COST OF HYDRO-ELECTRIC POWER PLANTS 705 



Hydraulic construction : 



Dam, intake, forebay, water conductors, etc. 



Generating station: 



Building, hydraulic and electric equipments, etc. 



Transmission lines. 



Substations. 



Distributing system. 



Auxiliary steam station. 



Overhead Charges. Besides the above expenses for the de- 

 velopment and actual construction of the physical plant, there 

 are others which must be considered as a part of the total cost of 

 any complete development. These are termed overhead charges 

 and are as follows : 



Engineering and superintendence. 



Organization. 



Legal expenses. 



Taxes and insurance. 



Interest during construction. 



Working capital. 



Engineering and superintendence should cover all costs of 

 architecture and engineering. This includes all designs and 

 drafting, plans and supervision of construction, as well as all 

 other items which properly come under this department. They 

 vary from 3 to 5 per cent of the construction cost. 



Organization expenses should cover the cost of organization 

 and administration for construction, including general office 

 expenses. They generally amount to from 3 to 5 per cent. 



Legal expenses incurred during the construction period should 

 be distinguished from those included under development expenses. 

 They should cover only such legal work which may be necessary 

 in obtaining such rights as may be needed to carry out the con- 

 struction. 



Taxes must be paid on the property from the time of purchase, 

 usually months or even years before the development is com- 

 pleted. Likewise insurance must be paid and should include 

 not only fire insurance, but casualty insurance, covering both 

 employees and public liability. The estimate of these expenses 

 can be accurately made from prevailing rates. Taxes amount to 

 about one-half of 1 per cent and insurance about the same amount. 

 Interest during construction accruing on the idle capital, rep- 



