Order on True up for FY 2016-17, Annual Performance Review for FY 2017-18 & ARR for FY 2018-19 For Power Transmission Corporation of Uttarakhand Ltd. March 21, 2018 Uttarakhand Electricity Regulatory Commission Vidyut Niyamak Bhawan, Near I.S.B.T., P.O. Majra Dehradun – 248171 Table of Contents 1 Background and Procedural History .................................................................................................... 4 2 Stakeholders’ Objections/Suggestions, Petitioner’s Responses and Commission’s Views ...... 8 2.1 Capitalisation of New Assets ...................................................................................................................... 8 2.1.1 Stakeholder’s Comments ........................................................................................................................... 8 2.1.2 Petitioner’s Response ................................................................................................................................. 8 2.1.3 Commission’s Views .................................................................................................................................. 9 2.2 Carrying Cost of Deficit ............................................................................................................................. 10 2.2.1 Stakeholder’s Comments ......................................................................................................................... 10 2.2.2 Petitioner’s Response ............................................................................................................................... 10 2.2.3 Commission’s Views ................................................................................................................................ 10 2.3 Annual Transmission Charges .................................................................................................................. 10 2.3.1 Stakeholder’s Comments ......................................................................................................................... 10 2.3.2 Petitioner’s Response ............................................................................................................................... 11 2.3.3 Commission’s Views ................................................................................................................................ 11 2.4 True-Up ......................................................................................................................................................... 12 2.4.1 Stakeholder’s Comments ......................................................................................................................... 12 2.4.2 Petitioner’s Response ............................................................................................................................... 12 2.4.3 Commission’s Views ................................................................................................................................ 12 2.5 Miscellaneous Comments .......................................................................................................................... 13 2.5.1 Stakeholder’s Comments ......................................................................................................................... 13 2.5.2 Petitioner’s Response ............................................................................................................................... 13 2.5.3 Commission’s Views ................................................................................................................................ 14 2.6 Issues Raised During Meeting of State Advisory Committee ............................................................ 14 2.6.1 Stakeholder’s Comments ......................................................................................................................... 14 2.6.2 Petitioner’s Response ............................................................................................................................... 14 2.6.3 Commission’s Views ................................................................................................................................ 15 3 Petitioner’s Submissions, Commission’s Analysis, Scrutiny and Conclusion on Final Truing up for FY 2016-17 .................................................................................................................................... 16 3.1 Annual Performance Review ..................................................................................................................... 16 3.2 Value of opening assets and additional capitalisation ......................................................................... 16 3.2.1 REC Old Scheme (Also referred to as REC I & III Scheme) ................................................................ 20 3.2.1.1 132 kV Srinagar II-Satpuli Line ....................................................................................................... 21 3.2.1.2 132 kV S/s Simli................................................................................................................................ 21 3.2.1.3 132 kV Srinagar-Simli Line .............................................................................................................. 22 3.2.2 REC New Scheme (Also referred to as REC II Scheme) ...................................................................... 29 3.2.2.1 132 kV Substation Srinagar-II .......................................................................................................... 29 3.2.2.2 LILO 132 kV Rishikesh-Srinagar Line at 132 kV Substation Srinagar-II ........................................ 30 3.2.2.3 Construction of SLDC at Dehradun and Construction of 2 No. Sub LDC Kashipur and Rishikesh 30 3.2.2.4 LILO of 132 kV Almora-Pithoragarh Line for 220 kV S/s Pithoragarh (PGCIL) ............................. 31 3.2.3 REC IV Scheme ......................................................................................................................................... 32 3.2.3.1 220 kV S/s Dehradun ........................................................................................................................ 33 3.2.3.2 220 kV LILO line for Dehradun (LILO of 220 kV Khodri-Rishikesh Line) ...................................... 33 3.2.3.3 132 kV Dhalipur-Purkul LILO Line for Dehradun .......................................................................... 34 3.2.3.4 132 kV Kulhal - Mazra LILO Line at Dehradun .............................................................................. 36 3.2.3.5 132 kV S/s Haridwar Road Dehradun .............................................................................................. 37 (i) 3.2.3.6 132 kV S/s Sitarganj (SIDCUL) ....................................................................................................... 37 3.2.3.7 1 No. 132 kV Bay at 132 kV S/s Kichha ............................................................................................ 38 3.2.3.8 1 No. 220 kV Bay at 220 kV S/s Chamba .......................................................................................... 38 3.2.3.9 220 kV D/C Ghansali - Bhilangana III(Ghuttu) Line ....................................................................... 38 3.2.4 REC V Scheme ........................................................................................................................................... 39 3.2.5 REC XII ....................................................................................................................................................... 39 3.2.6 REC (System Improvement) .................................................................................................................... 42 3.2.7 PFC (System Improvement) .................................................................................................................... 43 3.2.8 Others (system strengthening through internal resources and deposit works) ............................... 43 3.3 Gross Fixed Assets including additional capitalisation ....................................................................... 44 3.4 Capital Structure .......................................................................................................................................... 44 3.5 Annual Transmission Charges .................................................................................................................. 45 3.5.1 O&M expenses .......................................................................................................................................... 46 3.5.2 Employee expenses ................................................................................................................................... 48 3.5.3 R&M expenses ........................................................................................................................................... 50 3.5.4 A&G expenses ........................................................................................................................................... 51 3.5.5 O&M expenses .......................................................................................................................................... 53 3.5.6 Interest and Finance Charges .................................................................................................................. 53 3.5.7 Income Tax ................................................................................................................................................