2 TARIFF ORDER PROVISIONA L TRUE -UP F OR FY 2019-20 REVIEW FOR FY 2020-21 AND DETERMINATION OF AGGREGATE REVENUE REQUIREMENT & TRANSMISSION TARIFF FOR FY 2021-22 FOR MANIPUR STATE POWER COMPANY LIMITED Petition (ARR & Tariff) No. 2 of 2021 JOINT ELECTRICITY REGULATORY COMMISSION FOR MANIPUR AND MIZORAM MSPCL Tariff Order for FY 2021-22 CONTENTS ORDER ................................................................................................................................................. 1 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 for FY 2021-22 ............................................................. 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 2021-22 ........................................ 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 2019-20 .............................................................................. 21 5.0 Introduction ............................................................................................................................. 21 5.1 Background .............................................................................................................................. 21 5.2 Transmission Loss ..................................................................................................................... 22 5.3 Operation and Maintenance Expenses .................................................................................... 23 5.4 Capital Investment Plan ........................................................................................................... 27 5.5 Depreciation ............................................................................................................................. 31 5.6 Interest and Finance Charges ................................................................................................... 33 5.7 Interest on Working Capital ..................................................................................................... 34 5.8 Return on Equity (with Tax) ..................................................................................................... 35 5.9 Non-Tariff Income .................................................................................................................... 36 5.10 Aggregate Revenue Requirement ............................................................................................ 37 6. Annual Performance Review of FY2020-21 ............................................................................. 41 6.1 Background .............................................................................................................................. 41 6.2 Transmission system availability .............................................................................................. 41 6.3 Transmission Losses ................................................................................................................. 41 6.4 Energy Requirement ................................................................................................................ 42 6.5 Operation and Maintenance Expenses .................................................................................... 43 6.5.1 Employee Cost .......................................................................................................................... 43 6.5.2 Repair & Maintenance Expenses ............................................................................................. 44 6.5.3 Administration and General Expenses ..................................................................................... 45 6.5.4 Summary of O&M expenses .................................................................................................... 46 6.6 Capital Expenditure Plan for FY 2020-21 ................................................................................. 46 6.7 Gross Fixed Assets .................................................................................................................... 55 6.7.1 Depreciation ............................................................................................................................. 57 6.8 Interest and Finance charges ................................................................................................... 58 6.9 Interest on working capital ...................................................................................................... 59 6.10 Return on Equity ...................................................................................................................... 60 6.11 Non-Tariff Income .................................................................................................................... 61 6.12 Aggregate Revenue Requirement ............................................................................................ 61 JOINT ELECTRICTY REGULATORY COMMISSION (M&M) i MSPCL Tariff Order for FY 2021-22 7. Determination of Transmission ARR for FY 2021-22................................................................ 63 7.1 Introduction ............................................................................................................................. 63 7.2 Contracted Capacity in Manipur .............................................................................................. 64 7.3 Proposed capital expenditure on ongoing and new projects during FY 2021-22 .................... 66 7.4 Operation & Maintenance Expenses ....................................................................................... 76 7.4.1 Operation and Maintenance expenses comprise of the following heads: .............................. 76 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 .................................................................................................... 80 7.6 Depreciation ............................................................................................................................. 80 7.7 Interest and Finance Charges ................................................................................................... 81 7.8 Interest on Working Capital ..................................................................................................... 82 7.9 Return of Equity ....................................................................................................................... 83 7.10 Non-tariff Income ..................................................................................................................... 84 7.11 Aggregate Revenue Requirement (ARR) for FY 2021-22 ......................................................... 85 7.12 Transmission Tariff ................................................................................................................... 86 7.13 Rebate ...................................................................................................................................... 89 7.14 Late Payment Surcharges ........................................................................................................