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Petition for Fy 2015-16 and True-Up for Fy 2013-14

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Petition for Fy 2015-16 and True-Up for Fy 2013-14 UTTARAKHAND POWER CORPORATION LIMITED TARIFF PETITION FOR FY 2015-16 AND TRUE-UP FOR FY 2013-14 SUBMITTED TO: UTTARAKHAND ELECTRICITY REGULATORY COMMISSION Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14 TABLE OF CONTENTS A1: INTRODUCTION ................................................................................................................................. 6 A2: PAST ADJUSTMENT .......................................................................................................................... 8 A3: PROVISIONAL TRUE-UP FOR FY 2013-14 .................................................................................... 9 POWER PURCHASE EXPENSES .......................................................................................................................... 9 OPERATION AND MAINTENANCE EXPENSES .................................................................................................. 11 INTEREST AND FINANCE CHARGES ............................................................................................................... 14 DEPRECIATION............................................................................................................................................... 16 INTEREST ON WORKING CAPITAL................................................................................................................. 16 REVENUE FROM TARIFF AND DISTRIBUTION LOSSES ................................................................................... 18 COLLECTION EFFICIENCY ............................................................................................................................. 20 PROVISION FOR BAD AND DOUBTFUL DEBTS.................................................................................................. 20 NON-TARIFF INCOME (NTI) .......................................................................................................................... 20 SHARING OF GAINS AND LOSSES ................................................................................................................... 21 ARR AND REVENUE FOR FY 2013-14 ........................................................................................................... 22 A4: ANNUAL REVENUE REQUIREMENT AND DETERMINATION OF TARIFF FOR FY 2015- 16 24 Energy Sales Forecast ............................................................................................................................... 24 Projection of Energy Sales - comparing multiple methodologies............................................................... 25 Energy Sales - From Draft 18th Electric Power Survey Projections .......................................................... 25 Projection of Energy Sales - Adjusted Trend Analysis (CAGR) Method .................................................... 26 Projection of Connected Load and Number of Consumers ........................................................................ 29 DISTRIBUTION LOSS TRAJECTORY ................................................................................................................ 30 COLLECTION EFFICIENCY ............................................................................................................................. 31 POWER PROCUREMENT PLAN ........................................................................................................................ 32 Procurement of Power and Uttarakhand’s Allocated Share ...................................................................... 32 Broad Approach for Projecting Power Availability ................................................................................... 33 Availability from UJVNL Stations .............................................................................................................. 33 Availability from NTPC Stations ................................................................................................................ 34 Availability from NHPC Stations ............................................................................................................... 35 Availability from THDC Stations ............................................................................................................... 35 Availability from SJVNL Stations............................................................................................................... 36 Availability from NPCIL Stations .............................................................................................................. 36 Availability from Vishnu Prayag Hydro Electric Project ........................................................................... 37 Availability from Independent Power Producers (IPP) Stations ................................................................ 37 New stations ............................................................................................................................................... 38 Transmission losses ................................................................................................................................... 39 PROCUREMENT OF DEFICIT POWER AND ADJUSTMENT OF SURPLUS POWER ............................................... 41 PROJECTION OF POWER PURCHASE COST .................................................................................................... 41 Cost of Power from UJVNL stations .......................................................................................................... 41 Cost of power from NHPC Stations ........................................................................................................... 41 Cost of power from NPCIL Stations ........................................................................................................... 42 Cost of power from THDC Stations ........................................................................................................... 42 Cost of power from SJVNL Stations ........................................................................................................... 42 Cost of power procured from IPPs, Private Projects ................................................................................. 43 Cost of State royalty power ........................................................................................................................ 43 Cost of power from New stations ............................................................................................................... 43 Cost of power from short-term sources ...................................................................................................... 43 Total Power purchase Cost for FY 2015-16............................................................................................... 44 Inter-state and Intra-state Transmission Charges...................................................................................... 46 CAPITAL EXPENDITURE PLAN ....................................................................................................................... 46 Proposed Capital expenditure and Capitalization ..................................................................................... 47 INTEREST ON LOAN CAPITAL ........................................................................................................................ 48 INTEREST ON CONSUMER SECURITY DEPOSIT ............................................................................................... 49 RETURN ON EQUITY ....................................................................................................................................... 49 OPERATION AND MAINTENANCE EXPENSES .................................................................................................. 50 Projection of Employee Costs (EMPn) ...................................................................................................... 50 Projection of Administrative and General Expenses (A&Gn) .................................................................... 52 2 | P a g e Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14 Projection of Repair and Maintenance Expenses (R&Mn) ........................................................................ 53 Total Operation and Maintenance Expenses ............................................................................................. 53 PROVISION FOR BAD DEBTS .......................................................................................................................... 54 DEPRECIATION............................................................................................................................................... 54 INTEREST ON WORKING CAPITAL................................................................................................................. 55 NON-TARIFF INCOME .................................................................................................................................... 55 LIABILITY TOWARDS UJVNL........................................................................................................................ 56 ANNUAL REVENUE REQUIREMENT FOR FY 2015-16 .................................................................................... 56 A5: REVENUE PROJECTIONS .............................................................................................................. 58 REVENUE AT EXISTING TARIFF .....................................................................................................................
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