CENTRAL ELECTRICITY REGULATORY COMMISSION
NEW DELHI
Petition No. 325/2009
Coram:
1. Dr. Pramod Deo, Chairperson 2. Shri S.Jayaraman, Member 3. Shri V.S.Verma, Member 4. Shri M.Deena Dayalan, Member
DATE OF HEARING: 11.3.2010 In the matter of
DATE OF ORDER: 26.4.2010
Determina tion of revised tra nsmission ta riff due to a dditiona l c a pita l expenditure during 1.4.2008 to 31.3.2009 for (i) 315 MVA, 400/220 kV, IC T a t Siliguri; (ii) 400 kV D/C Biha rsha riff-Muza ffa rpur line, Biha rsha riff 400 kV extension a nd Muza ffa rpur 400 kV extension; (iii) 315 MVA, 400/220 kV, IC T-I Subha shgra m sub-sta tion (New); a nd (iv) LILO of one c irc uit of 400 kV D/C Fa ra kka -Jeera t line a t Subha shgra m a nd esta blishment of 400/220 kV substa tion (New) a t Subha shgra m inc luding 1X315 MVA, IC T-II under system strengthening Sc heme for Ea stern Region (formerly pa rt of Ta la Supplementa ry Sc heme).
And in the matter of
Power G rid C orpora tion of India Limited, G urga on
Vs
..Petitioner
1. 2. 3. 4. 5.
6.
Biha r Sta te Elec tric ity Boa rd, Pa tna West Benga l Sta te Elec tric ity Boa rd, Kolka ta G rid C orpora tion of Orissa Ltd., Bhuba neswa r Da moda r Va lley C orpora tion , Kolka ta Power Depa rtment, G ovt. of Sikkim, G a ngtok Jha rkha nd Sta te Elec tric ity Boa rd, Ra nc hi
… . Respondents
The following were present:
1. Shri U.K.Tya gi, PG C IL 2. Shri Ra kesh Pra sa d, PG C IL 3. Shri M.M.Monda l, PG C IL 4. Shri R.B.Sha rma , Advoc a te, BSEB
ORDER
This petition ha s been filed for revision of tra nsmission ta riff due to a dditiona l c a pita l expenditure inc urred in respec t of tra nsmission elements
Page 1 of 28
given in the ta ble below together with their da tes of c ommerc ia l opera tion under System Strengthening Sc heme (the tra nsmission sc heme) in Ea stern Region during the period from 1.4.2008 to 31.3.2009 for Asset-I a nd Asset-II a nd 1.4.2007 to 31.3.2009 for Asset-III a nd Asset-IV, ba sed on the C entra l Elec tric ity Regula tory C ommission (Terms a nd C onditions of Ta riff) Regula tions, 2004 (hereina fter referred to a s “the 2004 regula tions:
- S.No.
- Na me of Assets
- Da te of the
c ommerc ia l opera tion
- 1.10.2006
- 1.
2.
315 MVA, 400/220 kV, IC T a t Siliguri (Asset-I)
400 kV D/C Biha rsha riff-Muza ffa rpur line, Biha rsha riff 400 1.11.2006
kV extension a nd Muza ffa rpur 400 kV extension (Asset-II)
315 MVA, 400/220 kV, IC T-I Subha shgra m sub-sta tion 1.4.2007
(New) (Asset-III)
LILO of one c irc uit of 400 kV D/C Fa ra kka -Jeera t line a t 1.3.2007 Subha shgra m a nd esta blishment of 400/220 kV substa tion (New) a t Subha shgra m inc luding 1X315 MVA, IC T-
II (Asset-IV)
3. 4.
- 2.
- The petitioner ha s a lso pra yed for reimbursement of the petition filing
fee, lic enc e fee a nd other expenditure in c onnec tion with the filing of the petition
- 3.
- The investment a pprova l for the tra nsmission sc heme wa s a c c orded by
the Boa rd of Direc tors of the petitioner c ompa ny vide letter da ted 25.2.2003 a t a n estima ted c ost of Rs. 24791 la kh, whic h inc luded IDC of Rs. 2364 la kh. Subsequently, the revised c ost estima te for the tra nsmission sc heme wa s a pproved by Boa rd of Direc tors of the petitioner c ompa ny vide its letter da ted 9.7.2007 a t a n estima ted c ost of Rs. 33618 la kh, whic h inc luded a n IDC of Rs.1837 la kh.
Page 2 of 28
- 4.
- The tra nsmission c ha rges a pproved for the Asset-I a nd Asset-II vide
order da ted 6.5.2008 in Petition No. 97/2007 were revised by the C ommission vide its order da ted 19.8.2009 in Petition No. 68/2009. Tra nsmission c ha rges for Asset-III a nd Asset-IV were a pproved vide order da ted 1.5.2008 in Petition No. 160/2007. The summa ry of the tra nsmission c ha rges a pproved by the sa id orders da ted 19.8.2009 a nd 1.5.2008 is extra c ted hereunder:
(Rs. in lakh)
- Asset-I
- Asset-II
- 2007-08
- 2008-09
- 2007-08
- 2008-09
Depreciation
- 34.59
- 35.67
- 486.43
- 496.82
917.99 771.13
0.00
63.02
202.52
Interest on Loan Return on Equity Advance against Depreciation Interest on Working Capital O & M Expenses
Total
48.82 40.35
0.00 4.73
63.26
48.28 41.61
0.00 4.88
65.80
927.68 755.15
0.00
61.41
194.50
- 191.76
- 196.25
- 2425.16
- 2451.48
(Rs. in lakh)
Asset-III
2007-08
Asset-IV
- 2007-08
- 2006-07
(Pro rata)
- 2008-09
- 2008-09
- Depreciation
- 23.29
44.66 34.09
0.00 3.21
22.86
282.27 529.42 412.69
0.00
38.84
285.13
- 282.27
- 37.33
51.18 43.53
0.00 6.03
63.26
37.33
Interest on Loan Return on Equity Advance against Depreciation Interest on Working Capital O & M Expenses Total
507.52 412.69
0.00
39.36
296.67
47.54 43.53 27.18
6.67
65.80
- 128.10
- 1548.35
- 1538.51
- 201.33
- 228.05
- 5.
- The releva nt deta ils of the c a pita l expenditure of the tra nsmission
a ssets c la imed by the petitioner a re a s under:
(Rs. in la kh)
C a pital c ost a s on the date of c ommerc ia l opera tion
C a pita l expenditure from the date of c ommerc ia l operation to 31.3.2007
64.55
Additional c a pita l expenditure during 2007-08
- C a pita l c ost
- Additional
- C a pita l c ost
- a s on 1.4.2008
- C a pita l
- a s on 1.4.2009
Expenditure during 2008-09
Asset-I Asset-II Asset-III Asset-IV
866.38
17432.95
1036.90 9657.71
59.97 761.24
0.00
990.90
18440.10 1036.90 10480.77
10.74 101.35 49.81
1001.64 18541.45 1086.71 10942.28
245.91
-
- 171.80
- 651.26
- 461.51
- 6.
- The petitioner ha s c la imed the tra nsmission c ha rges a s under:
Page 3 of 28
(Rs. in la kh)
- Asset-IV
- Asset- I
- Asset-II
- Asset- III
- 2008-09
- 2008-09
- 2007-08
- 2008-09
- 2007-08
- 2008-09
35.87 48.63 41.84
0.00
498.12 921.35 773.26
0.00
37.33 51.18 43.53
0.00
38.22 49.24 44.57 26.28
6.73
291.55 552.02 426.36
0.00
306.96 566.67 449.73
0.00
Deprec ia tion Interest on Loa n Return on Equity Adva nc e a ga inst Deprec ia tion Interest on Working C a pita l O & M Expenses
- 4.90
- 63.14
- 6.03
- 39.63
- 41.46
65.80
197.04
202.52
2458.39
63.26
201.33
- 65.80
- 285.13
- 296.67
- 1661.49
- 230.84 1594.69
Tota l
- 7.
- The deta ils submitted by the petitioner in support of its c la im for interest on
working c a pita l a re given hereunder:
(Rs. in la kh)
- Asst-IV
- Asset- I
- Asset-II
- Asset- III
- 2008-09
- 2008-09
- 2007-08 2008-09 2007-08 2008-09
- 9.46
- 189.41
- 10.37
5.27
10.99
5.48
97.06 23.76
102.88
24.72
Ma intena nc e Spa res O & M expenses Rec eiva bles Tota l Ra te of Interest Interest
5.48
32.84 47.78
16.88
409.73 616.02
10.25%
63.14
33.56 49.20
38.47 54.94
265.78 386.60
10.25%
39.63
276.92 404.52
10.25%
41.46
- 10.25%
- 12.25%
- 12.25%
- 4.90
- 6.03
- 6.73
- 8.
- BSEB in its reply da ted 22.2.2010 ha s submitted tha t the a dditiona l
c a pita l expenditure c la imed in the petition a re ma inly on a c c ount of retention/fina l pa yments a nd a c onfirma tion be ta ken from the petitioner tha t no pa rt of the c la im belongs to a ny other c a tegory not c overed by Regula tion 53 of the 2004 regula tions. The petitioner in its rejoinder ha s c onfirmed tha t the expenditure shown in the petition for the yea r 2007-08 a nd 2008-09 ha s been c la imed a s per Regula tion 53 (2) of the 2004 regula tion on a c c ount of fina l/retention pa yments. In view of the c la rific a tion of the petitioner, the objec tions of BSEB no more survive. BSEB ha s a lso objec ted to c onsidering O & M c ha rges, levies, duties, c ess or a ny other
Page 4 of 28
sta tutory ta xes etc ., reimbursement of the petition filing fee a nd lic enc e fee. These c onc erns ha ve been ta ken c a re of in the order.
CAPITAL COST
- 9.
- The deta ils submitted by the petitioner in support of its c la im for
a dditiona l c a pita l expenditure a re given hereunder:
(Rs. in la kh)
- Asset-I
- Asset-II
- Asset-III
- Asset-IV
Amount
(Rs. in la kh)
Na ture a nd deta ils of expenditure
Amount
(Rs. in la kh)
Na ture a nd deta ils of expenditure
Amount
(Rs. in la kh)
Na ture a nd deta ils of expenditure
- Amount
- Na ture a nd
- Yea r
- Yea r
- Yea r
- Yea r
- (Rs. in la kh)
- deta ils of
expenditure
- Ba la nc e/
- 2007-08
- Building,
- tra nsmission
- retention
- pa yments
- line
- a nd
sub-sta tion= Rs. la kh
651.26
2008-
09 sub-sta tion = Rs. 10.74 la kh retention /Fina l pa yments
2008- 09
Tra nsmission line=
Retention/Fi na l pa yments
- 2008-09
- sub-station
= Rs. 49.81 la kh
Ba la nc e pa yments
- 2008-09
- Building,
- Ba la nc e/
retention pa yments tra nsmission
- Rs.
- 101.35
- line
sub-sta tion= a nd la kh
Rs. la kh
461.51
- Total
- Rs. 10.74
lakh
Rs. lakh
- 101.35
- Rs. 49.81
lakh
- Total
- Rs. 1112.77
lakh
- 10.
- The petitioner ha s submitted a udited c a pita l c ost up 31.2.2009 duly
c ertified by C ha rtered Ac c ounta nt. The a dditiona l c a pita l expenditure c la imed is within the origina l sc ope of work a nd on a c c ount of retention/fina l/ba la nc e pa yments. The a dditiona l expenditure sought to be c a pita lised is a llowed under Regula tion 53 of the 2004 regula tions.
Initial spares
11. C la use (1) of the Regula tion 52 of the 2004 regula tions i n te r a l ia provides tha t,-
- “(1)
- Subjec t to prudenc e c hec k by the C ommission, the a c tua l
expenditure inc urred on c ompletion of the projec t sha ll form the ba sis for determina tion of fina l ta riff. The fina l ta riff sha ll be determined ba sed on the a dmitted c a pita l expenditure a c tua lly inc urred up to the da te of c ommerc ia l opera tion of the tra nsmission system a nd sha ll inc lude c a pita lized initia l spa res subjec t to a c eiling norm a s 1.5% of origina l projec t c ost”.
Page 5 of 28
- 12.
- The deta ils of a c tua l expenditure inc urred a nd spa res inc luded therein by the
petitioner a s per origina l sc ope of projec t up to 31.3.2009 a re a s under:-
- C a pita l Expenditures
- (Rs in lakh)
- Remarks
Pa rtic ulars
Up to the da te of c ommerc ia l opera tion
From the da te of c ommerc ia l opera tion to 31-3-2007
From 4-2007 to 31- 3-2008
- 1-
- From
- Tota l up to
c utoff da te
Initial Spa res inc luded therein
1-4-2008 to 31-3- 2009
Asset-I Asset-II
- 866.38
- 64.55
- 59.97
- 10.74
- 1001.64
- 2.18
1
23
4
Fina l tra nsmission ta riff up to the date of
- 17432.95
- 245.91
- 761.24
- 101.35
- 18541.45
- 148.43
c ommerc ial operation and a dd c a p up to
31.3.2008 allowed vide petition No.
68/2009
- Asset-III
- 1036.90
- 0.00
- 0.00
- 49.81
- 1086.71
- 0.00
- Asset-IV
- 9657.71
- 171.80
- 10942.28
- 148.46
- 651.26
- 461.51
Fina l tra nsmission ta riff up to the date of c ommerc ial operation and a dd c a p up to
31.3.2007 allowed vide petition No.
160/2007
13.
In rega rd to Asset-I, Asset-II, Asset-III a nd Asset-IV, tota l a c tua l expenditure
inc urred by the petitioner up to 31.3.2009 is Rs. 31572.08 la kh a nd c ost of spa res inc luded therein is Rs. 299.07 la kh. The tota l c ost without initia l spa res is Rs. 31273.01 la kh a nd c ost of spa res inc luded therein is Rs. 299.07 la kh whic h is found within the c eiling of 1.5% up to the c ut off da te a s per the 2004 regula tions.