ENG-1983 — Page 203

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LAND, PUBLIC WORKS AND UTILITIES

which CLP would take over from Cheung Chau Electric Company the supply of electricity for Cheung Chau by January 1, 1984.

The two supply companies are investor-owned and do not operate under franchise. The government monitors the financial arrangements of the companies through the published Schemes of Control. Under these schemes, the long-term financing plans of the companies and any proposed tariff charges require the approval of the Governor-in-Council. During the year, the government appointed independent consultants to assess the technical aspects of the companies' generation of electricity. The consultants' first report indicated that the generation expansion plans of both companies are based on good engineering practices and sound economic judgement, and are sufficiently flexible to allow for changes without the risk of over-provision.

Generation of electricity is carried out by CLP and two associated companies, Peninsula Electric Power Company Limited (PEPCO) and Kowloon Electricity Supply Company Limited (KESCO). The combined capacity of the three companies at the end of 1983 was 3 356 MW. Both PEPCO and KESCO are financed 60 per cent by Esso and 40 per cent by CLP.

PEPCO owns the power stations at Tsing Yi 'A' (762 MW), Tsing Yi ‘B' (800 MW) and Hok Un 'C' (240 MW). KESCO owns 504 MW of gas turbine capacity and is constructing the Castle Peak 'A' power station. The first dual coal or oil-fired 350 MW unit at Castle Peak 'A' was commissioned during 1982 and the second in the spring of 1983; the remaining two 350 MW units at this station will be commissioned in 1984 and 1985. Operation of the plants owned by PEPCO and KESCO is in the hands of CLP, which also has its own stations - Hok Un 'A' and ‘B' (total 350 MW).

Castle Peak 'B' station, adjacent to the 'A' station, will have four 660 MW coal-fired units, scheduled to be commissioned between 1986 and 1990. Castle Peak Power Company Limited (CAPCO), under the same financial arrangements as those adopted for PEPCO and KESCO, has been incorporated to own the station. The Castle Peak 'A' and 'B' power stations, with an ultimate capacity of over 4 000 MW, will be the largest power station complex in Southeast Asia. The use of coal as the primary fuel for both stations is expected to reduce operating costs and will be a direct benefit to consumers. Transmission is carried out at 400 kV, 132 kV and 66 kV, while distribution is effected mainly at 33 kV, 11 kV and 346 volts. The supply is 50 hertz alternating current, normally at 200 volts single-phase or 346 volts three-phase. For bulk consumers, supply is available at 33 kV and 11 kV.

Work continued during the year on the staged development of an extra high voltage transmission system to transmit power from the Castle Peak power stations to the various load centres. When completed in 1986, the network, at 400 kV, will comprise 87 kilometres of double-circuit overhead line encircling the New Territories, 14 kilometres of cables and six extra high voltage substations. At present, two substations at Tsz Wan Shan and Tai Wan are energised, 38 kilometres of overhead line is operating at 400 kV, and 12 kilometres at 132 kV. The 14 kilometres of cables are on load at 400 kV. Construction is now complete on the 20 kilometres of overhead line from Castle Peak to Yuen Long and work is in progress on the Yuen Long to Tai Po section. Site formation works have commenced at the Tai Po, Yuen Long and Lei Muk Shue future 400 kV substation sites.

HEC's Ap Lei Chau Power Station, which started commercial operation in 1968, has an installed capacity of 935 MW consisting of two 60 MW and six 125 MW oil-fired generating units together with two gas turbines rated at a total capacity of 65 MW.

In 1978 the company was granted a site on Lamma Island for a new dual coal or oil-fired power station. The first two 250 MW units were commissioned during 1982 and a third 250