ASSAM ELECTRICITY REGULATORY COMMISSION (AERC) Assam Power Generation Corporation Limited (APGCL) TARIFF ORDER FY 2012-13 Petition No. 12/2012 ASSAM ELECTRICITY REGULATORY COMMISSION A.S.E.B. Campus, Dwarandhar, G. S. Road, Sixth Mile, Guwahati - 781 022 Website: www.aerc.gov.in Email: [email protected] i Contents ORDER ............................................................................................... viii 1. Introduction ...................................................................................... 1 1.1 CONSTITUTION OF THE COMMISSION .................................................................. 1 1.2 TARIFF RELATED FUNCTIONS OF THE COMMISSION ........................................ 1 1.3 BACKGROUND AND BRIEF HISTORY ..................................................................... 2 1.3.1 Assam Power Generation Corporation Limited ....................................... 2 1.3.2 Commission’s orders for the first control period ........................................ 3 1.4 SUMMARY OF THE PETITION ................................................................................. 3 1.4.2 Salient features of tariff petition for FY 2012-13 are given in Table1.2 ..... 4 1.5 ADMISSION OF PETITION ........................................................................................ 4 1.6 PUBLIC HEARING PROCESS ................................................................................... 5 1.7 STATE ADVISORY COMMITTEE MEETING ......................................................... 6 1.8 APPROACH OF THIS ORDER ........................................................................... 6 1.8.1 Truing up ................................................................................................... 6 1.8.2 Performance Review for FY 2011-12 ........................................................ 6 1.8.3 Revised ARR and determination of tariff for FY 2012-13 .......................... 6 2. Truing up for FY 2009-10 and FY 2010-11 ....................................... 7 2.1 METHODOLOGY FOR TRUING UP .......................................................................... 7 2.2 BACKGROUND ........................................................................................................... 8 2.3 TRUING UP FOR THE YEAR FY 2009-10 ................................................................ 8 2.3.1 Capacities of Generating Stations ............................................................ 8 2.3.2 Plant Availability Factor (PAF) .................................................................. 8 2.3.3 Plant Load Factor ..................................................................................... 9 2.3.4 Auxiliary Consumption .............................................................................. 9 2.3.5 Gross and Net Generation ...................................................................... 10 2.3.6 Gross Station Heat Rate ....................................................................................... 11 2.3.7 Fuel Cost ................................................................................................ 13 2.3.8 Incentive for Generation in Excess of Target Plant Load Factor ............. 14 2.3.9 Employee Cost ....................................................................................... 15 2.3.10 Repairs and Maintenance (R&M) Expenses ........................................... 15 2.3.11 Administration and General (A&G) Expenses ......................................... 16 2.3.12 Depreciation Charges ........................................................................... 16 2.3.13 Interest and Finance charges / Interest on Working Capital ................... 17 2.3.14 Prior Period Expenses and Other Debits ................................................ 18 2.3.15 Return on Equity .................................................................................... 19 2.3.16 Provision for Tax ................................................................................... 19 2.3.17 Other Income .......................................................................................... 19 2.3.18 Revenue from Sale of Power ................................................................ 19 2.3.19 Truing up of ARR for 2009-10 ............................................................... 19 2.4 TRUING UP FOR THE YEAR 2010-11 .................................................................... 20 2.4.1 Plant Availability ...................................................................................... 20 2.4.2 Plant Load Factor ................................................................................... 21 2.4.3 Auxiliary consumption ............................................................................. 21 2.4.4 Gross and Net Generation ...................................................................... 22 2.4.5 Gross Station Heat Rate ......................................................................... 23 2.4.6 Fuel Costs ............................................................................................... 24 ii 2.4.7 Incentive for Generation in Excess of Target Plant Load Factor ............. 25 2.4.8 Employee Cost ....................................................................................... 26 2.4.9 Repairs and Maintenance (R&M) Expenses ........................................... 26 2.4.10 Administration and General (A&G) Expenses ......................................... 26 2.4.11 Depreciation Charges ............................................................................. 26 2.4.12 Interest and Finance charges / Interest on Working Capital ................... 28 2.4.13 Prior Period Expenses and Other Debits ................................................ 29 2.4.14 Return on Equity ..................................................................................... 29 2.4.15 Provision for Tax ..................................................................................... 29 2.4.16 Other Income .......................................................................................... 29 2.4.17 Revenue from Sale of Power .................................................................. 30 2.4.18 Truing up of ARR for 2010-11 ................................................................. 30 3. Review of Tariff Order for FY 2011-12 ........................................... 32 3.1.1 Plant Availability Factor (PAF) ................................................................ 32 3.1.2 Plant Load Factor (PLF) .......................................................................... 32 3.1.3 Auxiliary consumption ............................................................................. 33 3.1.4 Gross and Net generation ....................................................................... 33 3.1.5 Gross Station Heat Rate ......................................................................... 34 3.1.6 Fuel Costs ............................................................................................... 35 3.2.1 Employee Cost ....................................................................................... 36 3.2.2 Repairs and Maintenance (R&M) Expenses ........................................... 37 3.2.3 Administration and General (A&G) Expenses ......................................... 37 3.2.4 Depreciation Charges ............................................................................. 37 3.2.5 Interest and Finance Charges ................................................................. 38 3.2.6 Interest on Working Capital ..................................................................... 39 3.2.7 Provision for Tax ..................................................................................... 39 3.2.8 Return on Equity ..................................................................................... 39 3.2.9 Other Debits and prior period expenses ................................................. 40 3.2.10 Other Income .......................................................................................... 40 3.2.11 Revenue from sale of power ................................................................... 40 3.2.12 Review of ARR for the year 2011-12 ...................................................... 40 4. Determination of revised ARR and Generation Charges for FY 2012-13 ................................................................................................ 42 4.1 INTRODUCTION ....................................................................................................... 42 4.2 BRIEF STATUS OF APGCL POWER STATIONS ................................................... 42 4.3 PLANT AVAILABILITY FACTOR (PAF) ................................................................... 43 4.4 PLANT LOAD FACTOR (PLF) .................................................................................. 44 4.5 AUXILIARY CONSUMPTION ................................................................................... 45 4.6 GROSS AND NET GENERATION ........................................................................... 46 4.7 GROSS STATION HEAT RATE ............................................................................... 47 4.8 WEIGHTED AVERAGE GCV AND PRICE OF GAS................................................ 47 4.9 APPROVED FUEL COST ......................................................................................... 48 4.10 ANNUAL CAPACITY CHARGES ............................................................................