in the number o f wages employees was caused mainly by the natural seasonal wastage which was not replaced as it became necessary to some extent to curtail day labour works to finance the contracts. The following table shows

the variations in the number o f personnel employed during the year:—

Professional and Technical Staff. Administrative and Finance Staff. Total Staff. Wages Employees.

1st July, 1958 .. . . 803 538 1,341 1,475

30th June, 1959 . . . . 804 561 1,365 1,254

Increase . . . . 1 23 24

Decrease .. .. 221

The shortage o f qualified Engineers has continued despite energetic recruitment efforts in Australia and overseas. It is anticipated that a recruiting campaign conducted towards the end of the year in the United Kingdom and Europe will result in the addition o f a number of Engineers to the staff. However, the staff position is still likely to be such that, without the assistance o f the United States

Bureau o f Reclamation, which has been considerable during the year, progress on the Scheme would be retarded.

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The total number o f sub-professional staff who have completed the Authority’s comprehensive training courses for contract supervision and field investigation work is now 218. The increased use of sub-professional staff has done much to alleviate the chronic shortage of professional staff by allowing professional men to devote their efforts to purely professional work.

Although there has been a slight increase in the overall turnover of staff during the year under review, it is lower than for 1956-57 and preceding years and once again the figures are heavily weighted by female and junior staff resignations. The staff turnover figures for the last five years are given below.

Year ended 30th June— Average No. of Staff. Resignations as a Percentage of Average Number of Staff.

1955.. .. .. .. .. 1,096 25.30

1956.. .. .. .. .. 1,075 17.20

1957.. .. .. .. .. 1,182 19.88

1958.. .. .. .. .. 1,262 15.21

1959.. .. .. .. .. 1,361 16.16

On 28th January, 1959, Mr. T. A. Lang, C.B.E., M.C.E., M.I.E.Aust., M.ASCE, who had been an Associate Commissioner o f the Authority since shortly after its inception, resigned to take up an important engineering position in the United States o f America. The Authority has been fortunate in having a man o f Mr. Lang’s ability associated with it during its formative years. His appreciation o f the problems connected with the administration o f large engineering contracts and his interest in the development o f new techniques have assisted greatly in the progress of the Scheme. The development

of the designed use of rock bolts as an efficient and economical means of supporting underground structures resulted largely from Mr. Lang’s efforts. The Authority records its appreciation and thanks to Mr. Lang for the very valuable assistance which he so ably gave.

M r . T . A . L a n g , C .B .E ., M .C .E ., M .I .E . A u s t., M . A S C E .

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Μι. Η. E. Dann, B.Mech.E., A.M .l.E.Aust., was appointed as Associate Commissioner on 16th March, 1959, to succeed Mr. Lang. He has been with the Authority since its inception. Prior to his appointment as Associate Commissioner he was Chief Engineer, Investigations and Major Contracts. Mr. Dann has a long history of association with the development of the hydro resources of the Snowy Mountains Area, having been connected with the Snowy River Committee, which, in 1950, produced its final report on proposals to divert the Snowy River.

I n d u s t r i a l .— Industrial relations during the year were good. The few minor disputes which occurred w'ere settled promptly and there were no dislocations of activities o f any consequence. The continued practice of the use of incentive payments where practicable by the Authority and the Contractors has not only been a contributing factor in achieving this satisfactory situation but also has had a beneficial

effect on the progtess of the works.

H o n o u r s .— In the 1959 New Year's honours Mr. T. A. Lang was honoured by having the Commander, Order of the British Empire conferred upon him. In addition four of the Authority’s employees, Mr. A. J. B. Kelso, Mr. M. McMillan, Mr. J. S. Morgan and Mr. L. Matuszewski, were honoured with awards of the British Empire Medal.

P ro perty a n d S u p p l y .

P r o p e r t y .— It is the Authority’s policy to provide comfortable modern cottages for its married staff and key wages personnel in Cooma and at working points throughout the Area. Assistance has also been given to Commonwealth and State Departments by providing housing for their officers who are connected with the Scheme and stationed in the Area. At the end o f the year, the Authority had provided a total o f 1,025 cottages and 45 flats for its employees.

Following the completion o f Eucumbene Dam, the Authority, in October, 1958, took over 323 transportable houses from the Department of Public Works, New South Wales. Of these 111 have already been moved to other working centres, mainly in the Upper Tumut Region. Some of the remainder will be transported to the works centres on the western side o f the ranges and the balance will remain at Eucumbene Dam for use by the Authority’s and Contractor’s personnel to be employed on the

Eucumbene-Snowy Project. As provided under the contracts for works in the Upper Tumut Region. 7 houses formerly occupied by Contractor’s personnel also become the Authority’s property during the year. In accordance with the Authority’s policy o f constructing only transportable houses at working points throughout the Area, it was made a contract requirement that houses which would revert to the Authority were also to be transportable. This ensures that houses can be moved from project to project as works are completed, resulting in savings in both time and money.

During the period under review, a further £112,153 was spent on the purchase of privately owned land and buildings to be inundated by Lake Eucumbene and the proposed Jindabyne storage. The Authority's policy of purchasing such property by negotiation instead of by acquisition was continued successfully throughout the year.

S u p p l y a n d C o n tr o l o f S t o r e s , P l a n t a n d E q u i p m e n t .—Effective control of stores and assets was maintained throughout the year. At the annual stocktake net discrepancies of the total value of expandable stores and of tools and equipment held during the year were 0.03 per cent, and 0.16 per cent, respectively. These figures are very satisfactory, especially in view of the fact that the work forces are

scattered over wide areas and are constantly on the move.

Efforts to reduce stores holdings to the minimum practical extent were continued throughout the year. As mentioned in earlier Reports, the difficulties o f achieving this aim are aggravated by the continued intake o f stores and equipment from completed contract works and from other organizations assisting the Authority. With the first phase of the Upper Tumut works now virtually completed, the problem will become more acute. As in the past, intakes o f stock will be used in other works as far as practicable, the remainder being disposed o f by auction sales.

During the year, a further £407,702 was spent on the purchase of construction plant, equipment and transport. Because o f the severe working conditions on the Scheme, the Authority has continued its policy o f short operating lives for its plant, equipment and vehicles. The continued success o f disposal sales of used items, and the low maintenance costs achieved, support the adoption o f this policy.

A g r eem en t betw een t h e C o m m o n w ea lth, N ew So u t h W ales a nd Vic t o r ia .

It is pleasing to report that after seven years o f protracted negotiations, the Agreement is now formally effective. In my last Annual Report it was mentioned that the legislation giving effect to the Agreement had been passed by the three Parliaments concerned, but that proclamation had been deferred pending

the completion of inter-Governmental negotiations concerning the distribution o f waters from the Scheme. These negotiations also involved the State o f South Australia. Agreement on this aspect was reached towards the end of 1958. This agreement provides that under normal conditions, the States of New South Wales and Victoria are each entitled to half the quantity o f water diverted from the Snowy River

to the Murray River, after deducting the quantity of watet diverted from the Tooma River to the Tumut River and Lake Eucumbene. During a drought, however, when a period of restriction has been declared by the River Murray Commission, the whole of the water resources under the control o f that Commission

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are shared between the States o f New South Wales, Victoria and South Australia. Thus, in these circumstances South Australia also obtains a share o f Snowy water. Following completion of these negotiations, the Commonwealth, New South Wales and Victoria proclaimed their respective Snowy Mountains Hydro-Electric Power Acts and the Snowy Mountains Agreement came into effect on 2nd January, 1959.

The basic provisions o f the Agreement are—

C o n stru c tio n o f W o r k s .—The Authority is authorized to construct works for the collection, storage and diversion of water and for the generation of electricity within the proclaimed Snowy Mountains Area. These works include provision for the diversion of the Eucumbene and Tooma Rivers to the Tumut River Catchment, and for the diversion of the Snowy River to the Murray River Catchment. Provision is also made for the construction of Blowering Dam by

the State of New South Wales and for contribution by the Authority towards the cost of increasing the capacity of Hume Reservoir from 2,000,000 acre feet to 2,500,000 acre feet or alternatively for construction by the Authority of a balancing storage on the Upper Murray of a capacity not less than 250,000 acre feet.

C o n tro l, D iversio n a n d S to r a g e o f W a te rs.—This provision allows for sharing by the States of the additional water made available by the works of the Authority and in addition provides safeguards for the States’ interests during the construction period prior to the completion of the major diversions.

P ro te c tio n o f C a tc h m e n t A re a s.—This provision defines the Authority’s responsibilities in regard to existing legislation and in relation to State Departments and Authorities. In particular, it provides that in carrying out its works, the Authority shall exercise all proper care to preserve the natural assets of the Area.

G en era tio n a n d S u p p ly o f E le c tr ic ity .—This provision stipulates that not less than five years prior to the estimated date of production from a stage of the works, detailed estimates shall be given to the New South Wales and Victorian State Electricity Commissions of the production of electrical energy and power, Commonwealth requirements and the estimated cost of production. Provision is made for the surplus electrical energy, following fulfilment of Commonwealth requirements, to be divided in the ratio of two-thirds and one-third between New South Wales and Victoria respectively.

Provision is also made to prevent the possibility arising whereby the States could be required to pay more for electrical energy in any year than they would have had to pay if they had installed additional generating plant to generate the same total output of electricity, due allowance being made for transmission and other charges. The method to be adopted

in calculating the cost of production is covered in detail in the Agreement.

S n o w y M o u n t a i n s C o u n c il.—The Interim Snowy Mountains Advisory Council, which had been set up in Aptil, 1953, was on 2nd January, 1959 replaced by the Snowy Mountains Council constituted under the Agreement. The duties o f the Council are to direct and control the operation and maintenance o f the permanent works o f the Authority and to advise on co-ordination o f the works of the Authority with the works o f the States o f New South Wales and Victoria. Two representatives of the Commonwealth Government, two of the Authority and two of each of the States form the Council.

Between 2nd January and 30th June, 1959, the Council held four meetings. At these meetings the Council made various determinations for the control of operation and maintenance o f the Authority’s works and considered a number o f matters raised in connection with interpretation o f the Agreement. The Council also considered and endorsed the Authority’s High Level Diversion proposal for the Snowy- Murray section o f the Scheme.

Mr. J. C. Callinan, the Authority’s Chief Engineer, Electrical and Mechanical, was appointed part-time Operations Engineer by the Council.

S u p p l y o f E l e c t r i c i t y to th e A u s tr a lia n C a p ita l T e r r i t o r y .—Under the terms of the Agreement, the Commonwealth is entitled to reserve from the production o f the Scheme its requirements of electricity for use in the Australian Capital Territory and for defence purposes. During the early years of operation o f the Tumut 1 and Tumut 2 Power Stations, when it is necessary to accumulate storage in Lake Eucumbene and prior to the completion of the Tooma and Murrumbidgee Diversions, the outputs from these stations will be less than those possible when the stations come into full production, if

the Commonwealth exercised its rights under the Agreement and reserved its full requirements during these early water storage “ build-up ” years, Victoria’s share of the surplus electricity would be relatively small. The Commonwealth recognized this fact and agreed to an abatement o f its reservations during the “ build-up ” period subject to satisfactory arrangements being negotiated with the State of New South Wales for the supply of electricity required by the Australian Capital Territory in excess of the reduced reservations. These negotiations, which involved the Authority to a considerable extent, were carried on throughout the year and at 30th June, 1959, a solution was in sight.

The arrangements proposed provide for the Commonwealth’s reservations of electricity to be progressively increased during the initial years of operation of the Tumut 1 and Tumut 2 Power Stations until the year 1963-64 when these stations come into full production. At that point in time the Commonwealth’s reservations will equal the full estimated requirements of the Australian Capital Territory. Electricity supplied by the New South Wales Electricity Commission to the Australian Capital Territory in excess of the reduced reservations is to be supplied at the bulk tariff rate which would have applied if the whole o f the Commonwealth’s requirements had been obtained from that Commission.

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Since the Tumut 1 Power Station commenced commercial operation in May of this year, the Commonwealth has been supplied with part of its requirements o f electricity from the Scheme. The cost of this energy, plus transmission charges, has been significantly less than the New South Wales Electricity Commission’s average bulk supply rate and has resulted in savings to the Australian Capital Territory.

These savings will increase progressively over the “build-up” period.

N o t i f i c a t i o n o f th e O u t p u t s a n d C o s t o f P r o d u c tio n o f E le c t r i c i t y .— In accordance with the

requirements of Clause 14 o f the Agreement, the Authority is required to provide the Electricity Commissions o f New South Wales and Victoria with detailed estimates o f the production of electrical energy and power. Commonwealth requirements and the estimated cost of production for the various stages of the Authority’s works. As mentioned earlier, the preparation o f a formal Notification for the Tumut 1, Tumut 2 and Guthega Stages of the Scheme was in hand at the end o f the year. In order to guarantee the long term minimum outputs under all inflow conditions, the Authority has adopted a

principle which determines the amount of water which must be held in storage at any particular time. The Notification is being prepared on this basis. In this connection, it is worth while to draw attention to the fact that although there has been a period of low flows during the year, Lake Eucumbene held 381,860 acre feet of water in storage when the Eucumbene-Tumut Tunnel was brought into service. The accumulation o f this storage was made possible only by the fact that the first stages of construction of Eucumbene Dam were completed some months ahead o f schedule and the whole contract two years ahead of schedule. Because Tumut 1 Power Station is backed by the water held in storage in Lake

Eucumbene and the Eucumbene-T umut Tunnel was available some months ahead o f schedule, it has been possible to include higher outputs in the Notification than would have otherwise been the case. There is no doubt that the Authority’s policy o f introducing bonus payments into its contracts gives the contractors the necessary incentive to push ahead vigorously with the construction of works and achieve

such satisfactory results.

C o s t o f E l e c t r i c i t y .—As mentioned earlier, it is anticipated that the cost of peak load energy from Tumut 1 Power Station when in full production will be approximately 0.90d. per kilowatt hour. The corresponding figure for the combined output of Tumut 1 and Tumut 2 Power Stations in full production is approximately 0 . 95d. per kilowatt hour. These costs have been assessed on the principles laid down

in the Agreement and allow for possible contingencies which may occur prior to completion of the stations. They also include a component attributable to the cost o f supplying water for irrigation without charge. The fact that the irrigation component has a significant effect on the cost of Snowy electricity is almost invariably disregarded by economists and others making independent analyses o f the Scheme.

Tumut 1 and Tumut 2 are designed to produce low load factor or peak load energy. Peak load energy is much more costly to produce than high load factor or base load energy. Any comparison of costs must, therefore, take account o f the nature of the energy produced. There are a number of intangible factors which complicate comparisons but there is no doubt that, as a general statement, the cost of peak load energy produced by thermal plants in Australia at present is considerably in excess of

one penny per kilowatt hour.

It should be noted that the installed capacity of Tumut 1 Power Station together with that to be installed in Tumut 2 Power Station is almost one quarter o f the present total peak power demands o f the New South Wales and Victorian Systems.

P u b l ic R e l a t io n s.

As in previous years, the main activities in the field o f Public Relations have been concentrated on providing facilities for the public to see the Scheme. As most of the organized tours extend over 2^ or 3 days, this has involved the provision of meals and overnight accommodation at Works Townships for most o f the visitors, also the training o f a team o f sixteen Conducting Officers. A charge is made for these services.

Members o f the public wishing to take advantage of the arrangements are able to join the following tours:— “ Coach Tours ” commencing at Cooma, Sydney, Melbourne and other centres; “ Rail-Coach Tours ” commencing at Sydney;

“ Plane-Coach Tours ” commencing at Sydney and Melbourne; “ Car Convoy Tours ” commencing at Cooma and Corryong.

Launch trips across Lake Eucumbene have been introduced into the itineraries of a number of tours.

The following figures for the number o f persons visiting the Scheme indicate the public’s growing interest:—

1956. | 1957. 1 1958.

15,000 27,000 44,000

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During the financial year ended 30th June, 1959, 54,000 members of the public visited the Scheme of whom 33,000 joined conducted tours. These included many technical men of world eminence and other important persons from overseas. An increasing number of the Australian public makes regular annual visits to gain at first hand up-to-date knowledge on the progress o f the works.

The Authority’s Photographic Section has produced nine 16 mm. colour-sound films for Public Relations purposes. Of these, one was accepted for the American Film Assembly, New York Festival of the Golden Reel—-1957 and for the Harrogate (England) Film Festival— 1957. Another was accepted for the Harrogate Film Festival— 1958 and a third received the Top Award for the Documentary Section of the Melbourne Film Festival— 1958. The most recent of these films are in circulation in Great

Britain, United States of America, Canada, India and New Zealand, as well as in Australia.

GENERAL MATTERS.

A p p r o p r ia t io n o f F u n d s.

The financing of large civil engineering contracts, with contract periods extending over several years, presents very real difficulties when the contracts are financed through annual appropriations by Parliament. The annual Budget, so necessary for the direction of the nation’s economy and monetary policy, is often not sufficiently flexible to enable the greatest advantage to be gained from the contract system. In almost all cases, speed in proceeding with the contract means ultimately a cheaper job and earlier revenue. Because of the extremely rapid progress on the Authority’s major contracts during

the year it became necessary to seek additional funds in March, 1959 to meet the increased rate of payments to the contractors. The Commonwealth Government made available an additional amount of £4,500,000 for this purpose, enabling the excellent rate of progress being achieved by the Contractors to be maintained.

Typical examples of the advantages of completing works ahead o f contract schedules, even though this involves higher rates of progress payments over a shorter period, are seen in the first phase of the Upper Tumut Works. The Eucumbene Dam was completed two years ahead of schedule. The Eucumbene-Tumut Tunnel was brought into service four months ahead o f schedule and the whole of

the contract was virtually completed some fourteen months ahead o f schedule. The early completion of these works enabled the waters of the Eucumbene River as well as the waters of the Tumut River to be available shortly after the commencement of production of electricity from Tumut 1 Power Station which was brought into operation during an exceptionally dry period. Completion of the Eucumbene- Tumut Tunnel before the spring snow-melt ensured that any surplus water from the winter and

spring flows of the Tumut River, which otherwise would have been lost, would be stored in Lake Eucumbene for later use. Similarly, the completion ahead of schedule of the Tumut 1 Power Station enables all of these works to become revenue producing at an earlier date.

T he U n it e d States B u r ea u of R ec l a m a t io n.

Under the Agreement between the Governments of the United States and the Commonwealth for a co-operative programme o f technical training and assistance, the Bureau has during the year again made an invaluable contribution to the advancement o f the Scheme. A further fourteen Engineers received the benefit of training and experience with the Bureau at its Engineering Headquarters in Denver,

Colorado and on large projects in the United States being constructed under the Bureau’s supervision. A total of 83 of the Authority’s Engineers have now been trained under this scheme. In addition, the Bureau has continued to carry out a large portion of the engineering designs for the Upper Tumut Works and to provide the services of several of its senior Engineers to assist the Authority in the design o f major structures and in contract administration and supervision. During the year, Mr. Η. K. Brickey and Mr. J. W. Ball, senior officers of the Bureau’s Canals Design Branch and Hydraulic Laboratory respectively, came to Australia for discussions with officers o f the Authority on various phases of the work which the Bureau is carrying out for the Authority. Mr. W. A. Dexheimer, Commissioner of the Bureau of Reclamation, also visited the Scheme during the year and commented most favorably both on the progress that had been made since he first visited Australia in 1950 and on the standard

of engineering achieved.

E x ec u tio n of W o rks by C o n t r a c t.

The Authority has continued its policy o f carrying out works by contract wherever practicable. Pioneering work and such other types o f construction as are unsuitable for contracts continues however to be undertaken by the Authority’s own day labour forces.

A p p l ic a t io n of th e I n c en tiv e System.

Wherever practicable, the Authority offers incentive payments to its workers. The system which the Authority has found to be eminently suitable provides for the workers and the Authority sharing equally any saving achieved on the estimated cost o f work. This system has undoubtedly paid dividends, not only in reducing costs but also in reducing the time of construction.

29

1 3 7 3

C ost I n d ic e s.

The Authority has established a cost index to record the variation in construction costs in the Snowy Mountains Area. This index shows that since the first major contracts for the Upper Tumut Works were awarded in 1954, there has been an average increase in construction costs of approximately 24 per cent. It is significant that a large part of this increase is caused by the wages component of costs. Naturally, an increase in construction costs must be reflected in the cost of electricity and the Authority is concerned that the increase in wages costs in the Area has been greater than the general increase in wage levels throughout the State. The majority of these increases result from determinations by the New South Wales Industrial Commission relating specifically to the working force in the Snowy Mountains Area. The Authority’s contracts provide that the cost of such increases are to be shared between the contractors and the Authority.

C o n su lta tiv e Ser v ic es.

The Authority has continued its practice of obtaining the services of eminent Consultants for discussion and advice on major engineering problems. During the year advice was obtained from a number o f such men, including—■ Mr. Roger Rhoades, Consulting

Geologist, San Francisco Professor E. A. Rudd, Consulting Geologist, University o f Adelaide Mr. Raymond A. Hill, Consulting

Engineer, Los Angeles Mr. J. Donovan Jacobs, Consulting Engineer, San Francisco

General geological problems associated with current and future work. General geological problems associated with current and future works. Engineering economics associated with the overall

development of the Scheme. Practical problems associated with tunnelling and underground works.

In addition, a number of the staff of the University o f Sydney are retained as Consultants for work in various specialized fields. These include Professor Aston for problems on surveying, Dr. J. M. Bennett for advice on the use o f high-speed automatic computers and Professor Roderick for problems related to the design o f civil engineering works.

A dvisory C om m ittee o n t h e A esth etics o f M a jo r St r u c t u r e s.

The Advisory Committee set up last year continued to give advice to the Authority during the year. As mentioned in my last Report, the Authority’s prime requisite in the design o f structures is to achieve economy, safety and durability. It is the Committee’s task to give such advice as will ensure that the structures have a pleasing appearance and are in harmony with the general surroundings. Members of

the Committee are as follows:—■ Professor Denis Winston, M .A., B.Arch., F.R.I.B.A., M.T.P.I., F.I.L.A., Professor of Town and Country Planning, University of Sydney. Mr. D. C. MacLurcan, A .R I B.A., A.R.A.EA., F.I.E.S. (Aust.), Architect, Sydney.

Mr. I. L. Pinkerton, B.Sc., B.E., A.M .l.E.Aust., A.M.ASCE., the Authority’s Engineer-in­ Charge, Civil Engineering Design.

T e c h n ic a l P a per s a n d A r tic les o f S c ie n t ific V a l u e .

In addition to the large number of contributions made to Technical and Scientific Journals in the past by officers o f the Authority, technical papers published during the year included— Diesendorf, W.

Falconer, D. Η. B.

Frost, A. C. H.

Kraus, E. B.

“ Modern Trends in the Hydro-Electric Power F ield ” ; Indian Journal of Power and River Valley Development, August, 1958 (previously Journal of Inst. Engrs., Australia, April-May, 1958). “ Investigation Design and Construction o f Aqueducts to Augment

Hydro-Power Generation ” ; Journal of Inst. Engrs., Australia, Sept., 1958. Contributions to the Mechanical and Electrical Section of the reference book Hydro-Electric Engineering practice; edited

by J. Guthrie Brown; Blackie, 1958. “ The Evaporation-Precipitation of the Trades ”, Tellus, May, 1959. Raeder-Roitzsch, J. E .. . “ Experiments on Transplanting Open-rootedFucalypt Seedlings” ;

Australian Forestry, Vol. 22, 1958.

Moye, D. G. . . “ Rock Mechanics in the Investigation and Construction o f T.l

Underground Power Station, Snowy Mountains, Australia ” ; Geological Society of America—Engineering Geology Case History No. 3— Rock Mechanics, 1959.

30

E m pl o y m e n t o f O fficers of t h e R oyal A u st r a l ia n E n g in eers a n d th e R oyal E n g in eer s.

The employment of Engineer Officers from both the Australian and British Armies continued during the year. These officers, who are attached to the Authority for periods o f up to two years, obtain experience on the construction o f major engineering projects and at the same time make a worthwhile contribution to the advancement of the Scheme. The first two British Army Officers arrived during the year. To date six officers have been attached to the Authority under this co-operative arrangement.

t x : ’ ' Ϊ» ?:; a ■ 1 f _ , V \ ; . ,, vx -"5^

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W m m m m m m m m

T h e A u t h o r i p ’s s e c o n d B e a v e r A ir c r a ft.

U se o f A ir c r a f t .

During the period under review a second 6-passenger De Havilland Beaver aircraft was purchased. The use of these multi-purpose type of aircraft has effected considerable economies in operations. Their use as speedy transportation for personnel, equipment, stores and injured employees has proved to be invaluable. Mention has already been made of the extensive use of aircraft on preliminary reconnaissance and detailed survey work, with consequential savings in both time and money. During the year the two aircraft flew almost 1,000 hours on 1,720 separate flights, carrying 3,438 passengers and 118,700 lb. of freight.

The Authority’s first Beaver plane caught fire whilst taking off at Geehi on 21st May, 1959. The aircraft was completely destroyed but fortunately there were no serious injuries. Enquiries by the Department of Civil Aviation and the Authority into the cause of the accident were not completed at the year’s end.

PROGRAMME FOR THE IMMEDIATE FUTURE.

The third and fourth 80,000 kW. units o f the Tumut 1 Power Station will come into commercial operation early in October, 1959. Further storage will be accumulated in Lake Eucumbene to supply the Tumut 1 and Tumut 2 Power Stations, permitting a progressive increase in output with a view to their reaching full production in the year 1963-64.

Work on the contracts for the Tooma-Tumut, Murrumbidgee-Eucumbene and Tumut 2 projects will continue. It is expected that the present rapid rate o f progress will be maintained on this group of works throughout the ensuing year.

31

I 3 7 5

T h e S n o w y M o u n t a in s f r o m th e W e st.

The general office and field investigations for the Snowy-Murray Development will be completed. The Authority’s proposed programme for this section o f the Scheme provides that tenders be called for the first phase o f the work in the year 1960-61. The same programme provides for the diversion of the Snowy River to the Murray and the production of the first electricity in the Murray Valley by the winter

Office and field investigations will be continued with the aim not only of bringing about further improvements in the layouts of future projects, but also of achieving maximum economy in the ultimate use of the water resources of the Area. The results o f the most recent overseas investigations into world power resources continue to stress that hydro-electric generating stations producing peak load energy are ideal partners for the large base load coal burning and nuclear plants proposed. In many countries extensions of the hydro-electric resources are being carried out by means of pumped storage schemes.

Early last year, Mr. J. Guthrie Brown, an eminent English Engineer, made a statement which was reported as follows:— “ What, he asked, would be the position in the future when the nuclear age was established ? Some thought that with the advent of nuclear power the days of hydro-electric generation were over, but in his opinion the exact contrary was the case. One or two pointers to this, he thought, could be clearly seen already. A nuclear power station was best operated on a steady continuous base load for 24 hours of the day. To deal with the peak loads, the ideal arrangement would be to have conventional hydro-electric or pumped-storage stations, which could be rapidly switched on, or off, as the load varied. In Britain, the first pumped-storage station to cope with the varying kilowatt demand was being constructed for the Central Electricity Generating Board at Ffestiniog in North Wales, with an installed capacity of 300 MW. The North of Scotland Hydro-Electric Board also had under consideration a pumped-storage scheme of the same size near Oban, and further and even larger schemes were contemplated in the future.”

The Authority is keeping itself informed in regard to pumped storage projects, as with its reservoirs and storages completed, the Scheme could well be ideally suited to future extensions o f this nature.

F inance,

As required under Section 32b (1) o f the S n o w y M o u n t a i n s H y d r o - e le c tr ic P o w e r A c t 1949-1958, financial statements for the year ended 30th June 1959 are attached to this Report as Appendices I and II. These financial statements are in the form approved by the Treasurer and are based on the financial provisions of the Agreement between the Commonwealth and the States of New South Wales and Victoria concerning the Snowy Mountains Scheme.

In accordance with Section 32b (2) of the Act, the financial statements have been submitted to the Auditor-General for the Commonwealth who has certified as to their correctness. The Auditor-General has also issued a certificate in accordance with Clause 15 (2) {zb ) of the Commonwealth-States’ Agreement as to the Authority’s net cost of production for the financial year.

32

Funds are advanced to the Authority by the Commonwealth from annual Appropriations by Parliament from Consolidated Revenue for “ Capital Works and Services” . The funds so advanced are treated as loans to the Authority and interest is charged at the effective long-term bond rate at the time each advance is made.

I have referred in my previous Reports to the heavy incidence o f interest charges on the cost of hydro-electric power. Interest charges accounted for 81 per cent, of the Authority’s cost of producing electricity during the financial year 1958-59 but this proportion will be even higher in the future because the full effects of the rise in interest rates since the beginning o f the Authority will not be reflected in the cost of electricity until works at present under construction commence operation. The following table

shows the advances made by the Commonwealth to the Authority for each financial year since the Authority began, together with the interest rate obtaining at 30th June o f each year:—

Year Ended 30th June. Advances Received (to nearer €). Interest Rate at 30th June (per cent.).

£ £ d.

1950 .. .. .. .. 2,497,435 3 2 6

1951 .. .. .. .. 6,076,814 3 4 3

1952 .. .. .. .. 10,393,000 3 15 0

1953 . . . . . . . . 13,600,000 4 10 0

1954 . . . . . . . . 13,170,000 4 10 0

1955 . . . . . . . . 13,200,000 4 10 0

1956 . . . . . . .. 15,146,000 5 1 9

1957 .. .. .. .. 18,000,000 5 0 0

1958 . . . . . . . . 18,350,000 5 0 0

1959 .. .. .. .. 24,000,000

134,433,249

5 0 0

The Authority’s capital indebtedness to the Commonwealth at 30th June 1959 was £153,094,836, comprising £134,433,249 for advances by the Commonwealth and £18,877,520 for accumulated interest, less repayment of £215,933.

The total net capital expenditure to 30th June, 1959 on Permanent Works was £134,326,144, on which interest of £18,866,899 had accumulated during construction. The total net capital expenditure comprises £13,114,959 for the 60,000 kW. Guthega Project which came into commercial operation on 21st February, 1955; £9 million for the 160,000 kW. first phase of Tumut 1 Project, which began commercial operation on 4th May, 1959 with limited production whilst the storage of water was built up; and £112,211,185 for Permanent Works not yet in operation. The £9 million for Tumut 1 Project is the

proportion of the net capital expenditure so far incurred on the Project deemed appropriate to its partial operation. The proportion was determined having regard to the views of the Snowy Mountains Council and in accordance with the Agreement.

In respect of the capital costs o f the Projects which are in operation £236,596 has been charged to Revenue Account to 30th June 1959, being £167,537 for depreciation and £69,059 for interest accumulated during construction.

In accordance with Commonwealth policy, the Authority has now established a Superannuation Fund to meet its liability under the Commonwealth Superannuation Act. Investments have been so planned that, by June 1961 and thereafter, they will be providing in full for the Authority’s accrued and accruing liability to its personnel under the Superannuation Act.

Other assets include a net £2,477,047 for Construction Plant, Vehicles and Tools and Equipment, at cost less charges to Works in respect o f accrued depreciation.

Advances are provided to governmental organizations carrying out work for the Authority. At 30th June 1959, the United States Bureau of Reclamation held £22,487 as an advance for design work and technical services it is undertaking for the Authority. Other advances include a balance of £261 held by the Commonwealth Scientific and Industrial Research Organization to finance experimental cloud seeding operations, £4,421 held by the Water Conservation and Irrigation Commission in connexion with snagging and other improvement works on the Lower Tumut River, and £1,021 retained by the

Department of Public Works, New South Wales, against outstanding accounts in connection with the construction of Eucumbene Dam.

In conformity with Commonwealth policy, the Authority acts as its own Insurer for Workers' Compensation and other risks. Between 1st July 1951 and 30th June 1959 savings on Workers’ Compensation Insurance have amounted to approximately £347,559—representing the difference between Workers’ Compensation payments and the estimated cost of premiums which would have been paid to outside Insurers during this period.

i 3 7 7

For the year ended 30th June 1959, the total electricity sent out from the Guthega and Tumut I Power Stations was 186.588 million kilowatt hours at a total cost of ,9785d. per kilowatt hour. Revenue earned from charges to the Commonwealth and Electricity Commissions of New South Wales and Victoria in respect of electricity generation amounted to £760,698 comprising £57,101 for operation and maintenance plus £704,180 for interest and depreciation, and less £583 for miscellaneous income.

A comprehensive and effective internal audit was maintained over all accounting activities throughout the year and included the regular verification o f cash, stores, and other assets.

Detailed studies were begun during the year on the application of advanced electronic data processing techniques to the Authoi ity’s accounting system, and were well advanced by 30th June, 1959.

W. HUDSON, Commissioner.

33

F.8800'5 9 .-3

1 3 8 5

SNOWY MOUNTAINS HYDRO-ELECTRIC POWER ACT 1949-1958.

AUDITOR-GENERAL’S REPORT TO MINISTER FOR NATIONAL DEVELOPMENT ON FINANCIAL STATEMENTS OF THE SNOWY MOUNTAINS HYDRO-ELECTRIC AUTHORITY FOR THE FINANCIAL YEAR ENDED 30th JUNE, 1959, PURSUANT TO SECTION 32b (2) OF THE ACT.

CO M M O N W EA LTH O F AUSTRALIA.

Audit Office.

Canberra, A.C.T.

3rd March. 1960.

The Honourable, The Minister for National Development, Parliament House, Canberra. A.C.T.

Dear Sir.

SNOWY M O U N TA IN S HYDRO-ELECTRIC AUTHORITY.

In compliance with section 28a of the Snowy Mountains Hydro-electric Power Act 1949-1958, the accounts and records of financial transactions of the Authority for the year ended 30th June, 1959 have been audited.

2. In compliance with the provisions of section 32b (2) of the Act, 1 now report that the financial statements for 1958-59 are based on proper accounts and records; are in agreement with those accounts and records and, in my opinion show fairly the financial operations in respect of stages in operation and the state of the finances of the Authority. The receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the Authority during the year have been in accordance with the requirements of the Act. Comments on certain aspects of the accounts are shown below.

F inancial D irective by the T reasurer.

3. In my report to you on the financial statements for 1956-57 and 1957-58, I referred to the delay in the issue of the new directive by the Treasurer covering:— (a) the terms of advances made to the Authority since the date on which the Authority first commenced to sell power, viz., 21st February, 1955;

(A) the terms on which interest shall be paid to the Commonwealth; and (c) the terms on which advances shall be repaid to the Commonwealth.

4. The directive has still not been issued. As a consequence, interest charges to the date of this balance-sheet may require revision if the directive, when issued, does not confirm the Authority’s assumptions as to what its precise terms may cover.

5. As mentioned in my report on 25th November, 1959, although a tentative agreement has been reached between the Treasury and the Authority on the terms to be contained in the directive, it does not provide a completely satisfactory basis for compilation of the financial statements or my report thereon as —

(a) the terms as finally determined by the Treasurer may not be as anticipated; and (b) there is some doubt as to whether certain of the anticipated terms can, in fact, be

determined by the Treasurer in accordance with the provisions of section 25 (2) of the Snowy Mountains Hydro-electric Power Act 1949-1958 whilst “ having regard to the provisions of clause fifteen of the Agreement ” .

F .8800/59.— 4a

N et C ost of Production—G uthega and T umut 1.

6. In accordance with the provisions o f Clause 15 (2) (z b ) o f the First Schedule to the Act, I have certified as to the net cost o f production of the Authority for the year ended 30th June, 1959. A copy of the statement setting out the cost o f production from Guthega and Tumut 1 installations is enclosed for your information. Tumut 1 commenced commercial operation on 4th May, 1959.

7. The net capital expenditure on the Guthega 60 MW stage has been reduced from £13.131,258 as at 30th June. 1958 to £13.1 14,959 as at 30th June. 1959 mainly by receipts from disposal of stores, plant, &c., which became surplus after completion o f that stage.

8. In accordance with the provisions o f Clause 15 (2) ( v) of the First Schedule to the Act and having regard to the views o f the Snowy Mountains Council, the Authority determined that the gross amount invested in Tumut 1 stage would be brought into account in separate sums and that the sum to be deemed appropriate to the first phase, which was defined as the period from 4th May, 1959 to 31st March, 1960. would be £9,000,000.

9. The Commonwealth reservation o f electrical energy from Tumut 1 production for the period 4th May, 1959 to 30th June, 1959 was 7,400,000 kilowatt hours. The portion of the net cost of production payable by the Commonwealth for this electricity amounted to £15,166.

10. The balance of the net cost o f production from Tumut 1 is payable by the Electricity Commissions o f New South Wales and Victoria in the proportion of two-thirds and one-third respectively, that is, in the proportion in which they are deemed to have taken surplus electrical energy in accordance with the provisions of the First Schedule to the Act.

F inancial Statements 1958-1959.

11. Sundry creditors at 30th June, 1959 showed a considerable increase as compared with the corresponding figure for previous years and consisted mainly of amounts due to major contractors for work performed during June, 1959.

12. The Authority's financial statements, except for certain immaterial minor alterations, are in the form approved by the Treasurer under section 32b o f the Act.

13. The Authority requested the Secretary, Department of the Treasury to obtain approval to the waiving of the provisions relating to insurance in the Treasurer’s Financial Directive, to enable the Authority to insure against liability arising from accidents to visitors to the Scheme and also against accidents arising out o f the use o f its Beaver aircraft. >

14. The Department of the Treasury subsequently advised that the proposal to insure against liability arising from accidents to visitors had been approved. It was also agreed that the Authority should insure against damages at common law arising from the use o f the aircraft.

15. The Authority has a public risk insurance policy o f £100,000 and a personal accident insurance policy o f £20,000 for death with lesser cover for injury to aircraft passengers.

16. In my report on the 1956-57 and 1957-58 financial statements ί referred to the fact that the Authority's records o f the existence and location of assets included in the balance-sheets as “ Stages in operation ” and “ Stages not yet in operation ” were inadequate.

17. A similar position existed at 30th June, 1959. 1 am advised, however, that the Authority is conscious o f the shortcoming and proposes action to improve these records.

18. Reimbursements to the Government o f New South Wales for expenditure incurred on the design and construction o f the Eucumbene Dam totalled £16,086,312 to 30th June, 1959.

Yours faithfully,

(Signed) H. C. NEWMAN. Auditor-General for the Commonwealth.

1 3 8 7

P A R T II.

EIGHTH ANNUAL REPORT

OF THE

S N O W Y M O U N T A I N S H Y D R O - E L E C T R I C A U T H O R I T Y

FINANCIAL STATEMENTS FOR YEAR ENDED 30th JUNE, 1957.

(These Statements were not presented with Part Ϊ. o f the Eighth Annual Report because o f the great volume o f work involved in recasting all financial accounts back to 1949. This was done so that accounts would conform with the financial provisions of the Commonwealth-States Agreement which was signed in September, 1957.)

F .8800/59.— 5

S N O W Y M O U N T A I N S H Y D R O - E L E C T R I C A U T H O R I T Y .

Ba l a n c e Sh e e t as a t 30th J u n e , 1957.

Liabilities.

LIABILITIES ON CAPITAL ACCOUNT— Advances from the Commonwealth .. . . ..

Less Repayments . . .. . . .. ..

Accumulated Interest on Advances from the Commonwealth Less Repayments .. .. . . .. ..

PROVISIONS A N D R E SER V ES— Provision for Superannuation . . . . . .

Provision for Long Service Leave . . . . . .

O T H E R L IA B IL IT IES— Accrued Interest Charges payable to the C o m m o n w ea lth ^ ) Sundry C reditors . . . . . . . . . .

C ontractors’ and T enderers’ D eposits . . . . ..

accrued Salaries and W ages . . . . .. ..

9 2 , 0 8 3 ,2 4 9 8 1 ,6 3 4

1 0 ,1 2 2 ,5 0 6 3 4 ,3 5 4

9 2 ,0 0 1 ,6 1 5

1 0 ,0 8 8 ,1 5 2

4 5 7 ,6 8 9 1 8 7 ,0 0 0

5 0 ,1 9 6 4 3 0 ,1 4 1 1 7 ,1 8 7 1 1 3 ,2 6 5

1 0 2 ,0 8 9 ,7 6 7

6 4 4 ,6 8 9

6 1 0 ,7 8 9

PERMANENT WORKS— “ Stages ” in O peration(6)— N et C apital Expend iture(c) . . . .

Less Provision fo r D epreciation ..

Interest A ccum ulated during C onstruction Less A m ounts “ W ritten O f f ” , .

Stages " not yet in Operation!/)) Net C apital E xpenditure . . . .

Interest A ccum ulated during C onstruction

IN V E S T M E N T S (A T C O S T )— C o n tracto rs’ and T en d erers’ Deposits . . . .

O T H E R ASSETS— C onstruction P lant, Vehicles, T ools and E quip­ m ent (at cost less charges transferred to

Perm anent W orks) . .

Stores and M aterials on H and Sundry D ebtors— F or Electricity Supplied ..

O ther . . . . . .

Cash at Bank and in H and . .

A dvances^/) . . ..

Prepaym ents . . . .

A ccum ulated Interest Suspense A ccount M iscellaneous Assets .. .

1 3 ,2 2 3 ,1 8 4 8 4 .7 7 9

1 3 ,1 3 8 ,4 0 5

1 ,0 7 7 .2 1 0 3 5 ,6 3 7 — 1 ,0 4 1 ,5 7 3

7 5 ,7 6 3 .8 9 9

8 ,9 8 7 ,6 4 5

1 4 ,1 7 9 ,9 7 8

8 4 ,7 5 1 ,5 4 4 9 8 , 9 3 1 , 5 2 2

1 ,1 9 4

5 8 ,4 8 4 2 0 6 ,5 4 5

2 ,8 0 7 .4 5 7 8 0 8 ,8 8 7

2 6 5 .0 2 9 2 3 ,4 0 3 4 3 3 .0 3 9 1 4 ,8 8 5

5 7 ,6 5 1 2 ,1 7 8

£ 1 0 3 ,3 4 5 ,2 4 5

4 , 4 1 2 , 5 2 9

£ 1 0 3 , 3 4 5 , 2 4 5

N ote.— Section 25 (2) o f the Snowy Mountains Hydro-electric Power A ct 1949-1958 provides for advances by the C om m onw ealth to the A uthority to be on such term s as the T reasurer, having regard to the provisions of Clause 15 of the C om m onw ealth-Stales A greem ent, determ ines. In 1950 the T reasurer specified the term s which were to apply to advances until such time as the A uthority first com m enced to sell pow er, b u t at the date o f the preparation o f these financial statem ents had not notified any revision o f those term s. R ather than delay the presentation o f the statem ents any longer, the A uthority has had to m ake certain assum ptions as to the revised term s, but anticipates th at these assum ptions will be acceptable to the T reasurer.

{a) This item represents interest payable to the Commonwealth out of payments yet to be made to the Authority for electricity supplied. (/>) L he term “ Stage ” denotes, broadly speaking, a project for the generation of electricity. For accounting purposes, expenditure on a ' Stage ' includes, in addition to expenditure on the power station and on directly associated works, a opr "priate proportions oi the Authority s other expenditure o f a capital nature. In the case of a “ Stage” in operation, but not to the full extent o f eventual planned capacity, the book value also has regard to the production capacity reached by the “ Stage " (c) Comprises the following “ S tag e” :—Guthega Project £13,223,184.

id) Does not include unamortised advances amounting to £2,440,710 made to m ajor works Contractors on the security of construction plant and equipment acquired bv them for the execution o f their contracts. Such advances are treated as progress payments and are included in the item “ Stages not yet in Operation— Net Capital Expenditure ” ,

K. SEE, B.Ec., A.A.S.A. Business Manager.

HUDSON, K.B.E., B.Sc.fEng.), M.Insi.C.E., Commissioner.

This Balance-sheet and the attached Revenue Account of the Snowy Mountains Hydro-electric Authority have been examined and are in agreement with the books and accounts. In my opinion they show- fairly the income and expenditure of the Authority for the year ended 30th June, 1957 and the state of the finances as at that date. H. C. NEWMAN, Auditor-General for the Commonwealth.

2 5 th N o v e m b e r , 1959.

A ppendix II.

P A R T I I .

N I N T H A N N U A L R E P O R T

OI THE

S N O W Y M O U N T A I N S H Y D R O - E L E C T R I C AUTHORITY

FINANCIAL STATEMENTS FOR YEAR ENDED 30th JUNE, 1958.

(These Statements were not presented with Part I. of the Ninth Annual Report because of the great volume o f work involved in recasting all financial accounts back to 1949. This was done so that accounts would conform with the financial provisions of the Commonwealth-States Agreement which was signed in September, 1957.)

Income.

606,417 Electricity Supplied (at Net Cost o f P roduction)

£

6 9 6 .7 4 2

£ 6 9 6 ,7 4 2

N ote.— Section 25 (2) o f the Snowy M ountains Hydro-electric Power Act 1949-1958 provides for advances by the C om m onw ealth to the A uthority to be on such term s as the T reasurer, having regard to the provisions of C lause 15 o f the C om m onw ealth-S tates A greem ent, determ ines. In 1950 the T reasurer specified the term s which were to apply to advances until such tim e as the A uthority first com m enced to sell pow er, b ut at the date o f the p rep aratio n o f these financial statem ents had not notified any revision o f those term s. R ather than delay the presentation o f the statem ents any longer, the A uthority has had to m ake certain assum ptions as to the revised term s, b ut anticipates that these assum ptions will be acceptable to the T reasurer.

(a) Includes the actual cost of maintenance in the case o f the Guthega Project.

W. HUDSON. K.B.E., B.Sc.(Eng.), M.lnst.C.E.. Commissioner.