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Lower Assam Electricity Distribution Company Limited (LAEDCL) PETITION FOR ANNUAL REVENUE REQUIREMENT And TARIFF PROPOSAL FOR THE FINANCIAL YEAR 2006-2007 Submission of Text and Affidavit To Assam Electricity Regulatory Commission By Lower Assam Electricity Distribution Company Limited Bijulee Bhawan, Paltanbazar Guwahati-781 001 BEFORE THE ASSAM STATE ELECTRICITY REGULATORY COMMISSION, GUWAHATI. Petition No. – Case No. (to be filed by the Office) IN THE MATTER OF Filing of Annual Revenue Requirement Proposal for the year 2006-2007 AND Petition for Determination of Tariff For the year 2006-2007 AND IN THE MATTER OF Lower Assam Electricity Distribution Company Limited Bijulee Bhawan, Paltanbazar, Guwahati-781 001. Petitioner I, _________________________________________ son of Shri _________________________ aged _______ years residing at _________________________ do solemnly affirm and say as follows: I am the ___________________________ of Lower Assam Electricity Distribution Company Limited, the petitioner in the above matter and am duly authorized by the said Petitioner to make this affidavit for and on behalf of Lower Assam Electricity Distribution Company Limited. The Statement made in the Petition based on information received from official records and I believe them to reflect truly and nothing materials has been concealed from the statements so made or documents or supporting data etc. attached. Solemnly affirm at Guwahati on ___________th day of __________ 2005 that the contents of this affidavit are true to may knowledge, no part of it is false or nothing material has been concealed therefore and misleading material included therein. Deponent Place: Guwahati Date _________ By order of the Commission Secretary of the Commission Petition for Approval of ARR and Revision of Tariff for FY 2006-07 TABLE OF CONTENTS T1: Legal and Regulatory Framework..................................................................................................11 T2: Annual Revenue Requirement for FY 2006-07..............................................................................11 SALES FORECAST FY 2006-07 ..........................................................................................................11 EFFICIENCY PARAMETERS ................................................................................................................14 Distribution Loss Levels .....................................................................................................................14 Collection Efficiency...........................................................................................................................14 Aggregate Technical & Commercial (AT&C) Losses ........................................................................14 BASIS FOR PROJECTION OF THE ANNUAL REVENUE REQUIREMENT for FY 2006-07.......................15 Power Purchase Cost .........................................................................................................................16 Employee Expenses.............................................................................................................................16 Repair and Maintenance Expenses.....................................................................................................18 Administrative and General Expenses................................................................................................19 Depreciation .......................................................................................................................................20 Interest & Financing Charges............................................................................................................21 Term Loans and Interest on Term Loans ..........................................................................................21 Provision for Bad and Doubtful Debts ...............................................................................................22 Return on Equity.................................................................................................................................22 Other Income ......................................................................................................................................23 T3: Investment Plan for FY 2006-07....................................................................................................24 Accelerated Power Development and Reform Program (APDRP) ....................................................24 Non Lapsable Central Pool of Resources (NLCPR)...........................................................................25 Rural Electrification...........................................................................................................................26 Rural Electrification (Minimum Needs Program)..............................................................................26 Prime Minister Gramudyog Yojana (PMGY) .....................................................................................26 Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) ....................................................................27 Tribal Sub Plan (TSP) ........................................................................................................................27 Scheduled Caste Component Plan (SCCP) ........................................................................................27 ADB Financed Schemes......................................................................................................................27 Counter Part Fund for ADB Funded Schemes ...................................................................................27 STATE PLAN FUND ............................................................................................................................27 Distribution Line and Sub Station Augmentation...............................................................................27 Disaster Management.........................................................................................................................28 T4: Efficiency Improvement Initiatives................................................................................................28 Energy accounting –Installation of electronic meters at 11KV feeders .............................................28 Efforts for controlling 11 KV Interruption .........................................................................................28 Loss Management...............................................................................................................................29 Lower Assam Electricity Distribution Company Limited Page 3 of 97 Petition for Approval of ARR and Revision of Tariff for FY 2006-07 Customer Care Processes...................................................................................................................35 Performance Incentive Scheme...........................................................................................................36 T5: Revenue from Charges and Proposal for Tariff Revision ..............................................................37 Revenue from Existing Charges .........................................................................................................37 Tariff Revision Proposal.....................................................................................................................38 Revenue from existing tariff insufficient to cover costs ......................................................................38 Facilitating New Investments .............................................................................................................38 Tariff Philosophy ................................................................................................................................38 Expected Revenue from Proposed Charges ......................................................................................39 T6: Proposed Tariff...............................................................................................................................41 PROPOSED REVISION IN TARIFFS ......................................................................................................41 PROPOSAL FOR REVISED TARIFFS.....................................................................................................41 LT Category-I: Domestic A (including Jeevan Dhara - to be merged with LT Domestic A) .............41 LT Category-II: LT Domestic B..........................................................................................................41 LT Category-III: LT Commercial .......................................................................................................42 LT Category-IV: LT General Purpose Supply....................................................................................42 LT Category-V: LT Public Lighting ...................................................................................................42 LT Category-VI: LT Agriculture.........................................................................................................42 LT Category-VII: LT Small Industries................................................................................................43 LT Category-VIII: Temporary Supplies.............................................................................................43 HT Category-I: HT Domestic ............................................................................................................43 HT Category-II:
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