For

SOUTHERN REGIONAL POWER COMMITTEE BENGALURU Minutes of the 42ndMeeting of Commercial Sub-Committee of SRPC held at Bengaluru on 22.10.2019.

1. Introduction

1.1 The 42nd Meeting of the Commercial Sub-Committee of SRPC was held on 22nd October 2019 in the Conference Hall of SRPC. There was no representation from APTRANSCO and TSTRANSCO. The list of participants is at ANNEXURE-I.

1.2 Member Secretary, SRPC welcomed all the members and participants to the 42ndmeeting of Commercial Sub-Committee. He mentioned the following: i. CERC had invited comments from the stakeholders on the provisions of Draft Central Electricity Regulatory Commission (Sharing of Revenue Derived from Utilization of Transmission Assets for Other business) Regulations, 2019. The constituents may furnish their comment to CERC. ii. CERC had extended the Security Constrained Economic Despatch (SCED) pilot for the period up to the March 2020. The revised procedure for pilot on SCED for Inter State Generating Stations came into effect from 1st October 2019. iii. SRPC Secretariat had submitted suggestion on the proposed framework for Real- Time Market for Electricity to CERC. Then same is put up for information of the Members. iv. CEA had published “Marketing Monitoring Report” for the month of April 2019 and the same is available on CEA web site. v. In the Special meeting held on 29th September 2019, possible solutions for Reserve Shut Down issues were finalized and the same would be furnished to CERC for consideration. He observed that lot of correspondence between NPCIL/KKNPP and beneficiaries with a copy to MS.SRPC were being taking place on the issue of long pending payments. SRPC had taken up the issues with the utilities requesting them to expedite the payments. NLCIL/ NTPL also reported about the outstanding payments. He requested all the Utilities to clear the pending dues without further delay.

1.3 Superintending Engineer (commercial), SRPC taken up the agenda for discussion.

2. Confirmation of the Minutes of 41stMeeting of Commercial Sub- Committee Minutes of the 41st Meeting of the Commercial Sub-Committee of SRPC held on 20th June 2019 was circulated vide letter No. SRPC/SE-I/41 CC/2019/4510-48 dated 17th July 2019. The Minutes of the 41st meeting were confirmed. 3. Audit of SR Deviation& Reactive Energy Charge Pool Accounts In line with Para 15 of Annexure-I to the CERC (IEGC) Regulations, 2010 (Complementary Commercial Mechanism), RLDC shall place the complete statement of the Regional UI account and the Regional Reactive Energy pool account and congestion charges account before RPC’s Commercial Committee Meeting on a quarterly basis, for audit. SRLDC vide letter SRLDC/MO/CCM-42/dated26thSeptember 2019 (ANNEXURE-II) had furnished details of payment and disbursement of weekly Deviation and Reactive Energy charges for the period from 22.04.2019 to 25.08.2019.

The Accounts were audited and approved. 4. Items Proposed by SRLDC SRLDC vide letter dated SRLDC/MO/CCM-42/dated26thSeptember 2019 (refer ANNEXURE-II) had proposed the following items for discussion: (i). Reconciliation of DSM, RRAS, Reactive and Congestion charges. (ii). Status of outstanding charges to the pool accounts. (iii). Reconciliation of Short Term Open Access (STOA) disbursements. Deliberation in the Meeting: 4..1 Reconciliation of DSM, RRAS, Reactive and Congestion charges. SRLDC informed that Regional Entity-wise details of Deviation, RRAS, Reactive and Congestion pool payment/receipt had been sent to the pool members on a monthly basis for the period from April 2019 to July 2019 for reconciliation. Status of Receipt of signed reconciliation statement had enclosed at Annexure IV. All other pool members who were yet to reconcile were requested to verify the statements and send a signed copy to SRLDC for records, enabling them to comply with audit observations. 4.2 Status of outstanding charges to the pool accounts SRLDC informed that the outstanding payments to DSM pool account as on 20.09.2019 on account of interest payable due to delayed weekly charges as follows:. Sl. No. Utility Interest payable (Rs.) 1 ACME BHIWADI NPKUNTA 912 2 ACME HISSAR NPKUNTA 2503 3 ACME KARNAL NPKUNTA 1360 4 AP 5493 5 AZURE NPKUNTA 3159 6 COASTAL ENERGEN 97930 7 FRV II NPKUNTA 11021 8 FRV NPKUNTA 21461 9 LANCO ST-III 1157 10 MEL PH2 132232 11 MEL 449 12 MYTRAH TUTICORIN 24288 13 NTPL 208 14 SEL 24941 15 TELANGANA 5533 TOTAL 332647 Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 2/20

SRLDC furnished the Outstanding Weekly payments to DSM pool account as on 20.09.19 as below: Due to be paid to S.NO. Regional Entity pool (Rs.) 1 LANCO ST-II 3360319 2 ACME HISSAR NPKUNTA 212470 3 ACME KARNAL NPKUNTA 375042 4 AZURE NPKUNTA 1396691 5 COASTAL ENERGEN 3573214 6 FRV II NPKUNTA 2279110 7 FRV NPKUNTA 2007905 8 MEL 14708638 9 MEL PH2 7465157 10 SEL 2740431 TOTAL 38118977

SRLDC stated that if any regional entity fails to make payment of charges for deviation including additional charges for deviation by the time specified in the DSM Regulations during the current financial year, it shall be required to open a letter of credit (LC) equal to 110% of weekly outstanding liability in favour of respective Regional Load Despatch Centre within a fortnight from the due date of payment. None of the above entities had complied with the provision of DSM Regulation. The Commercial Sub-Committee suggested that SRLDC may take up with the above mentioned entities for compliance of the provision of DSM Regulation within some reasonable time, failing which SRLDC may take up with CERC. 4.3 Reconciliation of Short Term Open Access (STOA) disbursements SRLDC presented the details of disbursements of CTU, STU & SLDC charges of STOA for the period from May 2019 to August 2019 (refer Annexure-VII of SRLDC letter). The statements for monthly reconciliation are available in SRLDC website in the link http://srldc.org/STUReconciliation.aspx.

SRLDC stated that the disbursements made for which no discrepancy was pointed out were treated as reconciled. However, the entities needed to submit the signed copies of the statements for record and statutory audits.

5. Ananthapuramu (NP Kunta) Ultra Mega Solar Park (a) SEM issue The following had noted in the 36th Meeting of SRPC:  In the Meetings of Commercial Sub-Committee, it was notedthat SEM readings of all ACME SPDs during night hours were mostly zero.  The Commercial Sub-Committee had suggested to swap the non-recording SEMs with the SEMs recording drawal during night hours, so as to ascertain the reason of malfunction. APSPCL and ACME SPDs were requested to mitigate the problem so that precise energy accounting of all SPDs of the park could be carried out.

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 The discrepancy of the SEM persists and hence the average drawals are being computed to assign drawal values to these SPDs to assess deviation. Subsequently, APSPCL vide letter dated 24.06.2019 (ANNEXURE-III) had requested PGCIL for certification of SEM meters connected at 33 kV feeder and standby meters at 220/33 kV Pooling Sub-Station at NP Kunta Site of Ananthapruamu Ultra Mega Solar Park (1500 MW). The SEM readings of all ACME SPDs and AZURE for 1stSeptember 2019 are furnished at ANNEXURE-IV. The SEM values continued to have the same discrepancy. Hence, to assess deviation, the drawal by these SPDs were computed based on the average drawal. Deliberation in the meeting: a) It was noted that PGCIL vide letter dated 21.10.2019 (ANNEXURE-V) had intimated that SRTS-I do not have any infrastructure/facility for calibration and certification of SEMs. Hence, APSPCL requirement of certification of 0.2 class SEMs may not be possible by POWERGRID. b) APSPCL informed that SEM meters of AZURE started recording during night time after increasing the lighting load. Similar action in other SPDs also would be carried out to address the issue. c) It was observed that the CT ratio adopted needed to be verified. Smaller CT ratio may solve the non-recording issue. The Commercial Sub- Committee advised APSPCL to verify the CT ratio. APSPCL/SPDs may avail the services of Meter testing Laboratories. d) After deliberation, it was agreed that APSPCL would verify the CT ratio of the SEMs with night recording issues / the meters may be tested using NABL accredited mobile laboratory or at any accredited laboratory within one month (before 22nd November 2019). (b) Metering Scheme APSPCL vide e-mail dated 26th September, 201 had requested to approve the Metering Scheme for 1000 MW at NP Kunta Site of Ananthapuramu Ultra Mega Solar Park (1500 MW). SRLDC vide e-mail dated 19.10.2019 had informed that the proposed metering philosophy for SB Energy SPD (250 MW) at NP Kunta solar Park. Accounting of injection for SB Energy would be measured at 220 kV PSS-4 lines 1 &2 at NP Kunta (PGCIL) end. Commercial Sub- Committee approved the Metering Scheme (ANNEXURE-VI) for 1000 MW at NP Kunta. APSPCL/ SPDs shall furnish the details of the installed SEMs in the specified format to SRLDC. 6. Transmission Charges Pertaining to Kudgi STPS The following had been noted in the 41stMeeting of Commercial Sub-Committee held on 20th June 2019: (i). PGCIL had informed that as per the RTAs issued by SRPC during Aug’17 to

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Sep’18, bills for an amount of Rs 363 Cr. were raised on NTPC towards the LTA charges for the un-commissioned generation, however, NTPC did not make the payment and hence there was shortfall of Rs 363Crs in recovery by the ISTS Licensees from the PoC Pool. (ii). PGCIL had stated that in a petition filed by NTPC against the billing, CERC directed that the LTA be operationalized from the COD of Associated Transmission System and the proportionate YTC of the ATS be collected from NTPC till commissioning of their pending generation. SRPC issued the revised RTA for NTPC revising the billing amount to Rs 304.10 Cr. On relevant billing by CTU, the amount has been paid by NTPC. (iii). PGCIL had further stated that there is still a shortfall of Rs 59 Cr. in recovery in the PoC Pool, which needs to be collected from the other DICs in the PoC Pool through adjustment in the POC bills upon revision of PoC slab rates / SR-RTA for the period August 2016 to September 2018. Applicable credit notes for revision of NTPC billing as per CERC order were accounted during July 2018- September 2018 Bill-3 and it is to mention that refund to the DICs doesn’t arise as there is still an under recovery of Rs 59 Crs which needs to be collected upon revision of PoC rates by NLDC/CERC. As desired, the YTC details of ATS for Kudgi evacuation and LTA details have been furnished to NLDC with copy to SRPC vide letter dated 18.02.2019. (iv). PGCIL had requested KSEBL to immediately release the withheld amounts of Rs 3.87 Crs in respect of Kudgi Transmission limited charges disallowed in BILL-3 to avoid further applicability of late payment surcharge. (v). The Commercial Sub- Committee had requested POSOCO to expedite the revision of PoC slab rates as noted in the 35th Meeting of SRPC. (vi). All the constituents had expressed concern for the delay in compliance of the part of the CERC order. SRPC vide letter dated 27th June 2019 had requested POSOCO to kindly examine and furnish the necessary details to facilitate SRPC Secretariat to proceed further. In reply to this letter POSOCO vide letter dated 28th June 2019 had informed that Implementing Agency had carried out the PoC rate re-computations and submitted the results to CERC. The revised PoC rates order is pending with CERC. The following had noted in the 36th Meeting of SRPC held on 12th July 2019:  The details of billing period as per the issued RTA in respect of above to the beneficiaries/NTPC. Also billing period details to be carried out as per CERC Order.  The revised RTA pertaining for the applicable period would be issued after CERC Order on revised PoC Rates. Deliberation In the Meeting: It was noted that CERC had issued revised PoC Rates vide Orders dated 10.10.2019. SRPC Secretariat informed that they were in the process of revision RTA/RTDA from July 2017 to September 2019 as per the revised PoC rates notified by CERC.

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KSEBL informed that an amount of Rs.3.87 crores disallowed in the bill 3 of PGCIL had not released so far. The PoC slab rates were revised but not starting from August 2016. Revision in RTA was required for the period August 2016 to June 2017 also. TANGEDCO stated that the Billing of transmission charges from August 2016 to June 2017 should also be billed on the generator bilaterally, for which CTU may take necessary action. PGCIL informed that the charges for the period August 2016 to June 2017 would be taken care in the BILL-3 after the receipt of the revised RTA/RTDA as per CERC order. 7. Inclusion of all Bilateral Billing (including RE Generators) in RTA. In the 41stMeeting of Commercial Sub-Committee, PGCIL had stated that the exemption for transmission charges as per MoP Order dated 13.02.2018 is applicable after commissioning of RE generation and fulfilment of other conditions. Considering the commissioning of RE generation in line with MoP Order, bilateral bills on the delayed RE generators are being raised within Jun 2019. However, it may be mentioned that Amendment 6 to CERC Sharing Regulations stipulates that the exemption of transmission charges is applicable after the COD of the generation and the ambiguity between the commissioning / COD as per MOP Order / Regulations is taken up with CERC for clarification. PGCIL had informed that the details of bilateral billing (upstream and downstream) would be furnished from June 2019 onwards (including the period from the date of operationalization of LTA). SRPC vide letter dated 04th July 2019 had requested NLDC and PGCIL to communicate all bilateral billings (including RE) for inclusion in RTA to comply with CERC orders. The following had noted in the 36th Meeting of SRPC:  Complete bilateral billing details including RE were yet to be furnished by CTU.  TCC had suggested CTU to furnish complete details of bilateral billing (including RE) for inclusion in RTA in compliance to CERC Order. Deliberation in the meeting: TANGEDCO stated that CTU may bring on record the details of bilateral billing details of other generators including RE generators who have not commissioned their projects after CoD of associated transmission projects. Further, TANGEDCO urged the forum to direct the CTU/SPPDs to share the SPD wise/generator wise details of CoD / PPA tie-up with beneficiaries so as to ascertain the LTA waiver granted to such RE generators. TANGEDCO further insisted CTU to collect the transmission charges payable by BHAVINI (KPFBR) as per the direction of APTEL and refund the same to beneficiaries. SR-II, PGCIL informed that all the details were to be obtained from CTU. Commercial Sub-Committee suggested PGCIL to collect all the details SPD wise/generator wise details of CoD / PPA tie-up with beneficiaries etc. for inclusion in RTA. SR-II, PGCIL agreed to furnish the details as and when received from CTU.

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8. Implementation of Automatic Meter Reading (AMR) in Southern Region /Technical Specification of Special Energy Meters Need for AMR scheme had been felt keeping in view high RE ingress, amendments in DSM Regulations, SCADA related issues etc. In the 24th Meeting of SRPC held on 15th March 2014, SRPC had approved implementation of the AMR scheme by POWERGRID The following had noted in the 35thMeeting of SRPC held on 02nd February 2019:  PGCIL had stated that in NR 1,400 SEMs are integrated with AMR facility also. There had been some integration issues and reliability was not as good as anticipated. In ER nearly all SEMs had been provided with AMR facility but some communication issues are being faced. Keeping in view, CERC Regulation on Renewable Integration, CERC/POSOCO has shown interest on 5 minute block recording SEMs. A pilot project has been given to PGCIL wherein 126 SEMs are to be installed. The Order has been placed on 09.01.2019 and SEMs would be installed in 3 months. In a development in WR, need for 5 min SEM with AMR facility had been brought out. Final specifications had been prepared and they had gone ahead for tendering and in one month Orders will be placed for 1,800 meters.  After deliberations, it had been agreed that PGCIL would furnish the technical specifications finalized in WR. These would be circulated to all the constituents and keeping the SAMAST guidelines and other requirements (AMR, 5 to 15 minutes online configurable, SCADA integration possibility etc), Committee of Stake holders would finalize the specification for SEMs in SR. The same would be passed on to POWERGRID for implementation in SR. SRPC would be requested to approve the Committee Recommendations as and when they are finalized. STUs would take appropriate action for their schemes separately, without linking it with this project.  SRPC had approved the way forward in this regard as had been proposed by TCC. In the 41st Meeting of Commercial Sub-Committee, PGCIL had agreed to come out on the scope of the work (including SEMs on all interstate feeders to be owned by respective transmission licensees or otherwise) and on the sharing principle for the complete AMR scheme. The following had noted in the 36th Meeting of SRPC:  PGCIL informed that agreement has been entered in Western Region for on time payment settlement and for keeping some spare SEMs. The same is proposed for Southern Region also. The charges would be apportioned among the entities based on the number of SEMs. Entities would have the option to pay in advance or later based on the invoice.  It was agreed that PGCIL would take up the implementation of SEMs and raise invoice on utilities. PGCIL would inform the stakeholders about the cost implications (estimated cost and after implementation the final cost). Deliberation in the meeting:  PGCIL informed that the cost implications would be furnished within two weeks.  The utilities requested PGCIL to expedite implementation of AMR in SR.

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9. Scheduling and Despatch of Pavagada Solar Power Park In line with the Regulation 6.4.2(b) of CERC (Indian Electricity Grid Code) Regulations, Procedure for implementation of the frame work for RE Generating Stations and other relevant Regulations, the scheduling of Pavagada Solar Park by SRLDC was discussed in the following Meetings: Meeting &Date Deliberation /Decision Special Meeting convened by SRLDC Agreed to discuss further in the next meeting. on 28.08.2018. Special Meeting convened by SRLDC Agreed to discuss further with SPDs. on 03.09.2018. Special Meeting convened by SRPC It was decided that scheduling and dispatch of on 04.10.2018. Solar Power Park by SRLDC wef 15.12.2018. Review Meeting convened by SRPC It was decided that scheduling and dispatch of on 02.11.2018. Solar Power Park by SRLDC wef 15.12.2018. 147th to 159thMeetings of OCC Followed up 40thMeeting of Commercial Sub- KSPDCL assured that works would be Committee held on 25.02.2019 completed by May 2019. 41stMeeting of Commercial Sub- KSPDCL had assured that works would be Committee held on 20.06.2019 completed within three months (Sep. 2019) 35th& 36th Meetings of SRPC Reviewed the status Special Meeting convened by SRPC The following had agreed: on 19.09.2019. a) The installation of required SEMs would be completed by 29th December 2019 by all the SPDs. b) KSPDCL would complete the formalities to become a registered User of SRLDC within one month. c) SCADA data at inverter level would be made available by 31st January 2020 for all SPDs. d) Schedule the SPDs connected to substations 3,4&5 by SRLDC w.e.f. 04.11.2019. Mock exercise from 07.10.2019. e) A team comprising KSPDCL, KAR SLDC, PGCIL (SR-II), SRLDC and SRPC would visit Pavagada Solar Park on 27th September 2019 to assess the readiness of SEM/SCADA facilities at substations 3,4& 5. f) Review meeting on 16.10.2019. Visit/Meeting on 27.09.2019 to assess Observations: the readiness of Substations 3,4,&5  220kV Pavagada PGCIL S/S: The main meter is available on all the 8 lines, check meter is not available, standby meter on the other end viz KSPDCL 220/33kV or 220/66kV S/S is not in compliance with SRLDC requirements.  33kV line from 220/33 KSPDCL to SPD: Main, check and standby meters of all SPDs (except Tata standby meter to be confirmed) Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 8/20

of Substation #3 &4 is as per SRLDC requirement.  66 kV line from 220/66kV KSPDCL to SPD: The plant and necessary meters are under commissioning stage and expected to be placed with necessary meters as per SRLDC requirements. Action by KSPDCL&SPDs for Mock Scheduling: a) Registration of SPD’s as a User with SRLDC as decided in the Special Meeting. b) KSPDCL to register as a User of SRLDC within a month as agreed in the Special Meeting. c) KSPDCL to provide entire Solar Park layout diagram showing all SPDs as well as line and substations with metering locations along with details of meter no’s and line data covering 220kV, 33kV and 66kV. d) SPDs to download the data from all the SEMs and send to SRLDC by 30.09.2019 for confirmation by SRLDC. In addition SPDs shall also share the details of the SEMs in the specified format. e) All SPDs to share the details of main & alternate nodal officer for scheduling and accounting. f) The meter requirement for KSPDCL on 220kV lines viz 16 SEM meters (8 check meters and 8 standby meters) to be installed and commissioned by 15.10.19. PGCIL may supply 16 SEM meters to KSPDCL on payment basis after necessary formalities. g) SPDs/KSPDCL to ensure time drift within specified limits. h) SPDs/KSPDCL to ensure the data is sent by every Monday evening. i) SPDs shall punch the block-wise data viz AVC, forecast, schedule w.e.f. 07.10.2019 in SRLDC scheduling programme. j) SPDs shall furnish the actual (SEM data) for the mock account preparation by Monday evening every week for the previous week. k) Metering Philosophy to be discussed in the review meeting to be held on 16.10.19 and the same would be finalized in the

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upcoming Commercial Sub-Committee meeting. Review Meeting held on 16.10.2019. a) M/s KREDL had informed that they are 50 MW SPD with connectivity at SS 1 (10 MW),SS2 (10 MW), SS 3 (15 MW) &SS 4 (15 MW). b) KSPDCL had submitted a formal letter requesting SRLDC to waive registration charges. The same would put up to NLDC for consideration. c) It was noted that there needed to be a uniform treatment of SPPD by RLDCs on national basis and not on case to case basis. In the case of NP Kunta, the SPPD has been charged registration feesas transmission licensee etc. d) The SPDs/KSPDCL had agreed to furnish the documents in respect of CoD in due course wherever due. e) All the SPDs had agreed to install the required SEMs by 29th December 2019. f) KSPDCL had agreed to submit the entire Solar Park Metering scheme to SRPC/SRLDC for ratification by Commercial Sub-Committee of SRPC. g) KSPDCL had informed that SCADA data at inverter level would be made available by 31st January 2020 for all SPDs. h) All SPDs agreed to furnish the details of Nodal Officers within one week time. i) It was agreed that substation 3, 4 & 5 would be put on actual scheduling and accounting from 04.11.2019. j) Infirm power injection would not be accounted by SRPC. Infirm power drawal would be accounted as per provisions of DSM Regulations.

KSPDCL vide letter dated 18.10.2019 (ANNEXURE-VII) had submitted the Pavagada Solar Park (2050 MW) metering scheme for ratification by Commercial Sub-Committee of SRPC. Deliberation In the meeting:  It was noted that SPDs connected to KSPDCL substation 3 & 4 would be put on actual scheduling & accounting from 04.11.2019.  Infirm power injection would not be accounted by SRPC. Infirm power drawal would be accounted as per the provisions of DSM Regulations.

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 Commercial Sub- Committee approved the metering scheme of the entire Pavagada Solar Park. The metering scheme is at ANNEXURE-VIII. A sample accounting of injection for SPDs is given at ANNEXURE-IX.  KSPDCL/ SPDs shall furnish the details of the SEMs installed in the specified format to SRLDC. KSPDCL may ensure furnishing of the details of SEMs to SRLDC before commissioning of the SPDs.. 10. A CERC, Deviation Settlement Mechanism and related matters (5th Amendment), Regulations, 2019 CERC, Deviation Settlement Mechanism and related matters (5th Amendment), Regulations, 2019 were notified on 28.05.2019 and implemented w.e.f 03.06.2019. It is mentioned under Clause (10) of Regulation 7 of the Principal Regulations that: “……. Provided also that payment of additional charge for failure to adhere to sign change requirement as specified under clauses (a) & (b) of this regulation shall not be applicable to: ….. ….. . Forced outage of a generating station in case of collective transactions on Power Exchanges. ” The details of forced outage fulfilling the above criteria in a specific format would be communicated to RPC by RLDC in order to exempt the sign change clause for the Generating Station from such period /blocks. In the 41st meeting of Commercial Sub-Committee had noted the following:  KSEBL stated that DSM account for the week 27.5.19 to 2.6.19 was prepared using the post facto revised schedule on 31.5.19 and 1.6.19. This had resulted in sign change violation charges of Rs.26,63,297/- to KSEBL, which was not observed during the real time operation. SRLDC was requested to revise the schedule to original schedule.  SRLDC had intimated that the schedule revision was carried out based on IEGC clause 6.5.16 invoked for NTPC Talcher-II ISGS and associated beneficiaries for the time blocks starting with time as under:  Date 31.5.2019 - 18:30; 20:15; 21:45; 23:00  Date 01.6.2019 – 01:00  After deliberation, it was concluded that SRLDC would communicate the applicable IEGC clause under which postfacto revision was carried out and it was agreed that the sign change would be waived off for all beneficiaries of NTPC Talcher Stage-II for this specific period. Deliberation in the meeting: a) KSEBL stated that SRLDC had agreed to waive off the sign change for all beneficiaries of Talcher STPS-II for the specific period. But in the revised DSM account for the week 27.05.2019 to 02.06.2019 issued by SRPC on 14th October 2019, the sign change violation was charged. The sign change violation not to be charged for the post facto schedule revision period.

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b) SRLDC informed that the accounts may be finalized based on the e-mail dated 21st June 2019. c) It was agreed that the DSM account for the week 27.05.2019 to 02.06.2019 would be revised based on the blocks declared by SRLDC for revision of schedule of Talcher STPS-II. The time blocks starting with time as under: i. Date 31.5.2019 - 18:30; 20:15; 21:45; 23:00 ii. Date 01.6.2019 – 01:00 The sign change violation during the above dates and time blocks would not be charged.

11. Pending recommendations of the 3rdmeeting of Nodal Officers Nodal Officers for SEM Data Coordination The 3rd meeting of Nodal Officers for SEM data coordination was held on 5th August 2016 and the Record notes of the meeting was issued vide SRPC/SE-I/2016/5711-40 dated 19.08.2016. The updated status on the pending recommendations are as follows: Installation of SEMs by Telangana -Bonakaalu- Chillakallu lines 1&2

 In the 39thMeeting of Commercial Sub-Committee, TSTRANSCO had informed that tender to procure SEM was floated and by December, 2018 SEMs would be installed.

There was no representation from TSTRANSCO in the meeting.

12. Settlement of Wheeling Charges paid mutually with effect from July 2011.

CERC Orders (in KPTCL- Petition No.225/TT/2013, KSEB- Petition No. 232/TT/2013 and TNEB- Petition No.212/TT/2013), mention that the YTC for the interstate lines have been taken in line with Sharing of Inter-State Transmission Charges and Losses Regulations, 2010 and the charges reimbursable had been calculated from 1.7.2011. The Wheeling charges indicated at 3(b) of the REA statements issued from the month of July, 2011 were provisional and issued as inputs from NLDC were pending. As these lines are to be covered under PoC Mechanism from 1.7.2011, the Wheeling charges indicated at 3(b) of the REA statements issued from the month of July, 2011 ceased to have any commercial implications. Accordingly, item No. 3(b) was not included in REA statement from February 2017. Constituents were requested to mutually settle Wheeling Charge payment effected from July, 2011, vide SRPC letter dated 17.3.2017.

The relevant extract from REAs with effect from July, 2011 in respect of wheeling charges was circulated.

In the 38th CCM all States were requested to verify and confirm the figures in the Statement of Wheeling charges for the period from July, 2011 to 31.03.2018 in order to issue the mutual settlement from July, 2011 and in the 39th CCM the same was confirmed.

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SRPC vide letter No: SRPC/SE-I/2018/7126-36 dated 06-11-2018 had circulated the final statements. The following had noted in the 40th & 41st Meetings: i. Karnataka had informed that Telangana reconciled the figures and the payments were being processed. PCKL requested for a meeting with KSEBL to resolve certain disputed figures. ii. TN had requested AP, Karnataka and Kerala for one to one meeting to reconcile the amount. The forum then requested all concerned to settle the charges before next CCM. iii. KPTCL had stated that the bills have been shared and they need to confirm. iv. KSEBL had informed that Tamil Nadu had refunded the principle amount of Rs.2.34 crore on 14.5.2019. Whereas, Karnataka had not refunded the amount raising dispute in the settled amount by KSEBL on 18.8.2016. The issue was already deliberated in the SRPC & CCM and the forum had suggested to settle the issue bilaterally through bilateral meeting. v. KSEBL was ready for Higher Management level meeting and had enquired the convenience of MD, PCKL. The meeting could not be convened, as it was not confirmed by PCKL/KPTCL.

Deliberation In the meeting:

 TANGEDCO informed that they had raised the invoice for a sum of Rs.7,72,58.055/- on PCKL/KPTCL. A reminder letter in this regard was addressed to PCKL on 5.10.2019.  KSEBL informed that a meeting with PCKL was held on 19.10.2019. KSEBL reminded the decision of 36th SRPC meeting at Chennai directing the constituents to clear the outstating amounts before the next SRPC. KSEBL had requested to reimburse the transmission and wheeling charges as intimated to PCKL vide letter dated 22.2.19 with applicable interest

13. Power Bill Dues from Discoms to NLCIL &NTPL

NLC India Ltd. vide letter dated 19.09.2019 (ANNEXURE-X) had furnished the following for discussion in the meeting:

The Power Bill dues from DISCOMs to NLCIL & NTPL as on 16.09.2019 NLC India Limited Utilities Dues (Rs.Cr.) >45 days Total TANGEDCO 3335.73 3643.47 HESCOM 232.26 267.73 CESC 60.25 75.78 GESCOM 93.01 118.91 APDISCOMS 165.96 232.31 TELANGANADISCOMS 341.02 413.19 Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 13/20

PED 88.19 146.84

NTPL Utilities Dues (Rs.Cr.) >45 days Total TANGEDCO 450.43 615.63 HESCOM 159.62 171.72 CESC 20.09 27.78 GESCOM 36.18 43.26 APDISCOMS 199.28 255.85 TELANGANA DISCOMS 357.31 434.75

Deliberation in the meeting: PCKL informed that the outstanding due as on 30.09.2019 as follows: ESCOM NLCIL NTPL (Rs.Cr.) (Rs.Cr.) CESC 69.91 22.83 HESCOM 149.50 115.65 GESCOM 77.50 12.27

TANGEDCO informed that the payment of dues to NLC would be released without interest in fifteen instalments as agreed mutually.

Puducherry informed that the bill for August 2019 would be cleared shortly.

NLCIL requested all the utilities to expedite payment of outstanding dues. 14. Pending Dues pertains to KKNPP

KKNPP, vide letter dated 16.08.2019 (ANNEXURE-XI) had intimated the outstanding energy bills & Delayed Payment Charges in respect of TSPCC, PED, TANGEDCO, CESCORTP and HESCOM.The details as on 16.08.2019 are furnished below: S.No Entity Outstanding Payment (Rs in crores) 1 CESCORP 45.69 2 HESCOM 190.89 3 TANGEDCO 1265.3 4 PED 47.02 5 TSPCC 45.7

SRPC vide letter dated 12thSeptember2019 (ANNEXURE-XII) had requested all entities to expedite the settlement of outstanding payments to NPCIL.

Further, KKNPP vide letter dated 19.09.2019 (ANNEXURE-XIII) had proposed the following for discussion in the meeting:

Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 14/20

i. Non Payment of Energy Dues & DPC dues by State Electricity Boards (SEB's). ii. Non Submission of Letter of Credit by M/s. HESCOM and M/s CESCORP. iii. Non Revision of Letter of Credit value by M/s. TNEB, M/s KSEB,M/s GESCOM and M/s PED. iv. Non Revision of LC terms and conditions by M/s TNEB. Deliberation in the meeting: PCKL informed that the outstanding dues from HESCOM to KKNPP as on 30.09.2019 were Rs.116.42 crores. KSEBL informed that LC of KKNPP had already been renewed for an amount of Rs.42.94 crores for a period of one year from 1.04.2019. The amount was arrived considering the bill amount of Unit-I & II of KKNPP together for the period November 2017 to February 2018 excluding the period of planned shutdown for the period from August 2018 to November 2018, as obtained from SRLDC website. KKNPP had considered the monthly energy charges of Unit-I&II upto May 2019 excluding the period of planned shutdown (Unit-I August 2018 to April 2019 and for Unit-II March 2018 to June 2018 and August 2018). KSEBL stated that the LC established on 30.03.2019 was adequate and there was no need of enhancing the LC amount as per PPA. The same was intimated to KKNPP vide letter dated 30.07.2019 in reply to KKNPP letter dated 19.07.2019. TANGEDCO informed that in line with the directions of Ministry of Power in regard to payment security to power purchase, TANGEDCO had opened letter of credit equivalent to one month generation, to all thermal generators and Nuclear power stations to the power purchase from 01.08.2019. The payment to the power purchase from 01.08.2019 were being made before the due date to all generators. KKNPP has negotiated the LC and got payment upto part month of April 2019, contrary to the guidelines of MoP. TANGEDCO strongly opposes the move of KKNNP and request them to readjust the LC against the current monthly bill. Puducherry informed that Rs.21 crores is being paid KKNPP requested all utilities to expedite settlement of the outstanding payment in respect of energy dues and DPC dues. He also requested action on renewal of LC.

15. Pending Payments between PCKL and KSEBL The following had noted in the 36th Meeting of SRPC: a) KSEBL had informed that there were some pending payments from PCKL. KSEBL expressed concern on admissibility issue being raised by PCKL/KPTCL. Admissibility part was already discussed and settled in earlier meetings. b) PCKL had assured that one to one meeting with KSEBL would be held shortly. c) CMD, KSEBL stated that PCKL on earlier occasions had assured that this would be settled before next SRPC meeting. He hoped that before next SRPC meeting PCKL would make the payment. d) MD, PCKL said that a meeting in this regard would be convened and payment issue would be sorted out.

Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 15/20

Deliberation in the meeting: PCKL / KSEBL informed that meeting was held on 19.10.2019 and discussed the following issues: a) Reimbursement of wheeling charges collected by KPTCL at the rate of 2.5 ps/unit for the period from July 2011 to August 2015 b) Reactive energy charges c) Frequency linked penalty scheme for over drawal / under drawal from April 1994 to May 1997 d) Refund of Fixed Transmission Charges to KSEBL PCKL stated that some of the issues needed to be discussed at Management level. A Note on the Meeting held on 19.10.2019 furnished by PCKL is at ANNEXURE-XIV.

KSEBL stated that the following receivables are pending from PCKL/KPTCL. 1. Rs.12.76 Crores with applicable interest towards the reimbursement of the already paid transmission and wheeling charges from 2011 2. Rs. 6.04 Lakhs with applicable interest towards the Reactive energy Charges for the period from 10.12.2019 to 22.9.2019 3. Applicable interest portion of the principal amount of frequency linked compensation of Rs. 11.58 Crores from 2013. 4. Since the above payments are pending from PCKL the Reactive energy charges of Rs. 17,51,231 / for the period from 30.5.2016 to 21.7.2019 payable to PCKL is not made by KSEBL

Commercial Sub-Committee suggested that PCKL/KSEBL may settle the outstanding payments issues in line with the decisions of Sub-Committees/ SRPC

A. Reactive Energy Charges between KPTCL and KSEBL PCKL vide letter dated 04th October 2019 (ANNEXURE-XV) had proposed deliberation on the payments towards reactive energy charges to Kerala in view of the radial nature of 220 kV Kadakola-Kaniyampeta and 110 kV Koneja- Manjeswaram lines. Deliberation In the meeting: PCKL informed that KSEBL had raised invoice for Rs.4.69 lakhs for the period from 10.12.2018 to 24.02.2019 towards reactive energy charges as per SRPC weekly reactive energy charges statements. PCKL vide letter dated 24.09.2019 had informed KSEBL that reactive energy charges are not payable sating the reasons.

KSEBL stated that unilateral decision of PCKL regarding the payment of reactive charges was not acceptable and not correct as it is against the SREB decisions. The computation of VAR charges is in line with clause 6.6.7 of IEGC. PCKL’s dispute regarding the methodology of reactive energy charges may be deliberated in all appropriate forums. SRPC Secretariat stated that the Reactive Energy Charges accounts on weekly basis being prepared in line with the provisions of IEGC Regulations. There is a provision in the IEGC

Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 16/20

that concerned Regional entities may mutually agree not to have any energy charge/payment for VAr exchanges between them on an interconnecting line. PCKL stated that the issue would be deliberated further. 16. Outstanding dues between Southern & Western Regional Constituents Pending payments between WR& SR Constituents as on 31.8.2019are as follows:

ANDHRAPRADESH/TELENGANA

RECEIVABLE FROM (₹) PAYABLE TO (₹) MPPMCL 1,21,76,270 NIL

KARNATAKA RECEIVABLE FROM (₹) PAYABLE TO (₹) MPPMCL 13,27,208 NIL

KERALA RECEIVABLE FROM (₹) PAYABLE TO (₹) MPPMCL 1,21,47,260 CSPDCL 7,05,279

TAMIL NADU RECEIVABLE FROM (₹) PAYABLE TO (₹) MPPMCL 1,17,17,268 CSPDCL 92,77,878

The following had noted in the earlier Meetings of Commercial Sub-Committee:  One to one meeting with MPPMCL and SR constituents (Andhra Pradesh, Karnataka and Tamil Nadu) was held on 9.5.2018 at Jabalpur, to reconcile the figures.  MPPTCL vide letter dated 13.7.2018 requested MS, WRPC to again arrange and convene a meeting amongst WR and SR beneficiaries, EREB, OPTCL and SREB so that all matter could be resolved and settled in totality.  In the 39th CCM KSEBL intimated that MPPMCL had requested WRPC for conducting a joint meeting of SR-WR constituents and OPTCL for settling the issue.  SRPC vide e-mail dated 30.05.2019 had requested MS, WRPC to arrange a meeting among WR and SR Constituents to reconcile the figures and resolve the matter totally.

TANTRANSCO vide their letter dated 13.09.2019 (ANNEXURE-XVI) had requested to arrange for meeting between SRPC and SR beneficiaries with WRPC and WR beneficiaries at the earliest, so as to sorted out the long pending issue.

Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 17/20

Deliberation in the meeting:  PCKL informed that they had provided all the relevant documents for settlement of outstanding amount. The issues relate to WR and ER need not be linked to the WR- SR outstanding payments. They had continuously addressed letters to MPPCL to clear the long pending issues. The latest letter addressed on 09.1.2019.  TANTRANSCO requested to arrange one more meeting between WR & SR constituents to settle the issue.  KSEBL informed that one to one meeting with MPPCL did not took place as MPPCL wanted one to one meeting after their meeting with GRIDCO. But the meeting with GRIDCO was not held.  After deliberation it was decided that MS, SRPC may take up with MS, WRPC to convene a meeting in this regard at the earliest. 17. Peak and off Peak Hours as per Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019. PCKL vide letter dated 04th October 2019 (refer ANNEXURE-XV) had stated that as per CERC (Terms and Conditions of Tariff) Regulations, 2019, RLDC considering the stake holders comments shall declare peak and off peak hours before 30.09.2019 which shall be effective from 1.4.2020. Deliberation in the meeting: It was noted that as per CERC (Terms and Conditions of Tariff) Regulations, 2019, the number of hours of “Peak” and “Off-Peak” periods during a day shall be four and twenty respectively. The hours of Peak and Off-Peak periods during a day shall be declared by the concerned RLDC at least a week in advance. The High Demand Season (period of three months, consecutive or otherwise) and Low Demand Season (period of remaining nine months, consecutive or otherwise) in a region shall be declared by the concerned RLDC, at least six months in advance: SRPC Secretariat informed that SRLDC had consulted the stakeholders in OCC meetings and subsequently declared the high demand and low demand seasons. The declaration is available on SRLDC web site as below: As per clause 42(3) of Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 "The High Demand Season (period of three months, consecutive or otherwise) and Low Demand Season (period of remaining nine months, consecutive or otherwise) in a region shall be declared by the concerned RLDC, at least six months in advance." Accordingly High demand season and Low demand seasons for Southern Region are declared as under: High demand season YEAR Low demand S.No (Period of three months Remarks Declared Date (F.Y) season in a year) Stakeholders April 2020, February From May 2020 consultation done 1 2020-21 30-09-2019 2021 and March 2021 to January 2021 in159th OCC meeting of SRPC

Commercial Sub- Committee noted the above. Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 18/20

18. Methodology of Settlement of Accounts for Bilateral Short Term and Collective Transactions, for the Period of Grid Disturbance

CERC vide order dated 09th October 2019 (ANNEXURE-XVII) has approved the Approval of the "Methodology of settlement of accounts for bilateral short term and collective transactions, for the period of Grid Disturbance" under Regulation 6.5.17 of Central Electricity Regulatory Commission (Indian Electricity Grid Code), Regulation 2010.

The “Methodology of settlement of accounts for bilateral short term and collective transactions, for the period of Grid Disturbance” specified in this order shall come into force from the date of coming into effect of IEGC Second amendment i.e. 17.02.2014.

Deliberation in the meeting: SRPC Secretariat requested SRLDC to furnish the details of Grid Disturbance (from 17.02.2014) which affected ISGS/Sellers with bilateral short term and collective transactions. SRLDC agreed to furnish the details within one month. The revised DSM accounts of the entities, if any, affected due to Grid Disturbance would be issued as per the methodology in the CERC order on receipt of the details from SRLDC. 19. Commercial Operation Declaration of ISTS Elements & ISGS (CGS) During the Financial Year 2019-20. The details furnished by PGCIL, SR-II are at ANNEXURE-XVIII. NLCIL informed that Unit-1 of NNTPS would be put on CoD by 10th November 2019 and Unit-2 after three months from Unit-1 CoD. 20. Proposed framework for Real-Time Market for Electricity CERC vide their Public Notice No. RA-14026(11)/2/2018/CERC dated 6thAugust, 2019 had requested to furnish the comments/feedback on the proposed framework for Real- Time Market for Electricity. SRPC Secretariat had submitted the suggestion in this regard to CERC vide letter dated 5th September, 2019 (ANNEXURE-XIX) Commercial Sub-Committee noted the above. 21. Compensation Calculation for Secondary Fuel Oil Consumption for the year 2018-19 The approved detailed procedure for taking unit(s) under Reserve Shut Down and Mechanism for Compensation for Degradation of Heat Rate, Aux Compensation and Secondary Fuel Consumption, due to Part Load Operation and Multiple Start/Stop of Units, stipulates that computation of Compensation for degradation of Secondary Fuel Oil consumption for the year shall be done if total number of start-ups exceed 7 x no. of units in the generating station. In this regard, NTPC Kudgi STPS Stage-I total number of start-ups for the year 2018-19 had exceeded 21 (7x3=21). Therefore, as per the above procedure, Compensation payable to Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 19/20

NTPC Kudgi STPS Stage-I on account for Secondary Fuel Consumption had been worked out and the statement was issued vide SRPC letter dated 3rd September, 2019 (ANNEXURE-XX). Commercial Sub-Committee noted the above. 22. Certification of Natural Interstate Lines TSTRANSCO vide their letter dated 29.08.2019 had requested for certification of natural inter-state lines owned by STU of Telangana for inclusion in PoC charges for the period 2014-20. SRPC vide letter dated 11.09.2019 (ANNEXURE-XXI) had certified the Natural Inter- State lines owned by TSTRANSCO connecting Telangana with Andhra Pradesh and Karnataka. Commercial Sub-Committee noted the above. 23. Date and Venue of 43rdMeeting of Commercial Sub-Committee It was decided to hold the 43rd meeting of Commercial Sub-Committee during last week of January 2020. PCKL may explore the possibility of hosting the meeting. 24. Vote of Thanks Member Secretary, SRPC thanked Members and the participants for the active participation in the meeting. *****

Minutes of the42ndMeeeting of Commercial Sub-Committee held on 22.10.2019 20/20