Gujarat Energy Transmission Corporation Limited (GETCO)

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Gujarat Energy Transmission Corporation Limited (GETCO) GUJARAT ELECTRICITY REGULATORY COMMISSION Tariff Order Truing up for FY 2017-18 and Determination of Tariff for FY 2019-20 For Gujarat Energy Transmission Corporation Limited (GETCO) Case No. 1757 of 2018 24th April, 2019 6th Floor, GIFT ONE, Road 5C, GIFT City Gandhinagar-382355 (Gujarat), INDIA Phone: +91-79-23602000 Fax: +91-79-23602054/55 E-mail: [email protected] : Website www.gercin.org GUJARAT ELECTRICITY REGULATORY COMMISSION (GERC) GANDHINAGAR Tariff Order Truing up for FY 2017-18, and Determination of Tariff for FY 2019-20 For Gujarat Energy Transmission Corporation Limited (GETCO) Case No. 1757 of 2018 24th April, 2019 Gujarat Energy Transmission Corporation Limited Truing up for FY 2017-18 and Determination of Tariff for FY 2019-20 Contents 1 Background and Brief history ....................................................................................... 1 1.1 Background ............................................................................................................. 1 1.2 Gujarat Energy Transmission Corporation Limited (GETCO) ................................. 1 1.3 Commission’s Order for tariff of FY 2017-18 .......................................................... 2 1.4 Commission’s Order for Approval of True up of FY 2016-17 and Determination of Tariff for FY 2018-19 ............................................................................................... 2 1.5 Background of the present petition ......................................................................... 3 1.6 Registration of the Current Petition and Public Hearing Process ........................... 3 1.7 Contents of the Order ............................................................................................. 5 1.8 Approach of this Order ............................................................................................ 5 2 Summary of GETCO petition for True-up FY 2017-18 and Determination of Tariff for FY 2019-20 ................................................................................................................. 7 2.1 Introduction ............................................................................................................. 7 2.2 True up for FY 2017-18 ........................................................................................... 7 2.3 Tariff for FY 2019-20 ............................................................................................... 9 2.4 Request of GETCO ............................................................................................... 10 3 Brief outline of objections raised, response from GETCO and Commission’s view ....................................................................................................................................... 11 3.1 Stakeholders’ suggestions/ objections, Petitioner’s Response and Commission’s observations .......................................................................................................... 11 3.2 Issue wise submissions and replies ...................................................................... 11 4 Truing up for FY 2017-18 ............................................................................................. 36 4.1 Introduction ........................................................................................................... 36 4.2 Operations and Maintenance Expenses for FY 2017-18 ...................................... 36 4.3 Capital Expenditure and Capitalization for FY 2017-18 ........................................ 41 4.4 Depreciation for FY 2017-18 ................................................................................. 46 4.5 Interest and Finance Charges for FY 2017-18 ...................................................... 50 4.6 Interest on Working Capital for FY 2017-18 .......................................................... 53 4.7 Return on Equity (RoE) for FY 2017-18 ................................................................ 55 4.8 Exceptional Items .................................................................................................. 57 4.9 Contribution to Contingency Reserve for FY 2017-18 .......................................... 59 Gujarat Electricity Regulatory Commission Page v April 2019 Gujarat Energy Transmission Corporation Limited Truing up for FY 2017-18 and Determination of Tariff for FY 2019-20 4.10 Income Tax for FY 2017-18 .................................................................................. 59 4.11 Capitalisation of Expenses for FY 2017-18 ........................................................... 63 4.12 Non-Tariff Income for FY 2017-18 ........................................................................ 64 4.13 Incentive for Target availability for FY 2017-18 .................................................... 66 4.14 Gains / (Losses) under “Truing up” ....................................................................... 67 4.15 Sharing of Gains / (Losses) for FY 2017-18 ......................................................... 70 5 Determination of Transmission Charges for FY 2019-20 ......................................... 72 5.1 Introduction ........................................................................................................... 72 5.2 Determination of Transmission Tariff for FY 2019-20 ........................................... 72 5.3 Reactive Energy Charges ..................................................................................... 75 6 Compliance of Directives and New Directives .......................................................... 76 6.1 Compliance of Directives issued by the Commission ........................................... 76 6.2 Compliance of Directives issued vide Tariff Order dated 31st March, 2018 .......... 76 6.3 Compliance of Directives issued vide Tariff Order dated 31st March, 2017 .......... 77 6.4 Compliance of Directives issued vide Tariff Orders dated 31st March, 2016 and 31st March, 2015 ................................................................................................... 92 6.5 New Directive: ....................................................................................................... 93 COMMISSION’S ORDER .............................................................................................. 94 Annexure A: Report on Transmission Planning ............................................................. 95 Annexure B: Important EHV Transmission Element Loading: Peak & Average loading ............................................................................................................................ 119 Annexure C: Transmission lines running overload condition for more than 2 times in a calendar month ................................................................................................... 123 Annexure D: MVA Capacity & Maximum Loading of 66 KV Substations commercialized since FY 2016-17 till July 2018 ........................................................................... 124 Annexure E : Area wise Transmission Constraints ..................................................... 133 Gujarat Electricity Regulatory Commission Page vi April 2019 Gujarat Energy Transmission Corporation Limited Truing up for FY 2017-18 and Determination of Tariff for FY 2019-20 List of Tables Table 1.1:List of Newspapers ................................................................................................................. 4 Table 1.2: List of Newspapers ................................................................................................................ 4 Table 1.3: List of Stakeholders ............................................................................................................... 5 Table 2.1: True up for FY 2017-18 ......................................................................................................... 7 Table 2.2: Summary of Controllable & Uncontrollable Factors ............................................................... 8 Table 2.3: Gap for 2017-18 .................................................................................................................... 9 Table 2.4: ARR for 2019-20 .................................................................................................................... 9 Table 2.5: Transmission Tariff for FY 2019-20 ..................................................................................... 10 Table 4.1 : O&M Expenses (Normative / Actuals) as submitted by GETCO for 2017-18 ..................... 36 Table 4.2: O&M Expenses (as per audited accounts) for 2017-18 ....................................................... 37 Table 4.3: Gain/ (Loss) claimed from O&M Expenses ......................................................................... 38 Table 4.4: O&M Expenses Normative in Truing up for 2017-18 ........................................................... 39 Table 4.5: O&M Expenses Approved in Truing up for 2017-18 ............................................................ 40 Table 4.6: O&M Expenses and Gain/(Loss) Approved in Truing up for 2017-18 ................................. 41 Table 4.7: Actual Funding of CAPEX ................................................................................................... 42 Table 4.8: Capital Expenditure and Capitalisation approved in the Truing up for 2017-18 .................. 46 Table 4.9: Depreciation claimed for 2017-18 ........................................................................................ 46
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