2 TARIFF ORDER TRUE-UP FOR FY 2018-19 REVIEW FOR FY 2019-20 AND DETERMINATION OF AGGREGATE REVENUE REQUIREMENT & TRANSMISSION TARIFF FOR FY 2020-21 FOR MANIPUR STATE POWER COMPANY LIMITED Petition (ARR & Tariff) No.3 JOINT ELECTRICITY REGULATORY COMMISSION FOR MANIPUR AND MIZORAM MSPCL Tariff Order for FY 2020-21 CONTENTS 1. Introduction .......................................................................................................................... 7 1.1 JERC for Manipur and Mizoram (JERC, M&M) ........................................................................ 7 1.2 Manipur State Power Company Ltd ....................................................................................... 9 2. Summary of the ARR & Tariff Petition.................................................................................. 11 2.1 Aggregate Revenue Requirement (ARR) .............................................................................. 11 2.2 Target availability ................................................................................................................ 11 2.3 Transmission Loss ............................................................................................................... 11 2.4 Transmission ARR and transmission tariff proposal for FY 2020-21. ..................................... 12 2.5 Rebate ................................................................................................................................ 13 2.6 Late Payment Surcharges .................................................................................................... 13 2.7 Incentive: ............................................................................................................................ 13 2.8 Prayer ................................................................................................................................. 14 3. Brief outline of objections raised, response from MSPCL and Commission’s observation ..... 15 3.1 Introduction: ....................................................................................................................... 15 3.2 Public Hearing: .................................................................................................................... 15 3.3 Public Hearing Process ........................................................................................................ 15 4. MSPCL – An Overview ......................................................................................................... 17 4.1 Background ......................................................................................................................... 17 5. Provisional True up of ARR for FY 2018-19 ........................................................................... 21 5.0 Introduction ........................................................................................................................ 21 5.1 Background ......................................................................................................................... 21 5.2 Transmission Loss ............................................................................................................... 22 5.3 Operation and Maintenance Expenses ................................................................................ 22 5.4 Capital Investment Plan ...................................................................................................... 26 5.5 Depreciation ....................................................................................................................... 29 5.6 Interest and Finance Charges .............................................................................................. 31 5.7 Interest on Working Capital................................................................................................. 31 5.8 Return on Equity (with Tax) ................................................................................................. 33 5.9 Non-Tariff Income ............................................................................................................... 34 5.10 Aggregate Revenue Requirement ........................................................................................ 34 6. Annual Performance Review of FY 2019-20 ......................................................................... 37 6.1 Background ......................................................................................................................... 37 6.2 Transmission system availability .......................................................................................... 37 6.3 Transmission Losses ............................................................................................................ 37 6.4 Energy Requirement ........................................................................................................... 38 6.5 Operation and Maintenance Expenses ................................................................................ 39 6.5.1 Employee Cost .................................................................................................................... 39 6.5.2 Repair & Maintenance Expenses ......................................................................................... 40 6.5.3 Administration and General Expenses ................................................................................. 41 6.5.4 Summary of O&M expenses ................................................................................................ 42 6.6 Capital Expenditure Plan for FY 2019-20 .............................................................................. 42 6.7 Gross Fixed Assets ............................................................................................................... 52 6.7.1 Depreciation ....................................................................................................................... 53 6.8 Interest and Finance charges ............................................................................................... 55 6.9 Interest on working capital .................................................................................................. 55 6.10 Return on Equity ................................................................................................................. 57 6.11 Non-Tariff Income ............................................................................................................... 58 6.12 Aggregate Revenue Requirement ........................................................................................ 58 7. Determination of Transmission ARR for FY 2020-21............................................................. 60 7.1 Introduction ........................................................................................................................ 60 Joint Electricity Regulatory Commission i MSPCL Tariff Order for FY 2020-21 7.2 Contracted Capacity in Manipur .......................................................................................... 61 7.3 Proposed capital expenditure on ongoing and new projects during FY 2020-21 ................... 66 7.4 Operation & Maintenance Expenses ................................................................................... 75 7.4.1 Operation and Maintenance expenses comprise of the following heads:............................. 75 7.4.2 Employee Cost .................................................................................................................... 76 7.4.3 Repairs & Maintenance Expenses ........................................................................................ 78 7.4.4 Administration & General Expense ...................................................................................... 79 7.5 Summary of O&M expenses ................................................................................................ 79 7.6 Depreciation ....................................................................................................................... 80 7.7 Interest and Finance Charges .............................................................................................. 81 7.8 Interest on Working Capital................................................................................................. 81 7.9 Return of Equity .................................................................................................................. 83 7.10 Non-tariff Income ............................................................................................................... 84 7.11 Aggregate Revenue Requirement (ARR) for FY 2020-21 ....................................................... 84 7.12 Transmission Tariff .............................................................................................................. 86 7.13 Rebate ................................................................................................................................ 88 7.14 Late Payment Surcharges .................................................................................................... 88 7.15 Incentive ............................................................................................................................. 88 8. Directives ............................................................................................................................ 90 Status of 33kV system Works.......................................................................................................................................90