To Accord Approval for the Capital Investment Plan for the FY 2019 – 20 for Rs.4493.09Crores, for FY 2020-21 for Rs.2737.31 Crores 1
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TAMIL NADU ELECTRICITY REGULATORY COMMISSION (Constituted under section 82 (1) of the Electricity Act, 2003) (Central Act 36 of 2003) PRESENT: Thiru M.Chandrasekar .... Chairman and Thiru K.Venkatasamy .... Member (Legal) M.P. No.16 of 2019 Tamil Nadu Transmission Corporation Limited 144, Anna Salai Chennai – 600 002. … Petitioner (Thiru V.Anil Kumar, Standing Counsel for TANTRANSCO) Dates of hearing :10.12.2019,17.12.2019, 28.1.2020,11.2.2020, 10.3.2020,2.6.2020,14.7.2020, 23.2.2021, 16.03.2021, and 30.3.2021 Date of Order : 15.06.2021 The Tamil Nadu Transmission Corporation Limited (hereinafter referred as “TANTRANSCO” or “the Petitioner”) filed the Capital Investment Plan (hereinafter referred as “CIP) for the MYT Control Period from FY 2019-20 to FY 2021-22 in M.P. No. 16 of 2019. The Petition came up for final hearing on 23.02.2021. The Commission upon perusal of the above petition and other connected records and after hearing the submissions of the Petitioner, hereby makes the following order: ORDER 1. Prayer of the Petitioner in M.P.No.16 of 2019:- 1.1The prayer of the petitioner is to accord approval for the Capital Investment Plan for the FY 2019 – 20 for Rs.4493.09Crores, for FY 2020-21 for Rs.2737.31 Crores 1 and for FY 2021-22 for Rs.4887.85 Crores and further to issue a statutory advice to the Government of Tamil Nadu, under sec 86 (2) of the Electricity Act 2003 to provide equity assistance to TANTRANSCO for promotion of investment in Transmission sector in Electricity Industry. 2. Facts of the Case: 2.1 Tamil Nadu Transmission Corporation Ltd.,(TANTRANSCO) was incorporated on 15.06.2009 and the Certificate for commencement of business was obtained on 11.12.2009.The Tamil Nadu Transmission Corporation Ltd. is engaged in the transmission of power generated from the generating stations to distribution centers (under TANGEDCO) with the help of transmission network (GRID). 2.2 TANTRANSCO has been notified as a State Transmission Utility under section 39 of the Electricity Act 2003 and is acting as a Transmission Licensee also and has to comply with the duties specified in section 39 and 40 of the Electricity Act 2003. Based on the additional capacity,location of generating stations and quantum and area of demand in the distribution side, TANTRANSCO has to plan and develop an efficient, coordinated, reliable and economical Transmission system for smooth flow of electricity from the generating stations to the load centres. Consistent augmentation and upgradation of existing network is required to ensure that adequate Transmission system is available with redundancy. 2.3 Regulation 17 of the TNERC (Terms and Conditions for Determination of Tariff) Regulations, 2005 and regulation 3(v) of Terms and Conditions for determination of Tariff for Transmission/Distribution of Electricity (under MYT 2 framework) Regulations, 2009 specify that the licensee shall get the Capital Investment Plan approved by the Commission before filing ARR and application for determination of Tariff. In accordance to the provisions in the Commission’s Tariff Regulations on filing the Capital Investment Plan, TANTRANSCO hasfiled the detailed Capital Investment Plan for the MYT control period 2019-20 to 2021-22. 2.4 In the CIP filed on 3.12.2019,TANTRANSCO sought approval for Rs. 5917.46 crores,Rs.6855.51 crores and Rs.7038.87 croresfor FY20, FY21 and FY22 respectively. Commission in its daily orders dt.10.12.2019 and 17.12.2019 directed TANTRANSCO to file additional affidavit specifying details regarding Government equity in the proposed plan, scheme wise expenditure with realistic data. Commission also directed TANTRANSCO to upload the petition in public domain and invite comments from stakeholders and file along withreply to stakeholder comments. An additional affidavit was filed on 20.1.2020 where the capital expenditures for FY20,FY21 and FY22 were revised to Rs.4597.30 crores, Rs.6743.72 crores and Rs.7029.31 crores. During the hearing on 28.1.2020, Commission directed to furnish details of funding arrangements made for the schemes. During the hearing on 11.2.2020, Commission directed to file details of actual expenditure incurred upto January 2020 and that expected to be incurred until FY21. Details as directed by the Commission were filed by TANTRANSCO. On 10.3.2020, Commissiondirected the petitioner to implead the Secretary to Government,Finance Department serving a copy of the petition filed. 2.5 Due to outbreakof the coronavirus pandemic, the execution of schemes were not as planned. Commission on 2.6.2020 directed to filedetails as per actuals achieved for FY20 and revise the capital expenses for the next two years of 3 the control period. The capital expenditure was revised to Rs.4493.09 crores, Rs.3281.14 crores and Rs.5847.80 crores for FY20, FY21 and FY22 respectively. Details were filed and orders were reserved on 14.7.2020. The situation of covid19 persisted. After scrutiny of the petition, Commission aware of the slow status of progress, reopened the petition and directed TANTRANSCO to file a revised affidavit accounting for the actual expenditure and revise the phasing of capital expenditure and capitalization of the schemes. The petitioner has filed the revised capital expenditure plan as directed by the Commission. 3.Submissions of the Petitioner:- 3.1 As on 31.03.19, TANTRANSCO’s Transmission network comprised of 998 substations of voltage rating 66 KV and above and 34,275.701 CktKms of EHT Lines. During the year 2018-19, as on 31.03.19, 37 nos. substations with a capacity of 2107 MVA, 1190.815 CktKms of EHT Lines and 93 nos. power transformers with a capacity of 1907 MVA towards additional/enhancement in the existing substations have been commissioned. 3.2 The following table presents the network details of TANTRANSCO as on 31.03.2019and Sub-Stations(SS)/lines commissioned during 1.4.2019 to 31.3.2020: Voltage ratio Existing as on 31.3.2019 Commissioned during 01.4.2019 to 31.3.2020 Sub stations EHT lines in Sub stations EHT lines in Km Km 400 KV 015 4040.756 1 66.830 230 KV 104 10326.444 3* 248.362 110 KV 876 19225.501 46* 710.381 4 66 KV 003 683.00 - - Total 998 Nos. 34275.701 50 Nos. 1025.573** *Including new ratio introduced in the existing sub stations **including lines erected under system strengthening 3.3In addition to the above, 65 nos. Power transformers with a capacity of 1597 MVA as additions/enhancementshave been commissioned. This apart,under T&D,DDUGJY(DeendayalUpadhyaya Gram JyotiYojana),IPDS schemes, 82 nos. 33 KV sub stations with a capacity of 1040 MVA and 156 nos. of transformers (new and enhancement) have been commissioned. 3.4 The capital expenditure incurred for transmission schemes during the FY 2016-17 was Rs.3816.76 Crores, FY 2017-18 was Rs.2823.03 Crores and FY 2018-19 was Rs.3949.35 Crores. Capital expenditure in actuals incurred during 2019-20 and 2020-21 is Rs.4493.09 crores and Rs.2370.87crores respectivelyand this is subject to audit. 3.5The following Table summarises the Capital Expenditure and Capitalisation of Transmission Schemes for the Control Period from FY 2019-20 to FY 2021-22: Capital Expenditure and Capitalisation proposed by TANTRANSCO (Rs. Crore) Sl. Particulars Capital expenditure Capitalisation No. 2019- 2020- 2021- 2019- 2020- 2021- 20 21 22 20 21 22 I Sub-station works 5 765 KV sub stations 1934.65 467.75 452.12 0.00 0.00 2417.85 400 KV sub stations 290.30 559.30 1765.66 59.95 0.00 517.62 230 KV sub stations 450.07 249.07 358.69 296.41 310.12 471.51 110 KV sub stations 325.00 40.00 30.00 224.50 182.50 35.00 Sub-total(excluding JICA,KfW 3000.02 1316.12 2606.46 580.86 492.62 3441.98 and ADB) II Transmission Line works 765 KV, 400 KV, 230 KV and 110 KV Power Evacuation Lines – 765 KV, 388.00 65.37 87.14 30.00 40.00 229.88 400 KV,230 KV and 110 KV Improvement and Link lines -230 150.00 10.00 25.00 120.00 80.00 17.50 KV and 110 KV Sub-total 538.00 75.37 112.14 150.00 120.00 247.38 III Others Enhancement/Additional Power 150.00 50.00 75.00 150.00 50.00 75.00 Transformers TANTRANSCO building 24.74 6.18 0.00 0.00 28.46 28.46 JICA schemes 297.08 64.93 193.94 0.00 64.70 173.04 KfW schemes 241.00 220.00 300.00 525.40 956.35 252.08 ADB schemes 26.11 966.35 1421.47 0.00 0.00 243.39 Capacitor banks 12.54 3.51 - 8.78 8.78 Reactors 3.14 18.85 40.83 31.41 31.41 Quarters at Guindy and Korattur 2.00 3.00 5.00 10.00 SE/GCCs Office(Trichy and 2.00 3.00 3.00 1.00 1.00 6.00 Coimbatore) Construction of Transformer repair 3.24 - - 0.00 2.62 2.62 bay at Arasur Balance works of commissioned/on 193.22 10.00 130.00 154.58 46.64 106.00 going sub stations 110 KV and above Sub total 955.07 1345.82 2169.24 830.98 1189.95 936.78 TOTAL 4493.09 2737.31 4887.85 1561.84 1802.57 4626.14 3.6 Generation capacity: 6 3.6.1 The installed generation capacity of TANGEDCO as on1st April 2019 was 18,299.66 MW including Hydro, Thermal, Gas, Share from CGS, IPP,CPP and Power purchase.