MPPGCL True-up Tariff Petition for FY 2017-18

TABLE OF CONTENTS

S.No. PARTICULARS Page No. I TRUE UP TARIFF PETITION FOR FY 2017-18 3-11

II PRAYER 12

III AFFIDAVIT 13-14

IV AUTHORIZATION 15

V SUB INDEX OF TRUE UP TARIFF PROPOSAL

1 CAPACITY 16-18

2 PERFORMANCE PARAMETERS& OPERATING NORMS 19-30

3 ENERGY CHARGES (VARIABLE CHARGES) 31 4 FIXED COST:- 4.1 O & M EXPENSES 32-39

4.2 OTHER CHARGES 40-46 ADDITIONAL CAPITALIZATION 4.3 47-65 /DECAPITALIZTION& FUNDING THEREOF 4.4 ASSETS &DEPRECIATION 66-81

4.5 INTEREST & FINANCE CHARGES 82-90

4.6 INTEREST ON WORKING CAPITAL 91-94

4.7 RETURN ON EQUITY 95-102

4.8 NON TARIFF INCOME 103-108

5 DECOMMISSIONING OF ATPS PH-2(2x120MW) 109-111

6 REQUIREMENT FOR TRUE UP FY 2017-18 112-115

VI ANNEXURE – 1 : PAYMENT DETAILS OF MPERC FEE 116

VII FORMS - INDEX 117

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BEFORE THE M.P. ELECTRICITY REGULATORY COMMISSION BHOPAL Petition No. of 2018 IN THE MATTER OF

Trueup of Generation Tariff of Power Stations of MPPGCL for FY 2017-18 determined by MP Electricity Regulatory Commission vide Multi Year Tariff order dated 14.07.2016. : Petitioner M.P. Power Generating Company Ltd, Jabalpur.

Vs 1. M.P. Power Management Company Ltd., Jabalpur. 2. M.P. Power Transmission Co. Ltd., Jabalpur. 3. Rajasthan Rajya Vidyut Prasaran Nigam Ltd., Jaipur. : Respondents 4. Uttar Pradesh Power Corporation Ltd., Lucknow. 5. MSEB (Holding Co) & Maharashtra State Transmission Co. Ltd, Mumbai

The above named petitioner M.P. Power Generating Company Ltd. respectfully submits as under:-

1. The petitioner is wholly owned company of Government of M.P engaged in generation of electricity in the State of Madhya Pradesh. It is a successor entity of erstwhile Madhya Pradesh State Electricity Board (MPSEB).

2. The Company has been incorporated as part of implementation of the power sector reform in M.P. initiated by the Government of MP. The Company has taken over the generation activities of MPSEB. The company while operating and maintaining its existing Units is also constructing new power plants for increase in generating capacity in the State of Madhya Pradesh. The Company is registered under Companies Act 1956 and was incorporated on 22.11.2001. Its registered office is at Shakti Bhawan, Rampur, Jabalpur.

3. The activities of Generation, Transmission and Distribution have been looked after earlier in the State of M.P. by the integrated utility i.e. MPSEB constituted under Section 5 of Electricity (Supply) Act 1948. The Government of MP enacted M.P. Vidyut Sudhar Adhiniyam 2000 and in the spirit of said Act the

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unbundling process of the MPSEB was initiated by registering the following five Companies:-

(i) Madhya Pradesh Power Generating Co. Ltd., Jabalpur (MPPGCL) (GENCO). (ii). Madhya Pradesh Power Transmission Co. Ltd., Jabalpur (MPPTCL) (TRANSCO). (iii). Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Ltd. Jabalpur (MPPKVVCL) (EAST DISCOM). (iv). Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. Bhopal. (MPMKVVCL) (CENTRAL DISCOM). (v). Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. Indore (MPPKVVCL) (WEST DISCOM).

4. The above mentioned five companies, which were registered in November 2001 entered into Operation & Management Agreement with erstwhile MPSEB. They worked as agent of MPSEB from July 2002 to May 2005. The companies started independent functioning w.e.f. 01.06.2005 under Cash flow mechanism as per order dated 31.5.2005 of State Government.

5. A Sixth Company, namely the MP Power Trading Company Ltd. was incorporated as per the State Government Notification dated 3.6.2006 specifying functions of TRADECO for purchase of electricity in bulk from Generating Companies / Traders, from within & outside the State and supply electricity in bulk to the Electricity Distribution Companies in the State of Madhya Pradesh.

6. GoMP vide letter No. 6074/13/12/02 dated 29.03.12 has changed the name of MP Power Trading Company Ltd to MP Power Management Company Ltd.. It has been made the holding company for all the DISCOMS of MP. Further, GoMP vide its notification dated 26.04.2012 has merged M.P. State Electricity Board with MP Power Management Company Ltd.

7. MPPMCL and the three DISCOMS of MP have entered into a management and corporate functions agreement on 05.06.2012, whereby the three DISCOMS have engaged MPPMCL to represent them in all the proceedings relating to power procurement and tariff petitions filed or to be defended before CERC, MPERC and other regulatory authorities, Appellate Tribunals, High Courts, Supreme

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Court and CEA etc.. Therefore the three DISCOMS have not been made as respondents, separately.

8. Rajasthan Rajya Vidyut Prasaran Nigam (RRVPNL), Jaipur, (hereinafter referred as Respondent No. 3) has 50% share in Gandhi Sagar Hydro Power Station operated by MPPGCL. At the same time, MPPGCL has 50% share in the Ranapratap Sagar Hydro Power Station and Jawahar Sagar Hydro Power Station operated by the Respondent No. 3. Similarly Uttar Pradesh Power Corporation Ltd (UPPCL), Lucknow (hereinafter referred as Respondent No. 4) and MSEB (Holding Co) & Maharashtra State Transmission Co. Ltd , Mumbai (hereinafter referred as Respondent No. 5) have 50% share in Rajghat Hydro Power Station and 33.3% share in Pench Hydro Power Station operated by MPPGCL, respectively.

9. GoMP vide its notification dated 03.06.2006 has provided that MP Tradeco, now MP Power Management Company Ltd., shall purchase entire power from the Genco (MPPGCL) at the tariff to be determined by MPERC.

10. MPPGCL entered into Power Purchase Agreement (PPA) with MP Tradeco (now M.P.P.M.C.L.) on 29.11.2006. The PPA provides that the tariff payable by Tradeco to Genco and terms & conditions related thereto shall be as determined by the State Commission.

11. The first amendment agreement to Power Purchase Agreement (PPA) dated 29.11.2006 towards Purchase of Power from then existing and ongoing Thermal and Hydel Units of M. P. Power Generating Company Limited, has been signed on 18.07.2017 at Jabalpur. This First Amendment Agreement shall have a term period till retirement/ decommissioning of all Thermal and Hydel Power Stations of MPPGCL listed in the agreement.

12. MPPGCL has therefore raised the bills of energy sold to Tradeco now MPPMCL since 1.6.2005 as per the tariff determined by Hon’ble Commission from time to time.

13. Hon’ble Commission notified MPERC (Terms & Conditions for determination of Generation Tariff) Regulations, 2015{RG-26 (III) of 2015} on 01.01.2016. This regulation was based on multiyear tariff principles and incorporated norms of operation for control period FY 2016-17 to FY 2018-19.

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14. In the instant True up petitions, MPPGCL has proposed true up for FY 2017- 18in respect of existing/new stations whose tariff was determined by Hon’ble Commission vide Multi Year Tariff order dated 14.07.2016.

15. MPPGCL is submitting the True up petition for FY 2017-18 based on Audited Annual Statements of Accounts for FY 2017-18 under section 62 & 64 of the Electricity Act 2003 read with proviso-8 of MPERC Generation Tariff Regulation,2015.

16. This year the Annual Statement of Accounts has been prepared on basis of Indian Accounting Standards (IndAS) prescribed under Section 133 of the Companies Act read with the rule 3 of Companies (Indian Accounting Standard) Rules, 2015 and Companies (Indian Accounting Standard) amendment Rules,2016.

17. The Petitioner has adopted following approach for True-up of Generation Tariff:-

a) The Energy Charges (Variable Charges) has been billed in accordance to proviso 28, 29 & 36.6 of MPERC (Terms & Condition for determination of Generation Tariff) (Revision-III) Regulation, 2015. Therefore, no truing up of Energy Charges has been considered in this petition.

b) Other Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on Repair &Maintenance, Cost of Chemical & Consumable& Publication Expenses have been claimed on actuals based on Audited Books of Accounts for FY 2017-18.

c) The expenses shown in Audited Annual Statements of Accounts for FY 2017-18are of MPPGCL’s share. The expenses as extracted from Audited Annual Statements of Accounts for FY 2017-18for the shared portion have been factored to represent 100% capacity operated by MPPGCL to match with MPERC’s Multi Year Tariff Order dated 14.07.2016.

d) The expenses of Rana Pratap Sagar and Jawahar Sagar indicated in the Annual Statements of Accounts for FY 2017-18 of MPPGCL have not been considered in this True up Petition since Hon'ble

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Commission has not considered these projects in Tariff order, being operated by Rajasthan authorities. e) As per proviso 35.4 of the Regulation-2015 read with MYT Order dated 14.07.2016, the expenditure towards actual Pension & Terminal benefits shall be claimed by Transmission Licensee i.e. MPPTCL on ‘pay as you go’ principal, subject to true-up in each year on availability of actual figures. Accordingly MPPGCL has not claimed these expenses in this True-up tariff petition. f) The GoMP vide letter No. 6916/2017/13 dated 31.10.2017 has issued order for Pay revision of employees. MPPGCL vide order No. 4974 dated 29.12.2017 has adopted Seventh pay commission from 01.01.2016. The arrears on account of pay revision for the period 01.01.2016 to 31.12.2017 has been booked in Audited Books of Accounts for FY 2017-18. MPPGCL has claimed the same in the instant petition in accordance with proviso 35.7 & 35.9 of MPERC Regulations 2015 in the Chapter- 4.2 -Other Charges.

It is to mention that the Hon’ble Commission at Para 105 of MYT order dated 14.07.2016 for Control period FY 17 to FY 19 has stated as under:-

“With regard to impact of 7th pay Commission, the same shall dealt with in accordance with the Regulation 35.5 of MPERC Regulations 2015, at an appropriate stage of implementation of 7th pay commission after prudence check on the details and documents filed by MPPGCL on satisfaction of the Commission.”

As evident from above, the impact of 7th pay commission was not considered by the Hon’ble Commission while prescribing the O&M Norm for the Control period FY 2016-17 to FY 2018-19. Accordingly, in the instant petition, MPPGCL has worked out the Lakh /MW impact on 7th pay commission in O&M Norms and has claimed the differential O&M amount for the period 01.01.2018 to 31.03.2018 in Chapter 4.1- O&M Expenses.

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g) The proviso of 39.3 MPERC Regulations 2015 provides that in case of shortage of coal at new power Stationed Commissioned after 01.04.2012, the NAPAF for recovery of fixed charges shall be 83%. In this regard, it is to mention that since 01.04.2017, MPPGCL is facing coal shortage at following units commissioned after 01.04.2012:-

 SSTPP PH-1 , Unit No.1&2 (2x600 MW)Khandwa &

 STPS PH-4 Unit No.10&11 (2x250 MW) Sarni

In the matter, MPPGCL has filed the petition No.20/2018 before the Hon’ble Commission for consideration of same. The Hon’ble Commission vide Order dated 09.08.2018 has stated that as under:-

In Para 21 of the subject petition and also in the prayer, MPPGCL has requested to relax the NAPAF norms by 2% on account of shortage of coal for those thermal power stations also which were commissioned after 01.04.2012 whereas, Regulation 39.3(A) of MPERC (Terms and Conditions for determination of Generation Tariff) Regulations, 2015 has already provided the same.

Considering above, MPPGCL, in the instant petition has considered NAPAF for recovery of fixed charges at 83% for SSTPP PH-1 Khandwa & STPS PH-4 (Unit No.10&11) Sarni.

18. The difference between element wise Annual Fixed Charges approved by the Hon’ble Commission for FY 2017-18 in its MYT order dated 14.07.2016 vis-à-vis the true up requirement after applying Actual Availability on fixed cost elements of Thermal power stations and actual Availability applicable on Capacity charges for Hydro Power Stations based on 100% capacity of the plants operated by MPPGCL and detailed in subsequent chapters of instant petition, works out as under:-

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True Up Requirement for FY 2017-18 Amount in Rs. Crores Annual Fixed Cost FY 2017-18 Particulars Elements As per MPPGCL MPERC as per Diff. Orders norms O & M Expenses 1031.95 884.56 -147.38 Compensation Allowance 6.30 5.16 -1.14 Special Allowance 82.05 63.07 -18.98 Fixed Cost Interest on Loan+ Excess Equity 881.71 746.47 -135.24 Elements Interest on Working Capital 368.10 307.78 -60.32 Depreciation 736.60 684.09 -52.51 Return on Equity 630.48 565.61 -64.87 Less Non Tariff Income 0.00 61.37 -61.37 Total 3737.19 3195.37 -541.82

The Power station wise break up of true up amount for FY 2017-18after applying actual Availability on fixed cost elements of thermal power stations and actual Availability on capacity charges for Hydro Power Stations is worked out as under:-

As considered As per S. by Station MYT Diff. No. MPPGCL Order on actual Availability 1 ATPS PH-3 214.20 207.86 -6.34 2 STPS PH-2&3 388.28 292.83 -95.45 3 STPS PH-4 705.36 650.14 -55.22 4 SGTPS PH-1&2 434.41 340.55 -93.86 5 SGTPS PH-3 410.22 333.97 -76.26 6 SSTPP PH-1 1328.73 1119.19 -209.54 7 Thermal 3481.20 2944.54 -536.66 8 Gandhi Sagar 12.94 12.23 -0.71 9 Pench 24.08 23.31 -0.78 10 Rajghat 12.51 8.41 -4.11 11 Bargi 15.69 16.67 0.98 12 Bansagar PH-1,2&3 139.35 140.09 0.74 13 Bansagar PH-4 15.23 15.97 0.74 14 Birsinghpur 5.59 4.92 -0.67 15 Madhikheda 30.59 29.23 -1.35 16 Hydro 255.98 250.83 -5.15 Total 3737.19 3195.37 -541.82

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19. Other Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on R&M, Cost of Chemical & Consumable and Publication expenses incurred by MPPGCL and as per audited Annual Statement of Accounts for FY 2017-18 on 100% basis as detailed in Chapter 4.2 -Other Charges, are as under:-

Amount in Rs. Crores

S. No. Particulars Total

1 Rent, Rates & Taxes 0.77 2 Wage Revision Arrears 115.53 3 Water Charges 64.17 4 Cost of Chemicals & Consumables 11.56 5 MPERC Fee + Publication Exp. 1.61 6 Earned Leave Encashment 57.06 Total 250.70

The Power station wise break up of Other Charges is as under:- Amount in Rs. Crores Other S.No. Power Station Charges 1 ATPS PH-3 28.70 2 STPS PH-2&3 42.67 3 STPS PH-4 23.35 4 SGTPS PH-1&2 30.98 5 SGTPS PH-3 18.44 6 SSTPP PH-1 49.79 7 Total Thermal 193.93 8 Gandhi Sagar HPS 17.30 9 Pench HPS 3.27 10 Rajghat HPS 2.54 11 Bargi HPS 6.73 12 Bansagar PH-1,2&3 HPS 22.20 13 Bansagar PH-4 1.10 14 Birsinghpur HPS 0.67 15 Madhikheda HPS 2.97 16 Total Hydro 56.77 Total 250.70

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It is requested before the Hon’ble Commission to kindly permit the same.

20. Details of each of the elements covered in Para 18&19 has been elaborated in respective Chapters enclosed in this petition.

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PRAYER

In view of the above, the petitioner respectfully prays that Hon’ble Commission may kindly:-

(a) Approve Annual Fixed Charges and Other charges for FY 2017-18 and permit recovery of True up amount as per Para 18&19 in six equal monthly installments.

(b) Allow additional capitalization as per audited Annual Statements of Accounts for FY 2017-18 and accordingly permit additional Depreciation, RoE and Interest on excess equity.

(c) MPPGCL has considered actual availability factor for working out of true up amount for Hydro stations. However, looking to the above facts &constraints, MPPGCL humbly request Hon’ble Commission to kindly take cognizance of critical issues related to Hydel Power Stations of MPPGCL and opt the CERC methodology of determination of norm for NAPAF in full or allow MPPGCL to recover of full Capacity Charges for Hydro stations of MPPGCL on Capacity Index basis.

(d) Allow separate recovery of balance Depreciation amounting to Rs. 26.76 Crores towards assets decommissioned at ATPS PH-2.

(e) In accordance with proviso 8.15 of Regulation, 2015, allow interest on differential true-up amount, if any.

(f) Condone delay if any in filing the petition.

(g) Condone any inadvertent omissions/ errors/ short comings and permit the applicant to add/ change/modify/ alter this filing and make further submissions as may be required at later stages.

(h) Pass such orders as Hon’ble MPERC may deem fit and proper and necessary in the facts and circumstances of the case, to grant relief to petitioner.

Date: 31/12/2018 (S. K. Saxena) Place: Jabalpur Chief Engineer (CS) Officer-in-Charge For and on behalf of MP Power Generating Co. Ltd Jabalpur.

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Capacity

1.1 Installed Capacity of Generating Station of MPPGCL (Existing) The installed capacity of the MPPGCL share, as on 01.12.2018 is 4997.2 MW (including its share in bilateral interstate projects), consisting of 4740 MW Thermal and 917.2 MW Hydro power. The plant wise details are as under. Table 1.1 Details of Power Plants as on 01.12.2018

Installed Capacity (MW) Power Station Total MPPGCL Share Amarkantak Thermal Power PH 3 1 x 210 = 210 100% 210 1 Station (Chachai) Complex 210 100% 210 PH 2 200 + 210 = 410 100% 410

Satpura Thermal Power Station PH 3 2 x 210 = 420 100% 420 2 (Sarni) PH 4 2x250= 500 100% 500 Complex 1330 100% 1330 PH 1 2 x 210 = 420 100% 420

Sanjay Gandhi Thermal Power PH 2 2 x 210 = 420 100% 420 3 Station (Birsinghpur) PH 3 1 x 500 = 500 100% 500 Complex 1340 100% 1340 ThermalStations Power PH 1 2 x 600= 1200 100% 1200 Sri Singaji Thermal Power 4 PH 2* 2 x 660=* 660 100% 660 Station (Khandwa) Complex 1860 100% 1860 5 Total Thermal Generation 4740 100% 4740 Gandhi Sagar 5 x 23 = 115 50% 57.5 R.P. Sagar 4 x 43 = 172 50% 86 1 Chambal HPS Jawahar Sagar 3 x 33 = 99 50% 49.5 Complex 386 50% 193

2 Pench Totladoh HPS 2 x 80 = 160 66.70% 106.7 Tons 3 x 105 = 315 100% 315 Silpara 2 x 15 = 30 100% 30 3 Bansagar HPS Devlond 3 x 20 = 60 100% 60 Jhinna (SHP) 2 x 10= 20 100% 20 Complex 425 100% 425

Hydro Power Stations 4 Birsinghpur HPS 1 x 20 = 20 100% 20 5 Bargi HPS 2 x 45 = 90 100% 90 6 Rajghat HPS 3 x 15 = 45 50% 22.5 7 Madhikheda HPS 3 x 20= 60 100% 60 8 Total Hydro Generation 1186 917.2 Total Generation 5926 5657.2

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1.2 Generation Capacity Operated by MPPGCL As on 01.12.2018, MPPGCL is operating 5655 MW, consisting of 4740 MW thermal and 915.0 MW Hydro power. Out of this 133.3 MW capacity belong to other States. The plant wise details are as under:-

Table 1.2.1 Generation Capacity Operated by MPPGCL as on 01.12.2018 Installed MP Other State’s Share Station Capacity Share MW % State’s Name ATPS Chachai 210 210 0 STPS Sarni PH 2,3&4 1330 1330 0 SGTPS Birsinghpur 1340 1340 0 SSTPP Khandwa 1860 1200 0 Total Thermal 4740 4740 0 Gandhi Sagar 115 57.5 57.5 50.00% Rajasthan Pench 160 106.7 53.3 33.31% Maharashtra Bansagar Complex 425 425 0

Birsinghpur 20 20 0

Madhikheda 60 60 0

Bargi 90 90 0

Rajghat 45 22.5 22.5 50.00% Uttar Pradesh Total Hydro 915 781.7 133.3 Total Capacity 5655 5521.7 133.3

1.3 Share of MPPGCL in Generation Capacity installed in other States Similarly, MPPGCL also has a share of 135.5 MW in hydro generation capacity installed in neighboring State of Rajasthan as under:-

Table 1.3.1 Generation Capacity installed in other States MW Station Installed MPPGCL Share Other Capacity MW % State’s Name Rana Pratap Sagar 172.0 86.0 50.00% Rajasthan Jawahar Sagar 99.0 49.5 50.00% Rajasthan Total 271.0 135.5

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1.4 Annual Statement of Accounts The Annual Statement of Accounts of MPPGCL is prepared for the portion actually owned by MPPGCL and not for the capacity operated by MPPGCL. Therefore, the expenses as extracted from the Annual Statement of Accounts of MPPGCL for the shared portion have been factored to represent 100% capacity operated by MPPGCL to match with MPERC’s Order.

The Annual Statement of Accounts has been prepared on basis of Indian Accounting Standards (IndAS) prescribed under Section 133 of the Companies Act read with the rule 3 of Companies (Indian Accounting Standard) Rules, 2015 and Companies (Indian Accounting Standard) amendment Rules,2016. The copy of Audited Annual Statement of accounts for FY 2017-18 is being submitted separately.

1.6 Capacity Addition and Future Plan

1.6.1 On-going Projects:-

2x660 MW Shri Singaji TPP (Stage-II) District Khandwa (MP) Administrative approval was in January 2011. PPA was signed with Tradeco/ MPPMCL on 04.01.2011. The environmental clearance has been granted by Ministry of Environment & Forest vide letter dated 27.08.2014. The letters of award of works issued to M/s Larson & Tubro on 04.09.2014. The Zero date of commencement of work was date of release of advance i.e. 31.12.2014. The revised estimated cost of the project is Rs. 7738 Crores at present.

The Unit No.3 (660MW) has started commercial generation w.e.f 18.11.2018 00:00Hrs.

The Unit No.4 (660MW) is under construction. The first synchronization of the unit No. 4 has been achieved on 27.12.2014.

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2. PERFORMANCE PARAMETERS AND OPERATING NORMS 2.1 Thermal Power Stations

2.1.1 Gross Generation The actual Gross generation in MU of Thermal Power Stations for the year 2017-18 is shown in the table below:

Actual Gross Generation (MU) for FY 2017-18

Table 2.1.1.1 in MU Actual Gross Name of TPS Generation

ATPS Chachai PH-3 1728 STPS Sarni PH- 2 & 3 1716 STPS Sarni PH- 4 3304 SGTPS Birsinghpur PH-1 & 2 4505 SGTPS Birsinghpur PH-3 3038 SSTPP Khandwa PH-1 3774 Total 18066

2.1.2 Plant Availability Factor

The comparison between NAPAF as approved in Regulations,2015 vis-à-vis the actual PAF for the year 2017-18is shown in the table below:

Approved V/s Actual NAPAF (%) for FY 2017-18

Table 2.1.2.1 in % As per MPERC MPPGCL Difference Name of TPS Regulation,2015 Actuals ATPS Chachai PH-3 85.0% 97.0% 12.0% STPS Sarni PH- 2 & 3 75.0% 57.7% -17.4% STPS Sarni PH-4 83.0%* 78.9% -4.1% SGTPS Birsinghpur PH-1 & 2 80.0% 65.5% -14.5% SGTPS Birsinghpur PH-3 85.0% 72.6% 8.2% SSTPP Khandwa PH-1 83.0%* 63.9% -19.1% * Due to Coal shortage.

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2.1.3 Auxiliary Consumption

MPPGCL is submitting the comparison between auxiliary consumption as approved in Regulations, 2015vis-à-vis the actual consumption levels of its stations.

Approved V/s Actual Auxiliary Consumption (%) for FY 2017-18

Table 2.1.3.1 in % As per MPERC MPPGCL Difference Name of TPS Regulation,2015 Actuals

ATPS Chachai PH-3 9.00% 9.53% 0.53% STPS Sarni PH-2 & 3 10.00% 10.53% 0.53% STPS Sarni PH-4 8.50% 9.55% 1.05% SGTPS Birsinghpur PH-1 & 2 9.00% 10.36% 1.36% SGTPS Birsinghpur PH-3 6.00% 6.53% 0.53% SSTPP Khandwa PH-1 5.25% 6.5% 1.3%

2.1.4 Station Heat Rate The comparison of approved SHR as approved in Regulations, 2015 vis-a-vis actual SHR for FY 2017-18is shown in table below:

Approved V/s Actual Station Heat Rates for FY 2017-18

Table 2.1.4.1 in kCal/kWh As per MPERC MPPGCL Difference Name of TPS Regulation,2015 Actuals

ATPS Chachai PH-3 2450 2402 -48 STPS Sarni PH-2 & 3 2700 3117 417

STPS Sarni PH-4 2400 2526 126

SGTPS Birsinghpur PH-1 & 2 2600 2716 116

SGTPS Birsinghpur PH-3 2425 2416 -9

SSTPP Khandwa PH-1 2384 2656 272

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2.1.5 Transit & Handling Losses The comparison of approved Transit Losses as approved in Regulations,2015 vis-a-vis actual Transit Losses for FY 2017-18is shown in table below:

Approved V/s Actual Transit & Handling Losses for FY 2017-18

Table 2.1.5.1 in % As per MPERC MPPGCL Difference Name of TPS Regulation,2015 Actuals

ATPS Chachai PH-3 0.80% 0.01% -0.79% STPS Sarni PH-2 & 3 0.80% 0.45% -0.35% STPS Sarni PH-4 0.80% 0.45% -0.35% SGTPS Birsinghpur PH-1 & 2 0.80% 0.41% -0.39% SGTPS Birsinghpur PH-3 0.80% 0.41% -0.39% SSTPP Khandwa PH-1 0.80% 0.75% -0.05%

2.1.6 Specific Oil Consumption

In the table below targets of specific oil consumption as approved in Regulations,2015vis-à-vis the actual achieved by MPPGCL during FY 2017-18 have been elaborated.

Approved V/s Actual Specific Oil Consumption Table 2.1.6.1 in ml/kWh

As per MPERC MPPGCL Difference Name of TPS Regulation,2015 Actuals

ATPS Chachai PH-3 1.00 0.18 -0.82 STPS Sarni PH-2 & 3 1.75 1.88 0.13 STPS Sarni PH-4 0.50 0.41 -0.09 SGTPS Birsinghpur PH-1 & 2 1.15 0.69 -0.46 SGTPS Birsinghpur PH-3 1.00 0.82 -0.18 SSTPP Khandwa PH-1 0.50 1.11 0.61

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2.1.7 Gains from Controllable Parameters In totality MPPGCL has not achieved any financial gains on account of controllable parameters. Hence there is no sharing of gains with beneficiaries.

2.2 Hydro Stations The generation from Hydro power stations depends upon the rains in catchments area of dams of respective power stations. The actual Gross generation in MU of Hydro Power Stations for the year 2017-18 is shown in the table below:

Actual Gross Generation (MU) for FY 2017-18

Table 2.2.1 in MU

S. Hydro Power Station / Actual Gross Design Energy Diff. No. Units Generation

1 Gandhi Sagar HPS 421 351 -69

2 Pench HPS 315 160 -156

3 Rajghat HPS 88 58 -29

4 Bargi HPS 508 127 -381

5 Bansagar 1,2&3 HPS 1156 670 -486

6 Bansagar 4 HPS 80 70 -10

7 Birsinghpur HPS 52 26 -26

8 Madhikheda HPS 74 23 -52

The Plant Availability Factor of Hydro plants stations as approved in Regulations,2015 vis-a-vis actual achieved by MPPGCL during FY 2017-18have been elaborated below.

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Normative V/s Actual Plant Availability Factor Table 2.2.2 in % As per MPERC MPPGCL S. No. Hydro Power Station / Units Difference Regulation,2015 Actuals 1 Gandhi Sagar HPS 85.00% 82.32% -2.68% 2 Pench HPS 85.00% 85.14% 0.14% 3 Rajghat HPS 85.00% 32.24% -52.76% 4 Bargi HPS 85.00% 88.23% 3.23% 5 Bansagar 1,2&3 HPS 85.37% 87.00% 1.63% 6 Bansagar 4 HPS 85.00% 96.24% 11.24% 7 Birsinghpur HPS 85.00% 56.99% -28.01% 8 Madhikheda HPS 85.00% 82.66% -2.34%

2.3 Constraints on generation of electricity from Hydro Power Stations of MPPGCL

2.3.1 The Hydro Power Station wise major constraints which affect Availability and recovery of Capacity Charges, even when units are available, are detailed as under:

(i) Gandhi Sagar HPS , Gandhisagar -

Gandhi Sagar HPS is an interstate project of M.P. & Rajasthan. The dam is controlled by Water Resources Department (WRD) of Rajasthan. Water stored in the reservoir is used for irrigation purpose and generation of electricity. WRD Rajasthan decides water releases for generation purpose. In the downstream of Gandhi Sagar HPS, there are Rana Pratap Sagar HPS and Jawahar Sagar HPS of Rajasthan. The water release from Gandhi Sagar and generation thereof is solely dependent on requirement of water by RPS HPS, JS HPS and Kota barrage.

There is no control of MPPGCL on water releases from these reservoirs; resulting in under recovery of capacity charges from Gandhi Sagar HPS, despite of availability of machine for generation.

23 MPPGCL True-up Tariff Petition for FY 2017-18

(ii) Pench HPS, Totladoh -

Pench HPS is Inter State Project of the state of Madhya Pradesh and Maharashtra, where dam is controlled by Department of Soil & Water Management, Maharashtra, which regulates thewater discharge. In the downstream of Pench HPS Totladoh, there is Navegaon-Kheri Reservoir from where water supply of Khapar Kheda TPS and for irrigation / drinking water of Nagpur Distt. is met. The release of water is controlled as per downstream requirement.

There is no control of MPPGCL on authorities of Soil & Water Management, Maharashtra, who decide releases of water from these reservoirs, resulting in under recovery of capacity charges from Pench HPS despite availability of machines.

Rajghat HPS Chanderi -

Rajghat HPS is an Inter State Multipurpose Project of Government of Madhya Pradesh and Government of Uttar Pradesh, where the dam is controlled by Betwa River Board, Jhansi, a Govt. of India entity.

Generally, the Reservoir Level reaches to Minimal Draw Down Level (MDDL) in the month of December / January every year due to requirement of water for irrigation, therefore no generation is possible beyond December/January every year.

There is no control of MPPGCL on authorities of Betwa River Board, Jhansi, who decides water releases from these reservoirs. This is resulting in under recovery of capacity charges from Rajghat HPS despite of availability of machines.

24 MPPGCL True-up Tariff Petition for FY 2017-18

Bansagar Complex -

Bansagar Project is multipurpose Inter State Project of three States viz. Madhya Pradesh, Uttar Pradesh& Bihar. The water stored in Bansagar Dam is shared in ratio of 2 : 1 : 1 in MP , Bihar & UP State.

The share of Bihar State is released through Bansagar–III HPS, Devlond after generation in to the downstream of the river. The share of MP is used in generation through Bansagar –IV HPS Jhinna, Bansagar – II Silpara &Bansagar-I (Tons) HPS Sirmour and for irrigation and drinking water supply of Rewa, Satna, Shahdol and adjoining area. The Bansagar Complex consists of following Hydro Power Stations:

(a) Bansagar-1 (Tons) HPS :-

This Power House uses water from Behar Barrage and Tons Barrage during rainy season. After that, water from Bansagar Dam is used for generation of electricity. The release of water from Bansagar Dam is regulated by WRD Govt. of MP.

(b) Bansagar-2(Silpara)HPS :-

This Hydro Power House is Canal based. The release of water from Bansagar Dam to this canal (Common Water Carrier – CWC) is regulated by WRD Govt. of MP.

(c) Bansagar –3(Devlond)HPS :-

The release of water is regulated by WRD Govt. of MP as per the requirement of Bihar State. Thus the generation of electricity from this Hydro Power House is governed by releases of water as per the requirement of Bihar State. Accordingly this power station runs for on an average 4 months in a Financial Year, depending on quantum of water required by Bihar State.

25 MPPGCL True-up Tariff Petition for FY 2017-18

(d) Bansagar –4(Jhinna) Small Hydro Project(SHP) :-

The release of water from Bansagar Dam is regulated by WRD Govt. of MP. The MDDL for the machines is 329.00 Mtr. which reaches in the month of December / January every year as such this power house practically runs for a period of about four months only.

Release of water in Bansagar Complex is not in the hands of the MPPGCL. Though the machines remain available for generation, the MPPGCL suffers from under recovery of capacity charges.

(iii) Bargi HPS, Bargi Nagar -

There is no control of MPPGCL on authorities of RABL Sagar LBM Dam section of WRD, Govt. of MP, who decides water releases from this reservoir resulting in under recovery of capacity charges from Bargi HPS despite of availability of machines.

(iv) Birsinghpur HPS -

The reservoir at Birsinghpur is constructed to meet out the requirement of cooling water for Sanjay Gandhi Thermal Power Station (PH-I, II & III) and for its natural cooling by circulating the water back into the reservoir. The Birsinghpur HPS (1x20MW) was constructed for running the power house mainly during rainy season only, utilizing spill-off water and to feed power for BLACK START of SGTPS Birsinghpur during grid collapse situation. Considering requirement of water for SGTPS, the Birsinghpur HPS is run upto November / December every year. For rest of period, inspite of availability of unit, there is no recovery of capacity charges.

26 MPPGCL True-up Tariff Petition for FY 2017-18

(v) Madhikheda HPS -

Madhikheda Hydel Power Station is a part of Sindh River Project, Phase – II (Multi-purpose Scheme) located in District Shivpuri, Madhya Pradesh. It is located 30 Km from Shivpuri.

Release of water for generation is being regulated by WRD, Govt. of MP. There is no control of MPPGCL on authorities of WRD, Govt. of MP who decides water releases from this reservoir resulting in under recovery of capacity charges from Madhikheda HPS despite of availability of machines from MPPGCL side.

2.3.2Recovery of Fixed charges of Hydro Power Stations of MPPGCL.

Previously, from FY-07 to FY-09 Fixed charges of hydro power stations were recoverable to generator on demonstration of availability of machines of hydro stations by way of Capacity Index (C.I.).

In order to protect the interest of beneficiary, CERC has modified the approach. Recovery of 50% of Fixed charges (termed as Capacity Charges), was linked to Normative Annual Plant Availability Factor (NAPAF), for which demonstration of availability of machines was required. Recovery of balance 50% of Fixed charges was permitted by way of Energy charge. This practice is still continued by CERC.

The generating stations were facing difficulty due to reduction in their actual availability considering various restrictions on release of water imposed by local administration/ Water resource Department and other factors.

To protect their interest as well as the interest of beneficiary, CERC in FY-10 while setting up of norms has reconsidered the definition of availability of hydro stations as well as reduced the target/norms for availability factor for various hydro stations under its control w.e.f. FY10 - FY14 and FY15 – FY19,as obvious from table below:-

27 MPPGCL True-up Tariff Petition for FY 2017-18

CI Five Yr NAPAF Norms Average Target FY Station Type Diff. for FY09-FY13 10-14 & FY 04-09 FY 15-19 Salal Power Station ROR 90.0% 59.8% 60.0% -0.2% Tanakpur Power Station ROR 90.0% 60.7% 55.0% 5.7% Uri Power Station ROR 90.0% 75.8% 70.0% 5.8% Sewa-II Power Station Pondage 85.0% 82.3% 80.0% 2.3% THDC Pondage 85.0% 81.3% 77.0% 4.3% Kopili Stage- I Storage 85.0% 71.9% 79.0% -7.1% DHEP Storage 85.0% 75.2% 73.0% 2.2% Khadong Storage 85.0% 68.6% 69.0% -0.4% Kopili Stg II Storage 85.0% 70.3% 69.0% 1.3%

MPERC follows these guidelines of CERC, by adopting the similar methodology from time to time with change of regulations. However, while changing the definition of availability factor of hydro power stations, Hon’ble MPERC has not considered the actual availability factor of past years attained by the hydro stations, giving cognizance to practical conditions, as done by CERC. Due to this, the average actual Capacity Index achieved by MPPGCL during FY-07 to FY-09 has reduced by about 20% in form of Plant Availability Factor for the following years as obvious from the table below:-

Capacity Index % Availability Factor % Change Station FY-07 FY-08 FY-09 Avg FY-12 FY 13 FY 14 FY 15 FY 16 FY 17 Avg Gandhi 93.71 94.8 95.23 94.58 72.55 71.23 92.75 65.61 47.21 92.91 73.71 -20.87 Sagar Pench 89.16 90.35 94.64 91.38 88.74 86.31 86.74 81.94 90.54 86.8 86.85 -4.53 Bargi 94.22 87.82 93.79 91.94 89.79 88.45 90.07 80.1 84.13 90.36 87.15 -4.79 Tons 87.55 88.55 85.98 87.36 78.19 87.65 91.6 89.62 78.80 89.91 85.96 -1.40 Silpara 88.62 96.31 89.04 91.32 52.55 71.19 90.64 58.76 34.22 75.79 63.86 -27.46 Devlond 96.88 97.35 97.55 97.26 11.73 37.05 25.4 21.78 19.25 95.45 35.11 -62.15 Jhinna 91.34 96.86 97.12 95.11 60.05 89.94 94.34 70.98 59.43 89.52 77.38 -17.73 Birsinghpur 99.66 99.95 98.36 99.32 60.11 76.92 85.48 87.13 64.48 98.36 78.75 -20.57 Rajghat 91.75 96.08 95.10 94.31 35.31 21.8 19.37 24.28 11.31 21.46 22.26 -72.06 Madhikheda 93.29 99.93 87.05 93.42 72.8 65.77 59.07 55.59 50.12 91.65 65.83 -27.59

28 MPPGCL True-up Tariff Petition for FY 2017-18

Instead, the Hon’ble Commission has continued the value of Capacity Index in % for FY-07 to FY-09 as Normative Annual Plant Availability Factor in % for FY-13 to FY-19 as detailed in the table below:-

Capacity Index in % (C.I.) NAPAF in % MPERC Norms Hydro Station MPERC Norms FY-07 FY-08 FY-09 FY-13 FY-14 FY-15 FY 16 FY 17 FY 18 FY 19 Gandhi Sagar 85 85 85 85 85 85 85 85 85 85 Pench 85 85 85 85 85 85 85 85 85 85 Bargi 85 85 85 85 85 85 85 85 85 85 Bansagar-1 (Tons) 85 85 85 85 85 85 85 85 85 85 Bansagar-2 (Silpara) 90 90 90 90 90 90 90 90 90 90 Bansagar-3 (Devlond) 85 85 85 85 85 85 85 85 85 85 Bansagar-4 (Jhinna) 85 85 85 85 85 85 85 85 85 85 Birsinghpur 85 85 85 85 85 85 85 85 85 85 Rajghat 85 85 85 85 85 85 85 85 85 85 Madhikheda 85 85 85 85 85 85 85 85 85 85

This has resulted in under recovery of huge amount of Fixed Charges without any shortcomings on part o MPPGCL. MPPGCL has been repeatedly requesting Hon’ble MPERC to either:-

(a) continue with the original system of Capacity Index or

(b) adopt the approach of availability factor in full as done by CERC.

MPPGCL in its earlier True-up petitions has pointed out the constraints on generation of electricity from Hydro Power Stations of MPPGCL to Hon’ble Commission.

Further, MPPGCL while submitting comments on draft Regulations, 2015 for control period FY 2016-17 to FY 2018-19has represented the criticality of issue and requested for adapting the methodology of Hon’ble CERC.

Moreover, MPPGCL in a separate petition (No. 04 of 2016) filed for seeking directives for relaxation & removal of difficulty under proviso 54.1 & 55.1 of MPERC Regulations, 2015 had covered the above mentioned issue in depth. The Hon’ble Commission in its order dated 06.05.2016 has stated in para 5 (vi) that the matter is sub-judice in the

29 MPPGCL True-up Tariff Petition for FY 2017-18

Hon’ble Supreme Court of India under C.A. No. 6320 of 2011 admitted by Apex Court, therefore the same cannot be dealt or discussed in this order.

It is prudent to submit that in a similar matter, MPPGCL in its submission vide letter No. 761 dated18.06.2016 on queries raised Hon’ble Commission in Multi Year Tariff Petition No. 08 of 2016 had informed Hon’ble Commission that Hon’ble Supreme Court of India has admitted Civil Appeal No. CA – 7620 of 2011 in the matter relating to computation of Energy (Variable Charges) on “NCV” of coal on “As Fired basis” v/s “GCV” of Coal on ”As fired basis”. The matter is still Sub-judiced.

However, the Hon’ble Commission in the Multiyear Tariff Order for controls period FY 2016-17 to FY 2018-19 has not considered the above submission and determined the energy charges on the basis of “GCV of Coal on as Received basis” which is different from its own stand taken before Hon’ble Supreme Court for “GCV of Coal on as Fired basis” in said civil appeal.

In view of above facts & constrains and proviso 40.3 of Regulations,2015, MPPGCL humbly request Hon’ble Commission to kindly take cognizance of above mentioned critical issues related to Hydel Power Stations of MPPGCL and opt the CERC methodology of determination of norm for NAPAF in full or allow MPPGCL to recover of full Capacity Charges for Hydro stations of MPPGCL on Capacity Index basis.

MPPGCL humbly submits before the Hon’ble Commission to kindly appreciate the difficulty of MPPGCL and in addition to the modifications/amendments considered in favor of beneficiary, which are in line with national practices, ignoring the sub-judice nature of issues, may please also take similar decisions which provide justice to MPPGCL as well and are in line with national practices.

30 MPPGCL True-up Tariff Petition for FY 2017-18

3. Energy Charges (Variable Charges)

The Energy Charges (Variable Charges) has been billed in accordance to proviso 28, 29 & 36.6of MPERC (Terms & Condition for determination of Generation Tariff) (Revision-III) Regulation, 2015. Therefore, no truing up of Energy Charges has been considered in this petition.

31 MPPGCL True-up Tariff Petition for FY 2017-18

4. Fixed Cost – 4.1 O&M Expenses

In MPERC (Terms and conditions for determination of Generation Tariff) Regulations, 2015, MPERC has prescribed norms for O & M expenses as a function of the capacity of the plant. The O&M expenses as per provision 35.7, 35.8, 35.9 & 35.10 of the MPERC Tariff Regulations, 2015 comprises of Employee cost, Repair & Maintenance (R&M) Cost and Administrative & General (A&G) Cost.

For the year FY 2017-18, O&M Charges in Rs. Lakh /MW specified by the Commission for various Thermal& Hydro power station of MPPGCL are tabulated below:-

Table No. 4.1.1 Amount in L Rs/ MW/ Year.

Approved by Thermal Station MPERC for FY 2017-18

ATPS, Chachai PH-3 25.72 PH-2 25.72 STPS, Sarni PH-3 25.72 PH-4 28.70 PH-1 25.72 SGTPS, Birsinghpur PH-2 25.72 PH-3 20.65 SSTPP Stage-1 Khandwa PH-1 17.30

Hydro Power Stations All 10.28

The Hon’ble Commission, in True-up Tariff order for FY 2011-12 has considered the O&M expenses as per norms specified under clause 36.1 of MPERC’s Regulations, 2009. In this True-up petition, same strategy has been followed to work out the O&M expenses.

32 MPPGCL True-up Tariff Petition for FY 2017-18

4.1.1 The O&M expenditure as per Hon’ble Commission’s Tariff order for FY 2017-18 before applying Actual Availability is tabulated below:

Table No. 4.1.1.1 in Rs. Crores S.No. Station Order for Page As per Petition No. MPERC No. orders/ Norms 1 ATPS PH-3 08/2016 55 54.01 2 STPS PH-2&3 08/2016 55 213.48 3 STPS PH-4 08/2016 55 143.50 4 SGTPS PH-1&2 08/2016 55 216.05 5 SGTPS PH-3 08/2016 55 103.25 6 SSTPP PH-1 08/2016 55 207.60 7 Total Thermal 937.89 8 Gandhi Sagar 08/2016 55 11.82 9 Pench 08/2016 55 16.45 10 Rajghat 08/2016 55 4.63 11 Bargi 08/2016 55 9.25 12 Bansagar PH-1,2&3 08/2016 55 41.63 13 Bansagar PH-4 08/2016 55 2.06 14 Birsinghpur 08/2016 55 2.06 15 Madhikheda 08/2016 55 6.17 16 Total Hydro 94.06 Total 1031.95

The GoMP vide letter No. 6916/2017/13 dated 31.10.2017has issued order for Pay revision of employees. MPPGCL vide order No. 4974 dated 29.12.2017 has adopted Seventh pay commission from 01.01.2016. The arrears on account of pay revision for the period 01.01.2016 to 31.12.2017 have been booked in Audited Books of Accounts for FY 2017- 18. MPPGCL has claimed the same in the instant petition in accordance with proviso 35.7 & 35.9 of MPERC Regulations, 2015 in the Chapter- 4.2 -Other Charges.

It is to mention that the Hon’ble Commission at Para 105 of MYT order dated 14.07.2016 for Control period FY 17 to FY 19 has stated as under:-

33 MPPGCL True-up Tariff Petition for FY 2017-18

“With regard to impact of 7th pay Commission, the same shall dealt with in accordance with the Regulation 35.5 of MPERC Regulations 2015, at an appropriate stage of implementation of 7th pay commission after prudence check on the details and documents filed by MPPGCL on satisfaction of the Commission.”

As evident from above, the impact of 7th pay commission was not considered by the Hon’ble Commission while prescribing the O&M Norm for the Control period FY 2016-17 to FY 2018-19.

Accordingly, in the instant petition, MPPGCL has worked out the Lakh/MW impact 7th pay commission in O&M Norms as tabulated in table below:-

Table No.4.1.1.2 Amount in Rs. Lakhs Stations 7th Pay Amount Considered Installed Lakh/ MW/ Revision per in petition Capacity Per annum Amount annum in MW (for 24 Months) as per Audited Accounts 1 ATPS PH-3 1607 803 803 210 3.83 2 STPS PH-2&3 2539 1269 1269 830 1.53 3 STPS PH-4 1260 630 630 500 1.26 4 SGTPS PH-1 & 2 1510 755 755 840 0.90 5 SGTPS PH-3 899 449 449 500 0.90 6 SSTPP PH-1 2132 1066 1066 4080 0.26 7 Total Thermal 9945 4973 4973 6960 8 Gandhi Sagar 120 60 60 58 9 R P Sagar 38 19 10 J Sagar 17 9 11 Left Bank Canal 2 1 12 Pench 118 59 59 107

13 Rajghat 62 31 31 23 14 Bargi 177 88 88 90 15 Bansagar Complex 759 380 380 425 16 Birsinghpur 7 3 3 20 17 Madhikheda 122 61 61 60 18 Total Hydel 1423 711 683 782 0.87 Total 11368 5684 5656

34 MPPGCL True-up Tariff Petition for FY 2017-18

Accordingly, he differential O&M amount for the period 01.01.2018 to 31.08.2018 in Chapter 4.1- O&M Expenses.

Table No.4.1.1.3 Amount in Rs. Crores Differential O&M Installed O&M for Stations Lakh/MW/Per Capacity for 3 annum MW Months 1 ATPS PH-3 3.83 210 2.01 2 STPS PH-2&3 1.53 830 3.17 3 STPS PH-4 1.26 500 1.57 4 SGTPS PH-1 & 2 0.90 840 1.89 5 SGTPS PH-3 0.90 500 1.12 6 SSTPP PH-1 0.26 4080 2.66 7 Total Thermal 12.43 8 Gandhi Sagar (100% basis) 0.87 115 0.25 9 Pench(100% basis) 0.87 160 0.35 10 Rajghat(100% basis) 0.87 45 0.10 11 Bargi 0.87 90 0.20 12 Bansagar PH-1,2&3 0.87 405 0.88 13 Bansagar PH-4 0.87 20 0.04 14 Birsinghpur 0.87 20 0.04 15 Madikheda 0.87 60 0.13 16 Total Hydel 2.00 Total 14.43

Considering above, the Comparison of O&M expenditure as per Hon’ble Commission’s MYT order and as considered by MPPGCL on norms including the differential O&M amount on account of 7Th pay Commission, before applying Actual Availability is tabulated below:

Table No. 4.1.1.24 in Rs. Crores As per As MPERC considered Diff. S.No. Station orders/ by MPPGCL Norms on Norms 1 ATPS PH-3 54.01 56.02 2.01 2 STPS PH-2&3 213.48 216.65 3.17 3 STPS PH-4 143.50 145.07 1.57 4 SGTPS PH-1&2 216.05 217.94 1.89 5 SGTPS PH-3 103.25 104.37 1.12 6 SSTPP PH-1 207.60 210.26 2.66 7 Total Thermal 937.89 950.32 12.43

35 MPPGCL True-up Tariff Petition for FY 2017-18

As per As MPERC considered Diff. S.No. Station orders/ by MPPGCL Norms on Norms 8 Gandhi Sagar 11.82 12.07 0.25 9 Pench 16.45 16.80 0.35 10 Rajghat 4.63 4.72 0.10 11 Bargi 9.25 9.45 0.20 12 Bansagar PH-1,2&3 41.63 42.52 0.88 13 Bansagar PH-4 2.06 2.10 0.04 14 Birsinghpur 2.06 2.10 0.04 15 Madhikheda 6.17 6.30 0.13 16 Total Hydro 94.06 96.06 2.00 Total 1031.95 1046.38 14.43

The Comparison of O&M expenditure as per Hon’ble Commission’s MYT order and as considered by MPPGCL on norms including the differential O&M amount on account of 7Th pay Commission, after applying Actual Availability is tabulated below:

S.No. Station As per As Diff. MPERC considered Rs. orders/ by MPPGCL Crores. Norms on Actual Availability 1 ATPS PH-3 54.01 56.02 2.01 2 STPS PH-2&3 213.48 166.53 -46.94 3 STPS PH-4 143.50 137.91 -5.59 4 SGTPS PH-1&2 216.05 178.46 -37.59 5 SGTPS PH-3 103.25 89.09 -14.16 6 SSTPP PH-1 207.60 161.85 -45.75 7 Total Thermal 937.89 789.86 -148.03 8 Gandhi Sagar 11.82 11.88 0.06 9 Pench 16.45 16.81 0.36 10 Rajghat 4.63 3.26 -1.37 11 Bargi 9.25 9.63 0.38 12 Bansagar PH-1,2&3 41.63 42.92 1.29 13 Bansagar PH-4 2.06 2.23 0.18 14 Birsinghpur 2.06 1.75 -0.30 15 Madhikheda 6.17 6.21 0.04 16 Total Hydro 94.06 94.70 0.64 Total 1031.95 884.56 -147.38

36 MPPGCL True-up Tariff Petition for FY 2017-18

4.1.2 COMPENSATION ALLOWANCE

The Hon’ble Commission in proviso 23 of the Regulation RG-26(III) of 2015 has also permitted “Compensation Allowances” to the Thermal Generating stations depending upon their age to meet the requirement of capital nature of minor assets. Accordingly, Compensation Allowance for various Thermal Power Stations of MPPGCL has been worked out as described below:

SGTPS Birsinghpur: - The units No.1 & 2 are older than 21 years, therefore the compensation allowance @ 1.00Lakhs/MW/Year has been considered. The age of the Unit No.3 & 4 will be in the age group of 11 to 15 years therefore compensation has been considered @ 0.50 Lakhs/MW/Year.

Table No.4.1.2.1 Amount in Rs. Crores Age of Rate Capacity Power House PH as on in Total in MW 01.04.17 Lakhs/MW ATPS PH-3 210.00 0 - 10 0.00 0.00 STPS PH 2&3 830.00 > 25 0.00 0.00 STPS PH-4 500.00 0 - 10 0.00 0.00 SGTPS PH-1 420.00 21 - 25 1.00 4.20 SGTPS PH-2 420.00 16 - 20 0.50 2.10 SGTPS PH-3 500.00 0 - 10 0.00 0.00 SSTPP PH-1 1200.00 0 - 10 0.00 0.00 Thermal (100%) 4080.00 6.30

The total amount of Compensation Allowance worked out before applying Actual Availability is elaborated in the table below:- Compensation Allowance – FY 2017-18

Table No.4.1.2.2 Amount in Rs. Crores As per As MPERC considered S. No Particulars Regulation by Diff. for FY 18 MPPGCL on Norms

1 ATPS 3 0.00 0.00 0.00 2 ATPS 0.00 0.00 0.00 3 STPS 2 0.00 0.00 0.00 Thermal 4 STPS 3 0.00 0.00 0.00

37 MPPGCL True-up Tariff Petition for FY 2017-18

As per As MPERC considered S. No Particulars Regulation by Diff. for FY 18 MPPGCL on Norms

5 STPS 4 0.00 0.00 0.00 6 STPS 0.00 0.00 0.00 7 SGTPS 1 4.20 4.20 0.00 8 SGTPS 2 2.10 2.10 0.00 9 SGTPS 3 0.00 0.00 0.00 10 SGTPS 6.30 6.30 0.00 11 SSTPP PH-1 0.00 0.00 0.00 12 SSTPP 0.00 0.00 0.00 13 Total Thermal 6.30 6.30 0.00

The total amount of Compensation Allowance worked out after applying Actual Availability is elaborated in the table below:- Compensation Allowance – FY 2017-18 Table No.4.1.2.3 Amount in Rs. Crores As As per considered MPERC by S. No Particulars Regulation MPPGCL Diff. for FY 18 on Actual Availability 1 ATPS 3 0.00 0.00 0.00 2 ATPS 0.00 0.00 0.00 3 STPS 2 0.00 0.00 0.00 4 STPS 3 0.00 0.00 0.00 5 STPS 4 0.00 0.00 0.00 6 STPS 0.00 0.00 0.00 7 SGTPS 1 4.20 3.44 -0.76

Thermal 8 SGTPS 2 2.10 1.72 -0.38 9 SGTPS 3 0.00 0.00 0.00 10 SGTPS 6.30 5.16 -1.14 11 SSTPP PH-1 0.00 0.00 0.00 12 SSTPP 0.00 0.00 0.00 13 Total Thermal 6.30 5.16 -1.14

38 MPPGCL True-up Tariff Petition for FY 2017-18

4.1.3 Special Allowance:-

The Hon’ble Commission in proviso 21 read with proviso 22 of the Regulation RG-26(III) of 2015for Renovation & Modernization has provided that in case of thermal generating stations, the Generating Company may by its discretion can avail a special allowance either for a unit or a group of units as compensation for meeting the requirement of expenses including Renovation &Modernization works beyond the useful life of the generating stations.

Further, Hon’ble Commission vide order dated 14.07.2016 at Para 114 page 58, has continued the Special Allowance for Unit No. 6,7,8&9 of STPS, Sarni. Accordingly, the Trueing up of the same has been considered in the instant petition.

The total amount of Special Allowance before applying Actual Availability is elaborated in the table below:- Special Allowance FY 2017-18 Table No.4.1.3.1 Amount in Rs. Crores.

As per MPERC S. No Particulars Order for FY 18

1 STPS PH 2&3 82.05

The total amount of Special Allowance worked out after applying Actual Availability is elaborated in the table below:-

Table No.4.1.3.2 Amount in Rs. Crores. As per MPERC MPPGCL as per S. No Particulars Order for Diff. FY 18 actual Availability

1 STPS PH 2&3 82.05 63.07 -18.98

MPPGCL humbly request Hon’ble Commission to kindly consider the O&M expenses, Compensation Allowance and Special Allowances as elaborated above.

39 MPPGCL True-up Tariff Petition for FY 2017-18

4.2 Other Charges

Other Charges comprises of Rent, Rates & Taxes, MPERC Fees& Publication Charges, Entry Tax on Repair &Maintenance, Water Charges and Cost of Chemical & Consumable. Water Charges which are payable to Government have been paid based on rates specified by GoMP. Rent, Rates and Taxes for power stations has been taken on actual.

As per proviso 35.4 of the Regulation-2015 read with MYT Order dated 14.07.2016,the expenditure towards actual Pension & Terminal benefits shall be claimed by Transmission Licensee i.e. MPPTCL on ‘pay as you go’ principal, subject to true-up in each year on availability of actual figures. Accordingly MPPGCL has not claimed these expenses in this True-up tariff petition.

4.2.1 MPERC Fees & Publication Expenses

MPERC Generation Tariff Regulation 2015 provides claim of MPERC Fee and Publication Expenses on actual. The details of Fees actually paid to MPERC for various petitions and Publication expenses thereof incurred during FY 2017-18 are shown in table below: Table No.4.2.1.1 in Rs. Crores MPERC Fee S.No. Power Station + Publication Exp. 1 ATPS PH-3 0.077 2 STPS PH-2&3 0.334 3 STPS PH-4 0.152 4 SGTPS PH-1&2 0.256 5 SGTPS PH-3 0.152 6 SSTPP PH-1 0.365 7 Total Thermal 1.337 8 Gandhi Sagar HPS 0.035 9 Pench HPS 0.049 10 Rajghat HPS 0.014 11 Bargi HPS 0.027 12 Bansagar PH-1,2&3 HPS 0.123 13 Bansagar PH-4 0.006 14 Birsinghpur HPS 0.006 15 Madhikheda HPS 0.018 16 Total Hydro 0.278 Total 1.615

40 MPPGCL True-up Tariff Petition for FY 2017-18

4.2.2 Cost of Chemicals& Consumables

The Regulation 35.6 & 35.9 provides for claiming Cost of Chemicals and Consumables, separately on actual. Accordingly the cost of Chemicals and Consumables as captured in audited Books of accounts for FY 2017-18at point No. 28.2 , Sl.No.2&3 page 80,factored to represent 100% capacity operated by MPPGCL has been worked out. The Power station wise details of Cost of

Chemicals and Consumables in FY 2017-18 are shown in Table below:-

Table No.4.2.2.1 in Rs. Crores

S. Cost of Chemicals Power Station & No. Consumables

1 ATPS PH-3 0.98 2 STPS PH-2&3 2.49 3 STPS PH-4 1.14 4 SGTPS PH-1&2 1.56 5 SGTPS PH-3 0.93 6 SSTPP PH-1 2.59 7 Total Thermal 9.68 8 Gandhi Sagar HPS 0.51 9 Pench HPS 0.03 10 Rajghat HPS 0.24 11 Bargi HPS 0.03 12 Bansagar PH-1,2&3 HPS 0.97 13 Bansagar PH-4 0.05 14 Birsinghpur HPS 0.02 15 Madhikheda HPS 0.04 16 Total Hydro 1.88 Total 11.56

4.2.3 Water Charges

Water Charges are payable to Government on rates specified by GoMP. The Regulation 52 provides for claiming Water Charges separately on actual. Accordingly the Water Charges as captured in audited Books of accounts for FY 2017-18 at point No. 28.2 , Sl.No.1 on page 80, factored to represent 100%

41 MPPGCL True-up Tariff Petition for FY 2017-18 capacity operated by MPPGCL has been worked out. The Power station wise details of Water Charges paid in FY 2017-18 are shown in Table below:-

Table No.4.2.3.1 in Rs. Crores S. Water Power Station No. Charges 1 ATPS PH-3 3.13 2 STPS PH-2&3 2.98 3 STPS PH-4 2.93 4 SGTPS PH-1&2 7.11 5 SGTPS PH-3 4.23 6 SSTPP PH-1 18.06 7 Total Thermal 38.44 8 Gandhi Sagar HPS 12.35 9 Pench HPS 0.03 10 Rajghat HPS 0.00 11 Bargi HPS 3.25 12 Bansagar PH-1,2&3 HPS 8.58 13 Bansagar PH-4 0.42 14 Birsinghpur HPS 0.31 15 Madhikheda HPS 0.78 16 Total Hydro 25.73 Total 64.17

4.2.4 Rent, Rates &Taxes

Rent, Rates and Taxes for power stations of MPPGCL has been taken on actual basis. The Regulation 35.7 & 35.9 provides for claiming Rent, Rate & Taxes separately on actual. Accordingly the Rent, Rate & Taxes as captured in audited Books of accounts for FY 2017-18at point No.32.1 Sl. No. 1&3 page 86,factored to represent 100% capacity operated by MPPGCL has been worked out. The Power station wise details Rent, Rate & Taxes in FY 2017-18 are shown in table below:

42 MPPGCL True-up Tariff Petition for FY 2017-18

Table No.4.2.4.1 in Rs. Crores S. Rent, Rates & Power Station No. Taxes 1 ATPS PH-3 0.03 2 STPS PH-2&3 0.20 3 STPS PH-4 0.19 4 SGTPS PH-1&2 0.00 5 SGTPS PH-3 0.00 6 SSTPP PH-1 0.17 7 Total Thermal 0.58 8 Gandhi Sagar HPS 0.06 9 Pench HPS 0.00 10 Rajghat HPS 0.00 11 Bargi HPS 0.00 12 Bansagar PH-1,2&3 HPS 0.11 13 Bansagar PH-4 0.01 14 Birsinghpur HPS 0.00 15 Madhikheda HPS 0.01 16 Total Hydro 0.19 Total 0.77

4.2.5 Arrears of Wage Revision.

The Regulation 35.7 & 35.9 provides for claiming Arrears of wage Revisions separately on actual. The GoMP has issued order for Pay revision of employee vide letter No. 6916/2017/13 dated 31.10.2017. MPPGCL vide order No. 4974 dated 29.12.2017 has adopted Seventh pay commission from 01.01.2016.

The arrears on account of pay revision for the period 01.01.2016 to 31.12.2017 as captured in Audited Books of Accounts for FY 2016-17 at point No 29.1, Sl. No. 2 page 82 factored to represent 100% capacity operated by MPGGCL has been worked out.

The Power station wise details of Arrears of wage Revisions in FY 2017-18 are shown in table below:

43 MPPGCL True-up Tariff Petition for FY 2017-18

Table No.4.2.5.1 in Rs. Crores Wage Revision S.No. Power Station Arrears 1 ATPS PH-3 16.07 2 STPS PH-2&3 25.39 3 STPS PH-4 12.60 4 SGTPS PH-1&2 15.10 5 SGTPS PH-3 8.99 6 SSTPP PH-1 21.32 7 Total Thermal 99.45 8 Gandhi Sagar HPS 2.41 9 Pench HPS 1.77 10 Rajghat HPS 1.25 11 Bargi HPS 1.77 12 Bansagar PH-1,2&3 HPS 7.24 13 Bansagar PH-4 0.36 14 Birsinghpur HPS 0.07 15 Madhikheda HPS 1.22 16 Total Hydro 16.08 Total 115.53

4.2.6 Leave Encashment

The Regulation 35.7 & 35.9 provides for claiming Leave Encashment separately on actual. Accordingly the Leave Encashment as captured in audited Books of accounts for FY 2017-18 at point No. 29.1, Sl. No. 14 page 82,factored to represent 100% capacity operated by MPPGCL has been worked out. The Power station wise details of Leave Encashment in FY 2017-18 are shown in table below:

Table No.4.2.6.1 in Rs. Crores

S. EL Power Station No. Encashment

1 ATPS PH-3 8.425 2 STPS PH-2&3 11.285 3 STPS PH-4 6.345 4 SGTPS PH-1&2 6.952 5 SGTPS PH-3 4.138 6 SSTPP PH-1 7.297 7 Total Thermal 44.442

44 MPPGCL True-up Tariff Petition for FY 2017-18

S. EL Power Station No. Encashment

8 Gandhi Sagar HPS 1.935 9 Pench HPS 1.384 10 Rajghat HPS 1.042 11 Bargi HPS 1.658 12 Bansagar PH-1,2&3 HPS 5.176 13 Bansagar PH-4 0.256 14 Birsinghpur HPS 0.260 15 Madhikheda HPS 0.906 16 Total Hydro 12.616 Total 57.058

4.2.7 Total Other Charges

Considering the above elements, the overall Other Charges work out to be Rs. 250.72Crores. MPPGCL humbly prays before Hon’ble Commission to permit the same:-

Table No.4.2.7.1 in Rs. Crores

S. No. Particulars Total

1 Rent, Rates & Taxes 0.77 2 Wage Revision Arrears 115.53 3 Water Charges 64.17 4 Cost of Chemicals & Consumables 11.56 5 MPERC Fee + Publication Exp. 1.61 6 EL Encashment 57.06 Total 250.70

45 MPPGCL True-up Tariff Petition for FY 2017-18

Power station wise details of Other Charges Table No.4.2.7 .2 in Rs. Crores

Wage MPERC Rent, Water Cost of EL Revisio Fee + S.No. Power Station Rates & Charg Chemicals & Encashm Total n Publicatio Taxes es Consumables ent Arrears n Exp.

1 ATPS PH-3 0.028 16.067 3.130 0.977 0.077 8.425 28.703

2 STPS PH-2&3 0.195 25.387 2.979 2.487 0.334 11.285 42.667

3 STPS PH-4 0.185 12.598 2.927 1.145 0.152 6.345 23.352

4 SGTPS PH-1&2 0.000 15.099 7.110 1.559 0.256 6.952 30.977

5 SGTPS PH-3 0.000 8.987 4.232 0.928 0.152 4.138 18.438

6 SSTPP PH-1 0.172 21.316 18.059 2.586 0.365 7.297 49.795

7 Total Thermal 0.581 99.454 38.438 9.681 1.337 44.442 193.93

8 Gandhi Sagar HPS 0.062 2.408 12.347 0.512 0.035 1.935 17.298

9 Pench HPS 0.002 1.772 0.030 0.032 0.049 1.384 3.269

10 Rajghat HPS 0.000 1.245 0.000 0.236 0.014 1.042 2.537

11 Bargi HPS 0.000 1.766 3.249 0.029 0.027 1.658 6.729

12 Bansagar PH-1,2&3 HPS 0.112 7.237 8.585 0.969 0.123 5.176 22.201

13 Bansagar PH-4 HPS 0.006 0.357 0.424 0.048 0.006 0.256 1.096

14 Birsinghpur HPS 0.000 0.066 0.314 0.021 0.006 0.260 0.666

15 Madhikheda HPS 0.009 1.224 0.779 0.035 0.018 0.906 2.972

16 Total Hydro 0.190 16.075 25.728 1.881 0.278 12.616 56.77

Total 0.771 115.529 64.165 11.563 1.615 57.058 250.70

MPPGCL humbly request Hon’ble Commission to kindly permit the same.

46 MPPGCL True-up Tariff Petition for FY 2017-18

4.3 Additional Capitalization/De-capitalization& Funding thereof-

ATPS 210MW PH-3

4.3.1. The extension Unit No.5 (210MW) ATPS was commissioned on 10.09.2009.The Hon’ble Commission vide order dated 01.05.2012 has determined the final generation Tariff for FY 2009-10 & FY 2010-11 on actual basis and FY 2011-12 on projected basis.

4.3.2. Further, in its True up order for respective years, the Hon’ble Commission has approved the additional Capitalization in accordance with provisions of MPERC regulations.

4.3.3. In the instant True up petition, the additional asset capitalized at ATPS PH-3(210MW) as per the Audited books of Accounts for FY 2017-18 are detailed hereunder: Table No.4.3.3.1 Rs. Crores A/c Code Details Amount 10.101 Land Owned Under Full Title 0.01 10.102 Land Held Under Lease 0.01 10.106 Cost Of Tree Plant for Tree Cut Down (Provisional) 0.06 10.322 Drainage And Sewerage Residential Colony 0.11 10.401 Pucca Roads 0.11 10.501 Boiler Plant & Equipments 0.09 10.507 Ash Handling Plant 0.44 10.512 Coal Conveyor & Crusher 0.01 10.515 Coal Handling Plant & Handling Equipments 0.48 10.577 Air-Conditioning Plant-Portable 0.01 10.588 Chemical Lab Equipments 0.28 10.599 Other Misc. Equip. Including Fire Protection System 0.33 10.800 Furniture And Fixtures 0.13 10.904 Others office Equipments 0.13 10.905 Computers 0.07 11.300 Capital Spares 0.58 Total 2.85

47 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.4. The details of funding (Debt + Equity) in respect of additional capitalization carried out at ATPS PH-3 in FY 2017-18 is detailed below:- Table No.4.3.4.1 in Rs. Crores Equity/ Particulars Loan Internal Total resources 1 Additional capitalization in FY 18 2.85 2 Funding details 0.00 2.85 2.85

STPS PH-2&3

4.3.5. MPPGCL has opted for Special Allowance for STPS PH-2&3. The Hon’ble Commission vide order dated 23.07.2015 in the matter of recovery of Special Allowance for Unit No. 6,7,8&9 of STPS, Sarni for FY 2011-12 to FY 2017-18 (petition No. 23 of 2015) has determined the Special Allowance for PH-2&3 of STPS Sarni. Accordingly, MPPGCL is not claiming any additional capitalization on these Units from FY 2011-12 onwards on account of R&M works.

STPS PH-4

4.3.6. The Unit No.10 & 11 (2x250MW) of STPS PH-4 were commissioned on 18.08.2013 and 16.03.2014 respectively. The Hon’ble Commission vide order dated 07.01.2016 has determined the Final tariff of STPS PH- 4(2x250MW) for FY 14 on actual basis and FY 15 & FY 16 on projected basis. 4.3.7. Further, vide True up order for FY 2014-15, FY 2015-16& F 2016-17, the Hon’ble Commission has approved the additional Capitalization during FY-15,FY 16& FY 17 respectively. 4.3.8. In the instant True up petition, the additional asset capitalized at STPS PH-4(2x250MW) as per the Audited books of Accounts for FY 2017-18 as detailed hereunder: Table No.4.3.8.1 in Rs. Crores A/c Details Amount Code 10.106 Cost Of Tree Plant For Tree Cut Down (Provisional) 0.06 10.310 Cooling Water System 0.02 10.311 Cooling Towers 0.10

48 MPPGCL True-up Tariff Petition for FY 2017-18

A/c Details Amount Code 10.321 Reservoir, Forbay And Intake 0.01 10.325 Misc. Works 1.04 10.401 Pucca Roads 0.69 10.501 Boiler Plant & Equipments 9.76 10.503 Turbine-Generator-Steam Power Generation 0.83 10.515 Coal Handling Plant & Handling Equipments 0.50 10.516 Oil Tanks, Oil Handing Plant & Equipments 0.05 10.520 Instrumentation And Controls 0.40 10.523 220 Kv/400 Kv Switch Yard 0.33 10.525 Effluent Treatment Plant / Sewage Treatment Plant 0.002 10.527 Misc. Cranes &Hoists In Power Stations 0.21 10.578 Air-Conditioning & Ventilation System 1.48 10.587 Other Electrical Equipment For Bop 0.99 10.599 Other Misc. Equip. Include .Fire Protection System 0.47 10.800 Furniture And Fixtures 0.03 10.904 Other office Equipments 0.02 10.905 Computers 0.01 11.300 Capital Spares 4.63 Total 21.64

4.3.9. Apart from above, the asset addition of Rs.21.84 Crores at STPS PH-4 Sarni during FY 2016-17 was deferred by Hon’ble Commission at para82, Page 37 of True up order FY17. The same is also considered in the instant petition along with its corresponding funding. 4.3.10. The aforesaid additional capitalization carried out were within the original scope of cost estimate of Rs. 3514 Crores approved by GoMP vide letter dated 25.06.2007 already submitted before Hon’ble Commission. 4.3.11. The details of funding (Debt + Equity) in respect of additional capitalization carried out at STPS PH-4 in FY 2017-18 is detailed below: Table No.4.3.11.1 in Rs. Crores PFC Loan Equity/ Particulars No. internal Total 20701003 resources 1 Drawls till 31-3-2017 2531.44 681.20 3212.64 Approved by MPERC upto True Up for 2 FY 17 in proportion to Addl. 2526.53 637.88 3164.41 Capitalization allowed by MPERC

49 MPPGCL True-up Tariff Petition for FY 2017-18

PFC Loan Equity/ Particulars No. internal Total 20701003 resources 3 Balance Amount to be claimed (1-2) 4.91 43.32 48.23 4 Drawls in FY 18 0.00 0.00 0.00 5 Total as on 31-3-2018 4.91 43.32 48.23 6 Additional Capitalization in FY 18 21.64 7 Deferred additional Capitalization of FY 17 21.84 Total additional Capitalization 8 43.48 considered 9 Funding details 4.91 38.57 43.48

The year wise details of Loan drawl in respect of PFC Loan No. 20701003 & GoMP Equity are detailed below:

Table No.4.3.11.2 in Rs. Crores Total in Financial PFC Loan GoMP Rs. Year No.20101003 Equity Crores FY 07 0.00 6.00 6.00 FY 08 0.00 150.00 150.00 FY 09 0.00 0.00 0.00 FY 10 46.53 69.92 116.45 FY 11 523.85 36.96 560.81 FY 12 754.21 80.00 834.21 FY 13 616.99 239.99 856.98 FY 14 517.94 13.33 531.27 FY 15 66.44 0 66.44 FY 16 5.31 85 90.31 FY 17 0.17 0 0.17 Total 2531.44 681.20 3212.64

The year wise details of Loan & Equity admitted by Hon’ble Commission are detailed below:

Table No.4.3.11.3 in Rs. Crores Financial Year Loan Equity FY 14 Addition 2405.75 601.44 Addition 94.68 3.15 FY 15 Deletion -33.66 -8.42 Addition 65.10 36.46 FY 16 Deletion -2.97 -0.74 Addition 36.16 15.5 FY 17 Deletion -38.53 -9.51 As on 01.04.2017 2526.53 637.88

50 MPPGCL True-up Tariff Petition for FY 2017-18

SGTPS PH-1&2

4.3.12. Asset capitalization was carried out at SGTPS PH-1&2 during FY 2017- 18mainly on account of Need based essential and statutory works. The details are as hereunder:- Table No.4.3.12.1 in Rs. Crores A/c Details Amount Code 10.102 Land Held Under Lease 0.16 10.520 Instrumentation And Controls 0.00 10.563 Batteries Including Charging Equipment 8.19 10.572 Communication Equip-Telephone Lines & Telephones 0.58 10.583 Tools And Tackles 0.01 10.588 Chemical Lab Equipments 0.05 10.800 Furniture And Fixtures 0.02 10.904 Other office Equipments 0.46 Total 9.47

4.3.13. The funding details are hereunder:-

Table No.4.3.13.1 in Rs. Crores Equity/ PSDF Particulars Internal Total Grant resources 1 Additional capitalization in FY 17 9.47

2 Funding details 2.99 6.47 9.47

SGTPS PH-3

4.3.14. The extension Unit No. 5 (500MW) SGTPS was commissioned on 28.08.2008. The Hon’ble Commission vide order dated 26.02.2013 has determined the Final Generation Tariff for FY 2008-09, FY 2009-10 & FY 2010-11 on actual basis and FY 2011-12 on projected basis.

4.3.15. Further, vide True up order for respective years; the Hon’ble Commission has approved the additional Capitalization during FY-11 & FY-17.

51 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.16. In the instant True up petition, the additional asset capitalized at SGTPS PH-3(500MW) as per the Audited books of Accounts for FY 2017-18are detailed hereunder:

Table No.4.3.16.1 in Rs. Crores A/c Details Amount Code 10.401 Pucca Roads 14.39 10.582 Equipments In Hospitals/Clinics 0.01 10.599 Other Misc. Equip. Including. Fire Protection System 0.00 10.800 Furniture And Fixtures 0.10 10.904 Other office Equipments 0.38 10.905 Computers 0.04 11.300 Capital Spares 0.06 Expenditure on Major inspection/capital Overhaul- 11.601 2.53 Turbine/generator Total 17.51

4.3.17. The details of funding (Debt + Equity) in respect of additional capitalization carried out at SGTPS PH-3 in FY 2017-18 is detailed below:

Table No.4.3.17.1 in Rs. Crores Equity/ Particulars Loan Internal Total resources Additional capitalization 1 17.51 in FY 18 2 Funding details 0.00 17.51 17.51

SSTPP PH-1:-

4.3.18. The unit No.1 & 2(2x600MW) of STPS PH-1 was commissioned on 01.02.2014 and 28.12.2014 respectively. The Hon’ble Commission vide order dated 30.12.2017 in petition No. 09 of 2015 has determined the Final Generation Tariff of SSTPP PH-1 from Cod of respective units to 31.03.2016. Further the Hon’ble Commission vide True up order for FY 17 dated 24.07.2018 has approved the additional Capitalization during FY-17

52 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.19. In the instant True up petition, the additional asset capitalized at SSTPP PH-1(2x600MW) as per the Audited books of Accounts for FY 2017-18 are detailed hereunder:

Table No.4.3.19.1 in Rs. Crores A/c Details Amount Code 10.101 Land Owned Under Full Title 2.13 10.102 Land Held Under Lease 0.05 10.106 Cost Of Tree Plant For Tree Cut Down (Provisional) 2.85 10.222 Residential Colony For Staff 0.05 10.233 Other Buildings 0.001 10.310 Cooling Water System 0.01 10.311 Cooling Towers 0.05 10.321 Reservoir, Forbay And Intake 0.06 10.325 Misc. Works 0.04 10.401 Pucca Roads 0.02 10.412 Railway Sidings 0.67 10.420 Boundary Wall For Civil Buildings 0.002 10.426 Ash bund for thermal power station 0.03 10.501 Boiler Plant & Equipments 7.12 10.503 Turbine-Generator-Steam Power Generation 0.35 10.507 Ash Handling Plant 0.03 10.515 Coal Handling Plant & Handling Equipments 0.12 10.516 Oil Tanks, Oil Handing Plant & Equipments 0.01 10.520 Instrumentation And Controls 1.47 10.521 Hydrogen generation plant 0.001 10.522 Misc. Pumps 0.0003 10.523 220kv/400kv switch yard 0.02 10.524 Water treatment plant 0.01 10.526 Flue gas stack for thermal power station 0.02 10.527 Misc. Cranes & hoists in power stations 0.001 10.542 Other Transformers Of Power House 9.76 10.551 Material Handling Equipment-Earth-Movers, Bulldozer 0.36 10.553 Material Handling Equipment - Cranes 1.79 10.561 Switchgears Including Cable Connections 0.01 10.565 Fabrication Shop/Workshop Plant & Equipments 0.0005 10.578 A C& ventilation system 0.002 10.585 D G Set for emergency Power 0.03 10.586 Compressed air system 0.003

53 MPPGCL True-up Tariff Petition for FY 2017-18

A/c Details Amount Code 10.587 Other Electrical Equipments for BoP 0.02 10.588 Chemical lab Equipments 0.08 10.589 Other Lab And Testing Equipment 0.01 10.599 Other Misc Equip. Including Fire Protection System 0.01 10.612 Underground Cables - Cable Duct System 0.002 10.800 Furniture And Fixtures 0.55 10.904 Other office Equipments 0.08 10.905 Computers 0.10 11.300 Capital Spares 37.02 Expenditure on Major inspection/capital Overhaul- 11.600 1.78 Turbine/generator Total 66.72

4.3.20. The capitalization carried out were within the original scope of cost estimate of Rs. 7820 Crores approved by GoMP vide letter dated 23.01.2015 already submitted before Hon’ble Commission.

4.3.21. The details of funding (Debt + Equity) in respect of additional capitalization carried out at SSTPP PH-1 in FY 2017-18 is detailed below:

Table No.4.3.21.1 in Rs. Crores PFC Loan Equity/ Particulars No. internal Total 20701003 resources

1 Drawls till 31-3-2017 6097.38 1521.20 7618.58

Approved by MPERC upto True Up for FY 2 17 in proportion to Addl. Capitalization 5874.10 1399.88 7273.98 allowed by MPERC 3 Balance Amount to be claimed (1-2) 223.28 121.32 344.60 4 Actual Drawls in FY 18 0.00 0.00 0.00 5 Total as on 31-3-2018 223.28 121.32 344.60

6 Additional Capitalization in FY 18 66.72 7 Funding details 46.71 20.02 66.72

54 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.22. The year wise drawls from PFC Loan and deployment of GoMP-Equity is detailed hereunder:-

Table No.4.3.22.1 in Rs. Crores Loan Equity Financial Year Drawls Drawls FY 2006-07 0.00 40.00 FY 2007-08 0.00 95.19 FY 2008-09 103.00 64.61 FY 2009-10 364.39 56.00 FY 2010-11 877.92 249.04 FY 2011-12 1533.43 242.43 FY 2012-13 1147.62 363.00 FY 2013-14 1178.09 239.73 FY 2014-15 725.58 0.00 FY 2015-16 123.42 20.00 FY 2016-17 43.94 151.20 Total 6097.38 1521.20

4.3.23. The year wise details of Loan & Equity admitted by Hon’ble Commission are detailed below:- Table No.4.3.23.1 in Rs. Crores Financial Year Loan equity

As per Final FY 16 5814.33 1370.00 Tariff order

Addition 81.87 35.09 FY 17 Deletion -22.10 -5.21 As on 01.04.2017 5874.1 1399.88

Bansagar PH-1, 2 & 3 :-

4.3.24. The additional capitalization as captured in the Annual Statement of Accounts of MPPGCL for FY 2017-18 at Bansagar PH-1, 2 & 3 Hydro Power Station amounts to Rs. 2.93 Crores. The account code details of assets capitalized is as under:-

55 MPPGCL True-up Tariff Petition for FY 2017-18

Table No.4.3.24.1 in Rs. Crores A/c Details Amount Code 10.101 Land Owned Under Full Title 0.01 10.531 Hydel Power Generation Plants 1.67 10.535 Auxiliaries In Hydel Power Plants 0.13 10.542 Other Transformers Of Power House 0.00 Others Transformer Plant Transformer Kiosks, Subs 10.543 0.67 Equipment Apparatus 10.563 Batteries Including Charging Equipment 0.18 10.567 Lightning Arrestors 0.20 10.904 Other office Equipments 0.05 10.905 Computers 0.02 Total 2.93

4.3.25. The details of funding with respect to above mentioned asset addition at Bansagar PH-1,2 &3 is as under:

Table No.4.3.25.1 in Rs. Crores. Amount Funding Funding through Power Stations Assets through Equity/ capitalized PSDF Internal Grant Resources 1 Bansagar PH 1,2&3 2.93 1.17 1.77

Pench HPS

4.3.26. The additional capitalization as captured in the Annual Statement of Accounts of MPPGCL for FY 2017-18at Pench Hydro Power Station amounts to Rs. 1.17 Crores. The account code details of assets capitalized is as under: Table No.4.3.26.1 in Rs. Crores A/c Details Amount Code 10.523 220kv/400kv switch yard 0.34 10.535 Auxiliaries In Hydel Power Plants 0.58 10.563 Batteries Including Charging Equipment 0.22 Communication Equip-Telephone Lines & 10.572 0.01 Telephones

56 MPPGCL True-up Tariff Petition for FY 2017-18

A/c Details Amount Code 10.904 Other office Equipments 0.02 10.905 Computers 0.002 10.906 Furniture & fixture 0.004 Total 1.17

4.3.27. The aforesaid additional capitalization was funded through the internal resources / equity of MPPGCL as detailed in the table below:- Table No.4.3.27.1 in Rs. Crores Amount Equity/ Power Stations Assets Loan Internal capitalized Resources 1 Pench 1.17 0.00 1.17

Bargi HPS

4.3.28. The asset addition as captured in the Annual Statement of Accounts of MPPGCL for FY 2017-18 at Bargi Hydro Power Station amounts to Rs. 0.88 Crores. The major additions are on account of need based essential and statutory works. The account code details of assets capitalized is as under:-

Table No.4.3.28.1 in Rs. Crores A/c Details Amount Code 10.523 220kv/400kv switch yard 0.51 10.563 Batteries Including Charging Equipment 0.37 Total 0.88

4.3.29. The details of funding towards aforesaid additions are as under:- Table No.4.3.29.1 in Rs. Crores Amount Equity/ Power Stations Assets GoMP Internal capitalized Loan Resources 1 Bargi 0.88 0.00 0.88

57 MPPGCL True-up Tariff Petition for FY 2017-18

Madhikheda HPS

4.3.30. Asset addition at Madhikheda HPS as captured in the Annual Statement of Accounts of MPPGCL for FY 2017- amounts to Rs. 0.02 Crores. The details of assets capitalized& funding is as under:- Table No.4.3.30.1 in Rs. Crores. A/c Details Amount Code Other Misc. Equip. Including Fire Protection 10.599 0.004 System 10.904 Other office Equipments 0.004 10.905 Computers 0.001 10.906 Furniture & fixture 0.012 Total 0.02

4.3.31. The details of funding towards aforesaid additions are as under:- Table No.4.3.31.1 in Rs. Crores. Amount Equity/ Power Stations Assets Loan Internal capitalized Resources 1 Madhikheda 0.02 0.00 0.02

Rajghat HPS

4.3.32. Asset addition as captured in the Annual Statement of Accounts of MPPGCL for FY 2017-18 at Rajghat Hydro Power Station amounts to Rs. 6.46 Crores. These additions are on account of need based essential and statutory works. The account code details of assets capitalized is as under:- Table No.4.3.32.1 in Rs. Crores. A/c Details Amount Code 10.523 220kv/400kv switch yard 0.10 10.535 Auxiliaries In Hydel Power Plants 1.78 10.563 Batteries Including Charging Equipment 0.10 10.571 Communication Equip-Radio & High Freq. Carrier Sys. 0.05 10.599 Other Misc. Equip. Including Fire Protection System 0.01 Expenditure on Major inspection/capital Overhaul- 11.602 4.42 Turbine/generator Total 6.46

58 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.33. The details of funding towards aforesaid additions are as under:- Table No.4.3.33.1 in Rs. Crores. Amount Equity/ Power Stations Assets Loan Internal capitalized Resources 1 Rajghat 6.54 0.00 6.54

Birsinghpur HPS

4.3.34. Minor asset addition as captured in the Annual Statement of Accounts of MPPGCL for FY 2017-18 at Birsinghpur Hydro Power Station amounts to Rs.0.01 Crores. The account code details of assets capitalized is as under:- Table No.4.3.34.1 in Rs. Crores. Account Details Amount Code 10.904 Others office Equipments 0.01 Total 0.01

4.3.35. The details of funding towards aforesaid addition is as under:- Table No.4.3.35.1 in Rs. Crores Equity/ S. Assets Power Stations Loan Internal No. capitalized Resources 1 Birsinghpur HPS 0.02 0.00 0.01

Head Quarters

4.3.36. The additional capitalization as captured in the Annual Statement of Accounts of MPPGCL for FY 2017-18 at Head Quarters amounts to Rs.1.06 Crores. The account code details of assets capitalized is as under:- Table No.4.3.36.1 in Rs. Crores A/c Details Amount Code 10.730 Jeeps And Motor Cars 0.10 10.904 Others 0.15 10.905 Computers 0.81 Total 1.06

59 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.37. The aforesaid expenditure towards additional capitalization was funded through the internal resources / equity of MPPGCL as detailed in the table below:- Table No.4.3.37.1 in Rs. Crores Equity/ S. Assets Power Stations Loan Internal No. capitalized Resources

1 Head Quarter 1.06 1.06

MPPGCL wish to submit that in its earlier petitions, MPPGCL has proposed the minor assets capitalized at Head Quarter to be treated as part of assets of the nearest power station i.e. Bargi HPS and accordingly claimed depreciation, Interest Charges and RoE. However, the Hon’ble Commission has not given cognizance to the same. It is therefore once again requested to kindly consider above asset additions at HQ please.

4.3.38. Considering above, the power station wise asset capitalization and funding details are summarized as below:-

Table No.4.3.38.1 in Rs. Crores Funding Through Additional Stations Capital- Equity/ ization Loan internal Total Resources

1 ATPS PH-3 2.85 0.00 2.85 2.85 2 STPS PH-2&3 0.00 0.00 0.00 0.00 3 STPS PH-4 43.48 * 4.91 38.57 43.48 4 SGTPS PH-1&2 9.47 0.00 9.47 9.47 5 SGTPS PH-3 17.51 0.00 17.51 17.51 6 SSTPP PH-1 66.72 46.71 20.02 66.72 7 Total Thermal 140.03 51.62 88.42 140.03 8 Gandhi Sagar 0.65 0.00 0.65 0.65 9 Pench 1.17 0.00 1.17 1.17 10 Rajghat 6.54 0.00 6.54 6.54 11 Bargi 0.88 0.00 0.88 0.88 12 Bansagar PH-1,2 &3 2.93 0.00 2.93 2.93 13 Bansagar PH-4 0.00 0.00 0.00 0.00

60 MPPGCL True-up Tariff Petition for FY 2017-18

Funding Through Additional Stations Capital- Equity/ ization Loan internal Total Resources

14 Birsinghpur 0.01 0.00 0.01 0.01 15 Madhikheda 0.02 0.00 0.02 0.02 13 Total Hydel 12.20 0.00 12.20 12.20 14 HQ & S&I 1.06 0.00 1.06 1.06 Total 153.29 51.62 101.67 153.29 * Including deferred additional Capitalization for FY 17 Rs. 21.84 Crores

4.3.39. MPPGCL humbly request the Hon’ble Commission to permit the additional Capitalization at Thermal & Hydro power Stations along with funding thereof.

4.3.40. Details of Asset transferred within Thermal Power Stations: During FY 2017-18, assets were transferred from ATPS to SGTPS as reflected in Audited Books of Accounts for FY 2017-18. Accordingly, MPPGCL in the instant true up petition has shifted the assets from the Gross Block of respective Thermal Power Station along with corresponding effect on Normative Loan and Equity Balances in the subsequent chapters. The details of same are tabulated hereunder:-

Table No.4.3.40.1 in Rs. Crores Gross Adjustment Block of Particulars Assets Normative Normative transferred loan Equity

1 Transferred from ATPS PH-3 6.25 4.38 1.88 2 Received at SGTPS PH-1&2 1.91 1.34 0.57 3 Received at SGTPS PH-3 0.84 0.59 0.25

MPPGCL humbly request the Hon’ble Commission to kindly consider the same.

61 MPPGCL True-up Tariff Petition for FY 2017-18

4.3.41. Details of Asset Written off/De-capitalized /Adjustments etc: (1) ATPS PH-3

Following assets were written off at ATPS PH-3 as per Audited Books of Accounts for FY 2017-18:

Table No.4.3.41.1 in Rs. Crores A/c Details Amount Code 10.501 Boiler Plant & Equipments 3.74 10.520 Instrumentation And Controls 0.04 10.580 Refrigerators And Water Coolers 0.001 10.905 Computers 0.01 Total 3.80

The aforesaid assets are reduced from the Gross Block of ATPS PH-3 in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2017-18. Further, the Normative Equity/ Loan Balances have also been adjusted in reference to above as detailed below:

Table No.4.3.41.2 in Rs. Crores - Adjustment Assets Power Station write off Normative Normative loan Equity 1 ATPS PH-3 3.80 2.66 1.14

(2) STPS PH-2&3

Following assets were written off at STPS PH-2& 3 as per Audited Books of Accounts for FY 2017-18:

Table No.4.3.41.3 in Rs. Crores A/c Details Amount Code 10.512 Coal Conveyor & Crusher 0.45 10.542 Other Transformers Of Power House 10.26 10.551 Material Handling Equipment-Earth-Movers, Bulldozer 0.36 10.565 Fabrication Shop/Workshop Plant & Equipments 0.10 10.58 Refrigerators And Water Coolers 0.01 10.73 Jeeps And Motor Cars 0.12 10.901 Calculators 0.05

62 MPPGCL True-up Tariff Petition for FY 2017-18

A/c Details Amount Code 10.902 Typewriters 0.01 10.904 Other Office Equipments 0.04 10.904 Other Office Equipments 0.02 10.905 Computers 0.03 Total 11.45

The aforesaid assets have been reduced from the Gross Block of STPS PH-2&3 in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2017-18.Asthese assets are funded through Loan/Equity Component, the Normative loan/Equity Balance has been reduced, proportionately as tabulated hereunder:-

Table No.4.3.41.4 in Rs. Crores Adjustment Assets Power Station write off Normative Normative loan Equity 1 STPS PH-2&3 11.45 8.01 3.43

(3) SGTPS PH-1&2

Following assets were written off at SGTPS PH-3 as per Audited Books of Accounts for FY 2017-18:- Table No.4.3.41.5 in Rs. Crores A/c Details Amount Code 10.800 Furniture & Fixture 0.05

The aforesaid assets have been reduced from the Gross Block of SGTPS PH-3 in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2017-18.Asthese assets are funded through Loan/Equity Component, the Normative loan/Equity Balance has been reduced, proportionately as tabulated hereunder:-

Table No.4.3.41.6 in Rs. Crores Adjustment Assets Power Station write off Normative Normative loan Equity 1 SGTPS PH-3 0.05 0.03 0.01

63 MPPGCL True-up Tariff Petition for FY 2017-18

(4) SSTPP PH-1

During FY 2017-18,it was found that at asset amounting to Rs.1.67 Crores was erroneously booked under the Account head Capital Spares in FY 2016-17SSTPP PH-1 , instead of Plant & Machinery Account head. The same was corrected in FY 2017-18 in Audited Books of Accounts for FY 2017-18.

Accordingly, the Normative loan/Equity Balance has been adjusted proportionately, as detailed hereunder:-

Table No.4.3.41.7 in Rs. Crores Adjustment Assets Power Station Adjustment Normative Normative loan Equity 1 SSTPP PH-1 1.67 1.17 0.50

(5) Hydro Power Stations& Head Quarter

During FY 2017-18, following assets were written off at Hydro Power Stations& Head Quarter as per Audited Books of Accounts for FY 2017-18: Table No.4.3.41.8 in Rs. Crores A/c Details Amount Code Bansagar PH-1,2&3 Others Transformer Plant Transformer ,Kiosks, Subs Equipments 10.543 0.15 Apparatus 10.800 Furniture And Fixtures 0.04 10.904 Other office Equipments 0.01 Total 0.19 Rajghat HPS 10.310 Cooling Water System 0.001 10.320 Plant, Pipelines For Water Supply In Res. Colony 0.0001 10.546 Line Transformer Below 100 Kva 0.001 10.576 Air-Conditioning Plant Static 0.001 10.602 Overhead Lines On Steel Support At Vol.Bt.13.2 &66 0.00001 10.631 Metering Equipments 0.001 10.901 Calculators 0.0001 10.902 Typewriters 0.003 Total 0.007 Head Quarter 10.904 Other office Equipments 0.04 10.905 Computers 0.12 Total 0.16

64 MPPGCL True-up Tariff Petition for FY 2017-18

The aforesaid assets have been reduced from the Gross Block of respective stations in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2017-18.Asthese assets are funded through Loan/Equity Component, the Normative loan/Equity Balance has been reduced, proportionately as tabulated hereunder:-

Table No.4.3.41.9 in Rs. Crores Assets Adjustment Power Station write Normative Normative off loan Equity 5 Rajghat 0.007 0.005 0.002 6 Bansagar PH-1,2&3 0.19 0.13 0.06

MPPGCL humbly request the Hon’ble Commission to kindly consider the same.

65 MPPGCL True-up Tariff Petition for FY 2017-18

4.4 Assets &Depreciation –

4.4.1. The Power Station wise break up of Gross Block of Fixed Assets as per Audited books of account FY 2017-18 along with asset additions and adjustment/deductions are tabulated below:-

Table No. 4.4.1.1 in Rs. Crores Transferred As at from Deductions / As at Stations Additions 01.04.17 Power Adjustments 31.03.18 Station 1 ATPS Chachai 1242.36 2.85 -10.05 1235.17 2 STPS Sarni 4228.57 53.57 -11.45 4270.70 3 SGTPS Birsinghpur 4351.82 26.97 2.75 -0.05 4381.50 4 SSTPP, Khandwa 7583.31 66.72 -1.67 7648.36 5 Bansagar HPS (Complex) 1292.17 2.93 -0.19 1294.91 6 Gandhi Sagar HPS 10.40 0.65 11.05 7 Pench HPS 102.28 1.17 103.45 8 Rajghat HPS 82.99 6.54 -0.01 89.52 9 Bargi HPS 88.04 0.88 88.92

10 Madhikheda HPS 218.00 0.02 218.02 11 Birsinghpur HPS 52.40 0.01 52.41 12 R P Sagar HPS 18.86 18.86 13 J Sagar HPS 16.56 16.56 14 HQ & S&I 4.12 1.06 -0.16 5.02 Sub Total 19291.89 163.38 2.75 -23.57 19434.45

Assets Not in use & held for sale 170.61 11.22 -168.90 12.93 Before INDAS Adjustments 19462.50 174.60 2.75 -192.47 19447.38

INDAS Adjustments 10.40 -10.40 0.00 Total as per Audited Statements of 19472.91 166.95 -192.47 19447.38 Accounts FY 18 Note-2

66 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.2. The Power house wise details of Opening Gross Block for FY 2017-18 as approved by Hon’ble Commission in True up order for FY 2016-17 and considered in instant petition is tabulated hereunder:-

Opening Gross Block as on 01-04-2017

Table No. 4.4.2.1 in Rs. Crores S. Power Stations Amount No. 1 ATPS PH-3 1133.25

2 ATPS Total 1133.25

3 STPS PH-2&3 620.42 4 STPS PH-4 3164.39 5 STPS Total 3784.81

6 SGTPS PH-1&2 2198.93

7 SGTPS PH-3 2037.96

8 SGTPS Total 4236.89

9 SSTPP PH-1 7273.99

10 Total Thermal 16428.94

11 Gandhi Sagar 10.39

12 Pench 102.25

13 Rajghat 82.81

14 Bargi 87.55

15 Bansagar PH-1,2&3 1173.13

16 Bansagar PH-4 116.85

17 Birsinghpur 52.40

18 Madhikheda 217.99

19 Total Hydro 1843.37

Total 18272.31

67 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.3. The comparative table indicating the difference between the Opening Gross Block as per Balance Sheet and as approved by Hon’ble Commission in True up order for FY 2016-17is detailed hereunder:

Comparison of Opening Gross Block as on 01-04-2017

Table No. 4.4.3.1 in Rs. Crores Op. Gross Block Admitted by Stations As per MPERC & Diff. Remarks Balance considered Sheet in this petition 1. Liquidated damages of Rs.47.11 Crores reduced by MPERC from Capital Cost of ATPS PH-3 in its Final tariff order.

1 ATPS Chachai 1242.36 1133.25 -109.11 2. Addl. Capitalization of Rs.62.00 Crs at ATPS PH-3 during FY-13 to FY 17 were not permitted by MPERC, over and above the Cut off date.

1. Proportionate IDC & Fuel Cost of Rs.86.70 Crores at STPS PH-4 over scheduled COD was not permitted by MPERC its Final tariff order.

2. Asset additions at STPS PH-4 amounting to Rs.21.84 Crs were 2 STPS Sarni 4228.57 3784.81 -443.76 deferred by MPERC in True up order for FY 17.

3. Asset additions at STPS PH-1,2&3 amounting to Rs.335 Crs were not claimed/allowed as Special allowance opted. 1. Liquidated damages of Rs.82.75 Crores reduced by MPERC from Capital Cost of SGTPS PH-3.

2. Capital Spares Rs.26.43 Crs & other 3 SGTPS Birsinghpur 4351.82 4236.89 -114.93 asset additions 5.75 Crs during FY-13 to FY 17 were not permitted MPERC in earlier True up Orders as per Regulations.

Proportionate IDC & Fuel Cost of Rs.309 Crores at SSTPP PH-1 over scheduled 4 SSTPP Khandwa 7583.31 7273.99 -309.32 COD was not permitted by MPERC its Final tariff order. 5 Total Thermal 17406.07 16428.94 -977.13

68 MPPGCL True-up Tariff Petition for FY 2017-18

Op. Gross Block Admitted by Stations As per MPERC & Diff. Remarks Balance considered Sheet in this petition Minor asset additions not permitted by 6 Gandhi Sagar 10.40 10.39 -0.01 MPERC 7 Jawahar Sagar 18.86 0.00 -18.86 Operated by other State 8 RP Sagar 16.56 0.00 -16.56 Minor asset additions not permitted by 9 Pench 102.28 102.25 -0.03 MPERC Capital Spares of Rs.0.15 Crs & minor 10 Rajghat 82.99 82.81 -0.18 asset additions not permitted Hon'ble MPERC in earlier True up Order. Capital Spares of Rs.0.38 Crs & other Minor asset additions of Rs.0.11 Crs were 11 Bargi 88.04 87.55 -0.49 not permitted by Hon'ble MPERC in earlier True up Orders. 1. LD/ Penalty of Rs.0.24 Crores reduced by MPERC from Capital Cost of Bansagar PH-4 in its Final tariff order.

12 Bansagar 1292.17 1289.98 -2.19 2. Capital Spares of Rs. 1.76 Crs & other minor asset additions of Rs.0.19 Crs were not permitted by Hon'ble MPERC in earlier True up Orders. 13 Birsinghpur 52.40 52.40 0 Minor asset additions not permitted by 14 Madhikheda 218.00 217.99 -0.01 MPERC 15 Total Hydro 1881.70 1843.37 -38.33 16 HQ 4.12 0.00 -4.12 Not admitted by Hon'ble Commission. Total 19291.89 18272.31 -1019.58

69 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.4. During FY 2015-16, Assets were transferred within the Thermal Power Stations of MPPGCL as reflected in Audited Books of Accounts for FY 2017-18. The same is elaborated in the Chapter 4.3 Additional Capitalization/De capitalization and funding thereof.

Accordingly, the Gross as admitted by Hon’ble Commission in the True up for FY 2016-17 has been adjusted &detailed hereunder:-

Adjusted Gross Block as on 01-04-2017

Table No. 4.4.4.1 in Rs. Crores Gross Block Assets Adjusted admitted by transferred Gross Block Power Stations MPERC as from ATPS to as on on SGTPS 01.04.2016 31.03.2017 1 ATPS PH-3 1133.25 -6.25 1127.00 2 ATPS Total 1133.25 -6.25 1127.00 3 STPS PH-2&3 620.42 620.42 4 STPS PH-4 3164.39 3164.39 5 STPS Total 3784.81 0.00 3784.81 6 SGTPS PH-1&2 2198.93 1.91 2200.84 7 SGTPS PH-3 2037.96 0.84 2038.80 8 SGTPS Total 4236.89 2.75 4239.64 9 SSTPP PH-1 7273.99 7273.99 10 Total Thermal 16428.94 -3.50 16425.44 11 Gandhi Sagar 10.39 10.39 12 Pench 102.25 102.25 13 Rajghat 82.81 82.81 14 Bargi 87.55 87.55 15 Bansagar PH-1,2&3 1173.13 1173.13 16 Bansagar PH-4 116.85 116.85 17 Birsinghpur 52.40 52.40 18 Madhikheda 217.99 217.99 19 Total Hydro 1843.37 0.00 1843.37 Total 18272.31 -3.50 18268.81

In reference to above, it is to mention that difference of Rs.3.50 Crores (Rs. 3.97 Crs- Rs.3.87 Crs) is on account of assets transferred from ATPS

70 MPPGCL True-up Tariff Petition for FY 2017-18

PH-3 to SGTPS, which were held under stores & not put to use in the Audited Books of Accounts for FY 2017-18. Accordingly the same is not added to the Gross Block of SGTPS, Birsinghpur.

4.4.5. The Power Station wise Opening Accumulated depreciation for FY 2017- 18 as permitted by Hon’ble Commission in the True Up order for FY 2016-17 and considered in instant petition is as under:-

Accumulated Depreciation as on 01.04.2017

Table No. 4.4.5.1 in Rs. Crores as % of Stations Amount GB 1 ATPS PH-3 413.45 36% 2 ATPS Chachai 413.45 36% 3 STPS PH-2&3 563.85 90% 4 STPS PH-4 511.80 16% 5 STPS Total 1075.65 28% 6 SGTPS PH-1&2 1662.07 76% 7 SGTPS-PH-3 841.65 41% 8 SGTPS Total 2503.72 59% 9 SSTPP PH-1 953.52 13% 10 Total Thermal 4946.34 30% 11 Gandhi Sagar 9.39 90% 12 Pench 81.21 79% 13 Rajghat 53.71 65% 14 Bargi 67.01 77% 15 Bansagar PH-1,2&3 760.81 65% 16 Bansagar PH-4 68.79 59% 17 Birsinghpur 38.77 74% 18 Madhikheda 100.39 46% 19 Total Hydro 1180.08 64% Total 6126.42 34%

71 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.6. On account of transfer of Assets within the Thermal Power Stations of MPPGCL , the Opening Balance of Accumulated Depreciation as admitted by the Hon’ble Commission in the True up order for FY 2016- 17 has been adjusted and detailed hereunder:-

Adjusted Accumulated Depreciation as on 01.04.2016

Table No. 4.4.6.1 in Rs. Crores Admitted by Dep. Adjusted MPERC as Adjustment Acc. Dep as on w.r.t assets on Power Stations 31.03.2017 transferred 01.04.2017 from ATPS to SGTPS 1 ATPS PH-3 413.45 -4.65 408.80 2 ATPS Total 413.45 -4.65 408.80 3 STPS PH-2&3 563.85 563.85 4 STPS PH-4 511.80 511.80 5 STPS Total 1075.65 0.00 1075.65 6 SGTPS PH-1&2 1662.07 1.45 1663.52 7 SGTPS PH-3 841.65 0.61 842.26 8 SGTPS Total 2503.72 2.06 2505.78 9 SSTPP PH-1 953.52 953.52 10 Total Thermal 4946.34 -2.59 4943.75 11 Gandhi Sagar 9.39 9.39 12 Pench 81.21 81.21 13 Rajghat 53.71 53.71 14 Bargi 67.01 67.01 15 Bansagar PH-1,2&3 760.81 760.81 16 Bansagar PH-4 68.79 68.79 17 Birsinghpur 38.77 38.77 18 Madhikheda 100.39 100.39 19 Total Hydro 1180.08 0.00 1180.08 Total 6126.42 -2.59 6123.83 Note: Assets of Rs.3.50 has been transferred from ATPS to SGTPS but not put to use in FY 2017-18 and held in stores. Accordingly the corresponding Acc. Dep. of these assets is also not considered

72 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.7. During FY 2017-18, asset capitalization was carried out at the existing stations as well as in the new projects The details of Assets capitalized and funding was elaborated in the Chapter-4.3 “Additional Capitalization / de-capitalization and Funding thereof.”

The power station wise summary of Asset additions made as per Audited Books of account for FY 2017-18 is detailed here under:

Asset Additions during FY 2017-18

Table No. 4.4.7.1 in Rs. Crores Stations Amount 1 ATPS PH-3 2.85 2 ATPS Chachai 2.85 3 STPS PH-2&3* 0.00 4 STPS PH-4 21.64 5 STPS Total 21.64 6 SGTPS PH-1&2 9.47 7 SGTPS-PH 3 17.51 8 SGTPS Total 26.97 9 SSTPP PH-1 66.72 10 Total Thermal 118.19 11 Gandhi Sagar 0.65 12 Pench 1.17 13 Rajghat 6.54 14 Bargi 0.88 15 Bansagar PH-1,2 &3 2.93 16 Bansagar PH-4 0.00 17 Birsinghpur 0.01 18 Madhikheda 0.02 19 Total Hydro 12.20 20 HQ 1.06 Total 131.45 * No asset addition considered as MPPGCL has availed Special Allowance on these units.

Apart from above, the asset addition of Rs.21.84 Crores at STPS PH-4 Sarni during FY 2016-17 was deferred by Hon’ble Commission at para82,

73 MPPGCL True-up Tariff Petition for FY 2017-18

Page 37 of True up order FY17. The same is also considered in the instant petition along with its corresponding funding.

4.4.8. The Write off /adjustments of Assets was made in the Gross Block of Fixed assets of the various power stations. These adjustments were reflected in the Audited Books of Accounts of MPPGCL for FY 2017-18.

The power station wise detail of such Write off /adjustments was elaborated in the Chapter-4.3 Additional Capitalization / de- capitalization and Funding thereof. The power station wise summary is detailed here under:

Asset deductions during FY 2017-18

Table No. 4.4.8.1 in Rs. Crores Asset Acc. Dep. Stations Remarks Amount amount 1 ATPS PH-3 -3.80 -2.82 Assets Write-off 2 STPS PH-2&3 -11.45 -10.30 Assets Write-off 3 SGTPS PH-3 -0.05 -0.02 Assets Write-off Accounting code correction 4 SSTPP PH-1 -1.67 -0.0002 (Book adjustment) 5 Total Thermal -16.96 -13.14 6 Rajghat -0.007 -0.006 Assets Write-off 7 Bansagar PH-1,2&3 -0.19 -0.17 Assets Write-off 8 Head Quarters -0.16 -0.12 Assets Write-off Total -17.32 -13.44

74 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.9. Considering the above mentioned asset additions and deductions, the Closing Gross Block and the Average Gross Block for FY 2017-18 works out as under:-

Closing and Average Gross Block for FY 2017-18

Table No. 4.4.9.1 in Rs. Crores Station Adjusted Asset Asset Asset Closing Average Opening Additions Addition Deductions Gross Gross Gross FY 18 deferred by Block Block Block MPERC in 31-03-2018 True up 01-04-2016 order FY 17 1 ATPS PH-3 1127.00 2.85 -3.80 1126.05 1126.53 2 ATPS Chachai 1127.00 2.85 0.00 -3.80 1126.05 1126.53 3 STPS PH-2&3 620.42 0.00 -11.45 608.97 614.70 4 STPS PH-4 3164.39 21.64 21.84 3207.87 3186.13 5 STPS Total 3784.81 21.64 21.84 -11.45 3816.85 3800.83 6 SGTPS PH-1&2 2200.84 9.47 2210.31 2205.57

7 SGTPS PH-3 2038.80 17.51 -0.05 2056.26 2047.53 8 SGTPS Total 4239.64 26.97 0.00 -0.05 4266.57 4253.10 9 SSTPP PH-1 7273.99 66.72 -1.67 7339.04 7306.51 10 Total Thermal 16425.44 118.19 21.84 -16.96 16548.51 16486.97 11 Gandhi Sagar 10.39 0.65 11.04 10.71 12 Pench 102.25 1.17 103.42 102.84 13 Rajghat 82.81 6.54 -0.01 89.34 86.08 14 Bargi 87.55 0.88 88.43 87.99 15 Bansagar PH-1,2&3 1173.13 2.93 -0.19 1175.87 1174.50 16 Bansagar PH-4 116.85 0.00 116.85 116.85 17 Birsinghpur 52.40 0.01 52.41 52.40 18 Madhikheda 217.99 0.02 218.01 218.00 19 Total Hydro 1843.37 12.20 0.00 -0.20 1855.37 1849.37 20 HQ 4.12 1.06 -0.16 5.02 4.57 Total 18272.93 131.45 21.84 -17.32 18408.90 18340.92

75 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.10. In the instant petition, the depreciation on the Gross Block has been worked out based on weighted Average Rate of depreciation as reflected in the Power House wise Asset cum Depreciation registers of MPPGCL. The approach is in line with the methodology adopted by Hon’ble Commission in the past Tariff/True up orders of MPPGCL.

The Wt. Average Rate of depreciation worked out in Asset Cum Depreciation registers are based on the following principles:-

 The rates for depreciation are considered as approved by Hon’ble Commission in Appendix-II of MPERC Regulation 2015.

 The salvage value of assets is considered as 10% i.e. none of the assets are depreciated more than 90% of the gross value.

 Proviso 33.7 of MPERC regulation 2015 specifies that the rate of depreciation continued to be charged at the rate specified in Appendix-II till cumulative depreciation reaches 70%. Thereafter the remaining depreciable value is spread over the remaining life of the asset such that the maximum depreciation does not exceed 90%.

 In case of asset addition made during the year, the depreciation is charged on pro-rata basis based on the commercial operation of the assets for part of the year.

 The Assets additions on account of need based R&M works at STPS PH-2&3 is not considered as Special Allowance has been opted for these units.

 The assets in the records of MPPGCL are only for its own share therefore depreciation is computed for MPPGCL share only.

76 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.11. Considering the above principles, the depreciation on various power stations has been worked out and is tabulated below:-

Depreciation computation for FY 2017-18

Table No. 4.4.11.1 in Rs. Crores Station Average Wt. Dep. Gross Av.Rate Amount for Block of Dep. FY 18

1 ATPS PH-3 1126.53 4.58% 51.56 2 ATPS Chachai 1126.53 51.56 3 STPS PH-2&3 614.70 0.00% 0.00 4 STPS PH-4 3186.13 5.19% 165.28 5 STPS Total 3800.83 165.28 6 SGTPS PH-1&2 2205.57 2.12% 46.85 7 SGTPS PH-3 2047.53 5.09% 104.31 8 SGTPS Total 4253.10 151.15 9 SSTPP PH-1 7306.51 5.04% 367.95 10 Total Thermal 16486.97 735.94 11 Gandhi Sagar 10.71 0.51% 0.05 12 Pench 102.84 1.56% 1.60 13 Rajghat 86.08 4.03% 3.47 14 Bargi 87.99 1.92% 1.69 15 Bansagar PH-1,2&3 1174.50 3.37% 39.53 16 Bansagar PH-4 116.85 5.28% 6.16 17 Birsinghpur 52.40 2.31% 1.21 18 Madhikheda 218.00 5.21% 11.36 19 Total Hydro 1849.37 65.07 20 HQ 4.57 7.47% 0.34 Total 18340.92 801.36

77 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.12. Accordingly, the Closing Accumulated Depreciation for FY 2017-18 works out as under:

Closing Accumulated Depreciation for FY 2017-18

Table No. 4.4.12.1 in Rs. Crores Station Adjusted Dep. Acc. Dep. Cl. As % of Op. Amount reduction Balance GB Balance for FY towards of Acc. of Acc. 18 write off/ Dep. Dep. adjustment 31-03-2018 01-04-2017

1 ATPS PH-3 408.80 51.56 -2.82 457.54 41% 2 ATPS Chachai 408.80 51.56 -2.82 457.54 41% 3 STPS PH-2&3 563.85 0.00 -10.30 553.55 90% 4 STPS PH-4 511.80 165.28 677.08 21% 5 STPS Total 1075.65 165.28 -10.30 1230.63 32% 6 SGTPS PH-1&2 1663.52 46.85 1710.37 77%

7 SGTPS PH-3 842.26 104.31 -0.02 946.55 46% 8 SGTPS Total 2505.78 151.15 -0.02 2656.92 62% 9 SSTPP PH-1 953.52 367.95 -0.0002 1321.47 18% 10 Total Thermal 4943.75 735.95 -13.14 5666.55 34% 11 Gandhi Sagar 9.39 0.05 9.44 86% 12 Pench 81.21 1.60 82.81 80% 13 Rajghat 53.71 3.47 -0.01 57.17 64% 14 Bargi 67.01 1.69 68.70 78% 15 Bansagar PH-1,2&3 760.81 39.53 -0.17 800.16 68% 16 Bansagar PH-4 68.79 6.16 74.95 64% 17 Birsinghpur 38.77 1.21 39.98 76% 18 Madhikheda 100.39 11.36 111.75 51% 19 Total Hydro 1180.08 65.07 -0.18 1244.97 67% 20 HQ 0.34 -0.12 0.22 4% Total 6123.83 801.36 -13.44 6911.74 38%

78 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.13. The depreciation on the assets of HQ has been linked to the nearest power station i.e. Bargi HPS for simplicity.

4.4.14. The Hon’ble Commission has permitted depreciation for FY 2017-18 in the MYT order for FY 17to FY 19 dated 14.07.2016.The Power Station wise break up of depreciation approved by Hon’ble Commission for FY 2017-18is detailed as under:

Approved by Hon’ble Commission

Table No. 4.4.14.1 in Rs. Crores As per MYT Station order

1 ATPS PH-3 50.16 2 ATPS Chachai 50.16 3 STPS PH-2&3 4 STPS PH-4 162.33 5 STPS Total 162.33 6 SGTPS PH-1&2 44.18 7 SGTPS-PH-3 104.37 8 SGTPS Total 148.55 9 SSTPP PH-1 310.57 10 Total Thermal 671.61 11 Gandhi Sagar 0.00 12 Pench 1.96 13 Rajghat 3.63 14 Bargi 1.78 15 Bansagar PH-1,2&3 39.22 16 Bansagar PH-4 6.12 17 Birsinghpur 0.92 18 Madhikheda 11.36 19 Total Hydro 64.99 20 HQ Total 736.60

79 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.15. Accordingly, the true up of depreciation claimed in the instant True up petition before applying Normative Annual Plant Availability Factor (NAPAF) works out as under:-

Depreciation claimed for FY 2017-18 (before applying NAPAF)

Table No. 4.4.15.1 in Rs. Crores MPPGCL As per Station as per Diff. MYT order norms 1 ATPS PH-3 50.16 51.56 1.40 2 ATPS Chachai 50.16 51.56 1.40 3 STPS PH-2&3 0.00 0.00 0.00 4 STPS PH-4 162.33 165.28 2.95 4 STPS Total 162.33 165.28 2.95 5 SGTPS PH-1&2 44.18 46.85 2.67 6 SGTPS-PH-3 104.37 104.31 -0.06 7 SGTPS Total 148.55 151.15 2.60 10 SSTPP PH-1 310.57 367.95 57.38 8 Total Thermal 671.61 735.95 64.33 9 Gandhi Sagar 0.00 0.05 0.05 10 Pench 1.96 1.60 -0.36 11 Rajghat 3.63 3.47 -0.16 12 Bargi 1.78 2.03 0.25 13 Bansagar PH-1,2&3 39.22 39.53 0.31 14 Bansagar PH-4 6.12 6.16 0.04 15 Birsinghpur 0.92 1.21 0.29 16 Madhikheda 11.36 11.36 0.00 17 Total Hydro 64.99 65.41 0.42 Total 736.60 801.36 64.76

80 MPPGCL True-up Tariff Petition for FY 2017-18

4.4.16. The True up amount on account of depreciation after applying NAPAF works out as under:-

Depreciation Claimed for FY 2017-18(at Actual Availability)

Table No. 4.4.16.1 in Rs. Crores As considered As per by Station MYT Diff. MPPGCL order on actual Availability 1 ATPS PH-3 50.16 51.56 1.40 2 ATPS Chachai 50.16 51.56 1.40 3 STPS PH-2&3 0.00 0.00 0.00 4 STPS PH-4 162.33 157.12 -5.21 5 STPS Total 162.33 157.12 -5.21 6 SGTPS PH-1&2 44.18 38.36 -5.82 7 SGTPS-PH-3 104.37 89.03 -15.34 8 SGTPS Total 148.55 127.39 -21.16 9 SSTPP PH-1 310.57 283.23 -27.34 10 Total Thermal 671.61 619.30 -52.31 11 Gandhi Sagar 0.00 0.05 0.05 12 Pench 1.96 1.60 -0.36 13 Rajghat 3.63 2.39 -1.24 14 Bargi 1.78 2.07 0.29 15 Bansagar PH-1,2&3 39.22 39.90 0.68 16 Bansagar PH-4 6.12 6.56 0.44 17 Birsinghpur 0.92 1.01 0.09 18 Madhikheda 11.36 11.20 -0.16 19 Total Hydro 64.99 64.79 -0.20 Total 736.60 684.09 -52.51

4.4.17. MPPGCL humbly requests the Hon’ble Commission to kindly permit the same.

81 MPPGCL True-up Tariff Petition for FY 2017-18

4.5 Interest and Finance Charges-

4.5.1. The Power Station wise Normative opening loan balances as on 1.4.2017(including excess equity) admitted by Hon’ble Commission in the True Up order for FY 2016-17 and considered in instant petition is as under:-

Table No. 4.5.1.1 in Rs. Crores Opening Bal as on 1-4-2017 S. Stations (as per MPERC No. True up order for FY 17) 1 ATPS PH-3 460.69 2 STPS PH-4 2055.16 3 SGTPS PH-3 617.42 4 SSTPP PH-1 4918.38 5 Total Thermal 8051.65 6 Bansagar PH-4 13.02 7 Madhikheda HPS 45.92 8 Total Hydro 58.94 Total 8110.59

4.5.2. During FY 2017-18, Assets were transferred/written-off as reflected in Audited Books of Accounts for FY 2017-18. The same is elaborated in the Chapter 4.3 Additional Capitalization/De capitalization and funding thereof.

Accordingly, the Normative Loan Balance as admitted by Hon’ble Commission in the True up for FY 2016-17 has been adjusted & detailed hereunder:-

82 MPPGCL True-up Tariff Petition for FY 2017-18

Adjusted Opening Normative Loan Balance

Table No. 4.5.2.1 in Rs. Crores Opening Bal Loan Adjustments as on 1-4-2017 Adjusted Towards (as per Towards assets Opening Stations asset transfer MPERC True write-off/ Bal.as on from ATPS & up order for adjustments 01-04-2017 FY 17) SGTPS 1 ATPS PH-3 460.69 -4.38 -2.66 453.66 2 STPS PH-4 2055.16 2055.16 3 SGTPS PH-1&2 1.34 1.34

4 SGTPS PH-3 617.42 0.59 -0.03 617.97 5 SSTPP PH-1 4918.38 -1.17 4917.21 6 Total Thermal 8051.65 -4.38 1.92 -3.86 8045.34 7 Bansagar PH-4 13.02 13.02 8 Madhikheda 45.92 45.92 9 Total Hydro 58.94 0.00 0.00 0.00 58.94 Total 8110.59 -4.38 1.92 -3.86 8104.28

4.5.3. Further, during FY 2017-18, loan drawls were made in existing as well as in new projects. The details of Power Station wise loan drawls in existing / new projects claimed in the instant petition is detailed in the Chapter – 4.3 Additional Capitalization/ de-capitalization& Funding thereof.

The summary of assets additions and funding thereof along with working of Normative & excess Equity is tabulated as under :

Additions & Funding Details Table No. 4.5.3.1 in Rs. Crores Stations Additional Funding Through Permissible Normative Excess Capital- Equity/ Equity Equity Equity ization Loan internal Total 30% of GB treated Resources as Loan 1 ATPS PH-3 2.85 0.00 2.85 2.85 0.86 0.86 2.00 2 STPS PH-2&3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 STPS PH-4 43.48 * 4.91 38.57 43.48 13.05 13.05 25.53 4 SGTPS PH-1&2 9.47 0.00 9.47 9.47 2.84 2.84 6.63 5 SGTPS PH-3 17.51 0.00 17.51 17.51 5.25 5.25 12.26 6 SSTPP PH-1 66.72 46.71 20.02 66.72 20.02 20.02 0.00 7 Total Thermal 140.03 51.62 88.42 140.03 42.01 42.01 46.41

83 MPPGCL True-up Tariff Petition for FY 2017-18

Stations Additional Funding Through Permissible Normative Excess Capital- Equity/ Equity Equity Equity ization Loan internal Total 30% of GB treated Resources as Loan 8 Gandhi Sagar 0.65 0.00 0.65 0.65 0.19 0.19 0.45 9 Pench 1.17 0.00 1.17 1.17 0.35 0.35 0.819 10 Rajghat 6.54 0.00 6.54 6.54 1.96 1.96 4.578 11 Bargi 0.88 0.00 0.88 0.88 0.26 0.26 0.62 12 Bansagar PH-1,2 &3 2.93 0.00 2.93 2.93 0.88 0.88 2.05 13 Bansagar PH-4 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14 Birsinghpur 0.01 0.00 0.01 0.01 0.002 0.002 0.005 15 Madhikheda 0.02 0.00 0.02 0.02 0.01 0.01 0.01 13 Total Hydel 12.20 0.00 12.20 12.20 3.66 3.66 8.54 14 HQ & S&I 1.06 0.00 1.06 1.06 0.32 0.32 0.74 Total 153.29 51.62 101.67 153.29 45.99 45.99 55.69 *Including balance capitalization for FY 2016-17 Rs.21.84 Crs deferred by Hon’ble Commission.

4.5.4. Considering above, the Power station wise Closing and Average balances of loan considering the repayment equal to depreciation charged during FY 2017-18 as per proviso 32.3 of MPERC Regulation 2015 are indicated below:-

Power Station wise Closing & Average Balances Table No. 4.5.4.1 in Rs. Crores. Adjusted Additions Principal Closing Opening Average Stations repayment Bal Bal Excess Bal. Loan (Dep.)* 31-03-2018 1-4-2017 Equity 1 ATPS PH-3 453.66 0.00 2.00 51.56 404.09 428.87 2 STPS PH-2&3 0.00 0.00 0.00 0.00 0.00 0.00

3 STPS PH-4 2055.16 4.91 25.53 165.28 1920.32 1987.74 4 SGTPS PH-1&2 1.34 0.00 6.63 7.96 0.00 0.67 5 SGTPS PH-3 617.97 0.00 12.26 104.31 525.92 571.95 6 SSTPP PH-1 4917.21 46.71 0.00 367.95 4595.97 4756.59 7 Total Thermal 8045.34 51.62 46.41 697.06 7446.30 7745.82 8 Gandhi Sagar 0.00 0.00 0.45 0.05 0.40 0.20 9 Pench 0.00 0.00 0.82 0.82 0.00 0.00 10 Rajghat 0.00 0.00 4.58 3.47 1.11 0.55 11 Bargi 0.00 0.00 0.62 0.62 0.00 0.00

84 MPPGCL True-up Tariff Petition for FY 2017-18

Adjusted Additions Principal Closing Opening Average Stations repayment Bal Bal Excess Bal. Loan (Dep.)* 31-03-2018 1-4-2017 Equity

12 Bansagar PH-1,2 &3 0.00 0.00 2.05 2.05 0.00 0.00 13 Bansagar PH-4 13.02 0.00 0.00 6.16 6.86 9.94 14 Birsinghpur 0.00 0.00 0.005 0.005 0.00 0.00 15 Madhikheda 45.92 0.00 0.01 11.36 34.58 40.25 13 Total Hydel 58.94 0.00 8.54 24.53 42.94 50.94 14 HQ & S&I 2.89 0.00 0.74 0.34 3.29 3.09 Total 8107.16 51.62 55.69 721.94 7492.53 7799.84 *principal repayment limited to maximum loan balance.

4.5.5. The Station wise weighted average rate of Interest for FY 2017-18are indicated below:-

Table No. 4.5.5.1 Wt. Av. Rate of Interest of Loans FY 2017-18 REC GoMP UBI Particulars PFC LIC Working HUDCO GoMP Working Working Total Loan Loan Capital Loan Loan Capital Capital Loan Loan Loan 1 ATPS PH-3 11.33% 9.80% 14.50% 13.00% 8.68% 11.16% 2 STPS PH-2&3 11.75% 9.80% 12.25% 14.50% 13.00% 8.68% 11.21% 3 STPS PH-4 11.65% 9.80% 14.50% 13.00% 8.68% 11.55% 4 SGTPS PH 1&2 11.57% 8.50% 9.80% 14.50% 13.00% 8.68% 10.23% 5 SGTPS PH 3 11.75% 9.80% 14.50% 13.00% 8.68% 11.29% 6 SSTTP PH-1 11.52% 9.80% 14.50% 13.00% 8.68% 11.45% 7 Total Thermal 11.55% 8.50% 9.80% 12.25% 14.50% 13.00% 8.68% 11.42% 8 Gandhi Sagar 9.80% 14.50% 13.00% 8.68% 10.37% 9 R.P. Sagar 8.68% 0.00% 10 J Sagar 8.68% 0.00% 11 Pench 9.80% 14.50% 13.00% 8.68% 10.37% 12 Rajghat 9.80% 14.50% 13.00% 8.68% 10.37% 13 Bargi 11.75% 9.80% 14.50% 13.00% 8.68% 10.37% 14 Bansagar PH-1,2&3 9.80% 14.50% 13.00% 8.68% 10.38%

85 MPPGCL True-up Tariff Petition for FY 2017-18

Wt. Av. Rate of Interest of Loans FY 2017-18 REC GoMP UBI Particulars PFC LIC Working HUDCO GoMP Working Working Total Loan Loan Capital Loan Loan Capital Capital Loan Loan Loan 15 Bansagar PH-4 9.80% 14.50% 13.00% 8.68% 10.37% 15 Birsinghpur 9.80% 14.50% 13.00% 8.68% 10.37%

16 Madhikheda 11.75% 9.80% 14.50% 13.00% 8.68% 10.52% 17 Total Hydro 11.75% 0.00% 9.80% 0.00% 14.50% 13.00% 8.68% 10.38% 18 HQ 14.50% 14.50% Total 11.55% 8.50% 9.80% 12.25% 14.50% 13.00% 8.68% 11.39%

4.5.6. Considering above, the Power station wise Interest charges(including Intt. on excess equity) for FY 2017-18worked out in accordance to the proviso 32 of the Generation Tariff Regulations, 2015 by applying weighted average rate of interest on loans is indicated below:

Station wise Interest on Normative Loan

Table No. 4.5.6.1 in Rs. Crores.

Average Wt. Av. Interest Stations Bal. Rate of Intt Amount

1 ATPS PH-3 428.87 11.16% 47.84 2 STPS PH-2&3 0.00 11.21% 0.00 3 STPS PH-4 1987.74 11.55% 229.64 4 SGTPS PH-1&2 0.67 10.23% 0.07 5 SGTPS PH-3 571.95 11.29% 64.57 6 SSTPP PH-1 4756.59 11.45% 544.81 7 Total Thermal 7745.82 886.93 8 Gandhi Sagar 0.20 10.37% 0.02 9 Pench 0.00 10.37% 0.00 10 Rajghat 0.55 10.37% 0.06

86 MPPGCL True-up Tariff Petition for FY 2017-18

Average Wt. Av. Interest Stations Bal. Rate of Intt Amount

11 Bargi 0.00 10.37% 0.00

12 Bansagar PH-1,2 &3 0.00 10.38% 0.00 13 Bansagar PH-4 9.94 10.37% 1.03 14 Birsinghpur 0.00 10.37% 0.00 15 Madhikheda 40.25 10.52% 4.23 13 Total Hydel 50.94 0.83 5.34 14 HQ & S&I 3.09 14.50% 0.45 Total 7799.84 892.72

4.5.7. The Hon’ble Commission has determined Interest & Finance Charges (including Intt. on excess equity) for FY 2017-18 in the MYT order for FY 17 to FY 19 dated 14.07.2016.The power Station wise break up of Interest on Normative Loan approved by Hon’ble Commission for FY 2017-18 is detailed as under:

Interest on Normative Loan

Table No. 4.5.7.1 in Rs. Crores

S. As per MYT Station No. Order

1 ATPS PH-3 54.30 2 STPS PH-2&3 0.00 3 STPS PH-4 254.68 4 SGTPS PH-1&2 0.00 5 SGTPS PH-3 71.40 6 SSTPP PH-1 495.04 7 Total Thermal 875.42 8 Gandhi Sagar 0.00 9 Pench 0.00 10 Rajghat 0.00

87 MPPGCL True-up Tariff Petition for FY 2017-18

S. As per MYT Station No. Order

11 Bargi 0.00 12 Bansagar PH-1,2&3 0.00 13 Bansagar PH-4 1.24 14 Birsinghpur 0.00 15 Madhikheda 5.05 16 Total Hydro 6.29 17 HQ 0.00 Total 881.71

4.5.8. The interest charges of HQ have been linked to the nearest power station i.e. Bargi HPS for simplicity.

4.5.9. Accordingly, the true up of Interest & Finance Charges (including Intt. on excess equity) claimed in the instant True up petition before applying Normative Annual Plant Availability Factor (NAPAF) works out as under:-

Interest & Finance Charges(before applying NAPAF)

Table No. 4.5.9.1 in Rs. Crores MPPGCL Diff S. As per Station as per True up No. MYT Order norms Amt 1 ATPS PH-3 54.30 47.84 -6.46 2 STPS PH-2&3 0.00 0.00 0.00 3 STPS PH-4 254.68 229.64 -25.04 4 SGTPS PH-1&2 0.00 0.07 0.07 5 SGTPS PH-3 71.40 64.57 -6.83 6 SSTPP PH-1 495.04 544.81 49.77 7 Total Thermal 875.42 886.93 11.51 8 Gandhi Sagar 0.00 0.02 0.02 9 Pench 0.00 0.00 0.00 10 Rajghat 0.00 0.06 0.06 11 Bargi 0.00 0.45 0.45

88 MPPGCL True-up Tariff Petition for FY 2017-18

MPPGCL Diff S. As per Station as per True up No. MYT Order norms Amt 12 Bansagar PH-1,2&3 0.00 0.00 0.00 13 Bansagar PH-4 1.24 1.03 -0.21 14 Birsinghpur 0.00 0.00 0.00 15 Madhikheda 5.05 4.23 -0.82 16 Total Hydro 6.29 5.79 -0.50 Total 881.71 892.72 11.01

4.5.10. After applying availability Factor, the true up amount towards interest and finance charges (including Intt. on excess equity) works out as under:

True Up Amount (at Actual Availability)

Table No. 4.5.10.1 in Rs. Crores. As considered S. As per by Station Diff. No. MYT Order MPPGCL on Actual Availability 1 ATPS PH-3 54.30 47.84 -6.46 2 STPS PH-2&3 0.00 0.00 0.00 3 STPS PH-4 254.68 218.30 -36.38 4 SGTPS PH-1&2 0.00 0.06 0.06 5 SGTPS PH-3 71.40 55.11 -16.29 5 SSTPP PH-1 495.04 419.38 -75.66 6 Total Thermal 875.42 740.68 -134.74 7 Gandhi Sagar 0.00 0.02 0.02 8 Pench 0.00 0.00 0.00 9 Rajghat 0.00 0.04 0.04 10 Bargi 0.00 0.46 0.46 11 Bansagar PH-1,2&3 0.00 0.00 0.00

89 MPPGCL True-up Tariff Petition for FY 2017-18

As considered S. As per by Station Diff. No. MYT Order MPPGCL on Actual Availability 12 Bansagar PH-4 1.24 1.10 -0.14 13 Birsinghpur 0.00 0.00 0.00 14 Madhikheda 5.05 4.18 -0.87 15 Total Hydro 6.29 5.79 -0.50 Total 881.71 746.47 -135.24

4.5.11. MPPGCL humbly requests to kindly permit the same.

90 MPPGCL True-up Tariff Petition for FY 2017-18

4.6 Interest on Working Capital

4.6.1. The Working capital has been calculated in Hon’ble Commissions order dated 14.07.2016in accordance to proviso34 of Principal Tariff Regulations, 2015. Accordingly cost of Coal towards stock for 30 days for non-pit-head generating stations for generation corresponding to the NAPAF or the maximum coal stock storage capacity whichever is lower and cost of Coal for 30 days for generation corresponding to normative annual plant availability factor ,2 Months cost of main Secondary Oil corresponding to NAPAF, O&M expenditure for 1 month, 20% of Normative O&M Expenses as maintenance spares for thermal and 15% of Normative O&M Expenses as maintenance spares for Hydro and 2 months Receivables has been considered for calculating interest on Working Capital.

4.6.2. The Power Station wise Working Capital approved by MPERC vide Tariff order dated 14.07.2016at page 60 to 68is detailed in the table below:-

Table No. 4.6.2.1 in Rs. Crores S. Station Working Capital No. for FY-18

1 ATPS PH-3 136.58 2 STPS PH-2&3 501.12 3 STPS PH-4 391.13 4 SGTPS PH-1&2 525.16 5 SGTPS PH-3 328.92 6 SSTPP PH-1 928.25 7 Total Thermal 2811.16 8 Gandhi Sagar 4.92 9 Pench 7.85 10 Rajghat 3.16 11 Bargi 4.77 12 Bansagar PH-1,2&3 32.94 13 Bansagar PH-4 3.02 14 Birsinghpur 1.41 15 Madhikheda 6.54 16 Total Hydro 64.61 Total 2875.77

91 MPPGCL True-up Tariff Petition for FY 2017-18

4.6.3. In the MYT order for FY17 to FY 19, the working capital of SSTPP PH-1 was approved by Hon’ble Commission on the basis on the Provisional Tariff Order of Unit-1 of SSTPP PH-1 for issued by Hon’ble MPERC on 10.11.2014.

Subsequently, MPPGCL has filed the Final Tariff petition for SSTPP PH- 1(2x600MW) for the period- CoD of respective units to FY 2015-16 on actual basis and for FY 17 to FY 19 on projected basis. However the Hon’ble Commission vide daily order dated 20.06.2017 in Petition No. 09 of 2017 has directed MPPGCL to revise the Final Tariff petition upto FY 2015-16. The Hon’ble Commission vide order dated 30.12.2017 has determined the Final generation tariff of U nits of SSTPP PH-1 from date of their respective CoD to FY 2015-16.

Accordingly, MPPGCL in the True up petition for FY 2016-17 has worked out the Working Capital of SSTPP PH-1 for FY 2016-17 in accordance with MPERC Regulations 2015, Actual Coal Rates & Main Secondary Oil Rates& considering the Capital cost submitted by MPPGCL in the Final Tariff petition of SSTPP PH-1. This Working Capital shall become the base for the Control Period FY 2016-17 to FY 2018-19.

The Hon’ble Commission vide True Up order for FY 2016-17 dated 24.07.2018 has considered the request made by MPPGCL has revised the working Capital of SSTPP PH-1 & reworked the interest thereon amounting to Rs. 122.44 Crores. The same is considered in the instant petition based on the approach adopted by the Hon’ble Commission in the True up order for FY 2016-17.

92 MPPGCL True-up Tariff Petition for FY 2017-18

4.6.4. Accordingly, the Normative Interest on Working Capital as approved by Hon’ble Commission in the Tariff order is reproduced below before applying Actual Availability of power stations:-

Table 4.6.4.1 in Rs. Crores S. Station As per As Diff. No. MPERC considered Order by MPPGCL on Norms

1 ATPS PH-3 17.48 17.48 0.00 2 STPS PH-2&3 64.14 64.14 0.00 3 STPS PH-4 50.06 50.06 0.00 4 SGTPS PH-1&2 67.22 67.22 0.00 5 SGTPS PH-3 42.10 42.10 0.00 6 SSTPP PH-1 118.82 122.44 3.62 7 Total Thermal 359.83 363.45 3.62 8 Gandhi Sagar 0.63 0.63 0.00 9 Pench 1.00 1.00 0.00 10 Rajghat 0.40 0.40 0.00 11 Bargi 0.61 0.61 0.00 12 Bansagar PH-1,2&3 4.22 4.22 0.00 13 Bansagar PH-4 0.39 0.39 0.00 14 Birsinghpur 0.18 0.18 0.00 15 Madhikheda 0.84 0.84 0.00 16 Total Hydro 8.27 8.27 0.00 Total 368.10 371.72 3.62

4.6.5. Normative Interest on Working Capital as approved by Hon’ble Commission & considering the true up of Interest on Working Capital of SSTPP PH-1 before applying Actual Availability works out as under:-

93 MPPGCL True-up Tariff Petition for FY 2017-18

Table 4.6.5.1 in Rs. Crores S.No. Station As per As Diff. MPERC considered Rs. Order by Crores. MPPGCL on Norms 1 ATPS PH-3 17.48 17.48 0.00 2 STPS PH-2&3 64.14 49.30 -14.84 3 STPS PH-4 50.06 47.59 -2.47 4 SGTPS PH-1&2 67.22 55.05 -12.18 5 SGTPS PH-3 42.10 35.94 -6.17 6 SSTPP PH-1 118.82 94.25 -24.57 7 Total Thermal 359.83 299.61 -60.22 8 Gandhi Sagar 0.63 0.62 -0.01 9 Pench 1.00 1.01 0.00 10 Rajghat 0.40 0.28 -0.13 11 Bargi 0.61 0.62 0.01 12 Bansagar PH-1,2&3 4.22 4.26 0.04 13 Bansagar PH-4 0.39 0.41 0.02 14 Birsinghpur 0.18 0.15 -0.03 15 Madhikheda 0.84 0.83 -0.01 16 Total Hydro 8.27 8.17 -0.10 Total 368.10 307.78 -60.32

4.6.6. MPPGCL humbly requests Hon’ble Commission to kindly permit the same.

94 MPPGCL True-up Tariff Petition for FY 2017-18

4.7 RETURN ON EQUITY:-

4.7.1. The proviso 25.1 of MPERC (Terms and Conditions for determination of Generation Tariff) Regulations, 2015 specifies debt Equity ratio of 70:30 of capital cost for the purpose of determination of Return on Equity.

4.7.2. In accordance with above, the normative Equity as on 01.04.2017 admitted by Hon’ble Commission in the True Up order for FY 2016-17 and considered in instant True Up petition is tabulated under:-

Normative Equity as on 01.04.2017

Table No.4.7.2.1 (in Rs. Crores) Normative Equity balance for ROE as Station on 1-4-2017 1 ATPS PH-3 259.02

2 STPS PH-2&3 183.99

3 STPS PH-4 631.88 4 SGTPS PH-1&2 653.17

5 SGTPS PH-3 575.60

6 SSTPP PH-1 1399.88 7 Total Thermal 3703.54

8 Gandhi Sagar 3.15

9 Pench 30.68 10 Rajghat 24.84

11 Bargi 26.29

12 Bansagar PH-1,2&3 351.97 13 Bansagar PH-4 35.05

14 Birsinghpur 15.65

15 Madhikheda 46.25 16 Total Hydro 533.88

Total 4237.42

95 MPPGCL True-up Tariff Petition for FY 2017-18

4.7.3. During FY 2017-18, Assets were transferred, de-capitalized/written-off as reflected in Audited Books of Accounts for FY 2017-18. The same is elaborated in the Chapter 4.3 Additional Capitalization/De capitalization and funding thereof.

Accordingly, the Normative Equity Balance as admitted by Hon’ble Commission in the True up for FY 2016-17 has been adjusted & detailed hereunder:-

Adjusted Opening Normative Equity Table No.4.7.3.1 (in Rs. Crores) Normative Equity Adjustments Equity balance Towards Adjusted as on Towards asset Opening Station 1-4-2017 assets write - (as per True Up transfer Bal.as on off/ 01-04-2017 order for from ATPS FY 17) to SGTPS adjustments 1 ATPS PH-3 259.02 -1.88 -1.14 256.01 2 STPS PH-2&3 183.99 -3.43 180.56 3 STPS PH-4 631.88 631.88 4 SGTPS PH-1&2 653.17 0.57 653.74

5 SGTPS PH-3 575.60 0.25 -0.01 575.84 6 SSTPP PH-1 1399.88 -0.50 1399.38 7 Total Thermal 3703.54 -1.88 0.82 -5.09 3697.40 8 Gandhi Sagar 3.15 3.15 9 Pench 30.68 30.68 10 Rajghat 24.84 -0.002 24.84 11 Bargi 26.29 26.29 12 Bansagar PH-1,2&3 351.97 -0.06 351.91 13 Bansagar PH-4 35.05 35.05 14 Birsinghpur 15.65 15.65 15 Madhikheda 46.25 46.25 16 Total Hydro 533.88 0.00 0.00 -0.06 533.82 Total 4237.42 -1.88 0.82 -5.15 4231.22

96 MPPGCL True-up Tariff Petition for FY 2017-18

4.7.4. On account of Asset additions at the existing stations as well as new projects, there is infusion of Equity during FY 2017-18. The details regarding asset additions and funding thereof during FY 2017-18 were already provided in the Chapter-4.3 Additional Capitalization/de- capitalization and funding thereof.

The table indicating the source of funding towards additional capitalization along with the calculation of normative Equity addition during FY 2017-18 is detailed as follows:-

Normative Equity addition during FY 2017-18

Table No.4.7.4.1 ( in Rs. Crores) Funding Through Balance Additional Permissible Excess Normative Stations Capital- Equity/ Equity Equity Equity ization Loan internal Total 30% of GB treated Resources as Loan

1 ATPS PH-3 2.85 0.00 2.85 2.85 0.86 0.86 2.00 2 STPS PH-2&3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 STPS PH-4 43.48 * 4.91 38.57 43.48 13.05 13.05 25.53 4 SGTPS PH-1&2 9.47 0.00 9.47 9.47 2.84 2.84 6.63 5 SGTPS PH-3 17.51 0.00 17.51 17.51 5.25 5.25 12.26 6 SSTPP PH-1 66.72 46.71 20.02 66.72 20.02 20.02 0.00 7 Total Thermal 140.03 51.62 88.42 140.03 42.01 42.01 46.41 8 Gandhi Sagar 0.65 0.00 0.65 0.65 0.19 0.19 0.45 9 Pench 1.17 0.00 1.17 1.17 0.35 0.35 0.819 10 Rajghat 6.54 0.00 6.54 6.54 1.96 1.96 4.578 11 Bargi 0.88 0.00 0.88 0.88 0.26 0.26 0.62 12 Bansagar PH-1,2 &3 2.93 0.00 2.93 2.93 0.88 0.88 2.05 13 Bansagar PH-4 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14 Birsinghpur 0.01 0.00 0.01 0.01 0.002 0.002 0.005 15 Madhikheda 0.02 0.00 0.02 0.02 0.01 0.01 0.01 13 Total Hydel 12.20 0.00 12.20 12.20 3.66 3.66 8.54 14 HQ & S&I 1.06 0.00 1.06 1.06 0.32 0.32 0.74 Total 153.29 51.62 101.67 153.29 45.99 45.99 55.69 *Including balance Asset Additions for FY 2016-17 Rs.21.84 Crores.

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4.7.5. Considering above, the normative Equity as on 31.03.2017 along with the average Equity works out as under:-

Closing Normative & Average Equity

Table No.4.7.5.1 ( in Rs. Crores) Adjusted Normative Total Average Normative Equity Normative Equity Station Equity as Addition due Equity as on on to Asset 31-3-2018 01-04-2017 Addition

1 ATPS PH-3 256.01 0.86 256.86 256.43 2 STPS PH-2&3 180.56 0.00 180.56 180.56 3 STPS PH-4 631.88 13.05 644.93 638.40 4 SGTPS PH-1&2 653.74 2.84 656.58 655.16 5 SGTPS PH-3 575.84 5.25 581.09 578.46 6 SSTPP PH-1 1399.38 20.02 1419.39 1409.39 7 Total Thermal 3697.40 42.01 3739.41 3718.41 8 Gandhi Sagar 3.15 0.19 3.34 3.25 9 Pench 30.68 0.35 31.03 30.86 10 Rajghat 24.84 1.96 26.80 25.82 11 Bargi 26.29 0.26 26.55 26.42 12 Bansagar PH-1,2&3 351.91 0.88 352.79 352.35 13 Bansagar PH-4 35.05 0.00 35.05 35.05 14 Birsinghpur 15.65 0.002 15.65 15.65 15 Madhikheda 46.25 0.01 46.26 46.25 16 Total Hydro 533.82 3.66 537.48 535.65 17 HQ 1.24 0.32 1.55 1.40 Total 4232.46 45.99 4278.44 4255.45

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4.7.6. As per proviso 30.2 of MPERC (Terms and Conditions for determination of Generation Tariff) Regulations, 2015, the Return on Equity is to be computed at a base rate of 15.5% which is to be grossed up by the tax rate. Since MPPGCL has not paid any Corporate tax during FY-2017-18, MPPGCL has worked out the Return on Equity on pre tax basis at a base rate of 15.5% as tabulated below:-

Return on Equity for FY 2017-18

Table No.4.7.6.1 ( in Rs. Crores) Average RoE Station Equity @ 15.5%

1 ATPS PH-3 256.43 39.75 2 STPS PH-2&3 180.56 27.99 3 STPS PH-4 638.40 98.95 4 SGTPS PH-1&2 655.16 101.55 5 SGTPS PH-3 578.46 89.66 6 SSTPP PH-1 1409.39 218.45 7 Total Thermal 3718.41 576.35 8 Gandhi Sagar 3.25 0.50 9 Pench 30.86 4.78 10 Rajghat 25.82 4.00 11 Bargi 26.42 4.10 12 Bansagar PH-1,2&3 352.35 54.61 13 Bansagar PH-4 35.05 5.43 14 Birsinghpur 15.65 2.43 15 Madhikheda 46.25 7.17 16 Total Hydro 535.65 83.03 17 HQ 1.40 0.22 Total 4255.45 659.59

99 MPPGCL True-up Tariff Petition for FY 2017-18

4.7.7. The Hon’ble Commission has determined Return on Equity for FY 2017- 18in the MYT order for FY 17 to FY 19 vide its order dated 14.07.2017.The power Station wise break up of Interest on Normative Equity approved by Hon’ble Commission for FY 2017-18 is detailed as under:

Table No.4.7.7.1 (in Rs. Crores)

Station As per MYT order

1 ATPS PH-3 38.25

2 STPS PH-2&3 28.61

3 STPS PH-4 94.79

4 SGTPS PH-1&2 100.66

5 SGTPS PH-3 89.10

6 SSTPP PH-1 196.70

7 Total Thermal 548.11

8 Gandhi Sagar 0.49

9 Pench 4.67

10 Rajghat 3.85

11 Bargi 4.05

12 Bansagar PH-1,2&3 54.28

13 Bansagar PH-4 5.43

14 Birsinghpur 2.43

15 Madhikheda 7.17

16 Total Hydro 82.37

17 HQ 0.00

Total 630.48

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4.7.8. The Equity of HQ has been linked to nearest power station i.e. Bargi HPS for simplicity.

4.7.9. Considering above, the true up of Return on Equity claimed in the instant True up petition before applying Normative Annual Plant Availability Factor (NAPAF) works out as under:-

RoE(before applying NAPAF)

Table No.4.7.9.1 (in Rs. Crores) Diff As per MYT MPPGCL as Station True up order per norms Amt 1 ATPS PH-3 38.25 39.75 1.50 2 STPS PH-2&3 28.61 27.99 -0.62 3 STPS PH-4 94.79 98.95 4.16 4 SGTPS PH-1&2 100.66 101.55 0.89 5 SGTPS PH-3 89.10 89.66 0.56 6 SSTPP PH-1 196.70 218.45 21.75 6 Total Thermal 548.11 576.35 28.24 7 Gandhi Sagar 0.49 0.50 0.01 8 Pench 4.67 4.78 0.11 9 Rajghat 3.85 4.00 0.15 10 Bargi 4.05 4.31 0.26 11 Bansagar PH-1,2&3 54.28 54.61 0.33 12 Bansagar PH-4 5.43 5.43 0.00 13 Birsinghpur 2.43 2.43 0.00 14 Madhikheda 7.17 7.17 0.00 15 Total Hydro 82.37 83.24 0.87 Total 630.48 659.59 29.11

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4.7.10. After applying the Availability factor the return on Equity works out as under:

RoE (at Actual Availability) Table No.4.7.10.1 (in Rs. Crores) As considered Diff As per MYT Station by MPPGCL True up order on Actual Amt Availability 1 ATPS PH-3 38.25 39.75 1.50 2 STPS PH-2&3 28.61 21.51 -7.10 3 STPS PH-4 94.79 94.06 -0.73 4 SGTPS PH-1&2 100.66 83.16 -17.50 5 SGTPS PH-3 89.10 76.53 -12.57 6 SSTPP PH-1 196.70 168.16 -28.54 6 Total Thermal 548.11 483.17 -64.94 7 Gandhi Sagar 0.49 0.50 0.01 8 Pench 4.67 4.79 0.12 9 Rajghat 3.85 2.76 -1.09 10 Bargi 4.05 4.39 0.34 11 Bansagar PH-1,2&3 54.28 55.13 0.85 12 Bansagar PH-4 5.43 5.78 0.35 13 Birsinghpur 2.43 2.03 -0.40 14 Madhikheda 7.17 7.07 -0.10 15 Total Hydro 82.37 82.45 0.08 Total 630.48 565.61 -64.87

4.7.11. MPPGCL humbly requests the Hon’ble Commission to kindly permit the same.

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4.8 Non Tariff Income

4.8.1. The Hon’ble Commission in (Terms and conditions for determination of Generation Tariff) Regulations, 2015, MPERC has prescribed for Non- Tariff Income, as per proviso 53.1 Any income being incidental to the business of the Generating Company derived from sources other than income from sale of energy shall constitute the non tariff income.

4.8.2. The Power Station wise Other Income as per the audited books of accounts for FY 2017-18as reflected in Note/Schedule -27.1 amounts to Rs.230.53Crores (including income from sale of Fly Ash).

4.8.3. The aforesaid Other Income amounting to Rs. 230.53 Crores includes following income which has not been considered under the head Non– Tariff income in accordance with MPERC Regulations:-

(a) Intt income on Tariff Revisions:-

The Hon’ble Commission has determined the Final generation Tariff of SSTPP PH-1 Khandwa vide order dated 30.12.2017 in petition No.09 of 2017 and True Up Generation Tariff of Power Stations of MPPGCL for FY 2016-17 vide order dated 34.07.2018 in petition No,02 of 2018. In accordance with aforesaid orders, MPPGCL has billed the differential amount on the MPPMCL and claimed the interest as per proviso 8.15 of MPERC regulations 2015 amounting to Rs.117.50 Crores.

As per requirement of IndAS the said interest amount is included in the amount of other income. However, said interest is integral part of Revenue from sale of Energy and billed as per MPERC Regulations, it is therefore requested not to consider the same as Non-Tariff income.

(b) Fair value gain on Embedded Derivative:-

MPPGCL has adopted Indian Accounting Standard (IndAS) from FY 2016-17. The said Accounting Standard provides for recognition of notional income on account of expected gain from Foreign Exchange (Embedded Derivative). Accordingly, in

103 MPPGCL True-up Tariff Petition for FY 2017-18

compliance to IndAS, MPPGCL has recognized notional income of Rs. 1.82 Crores at 2x660MW SSTPP PH-2, Khandwa (under construction) in the Financial Statement of Accounts for FY 2017- 18.

Here it is to mention that this amount of Rs. 1.82 Crores is merely a Book adjustment and no actual cash is received by MPPGCL, the corresponding impact of this book adjustment can be seen at Note No. 4 Other Financial Assets – Non Current item No. 4 at page 23 and Note No. 16 Other Current Financial Liabilities page 63 of Audited Statement of accounts for FY 2017-18.

Here it is to mention that Hon’ble Commission in its True-up Order dated 24.07.2018 at Para 208(iii) has not considered the same as part of Non Tariff Income.

As this income is expected gain and purely notional value in nature and pertains to Power Station under construction whose Tariff has not yet determined by Hon’ble Commission. MPPGCL, therefore humbly requests before Hon’ble Commission to not to consider this amount of Rs. 1.82 Crores as part of Non Tariff income.

(c) Interest Income on Security Deposit due to Unwinding of Discount:-

MPPGCL has adopted Indian Accounting Standard (INDAS) from FY 2016-17. The said Accounting Standard provides for recognition of notional income on account of expected gain considering discounting of Interest on Security Deposit. Accordingly, in compliance to IndAS, MPPGCL has recognized notional income of Rs. 21.48 Crores at SSTPP Stage-I &II, Khandwa (under construction) and balance of Rs. 1.13 Crores at other existing Power Stations (Total Rs. 22.62 Crores) in the Financial Statement of Accounts for FY 2017-18.

Here it is to mention that this amount of Rs. 22.62 Crores is merely a Book adjustment and no actual cash is received by MPPGCL, the corresponding impact of this book adjustment can

104 MPPGCL True-up Tariff Petition for FY 2017-18

be seen at Note No.30 item No.14 at page 83 of Audited Statement of accounts for FY 2017-18. It is to mention that the Hon’ble Commission in the True Up order for FY 2016-17 has not considered this head for determination of Non-Tariff income.

MPPGCL, therefore humbly requests before Hon’ble Commission to not to consider this amount of Rs.22.62Crores as part of Non-Tariff income.

(d) Income from Left Bank Canal:-

Hon’ble Commission has permitted sale of power to MPPMCL by Narmada Valley Development Authority (NVDA) from 2x5 MW (SHP) Rani Awanti Bai Sagar Hydel power Station located on Left Bank Canal for irrigation at Bargi Dam.

NVDA on normative O&M charges (SHP) has contracted the O&M of plant to MPPGCL. The expenses permitted by Commission in computation of Tariff for SHP are on normative basis. Any excess is to be borne by NVDA and at the same time savings are to be retained by it. Thus the O&M Charges paid to MPPGCL be also treated on normative basis. As per the requirement of financial accounts the amount received / receivable towards O&M charges is to be treated as Other Income in Audited Books of Accounts of MPPGCL.

As this receivable of Rs.1.47Crores is a sort of reimbursement towards expenditure incurred by MPPGCL, therefore, the same may kindly not to be considered as part of Non- Tariff income,

(e) Reversal of Impairment loss for Dada Dhuniwale Khandwa Power Limited (DDKPL).:-

MPPGCL has adopted Indian Accounting Standard (IndAS) from FY 2016-17. Here it is to mention that Dada Dhuniwale Khandwa Power Limited is a Joint Venture Power Project of MPPGCL and BHEL with equal share. The JV Company was incorporated for development of 2x800MW Thermal Power

105 MPPGCL True-up Tariff Petition for FY 2017-18

Project in Khandwa District. Both MPPGCL and BHEL had infused Rs. 22.50 Crores towards initial Equity. Consequently, due to non-availability of coal for the project, it was decided by both the developers to wind-up this joint venture.

Accordingly DDKPL is in voluntary liquidation process and company in its AGM held on 15.11.2017 has appointed Liquidator for the same.

In FY 2016-17 MPPGCL has impaired 50% of expenses incurred on the project in accordance with applicable INDAS as reflected in Note 33 at page 89 of Audited Annual Statements of Accounts for FY 2017-18. The same was not considered/permitted as expense by the Hon’ble Commission in FY 2016-17. However, impairment to the extent of Rs. 1.51 Crores has been reversed after receipt of such amount during FY 2017-18.

As this income pertains to DDKPL a Power Station under construction (now in wind-up stage) who’s Tariff has not yet determined by Hon’ble Commission. MPPGCL, therefore humbly requests before Hon’ble Commission to not to consider this amount of Rs. 1.51 Crores as part of Non Tariff income.

(f) Reversal of Impairment loss of ATPS PH-2 Chachai.

The BoD of MPPCGL has resolved to retire its two units each of 120 MW at ATPS Chachai from the commercial operations w.e.f.01.05.2014 & 13.01.2015 respectively The GoMP & subsequently Central Electricity Authority has approved the same. It was also decided to sell the decommissioned Assets and inventories of these units after its valuation from independent valuer.

The sale process was carried out through E-auction method in July-18 and the Plant has been sold in Aug-18 to M/s Safah Multitrade Pvt. Ltd. Mumbai at Rs. 77.00 Crs. Since the fair value is higher than the cost, hence the Assets held for sale were valued at cost. Accordingly the provision for impairment loss created

106 MPPGCL True-up Tariff Petition for FY 2017-18

Audited Books of Accounts for FY 2016-17 amounting to Rs. 17 Crores is revered in FY 2017-18. The same was not considered/permitted as expense by the Hon’ble Commission in FY 2016-17. Being merely a book adjustment , it is requested that the same may kindly be not to be considered as part of Non-tariff income.

(g) Liquidated Damages of SSTPP PH-1 Khandwa.

In FY 2017-18, MPPGCL has deducted liquidated damages of Rs.8.11 Crores from M/S L&T against delay in execution in project. The same booked under –Other Income head of Audited Books of Accounts FY 2017-18.

Here it is to mention that the Hon’ble Commission vide order dated 30.12.2017 has determined the Final Generation Tariff SSTPP PH-1 Khandwa. In the aforesaid order, para73 at page 34, the Hon’ble Commission has already deducted the IDC filed by the MPPGCL by Rs.282.56 Crores due to delay in completion of project in accordance with APTEL Judgment in Appeal No.72 of 2011.

Accordingly, it is requested that the liquidated damages from M/s L&T against delay in execution in project may kindly not to be considered as part of Non tariff income.

(h) Income from RP Sagar & Jawahar Sagar HPS:-

The Rana Pratap Sagar HPS and Jawahar Sagar HPS are situated in Rajasthan and are being operated by Rajasthan Rajya Vidyut Prasaran Nigam Ltd. The Hon’ble Commission does not determine the Tariff of these Hydro Stations, accordingly the income from these Hydro Power Stations has not been considered as Non-Tariff Income by MPPGCL for tariff purpose.

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4.8.4. Considering above, the Non-Tariff income works out as under :-

Table No. 4.8.4.1 in Rs. Crores Particulars Amount Total as per Audited Accounts (on share Basis) 230.53 Less:-

Interest income on Tariff Revisions 117.50 Interest Income on unwinding of discount on Deposits/ Retention 22.62 Fair value gain on embedded derivative 1.82 Reversal of Impairment Loss of ATPS PH-2 17.00 Reversal of Impairment Loss of Dada Dhuni wale Project 1.51 Liquidated Damages at SSTPP PH-1 8.12 Income from left Bank Canal 1.47 Income of Rana Pratap Sagar 0.01 Income from Jawahar Sagar 0.01 Net Income(on share basis) 60.48

4.8.5. The aforesaid non-tariff income of Rs.60.48 Crores is re-factored to 100% and Powerhouse wise breakup of same is tabulated below:-

Table No. 4.8.5.1 in Rs. Crores Considered in Stations instant petition (100% Basis) 1 ATPS PH-3 4.79 2 STPS PH-2&3 7.59 3 STPS PH-4 4.84 4 SGTPS PH-1&2 19.69 5 SGTPS PH-3 11.72 6 SSTPP PH-1 7.68 7 Total Thermal 56.30 8 Gandhi Sagar 0.84 9 Pench 0.90 10 Rajghat 0.32 11 Bargi 0.50 12 Bansagar PH-1,2 &3 2.12 13 Bansagar PH-4 0.10 14 Birsinghpur 0.02 15 Madhikheda 0.25 16 Total Hydel 5.06 17 HQ & S&I 0.00 Total 61.37

4.8.6. MPPGCL humbly requests before Hon’ble Commission to kindly consider the same.

108 MPPGCL True-up Tariff Petition for FY 2017-18

5. Balance Depreciation of ATPS PH-2 (2x120MW)

5.1.1. The CEA New Delhi vide Order No. CEA/ PLG/ PDM/ 545/ 2016 dated 04.03.2016 have approved the retirement of Unit No. 3 and 4 of ATPS PH-2 w.e.f. 13th January 2015 and 1 May 2014 respectively.

5.1.2. Accordingly, majority of Assets of Unit No. 3& 4 of ATPS PH-2 have been de-capitalized from the Gross Block of ATPS PH-2in the Audited Books of Accounts for FY 2015-16. The remaining assets of common service were transferred to ATPS PH-3.

5.1.3. MPPGCL in the true up petition for FY 2015-16 has claimed balance depreciation on the assets de-capitalized at ATPS PH-2 amounting to Rs.25.67 Crores. In the matter, the Hon’ble Commission in its true up order for FY 2015-16 at Para-211 at page 87 stated as under:

“it would be appropriate to deal with this issue of balance depreciation with the next true-up exercise under the provisions of Regulations and accounting principles in terms of actual salvage value of all such assets. “

5.1.4. In this regard, it is to submit that MPPGCL has conducted the Third part valuation of de-capitalized assets and inventories of ATPS PH-2 by M/s Steag Energy Services Ltd, Noida which came to Rs.68.08 Crores. The Net value (after depreciation) of these assets and inventories as per Note- 12 page 35 of Audited books of Accounts for FY 2017-18 amounted to Rs. 33.39 Crores. Further, the sale process was carried out through E-auction method in July-18 and the de-capitalized assets and inventories of ATPS PH-2 have been sold in Aug-18 to M/s Safah Multitrade Pvt. Ltd. Mumbai at Rs. 77.00 Crs.

5.1.5. The majority of Assets of Unit No. 3& 4 of ATPS PH-2 have been de- capitalized from the Gross Block of ATPS PH-2in the Audited Books of Accounts for FY 2015-16 amounting to Rs. 150.18 Crores. The remaining assets amounting to Rs.72.05 Crores towards common service were transferred to ATPS PH-3 and were considered by the Hon’ble Commission in the True up order for FY 2015-16.

109 MPPGCL True-up Tariff Petition for FY 2017-18

5.1.6. The Gross Block of ATPS PH-2 as admitted by Hon’ble Commission in True up order for FY 2014-15 amounts to Rs. 222.28 Crores. Out of said Gross Block, assets decommissioned/ transferred as per Audited Books of Accounts for FY 2015-16 are summarized as under:-

Table No.5.1.6.1 Rs. Crores Particulars Amount Gross Block admitted by MPERC as on 31.03.2015 222.28 1 Assets decommissioned 150.18 2 Transferred to ATPS PH-3 72.05 3 Transferred to SGTPS PH-1&2 0.05 Total(1+2+3) 222.28

5.1.7. The Account code wise details of Assets de-capitalized are tabulated as under:-

List of Assets De-Capitalized from ATPS PH-2 Table No.5.8.1.2 Rs. Crores A/c Code Details Amount 10.201 Buildings Containing Thermo Elec. Gen. Plant 4.16 10.311 Cooling Towers 0.03 10.501 Boiler Plant & Equipments 52.68 10.503 Turbine-Generator-Steam Power Generation 58.75 10.504 Plant Foundations For Steam Power Plant 0.65 10.507 Ash Handling Plant 17.53 10.509 Auxiliaries In Steam Power Plant 0.08 10.512 Coal Conveyor & Crusher 0.27 10.515 Coal Handling Plant & Handling Equipments 2.00 10.520 Instrumentation And Controls 3.98 10.541 Transmission Plant-Transformers 100 Kva & Above 1.64 10.542 Other Transformers Of Power House 2.32 10.546 Line Transformer Below 100 Kva 0.63 10.551 Material Handling Equipment-Earth-Movers, Bulldozer 0.15 10.561 Switchgears Including Cable Connections 0.89 10.563 Batteries Including Charging Equipment 0.14 10.576 Air-Conditioning Plant Static 0.90 10.599 Other Misc Equip. Including Fire Protection System 1.32 10.603 Overhead Lines On R.C. Support 0.01 10.611 Underground Cables Including Jt. Boxes & Disconnect. Box 1.18 10.612 Underground Cables - Cable Duct System 0.68 10.613 Internal Wiring Including Fittings & Fixtures 0.17 Total 150.18

110 MPPGCL True-up Tariff Petition for FY 2017-18

5.1.8. The Accumulated Depreciation of ATPS PH-2 as approved by Hon’ble Commission in True up order for FY 2014-15 amounts to Rs. 160.44 Crores. The Balance Depreciation of Assets De-Capitalized works out as under:-

Break up of Accumulated Depreciation

Table No. 5.1.8.1 Rs. Crores Gross Acc. Particulars % Block Depreciation Balance as on 31.03.2015 as admitted by 222.28 160.44 Hon’ble MPERC 72% A Assets De-capitalized 150.18 108.40 72% B Assets Transferred to ATPS PH-3 72.05 52.00 C Assets Transferred to SGTPS PH-1&2 0.05 0.04 90% Total (A+B+C) 222.28 160.44 72%

Balance depreciation of Assets De-capitalized

Table No.5.1.8.2 Rs. Crores Particulars Amount 1 Gross Block of Assets De-capitalized 150.18 2 Acc. Depreciation of Assets de-capitalized 108.40

Maximum Permissible Depreciation 3 135.16 ( 90% of Gross Block) 4 Balance depreciation(3-2) 26.76

5.1.9. The balance depreciation of assets de-capitalized ATPS PH-2 has been worked out as per MPERC Regulation It is humbly requested before Hon’ble Commission to kindly to kindly consider the issue of balance depreciation of de-capitalized assets of APTS PH-2 &permit recovery of Balance depreciation of Rs. 26.76 Crores separately.

111 MPPGCL True-up Tariff Petition for FY 2017-18

6. Requirement for True up FY 2017-18:-

6.1.1 The instant true up is based on the Annual Statement of Audited accounts for FY 2017-18. The Element wise breakup of difference in

amount as per MPERC orders v/s Norms is given below:-

Element wise Breakup

Table No. 6.1.1.1 (Amount in Rs. Crores) Annual Fixed Cost FY 2017-18 Particulars Elements As per MPPGCL MPERC as per Diff. Orders norms O & M Expenses 1031.95 1046.38 14.43 Compensation Allowance 6.30 6.30 0.00 Special Allowance 82.05 82.05 0.00 Fixed Cost Interest on Loan + Excess Equity 881.71 892.72 11.01 Elements Interest on Working Capital 368.10 371.72 3.62 Depreciation 736.60 801.36 64.76 Return on Equity 630.48 659.59 29.11 Less Non Tariff Income 0.00 61.37 -61.37 Total 3737.19 3798.75 61.57

6.1.2 Station wise breakup of difference in amount as per MPERC order v/s Norms is given below:-

Station wise Break up

Table No. 6.1.2.1 Amount in Rs. Crores As per MPPGCL S. Station MYT as per Diff. No. Order norms 1 ATPS PH-3 214.20 207.86 -6.34 2 STPS PH-2&3 388.28 383.24 -5.04 3 STPS PH-4 705.36 684.18 -21.19 4 SGTPS PH-1&2 434.41 420.23 -14.18 5 SGTPS PH-3 410.22 393.29 -16.93 6 SSTPP PH-1 1328.73 1456.25 127.52 7 Thermal 3481.20 3545.05 63.84 8 Gandhi Sagar 12.94 12.44 -0.50 9 Pench 24.08 23.29 -0.80

112 MPPGCL True-up Tariff Petition for FY 2017-18

As per MPPGCL S. Station MYT as per Diff. No. Order norms 10 Rajghat 12.51 12.33 -0.18 11 Bargi 15.69 16.35 0.66 12 Bansagar PH-1,2&3 139.35 138.75 -0.60 13 Bansagar PH-4 15.23 15.01 -0.22 14 Birsinghpur 5.59 5.89 0.31 15 Madhikheda 30.59 29.65 -0.94 16 Hydro 255.98 253.71 -2.27 Total 3737.19 3798.75 61.57

6.1.3 The difference between Annual Fixed Charges approved by the Hon’ble Commission for FY 2017-18 in its MPERC orders vis-à-vis the true up requirement after applying Actual Availability on fixed cost elements of thermal power stations and actual Availability applicable on capacity charges for Hydro Power Stations based on 100% capacity of the plants operated by MPPGCL worked out is tabulated below:-

True Up Requirement for FY 2017-18 Table No.6.1.3.1 Amount in Rs. Crores Annual Fixed Cost FY 2017-18 Particulars Elements As per MPPGCL MPERC as per Diff. Orders norms O & M Expenses 1031.95 884.56 -147.38 Compensation Allowance 6.30 5.16 -1.14 Special Allowance 82.05 63.07 -18.98 Fixed Cost Interest on Loan+ Excess Equity 881.71 746.47 -135.24 Elements Interest on Working Capital 368.10 307.78 -60.32 Depreciation 736.60 684.09 -52.51 Return on Equity 630.48 565.61 -64.87 Less Non Tariff Income 0.00 61.37 -61.37 Total 3737.19 3195.37 -541.82

113 MPPGCL True-up Tariff Petition for FY 2017-18

6.1.4 The Power station wise break up of true up amount after applying actual Availability on fixed cost elements of thermal power stations and actual Availability on capacity charges for Hydro Power Stations worked out as under:-

True Up Requirement for FY 2017-18

Table No. 6.1.4.1 Amount in Rs. Crores As considered As per S. by Station MYT Diff. No. MPPGCL Order on actual Availability 1 ATPS PH-3 214.20 207.86 -6.34 2 STPS PH-2&3 388.28 292.83 -95.45 3 STPS PH-4 705.36 650.14 -55.22 4 SGTPS PH-1&2 434.41 340.55 -93.86 5 SGTPS PH-3 410.22 333.97 -76.26 6 SSTPP PH-1 1328.73 1119.19 -209.54 7 Thermal 3481.20 2944.54 -536.66 8 Gandhi Sagar 12.94 12.23 -0.71 9 Pench 24.08 23.31 -0.78 10 Rajghat 12.51 8.41 -4.11 11 Bargi 15.69 16.67 0.98 12 Bansagar PH-1,2&3 139.35 140.09 0.74 13 Bansagar PH-4 15.23 15.97 0.74 14 Birsinghpur 5.59 4.92 -0.67 15 Madhikheda 30.59 29.23 -1.35 16 Hydro 255.98 250.83 -5.15 Total 3737.19 3195.37 -541.82

6.1.5 Apart from above, Other Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on R&M, Cost of Chemical & Consumable and Publication expenses incurred by MPPGCL and as per audited Annual Statement of Accounts for FY 2017-18 on 100% basis as detailed as hereunder:-

114 MPPGCL True-up Tariff Petition for FY 2017-18

Table No.6.1.5.1 Amount in Rs. Crores S. No. Particulars Total

1 Rent, Rates & Taxes 0.77 2 Wage Revision Arrears 115.53 3 Water Charges 64.17 4 Cost of Chemicals & Consumables 11.56 5 MPERC Fee + Publication Exp. 1.61 6 Earned Leave Encashment 57.06 Total 250.70

6.1.6 The Power station wise break up of Other Charges is as under:-

True Up Requirement for FY 2017-18

Table No.6.1.6.1 Amount in Rs. Crores Other S.No. Power Station Charges 1 ATPS PH-3 28.70 2 STPS PH-2&3 42.67 3 STPS PH-4 23.35 4 SGTPS PH-1&2 30.98 5 SGTPS PH-3 18.44 6 SSTPP PH-1 49.79 7 Total Thermal 193.93 8 Gandhi Sagar HPS 17.30 9 Pench HPS 3.27 10 Rajghat HPS 2.54 11 Bargi HPS 6.73 12 Bansagar PH-1,2&3 HPS 22.20 13 Bansagar PH-4 1.10 14 Birsinghpur HPS 0.67 15 Madhikheda HPS 2.97 16 Total Hydro 56.77 Total 250.70

6.1.7 It is requested before the Hon’ble Commission to kindly permit the same.

115 MPPGCL True-up Tariff Petition for FY 2017-18

ANNEXURE-1

COPY OF DEMAND DRAFT TOWARDS MPERC FEE FOR TRUEUP FY18

116