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SOUTHERN POWER DISTRIBUTION COMPANY OF A.P

LIMITED

19-13-65/A, VidyutNilayam, Srinivasapuram, Tirupati

Aggregate Revenue Requirement and Retail supply business for the FY 2016-17

31st December 2015

Table of ContentsPage 0

1 Introduction 21.1 Filings based on Multi-Year Tariff (MYT) Principles 21.2 Filing Contents 22 Analysis of expected performance for Current Year 2015-16 for Retail Supply

Business 42.1 Introduction 42.2 Operating Performance 42.3 Financial Performance 63 Power Purchase for Current Year H2 FY 15-16 and Ensuing Year FY 16-17 83.1 Basis of estimation of quantity and cost of Power Purchase 83.2 PP allocation: 83.3 Installed Capacity of Major Generating Stations 93.4 Basis of estimation of power availability for H2 FY 2015-16 and FY 2016-17 183.5 Power Purchase Cost 293.6 Energy Requirement 503.7 Summary of Power Purchase for Current Year H2 FY 15-16 and Ensuing year FY 16-17

504 Losses 524.1 DISCOM losses 524.2 TRANSCO losses 534.3 Losses external to APTRANSCO system 534.4 APTransco Charges 534.5 PGCIL and ULDC Charges 544.6 SLDC Charges 544.7 Distribution Costs (Rs. in Crores) 564.8 Interest on Consumer Security Deposits 564.9 Supply Margin 574.10 Other Costs 574.11 Summary of ARR 585 Revenue Projections 595.1 Sales Forecast 595.2 Revenue from Current Tariffs 845.3 Detailed category wise Revenue computation 866 Performance Parameters 977 Retail Supply Business True-up for FY 2014-15 & FY 2015-16 1077.1 Filing for True-up by the Distribution Licensee 1077.2 True-up of Aggregate Revenue Requirements components & Gap

from Retail Business for FY 2014-15 & FY 2015-16 1107.3 Prayer 111

COS 112RSF 129

Introduction

Page 1

1.1 Filings based on Multi-Year Tariff (MYT) Principles

The Andhra Pradesh Electricity Regulatory Commission framed the “Terms and

Conditions for determination of Tariff for Wheeling and retail supply of electricity”

Regulation 4 of 2005 (“Regulation”), lays down the principles for determination of

Aggregate Revenue Requirement (ARR) for (a) Distribution Business and (b) Retail Supply

Business of the licensees. The ARR so determined for each of the businesses will form the

basis for fixation of charges for wheeling and for retail sale of electricity.

In the Regulation, the Commission has also laid down the procedures for filing under

multi-year tariff principles. The multi-year period is defined as the Control Period and the

first Control Period is defined as the three year period starting from financial year 2006-07

and continuing till the end of financial year 2008-09. The second control period was defined

as the five year period starting from FY 2009-10 to 2013-14. The current filing pertains to

the third Control Period (FY 2014-15 to FY 2018-19). The Commission has specified in Para

6.2 of the Regulation the following procedure for ARR filing for the distribution and retail

supply business:

“The ARR filing for the Distribution business shall be for the entire Control Period.

For the Retail Supply business the ARR filing will be on annual basis …...”.

The current filing follows the principles laid down under this Regulation for

determination of the ARR for the retail supply business for the year 2016-17, which is the

Third year of the Third Control Period.

1.2 Filing Contents

The filing is structured in the following way:

Section 2 provides analysis of expected performance for FY 2015-16 for Retail supply

Business comprising:

- Operating Performance- Financial PerformanceA brief analysis of the financial and operational performance of the licensee during FY

2014-15 and FY 2015-16 (with projections for second half of FY) are given. Page 2

Expenditure Projections

o Power Purchase Cost Power Purchase and Procurement Cost

o Transmission Chargeso PGCIL & ULDC Chargeso SLDC Chargeso Distribution Costo Interest on Consumer Security Depositso Supply Margino Other Costso Aggregate Revenue Requirement for Retail Supply Business

Revenue Projections

o Sales Forecasto Revenue from Current Tariffso Non-tariff Income at Current Chargeso Revenue at Current Tariffs and Charges

Revenue Gap

o Revenue Deficit / Surplus at Current Tariff and Chargeso Proposals to handle the Deficit / Surplus

The sales forecast has been used to determine the revenue from tariff for retail sale of electricity for the third year of the third control period and the energy input required for meeting the demand. The power procurement plan is based on the availability of the generation sources during FY 2016-17, cost of procurement (fixed, variable and others) and the merit order dispatch of various sources to meet the demand expected during various months.

Due to reorganization of the State of Andhra Pradesh, two districts i.e., Anantapur & Kurnool districts were merged into APSPDCL w.e.f 02-06-2014. In this context, for FY 2013-14 and FY 2014-15 (during Apr & May,2014) all the figures / data considered are actuals and pertains to six districts of APSPDCL (viz., Krishna, Guntur, Prakasam, SPSR Nellore, Chittoor & Kadapa). And from June, 2014 to September, 2015 all the figures considered are actuals and pertains to entire eight districts of APSPDCL including newly added Anantapur & Kurnool districts. From October, 2015 onwards the estimated / projected figures are considered for entire 8 districts of the licensee.

Page 3

2 Analysis of expected performance for Current Year 2015-16 for Retail Supply Business

2.1 Introduction

This chapter analyses the performance of the licensee during the Current Year as compared to the previous year. Only the key operating and financial parameters have been considered for this analysis.

2.2 Operating Performance

Energy Balance

Particulars

2014-15 2015-16

Actuals APERC Order Present Estimate

MU % MU % MU %Metered Sales 18354.75 62.43% 22856.34 67.55% 21091.83 64.87%LT Agricultural Sales 8006.78 27.24% 8020.16 23.70% 8392.70 25.81%Total Sales 26361.53 89.67% 30876.50 91.25% 29484.53 90.69%

EHT Sales 3490.59 4725.92 3783.85

Discom Input (excl EHT sales) 25907.65 88.13% 29112.76 86.03% 28727.68 88.36%

Distribution losses (exl EHT sales) 11.72% 10.17% 10.54%

Discom Input (excl EHT losses) 29398.24 100.00% 33838.68 100.00% 32511.53 100.00%

Loss Including EHT Sales %

10.33%

8.75%

9.31%

Distribution Loss:

Page 4

YearActual No. of 11 KV

T&MHQ feeders for which energy

audit done

11 KV 2 MVAR capacitor banks

added to the system

Additional 33/11 KV sub-

stations charged

Excl. EHT

Incl. EHT

2009-10 14.03 12.98 823 902010-11 13.37 12.21 853 122 132011-12 12.53 11.29 866 136 672012-13 11.87 10.71 966 193 1282013-14 11.84 10.68 1024 35 2082014-15 11.72 10.33 1348 75 752015-16 (H1) 11.58 9.10 1377 7 7

As seen from the above table, the actual losses for the FY 2014-15 are 10.33% and reduced

compared to previous year loss of 10.68%. However it is expected to reduce the losses

further with the implementation of the following measures.

Strict implementation of Restriction and Control measures to ensure the assured

number of hours of supply to agricultural sector.

Reduction of both technical and commercial losses by vigorously conducting 11 KV

feeder wise energy audits around 1377 Nos. feeders in the company.

Erection of additional substations, DTRs, 11KV capacitor banks and bifurcation of

feeders, etc.,

HVDS for agricultural sector

Utilisation of latest technology in metering, billing etc.,

During the year 2011-12, only 866 Nos. 11 KV Town & MHQ feeders were considered for

energy audit where as during the year 2014-15, 1348 Nos. feeders are available in E-AUDIT

for which energy audit is done on regular basis at corporate office level.

75 Nos. additional 11 KV 2 MVAR capacitor banks proposed during the year 2014-15 and

completed.

For the year 2014-15, 75 Nos. additional 33/11 KV sub-stations were charged and for the

year 2015-16, 70 Nos. additional 33/11 KV sub-stations are proposed out of this 7 Nos. were

already charged to reduce over loaded 33 KV & 11 KV lines and to maintain good voltage

profiles at the consumers end.

Metered Sales

As can be seen from the table above, in 2014-15, the percentage of metered sales is 62.43 %

as aginst 62.00% during 2013-14.

Page 5

The total load curtailment (due to Load relief) during FY 2014-15 is 716.26 MU. In 2015-16,

the metered sales are expected to increase by 2737.08 MU over 2014-15 levels, which is

2.44% increase.

Agricultural Sales

In the previous year 2014-15 the actual Agriculture Consumption is 8006.78 MU. In the

current year 2015-16 during the first half of the year, the agriculture consumption is

3713 MU and projection for the entire year is 8393 MU, which is 373 MU excess over the

approved agricultural sales (2.11%). The increase in the sales is mainly due to increase in

the no.of consumers.

2.3 Financial Performance

The following table provides an overview of APSPDCL’s financial performance for the

current year and compares it with the APERC orders:

Particulars 2015-16APERC Present Estimate

Total Expenditure (A)Transmission Cost 654.10 836.12

SLDC Cost 21.05 26.91

Distribution Cost 2153.24 2,153.24

PGCIL Expenses 211.10 211.10

ULDC Expenses 9.71 9.71

Power purchase 12672.00 13,468.64Interest on CSD 147.09 142.12Other Costs, if any 565.53 38.12Add: Supply Margin (B) 13.13 13.13

Total Revenue Requirement (C=A+B) 16446.95 16,899.09Total Revenue Earned 14128.50 12,193.48Tariff Income

14128.5012,117.14

Non-tariff Income 76.34Revenue from Trading 0.00 0.00Surplus/ (Gap) 2318.45 -4,705.61Subsidy 2318.45 2,318.45Net Regulatory Gap 0.00 -2,387.16

Page 6

Revenues from sale of electricity:

The net revenue (excl. NTI) for FY 2015-16 is expected to be Rs 12117.14 Crores.

For the key categories, the licensee has estimated the revenue as below:

Category2014-15 2015-16

Actuals APERC Target

Present estimate

HT Industrial 4440.79 7404.24 5184.09Non-Industrial 478.74 654.69 587.69Aviation 14.42 73.78 17.71Irrigation &Agr. 280.40 203.16 294.62Railway Traction 475.68 558.25 513.60Colony Lightning 20.07 28.43 24.32RESCO's 9.67 9.33 7.25Temporary 0.00 15.00 0.00HT Total 5719.77 8946.88 6629.27

LT Domestic 2103.90 2393.41 2537.19Non-Domestic 1183.26 1340.12 1465.43Industrial 835.79 971.83 1043.78Cottage Industries 12.51 13.75 15.54Agricultural 67.56 99.13 59.10Local Bodies 257.97 303.70 289.88General Purpose 52.05 58.65 61.45Temporary 14.69 1.03 15.50LT Total 4527.73 5181.62 5487.86Grand Total (LT+HT) 10247.49 14128.50 12117.14

The actual revenue during FY 2014-15 is Rs. 10247.49 crores excluding non-tariff income.

The NTI during FY 2014-15 is Rs. 73.49 crores. During FY 2015-16, the estimated revenue

from sale of power (exclusive of Non-tariff income) is Rs. 12117.14 crores. The expected

NTI during FY 2015-16 is Rs. 76.34 crores. The estimated revenue from sale of power

(inclusive of Non-tariff income) is Rs. 12193.48 crores.

Page 7

3 Power Purchase for Current Year H2 FY 15-16 and Ensuing Year FY 16-173.1 Basis of estimation of quantity and cost of Power Purchase

This section discusses the methodology and assumptions considered for estimating the

quantum and corresponding cost of power purchase of the Licensee for the second half of the

Financial Year ending March 31, 2016 and for the Financial Year ending March 31, 2017.

As per section 92 read with the Twelfth Schedule of the Andhra Pradesh

Reorganization Act, 2014 for bifurcation of united Andhra Pradesh (Central Act No. 6 of

2014, dated 01.03.2014), the districts of Anantapur and Kurnool which was within the

jurisdiction of the erstwhile Andhra Pradesh Central Power Distribution Company Ltd.

(APCPDCL, now Southern Power Distribution Company of Telangana Limited (TSSPDCL))

was reassigned to the Andhra Pradesh Southern Power Distribution Company Ltd.

(APSPDCL). The proportionate share of power was transferred from the allocated share of

the erstwhile APCPDCL to APSPDCL.

Before the bifurcation of united Andhra Pradesh, with the implementation of Multi-

Buyer Model (MBM) in the state from June 9, 2005, each of the four Discoms of united

Andhra Pradesh had been allocated a certain share of the generating stations contracted by

APTRANSCO. According to G.O.Ms. No.20 (dated 08.05.2014), based on the last 5 years’

average consumption of Anantapur and Kurnool districts, 17.45% of power earlier allocated

to the erstwhile APCPDCL has to be transferred to APSPDCL. Power allocation percentages

for Andhra Pradesh Discoms and Telangana Discoms have been modified accordingly.

Andhra Pradesh has been allocated a percentage of 46.11% of the erstwhile Andhra Pradesh

share. The revised power allocation percentages for the two Discoms of Andhra Pradesh

(APEPDCL and APSPDCL) are mentioned below.

3.2 PP allocation: Energy availability for upcoming GENCO (APGENCO and TSGENCO) stations - KTPP

Stage II, DSTPP Stages I & II has been considered as per geographical location.

Power from GENCO (APGENCO and TSGENCO) hydel stations have been allocated

based on their geographical location.

Non-conventional Energy sources have been allocated to the DISCOMs based on their

geographical presence/location.

Page 8

The two mini-power plants LVS and Srivathsa have been allocated to APEPDCL.

Entire energy available from Hinduja thermal power plant has been allocated to Andhra

Pradesh.

Allocation percentage for existing APGENCO thermal stations, CGS stations and Gas

IPPs is 46.11% of united AP share (based on the last 5 years’ average consumption of

Anantapur and Kurnool districts).

The allocation percentages (as on 02.06.2014 as per G.O. Ms. No. 20) for the two

Discoms of Andhra Pradesh (among all the 4 Discoms of erstwhile Andhra Pradesh) for

GENCO thermal stations and all the other sources(Excluding Bilateral Purchases) has

been doneas follows:

S. No. Name of the Distribution Company Allocation Percentage

1 APEPDCL 15.80 %

2 APSPDCL 30.31 %

The energy deficit in each Discom if any is then met through procurement through

bilateral sources

Month-wise surplus has been estimated based on the availability and requirement. A part

of this surplus is assumed to be sold through bilateral contracts and a part through open

market.

In the following paragraphs, the capacities and availabilities of all the generating sources

have been described. The actual energy availability in MU for each Discom has been

projected based on the above allocation principles.

3.3 Installed Capacity of Major Generating Stations

3.3.1 GENCO (ANDHRA PRADESH GENCO & TELENGANA STATE GENCO)

The table below shows the projected capacities of the Thermal and Hydel generating stations

of GENCO including the share in the interstate projects.

Page 9

3.3.1.1 APGENCO

Energy allocation for existing APGENCO thermal stations has been considered as 46.11% of

united Andhra Pradesh share as per G.O. Ms. No. 20.while 100% has been considered from

Damodaram Sanjeevaiah TPP I & II. For APGENCO Hydel stations allocation is as per

geographical location (100%). Allocation for interstate hydel projects have been taken as per

G.O.Ms. No. 20.

Source Projected erstwhile AP share

(MW)

Projected AP share (MW)

THERMALDr. NTTPS ( I, II, III) 1,260 581Dr. NTTPS – IV 500 231

RTPP-I 420 194RTPP-II 420 194RTPP- III 210 97Damodaram Sanjeevaiah TPP I 800 800Damodaram Sanjeevaiah TPP II 800 800TOTAL THERMAL 4,410 2,896HYDEL

Interstate projects:Machkund, Orissa (AP share 70%) 84 39T.B. Station, Karnataka (AP share

80%)

58 27State projects:Donkarayi 25 25Upper Sileru 240 240Lower Sileru 460 460Srisailam right bank PH 770 770Nagarjuna Sagar right canal PH 90 90PABM 20 20Mini hydro 1 1Nagarjuna Sagar Tail Pond 50 50TOTAL HYDEL 1,798 1,721TOTAL APGENCO 6,208 4,617

Page 10

3.3.1.2 TSGENCO

Energy allocation for existing TSGENCO stations has been considered as 46.11% of united

Andhra Pradesh share as per G.O. Ms. No. 20. No availability considered from KTPP Stage

II. For TSGENCO hydel stations allocation is as per geographical location (0%).

Source Projected erstwhile AP

share (MW)

Projected AP share

(MW)

THERMALKothagudem-(A,B,C) 720 332Kothagudem-D 500 231Kothagudem-VI 500 231

Ramagundam-B 63 29KTPP -I 500 231

TOTAL THERMAL 2,283 1,054

TOTAL TSGENCO 2,283 1,054

3.3.2 CENTRAL GENERATING STATIONS

AP Discoms have Power Purchase Agreements with Central Generating Stations to purchase

power from NTPC (SR), NTPC (SR) Stage-III, NTPC -Talcher-II, NTPC Simhadri-I &II,

Vallur (JV) Power Project, Tuticorin Thermal Power Plant (upcoming), Neyveli Lignite

Corporation Ltd (“NLC”), Madras Atomic Power Station (“MAPS”) and Kaiga Atomic

Power Station (“KAPS”). Allocation percentage for CGS stations has been considered as

46.11% of united AP share (based on the last 5 years’ average consumption of Anantapur

and Kurnool districts as per G.O.Ms. No. 20).

Page 11

Name of the Station Total

Installed

Capacity

Projected erstwhile

AP share

Projected AP share

MW MW % (of

Total

Installed

Capacity)

MW % (of Total

Installed

Capacity)

NTPC-(SR) Ramagundam I &

II2,100 679 32.32 313 14.91

NTPC-(SR) Stage –

Ramagundam- III500 170 33.92 78 15.68

NTPC-Talcher-II 2,000 400 20.01 184 9.22

NTPC Simhadri StageI 1,000 1,000 100.00 461 46.11

NTPC Simhadri StageII 1,000 460 46.01 212 21.21

NLC TS II Stage-I 630 116 18.33 53 8.49

NLC TS II Stage-II 840 204 24.33 94 11.20

NPC-MAPS 440 44 9.90 20 4.61

NPC-Kaiga 1 & 2 440 136 30.82 63 14.25

NPC-Kaiga 3 & 4 440 144 32.64 66 15.09

Vallur (JV) NTPC with

TANGEDCO1,500 221 14.75 102 6.79

NLC-TNPL Tuticorin* 1,000 255 25.46 118 11.76

NTPC-Kudgi* 2,400 419 17.5 201 8.36

TOTAL CGS 14,290 3,829 1,965

* 1000 MW (2x500 MW) Tuticorin Thermal Power Station, is a Joint Venture Company

formed between Neyveli Lignite Corporation Limited (NLC) and Tamil Nadu Electricity

Board (TNEB) with a equity ratio of 89 : 11 respectively. Minister of Power, Government of

India has allocated 254.6 MW as firm power to erstwhile Andhra Pradesh (117.40 MW for

residuary Andhra Pradesh). Accordingly, APDISCOMs have signed a Power Purchase Page 12

Agreement with NLC-Tamil Nadu Power Limited (A Joint Venture Company) on

30.11.2010. 1st Unit of 500 MW was pronounced COD on 18.6.2015 and Unit 2 on

29.8.2015.

** 2400 MW (3x800 MW) Thermal Power Project is being setting up by M/s. NTPC Ltd at

Kudgi, Karnataka. The then APDiscoms have signed a PPA with NTPC on 23.09.2010.

Power shall be allocated as per the Gadgil formula. However, the same is yet to allocate by

MoP, GoI. Tentatively, as per the Gadgil formula, the residuary A.P may get 8.36% power

i.e. 200.62 MW from the said Power Project. As informed by NTPC, the scheduled COD of

1st unit (800 MW) in September 2016 and the scheduled COD of 2nd (800 MW) in March

2017.

3.3.3 INDEPENDENT POWER PRODUCERS (IPPs)

The following IPPs are under commercial operation in the Andhra Pradesh:

a) 216.82 MW gas-based plant at Jegurupadu by GVK Industries (“GVK”); Up on the

expiry of PPA on 20.06.2015, APDISCOMs have issued Buyout notice to M/s GVK-I

and M/s GVK-I is scheduling entire power only to APDISCOMs w.e.f. 20.06.2015.

b) 208.31 MW gas-based plant at Kakinada by Spectrum Power Generation Ltd.,

c) 355 MW (ISO) gas-based plant at Vijayawada by Lanco Kondapalli Power Ltd (“Lanco

Kondapalli”); the present PPA gets expired by 01.01.2016 and the negotiations for

renewal of PPA is under progress.

d) 220 MW gas based plant at Samalkota, East Godavari District by M/s. Reliance Power

Ltd. (formerly M/s. BSES).

The Plant Load Factor (PLF) of above four IPPs has been considered at 40% for the second

half of FY 15-16 and FY16-17

Energy allocation for gas-based IPPs has been taken as 46.11% of united Andhra Pradesh

share as per G.O. Ms. No. 20. Projected erstwhile Andhra Pradesh share and residuary

Andhra Pradesh share are as mentioned below.

Page 13

Source Projected erstwhile AP share (MW)

Projected AP share (MW)

GVK 216 216Spectrum 208 96Lanco Kondapalli (Gas) 355 164Reliance BSES 220 101TOTAL GAS-BASED IPPs 999 577

GVK Extension (220 MW), GMR Vemagiri (370 MW), Gowthami (464 MW), and

Konaseema (444.08 MW) are the new IPPs which have been commissioned in XIth Five

Year Plan.

*

M/s LKPL offered 50 % of capacity under e-bid RLNG to AP during the period from

01.10.2015 to31.03.2016. It is assumed that M/s LKPL will offer 50 % of capacity under e-

bid RLNG to AP during the period from 01.04.2016 to 31.03.2017 also.

** M/s GREL offered 100 % of capacity under e-bid RLNG to AP during the period from

01.10.2015 to 31.03.2016. It is assumed that M/s GREL will offer 100 % of capacity under

e-bid RLNG to AP during the period from 01.04.2016 to 31.03.2017 also.

Page 14

Project NameInstalled Capacity

(MW)

Capacity corresponding to 50% PLF

(MW)

AP share under e-bid

RLNG scheme for FY 2015-16(H2)

AP share under e-bid

RLNG scheme for FY 2016-17

Remarks

GVK Extension

(IPP)220.00 110 50.72 50.72

46.11% as

per

G.O.Ms.No

20

GMR Vemagiri

(IPP)370.00 185 85.30 85.30 -do-

Gautami (IPP) 464.00 232 0 106.98 -do-

Konaseema (IPP) 444.08 222 102.38 102.38 -do-

LKPL (MPP)* 1108.00 554 277 277 ---

GREL (MPP)** 768.00 384 384 384 ----

The Natural gas supplies from RIL KG D-6 fields to the aforesaid IPPs became zero from

01.03.2013 onwards hence there is no generation under long term PPA. The availability is

subject to natural gas supply from M/s RIL.

Energy availability has not been considered from these IPPs in the absence of RIL D-6 gas

supplies.

3.3.4 AP Gas Power Corporation Ltd (“APGPCL”): Joint Sector

APGPCL is a joint sector gas-based power project. The allocation of power from this

project is in proportion to the equity share capital of participating industries. The total

installed capacity of the project along with the DISCOMs share is as given below:

Source Installed

Capacity

(MW)

Projected

erstwhile AP

Share (MW)

Erstwhile AP

Share (%)

Projected AP

Share (MW)

AP Share (%)

Stage I 100 16 16% 7 7%

Stage II 172 43 25% 20 12%

Total 272 59 22% 27 10%

3.3.5 Non-Conventional Energy (NCE) Sources

The installed capacities of NCE projects in Andhra Pradesh projected for FY 2015-16

2nd half and FY 2016-17 are as given below. NCE based projects have been allocated to the

AP Discoms based on their geographical presence/location (NCE projects have signed PPAs

with Discoms where they are located. Hence the entire power is allocated to that Discom.)

Page 15

Type of Project

Projected AP

Share (MW) -

FY 2015-16

Projected AP

Share (MW) -

FY 2016-17

Bio Mass Power Projects including Co-gen 143.75 141

Bagasse Cogeneration Projects. 105.20 105.20

Wind Power Projects 914.25 1414.25

Mini Hydel Power Projects 48.50 62.50

Industrial Waste Based Power Projects 21.66 21.66

Municipal Waste Based Power Projects 6.14 6.14

NCL Energy Ltd. (TB Dam) 16.5 16.5

Solar Power Projects 135 635

Solar Parks 0 250

Total 1391 2652.25

3.3.6 Mini-Power Plants

APTRANSCO had entered into a Power Purchase Agreement with LVS (36.8 MW)

on 3rd January, 2009 for purchase of power in compliance with the Orders issued by Hon’ble

Supreme Court and had entered into another Power Purchase Agreement with Srivathsa

(17.20 MW)powerplant. These projects have been allocated completely to APEPDCL.

3.3.7 HNPCL

GoAP directed the then APDiscoms as the successor entities of erstwhile APSEB to

enter into a continuation agreement to the PPA dated 15.04.1998 which was entered by

erstwhile APSEB with HNPCL. As such, a memorandum of agreement (MoA) was entered

between the then APDiscoms and HNPCL on 17.05.2013. As per the directions of GoAP and

MoA dated 17.05.2013, the preparation of amendments to the PPA dated 15.04.1998 is under

finalization and it would be signed, shortly, by two DISCOMs of residuary A.P. 1st unit (520

MW) was synchronized on 06.12.2015 and the 2nd unit (520 MW) may be synchronized in

Page 16

June 2016. As per the projections in ARR for FY 2015-16 filed by APDiscoms and the same

was approved by APERC in its Retail Tariff Order for FY 2015-16, the entire energy

available from HNPCL Thermal Power Plant has been considered for Andhra Pradesh.

3.3.8 Long Term andMedium Term Purchases

3.3.8.1 LongTerm – Thermal PowerTech Corporation India Limited

APDiscoms and Telangana Discoms have signed a Power Purchase Agreement with

M/s. Thermal PowerTech Corporation India Limited (TPCIL) for a contracted capacity of

500 MW under long term basis through Case-I bidding route for a period of 25 years.

APDiscoms have been allocated a share of 46.11% (as per G.O. Ms. No. 20) i.e. 231 MW

out of the total contracted capacity of 500 MW. Variable cost per unit of Rs.1.76/kWh and

fixed cost of Rs. 289.30 Crs have been considered for FY 2015-16. Variable Cost of

Rs.1.81/kWh and fixed cost of Rs.302.82 Crs have been considered for FY 16-17. As per the

PPA, the scheduled date of delivery for supply of 500 MW to APDiscoms and Telangana

Discoms is 01.04.2017. However, TPCIL has requested for preponement of schedule

delivery date from 01.04.2017 to 01.04.2015 since early commission of their units (2x660

MW) and the same is under consideration by AP Discoms.

3.3.8.2 Long Term – 1000MW DBFOO Bidding

AP DISCOMS are planning to procure electricity of 1000MW on long term basis

from Power Stations on BDFOO basis and the bidding process is under progress. The energy

from these sources is considered from June 2016 at an energy availability of 90% PLF.

3.3.8.3 Medium Term – KSK Mahanadi

In the recently concluded medium term bidding for 3 years i.e. up to 15th June 2016,

the AP & Telangana Discoms have signed the Power Purchase Agreement with KSK

Mahanadi for 400 MW and are availing power since 14.08.2013. APDiscoms have been

Page 17

allocated a share of 46.11% (as per G.O. Ms. No. 20) i.e. 184 MW out of the total contracted

capacity of 400 MW.

AP DISCOMS have signed the Power Purchase Agreement with KSK Mahanadi for

400MW for 100% of its share from 15th June 2016 to March 31st 2017. APERC has

accorded approval for the plan under Agreement with M/s KSK Mahanadi vide O.P. No.03

of 2015 on 19.08.2015.

The licensees had also signed a PPA with Corporate Power for 150 MW, but the

energy would not be available from the source due to non-allocation of transmission capacity

by PGCIL.

3.3.9 Short Term and Bilateral/ Inter-State purchases

3.3.9.1 Bilateral Purchases

The licenseehas placed order of an average of 800MW to procure short term power

from June 2015 to May 2016 to bridge the power deficit.

3.4 Basis of estimation of power availability for H2 FY 2015-16 and FY 2016-17

3.4.1 GENCO (ANDHRA PRADESH GENCO & TELENGANA STATE GENCO)

3.4.1.1 Thermal Energy:

The Energy availability for H2 of FY 2015-16 has been projected based on the actual

performance of the plants up to September 2015 and projected performance estimated by

GENCO from October 2015 to March 2016. For FY 2016-17, the energy availability has

been projected based on the projected performance estimated by GENCO and maintenance

schedules of the plants.

The following GENCO plants have been commissioned/ assumed to be commissioned in FY

2015-16 and FY 2016-17:

Page 18

1. The COD of Damodaram Sanjeevaiah Thermal power plant unit I (APGENCO,

800 MW) was declared on 05.02.2015.

2. The COD of Damodaram Sanjeevaiah Thermal power plant unit II (APGENCO,

800 MW) is was declared on 24.08.2015.

3. KTPP Stage-II (TSGENCO, 600 MW) is expected to be commissioned in

December 2015

GENCO Thermal (Net Energy Availability- MUs)

S. No. Station Name H2 FY 2015-16 FY 20156-167

APGENCO

1 Dr NTTPS-I,II,III 1857.64 3709.03

2 Dr NTTPS-IV 658.97 1494.52

3 RTPP-I 617.52 1235.04

4 RTPP-II 617.52 1235.04

5 RTPP-III 308.76 617.52

6Damodaram Sanjeevaiah

Thermal Station-I2614.48 5242.66

7Damodaram Sanjeevaiah

Thermal Station-II2614.48 5242.66

Total APGENCO 9289.38 18776.45

TSGENCO

1 KTPS-(A,B,C) 1024.37 2084.55

2 KTPS-D 735.14 1470.28

3 KTPS-VI 747.26 1494.52

4 RTS-B 91.89 183.79

5 KTPP-I 739.30 1494.52

Total TSGENCO 3337.97 6727.65

Total 12627.35 25504.11

3.4.1.2 Hydro Energy:

Page 19

The hydro energy availability for H2 FY 2015-16 is expected to be 942.37MU and

3241.44 MU for FY 2016-17. Energy allocation for hydel stations is based on geographical

location and therefore, energy availability from TS GENCO stations has not been

considered.

It has been observed over the past few years that the actual availability from hydel

stations has been consistently lower than the value approved in the Tariff Orders issued by

APERC. The table below shows the actual hydro energy availability from FY 2002-03 to FY

2014-15 (for erstwhile AP). In this regard, the hydel projections have been considered to be

similar to the 10 year average availability.

Year Approved hydro energy availability in MU (As per Tariff Orders)1

Actual hydro energy availability in MU1

Variation between Approved and Actual hydro energy availability (%)2002-03 6,999 3,337 -52%

2003-04 6,757 2,959 -56%

2004-05 6,423 5,267 -18%

2005-06 5,979 7,873 32%

2006-07 7,586 9,328 23%

2007-08 8,592 9,566 11%

2008-09 9,046 7,729 -15%2009-10 8,969 5,499 -39%

2010-11 7,662 6,751 -12%

2011-12 8238 6221 -24%

2012-13 6407 3171 -50%

2013-14 7057 6761 -36.55

The following table shows the station-wise projected availability for H2 FY 2015-16 and FY 2016-17:

1For erstwhile AP

Page 20

APGENCO Hydel ( Net Energy Availability-MUs)

S. No. Station NameH2 FY 2015-

16FY 2016-17

1 MACHKUND PH AP Share 65.19 153.892 TUNGBHADRA PH AP Share 37.80 66.393 USL 207.90 445.384 LSR 501.93 1103.605 DONKARAYI 30.71 98.306 SSLM (Right Bank) 72.29 1045.257 NSRCPH 12.59 146.768 PABM 2.20 5.989 Mini hydro(Chettipeta) 1.78 2.62

10Nagarjuna sagar tail pond dam

PH 9.98 173.25

Total 942.37 3241.44

3.4.2 CENTRAL GENERATION STATIONS

The energy availability for H2 of FY 2015-16 has been projected based on the actual

performance upto August/September 2015 for CGS. For FY 16-17, the energy availability

has been projected based on the projected performance estimated by CGS and maintenance

schedules of the plants and also based on the details of energy availabilities received from

respective generators.

The Vallur Thermal Power Plant which is under generation (present capacity of 1,000

MW) has a total installed capacity of 1,500 MW. In this project, erstwhile AP had a share of

14.75%. The COD of the second unit of Vallur Power Project was 25.08.2013.

Page 21

Capacity addition from Tuticorin Thermal Power Plant Station is 118 MW (as per AP

share).COD for unit 1 has been considered to be in February2015 and for unit 2 to be in

March 2015.

The Kudgi Thermal Power Plant has a total installed capacity of 2,400 MW. In this

project, the residuary A.P is likely to get a share of 8.36% i.e. 200.62 MW. Now, the Project

is in advanced stage of construction. The anticipated COD of first unit of Kudgi Power

Project will achieve in September 2016 and second unit in March 2017.

Energy availability projections from CGS for H2 FY 2015-16 and FY 2016-17 are

tabulated below:

Central Generating Stations ( Net Energy Availability - MUs )


1 NTPC-(SR) Ramagundam I & II 1130 2228

2 NTPC-(SR) Stage – Ramagundam- III 293 521

3 NTPC-Talcher-II 705 1361

4 NTPC- Simhadri Stage-I 1487 3129

5 NTPC- Simhadri Stage –II (Unit 3 &4) 692 1336

5 NLC TS II Stage-I 120 297

6 NLC TS II Stage-II 269 503

7 NPC-MAPS 55 120

8 NPC-Kaiga 1 & 2 193 403

9 NPC-Kaiga 3 & 4 202 392

11 Bundled Power under JVNSM 182 354

10 Vallur (JV) NTPC with TANGEDCO 277 526

11 Tuticorin Thermal Power Plant 166 961

12 NTPC - Kudigi 0 306

TOTAL 5707 12436

3.4.3 APGPCL

Page 22

The projections for APGPCL – I and APGPCL – II are as shown below. The actuals

till September, 2015 have been factored while estimating energy availability for H2 FY

2015-16.40% PLF has been assumed for these plants for FY 2016-17

APGPCL Allocated Capacity (Energy Availability- MUs )


1 APGPCL I - Allocated capacity 14 31.66

2 APGPCL II - Allocated capacity 46.81 84.84

Total 60.81 116.50

3.4.4 IPPS

The availability of power from the generating stations of GVK, Spectrum, Lanco Kondapalli

and Reliance (BSES) have been projected based on the current gas supply levels. Actual

energy availability till September, 2015 has been factored while estimating energy

availability for H2 FY 2015-16. For FY 2016-17 40% PLF has been assumed. The PPA

subsisting with M/s GVK Phase-I was expired on 20.06.2015. APDISCOMs have issued

Buyout notice and M/s GVK-I is scheduling entire power only to APDISCOMs w.e.f.

20.06.2015. There is no share for TSDISCOMs up on expiry of PPA in respect of M/s GVK.

The PPA subsisting with M/s SPGL is going to expire by 18.04.2016. The APDISCOMs

would opt for either Renewal of PPA or Buyout of the project as per the terms of PPA. M/s

LANCO PPA gets completed by 01.1.2016, but the projections are furnished expecting that

the PPA gets renewed.

Old IPPs (Energy Availability-MU)


1 GVK 367.19 727.27

2 Spectrum 349.04 711.67

3 Lanco Kondapalli (Gas) 494.42 1263.95

4 Reliance BSES 179.70 350.90

Total 1390.34 3053.79

Page 23

Energy availability form the New IPPs viz; GVK EXtn, GMR Vemagiri, Gautami&

Konaseema and Merchant Power Plants viz., GREL, LKPL is considered to be zero.

S.No New IPPs FY 15 H2 (MU)FY 16-17

(MU)

1 GVK Extension Project 0 0

2 Vemagiri Power Generation Ltd 0 0

3 Gautami Power Ltd 0 0

4 Konaseema EPS Oakwell Power Ltd. 0 0

5 Lanco Kondapalli Power Ltd. 0 0

6 GMR Rajahmundry Energy Ltd. 0 0

3.4.5 Non-Conventional Energy (NCE) Sources

Wind:

1. For the existing Projects, the newly commissioned & to be commissioned wind

projects energy is anticipated based on the threshold PLF of 23.5% considered in

APERC Regulation 1 of 2015.

2. Monthly generation is assumed in proportion to the actual monthly generation values

of FY14-15

3. Capacity in MWs indicated for the FY: 2015-16 (H2) is actual installed capacity

commissioned under Power Purchase Agreements (Preferential & REC mechanism).

4. Capacity in MWs indicated for the FY: 16 -17 is actual installed capacity

commissioned under Power Purchase Agreements upto 15-16 plus anticipated

capacity of 500MW of the proposed 1016.4 MW by NREDCAP .

5. Tariff for the upcoming wind projects is assumed @ Rs.4.83/unit as per APERC

orders dt: 01.08.2015. Further, Income Tax/MAT and ED are pass through and same

are to be paid by DISCOMs to the developers over and above the tariff.

Page 24

Solar:

1. For the existing projects the newly commissioned & to be commissioned solar

projects energy is anticipated based on the threshold PLF of 19%.

2. Capacity in MWs indicated for the FY: 2015-16 (H2) is actual installed capacity

commissioned under Power Purchase Agreements and anticipated capacity considered

based on the target time lines envisaged in the Power Purchase agreements entered by

the solar developers with DISCOMs.

3. Monthly generation for FY 16-17 is assumed in proportion to the actual monthly

generation values of FY14-15

4. Capacity in MWs indicated for the FY: 16 -17 is anticipated capacity considered

based on the target time lines envisaged in the Power Purchase agreements entered by

the solar developers with DISCOMs.

5. Tariff for solar projects taken as per the PPA and the same was adopted by APERC.

6. GoAP issued the G.O. Ms No. 46, dated:27.11.2012 for purchasing Solar power of

1000MW through competitive bidding route. Accordingly AP Discoms had initiated

the bidding process for procurement of 1000 MW of solar power during 2012-13 and

PPA’s were entered with solar power developers for a capacity of 33 MW at the tariff

of Rs. 6.49/kWh for 20 years. Out of the PPA capacity of 33 MW,8 MW was

commissioned so far.

7. Further, GoAP issued the G.O Ms. No.8, dated: 12.02.2015 and directed

APDISCOMs for procurement of 1000 MW Solar Power through competitive bidding

process . Accordingly bidding process conducted by APPCC/APSPDCL for

procurement of 500 MW solar power in phase-1, the minimum first year tariff

obtained was Rs. 5.25/unit and the cut-off first year tariff considered was

Rs.5.999/unit. This tariff will be escalated at the rate of 3% per year till 10th year and

the 10th year tariff will be continued for the remaining 15 years. The corresponding

minimum levelised tariff is Rs. 6.17/unit and maximum Rs. 7.05/unit. and

Page 25

APDISCOMs entered PPAs for a capacity of 619 MW with consent of APERC. Out

of 619 MW, 15MW has been commissioned; 500MW of the balance capacity is

expected to be commissioned by March 31, 2016.

8. Further, GoAP also targeted to set up 3500 MW solar capacity through Solar Parks in

Kurnool and Anantapur districts with the support of Govt. of India. As a part of this,

GoAP has entered MoU with NTPC on 16.09.2014 for setting up of 1000MW solar

park in Anantapur dist. Subsequently as per the directions of GoAP, APDISCOMs

had entered PPAs with M/s NTPC for purchase of solar power from the proposed 250

MW (Phase-1) solar park at NP kunta, Anantapur Dist on 24.04.2015 and the 250

MW (Phase-1) will be commissioned by April-2016.

Mini Hydel:

1. For the existing Projects anticipated energy for the FY 2015-16 (H2) & FY: 2016-17

has been arrived based on the PLFs for the actual energy supplied for the FY 2014-

15 & FY 2015-16 (H1).

2. For upcoming Minihydel projects energy is anticipated @ 32% PLF.

3. Capacity in MWs indicated for the FY: 2015-16 (H2) and FY: 2016-17 is actual

installed capacity commissioned under Power Purchase Agreements and anticipated

capacity as per the information given by the NREDCAP.

4. Tariff for the upcoming projects is assumed as Rs. 4/unit since the APERC yet to

determine the tariff for new MiniHydel projects.

5. Presently, Minihydel developers are being paid APERC tariff which is exclusive of Electricity

Duty, Royalty charges and MAT/Income Tax. As and when claimed by the developers, the same

needs to be reimbursed.

Biomass, Bagasse, Industrial Waste & Municipal Solid Waste:

1. For the all existing Projects anticipated energy for the FY 2015-16 (H2) & FY: 2016-

17 has been arrived based on the PLFs for the actual energy supplied for the FY

2014-15 & FY 2015-16 (H1).

Page 26

2. Capacity in MWs indicated for the FY: 2015-16 (H2) and FY: 2016-17 is actual

installed capacity commissioned under Power Purchase Agreements.

3. Upcoming projects in these categories are nil.

4. Presently, the Biomass, Bagasse, Industrial Waste & Municipal Solid Waste

developers are being paid APERC tariff which is exclusive of Electricity Duty and

MAT/Income Tax. As and when claimed by the developers, the same needs to be

reimbursed.

Energy availability projections for H2 FY 2015-16 and FY 2016-17 from various NCE

sources is as summarized in the following table:

Non-Conventional Energy Sources ( Net Energy Availability - MUs )


1 Bio Mass Power Projects including Co-

gen

162.86 320.20

2 Bagasse Cogeneration Projects. 86.56 98.54

3 Wind Power Projects 548.19 2911.38

4 Mini Hydel Power Projects 56.02 113.45

5 Industrial Waste Based Power Projects 17.16 32.96

6 Municipal Waste Based Power Projects 0.18 0.36

7 NCL Energy Ltd. 16.43 24.84

8 Solar Power Projects 147.61 1046.91

9 Solar Parks 0 416.10

Total 1035.00 4964.74

3.4.6 Mini Power Plants

Page 27

The energy availability projections for FY 2015-16 H2 and FY 16-17 have been

projected as declared by the station at PLF 0% for Srivathsa for FY 15 H2 and at PLF 25%

for FY 16-17. The energy for LVS for FY 15 H2 and FY 16-17 would not be dispatched

owing to high variable cost.

Mini-Power Plants Allocated to EPDCL (Energy Availability-MUs)

S, No. Station Name FY 15 H2 FY 16-17

1 Srivathsa 0 38.14

2 LVS 0 0

Total 0.00 38.14

3.4.7 Hinduja National Power Corporation Limited

Energy availability of 606.12 MU and 6,082.77 MU has been considered from

Hinduja power plant for H2 of FY 2015-16 and FY 2016-17 respectively considering 80%

PLF. As per the projections in ARR for FY 2015-16 filed by APDiscoms and the same was

approved by APERC in its Retail Tariff Order for FY 2015-16, the entire energy available

from HNPCL Thermal Power Plant has been considered for Andhra Pradesh.

3.4.8 Long Term and Medium Term Purchases

LongTerm – Thermal PowerTech Corporation India Limited

The licensees (AP & Telangana Discoms) have signed a Power Purchase Agreement with

M/s. Thermal PowerTech Corporation India Limited (TPCIL) for a contracted capacity of

500 MW under long term basis through Case-I bidding route for a period of 25 years. In case

licensees accepts the revised schedule date of delivery as requested by TPCIL, the supply of

said power will commence from 01.04.2015 and the energy availability projected from this

plant for AndhraPradesh is 1,716 MU for FY 2016-17, which has been considered.

Long Term – 1000MW DBFOO Bidding

Energy availability has been considered from June 2016 at 90% PLF (ex-bus). The energy

availability projected from 1000MW DBFOO bidding is 6,566 MU for FY 2016-17.

Page 28

Medium Term – KSK Mahanadi

AP and Telangana Discoms have signed PPA’s with KSK Mahanadi and Corporate

Power for supply of power through medium term basis starting from June 2013 for a period

of 3 years. But, the energy from Corporate Power has not been considered as the PGCIL has

not granted its transmission access.80% PLF (599.44 MU for H2 FY 2015-16 and 2,295.64

MU for FY 2016-17) has been considered from KSK Mahanadi.


Bilateral Purchases

Energy availability considered from bilateral sources for FY 2015-16 is 3,406 MUs at a PLF of

85% and 821.81 MUs at a PLF of 85% for FY16-17 in the month of April and May 2016.

3.4.10 Summary

A summary of the source wise current estimate of energy available for H2 FY 2015-16 and FY

2016-17 is presented below.

Generating StationEnergy Availability (MU)

H2 FY 2015-16 FY 2016-17

Genco (APGenco & TSGenco)-

Thermal 12627.35 25504.11

Genco (APGenco & TSGenco)-

Hydel942.37 3241.44

CGS 5707.51 12436.63

APGPCL 60.81 116.50

IPPS 1390.34 3053.79

NCEs 1035.00 4964.74

Mini Power Plants 0.00 38.14

HNPCL 606.12 6,082.77

Long Term & Medium Term 1484.03 10,578.73

Short Term & Bilateral Purchases 3,406 821.81

Page 29

Generating StationEnergy Availability (MU)

H2 FY 2015-16 FY 2016-17

Total 27,323 66,839

3.5 Power Purchase Cost

3.5.1 GENCO (Andhra Pradesh GENCO &Telengana State GENCO)

The annual fixed costs for all APGENCO stations for FY 2015-16 have been

considered as approved by APERC in its order dated 31.05.2014 in OP No.15/2009 filed by

APGENCO for determination of tariff for FY 2009-14 which includes the year 2013-14. The

fixed cost for FY 2014-15 was admitted as per approved tariff order for FY 2013-14 and

subsequently, truing up of fixed cost for FY 2014-15 was done as per orders of APERC dt

31.05.2014 in OP No.15/2009.The fixed costs have been considered as per the projections of

APGENCO for FY 2016-17.

The total fixed costs for all the GENCO thermal and hydel stations2 including both

existing and new stations is Rs. 2,571.34 Crs for H2 of FY 2015- 16 and Rs. 5,704.87 Crs for

FY 2016-17. The fixed costs for GENCO Thermal and Hydel stations have been tabulated

below:

Station Fixed Costs for FY

2015-16 H2 (Rs. Cr.)

Fixed Costs for FY

2016-17 (Rs. Cr.)

APGENCO-Thermal

VTPS I 45.01 91.71

VTPS II 45.01 91.71

VTPS III 45.01 91.71

VTPS IV 146.86 295.62

2The fixed costs for TSGENCO stations have not been mentioned because energy availability from only APGENCO hydel

stations have been considered (allocation based on geographical location).

Page 30


2015-16 H2 (Rs. Cr.)

Fixed Costs for FY

2016-17 (Rs. Cr.)

RTPP I 68.38 138.86

RTPP Stage-II 138.87 279.51

RTPP Stage-III 91.36 183.61

Damodaram Sanjeevaiah Thermal

power station -I 582.30 1484.45

Damodaram Sanjeevaiah Thermal

power station -II 582.30 1484.45

APGENCO Thermal Total 1745.11 4141.63

TSGENCO-Thermal

KTPS A 49.57 68.00

KTPS B 49.57 68.00

KTPS C 49.57 68.00

KTPS D 79.12 127.50

KTPS Stage VI 170.86 363.55

RTS B 18.26 24.44

Kakatiya Thermal Power Plant Stage I 176.19 364.87

TSGENCO Thermal Total 593.14 1084.36

Total Thermal 2338.25 5225.99

APGENCO –Hydel

MACHKUND PH AP Share 4.65 9.30

TUNGBHADRA PH AP Share 3.19 6.38

USL 28.25 57.40

LSR 54.15 110.02

DONKARAYI 2.95 5.98

SSLM 103.52 209.56

NSRCPH 9.76 19.67

PABM 5.73 11.60

Mini hydro 0.35 0.72

Page 31


2015-16 H2 (Rs. Cr.)

Fixed Costs for FY

2016-17 (Rs. Cr.)

Nagarjuna sagar tail pond dam PH 20.54 48.26

Total Hydro 233.09 478.88

TOTAL GENCO 2571.34 5704.87

For existing GENCO thermal stations, the actual variable cost (including FCA) for

H1 of FY 2015-16 has been considered for H2 of 2015-16. For projecting FY 2016-17

variable cost for APGENCO stations, an escalation of 3% is taken on actual H1 FY 2015-16

variable cost per unit, whereas an escalation of 3% has been considered even for TSGENCO

stations. For Damodaram Sanjeevaiah Thermal power station unit I variable cost per unit for

H2 FY 2015-16 has been estimated to be Rs. 2.52/unit considering that 30% imported coal,

30% MCL washed coal and 40% domestic coal to be used. Rs. 2.20/unit for FY16-17

variable cost has been assumed as the units will be running at 85%PLFfor FY 2016-17.Same

variable cost per unit has been considered for Damodaram Sanjeevaiah Thermal power

station unit II for FY 2016-17

It has been observed over the past few years that usage of imported coal has become

necessary to bridge fuel shortfall, leading to a steady increase in the variable cost over the

past few years. The station-wise variable rates that have been projected for APGENCO

thermal plants & TSGENCO thermal Plants for H2 FY 2015-16 H2 and for FY 2016-17are

as follows:

Station Variable rate (Rs./kWh)

H2 FY 2015-16

Variable rate (Rs./kWh)

FY 2016-17

APGENCO Stations

VTPS (I, II, III) 3.30 3.34

VTPS-IV 3.21 3.3

RTPP-I 3.76 3.87

RTPP-II 3.76 3.87

Page 32

Station Variable rate (Rs./kWh)

H2 FY 2015-16

Variable rate (Rs./kWh)

FY 2016-17

RTPP-III 3.76 3.87

Damodaram

SanjeeviahTPS-I2.52

2.20

Damodaram

SanjeeviahTPS-II2.52

2.20

TSGENCO Stations

KTPS (A, B, C) 1.64 1.69

KTPS- D 1.50 1.55

KTPS-VI 2.74 2.82

RTS- B 3.01 3.10

KTPP-I 2.42 2.50

The incentives for GENCO thermal stations are calculated based on APERC

Regulation No 1 of 2008, at a flat rate of 25 paisa/kWh for ex-bus scheduled energy

corresponding to scheduled generation in excess of ex-bus energy corresponding to target

Plant Load Factor.

3.5.2 CGS:

NTPC (SR) (2100 MW)

CERC had notified the terms & conditions of tariff regulations for the control period

FY 2014-19 i.e., for a period of 5 years and the regulations, 2014 waspublished by CERC by

end of February 2014. CERC had modified the terms & conditions for determination of

fixed charges as well as energy charges to the ensuing control period for inter-state

generating stations. CERC provided the revised regulations stating that beneficiaries would

pay the fixed charges for FY 2016-17 and energy charges to the Inter-State Generating

stations based on the approved charges for FY 2013-14 and energy charges norms as per the

regulations, 2009 till the finalization of orders for the respective inter-state generating station

Page 33

ie, NTPC & NLC, JV. Due to non-availability of orders of CERC, the fixed charges were

considered based on the CERC approved charges for FY 2013-14. The incentives payable

had been considered as 50 paise per unit based on the actual PLF above threshold level of

85% as per the prevailing regulations of CERC, 2014. In the orders of CERC for FY 2013-

14, the income tax was grossed up in ROE component as per the regulations, 2009 and

hence, the fixed charges determined for H2 FY 2015-16 and FY 2016-17 are inclusive of

income tax. Based on the availability projections, the fixed charges along with payable

incentives are computed for H2 FY 2015-16 and FY 2016-17 for Ramagundam I & II. AP

has a share of 14.91% from Ramagundam I & II. Variable cost per unit for H2 FY 2015-16

has been considered same as actual per unit variable cost as H1 FY 2015-16. FY 2016-17

per unit variable cost has been projected by considering 3% escalation on the VC of H1 FY

2015-16. The recoverable PLF of fixed charges are 83% only based on the availability of

generating station subject to any coal shortages occur, as per new regulations, 2014. Due to

non-finalization of fixed charges in every year of the control period FY 2014-19, the

prevailing fixed charges for FY 2013-14 had been recovered by NTPC by considering 83%

PLF on availability. NTPC had submitted the tariff petition of Ramagundam I & II as per

Regulations, 2014 before Hon’ble CERC for determination of fixed charges to the control

period 2014-19.

NTPC (SR) STAGE-III (500 MW)


FY 2014-19 i.e., for a period of 5 years and the regulations, 2014 was published by CERC by




pay the fixed charges for FY 2016-17 and energy charges to the inter-state generating


regulations, 2009 till the finalization of orders for the respective inter-state generating

stations ie, NTPC & NLC, JV. Due to non-availability of orders of CERC, the fixed charges

were considered based on the CERC approved charges for FY 2013-14. The incentives

Page 34

payable had been considered as 50 paise per unit based on the actual PLF above threshold

level of 85% as per the prevailing regulations of CERC, 2014. In the orders of CERC for FY

2013-14, the income tax was grossed up in ROE component as per the regulations, 2009 and



incentives are computed for H2 FY 2015-16 and FY 2016-17 in case of Ramagundam III.

AP has a share of 15.68% from Ramagundam III. Variable cost per unit for H2 FY 2015-16



2015-16. The recoverable PLF of fixed charges are 83% only based on availability of


non-finalization of fixed charges in every year to the control period 2014-19, the prevailing

fixed charges for FY 13-14 had been recovered by NTPC by considering 83% PLF on

availability. NTPC had submitted the tariff petition of Ramagundam III as per Regulations,

2014 before Hon’ble CERC for determination of fixed charges to the control period 2014-19.

NTPC-TALCHER -II (2000 MW)


FY 2014-19 i.e., for a period of 5 years and the regulations, 2014 was published by CERC

by end of February 2014. CERC had modified the terms & conditions for determination of

fixed charges as well as energy charges for the ensuing control period for inter-state



stations based on the approved charges for FY 2013-14 and energy charges as per the







Page 35



incentives are computed for H2 FY 2015-16 and FY 2016-17 for Talcher-II. AP has a share

of 9.22% from Talcher-II. Variable cost per unit for H2 FY 2015-16 has been considered

same as actual per unit variable cost as H1 FY 2015-16. FY 2016-17 per unit variable cost

has been projected by considering 3% escalation on the VC of H1 FY 2015-16. The

recoverable PLF of fixed charges are 83% only based on availability of generating station

subject to any coal shortages occur, as per new regulations, 2014. Due to non-finalization of

fixed charges in every year of the control period FY 2014-19, the prevailing fixed charges for

FY 2013-14 had been recovered by NTPC by considering 83% PLF on availability. NTPC

had submitted the tariff petition of Talcher II as per Regulations, 2014 before Hon’ble CERC

for determination of fixed charges to the control period 2014-19.

NTPC SIMHADRI STAGE-I (1000 MW)


FY 2014-19 i.e., for a period of 5 years and the regulations, 2014 waspublished by CERC by














incentives are computed for H2 FY 2015-16 and FY 2016-17 in case of Simhadri Stage-I.

Page 36

AP has a share of 46.11% from Simhadri Stage-I. Variable cost per unit for H2 FY 2015-16







PLF on availability. NTPC had submitted the tariff petition of Simhadri Stage I as per

Regulations, 2014 before Hon’ble CERC for determination of fixed charges to the control

period 2014-19.

NTPC- SIMHADRI II (1000 MW)


FY 2014-19 i.e., for a period of 5 years and the regulations, 2014 was published by CERC

by end of February 2014. CERC had modified the terms & conditions for determination of

fixed charges as well as energy charges for the ensuing control period for inter-state



stations based on the approved charges for FY 2013-14 and energy charges as per the









incentives are computed for H2 FY 2015-16 and FY 2016-17 in case of Simhadri Stage-II.

AP has a share of 21.11% from Simhadri Stage-II. Variable cost per unit for H2 FY 2015-16


Page 37






PLF on availability.

NLC Stage –I (630 MW)

For the APDISCOMs share of 8.49 % of 630 MW, the payable fixed charges and

lignite cost for the Control Period of FY 2009-14 was determined by CERC in its final orders

of NLC TPS-II (Stage-I). The lignite costs for the Control Period of FY 2014-19 is yet to be

determined by Ministry of Coal, GOI. Variable cost per unit for H2 FY 2015-16 has been

considered same as actual per unit variable cost as H1 FY 2015-16. FY 2016-17 per unit

variable cost has been projected by considering 3% escalation on the VC of H1 FY 2015-16.

NLC Stage –II (840 MW)

For the APDISCOMs share of 11.20 % of 840 MW, the payable fixed charges and

lignite cost for the Control Period of FY 2009-14 was determined by CERC in its final orders

of NLC TPS-II. (Stage-II). The lignite cost for the Control Period FY 2014-19 is yet to be

determined by Ministry of Coal, GOI. Variable cost per unit for H2 FY 2015-16 has been

considered same as actual per unit variable cost as H1 FY 2015-16. FY 2016-17 per unit

variable cost has been projected by considering 3% escalation on the VC of H1 FY 2015-16.

KAIGA ATOMIC POWER STATION 1 & 2 (440 MW) and 3 & 4 (440MW):

The AP share from Kaiga 1 & 2 is 14.25% and from Kaiga 3 &4 is 15.09%. The tariff

for Kaiga 1&2 and Kaiga 3&4 for H2 FY 2015-16 has been considered same as the tariff in

H1 FY 2015-16. FY 2016-17 per unit variable cost has been projected by considering 3%

escalation on the VC of H1 FY 2015-16.

Page 38

Vallur Thermal JV Power Project (NTPC & TANGEDCO):

Ministry of Power, GOI had allocated firm share of 11.87% from total capacity of 1500 MW

to erstwhile AP and 12.25% was considered for erstwhile AP inclusive unallocated power.

Presently, Units 1, 2 & 3 are under generation and 93 MW is being availed by AP Discoms

from this power project. NTECL had made filings before CERC for determination of tariff

for the control period 2014-19 for this JV Project and provisional orders were yet to be

issued by CERC for payment of fixed charges. The fixed charges for H2 FY 2015-16 and

FY 2016-17 are computed based on the 85% of AFC (for units 1,2&3) as approved by

CEO(NTECL) pending tariff order from Hon'ble CERC for FY 2014-15 for Vallur power

project. Variable cost per unit for H2 FY 2015-16 has been considered same as actual per

unit variable cost as H1 FY 2015-16. FY 2016-17 per unit variable cost has been projected

by considering 3% escalation on the VC of H1 FY 2015-16.The incentives payable have

been factored into the fixed charges. In the orders of CERC, the income tax was grossed up

in ROE component as per the regulations, 2009 and hence, the fixed charges determined for

H2 FY 2015-16 and FY 2016-17 are inclusive of income tax. As per the Central Electricity

Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009, incentives are

also part of fixed charges which are to be computed every month based on the formulae provided

in the Regulations. Based on the availability projections, the fixed charges along with payable incentives

are considered for H2 FY 2015-16 and FY 2016-17.

NLC-TNPL Tuticorin

A joint venture power project of NLC and TNEB had implemented at Tuticorin with an

installed capacity of 1000MWs. Both the units were declared the COD and presently, AP is

availing 132 MWs from this power project. M/s.NTPL had filed the tariff petition before

Hon’ble CERC for determination of fixed charges to the control period 2014-19. Based on

these filings, CERC had issued the provisional orders. The fixed charges are computed

based on the availability projections duly considering the 30% PLF for H2 FY 15-16 and

with 100% PLF for FY 16-17, as submitted by NTPL. Variable cost per unit for H2 FY

2015-16 has been considered same as actual per unit variable cost as H1 FY 2015-16. FY

2016-17 per unit variable cost has been projected by considering 3% escalation on the VC of

Page 39

H1 FY 2015-16. The payable incentives were computed by considering the regulations,

2014 i.e., 50 paise per unit above the threshold PLF of 85%.

NTPC-Kudgi

As informed by NTPC, the estimated total cost per unit is Rs. 4.20 (Fixed Cost of Rs. 2.31

and Variable Cost of Rs. 1.89) during the first year. A petition will be filed before Hon’ble

CERC for determination of tariff based on the capital cost before synchronization of the first

unit i.e. in March 2016. For the period between the achievement of CoD and determination

of tariff by CERC, the Company will raise bills based on the provisional tariff and

reconciliation will be done after finalization of tariff by CERC.

3.5.3 APGPCL

The power purchase cost incurred by APDISCOMs for procurement from APGPCL for H2

FY 2015-16 and FY 2016-17 are as per the projections given by APGPCL.

The calculations were done on the basis of availability of 0.65 MSCMD of Natural Gas with

the usage of part load i.e., about 172MW (out of 272 MW). As a result, about 100 MW was

kept as idle for want of Natural Gas. Consequently, the fixed cost has gone up steeply.

Cost components for H2 FY 2015-16 and FY 2016-17

Particulars H2 FY 2015-16 FY 2016-17

Stage-I

Fixed cost (Rs. Crs.) 0.69 0.98

Variable cost (Rs. / kWh) 2.78 2.87

Stage –II

Fixed cost (Rs. Crs.) 1.60 3.04

Variable cost (Rs. / kWh) 2.79 2.87

During FY 2014-15, Natural Gas dollar rate had been drastically increased from USD 59.00

to USD 62.00 Fixed cost also increased due to non-supply of natural gas due to gas pipe line

blast at Nagaram Village, East Godavari Dist on 27.06.2014. APGPCL plants were totally

closed for about Four and Half months.

Page 40

Proposed gas cost is USD 3.82 per MMBTU which is effective from October 2015.

S. No Particulars H2 FY 2015-2016 FY 2016-2017

1 Gas Availability in SCMD 6,50,000 6,50,000

2 Gas Rate - per MMBTU 3.82 USD 3.82 USD

3 Exchange Dollar Rate [$] 65 65

4 Variable Cost Unit Rate : Rs.

Stage-I 2.78 2.87

Stage-II 2.79 2.87

As plants are running with part load, the gas consumption i.e. SFC (Specific Fuel

Consumption) is also more which is contributing to increase in the variable cost and fixed

cost.

3.5.4 IPPs

GVK JEGURUPADU POWER PROJECT

The fixed cost is fully recoverable at 68.50 % PLF. The variable charge of H2 FY 15-16 is

considered same as APERC approved FY 15-16 value of Rs 2.62/ kWh and 3% escalation on

APERC approved FY15-16 value has been considered for FY 2016-17.

The capital cost of this plant is Rs. 816 Crs. The estimated fixed cost for Andhra Pradesh is

Rs. 68.84 Crs per annum for FY 2015-16 (H2) and Rs.123.87 Crs (estimated) for FY 2016-

17 (.The PPA subsisting with M/s.GVK was expired on 20.06.2015. APDISCOMs had

issued Buyout notice and M/s.GVK is scheduling entire power only to APDISCOMs w.e.f.

20.06.2015. There is no share for TSDISCOMs upon expiry of PPA in respect of M/s.GVK).

The fixed cost includes foreign exchange variations payable by APDISCOMs to the

generator as per the provisions of Power Purchase Agreement. The actual fixed cost as

settled by the licensee may be different from the estimates as presented above on account of

the monthly Foreign Exchange Rate Variation (FERV). The licensee submits to the Hon’ble

Commission to allow the licensee to subsequently claim the change in fixed cost on account

of FERV.

Page 41

Deemed / Notional generation claims will be payable to the generator up to 85 % PLF as per

the incentive formulae provided in the PPA.

Computation of incentive has been carried out based on the formula provided in the PPA. As

there is gas deficit the expected PLF for H2 FY 2015-16 and for FY 2016-17 is 40%. Hence

incentive may not be applicable for H2 FY 2014-15 and FY 2015-16.

Incentive payment = Equity x (PLF - 68.50) x 0.00525;

Equity = Rs. 244.80 Crs;

Projected incentive for H2 FY 2015-16 is Rs. 0.00 Crs and for FY 2016-17 is Rs. 0.00 Crs

(as there is deficit of gas).

SPECTRUM

The fixed cost is fully recoverable at 68.50 % PLF. The variable charge of H2 FY 15-16 is



The estimated fixed cost for Andhra Pradesh is Rs. 63.12 Crs per annum for FY 2015-16 and

Rs.5.60 Crs for FY 2016-17 (In respect of M/s.SPGL power is sharing by AP & TS

DISCOMs as per G.O.Ms.No.20 Dt.08.05.2014 but Projections are made considering full

capacity of the plant (not AP share). Further, the PPA subsiding with M/s.SPGL is going to

expire by 18.04.2016. The APDISCOMs yet to decide for choosing the options either

Renewal of PPA or Buyout of the project. Hence the projections are shown only up to

18.04.2016). The fixed cost is inclusive of foreign exchange variations payable by

APDISCOMs to the generator as per the provisions of Power Purchase Agreement.

The actual fixed cost as settled by the licensee may be different from the estimates as

presented above on account of the monthly Foreign Exchange Rate Variation (FERV). The

licensee submits to the Hon’ble Commission to allow the licensee to subsequently claim the

change in fixed cost on account of FERV.

Page 42

Deemed / Notional generation claims will be payable to the generator up to 85% PLF as per

the incentive formulae provided in the PPA.

Computation of incentive has been carried out based on the formula provided in the PPA. As

there is gas deficit the expected PLF for H2 FY 2015-16 and for FY 2016-17 is 40% (The

projections are taken only up to 18.04.2016). Hence incentive may not be applicable for H2

FY 2014-15 and FY 2015-16.

Incentive payment = Equity x (PLF - 68.50) x 0.004 (if PLF > 68.50 < 80.50);

Incentive payment = Equity x (PLF - 68.50) x 0.005 (if PLF > 80.50 < 85.50);

Incentive payment = Equity x (PLF - 68.50) x 0.006 (if PLF > 85.50);

Equity (considered provisionally) = Rs. 117.92 Crs;

Projected incentive for H2 FY 2015-16 is Rs. 0.00 Crs and for FY 2016-17 is Rs. 0.00 Crs

(as there is deficit of gas).

LANCO KONDAPALLI

The fixed charges are fully recoverable at 80% PLF. The variable charge of H2 FY 15-16 is



Estimated fixed costs for Andhra Pradesh for FY 2015-16 upto 01.01.2016 is Rs.43.62 Cr.

The subsisting PPA with LANCO expires by 01.01.2016.

As per the existing PPA of Lanco Kondapalli with APDiscoms, the FDSC component of the

fixed charge will not be payable by APDiscoms after completion of 12 years from the date of

commencement of supply of power. This 12 year duration was completed by December

2012. Hence, no FDSC component are payable.

In case the plant achieves a PLF (I) greater than 80% for a tariff year, then the Board shall

pay to the generator incentive (as a percentage of the other fixed charges) for any additional

Page 43

unit generated beyond the actual generation in excess of a PLF (I) of 80%. The incentive

structure is as shown below:

PLF (I) % Incentive (%)

Up to 80 % Nil

Above 80 % and up to 85

%

2 % for every 1 % increase in PLF(I) (i.e. for a PLF(I) of 85 %,

the incentive will be 10 % of the Other Fixed Charge)

Above 85 % and up to 90

%


the Incentive will be 10 % + 15 % = 25 % of the Other Fixed

Charge)

Above 90 % Same as for 90% i.e. 25% of the Other Fixed Charge.

Projected incentive for H2 FY 2014-15 is Rs. 0.00 Crs and for FY 2015-16 is Rs. 0.00 Crs.

RELIANCE INFRASTRUCTURE LTD. (BSES)

The fixed charge is fully recoverable at 85 % PLF. The variable charge of H2 FY 15-16 is



Based on the formula provided in the PPA and considering 46.11% of the fixed cost for

erstwhile Andhra Pradesh (as per G.O. Ms. No. 20), the fixed costs for Andhra Pradesh for

FY 2015-16 and FY 2016-17 are Rs. 3.41 Crs and Rs. 6.82 Crs respectively. Since payment

of FDSC component got over by December 2013 and only OFC is payable, fixed charges are

being paid as per the actual PLF achieved during the month as there is no alternate fuel

facility.

In case the plant achieves a PLF (I) greater than 85% for a tariff year, then the incentive (as a

percentage of the other fixed charges) payable for any additional unit of actual generation in

excess of a PLF (I) of 85 %. The incentive structure is as shown below:

PLF (I) % Incentive (%)

Up to 85 % Nil

Above 85 % and up to

90 %


the Incentive will be 10 % of the Other Fixed Charge

Page 44

Above 90 % Same as for 90% i.e. 10 % of the Other Fixed Charge.

Projected incentive for H2 FY 2015-16 is Rs. 0.00 Crs and for FY 2016-17 is Rs. 0.00 Crs.

The licensee shall not bear the tax on incentives payable to the generator.

New IPPs & Merchant Plants

No fixed and variable charges are considered from the new IPP plants.

3.5.5 NON CONVENTIONAL ENERGY (NCE) SOURCES:

The Commission issued orders on 20.03.2004, fixing power purchase price applicable for

NCE Projects (Biomass/Industrial Waste, Bagasse & Mini Hydel) from 01.04.2004 to

31.03.2009. The NCE Project Developers filed cases before the Appellate Tribunal against

the APERC orders. The Appellate tribunal set aside APERC Orders dated. 20.03.2004.

APTRANSCO and APDISCOMs filed Appeals before Supreme Court against ATE Orders.

The Hon’ble Supreme Court passed Orders dated. 08.07.2010 setting aside ATE Orders. The

Supreme Court remanded the matter to APERC with a direction to hear NCE Project

developers afresh and determine /fix tariff/power purchase price. APERC has initiated the

public hearing in this matter from 28.09.2010 and passed three divergent orders vide its order

dt:12.09.2011. The APERC orders are challenged before Appellate Tribunal for Electricity

by NCE developers & APDISCOMs.

The Appellate Tribunal in its order dt:20.12.2012, while fixing the parameters, directed

APERC to fix the tariff accordingly to be payable to Non-conventional Energy Developers

for the period 2004-2009. Aggrieved by the APTEL order dt:20.12.2012, APDISCOMs filed

Civil Appeals Nos 1376-1385 of 2013 before Hon’ble Supreme Court. The apex court

admitted the appeals and are pending for disposal.

The APDISCOMs filed an application I.A. No.22 of 2013 in O.P. No.1075 of 2000 praying

the APERC to defer the hearing of the remand proceedings on NCE tariff cases as ordered by

the Appellate Tribunal for Electricity in order dt:20.12.2012 till the final disposal of civil

appeals (1376 to 1385) filed before Hon’ble Supreme Court. The APERC dismissed the I.A.

Page 45

No.22 of 2013 with the opinion that DISCOMs cannot ask for deferment of the tariff order to

give effect to the APTEL order on the plea that the petition has been filed before Hon’ble

Supreme Court and the same is admitted for hearing. The APERC issued order

dt:22.06.2013, pursuant to APTEL order dt:20.12.2012, determining the tariff payable to

NCE developers for the period 01.04.2004 to 31.03.2009. The DISCOMs filed Special Leave

Petition in the Hon'ble Supreme Court against the order dated 22.6.2013 passed by the

APERC vide SLP (Civil) No. 30416 to 30428 of 2013.

APERC issued suo-moto order dt:6.8.13 determining variable cost tariff in respect of

Bagasse & Biomass (including Industrial Waste) projects giving consequential effect to the

order dated 31.03.2009 in O.P No.5 of 2009 based on Hon’ble APTEL order dated

20.12.2012 & 30.04.2013. DISCOMs filed SLP against APERC order dated 06.08.2013 in

the Hon'ble Supreme Court vide SLP (Civil) No. 19508 of 2013.

The Special Leave Petitions (Civil) 30416-28 filed against APERC order dt:22.6.13 & 19508

filed against APERC order dt:06.08.13 came up for admission on 28.10.2013 and the

Lordships were not inclined to grant permission to file Special Leave Petitions directly

against the orders of APERC and directed to withdraw the Special Leave Petitions.

Accordingly, the Special Leave Petitions were withdrawn.

As such, IAs were filed in C.A 1376-85 of 2013 before Hon’ble Supreme Court requesting

for grant of stay of APERC orders dt:22.06.2013 & 06.08.2013 and Appeal Nos. 83 & 84 of

2014 were filed before APTEL against APERC orders dt:22.06.2013 & 06.08.2013. The

same were dismissed by APTEL vide order dt: 21.07.2014 as not maintainable.

Subsequently, appeals 10448 & 10499 are filed before Hon’ble Supreme Court against the

orders of APTEL dt: 21.07.2014. The appeals are tagged with CA 1376-85 of 2013 and are

likely to be listed on 20.01.2016.

About Rs. 406 Crs was already paid to the NCE developers in accordance with the various

court orders (in the united Andhra Pradesh state).

Page 46

However, upon the directions of Hon’ble Supreme Court dt: 16.12.2013, APDISCOMs are

implementing tariff to the NCE developers as per APERC order dt: 22.06.2013 from the date

of order, viz., 22.06.2013.

Further, vide orders dt:11.03.2014 & 13.03.2014, Hon’ble Supreme Court of India directed

to release 50% amount due to the NCE developers. Accordingly, the NCE developers were

paid Rs.214.96 Crs in erstwhile Andhra Pradesh.

APERC determined the variable cost for the control period FY 2014-19 vide APERC order

dt: 16.05.2014. Further, APERC determined the fixed cost tariff for the Biomass, Bagasse,

Mini Hydel & Industrial Waste projects for beyond 10 years of operation vide APERC

orders dt:19.07.2014, 05.08.2014, 23.08.2014 & 01.09.2014 respectively. The fixed cost &

variable cost are adopted as per the above orders for cost projections for H2 FY 2015-16 and

FY 2016-17. However, review petitions have been filed by APDiscoms on APERC orders dt:

19.07.2014, 05.08.2014, 23.08.2014& 01.09.2014. The Hon’ble Commission

dismissed/rejected these review petitions. Hence, appeals DFR Nos. 645 &646 of 2015 were

filed before APTEL.

Further, the Biomass developers filed appeals before APTEL on APERC order dt:

16.05.2014& 19.07.2014 wherein APERC determined variable cost tariff for FY 2014-19 &

fixed cost tariff for biomass projects beyond 10 years of operation respectively. Also,

bagasse developers preferred appeal before APTEL against APERC order dt: 16.05.2014.

The Mini Hydel developers also preferred appeal before APTEL against APERC order dt:

23.08.2014.

The Commission vide its order dt: 31.03.2009 fixed single part tariff for existing Wind and

Municipal waste projects for the period from 1.4.2009 to 31.3.2014. Further APERC issued

orders dt: 15.11.2012 duly fixing new tariff @Rs 4.70/unit for upcoming wind power

projects upto 31.03.2015. The said tariff order was extended till 31.07.2015. Vide order

dt:01.08.2015, APERC determined the tariff for the upcoming wind projects for FY2015-16

@ Rs.4.83/unit without AD and @Rs.4.25/unit with AD based on the regulation no 1 of 2015

Page 47

pertaining to terms and conditions for tariff determination for wind projects in the state of AP

for the period from FY 2015-16 to 2019-20.

The weighted average costs per unit (or Tariff Order rates) for NCE sources considered for

FY 2016-17 are shown in the table below:

Project Type

Weighted average Cost /

Tariff Order Rate Considered

for H2 FY 2015-16 (Rs. /

kWh)

Weighted average Cost /

Tariff Order Rate Considered

for FY 2016-17 (Rs. / kWh)

NCE – Bio-mass including Co -

Gen

5.916.18

NCE – Bagasse 4.15 4.33

NCE – Municipal Waste to Energy 5.91 6.18

NCE – Industrial Waste based

power project

5.936.11

NCE – Wind Power 4.27 4.40

NCE – Mini Hydel 2.63 2.30

NCE – NCL Energy Ltd. 1.62 1.67

NCE – Solar Power 6.82 6.80

NCE – Solar Parks - 6.16

3.5.6 MINI POWER PLANTS

SRIVATHSA POWER PROJECTS LTD (17.202 MW)

The recovery of fixed charges is limited to the delivery of 110 MU energy units. The fixed

cost payable is Rs. 0.00 Crs for FY 15 and Rs. 1.726727 Crs for FY 16-17. The variable

tariff for H2 FY 2015-16 has been considered same as the tariff in H1 FY 2015-16. FY 2016-

17 per unit variable cost has been projected by considering 3% escalation on the VC of H1

FY 2015-16.

Page 48

Incentives: In case the project achieves delivered energy in excess of 110 MU in a tariff year,

the APDISCOMs shall pay to the generator, an incentive of Rs.0.05 (Rupees Zero and Five

Paise only) / kWh for each additional unit of actual delivery of energy at the Interconnection

Point.

3.5.7 HNPCL

M/s. HNPCL has filed an application vide O.P.No. 21/2015 before Hon’ble APERC for

determination of tariff of 1040 MW Coal fired Thermal Power Plant to be set up at

Visakhapatnam under cost plus basis and the hearings are under progress. Pending

determination of Tariff by APERC, M/s. HNPCL has claimed the variable cost per unit of

Rs. 1.8/kWh and fixed cost of Rs. 2.16/kWh at 85% avaiability for FY 2016-17.

3.5.8 Long Term&Medium Term

Long Term – Thermal PowerTech Corporation India Limited

Variable cost per unit of Rs.1.76/kWh have been considered for H2 FY 2015-16. And 3%

escalation for FY 16-17. Fixed cost per unit of Rs.1.76/kWh have been considered for FY

16-17.

Long Term – 1000MW DBFOO Bidding

Total cost per unit considered for FY 16-17 is Rs.3.87/kWh. With variable cost of

Rs.1.41/kWh

Medium Term – KSK Mahanadi

Total cost per unit considered for FY 2016-17 is Rs. 3.79/kWh.


Month-wise shortfall has been estimated based on the availability and requirement. A part of

this deficit would be met from external sources such as power traders and power exchange.

The cost of power purchase is considered at Rs.5.17/kWh same as of H1 FY 15-16

Page 49

3.5.10 Bilateral Purchases/Sale of Surplus Power

Month-wise surplus has been estimated based on the availability and requirement. A part of

this surplus is assumed to be sold through bilateral contracts at a price of Rs.4.89/kWh. The

estimated sale of such surplus power is 4,334 MUs and the remaining will be sold in the

open market provided the variable cost is lower than market price. (Monthly Market Price for

FY16-17 is assumed to remain same as S2 grid market price of FY 2015-16.The estimated

sale from such external sources are estimated to be 2,808 MUs for FY 2016-17.

3.5.11 D-D Purchases

Month-wise availability of each APDiscom has been calculated based on PPA allocation.

The requirement of each Discom at APTRANSCO periphery has been calculated, by

grossing up the sales with losses. The D-D purchases / sales for each Discom have been

estimated after taking into account the respective allocations to each Discom as per the Final

Transfer Scheme. The D-D pool price has been considered at Rs. 5.17/kWh for FY 2016-17

(price of energy from bilateral purchases).

3.6 Energy Requirement

Based on the availability shown above and the energy requirement from all the Discoms, the

actual energy to be purchased Discom-wise has been projected as follows:

DISCOMSH2 FY 2015-16 FY 2016-17

MU MU

APEPDCL 8,409 19,085

APSPDCL 17,878 38,481

Total 26,288 57,566

The above energy requirement of the licensees has been arrived at by grossing up the sales of

the licensee sales with appropriate transmission and distribution losses. The external loss on

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the power purchased from CGS and KSK Mahanadi only has also been factored in the above

energy requirement.

3.7 Summary of Power Purchase for Current Year H2 FY15-16andEnsuing year FY 16-17

Based on the availability, requirement and costs for each source, the summary of power

purchase cost for Andhra Pradesh for H2 FY 2015-16 is projected as follows:

Source

2015 -16 H2 Projection

Power Purchase (MU) Available

Power Purchase (MU) Despatch

Costs (INR Crs)

PP Cost (INR/kWh)

APGENCO Thermal 9,289 9,289 4,467 4.81

TSGENCO Thermal 3,338 3,338 1,287 3.86

APGENCO Hydel 942 942 233 2.47

TSGENCO Hydel - - - -

CGS 5,771 5,771 1,966 3.41

APGPCL 61 61 19 3.16

IPPs - Gas 1,390 1,390 482 3.46

NCE 1,035 1,035 492 4.76

Others* 2,090 2,090 700 3.35

Market 3,406 2,335 1,207 5.17

Total 27,323 26,252 10,853 4.13

*Others include Srivathsa, Long term and Medium term purchases, Hinduja

Based on the availability, requirement and costs for each source, the summary of power

purchase cost for Andhra Pradesh for FY 2016-17 is projected as follows:

Page 51

Source

FY 16-17 Projection

Power Purchase (MU) Available

Power Purchase (MU) Despatch Costs (INR Crs) PP Cost

(INR/kWh)

APGENCO Thermal 18,776 16,915 8,703 5.14

TSGENCO Thermal 6,728 6,720 2,514 3.74

APGENCO Hydel 3,241 3,241 479 1.48

TSGENCO Hydel - - -

CGS 12,437 12,437 4,252 3.42

APGPCL 117 107 35 3.25

IPPs - Gas 3,054 3,048 1,119 3.67

NCE 4,965 4,965 2,539 5.11

Others* 16,700 16,700 6,440 3.86

Market 822 575 297 5.17

Total 66,839 64,706 26,378 4.08

DISCOM Energy Requirement 57,566 57,566 23,533 3.97

Sale of Surplus Power 9,274 7,142 (3,502) (4.90)

*Others include Srivathsa, Long term and Medium term purchases, Hinduja

4 Losses4.1 DISCOM losses

The DISCOM losses for H2 FY 15-16 is taken as per APERC approved values and 5%

reduction is considered for FY16-17

The below table provides the voltage level losses for projecting the energy requirement for

H2 FY 2015-16 and FY 2016-17.

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APSPDCL - DISCOM losses

Voltage Level H2 FY 2015-16 FY 2016-17

33 kV 3.80% 3.61%

11 kV 3.84% 3.65%

LT 5.00% 4.75%

The following table gives the details of losses excluding EHT sales projected by

APSPDCL for 2015-16 and 2016-17.

2015-16 2016-17

Excl. EHT Incl. EHT Excl. EHT Incl. EHT

Approved by APERC 10.17 % 8.75 % - -

Projection of APSPDCL 10.54 % 9.31 % 9.97 % 8.44 %

4.2 TRANSCO losses

The Transco losses for H2 FY 2015-16have been taken as per approved. And for FY 16-17

Transco losses for FY 15-16 H1 actuals are considered

Transmission Losses

H2 FY 2015-16

Transmission Losses

FY 2016-17

3.95% 3.34%

4.3 Losses external to APTRANSCO system

The losses external to the APTRANSCO system are considered to be 3.57 % for H2 FY 15-

16 and also for FY16-17 APERC approved values for FY15-16. This is applicable for

procurement of power from Central Generating Stations and other medium and short term

purchases. However, external losses have not been considered for bilateral / inter-state

purchases due to considering average landed power purchase cost at APTransco periphery.

4.4 APTransco Charges

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The Transmission Cost has been computed based on the Transmission Tariff order for

the FYs 2013-14, FY 2014-15, 2015-16 and 2016-17and is tabulated below:

Form - 1.1 – Transmission Cost

Name of Transmission

service provider

Load not eligible for Open Access Open AccessLoad Eligible for Open Access

MW Tariff (Rs./kW/month)

Cost(Rs. Crs.) MW Tariff

(Rs./kW/month)Cost

(Rs. Crs.)1 2 3 4 5 6 7

APTransco

2013-14 3050.55 61.03 144.83 1388.4

5 61.03 101.68

2014-15 4131.55 65.30 301.61 2259.9

9 65.30 177.09

2015-16 4624.44 76.66 425.41 2485.9

9 76.66 228.69

2016-17 4806.22 91.36 348.56 2734.5

9 91.36 299.80

As per revised regulatory formats the transmission load has been apportioned between

load not eligible for open access & load eligible for open access and the transmission cost is

arrived by applying the respective transmission tariff.For the FY 2015-16, contracted

demand of APSPDCL of six districts are considered for entire 12 months and contracted

demand of newly added Anantapur &kunool districts are considered for 10 months for

computation of transmission charges. Contracted load of Anantapur &kurnool districts is

taken as 17.45% of contracted load of erstwhile APCPDCL. The licensee has considered the

true-up order for 2nd control period regarding transmission charges, issued by Honourable

APERC on 7-11-15 in OP.No. 13 of 2015.

4.5 PGCIL and ULDC Charges

The PGCIL and ULDC charges have been computed based on the information sought by the

licensee from APTransco. For FY 2014-15 the figures shown are actuals. For FY 2015-16,

charges approved in the Tariff Order have been adopted and the licensee has projected the

PGCIL & ULDC charges for FY 2016-17 with 10% growth. The details of the PGCIL &

ULDC charges are as shown in the table below:

Page 54

2013-14 2014-15 2015-16 2016-17PGCIL (Rs. Crs.) 128.19 217.12 211.10 232.21

ULDC (Rs. Crs.) 5.90 6.89 9.71 10.68

4.6 SLDC Charges

The SLDC Charges have been adopted as per the tariff orders. The charges have been

apportioned based on load not eligible for open access and load eligible for open access. The

projected SLDC charges for 2015-16 are Rs. 21.05 Crs. and Rs.23 Crs. for 2016-17. For the

FY 2014-15, contracted demand of APSPDCL of six districts are considered for entire 12

months and contracted demand of newly added Anantapur &kunool districts are considered

for 10 months for computation of transmission charges. Contracted load of Anantapur

&kurnool districts is taken as 17.45% of contracted load of erstwhile APCPDCL.

Form – 1.2 SLDC Charges2013-14

Annual Fee Charges Total Cost

(Rs. Crs.)MW Tariff (Rs./MW/year)


(Rs./MW/month)Cost

(Rs. Crs.)

Load not eligible for Open Access3190.8

8 4755.66 1.52 3190.88 1406.08 5.38 6.90Open Access

Load Eligible for Open Access1388.4

5 4755.66 0.66 1388.45 1406.08 2.34 3.00Availed (within area of supply) 0.00 0.00 0.00Availed ( Outside Area of supply) 0.00 0.00 0.00

2014-15




(Rs./MW/month)Cost

(Rs. Crs.)


5 2535.65 1.05 4131.55 2378.11 11.79 12.84Open Access



2015-16




(Rs./MW/month)Cost

(Rs. Crs.)


4 3092.78 1.43 4624.44 2209.34 12.26 13.69Open Access

Load Eligible for Open Access 2485.9 3092.78 0.77 2485.99 2209.34 6.59 7.36

Page 55

9Availed (within area of supply) 0.00 0.00 0.00Availed ( Outside Area of supply) 0.00 0.00 0.00

2016-17




(Rs./MW/month)Cost

(Rs. Crs.)


2 3533.18 1.70 4806.22 2247.62 12.96 14.66Open Access



4.7 Distribution Costs (Rs. in Crores)

Year

Load not eligible for Open AccessOpen Access

TotalLoad Eligible for Open Access

MW Tariff (Rs./kW/month)


(Rs./kW/month)Cost

(Rs. Crs.)

1 2 3 4 5 6 7 8=4+7

2013-14 3617.05 1219.76 962.27 53.54 1273.302014-15 6350.00 1453.35 945.20 28.24 1481.60

2015-16 8054.18 2106.73 1034.90 46.50 2153.24

2016-17 9256.06 2332.71 1133.33 50.44 2383.14

The distribution cost as per the Tariff Orders are considered. For FY 2013-14, the

distribution cost of APSPDCL with six districts are considered. For FY 2014-15, the

distribution cost of APSPDCL with six districts and distribution cost of Anantapur &

Kurnool districts are considered for 10 months duly taking a proportion of distribution cost

of erstwhile APCPDCL (17.45% of 1996.63 Crs.) are considered for arriving distributin cost.

For FY 2015-16& FY 2016-17, the distribution cost of APSPDCL with six districts and for

Anantapur &kurnool districts a proportion of distribution cost of erstwhile APCPDCL

(17.45% of Rs.2215.69 Crs.) are considered for arriving total distribution cost.

4.8 Interest on Consumer Security Deposits

Interest on Security Deposit are calculated based on the past trend. The interest is

calculated @ 9.50% per annum for 2015-16 and 2016-17 on the average of opening and

closing balances. For previous year 2014-15 the actual average rate of interest is found to be

9.89% per annum.

Page 56

Form 1.5: The computation on Interest on Consumer Security Deposit is given below

Revenue Requirement Item (Rs. Crs.) 2013-14 2014-15 2015-16 2016-17A Opening Balance 1007.27 1118.07 1365.86 1626.04B Additions during the Year 187.05 359.28 377.24 396.11

C Deductions during the Year 76.25 111.49 117.06 122.92

D Closing Balance 1118.07 1365.86 1626.04 1899.23

E Average Balance ((A+D)/2) 1062.67 1241.97 1495.95 1762.63

F Interest @ % p.a. # 8.52 9.89 9.50 9.50

G Interest Cost (E*F) 90.53 122.83 142.12 167.45

As per APERC Regulation 6 of 2004 stipulates "Security Deposit amount shall be two months charges in

case of monthly billing and 3 months charges for bi-monthly billing".

....."The interest accruing to the credit of the consumer shall be adjusted annually against the amounts outstanding from the consumer to the Licensee as on 1st May of every year and the amounts becoming due from the consumer to the Licensee immediately thereafter."

In this regard, the Licensee would like to submit that the Power Purchase Cost contributes to nearly

80% of the total Retail ARR and certainty in projection of power purchase cost has become very critical.

Any deviation in power purchase cost has to be funded through internal sources and to be recovered in

subsequent years through ARR. On the other hand, Subsidy from government contributes to be more than

12% of the Retail ARR. This would mean that Discoms are effectively getting 2 months consumer

security deposit on 88% of retail ARR. While payments to generators is being done on a monthly basis,

the revenue cycle is nearly 2 months. Hence, the working capital requirement of the Distribution

Licensees has become difficult to manage in recent time and hence the Licensee requests the Hon'ble

Commission to increase the duration of Security Deposit from the current two month charges to 75 days

charges in case of monthly billing while continuing with 3 months charges for bi-monthly billing. This

would ensure the Working Capital Requirements of the Licensees are met.

4.9 Supply Margin

The licensee has projected Supply Margin for FY 2015-16 and FY 2016-17. The supply

margin for 2013-14, 2014-15, 2015-16 and 2016-17are as follows.

Form – 1.6 - Supply Margin Rs. in Crores

2013-14 2014-15 2015-16 2016-17

Page 57

Supply Margin Amount 12.33 12.12 13.13 13.00

4.10 Other Costs

The licensee has projected the following expenditure under other costs :

1) Amount payable towards DELP to M/s EESL, New Delhi

2) Amount payable towards solar pumpsets

DELP :The licensee with the approval of Honourable Commission is distributing 2 Nos. LED bulbs

in all the districts of its jurisdiction. In accordance with the approval of the Honourable

Commission, the licensee has projected the amounts payable to M/s EESL, New Delhi.

Solar pumpsetsThe licensee has erected 1000 Nos. solar pumpsets and planned to erect another 1000 Nos. in

the FY 2016-17. The consumer contribution is 11% of the project cost, the MNRE, Govt. of

India provides 33% of the project cost as subsidy and balance 56% is to be borne by the

licensee. The licensee has projected payment towards this project in FY 2016-17.

The other costs during FY 2015-16 & FY 2016-17are submitted below :

Particulars 2015-16 2016-17Payments to M/s.EESL towards DELP 38.12 50.13Solar pumpsets 11.38Total 38.12 61.51

4.11 Summary of ARR

Aggregate Revenue Requirement (ARR) for Retail Supply Business(Form-1)

Revenue Requirement Item (Rs. Crs.) 2013-14 2014-15 2015-16 2016-171 Transmission Cost 246.51 478.70 654.10 648.35

2 SLDC Cost 9.90 19.86 21.05 23.00

3 Distribution Cost 1,273.30 1,481.60 2,153.24 2,383.14

4 PGCIL Expenses 128.19 217.12 211.10 232.21

5 ULDC Charges 5.90 6.89 9.71 10.68

6 Network and SLDC Cost (1+2+3+4+5) 1,663.80 2,204.17 3,049.20 3,297.397 Power Purchase / Procurement Cost 7,663.14 12,217.29 13,468.63 15,380.80

Page 58

Revenue Requirement Item (Rs. Crs.) 2013-14 2014-15 2015-16 2016-178 Interest on Consumer Security Deposits 90.53 122.83 142.12 167.45

9 Supply Margin in Retail Supply Business 12.33 12.12 13.13 13.00

10 Other Costs, if any 0.00 0.00 38.12 61.51

11 Supply Cost (7+8+9+10) 7,765.99 12,352.24 13,662.00 15,622.7612 Aggregate Revenue Requirement (6+11) 9,429.79 14,556.41 16,711.20 18,920.15

5 Revenue Projections5.1 Sales Forecast

The factors affecting the actual consumption are numerous and often beyond the

control of the licensee due to factors such as Government Policy, economic climate, weather

conditions and force majeure events like natural disasters. Therefore, an accurate point-

estimate of the consumption (sales by licensee) is not possible. Under such a situation, the

attempt is to look into various factors and estimate the interrelationships to arrive at a

reasonably accurate forecast within a range and use a single point-estimate within the range

for the limited purpose of estimating future costs / revenues. The actual sales for FY 2009-10

to FY 2014-15 are given below :

Category 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Actual sales in MU

LT Category 9968.21 9716.43 10951.15

11223.49

12181.94 17262.87

Domestic 3605.65 3861.84 4121.19 4221.00 4428.14 5946.78

Non-domestic/Commercial 850.52 901.31 986.59 983.56 977.02 1314.61

Industrial 740.82 796.76 989.83 965.28 866.11 1380.24

Cottage Industries, Dhobighats& Others 24.52 25.01 24.42 22.17 21.58 32.32

Irrig& Agriculture 4167.82 3664.49 4366.34 4587.91 5513.46 8006.78

Local Bodies, St. Lighting & PWS 533.87 419.62 412.35 394.51 327.53 489.42

General Purpose 43.69 46.87 49.02 48.47 47.13 77.14

Temporary Supply 1.31 0.55 1.40 0.59 0.96 15.57

HT Category 3729.07 4724.81 5437.06 5221.36 5842.52 9098.66HT I : General 2600.28 3530.74 4115.62 3889.21 4412.70 6932.50HT II: Others 328.43 352.45 379.60 422.86 446.79 553.31HT III: Airports, Bus Stations and Railway Stations 0.00 0.00 0.00 1.28 8.56 17.87

Page 59

HT IV Government LIS & Agl. 29.37 27.45 61.31 36.27 48.69 528.35HT V: Railway Traction 522.15 521.40 569.54 609.65 646.15 747.84HT VI: Townships & Residential Colonies 48.60 51.03 35.47 27.35 22.16 34.48HT VII: Green Power 0.00 0.00 0.00 0.00 0.00 0.00HT VIII: Temporary 0.80 0.00 0.00 0.00 0.08 0.00Category: RESCOs 199.44 241.74 275.53 234.74 257.40 284.31

Total (LT+HT) 13697.27 14441.24 16388.21

16444.85

18024.46 26361.53

Trend Method

This method is a non-causal model of demand forecasting which assumes that the underlying

factors, which drive the demand for electricity, are expected to follow the same trend as in

the past and hence the forecast for electricity is also based on the assumption that the past

trend in consumption of electricity will continue in the future. The strength of this method,

when used with balanced judgment, lies in its ability to reflect recent changes and therefore

is probably best suited for a short-term projection as used for the ARR/ Tariff filing.

However, the trend-based approach has to be adjusted for judgment on the characteristics of

the specific consumer groups/ categories. For example, while this method may provide a

better estimate of consumption by the domestic and commercial categories of consumers, it

may not be very suitable for the industrial category because of the high dependence of

demand on the end-use and also on the macroeconomic variables.

In any case, the forecasts arrived at by using the trend method need to be modified for impact

of any other considerations like increasing commercialization/ development in certain

districts/ regions to incorporate the impact of econometric variables and the load reliefs

issued in the past. The Licensee has projected the category –wise sales based on the modified

trend approach. Sales Forecast for the ensuing year has been developed based primarily on

analysis of historic data for the period FY 2009-10 to H1 of FY 2015-16. The following

inputs have been taken to arrive at sales consumption for H2 of FY 15-16 and FY 2016-17.

Actual sales (6 districts + Anantapur & Kurnool) captured from FY 2009-10 to FY

2014-15

CAGR computed for historical sales for FY 2009-10 to FY 2014-15

Actual sales (6 districts + Anantapur & Kurnool) captured for FY 2015-16 H1

Page 60

Sales projected for FY 2015-16 H2 using CAGR as growth rate over FY 2014-15 H2

actual sales (except for LT Agriculture where growth rate is linked to the growth in

connections)

CAGR computed for actual sales from FY 2009-10 to FY 2015-16

Growth rate used on FY 2015-16 projected sales to forecast sales for FY 2016-17

Additional loads for Lift irrigation schemes etc., added for projecting FY 2015-16&

FY 2016-17 restricted sales

Load restrictions captured for FY 2014-15 H1& H2 and FY 15-16 H1

Load shifting has been considered for modifying historical load restrictions

No Load restrictions are expected in H2 FY 2015-16&FY 2016-17

Hence, sales for FY 2015-16 (H1 FY 2015-16 actuals and H2 FY 2015-16

projections) and FY 2016-17 projected after considering additional loads & LRs on

actual sales

From June, 2014 onwards the actual / projected figures are pertains to entire 8

districts of APSPDCL (including newly added Anantapur &Kurnool districts). The sales

growth rates are considered based on the present year and previous year figures both pertains

to entire 8 districts of APSPDCL. The growth rate for each category is calculated with

respect to sales of 8 districts for FY 2014-15,FY 2015-16 &FY 2016-17.

5.1.1 LT Sales forecast

Sales Forecast for FY 2016-17 has been developed based primarily on analysis of

historic data for the period FY 2009-10 to FY 2015-16. The ARR for the retail supply

business is being filed for the FY 2016-17. The Licensee submits the following forecasts of

energy sales (in million units) as part of the current application to the Hon’ble Commission.

For the FY 2014-15, the sales pertain to Anantapur & Kurnool districts are considered from

2nd June, 2014.

Page 61

5.1.2 LT Cat-I: Domestic Supply

The consumption of power by the domestic category was 5946.78 MU in the year

2014-15 consisting of 2903.37 MU in the first half and 3043.72 MU in the second half of the

year.

The consumption of power by the domestic category in the first half of the 2015-16 is

3703.11 MU. For the year 2015-16, APSPDCL has estimated the power consumption by the

domestic category at 7099.72 MU, taking into account actual sales till September 2015. The

sales forecast for FY 2015-16 has been done for the months October to March 2016 by

projecting an appropriate growth rate over the sales (6 districts and Anantapur & Kurnool) of

the corresponding months of FY 2014-15 and adding the load relief quantum. The sales so

arrived shall reflect the unrestricted sales (sales projected such that there would be no load

shedding). The sales for second half of FY 2015-16 for this category will be 3396.62 MU.

For the year 2016-17, the licensee has projected sales using an appropriate growth

rate over 2015-16 projected sales (6 districts and Anantapur & Kurnool. The licensee has

projected the unrestricted sales for FY 2016-17, as it would like to plan no load restriction

measures for FY 2016-17. The unrestricted sales projected for FY 2016-17 for this category

is 7953.09MU. The growth rate of sales for 8 districts (6 districts and Anantapur & Kurnool)

for FY 2015-16 over FY 2014-15 is 15.76% and for FY 2016-17 over FY 2015-16 is

12.02%.

LT Cat-I 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17Actuals Projections

MUs 3605.65 3861.84 4121.19 4221.00 4428.14 5946.78 7099.72 7953.09

Page 62

% Growth 7.11% 6.72% 2.42% 4.91% 12.82% 15.76% 12.02%

5.1.3 LT Cat-II: Non-Domestic / Commercial Supply

The consumption of power by the non-domestic category was 1314.61 MU in the year

2014-15 consisting of 637.75 MU in the first half and 676.85 MU in the second half of the

year.

APSPDCL is experiencing an increase in the commercial activity thus necessitating

an increase in the release of new services as well as higher levels of specific consumption by

these commercial establishments. For 2015-16, the first half sales are 813.51 MU. The sales

forecast for FY 2015-16 has been done for the months October to March 2016 by projecting

an appropriate growth rate over the sales (6 districts and Anantapur & Kurnool) of the

corresponding months of FY 2014-15 and adding the load relief quantum. The sales so

arrived shall reflect the unrestricted sales. The sales for second half of FY 2014-15 for this

category are 771.66 MU. SPDCL has projected the sales for entire 2015-16 at 1585.17MU

For the year 2016-17, the licensee has added a moderate growth rate of 11.23 % has been

used to project the sales for FY 2016-17. The licensee has projected the unrestricted sales for

FY 2016-17, as it would like to plan considering no load-shedding for FY 2016-17. The sales

projected for FY 2016-17 for this category is 1763.12 MU. The growth rate of sales for 8

districts (6 districts and Anantapur & Kurnool) for FY 2015-16 over FY 2014-15 is 16.53%

and for FY 2016-17 over FY 2015-16 is 11.23%.

LT Cat-II2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Actuals ProjectionsMUs 850.52 901.31 986.59 983.56 977.02 1314.61 1585.17 1763.12

% Growth 5.97% 9.46% -0.31% -0.67% 11.38% 16.53% 11.23%

Page 63

5.1.4 LT Cat-III: Industrial Supply

The consumption of power by the category is 643.04 MU in 2014-15 consisting of

737.19 MU in the first half and 1380.24 MU in the second half of the year.

During the year 2015-16, APSPDCL has achieved sales of 791 MU in the first half.

The sales forecast for FY 2015-16 has been done for the months October to March 2016 by


the corresponding months of FY 2014-15. Load relief quantities of corresponding months

are added to arrive unrestricted sales projections. The sales so arrived shall reflect the

unrestricted sales (sales projected such that there would be no load shedding). The sales for

second half of FY 2015-16 for this category is805.78 MU. The overall sales for 2015-16 are

likely to be around 1596.78 MU. For projecting sales of FY 2016-17, the Company has

added a growth rate of 13.57% over FY 2015-16 sales. No load reliefis expected in the FY

2016-17. The licensee has projected the sales for this category as 1813.53 MU.The growth

rate of sales for 8 districts (6 districts and Anantapur & Kurnool) for FY 2015-16 over FY

2014-15 is 11.85% and for FY 2016-17 over FY 2015-16 is 13.57%.

LT Cat-III2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


% Growth 7.55% 24.23% -2.48% -10.27% 27.67% 11.85% 13.57%

5.1.5 LT-IV - Cottage Industries &Dhobighats etc.,

The consumption of power by this category is 32.32 MU in 2014-15 consisting of


Page 64

The sales in this category during first half of 2015-16 is 18.56 MU. The sales forecast

for FY 2015-16 has been done for the months October to March 2016 by projecting an

appropriate growth rate over the sales (6 districts and Anantapur & Kurnool) of the

corresponding months of FY 2014-15. Load relief quantities of corresponding months are

added to arrive unrestricted sales projections. The sales so arrived shall reflect the

unrestricted sales (sales projected such that there would be no load shedding). The sales for

second half of FY 2015-16 for this category are 19.61 MU. For the year 2016-17, the

licensee has projected unrestricted sales using an appropriate growth rate over 2015-16

projected sales to arrive at 2016-17 unrestricted sales. Growth rate of 2015-16 unrestricted

sales over 2015-16 revised sales is 8.77%.The licensee has projected the unrestricted sales

for FY 2016-17 for this category is 41.52 MU.The growth rate of sales for 8 districts (6

districts and Anantapur & Kurnool) for FY 2015-16 over FY 2014-15 is 12.37% and for FY

2016-17 over FY 2015-16 is 8.77%.

LT Cat-IV2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


% Growth 1.96% -2.33% -9.24% -2.62% 13.74% 12.37% 8.77%

5.1.6 LT-V - Agriculture

a) The Licensed area of APSPDCL covers eight Districts after bifurcation of AP state.

Farmers in these eight Districts largely depend on lifting of ground water for their

irrigation needs. The Energy Demand has been growing consistently over the past

years. Usually, two crops are grown in a year and in some areas where plenty of water

is available, particularly in Krishna and Guntur districts & part of other districts, third

crop is also grown. Among all the crops, Paddy is the most preferred crop being

grown in all the eight Districts resulting in high Energy Demand on Irrigation. In

recent years, depth of water table is increased, resulting in increase in the Energy

demand.

Page 65

b) Large no. of the pump sets under usage are of not as per standard specifications and

such pump sets draw more Energy. Also the farmers are replacing the old pump sets

with higher capacity pump sets whenever the depth of water table increases.

c) The Government of Andhra Pradesh declared a modified agriculture policy in

January 2005 aimed towards incentivizing Demand side management in the

agriculture sector. One of the key features of the policy is to install Capacitors for all

the existing pump sets. So far, 89.63%8of the existing pump sets as on 30.11.2015 are

provided with Capacitors by the consumers. The licensee is taking all necessary steps

to provide Capacitors for the balance pump sets also.

d) There are 8,20,732 Nos. agricultural services in the licensee’s area as on 31-03-2014.

Due to inclusion of Anantapur & Kurnool districts 3,17,152 Nos. agricultural services

are added on 02-06-2014. During FY 2014-15, 54,011 Nos. of new agricultural

connection are added, thus resulting in total no.of agricultural connections increased

to 11,91,895 Nos. as on 31-03-2015. During FY 2015-16, the licensee has planned to

release 87,600 Nos. agricultural connections, out of which 45,989 Nos. are released

upto November, 2015. By this addition of new connections, the total no.of

agricultural connections in the licensee area will be 12,79,495 Nos. at end of FY

2015-16. Further, the licensee projects 50,000 Nos. new agricultural connections

during FY 2016-17. The circle wise break up of no.of agricultural connections

existing, added and projections for FY 2014-15 to FY FY 2016-17 are furnished in

the table below:

No.of agricultural services in APSPDCL

S.No CircleExisting as

on 31-03-14

Added during 2014-15

Existing as on

31-03-15

Added during 2015-16 (Proj.)

Existing as on

31-03-16 (Proj.)


Existing as on

31-03-17 (Proj.)

1 Vijayawada 84306 3905 88211 8500 94694 4852 995462 Guntur 80614 4457 85071 7500 91323 4281 956043 Ongole 127431 9110 136541 15400 146576 8790 1553664 Nellore 137086 8311 145397 4900 156083 2797 1588805 Tirupati 260329 5499 265828 4600 285366 2626 287992

Page 66

6 Kadapa 130966 6821 137787 5100 147914 2911 1508257 Anantapur 205724 205724 29600 220844 16894 2377388 Kurnool 127336 127336 12000 136695 6849 143544

APSPDCL 820732 371163 1191895 87600 1279495 50000 1329495

e) The majority of the agricultural connections are with bore wells. Hence, the average

capacity of the pump-sets are increasing at every year. The connected load details of

agricultural connections are furnished in the below table:

Connected load (HP) of agricultural services in APSPDCL

S.No CircleExisting as

on 31-03-14

Added during 2014-15

Existing as on

31-03-15


Existing as on

31-03-16 (Proj.)


Existing as on

31-03-17 (Proj.)

1 Vijayawada 462495 21393 483887 34000 517887 43865 5617522 Guntur 382588 21123 403711 30000 433711 34702 4684133 Ongole 671975 47973 719948 77000 796948 73056 8700044 Nellore 636395 38529 674924 19600 694524 35426 7299505 Tirupati 1471976 31049 1503025 18400 1521425 63597 15850226 Kadapa 875405 45530 920935 20400 941335 49931 9912657 Anantapur 973075 973075 115154 1088228 116992 12052208 Kurnool 524952 524952 48000 572952 47320 620272

APSPDCL 4500834 1703622 6204456 362554 6567009 464889 7031898

f) Methods adopted for agricultural sales estimation :

Sales estimation are being done following the agreed methodology. As per the

directions of the Honourable Commission, the licensee has implemented “ISI

methodology agricultural sales estimation”. The following are the details of

meters fixed in connection with the new methodology.

Meters fixed to DTRsS.No Circle No.of meters fixed

1 Vijayawada 3172 Guntur 3143 Ongole 4514 Nellore 3955 Tirupati 10746 Kadapa 07 Anantapur 4758 Kurnool 285

APSPDCL 3311

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For Anantapur & Kurnool circles, sales estimations are being done based on ISI

methodology from FY 2014-15.

For Vijayawada, Guntur, Ongole, Nellore & Tirupati circles, the sales estimations

are being done based on ISI methodology from June, 2015.

Fixing of meters in Kadapa circle is under progress and sales estimation using ISI

methodology will be done from next financial year.

g) And hence, the sales estimates furnished in this chapter is based on ISI methodology

for the areas provided with connected meters (from the date of fixing) and for

remaining periods the sales estimations are based on the earlier agreed methodology.

Hence, the licensee humbly requests the Honourable Commission to approve

agricultural sales estimations made hereunder.

h) Initiatives of the licensee to control agricultural sales in line with Tariff Order :

The licensee has took all possible measures to control agricultural sales within the

limits of Tariff Order. The following initiatives are taken in this regard.

Strict implementation of 7 Hrs. supply-a-day.

Anti pilferage measures.

APSPDCL has taken Demand side management measures with publicity through

handouts, electronic media etc., to the farmers to install energy efficient pump

sets, required rating of capacitors, HDPE pipe lines at suction and delivery and

frictionless foot-valves to save energy and to avail subsidized tariff.

Wide publicity is being given among the consumers on installation of capacitors

With the initiatives of MNRE, Govt. of India, erection of solar pump sets project

has been under taken at a large scale. PFCGEL is acting as financial agency,

MNRE is giving 33% as subsidy, the consumer is contributing 11% and balance

56% is to be borne by the licensee. So far, 1032 Nos. (3HP : 13Nos and 5HP :

1019 Nos.) solar pump sets were commissioned at the end of November, 2015.

Page 68

Agreement entered with M/s EESL, New Delhi for conducting survey and

preparation of DPR at Hindupurmandal of Anantapur district for AgDSM project

(for replacement of existing old inefficient pump sets with ISI pump sets). Survey

work is under progress.

HVDS :The APSPDCL has taken to convert existing LT network in to HVDS for

all agricultural connections. Majority of services in the districts of Vijayawada,

Guntur, Prakasam, Nellore, Tirupati& Kadapa are already provided supply with

HVDS. Schemes were prepared and are in process for completion balance works

in the above said six districts and also cover all the services in Anantapur &

Kurnool districts.

i) Factors for increased agricultural sales :

The following factors are expected for the increased agricultural sales in the licensee

area.

Due to increase in depth of water table, some of the farmers replaced existing

pump sets resulting in increased energy demand.

Many unauthorized additional loads are existing and pilferage cases are also

noticed in the agricultural sector. All necessary steps are being carried out to

regularize such cases or appropriate actions are being taken.

Releasing of agricultural services at a large number due to increasing demand for

new services.

Low rainfall in majority of the districts and low water levels in the projects.

j) Sales estimates with ISI methodology for Anantapur & Kurnool districts :

As stated above, sales estimates in respect of Anantapur & Kurnool circles are being

done with ISI methodology. The sales estimations for FY 2014-15, H1 of FY 2015-16

and projections for H2 of FY 2015-16 & FY 2016-17 are furnished below:

Page 69

Details of DTRs existing and computation of sales per DTR :

Details of DTRs existing and computation of sales per DTR :

DTRs Population for FY 2014-15

S.No Circle Apr-14 May-14 Jun-14 Jul-14 Aug-

14Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

1 Anantapur 32995 32995 33317 33442 33565 33790 34084 34461 35054 391252 Kurnool 19085 19085 19566 19596 19619 19683 19801 20010 20139 22537 Total 52080 52080 52883 53038 53184 53473 53885 54471 55193 61662

DTRs Population for FY 2015-16S.N

o Circle Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

1 Anantapur 39594 40139 40602 41000 41403 41725 41993 2 Kurnool 22798 22798 22798 22798 23266 23414 23540 Total 62392 62937 63400 63798 64669 65139 65533 0 0 0 0 0

k) Sales estimation for other six districts for FY 2014-15, FY 2015-16 & FY 2016-17

i) For FY 2014-15 & FY 2015-16 (upto May’15, as estimation based on ISI

methodology started from the month of June, 2015), the Licensee has assessed the

agricultural consumption for six Districts i.eVijayawada, Guntur, Ongole,

Nellore, Chittoor and Kadapa based on readings of the meters provided on LV

side of the Distribution Transformers feeding agricultural loads exclusively. The

Licensee has done most of the representative sampling covering the existing 310

Page 70

mandals of above six Districts. The sampled pump sets, under valid metered

DTRs, comprise about 1.61% of total existing pump set population in the 6 districts

of APSPDCL. 12 months common valid readings are available for 461 nos. DTRs.

ii) The following procedure is adopted for assessing agricultural consumption:

Meter readings are collected every month from the field for the metered DTRs

feeding agricultural loads, exclusively, in the prescribed extended electronic

format T.F.2.10 that has 27 columns.

The recorded kWh per month is computed by taking the difference of the present

meter reading and the previous meter reading. The net consumption (kWhNT) is

calculated by deducting the line loss from recorded kWh (kWhNT total /

Consumption).

The kWhNT consumption of all the valid metered DTRs is summed up for each

of the mandals.

Based on the HP capacity under each valid DTR in a mandal, the total valid HP in

each of the mandals is arrived at.

The consumption per HP is computed for each of the mandal by dividing the total

kWhNT in a mandal with valid HP of the mandal.

Based on the total number of pump sets and their capacity (which is available in

the master list for each of the mandal), the total mandal wise consumption

estimate is arrived at by multiplying the capacity with per HP consumption of that

mandal.

By adding together the consumption estimates of the various mandals, the total

consumption for the district is arrived at. The summation of consumption figures

for all the districts leads to the company’s consumption estimate.

Such consumption estimates have been arrived based on the total valid

meter readings received from the field and employing connected load at

respective periods.

Page 71

Since the fixing of meters in Kadapa circle is under progress, the sales

estimation for this circle for FY 2014-15 and H1 of 2015-16 are estimated

based on the above said procedure using valid DTR LV side meter readings.

iii) Sales estimation based on ISI methodology :

Sales estimations are made based on ISI methodology from June, 2015 in

respect of Krishna, Guntur, Prakasam, Nellore & Chittoor districts.

iv) For FY 2015-16 (H2) & FY 2016-17, sales projections are made based on the

historical sales, considering new services released / to be released and

anticipated seasonal changes.

v) The actual sales estimated and projections made as discussed in the above

paras (i), (ii) & (iii) are furnished in the below tables.

Page 72

Paying category services consumption Paying category services consumption

Existing services as on

01-4-14

Existing connected load as on 01-04-14

consumption in Mus during FY

2014-15

Consumption per HP in units

Per Month Per Year30591 163458.16 159.51 81.32 975.86

The above sales are included in the sales estimation made in the earlier para.

The following issues were considered while projecting agricultural consumption for FY

2015-16 and for the next year 2016-17:

The consumption of power by the category is 8006.78 MU in 2014-15 consisting of


While the consumption during 2014-15 H2 is higher than that of H1, the same trend is

expected to continue in second half of 2015-16. The Agricultural consumption during H2

of 2015-16 is expected to be higher than H1 and is estimated at 4679.85 MU.

Growth in agriculture restricted sales are linked to the growth rate in agriculture

connections as mentioned above. The licensee is projecting 3.91% growth in sales for FY

2016-17 over the total sales for FY 2014-15. The licensee is confident that the growth-rate

Page 73

projected would take care of the increase in specific consumption, consumption increase

because of new services to be released in 2016-17

LT Cat-V2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2016-17

Actuals Projections (7Hrs.) 9 Hrs.

MUs 4167.82 3664.49 4366.34 4587.91 5513.46 8006.78 8392.70 8720.67 11,212.28% Growth -12.08% 19.15% 5.07% 20.17% 4.12% 0.63% 3.91% 33.60%

The licensee has assumed 7 hours of supply to agricultural consumers, in its projections,

considering the present power supply situation in the state.

5.1.7 LT Category- VI: Local bodies, Street lighting and public waterworks

The consumption of power by the category is 489.42 MU in 2014-15 consisting of 232.77

MU in the first half and 256.65 MU in the second half of the year.

The Consumption of street light and public water works in the first half of 2015-16 is

264.43 MU. The sales forecast for FY 2015-16 has been done for the months October to

March 2016 by projecting an appropriate growth rate over the sales (6 districts and

Anantapur & Kurnool) of the corresponding months of FY 2014-15. Load relief quantities

of corresponding months are added to arrive unrestricted sales projections. The sales so


category is 262.16MU. For the year 2016-17, the Licensee has added a moderate growth rate

of 2.06% to project the sales for FY 2016-17. The sales projected for FY 2016-17 for this

category is 537.42 MU.The growth rate of sales for 8 districts (6 districts and Anantapur &

Kurnool) for FY 2015-16 over FY 2014-15 is 1.84% and for FY 2016-17 over FY 2015-16 is

2.06%.

LT Cat-VI2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


% Growth -21.40% -1.73% -4.33% -16.98% 5.13% 1.84% 2.06%

Page 74

5.1.8 LT Category VII : General purpose

The consumption of power by the category was 77.14 MU in 2014-15 consisting of 34.49

MU in the first half and 42.65 MU in the second half of the year.

The Consumption of general purpose category in the first half of 2015-16 is 44.37 MU. The

sales forecast for FY 2015-16 has been done for the months October to March 2016 by


the corresponding months of FY 2014-15 and adding the load relief quantum. The sales so

arrived shall reflect the unrestricted sales (sales projected such that there would be no load

shedding). The sales for second half of FY 2015-16 for this category are45.15 MU. For the

year 2016-17, the licensee has projected sales using an appropriate growth rate over 2015-16

restricted sales. Growth rate of 2016-17 unrestricted sales over 2015-16 projected sales is

8.41%. The licensee has projected the unrestricted sales for FY 2016-17 for this category is

97.05 MU. The growth rate of sales for 8 districts (6 districts and Anantapur & Kurnool) for

FY 2015-16 over FY 2014-15 is 9.90% and for FY 2016-17 over FY 2015-16 is 8.41%.

LT Cat-VII2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


% Growth 7.28% 4.59% -1.12% -2.77% 15.87% 9.90% 8.41%

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HT sales forecast

Details of the trends envisaged for key categories are discussed in the following sections.

5.1.9 HT Cat-I – Industrial

The consumption of power by the HT-Industrial category is 6932.50 MU in 2014-15

consisting of 3282.95 MU in the first half and 3649.54 MU in the second half of the year.

The consumption of power by the HT-Industrial category in the first half of the 2015-

16 is 3707.31 MU. The sales forecast for FY 2015-16 has been done for the months

October’15 to March 2016 by projecting an appropriate growth rate over the sales (6 districts

and Anantapur & Kurnool) of the corresponding months of FY 2014-15 and adding the load

relief units. The sales so arrived shall reflect the unrestricted sales. The sales for second half

of FY 2015-16 for this category is 4111.28 MU. For the year 2016-17, the licensee has

projected sales using an appropriate growth rate over 2015-16 projected. The licensee has

projected sales for this category is 8914.53 MU.The growth rate of sales for 8 districts (6


2016-17 over FY 2015-16 is 14.02%.

HT Cat-I2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Actuals Projections11 KV 716.78 849.31 843.68 800.39 1036.54 1415.43 1562.58 1804.4033 KV 1236.78 1769.39 2020.60 1909.48 2056.20 3119.20 3572.32 4059.34

132 KV 646.72 912.04 1251.34 1179.34 1319.95 2397.88 2683.69 3050.79Total Sales 2600.28 3530.74 4115.62 3889.21 4412.70 6932.50 7818.59 8914.53% Growth 35.78% 16.57% -5.50% 13.46% 18.10% 8.21% 14.02%

5.1.10 HT Cat-II: Non-Industrial (Others)

Page 76

The consumption of power by the HT Non-Industrial category was 553.31 MU in the

year 2014-15 consisting of 280.53 MU in the first half and 272.79 MU in the second half of

the year.

The consumption for the category is 347.51 MU in the first half of the 2015-16. The sales

forecast for FY 2015-16 has been done for the months October’15 to March 2016 by

projecting an appropriate growth rate over the sales (6 districts and Anantapur & Kurnool)

of the corresponding months of FY 2014-15 and adding the load relief units. The sales so


category is 307.68 MU. For the year 2016-17, the licensee has projected sales using an

appropriate growth rate over 2015-16 projected. Growth rate of 2016-17 unrestricted sales

over 2015-16 revised sales is 15.12%. The licensee has projected the unrestricted sales for

FY 2016-17, considering no load restriction measures for FY 2016-17. The sales projected

for FY 2016-17 for this category is 754.27 MU.The growth rate of sales for 8 districts (6


2016-17 over FY 2015-16 is 15.12%.

HT Cat-II2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


132 KV 0.00 0.00 0.00 3.96 10.43 16.75 22.09 25.40Total Sales 328.43 352.45 379.60 422.86 446.79 553.31 655.19 754.27% Growth 7.31% 7.70% 11.40% 5.66% 12.13% 16.67% 15.12%

5.1.11 HT III: Airports, Bus Stations and Railway Stations:

Page 77

The sales projections for this category of consumers are given below for FY 2015-16

and FY 2016-17.

Aviation2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Actuals Projections11 KV 0.00 0.00 0.00 1.28 8.56 17.87 21.57 23.69

% Growth 567.27% 78.33% 10.22% 9.81%

5.1.12 HT Cat-IV: Irrigation & Agriculture

The consumption of power by the HT Irrigation & Agriculture category was 528.35

MU in 2014-15 consisting of 59.56 MU in the first half and 468.79 MU in the second half of

the year.

The consumption for the category is 64.23 MU in the first half of the 2015-16.

APSPDCL projects 470.13 MU in the second half for the 2015-16. The Licensee has collected

the likely commissioning dates of the upcoming lift irrigation schemes in consultation with

irrigation department and projected the sales for FY2016-17. In APSPDCL, the following are

major State Government Lift Irrigation Schemes are expected to be operational.

Page 78

Accordingly, APSPDCL is projecting a sale of 1973.91 MU during 2016-17. The growth rate

of sales for 8 districts (6 districts and Anantapur & Kurnool) for FY 2015-16 over FY 2014-

15 is -5.42% and for FY 2016-17 over FY 2015-16 is 269.39%.

HT Cat-IV2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


132 KV 0.00 0.00 0.00 0.00 0.00 328.13 309.28 1737.17Total Sales 29.37 27.45 61.31 36.27 48.69 528.35 534.36 1973.91% Growth -6.52% 123.33% -40.84% 34.25% 58.47% -5.42% 269.39%

5.1.13 HT Cat-V: Railway traction

The consumption of power by this category was 747.84 MU in FY 2014-15 consisting

of 370.21 MU in the first half and 377.63 MU in the second half of the year.

For 2015-16, the consumption for the first half is 354.99 MU and APSPDCL has

projected consumption of 413.80 MU for the second half. The overall consumption for the

2015-16 is 768.79MU.

The projected consumption for the 2016-17 is 830.88 MU. The growth rate of sales for

8 districts (6 districts and Anantapur & Kurnool) for FY 2015-16 over FY 2014-15 is 2.28%

and for FY 2016-17 over FY 2015-16 is 8.08%.

HT Cat-V2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


% Growth -0.14% 9.23% 7.04% 5.99% 15.31% 2.28% 8.08%

Page 79

5.1.14 HT Cat-VI: Townships and Residential Colonies

The consumption of power by this category was 34.48 MU in the 2014-15 consisting of


For 2015-16, the consumption for the first half is 21.26 MU and APSPDCL has

projected a consumption of 18.52 MU for the second half as the consumption of this

category. APSPDCL is projecting an expected growth rate of 5.03 % for FY 2016-17

resulting in 41.77MU(unrestricted sales).The growth rate of sales for 8 districts (6 districts

and Anantapur & Kurnool) for FY 2015-16 over FY 2014-15 is 5.71% and for FY 2016-17

over FY 2015-16 is 5.03%.

HT Cat-VI2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


132 KV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total Sales 48.60 51.03 35.47 27.35 22.16 34.48 39.77 41.77% Growth 5.01% -30.51% -22.89% -18.97% -9.45% 5.71% 5.03%

5.1.15 HT Cat-VIII : RESCOs

The consumption of power by this category was 284.31 MU in 2014-15 consisting of


For the year 2015-16, APSPDCL has projected increase in consumption to 301.96 MU, out

of which the first half sales accounts for 139.51 MU. The projected consumption for 2016-17

is 328.40 MU. The growth rate of sales for 8 districts (6 districts and Anantapur & Kurnool)

for FY 2015-16 over FY 2014-15 is 6.21% and for FY 2016-17 over FY 2015-16 is 8.76%.

Resco2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17


% Growth 21.21% 13.98% -14.80% 9.65% 10.45% 6.21% 8.76%

Page 80

Sales Forecast category wise and Voltage level wise (Form – 3) Sales in MU

Category 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

2015-16

(Proj.)

2016-17

(Proj.)

Actuals

LT Category 9968.21 9716.43 10951.15 11223.49 12181.9417262.8

719344.29 20942.05

Domestic 3605.65 3861.84 4121.19 4221.00 4428.14 5946.78 7099.72 7953.09

Non-domestic/Commercial 850.52 901.31 986.59 983.56 977.02 1314.61 1585.17 1763.12

Industrial 740.82 796.76 989.83 965.28 866.11 1380.24 1596.78 1813.53

Cottage Industries, Dhobighats& Others 24.52 25.01 24.42 22.17 21.58 32.32 38.17 41.52

Irrig& Agriculture 4167.82 3664.49 4366.34 4587.91 5513.46 8006.78 8392.70 8720.67

Local Bodies, St. Lighting & PWS 533.87 419.62 412.35 394.51 327.53 489.42 526.59 537.42

General Purpose 43.69 46.87 49.02 48.47 47.13 77.14 89.52 97.05

Temporary Supply 1.31 0.55 1.40 0.59 0.96 15.57 15.65 15.65

HT Category at 11 kv 1280.22 1473.82 1540.02 1440.86 1730.18 2343.35 2606.44 2968.30

HT I (A): General 695.90 727.84 702.16 690.10 875.16 1146.52 1251.79 1448.03

Lights and Fans 17.04 20.58 8.02 1.67 1.89 31.67 39.76 45.36

Industrial Colonies 1.16 1.56 1.76 2.33 1.40 2.50 2.61 2.89

Seasonal Industries 0.00 23.12 24.45 36.06 40.95 59.05 65.03 72.83

Time of Day Tariffs (6 PM to 10 PM) 0.00 76.21 107.29 70.24 117.14 175.69 203.40 235.28

HT I (B): Ferro Alloy Units 2.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00

HT II: Others 292.89 311.54 335.93 292.28 304.15 377.31 447.77 514.95


HT III: Aviation & Stations 0.00 0.00 0.00 1.28 7.22 14.59 17.32 19.05


Page 81

Category 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

2015-16

(Proj.)

2016-17

(Proj.)

HT IV Government LIS 22.76 17.26 40.41 19.32 27.09 88.38 86.60 86.65

HT IV Agriculture 0.00 0.54 9.79 0.31 0.00 23.95 17.55 17.90

HT IV CPWS 0.00 2.39 0.69 10.10 16.23 24.75 39.75 47.41

HT VI: Townships & Residential Colonies 47.55 51.03 33.99 26.53 21.39 33.04 37.80 39.60

HT VII: Green Power 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

HT VIII: Temporary 0.80 0.00 0.00 0.00 0.08 0.00 0.00 0.00

Category: RESCOs 199.44 241.74 275.53 234.74 257.40 284.31 301.96 328.40

HT Category at 33 kv 1279.98 1817.55 2076.16 1987.56 2135.81 3264.72 3749.95 4254.90

HT I (A): General 1179.48 1482.15 1625.99 1652.33 1728.35 2405.91 2766.85 3154.29

Lights and Fans 5.65 6.21 3.01 0.60 0.48 32.09 40.59 46.27





HT II: Others 35.54 40.91 43.67 60.83 62.18 67.62 77.72 89.48






HT IV CPWS 0.00 0.72 0.00 0.95 0.00 15.25 32.02 35.40




Page 82

Category

2009-10 2010-11 2011-12 2012-13 2013-14 2014-152015-16

(Proj.)

2016-17

(Proj.)

Category: RESCOs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

HT Category at 132 kv 1168.87 1433.44 1820.88 1792.94 1976.53 3490.59 3783.85 5644.24

HT I (A): General 640.23 825.77 1109.07 1036.33 1107.02 1914.08 2112.03 2407.78

Lights and Fans 0.82 2.13 0.58 0.81 0.50 15.41 24.78 28.25





HT II: Others 0.00 0.00 0.00 3.42 8.85 14.25 18.78 21.60






HT IV CPWS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

HT V: Railway Traction 522.15 521.40 569.54 609.65 646.15 747.84 768.79 830.88




Category: RESCOs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total (LT + HT) 13697.27 14441.24 16388.21 16444.85 18024.4626361.5

329484.53 33809.49

Page 83

5.2 Revenue from Current Tariffs

The computation of revenue at current tariff for FY 2015-16 and FY 2016-17 for each

customer category is carried out as follows:

Revenue from Tariffs = Energy Estimate * Approved Energy Charges … ……………………..……….. (a)+ Demand Estimate * Approved Demand Charges …….……………………..... (b)+ Incremental Revenue on account of Monthly Minimum Charges (‘MMC’) … (c) + Customer Charges (d)+ Other Charges ----- (e)

Energy charges:

For customer categories having telescopic energy tariffs, the energy estimates have been

apportioned into the slabs and then have been multiplied with the corresponding slab tariff.

The apportionment has been based on the historical break up of telescopic consumption into

the various slabs as captured in the billing information database. The energy charges are

calculated as per the billing parameters i.e., KWH and KVAH for the category and the

existing tariff rates of that category

Demand/Fixed Charges: The estimate of demand has been made in “HP” or in “MVA” as

the case maybe. Billing demand has been assumed to grow in proportion to the growth of Page 84

sales in FY 2016-17. Additional demand due to additional load has been added to arrive at

final demand for the year FY 2016-17.

Monthly Minimum charges (MMC): The ‘incremental’ revenue due to MMC for each

category is the difference between cost of units recorded and computed units billed at the

relevant tariff in respect of HT categories. In respect of LT categories, it is the difference

between the cost of units recorded and monthly minimum charges notified in the tariff order.

Customer Charges: Customer charges are as approved in tariff Order for each of the

category of consumers. As per the revised regulatory formats income from customer charges

is considered as part of revenue from tariffs.

Other Charges: These are the charges other than the above charges. There are no “other

charges” proposed for FY 2016-17.

Based on the above approach, the gross revenue (excl. NTI) for FY 2015-16 is expected

to be Rs 12117.14 Cr, while that for FY 2016-17 is expected to be Rs 14493.43 Cr. The NTI

for FY 2015-16 is Rs. 76.34 Crs., while for FY 2016-17 NTI isRs. 79.33 crores. The table

below provides the category-wise revenue for FY 2015-16 and FY 2016-17:

Category-wise revenue (Excl NTI) (Form-5) (Rs. Crores)Category 2015-16 2016-17

LT Category 5487.86 6185.36Domestic 2537.19 2925.69Non-domestic/Commercial 1465.43 1622.52Industrial 1043.78 1180.39Cottage Industries, Dhobighats& Others 15.54 16.42Irrig& Agriculture 59.10 62.82Local Bodies, St. Lighting & PWS 289.88 295.57General Purpose 61.45 66.44Temporary Supply 15.50 15.50HT Category at 11 kv 1835.32 2106.73HT I (A): General 1004.12 1162.46Lights and Fans 23.94 27.31Industrial Colonies 1.56 1.72Seasonal Industries 47.14 52.80Time of Day Tariffs (6 PM to 10 PM) 143.80 166.34HT I (B): Ferro Alloy Units 0.00 0.00HT II: Others 413.67 475.54

Page 85

Category 2015-16 2016-17Time of Day Tariffs (6 PM to 10 PM) 76.28 88.27HT III: Airports, Bus Stations and Railway Stations 14.31 15.57Time of Day Tariffs (6 PM to 10 PM) 2.56 2.86HT IV Government LIS 49.33 49.31HT IV Agriculture 9.90 10.10HT IV CPWS 18.39 22.37HT VI: Townships & Residential Colonies 23.09 24.18HT VII: Green Power 0.00 0.00HT VIII: Temporary 0.00 0.00Category: RESCOs 7.25 7.88HT Category at 33 kv 2434.81 2765.26HT I (A): General 1811.41 2065.01Lights and Fans 22.61 25.77Industrial Colonies 6.82 7.78Seasonal Industries 31.06 35.40Time of Day Tariffs (6 PM to 10 PM) 321.85 366.92HT I (B): Ferro Alloy Units 115.14 124.36HT II: Others 69.30 79.78Time of Day Tariffs (6 PM to 10 PM) 12.00 13.82HT III: Airports, Bus Stations and Railway Stations 0.80 0.80Time of Day Tariffs (6 PM to 10 PM) 0.04 0.04HT IV Government LIS 22.25 22.25HT IV Agriculture 5.53 5.64HT IV CPWS 14.77 16.34HT VI: Townships & Residential Colonies 1.23 1.35HT VII: Green Power 0.00 0.00HT VIII: Temporary 0.00 0.00Category: RESCOs 0.00 0.00HT Category at 132 kv 2359.14 3436.09HT I (A): General 1323.30 1508.76Lights and Fans 12.76 14.55Industrial Colonies 8.30 9.46Seasonal Industries 0.00 0.00Time of Day Tariffs (6 PM to 10 PM) 240.56 274.25HT I (B): Ferro Alloy Units 69.72 75.31HT II: Others 14.00 16.09Time of Day Tariffs (6 PM to 10 PM) 2.44 2.80HT III: Airports, Bus Stations and Railway Stations 0.00 0.00Time of Day Tariffs (6 PM to 10 PM) 0.00 0.00HT IV Government LIS 174.46 979.79HT IV Agriculture 0.00 0.00

Page 86

Category 2015-16 2016-17HT IV CPWS 0.00 0.00HT V: Railway Traction 513.60 555.08HT VI: Townships & Residential Colonies 0.00 0.00HT VII: Green Power 0.00 0.00HT VIII: Temporary 0.00 0.00Category: RESCOs 0.00 0.00Total (LT + HT) 12117.14 14493.43

5.3 Detailed category wise Revenue computationThe detailed category wise computation of revenue is as follows.

5.3.1 Low Tension Categories

5.3.1.1 LT I: Domestic Category

At present, domestic consumers are billed on the basis of monthly consumption only. The licensee submits that the existing tariff structure has the following drawbacks:

Tariff shock observed by consumers on the verge of moving from one slab to another:

Consumption in Units Category Bill in Rs / month Additional Charge for extra unit in Rs

100 Category I (B) 23366

101 Category I (C) 300200 Category I (C) 667

210201 Category I (D) 877

Tariff is dynamic based on consumption during the month. Consumers can not be designated with any sub-cateogry of Domestic due to non-static consumption of a consumption.

Tariffs are independent of affordability / income level of consumers: Under the existing tariff regime, high-income consumers are likely to enjoy concessional tariffs intended for low-income consumers, in case their consumption during any month is reduced. Ex- if a consumer having an average consumption of 200 units/month consumes 30 units/month will be charged at 1.45 / unit.

Non requirement of sub-category LT I(A) in presence of LT (B).

Page 87

Considering above, the licensee would like to propose simplied tariff structure of Domestic category by grouping consumers, with no tariff change, based on certain conditions as shown below:

Group A: Only Single-phase consumers with annual consumption upto 600 Units ( upto 50 units/ month)

Group B: Only Single-phase consumers with annual consumption greater than 600 Units and upto 2,400 Units

Group C: Single-phase consumers with annual consumption more than 2,400 Units and all three-phase consumers

Grouping of domestic consumers will be done based on annual consumption of FY 2015-16 during the start of FY 2016-17 and will continue to be in the same group till the annual threshold limits stipulated above.

In case of a new consumer, the following rules will be applicable

Group A - if a consumer is Single-phase consumer

Group C - if a consumer is Three phase consumer

.The existing tariff structure is as under:

Existing Category / Slab Structure(Units) Energy charge (Rs./Unit)

LT I (A): Upto 50 Units/Month 1.45LT I (B): Above 50 Units/Month and Up to 100 Units/Month

<50 1.4551-100 2.60

LT I (C): Above 100 Units/Month and Up to 200 Units/Month<50 2.60

51-100 2.60

101-150 3.60

151-200 3.60

LT I (D): Above 200 Units/Month<50 2.60

51-100 3.25101-150 4.88151-200 5.63201-250 6.70251-300 7.22301-400 7.75401-500 8.27

>500 8.80

Page 88

The licensee proposes a simplified tariff structure with grouping, with no change in in tariff, as under:

Proposed Category / Slab Structure(Units)

Energy charge (Rs./Unit)

Group A: All Single phase consumers with annual consumption < = 600 Units0-50 1.4551-100 2.60101-200 3.60Above 200# 6.90

Group B: All single phase consumers with consumption ( < =2400 and > 600 units)

0-50 2.6051-100 2.60101-200 3.60201-300 6.90Above 300 7.75

Group C: All single phase consumers with annual consumption >2400 units and all three phase consumers

0-50 2.6051-100 3.25101-200 5.26201-300 6.90301-400 7.75401-500 8.27Above 500 units 8.80

# computed average existing tariff for a consumer whose consumption is > 200 but < 300 units

Estimated revenue for FY 2015-16 & FY 2016-17 are submitted below:

YearEnergy

Charges (Rs crores)

Demand /Fixed charges

(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue

from Tariff

(Rs crores)

2015-16 2231.56 0.00 66.84 238.79 0.00 2537.192016-17 2600.28 0.00 68.18 257.23 0.00 2925.69

Based on the above the total revenue estimate for the category is Rs.2537.19 Crores for

2015-16 and Rs.2925.69 Crores for 2016-17.

Page 89

5.3.1.2 LT II: Non-Domestic & Commercial Category

Slab-wise Breakup of Revenue

The incremental revenue due to the impact of the monthly minimum charges over and above the revenue from stated tariff rates in shown below.

Revenue from Tariffs

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue

from Tariff (Rs crores)

2015-16 1356.20 69.07 13.23 26.94 0.00 1465.432016-17 1509.94 71.20 13.62 27.76 0.00 1622.52

Based on the above the total revenue estimate for the category is Rs.1465.43 Crores

for 2015-16 and Rs.1622.52 Crores for 2016-17.

5.3.1.3 LT III : Industrial (Normal & Optional) Category

Due to very different tariff structures between Pisciculture/ Prawn culture and non-

pisciculture units, the revenue computation has been done separately for the two sub-

categories and is shown below:

Page 90

2015-16

Sub-CatEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs

crores)

Gross Revenue


Industries 892.90 54.23 0.00 3.45 0.00 950.58Seasonal Industries (off season) 0.00 0.00 0.00 0.00 0.00 0.00Pisciculture/Prawn culture 91.09 1.15 0.00 0.71 0.00 92.95Sugarcane crushing 0.23 0.01 0.00 0.00 0.00 0.24Poultry farms 0.00 0.00 0.00 0.00 0.00 0.00Mushroom and Rabbit farms 0.00 0.00 0.00 0.00 0.00 0.00Floriculture in Green House 0.00 0.00 0.00 0.00 0.00 0.00

Total 984.23 55.39 0.00 4.16 0.00 1043.782016-17

Industries 1018.60 55.86 0.00 3.56 0.00 1078.02Seasonal Industries (off season) 0.00 0.00 0.00 0.00 0.00 0.00Pisciculture/Prawn culture 100.21 1.19 0.00 0.71 0.00 102.11Sugarcane crushing 0.26 0.01 0.00 0.00 0.00 0.27Poultry farms 0.00 0.00 0.00 0.00 0.00 0.00Mushroom and Rabbit farms 0.00 0.00 0.00 0.00 0.00 0.00Floriculture in Green House 0.00 0.00 0.00 0.00 0.00 0.00

Total 1119.06 57.05 0.00 4.28 0.00 1180.39

The total revenue estimate for the category is Rs 1043.78 Crores for 2015-16 and Rs.1180.39

Crores for 2016-17.

5.3.1.4 LT IV: Cottage Industries &Dhobighat Category

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


2015-16 14.31 0.83 0.00 0.39 0.00 15.542016-17 15.57 0.46 0.00 0.40 0.00 16.42

The total revenue estimate for the category is Rs 15.54 Crores for 2015-16 and

Rs.16.42 Crores for 2016-17.

5.3.1.5 LT V: Agriculture Category

Page 91

The revenue from agricultural category has been computed with reference to each

subcategory. Agricultural consumers following DSM measures with less than or equal to

three service connections or agricultural consumers having agricultural land less than or

equal to 2.5 acres are eligible for free power. The other subcategories come under paying

category. The revenue computation from the category is given below:

Category V - Irrigation and AgricultureEnergy Charges

(Rs. Crs.)

2015-16 2016-17

Category V (A) - Agriculture (DSM) 57.93 61.63Corporate Farmers & IT Assesses 7.41 7.70Wet Land Farmers (Holdings >2.5 acre) 5.23 5.42Dry Land Farmers (Connections > 3 nos.) 1.90 1.98Wet Land Farmers (Holdings <= 2.5 acre) 6.51 6.98Dry Land Farmers (Connections <= 3 nos.) 36.88 39.56Category V (B) - Agriculture (Non-DSM) 1.17 1.19Corporate Farmers & IT Assesses 0.39 0.40Wet Land Farmers (Holdings >2.5 acre) 0.68 0.69Dry Land Farmers (Connections > 3 nos.) 0.08 0.08Wet Land Farmers (Holdings <= 2.5 acre) 0.01 0.01Dry Land Farmers (Connections <= 3 nos.) 0.01 0.01Category - V (C) - Others 0.00 0.00 Category V(A)(i) Salt Farmers 0.00 0.00 Category V(A)(ii) Rural Horticulture Nurseries 0.00 0.00

Total 59.10 62.82Based on the above computations the gross revenue from agricultural category is

Rs.59.10 Crores for FY 2015-16 and Rs.62.82 Crores for FY 2016-17.

5.3.1.6 LT VI: Street Lighting & PWS Category

2015-16

Sub-CatEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


Page 92

Street Lighting 108.78 2.36 0.00 1.66 0.00 112.80PWS Scheme 169.03 6.54 0.00 1.25 0.00 176.82

NTR SujalaPadhakam 0.26 0.00 0.00 0.00 0.00 0.262016-17

Sub-CatEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


Street Lighting 110.96 2.67 0.00 1.67 0.00 115.30PWS Scheme 172.41 6.60 0.00 1.26 0.00 180.27

NTR SujalaPadhakam 0.39 0.00 0.00 0.00 0.00 0.39

The total revenue estimate for the category is Rs.289.88 Crores for 2015-16 and

Rs.295.96 Crores for 2016-17.

5.3.1.7 LT VII: General Purpose Category

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue from

Tariff (Rs crores)

2015-16 59.79 0.13 1.15 0.39 0.00 61.452016-17 64.88 0.16 1.18 0.23 0.00 66.44


Rs.66.44 Crores for 2016-17

5.3.1.8 LT VIII: Temporary supply Category

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue from

Tariff (Rs crores)

2015-16 15.50 0.00 0.00 0.00 0.00 15.502016-17 15.50 0.00 0.00 0.00 0.00 15.50


Rs.15.50 Crores for 2016-17.

5.3.2 High Tension Categories

Page 93

5.3.2.1 HT Cat-I: Industrial

2015-16

VoltageEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


11 KV 970.01 232.40 14.21 3.94 0.00 1220.5633 KV 2038.60 266.67 3.20 0.42 0.00 2308.89132 KV 1419.04 232.90 2.59 0.11 0.00 1654.64

Total 4427.65 731.97 20.00 4.47 0.00 5184.092016-17

11 KV 1119.89 268.82 17.86 4.06 0.00 1410.6433 KV 2317.15 304.00 3.66 0.43 0.00 2625.24132 KV 1613.57 265.51 3.14 0.11 0.00 1882.33

Total 5050.61 838.33 24.66 4.60 0.00 5918.21

Based on the above the total revenue estimate for the category is Rs.5184.09 Crores for

2015-16 and Rs.59188.21 Crores for 2016-17.

5.3.2.2 HT Cat-II: Others

2015-16

VoltageEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


11 KV 400.91 85.04 2.26 1.75 0.00 489.9533 KV 63.22 18.01 0.02 0.06 0.00 81.30132 KV 14.33 2.08 0.00 0.02 0.00 16.44

Total 478.46 105.13 2.28 1.83 0.00 587.692016-17

11 KV 461.61 97.79 2.58 1.83 0.00 563.8133 KV 72.78 20.73 0.02 0.06 0.00 93.60132 KV 16.48 2.39 0.00 0.02 0.00 18.90

Total 550.87 120.92 2.60 1.91 0.00 676.31

Based on the above consumption the total revenue estimate for the category is

Rs.587.69 Crores for 2015-16 and Rs.676.31 Crores for 2016-17.

5.3.2.35.3.2.4 HT Cat-III : Aviation activity at Airports

Page 94

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


2015-16 15.19 2.47 0.00 0.05 0.00 17.712016-17 16.69 2.54 0.00 0.05 0.00 19.28

Based on the above consumption the total revenue estimate for the category is Rs.17.71

Crores for 2015-16 and Rs.19.28 Crores for 2016-17.

5.3.2.5 HT Cat- IV: Irrigation & Agriculture

2015-16

VoltageEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


11 KV 77.07 0.00 0.00 0.55 0.00 77.6133 KV 42.49 0.00 0.00 0.06 0.00 42.55132 KV 174.43 0.00 0.00 0.02 0.00 174.46

Total 293.99 0.00 0.00 0.63 0.00 294.622016-17

11 KV 80.82 0.00 0.00 0.57 0.00 81.3933 KV 44.17 0.00 0.00 0.06 0.00 44.23132 KV 979.77 0.00 0.00 0.02 0.00 979.79

Total 1104.75 0.00 0.00 0.65 0.00 1105.41The total revenue estimate for the category is Rs.294.62 Crores for 2015-16 and

Rs.1105.41 Crores for 2016-17.

5.3.2.6 HT Cat-V: Railway Traction

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


2015-16 513.55 0.00 0.00 0.05 0.00 513.602016-17 555.02 0.00 0.00 0.05 0.00 555.08

The total revenue estimate for the category is Rs 513.60 Crores for 2015-16 and

Rs.555.08 Crores for 2016-17.

5.3.2.7 HT Cat -VI: Township & Residential Colonies

Page 95

2015-16

VoltageEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue from Tariff (Rs crores)

11 KV 22.53 0.51 0.00 0.05 0.00 23.0933 KV 1.18 0.04 0.01 0.01 0.00 1.23132 KV 0.00 0.00 0.00 0.00 0.00 0.00

Total 23.70 0.55 0.01 0.06 0.00 24.322016-17

11 KV 23.60 0.52 0.00 0.05 0.00 24.1833 KV 1.29 0.04 0.01 0.01 0.00 1.35132 KV 0.00 0.00 0.00 0.00 0.00 0.00

Total 24.90 0.56 0.01 0.06 0.00 25.52The total revenue estimate for the category is Rs 24.32 Crores for 2015-16 and

Rs.25.52 Crores for 2016-17.

5.3.2.8 HT Cat-VII : Green Power

There in no existing services

5.3.2.9 HT Cat-VIII : RESCOs

YearEnergy

Charges (Rs crores)


(Rs crores)

Minimum Charges

(Rs crores)

Customer Charges

(Rs crores)

Others (Rs crores)

Gross Revenue


2015-16 7.25 0.00 0.00 0.00 0.00 7.252016-17 7.88 0.00 0.00 0.00 0.00 7.88

The total revenue estimate for the category is Rs 7.25 Crores for 2015-16 and Rs.7.88 Crores

for 2016-17.

The estimated revenue gap for the licensee for FY 2016-17 is as follows:

Form-9

Particulars FY 2016-17Aggregate Revenue Requirement 18920.15Revenue from Current Tariffs (Net of incentives) (Rs. Crs.) 14493.43Non - Tariff Income (Rs. Crs.) 79.33Revenue from Trading 0.00Revenue Deficit(-) / Surplus(+) at Current Tariff -4347.39

Page 96

6 Performance ParametersThe details as required by the APERC as per the fresh directive (1) in the Retail supply Tariff

order 2009-10 are given below:

6.1.1 Compensation paid by the licensee to consumers for deficiency of service as per the Regulations of the Commission

Compensation awarded for FY 2014-15 (Apr'14 to Mar'15)

S.No CG No. & Date Circle Date of

Orders

compensation awarded in

Rs.Brief Remaks

1 1/2014-15, 01-04-14 Nellore 25-06-14 Rs. 1700 /-Delay of 17 days in releasing of

additional load of 2HP to ASC No.83 of DavaraVamuru Section, Gudur Section

2 30/2014-15, 23-05-14 Ongole 30-08-14 Rs. 4500 /-

Delay of 45 days in resolving the low voltage problem inrespect of Sri

P.RaheemBasha, Indira Colony, Kanigiri division

3 43/2014-15, 23-05-14 Ongole 26-06-14 Rs. 11700 /-Delay of 117 days in releasing of new domestic service to Sri G. Manohar

Reddy, Kanigiri division

4 46/2014-15, 31-05-14 Ongole 26-06-14 Rs. 100 /- Delay of 2 days in revision of bill inrespect of Smt. V. Sreelakshmi, Ongole

5 50/2014-15, 06-06-14 Vijayawada 30-08-14 Rs. 10800 /-Delay of 108 days in releasing of new non

domestic service to Sri V.P.V. Rama Krishna, M.G.Road, Vijayawada

6 64/2014-15, 18-07-14 Kurnool 01-09-14 Rs. 6000 /-Delay of 60 days in releasing of new

service to Sri M. Vishnu Vardhan Reddy of Kurnool

Compensation awarded for FY 2015-16 (Apr'15 to Sep'15)

1 196/2014-15, 12-02-15 Guntur 06-05-14 Rs. 7500 /-Abnormal delay of 120 days in resolving the billing complaint against Sc.No.1155

of Chilakaluripet, Guntur

2 202/2014-15, 23-02-15 Nellore 21-08-15 Rs. 17500 /-70 days delay in resolving low voltage

problem for 5 consumers at the rate of Rs.50/- per day

3 133/2015-16, 11-06-15 Guntur 31-08-15 Rs. 12800 /-128 days delay in releasing the industrial

service (Aqua culture) at the rate of Rs.100/- per day

Page 97

6.1.2 Details of electrical accidents and ex-gratia paid during FY 2014-15 and FY 2015-16Accidents :

2014-15 (Non-Departmental) 2015-16 (upto Sep'15) (Non-Departmental)

S.No CircleHuman Animal Human Animal

Fatal Non-fatal Fatal Non-

fatal Fatal Non-fatal Fatal Non-

fatal1 Vijayawada 27 4 18 0 20 5 28 02 Guntur 11 0 23 0 6 0 24 13 Ongole 15 6 9 0 9 0 8 04 Nellore 6 2 5 0 5 5 3 15 Tirupati 12 2 2 0 5 3 3 06 Kadapa 9 2 6 0 16 2 4 07 Anantapur 90 12 13 0 45 6 11 08 Kurnool 58 5 25 0 56 14 79 0

Total 228 33 101 0 162 35 160 2

Ex-gratia Paid

Circle

2014-15 2015-2016 (upto Sep, 2015)Animal (Nos.)

Amount (Rs.)

Human (Nos.)

Amount (Rs.)

Animal (Nos.)

Amount (Rs.)

Human (Nos.)

Amount (Rs.)

Vijayawada 8 1,83,000 13 28,50,000 7 3,47,000 10 22,00,000Guntur 11 212000 5 900000 5 100000 2 400000Ongole 11 340000 21 200000 9 346000 11 200000Nellore 20 400000 1 200000 21 446000 23 600000Tirupati 1 20000 3 600000 1 200000 0 0Kadapa 0 0 1 200000 0 0 5 1000000Anantapur 2 40000 11 2200000 0 0 3 600000Kurnool 0 0 1 200,000 0 0 0 0SPDCL 53 1012000 56 4500000 43 1092000 54 2800000

Page 98

6.1.3 Replacement of burnt transformers, installation of additional transformers.

S.No. Circle

2014-15 2015-16 (upto Sep'15)

Total No. of DTRs Failed

Replacement of failed

transformers

Installation of additional

transformers

Total No. of DTRs Failed

Replacement of failed

transformers

Installation of additional

transformers

1 Vijayawada 2099 2099 3418 1495 1495 17822 Guntur 2719 2719 3557 1767 1767 20023 Ongole 4843 4843 18637 2634 2634 19344 Nellore 4367 4367 5469 2469 2469 13845 Tirupati 7251 7251 2216 4033 4033 9436 Kadapa 5378 5378 2279 3335 3335 65287 Anantapur 6712 6712 3650 4633 4633 22248 Kurnool 4859 4859 2200 2561 2561 1295

Total 38228 38228 41426 22927 22927 18092

6.1.4 Number of burnt-out, non-functioning or faulty meters (Circle-wise).

Burnt meters for FY 2014-15

CircleDefective as on Defective during Replaced during Defective as on 31-

03-20151/4/2014 2014-2015 2014-2015 1 Ph 3 Ph Total 1 Ph 3 Ph Total 1 Ph 3 Ph Total 1 Ph 3Ph Total

Vijayawada 15 6 21 4126 1899 6025 4130 190

0 6030 11 5 16

Guntur 49 9 58 17581 2161 19742 17537 215

4 19691 93 16 109

Ongole 1735 42 1777 5005 391 5396 3544 296 3840 319

6 137 3333

Nellore 186 76 262 4231181

4 6045 4333183

2 6165 84 58 142

Tirupati 0 0 0 2405 673 3078 2405 673 3078 0 0 0Kadapa 137 0 137 5264 262 5526 5130 262 5392 271 0 271Anantapur 39 0 39 2970 748 3718 2900 745 3645 109 3 112

Kurnool 117 50 167 2905 1058 3963 2961 109

7 4058 61 11 72

Total 2278 183 2461 44487 900

6 53493 42940 8959 51899 382

5 230 4055

Burnt meters for FY 2015-2016 (upto Sep, 2015)

Circle

Defective as on Defective during Replaced during Defective as on 30-09-20151/4/2015 2015-2016 (upto

September 2015)2015-2016 (upto September 2015)

1 Ph

3 Ph Total 1 Ph 3

Ph Total 1 Ph 3 Ph Total 1

Ph3

Ph Total

Vijayawada 11 5 16 2162 1042 3204 2160 104

0 3200 13 7 20

Guntur 93 16 109 8692 382 9074 8584 362 8946 201 36 237Ongole 319 13 3333 1303 88 1391 3784 126 3910 715 99 814

Page 99

6 7Nellore 60 37 97 1416 715 2131 1221 690 1911 255 62 317Tirupati 0 0 0 1218 257 1475 1218 257 1475 0 0 0Kadapa 271 0 271 2991 59 3050 3262 59 3321 0 0 0Anantapur 109 3 112 3150 433 3583 3235 431 3666 24 5 29Kurnool 61 11 72 1360 496 1856 1336 502 1838 85 5 90

Total 3801

209 4010 2229

2347

2 25764 24800

3467 28267 129

3214 1507

Stuck-up meters for FY 2014-15

Circle

Defective as on Defective during Replaced during Defective as on 31-03-20151/4/2014 2014-2015 2014-2015

1 Ph 3 Ph

Total 1 Ph 3 Ph Total 1 Ph 3 Ph Total 1 Ph 3

PhTota

lVijayawada 14 16 30 55578 7340 62918 55571 7347 62918 21 9 30

Guntur 130 25 155 117010 7720 12473

011697

6 7715 124691 164 30 194

Ongole 6219 39 6258 42856 1160 44016 43091 1026 44117 5984 173 6157

Nellore 3810320 4130 44827 4338 49165 43984 4179 48163 4653 47

9 5132

Tirupati 0 0 0 36506 1648 38154 36506 1648 38154 0 0 0Kadapa 298 0 298 42475 598 43073 42405 598 43003 368 0 368Anantapur 70 1 71 33043 1696 34739 32833 1677 34510 280 20 300Kurnool 1644 98 1742 29522 2152 31674 30543 2228 32771 623 22 645

Total 12185

499

12684

401817

26652

428469

401909

26418

428327

12093

733

12826

Stuck-up meters for FY 2015-2016 (upto Sep, 2015)

Circle

Defective as on Defective during Replaced during Defective as on 30-09-20151/4/2015 2015-2016 (upto

September 2015)2015-2016 (upto September 2015)

1 Ph

3Ph

Total 1 Ph 3 Ph Total 1 Ph 3 Ph Total 1

Ph3Ph

Total

Vijayawada 21 9 30 27342 3426 30768 27352 3425 30777 11 10 21

Guntur 164 30 194 63101 836 63937 62911 821 63732 354 45 399

Ongole 5984

173 6157 18309 444 18753 23655 443 24098 638 17

4 812

Nellore 1761

296 2057 21933 2465 24398 22682 2511 25193 101

2250 1262

Tirupati 0 0 0 15074 990 16064 15074 990 16064 0 0 0Kadapa 368 0 368 20950 225 21175 21297 225 21522 21 0 21Anantapur 280 20 300 23031 921 23952 23291 938 24229 20 3 23Kurnool 623 22 645 11721 1057 12778 11487 1057 12544 857 22 879

Total 9201

550 9751 20146

11036

421182

520774

91041

021815

9291

3504 3417

Page 100

6.1.5 Performance with regard to attending fuse-off calls.

Performance with regard to attending fuse-off calls

S.No. Circle2014-15 2015-2016 (upto Sep, 2015)

Received With in the stipulated time Received With in the

stipulated time1 Vijayawada 18598 18550 8654 86542 Guntur 12149 11698 6194 60853 Ongole 11826 11778 6942 69354 Nellore 21355 21328 11332 113325 Tirupati 11902 11635 3075 30016 Kadapa 14366 14301 6949 6949

7 Anantapur 58602 58475 56062 56021

8 Kurnool 56136 55702 45022 45022APSPDCL 204934 203467 144230 143999

6.1.6 Breakdowns and interruptions in power supply to urban and rural consumers (Circle-wise) and time taken for restoration.

CircleBreak Downs : 2014-15 Interruption : 2014-15

33KV 11KV LC TrippingsNos Duration Nos Duration Nos Duration Nos Duration

Vijayawada 410 1570:17 2769 9257:07 310 837:05 3115 486:17Guntur 228 1110:12 2843 1110:12 286 688:23 3476 692:10Ongole 194 1246:15 567 1502:40 99 200:02 3101 564:11Nellore 218 1119:18 488 1119:18 165 446:45 2542 466:27Tirupati 117 558:22 937 3276:44 6 10:59 2009 384:37Kadapa 199 813:41 2590 12646:36 173 303:40 2462 465:08Anantapur 173 866:21 716 2328:28 77 111:36 960 276:08Kurnool 115 578:16 416 2327:42 1696 352:29

TOTAL 1654 7862:42 1132

6 33568:47 1116 2598:30 19361 3687:27

Circle Break Downs : 2015-16 Interruption : 2015-16

Page 101

33KV 11KV TrippingsNos Duration Nos Duration Nos Duration

Vijayawada 370 1364:02 2812 5679:12 2335 521:33Guntur 242 1276:20 1717 5147:36 2475 715:49Ongole 204 1200:02 364 1334:20 2505 570:12Nellore 312 2639:50 160 990:06 2231 547:18Tirupati 240 1458:17 1947 4316:30 1504 366:17Kadapa 286 2137:02 1854 11166:46 2127 514:43Anantapur 275 2053:48 1192 5831:56 1423 430:28Kurnool 187 834:42 663 4079:07 2028 436:29

TOTAL 2116 12964:03 1070

9 38545:33 16628 4102:49

6.1.7 Frequency and voltage at various levels of interface over the period.

MonthAverage Max. Min.

Hz. Hz. Date Hz. DateApr-14 49.94 50.53 20.4.14 49.49 26.04.14May-14 49.97 50.56 30.05.14 49.41 20.05.14Jun-14 49.92 50.65 12.06.14 49.32 27.06.14Jul-14 49.93 50.36 23.07.14 49.42 25.07.14Aug-14 49.92 50.34 26.08.14 49.36 01.08.14Sep-14 49.95 50.37 01.09.14 49.35 09.09.14Oct-14 49.96 50.49 02.10.14 49.53 07.10.14Nov-14 50.00 50.42 16.11.14 49.58 27.11.14Dec-14 49.98 50.58 15.12.14 49.54 30.12.14Jan-15 50.00 50.56 01.01.15 49.55 15.01.15Feb-15 50.00 50.55 17.02.15 49.58 17.02.15Mar-15 49.99 50.54 01.03.15 49.52 03.03.15Average 2014-15 49.96

Apr-15 49.99 50.55 25.04.15 49.50 07.04.15

May-15 49.98 50.55 19.05.15 49.19 24.05.15Jun-15 50.01 50.53 13.06.15 49.56 26.06.15Jul-15 49.99 50.33 26.07.14 49.56 28.07.15Aug-15 49.97 50.27 12.08.15 49.55 03.08.15Sep-15 49.94 50.33 20.09.15 49.36 04.09.15

Average 2015-16 49.98

6.1.8 Pending applications and connections released to different categories of consumers

Category wise LT pending Applications in SPDCL During the year 2015-16 (upto 31.10.15)

Category I II III IV V VI(a) VI(b) VII VIII Total

Pending at the beginning of the month

12384 2805 1268 97 89018 272 1535 153 103 107635

Received during the month

150368 18462 1441 351 40585 545 1217 561 293 213823

Page 102

Deleted during the month

2127 485 317 22 9340 87 347 31 69 12825

Services released during the month

152926 18872 1473 297 38260 444 945 522 61 213800

Pending at the end of the month

4913 849 765 18 34052 149 714 104 2 94833

6.1.9 Arrears of consumers over Rs.50, 000 pending for over six months and details of bad debts written off

Defaulters list of individual consumers (circle wise) whose arrears are more than Rs.50,000/- as on 30-09-2015isdisplayed in APSPDCL website (www.apspdcl.in)

6.1.10 Court cases involving the Licensee

Page 103

http://www.apspdcl.in/

S.No Petition No. Name of the Petitioner Subject Remarks

NCE Project–list of Court cases filed at APERC

1R.P. No. 1 of 2009

inO.P. No. 5 of 2009

M/s RPP LtdAgainst orders passed by APERC

Dt. 31.3.2009in O.P. No. 5 of 2009 determining the tariff for NCE

Projects

APERC dismissed review petition on

27.7.2013

2R.P. No. 2 of 2009


Small Hydro Power Developers Association

Against orders passed by APERC Dt. 31.3.2009in O.P. No. 5 of 2009

determining the tariff for NCE Projects


27.7.2013

3R.P. No. 3 of 2009


M/s Sardar Power Ltd




27.7.2013

4R.P. No. 4 of 2009


M. Venu Gopal Rao




27.7.2013

5R.P. No. 5 of 2009


M/s Velagapudi Power Generation Company Ltd,

Hyderabad




27.7.2013

6R.P. No. 6 of 2009


Punna Rao Against orders passed by APERC Dt. 31.3.2009in O.P. No. 5 of 2009



27.7.2013

7R.P.No. 7 of 2009


1) SISMA2) M/s Empee Power Company (India) Ltd

3) M/s GSR Sugars Ltd4) M/s KCP Sugar

Industrial Corporation Ltd5) M/s Nizam Deccan

Sugar Ltd




27.7.2013

8 O.P. 18 of 2013

M/s Matrix Power Private Limited

Petition for determining of the tariff to take effect on completion

of 10 years from the date of commissioning of the project

Hearing on 9.11.2013

9 O.P. No. 31 of 2013

M/s Hetero Wind power Limited

Regarding evacuation policy, wheeling charges and banking of

power generated by captive power producers


10 O.P No. 27 of 2012

M/s SLS Power Limited Petition for determining of the tariff to take effect on completion

of 10 years from the date of commissioning of the project


NCE Project – list of Court cases filed at High court of AP

Page 104

S.No Petition No. Name of the Petitioner Subject Remarks

1Writ Appeal Nos: 1255, 1285,1291,

1293 of 2008

APTRANSCO & DISCOMS

Against Ld Single Judge orders in W.P. No. 17344/2007 and batch regarding provisions banking of

energy facility to NCE Developers (APERC Regulation 2 of 2006)

2 Writ Petition No: 18553 of 2009

M/s Tirumala hydel power projects limited, Chilakaluripet

To wheel the petitioners energy, which was generated / banked or

remaining un-utilized/ un allocated as at the end of December 2006 and as at the end of December 2007 and

as the end of December ‘2008 ( APERC Regulation 2 of 2006)

High court passed interim order

directing into to wheel power to

scheduled consumers from unutilized energy

from January 2010


M/s Akshay profiles ltd, Chilakaluripet



as the end of December ‘2008 (APERC Regulation 2 of 2006)




from January 2010


Trident Power Systems Ltd, Hyderabad



as the end of December ‘2008 (APERC Regulation 2 of 2006)




from January 2010NCE Project – list of Court cases filed at Appellate Tribunal for Electricity, New Delhi

NILNCE Project – list of Court cases filed at Supreme Court of India

1 Civil Appeals Nos 3891-3892 of 2009 M/s Jocil Ltd

Against the Appellate Tribunal for Electricity, New Delhi orders date 19.12.2008 in Appeal No. 92 & 38

of 2007

Still pending at Supreme court

2

Civil Appeal N0. 837 of 2011

M/s Sitapuram Power Limited

Against orders passed by Appellate Tribunal Appeal No. 8 of 2010


3Civil Appeal Nos 5159 of 2005 &

5157 of 2005

M/s Sagar Sugars & Allied Products Limited

To consider COD of the plant from the date of synchronization of the

plant without establishing the sugar plant


4Civil Appeal No. 1376 – 1385 of

2013M/s SLS & others

Against Appellate Tribunal Order dated 20.12.2012 with regards NCE tariff cases in APERC order dated

20.3.2004


Page 105

6.1.11 Number of cases filed in respect of pilferage of power in various categories giving comparative picture with respect to FY 2013-14& 2014-15 (upto Sep’14)

Page 106

7 Retail Supply Business True-up for FY 2014-15& FY 2015-16

7.1 Filing for True-up by the Distribution LicenseeThis filing is made by the Distribution Licensee, SOUTHERN POWER DISTRIBUTION

COMPANY OF ANDHRA PRADESH LIMITED (APSPDCL) under Clause 19, Pg 11

of the Andhra Pradesh Electricity Regulatory Commission ‘(Terms and Conditions for

Determination Of Tariff For Wheeling and Retail Sale of Electricity)’ Regulation No. 4

of 2005 and Clause 2, Pg 2 of the Andhra Pradesh Electricity Regulatory Commission

‘First Amendment to (Terms and Conditions for Determination of Tariff for Wheeling

and Retail Sale of Electricity) Regulation No. 1 of 2014, for corrections for

“uncontrollable” and “controllable” items and as well as sharing of gains/losses for FY

2013-14.

As per Andhra Pradesh Electricity Regulatory Commission (APERC) Regulation No. 4 of 2005, ‘Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity’ –

“4. Controllable and Uncontrollable items of ARR:- The expenditure of the Distribution Licensee considered as “controllable” and “uncontrollable” shall be as follows:

Distribution BusinessARR Item “Controllable”/”Uncontrollable”

Operation & Maintenance expenses ControllableReturn on Capital Employed ControllableDepreciation ControllableTaxes on Income UncontrollableNon-tariff income Controllable

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In addition to the above items the retail supply business shall include the following:

Retail BusinessARR Item “Controllable”/”Uncontrollable”

Cost of power purchase Uncontrollable

5. Pass-through of gains and losses on variations in “uncontrollable” items of ARR:- The Distribution Licensee shall be eligible to claim variations in “uncontrollable” items in the ARR for the year succeeding the relevant year of the Control Period depending on the availability of data as per actuals with respect to effect of uncontrollable items:

Provided that the Commission shall allow the financing cost on account of the time gap between the time when the true-up becomes due and when it is actually allowed and the corrections shall not be normally revisited.

6. Sharing of gains and losses on variations in “controllable” items of ARR:- The Distribution Licensee in its annual filings during the Control Period shall present gains and losses for each controllable item of the Aggregate Revenue Requirement. A statement of gain and loss against each controllable item will be presented after adjusting for any variations on account of uncontrollable factors.

7. For the purpose of sharing gains and losses with the consumers, only aggregate gains or losses for the Control Period as a whole will be considered. The Commission will review the gains and losses for each item of the ARR and make appropriate adjustments wherever required:

Provided that for the first Control Period, insofar as the gains and losses from the Retail Supply Business of the Distribution Licensee are concerned, these will be shared with the consumers on yearly basis.”

“MAIN ITEMS OF ARRThe Aggregate Revenue Requirement of the Distribution Licensee, for each year of the Control Period, shall contain the following items:1. Cost of power for (Retail Supply Business alone)2.Transmission charges (for Retail Supply Business alone)3.Load dispatch charges;4.Operation and maintenance expenses;5.Return on capital employed;6.Depreciation;7.Taxes on Income;

Page 108

8.Corrections for “uncontrollable” items and “controllable” items (indexed to external parameters);

9.Any other relevant expenditure”

“4. The Distribution Licensee shall be entitled to recover or shall refund, as the case may be, the charges on account of Fuel Surcharge Adjustment as approved by the Commission from time to time, suo-motu or based on the filing made by the Distribution Licensee, as the Commission may deem fit.”

“1. The Distribution Licensee shall be allowed to recover transmission and load despatch charges payable to the Transmission Licensees (Central Transmission Utility, State Transmission Utility etc.) and System Operators (Regional Load Despatch Centre, State Load Despatch Centre etc.) for access to and use of the inter-state transmission system, intra-state transmission system and availing load dispatch services on long-term basis in accordance with the tariffs approved from time to time by CERC and this Commission, as the case may be.

2. The Distribution Licensee shall also be allowed to recover the expenses, at the approved level, pertaining to (a) use of transmission and load dispatch facilities under short-term procurement of power for the Retail Supply Business; and (b) wheeling charges for use of the distribution system of other Distribution Licensee for procurement of power for the Retail Supply Business.”

As per Andhra Pradesh Electricity Regulatory Commission (APERC) Regulation No. 1 of 2014, ‘First Amendment to (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity)Regulation No. 4 of 2005’ –

“12.5 True-up for Retail Supply Businessa. The Distribution Licensee shall include the power purchase cost variation

over the previous year Power Purchase cost in the Tariff Order as expense (in the event of incurring excess cost)/rebate (in case of cost saving) in the ARR as special item with relevant details. To arrive the power purchase cost variation, the least of the following power purchase quantity is to be considered:i) Actual power purchase quantity procured by the Discoms for its

consumers.ii) Power purchase quantity computed based on actual sales except LT

Agriculture sales. LT Agriculture sales will be limited to Tariff Order

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quantity. These aggregated sales will be grossed up with approved losses for the relevant year in the MYT orders.

b. Since the complete information of cost actually incurred relating to previous year will not be available at the time of filing of ARR for a particular tariff year, the Licensee may include provisional cost variation for the previous year in ARR filings which will be subject to final correction by the Commission as and when final accounts for that year become available.

c. The Licensees shall also include in the ARR the amounts to be collected on final basis being the difference between the cost incurred based on audited annual accounts report and costs provisionally approved by the Commission in the Tariff Order for the year immediately preceding the previous year.”

The Amendment Regulation mentions about power purchase cost variation. However, deviation in actual and approved ARR and revenue arises because of variation in approved and actual agriculture sales, losses and average realization besides variation in power purchase cost. If this is not accounted for, it will result in the requirement of another Financial Restructuring Plan on account of accumulation of losses.

Hence, this write-up explains the total truing up gap arising out of the deviations in Aggregate Revenue Requirement components and revenue for the Retail Supply Business for FY 2014-15.

7.2 True-up of Aggregate Revenue Requirements components & Gap from Retail Business for FY 2014-15& FY 2015-16

Particulars 2014-152015-16

Approved Revised Estimate Deviation

Transmission Cost 478.70 654.10 654.10 0.00SLDC Cost 19.86 21.05 21.05 0.00Distribution Cost 1,481.60 2,153.24 2,153.24 -0.00PGCIL Expenses 217.12 211.10 211.10 0.00ULDC Expenses 6.89 9.71 9.71 0.00Network and SLDC Cost 2,204.17 3,049.20 3,049.20 0.00Power Purchase/Procurement Cost 12,217.29 12,672.00 13,468.63 796.63Interest on Consumer Security Deposits 122.83 147.09 142.12 -4.97Supply Margin 12.12 13.13 13.13 -0.00Other Cost 0.00 565.53 38.12 -527.41Supply Cost 12,352.24 13,397.75 13,662.00 264.25Gross ARR 14,556.41 16,446.95 16,711.20 264.25Revenue 10,320.98 14,128.50 12,193.48 -1,935.02Subsidy 2,169.03 2,318.45 2,318.45 0.00Total Revenue (incl. Subsidy) 12,490.01 16,446.95 14,511.93 -1,935.02Total Gap from Retail Business -2,066.40 0.00 -2,199.27 -2,199.27

Page 110

As shown in the table above, the total gap for Retail Supply Business is Rs -2066.40Crs for FY 2014-15& Rs. -2199.27 Crs. for FY 2015-16.

7.3 PrayerThe Petitioner (Distribution Licensee) prays that the Hon’ble Commission may:

The Petitioner (Distribution Licensee) submits that as per the APERC Regulation 1 of

2014,APDISCOMS have to file for power purchase cost deviation of last two years. The

licensee has computed the revenue gap for FY14-15 and FY 15-16, but it has not added this

revenue deficit to the ARR for FY16-17 because the GoAP has given in principle approval to

UDAY scheme floated by GoI. As per UDAY scheme, GoAP will take over 75% of

DISCOM debt as on 30 September 2015 over two years - 50% of DISCOM debt will be

taken over in 2015-16 and 25% in 2016-17.DISCOM debt not taken over by GoAP will be

converted by the Banks / FIs into loans or bonds with interest rate notmore than the bank’s

base rate plus 0.1%. Alternately, this debt may be fully or partly issued by the DISCOM as

GoAP guaranteed DISCOM bonds at the prevailing market rates which shall be equal to or

less than bank base rate plus 0.1%. In view of the above, the licensee requests not to consider

the above trueup amounts (for FY 2014-15 & FY 2015-16) while determining the ARR /

revenue deficit for FY 2016-17.

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