In comparatively few systems is the available water-power sufficient to carry the entire load at all hours of the day, and during all months of the year, so that the question of how much fuel can be saved is an uncertain one for many plants. Again, the development of water-power often involves a large investment, and may bring a burden of fixed charges greater than the value of the fuel saved.

In spite of these conflicting opinions and factors, the application of water-power in electrical systems is now going on faster than ever before. If a saving of fuel, measured by the available flow of water during those hours when it can be devoted directly to electrical supply, were its only advantage, the number of cases in which this power could be utilized at a profit would be relatively small. If, on the other hand, all of the water that passes down a stream could be made to do electrical work, and if the utilization of this water had other advantages nearly or quite as great as the reduction of expense for coal, then many water-powers would await only development to bring profit to their owners.

No part of the problem is more uncertain than the first cost and subsequent fixed charges connected with the development of water-power. To bring out the real conditions, the detailed facts as to one or more plants may be of greater value than mere general statements covering a wide range of cases.

On a certain small river the entire water privilege at a point where a fall of fourteen feet could be made available was obtained several years ago. At this point a substantial stone and concrete dam was built, and also a stone and brick power-house with concrete floor and steel truss roof. In this power-house were installed electric generators of 800 kilowatts total capacity, direct-connected to horizontal turbine wheels. The entire cost of the real estate necessary to secure the water-power privilege plus the cost of all the improvements was about $130,000. More than enough water-power to drive the 800-kilowatt generators at full load was estimated to be available, except at times of exceptionally low water. At this plant the investment for the water-power site, development, and complete equipment was thus $162 per kilowatt capacity of generators installed.

Allowing 65 days of low water, these generators of 800 kilowatts capacity may be operated 300 days per year. If the running time averages ten hours daily at full load, the energy delivered per year is 2,400,000 kilowatt hours. Ten per cent of the total investment should be ample to cover interest and depreciation charges, and this amounts to $13,000 yearly. It follows that the items of interest and depreciation on the original investment represent a charge of 0.54 cent per kilowatt hour on the assumed energy output at this plant. This energy is transmitted a few miles and used in the electrical supply system of a large city.

On another river the entire water privilege was secured about four years ago at a point where a fall of more than 20 feet between ledges of rock could be obtained and more than 2,000 horse-power could be developed. At this point a masonry dam and brick power-house were built, and horizontal turbine wheels were installed, direct-connected to electric generators of 1,500 kilowatts total capacity. The entire cost of real estate, water rights, dam, building, and equipment in this case was about $250,000.

Assuming, as before, that generators may be operated at full capacity for 10 hours per day during 300 days per year, the energy delivered by this plant amounts to 4,500,000 kilowatt hours yearly. The allowance of 10 per cent on the entire investment for interest and depreciation is represented by $25,000 yearly in this case, or 0.56 cent per kilowatt hour of probable output. Energy from this plant is transmitted and used in a large system of electrical supply.

If, through lack of water or inability to store water or energy at times when it is not wanted, generators cannot be operated at full capacity during the average number of hours assumed above, the item of interest and depreciation per unit of delivered energy must be higher than that computed. With the possible figure for this item at less than six-tenths of a cent per kilowatt hour, there is opportunity for some increase before it becomes prohibitive. At the plant last named the entire investment amounted to $166 per kilowatt capacity of connected generators, compared with $162 in the former case, and these figures may be taken as fairly representative for the development of water-power in a first-class manner on small rivers, under favorable conditions. In both of these instances the power-houses are quite close to the dams. If long canals or pipe lines must be built to convey the water, the expense of development may be greatly increased.

One advantage of water- over steam-power is the smaller cost of the building with the former for a given capacity of plant. The building for direct-connected electric generators, driven by water-wheels, is relatively small and simple. Space for fuel, boilers, economizers, feed-water heaters, condensers, steam piping, and pumps is not required where water-power is used. No chimney or apparatus for mechanical draught is needed.