Wheeling Tariffs FY2009-10 to FY2013-14 and Retail Supply Tariffs FY2009-10 Order 20th March 2009 Andhra Pradesh Electricity Regulatory Commission Singareni Bhavan, Red Hills, Lakdi-Ka-Pool, Hyderabad – 500 004 ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION Singareni Bhavan, Red Hills, Lakdi-ka-pool, Hyderabad – 04 TARIFF ORDER Wheeling Tariffs FY2009-10 FY2010-11 FY2011-12 FY2012-13 FY2013-14 Retail Supply Tariffs FY 2009-10 In the Supply Areas of CENTRAL POWER DISTRIBUTION COMPANY OF A P LTD EASTERN POWER DISTRIBUTION COMPANY OF A P LTD NORTHERN POWER DISTRIBUTION COMPANY OF A P LTD SOUTHERN POWER DISTRIBUTION COMPANY OF A P LTD th 20 March 2009 CONTENTS CHAPTER Page CHAPTER-I:INTRODUCTION 2 CHAPTER-II:SUMMARY OF TARIFF FILINGS 6 PART A: WHEELING TARIFFS 6 PART-B: RETAIL SUPPLY TARIFF 18 CHAPTER-III:ISSUES RAISED/SUGGESTIONS RECEIVED AND DISCOM RESPONSES 27 PART-A: ISSUES RELATED TO ALL DISCOMS 27 PART-B: ISSUES RELATED TO CPDCL 46 PART-C: ISSUES RELATED TO EPDCL 50 PART-D: ISSUES RELATED TO NPDCL 56 PART-E: ISSUES RELATED TO SPDCL 58 CHAPTER-IV:STATEMENT OF GOVERNMENT OF ANDHRA PRADESH 64 CHAPTER-V: ISSUES RELATED TO WHEELING TARIFF DETERMINATION 66 CHAPTER-VI: WHEELING TARIFF DETERMINATION:CENTRAL POWER 73 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (CPDCL) PART-A: REVENUE REQUIREMENT 73 PART-B: DISTRIBUTION LOSSES 77 PART-C: TARIFF FOR THE CONTROL PERIOD 78 CHAPTER-VII:WHEELING TARIFF DETERMINATION:EASTERN POWER 80 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (EPDCL) PART-A: REVENUE REQUIREMENT 80 PART-B: DISTRIBUTION LOSSES 84 PART-C:TARIFF FOR THE CONTROL PERIOD 85 CHAPTER-VIII WHEELING TARIFF DETERMINATION:NORTHERN POWER 87 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (NPDCL) PART-A: REVENUE REQUIREMENT 87 PART-B: DISTRIBUTION LOSSES 91 PART-C:TARIFF FOR THE CONTROL PERIOD 92 CHAPTER-IX WHEELING TARIFF DETERMINATION:SOUTHERN POWER 94 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (SPDCL) PART-A: REVENUE REQUIREMENT 94 PART-B: DISTRIBUTION LOSSES 98 PART-C:TARIFF FOR THE CONTROL PERIOD 99 CHAPTER-X ISSUES RELATED TO:RETAIL SUPPLY TARIFF DETERMINATION 101 PART-A: SALES AND POWER PURCHSE REQUIREMENT 101 PART-B: POWER PURCHSE COST 103 PART-C:TARIFF CHANGES 107 PART-D:OTHER ARR AND REVENUE ITEMS 111 CHAPTER-XI: RETAIL SUPPLY TARIFF DETERMINATION:CENTRAL POWER 112 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (CPDCL) PART-A:REVENUE REQUIREMENT 112 PART-B:REVENUE AND REVENUE GAP 114 PART-C:RETAIL SUPPLY TARIFF FOR FY2009-10 116 CHAPTER-XII: RETAIL SUPPLY TARIFF DETERMINATION:EASTERN POWER 126 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (EPDCL) PART-A:REVENUE REQUIREMENT 126 PART-B:REVENUE AND REVENUE GAP 128 PART-C:RETAIL SUPPLY TARIFF FOR FY2009-10 130 CHAPTER-XIII: RETAIL SUPPLY TARIFF DETERMINATION:NORTHERN POWER 140 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (NPDCL) PART-A:REVENUE REQUIREMENT 140 CONTENTS CHAPTER Page PART-B:REVENUE AND REVENUE GAP 142 PART-C:RETAIL SUPPLY TARIFF FOR FY2009-10 144 CHAPTER-XIV: RETAIL SUPPLY TARIFF DETERMINATION:SOUTHERN POWER 154 DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD (SPDCL) PART-A:REVENUE REQUIREMENT 154 PART-B:REVENUE AND REVENUE GAP 156 PART-C:RETAIL SUPPLY TARIFF FOR FY2009-10 158 CHAPTER-XV:GENERAL ISSUES RELATED TO FILINGS 168 PART-A:TARIFF RELATED ISSUES 168 PART-B:SALES RELATED ISSUES 172 PART-C:ISSUES RELATED TO CONSUMER SERVICE 173 PART-D:ISSUES RELATED TO LICENSEE FINANCES 174 PART-E:ISSUES RELATED TO DISTRIBUTION OF ELECTRICITY 176 PART-F:OTHER GENERAL ISSUES 177 CHAPTER XVI:WHEELING AND RETAIL SUPPLY TARIFFS 179 A:WHEELING TARIFF SCHEDULE 179 B:RETAIL SUPPLY TARIFF SCHEDULE 179 ANNEXURES ANNEXURE Page ANNEXURE-A:LIST OF DIRECTIVES 180 ANNEXURE-B:LIST OF OBJECTORS 184 ANNEXURE-C:WHEELING TARIFF SCHEDULE 2009-10 to 2013-14 203 ANNEXURE-D:SCHEDULE OF RETAIL TARIFF RATES AND TERMS AND CONDITIONS 208 IN RESPECT OF THE FOUR DISTRIBUTION COMPANIES FOR FY2009-10 ANNEXURE-E(i):STATION-WISE AND MONTH-WISE AVAILABILITY OF ENERGY 233 ANNEXURE-E(ii):STATION-WISE AND MONTH-WISE AVAILABILITY OF ENERGY 239 ANNEXURE-E(iii):STATION-WISE AND MONTH-WISE DESPATCH OF ENERGY 244 ANNEXURE-F:POWER PURCHASE (IN MU) WITH SALES AND LOSSES 247 ANNEXURE-G:APGENCO'S STATION-WISE FIXED CHARGES FOR FY 2009-10 AS 248 APPROVED BY APERC ANNEXURE-G(i):CPDCL: POWER PURCHASE COSTS FOR FY 2009-10 249 ANNEXURE-G(ii):EPDCL: POWER PURCHASE COSTS FOR FY 2009-10 250 ANNEXURE-G(iii):NPDCL: POWER PURCHASE COSTS FOR FY 2009-10 251 ANNEXURE-G(iv):SPDCL: POWER PURCHASE COSTS FOR FY 2009-10 252 ANNEXURE-G(v):SUMMARY OF VARIABLE COST FOR FSA CALCULATIONS 253 ANNEXURE-H(i):CATEGORY-WISE AND MONTHLY SALES FOR FY 2009-10 254 ANNEXURE-H(ii):CPDCL:CATEGORY-WISE AND MONTHLY SALES FOR FY 2009-10 256 ANNEXURE-H(iii):EPDCL; CATEGORY-WISE AND MONTHLY SALES FOR FY 2009-10 258 ANNEXURE-H(IV):NPDCL; CATEGORY-WISE AND MONTHLY SALES FOR FY 2009-10 260 ANNEXURE-H(v):SPDCL; CATEGORY-WISE AND MONTHLY SALES FOR FY 2009-10 262 ANNEXURE-I:CPDC: COST OF SERVICE MODEL 264 ANNEXURE-J:EPDC: COST OF SERVICE MODEL 269 ANNEXURE-K:NPDC:COST OF SERVICE MODEL 274 ANNEXURE-L:SPDCL:COST OF SERVICE MODEL 279 Table Page No. Table 1 Programme of Public Hearings on ARRs/Tariff Filings 4 Table 2: Number of Objections/Suggestions Received on ARR / Tariff Filings 4 Table 3: CPDCL Filings: Gross ARR for Distribution Business 7 Table 4: CPDCL Filings: Net ARR for Distribution Business 7 Table 5: CPDCL Filings: Proposed Investments 8 Table 6: CPDCL Filings: Wheeling Tariff for the Control Period 8 Table 7: CPDCL Filings: Distribution Loss Trajectory for the Control Period 9 Table 8: EPDCL Filings: Gross ARR for Distribution Business 9 Table 9: EPDCL Filings: Net ARR for Distribution Business 10 Table 10: EPDCL Filings: Proposed Investments 10 Table 11: EPDCL Filings:Wheeling Tariff for the Control Period 11 Table 12: EPDCL Filings: Distribution Loss Trajectory for the Control Period 11 Table 13:NPDCL Filings: Gross ARR for Distribution Business 12 Table 14: NPDCL Filings:Net ARR for Distribution Business 13 Table 15:NPDCL Filings: Proposed Investments 13 Table 16: NPDCL Filings: Wheeling Tariff for the Control Period 14 Table 17: NPDCL Filings: Distribution Loss Trajectory for the Control Period 14 Table 18: SPDCL Filings: Gross ARR for Distribution Business 15 Table 19: SPDCL Filings: Net ARR for Distribution Business 16 Table 20: SPDCL Filings: Proposed Investments 16 Table 21: SPDCL Filings: Wheeling Tariff for the Control Period 17 Table 22: SPDCL Filings: Distribution Loss Trajectory for the Control Period 17 Table 23: CPDCL Filings: Gross ARR for Retail Supply Business, 2009-10 19 Table 24: CPDCL Filings: Revenue Gap for FY2009-10 20 Table 25: EPDCL Filings: Gross ARR for Retail Supply Business, 2009-10 21 Table 26: EPDCL Filings: Revenue Gap for FY2009-10 22 Table 27: NPDCL Filings: Gross ARR for Retail Supply Business, 2009-10 23 Table 28: NPDCL Filings: Revenue Gap for FY2009-10 24 Table 29: SPDCL Filings: Gross ARR for Retail Supply Business, 2009-10 25 Table 30: SPDCL Filings: Revenue Gap for FY2009-10 26 Table 31: Capital Structure filed by Licensees 67 Table 32: Cost of Debt and Return on Equity as filed by Licensees 68 Table 33: Cost of Capital(WACC) filed by Licensees 68 Table 34: Loss Reduction Trajectory proposed by Licensees 69 Table 35: Loss Reduction Trajectory Approved for the Control Period 70 Table 36: CPDCL: Approved Investments during the Control Period 73 Table 37: CPDCL: Regulated Rate Base and Return on Capital Employed 75 Table 38: CPDCL: Asset Base and Depreciation for the Control Period 75 Table 39: CPDCL: O&M Expenses for the Control Period 76 Table 40:CPDCL: Net ARR for the Control Period 77 Table 41: CPDCL: Distribution Loss Reduction Trajectory 78 Table 42:CPDCL: Wheeling Tariff for the Control Period, FY2009-10 TO 2013-1 78 Table 43: EPDCL: Approved Investments during the Control Period 80 Table 44: EPDCL: Regulated Rate Base and Return on Capital Employed 82 Table 45: EPDCL: Asset Base and Depreciation for the Control Period 82 Table 46: EPDCL: O&M Expenses for the Control Period 83 Table 47:EPDCL: Net ARR for the Control Period 84 Table 48: EPDCL: Distribution Loss Reduction Trajectory 85 Table 49:EPDCL: Wheeling Tariff for the Control Period, FY2009-10 TO 2013-1 85 Table 50: NPDCL: Approved Investments During the Control Period 87 Table 51: NPDCL: Regulated Rate Base and Return on Capital Employed 89 Table 52: NPDCL: Asset Base and Depreciation for the Control Period 89 Table 53: NPDCL: O&M Expenses for the Control Period 90 Table 54:NPDCL: Net ARR for the Control Period 91 Table 55: NPDCL: Distribution Loss Reduction Trajectory 92 Table 56:NPDCL: Wheeling Tariff for the Control Period, FY2009-10 TO 2013-1 92 Table 57: SPDCL: Approved Investments during the Control Period 94 Table 58: SPDCL: Regulated Rate Base and Return on Capital Employed 96 Table 59: SPDCL: Asset Base and Depreciation for the Control Period 96 Table 60: SPDCL: O&M Expenses for the Control Period 97 Table 61:SPDCL: Net ARR for the Control Period 98 Table 62: SPDCL: Distribution Loss Reduction Trajectory 99 Table 63:SPDCL: Wheeling Tariff for the Control Period, FY2009-10 TO 2013-1 99 Table 64: LT Agricultural Sales 102 Table 65: HT Agricultural Sales 102 Table 66: Sales and Power Purchase Requirement for FY2009-10. 103 Table 67:Availability by Source for FY 2009-10 103 Table 68: Filings: Power Purchase Costs for FY 2009-10- Total 104 Table 69:APERC: Power Purchase Cost for FY 2009-10 - Total 105 Table 70: Cost Adjustment for D-D Energy Transfer for FY2009-10 105 Table 71: Non-Conventional Energy (NCE) sources: Details for FY2009-10 106 Table 72: Power Purchase