f , . 



COST OF HYDRO-ELECTRIC POWER PLANTS 703 



of the former, especially with hydraulic developments where the 

 power must be transmitted for great distances at high voltages 

 to the market center and there stepped down to a moderate dis- 

 tributing voltage and again at the point of utilization to the volt- 

 age required for the power or lighting load. It is the costs of 

 these transformations, transmission and distributions, besides the 

 general expense, which makes the cost of power to the customer 

 so much higher than the cost of actually producing the power at 

 the generating station bus-bars. 



The cost of the plant varies through the widest possible limits, 

 depending on its location as regards facilities for construction and 

 for transmission, the quantity of water and regularity of flow, 

 the total head, conditions of the labor market, both as to quality 

 and supply, etc. 



There are usually more elements of chance and more unknown 

 factors in a hydraulic development than in a steam plant, and 

 these facts should be taken into consideration and properly cared 

 for in making up the cost estimate. In many instances cost 

 figures must be obtained from similar work under similar condi- 

 tions, and the dependence to be placed on the source of informa- 

 tion must be duly considered and weighed. Each case must be 

 carefully examined and studied from the conditions bearing directly 

 upon it and the deductions made accordingly. For a very com- 

 plete classification of the construction and operating accounts the 

 reader is referred to the report by the N.E.L.A. Accounting 

 Committee for 1914. 



The total cost of a hydro-electric plant may be properly divided 

 into three parts, viz. : 



1. Development expenses. 



2. Physical costs. 



3. Overhead charges. 



Development Expenses. These include all of the preliminary 

 expenses incidental to the building up of the project and which 

 are not directly involved in the actual construction of the prop- 

 erty. They include expenditures on account of promotion, in- 

 corporation and organization, condemnation and other legal 

 expenses as well as cost of surveys, expert estimates, etc. 



The cost of securing money is also an important item in the 

 development of a property. By this is not meant the interest 



