before the gujarat electricity regulatory commission ahmedabad

BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION

AHMEDABAD

Filing No:

Case No:

IN THE MATTER OF Filing of Petition for True Up of FY 2012-13,

determination of Tariff for FY 2014-15 for GETCO under

MYT Regulation framework and Section 62 of the

Electricity Act, 2003.

AND

IN THE MATTER OF Gujarat Energy Transmission Corporation Limited,

Sardar Patel Vidyut Bhavan,

Race Course,

Vadodara 390007

PETITIONER

THE PETITIONER ABOVE NAMED RESPECTFULLY SUBMITS

True Up of FY 2012-13 Tariff Petition for FY 2014-15

GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED

2

Table of Content

1. Introduction ............................................................................................................. 5

1.1. Preamble ........................................................................................................... 5

1.2. Introduction....................................................................................................... 5

1.3. Multi Year Tariff Framework Regulations ......................................................... 6

2. Executive Summary .................................................................................................. 8

2.1. Preamble ........................................................................................................... 8

2.2. True Up for FY 2012-13 ..................................................................................... 8

2.3. Net Recovery ..................................................................................................... 9

2.4. Tariff Proposal for FY 2014-15........................................................................... 9

3. True Up of FY 2012-13 ........................................................................................... 11

3.1. Preamble ......................................................................................................... 11

3.2. Principles for True Up for FY 2012-13 ............................................................. 11

3.3. Existing Capacity of GETCO in FY 2012-13 ...................................................... 11

3.4. Capital Expenditure for FY 2012-13 ................................................................ 12

3.5. Funding of CAPEX ............................................................................................ 12

3.6. Availability of Transmission System ................................................................ 13

3.7. Network Outages & faults ............................................................................... 13

3.8. Loading of Transmission System ..................................................................... 15

3.9. Addition to Transmission lines and Substations ............................................. 16

3.10. Transmission Losses ........................................................................................ 16

3.11. Annual Fixed Cost for FY 2012-13 ................................................................... 16

3.12. Categorization of Heads of Expenses .............................................................. 17

3.13. Operation & Maintenance Expenditure for FY 2012-13 ................................. 18

3.14. Depreciation for FY 2012-13 ........................................................................... 19

3.15. Interest and Finance Charges for FY 2012-13 ................................................. 20

3.16. Return on Equity for FY 2012-13 ..................................................................... 21

3.17. Interest on Working Capital for FY 2012-13.................................................... 22

3.18. Expenses Capitalised for FY 2012-13............................................................... 23

3.19. Provision of Tax for FY 2012-13....................................................................... 23

3.20. Incentive on Transmission Availability ............................................................ 24

3.21. Revenue from Other Income for FY 2012-13 .................................................. 24

3.22. Aggregate Revenue Requirement for FY 2012-13 .......................................... 25

3.23. Sharing of Gains & Losses................................................................................ 26

3.24. Revenue Gap for FY 2012-13 ........................................................................... 28

4. Determination of Tariff for FY 2014-15 ................................................................. 29

4.1. Preamble ......................................................................................................... 29



3

4.2. Proposal for Determination of Tariff for FY 2014-15 ...................................... 29

5. Compliance of Directives ....................................................................................... 30

5.1. Preamble ......................................................................................................... 30

5.2. Compliance of Directives ................................................................................. 30

6. Prayer ..................................................................................................................... 33

Tables

Table 1 : True Up for FY 2012-13 ..................................................................................... 8

Table 2 : Summary of Controllable & Uncontrollable factors ......................................... 9

Table 3: Net Recovery for the FY 2012-13 ....................................................................... 9

Table 4: Tariff Proposal for FY 2014-15 ......................................................................... 10

Table 5 : Existing Capacity of GETCO in FY 2012-13 (as on 31st Mar, 2013) .................. 12

Table 6 : Capital Expenditure during FY 2012-13 ........................................................... 12

Table 7 : Funding of CAPEX ............................................................................................ 13

Table 8 : Network Outage & Faults for GETCO for FY 2012-13 ..................................... 14

Table 9 : Summary of Loading of Transmission System during 2012-13 ....................... 15

Table 10 : Network Addition of GETCO during FY 2012-13 ........................................... 16

Table 11 : Transmission Losses of GETCO for FY 2012-13 ............................................. 16

Table 12 : Categorization of Heads of Expenses for FY 2012-13 ................................... 17

Table 13 : Transmission Length & no. of bays for FY 2012-13 ....................................... 18

Table 14 : O&M cost (Normative / Actuals) for FY 2012-13 .......................................... 18

Table 15 : Net O&M cost (As per audited accounts) for FY 2012-13 ............................. 18

Table 16: Gains / (Losses) from O&M Expenses ............................................................ 19

Table 17 : Depreciation for FY 2012-13 ......................................................................... 20

Table 18 : Gains/ (Losses) from Depreciation ................................................................ 20

Table 19 : Normative Repayments during FY 2012-13 .................................................. 21

Table 20 : Interest & Finance Charges for FY 2012-13 .................................................. 21

Table 21 : Gains/ (Losses) from Interest & Finance Charges ......................................... 21

Table 22 : Returns on Equity for FY 2012-13 ................................................................. 22

Table 23 : Gains/ (Losses) from Returns on Equity ........................................................ 22

Table 24 : Calculation sheet for Maintenance Spares till FY 2012-13 ........................... 22

Table 25 : Interest on Working Capital for FY 2012-13 ................................................. 23

Table 26 : Gains/ (Losses) from Interest on Working Capital ........................................ 23

Table 27 : Incentive for Higher Availability .................................................................... 24

Table 28 : Aggregate Revenue Requirement for FY 2012-13 ........................................ 26

Table 29 : Net Gain/ (Losses) for FY 2012-13 ................................................................. 27

Table 30 : Revenue Gap for FY 2012-13 ......................................................................... 28

Table 31: Proposed Transmission Tariff for FY 2014-15 ................................................ 29



4

Abbreviations

1. AC Alternate Current

2. ARR Aggregate Revenue Requirement

3. CAPEX Capital Expenditure

4. CERC Central Electricity Regulatory Commission

5. Ckt-Km Circuit Kilometer

6. DD & DNH Diu & Daman and Dadara Nagar Haveli

7. DGVCL Dakshin Gujarat Vij Company Limited

8. FY Financial Year

9. GEB Erstwhile Gujarat Electricity Board

10. GERC Gujarat Electricity Regulatory Commission

11. GETCO Gujarat Energy Transmission Corporation Limited

12. GoG Government of Gujarat

13. GSECL Gujarat State Electricity Corporation Limited

14. GUVNL Gujarat Urja Vikas Nigam Limited

15. HVDC High Voltage Direct Current

16. IPTC Independent Power Transmission Company

17. KV Kilo Volt

18. MGVCL Madhya Gujarat Vij Company Limited

19. MVA Mega Volt Ampere

20. MW Mega Watt

21. MYT Multi Year Tariff

22. O&M Operation & Maintenance

23. PGCIL Power Grid Corporation of India Limited

24. PGVCL Paschim Gujarat Vij Company Limited

25. R E Revised Estimates

26. R&M Renovation & Modernisation

27. S/S Sub Station

28. Second Control

Period

FY 2011-12, FY 2012-13, FY 2013-14, FY 2014-15, FY 2015-

16

29. T&C GERC (Terms & Conditions of Tariff Regulation), 2005

30. UGVCL Uttar Gujarat Vij Company Limited

31. WREB Western Region Electricity Board

32. WRPC Western Region Power Committee


GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 5

1. Introduction

1.1. Preamble

1.1.1. This section presents the background and reasons for filing of this Petition.

1.2. Introduction

1.2.1. The Government of Gujarat (hereinafter referred to as “GoG”) notified the

Gujarat Electricity Industry (Reorganization and Regulation) Act 2003

(hereinafter called as “Act”) in May 2003 for the reorganization of the entire

power sector in the State of Gujarat.

1.2.2. Pursuant to the above, erstwhile GEB was divided into seven different entities

wherein all its transmission related assets were transferred to newly created

entity Gujarat Energy Transmission Corporation Ltd (hereinafter referred as

“GETCO”).

1.2.3. As per Government of Gujarat’s notification no GHU-2004-31-GEB-1104- 2946-

K, GETCO has been notified as the State Transmission Utility with effect from

1st June 2004.

1.2.4. The Gujarat Electricity Regulatory Commission (hereinafter referred to as

“GERC” or “the Commission”), an independent statutory body constituted

under the provisions of the Electricity Regulatory Commissions (ERC) Act, 1998,

is vested with the authority of regulating the power sector in the State inter

alia including setting of tariff for electricity consumers. The Hon’ble

Commission is now deemed to be the Commission established under Sub-

Section (1) of Section-3 of the Gujarat Electricity Industries (Reorganization and

Regulations) Act, 2003.

1.2.5. Hon’ble Commission notified the Gujarat Electricity Regulatory Commission

(Multi Year Tariff) Regulations, 2011 (“MYT Regulations, 2011”) on 22nd March

2011 which supersedes the GERC (Terms and conditions of Tariff) Regulations,

2005 and GERC (MYT) Regulations, 2007 and shall be applicable for

determination of tariff in all cases covered under these regulations from April

1, 2011 onwards

1.2.6. The Hon’ble Commission issued the order on Truing-up of FY 2009-10, APR for

FY 2010-11 and ARR for the second control period i.e. FY 2011-12 to FY 2015-



16 and Determination of Tariff for FY 2011-12 in line with provisions outlined in

the GERC (MYT) Regulations, 2011 on March 31, 2011. The Hon’ble

Commission issued the order on Truing-up of FY 2010-11 and determination of

Tariff for FY 2012-13 on April 7, 2012 and Truing-up of FY 2011-12 and

determination of Tariff for FY 2013-14 on March 28, 2013.

1.2.7. Under section 62 of the Electricity Act, 2003 and under the MYT Regulation,

2011, GETCO is required to file its true up for FY 2012-13 and Tariff

Determination for FY 2014-15 to the Hon’ble Commission for approval.

1.3. Multi Year Tariff Framework Regulations

The key provisions of MYT Regulation, 2011 issued by GERC are reproduced below.

1.3.1. Section - 3.1 of MYT Regulations, 2011:

“3.1 The Commission shall determine tariff within the Multi Year

Tariff framework for all matters for which the Hon’ble Commission has

power under the Act, including the following cases:

1. Supply of electricity by a Generating Company to a Distribution Licensee;

………………………

2. Intra-State transmission of electricity;

3. Intra-State Wheeling of electricity;

4. Retail sale of electricity.”

(Emphasis Added)

1.3.2. Section - 28 of MYT Regulations, 2011:

“28 Determination of Tariff for Transmission, Distribution Wires Business and Retail Supply Business

28.1 The Commission shall determine the tariff for Transmission Business, Distribution Wires Business and Retail Supply Business based on an application made by the Licensee in accordance with the procedure contained in these Regulations.

28.2 The Commission shall determine the tariff for:

(a) Transmission of electricity, in accordance with the terms and conditions contained in Chapter-5 of these Regulations; ……… “

1.3.3. Section - 17(b) of the MYT Regulations, 2011

“17.........

c) In case of Mid-term Review of Business Plan under Regulation 16.2 (i),

the Petition shall comprise of:

i. Truing up for the previous year;



ii. Modification of the ARR for the remaining years of the Control Period,

if any, with adequate justification for the same;

iii. Revenue from the sale of power at existing tariffs and charges for the

ensuing year;

iv. Revenue gap for the ensuing year calculated based on ARR approved

in the MYT Order and truing up for the previous year;

v. Application for determination of tariff for the ensuing year”

1.3.4. In accordance with the above provisions, GETCO hereby submits the petition

under section 62 of the Electricity Act, 2003 and MYT Regulations 2011 for

True Up for FY 2012-13 and Tariff Determination for FY 2014-15 to the Hon’ble

Commission for approval.



2. Executive Summary

2.1. Preamble

2.1.1. This section highlights the summary of Petition for True Up for FY 2012-13 and

Tariff for FY 2014-15.

2.2. True Up for FY 2012-13

2.2.1. GETCO has worked out its Aggregate Revenue Requirement for FY 2012-13 as a

part of the True Up for FY 2012-13. GETCO has presented the actual cost

components based on audited annual accounts for FY 2012-13. The detailed

comparison of various cost components with the values approved by the

Hon’ble Commission has been presented in Chapter 3. A summary of the

proposed ARR for Truing-up of FY 2012-13 compared with the Approved ARR

for FY 2012-13 is presented in the table given below. The Approved ARR for FY

2012-13 has been taken from the MYT Order dated 31st March, 2011 passed by

the Hon’ble Commission.

Table 1 : True Up for FY 2012-13

Rs in Crores

Sr. No. ParticularsFY 2012-13

(Approved)

FY 2012-13

(Actual)Deviation

1 Net Operation & Maintenance Expenses 625 595 30

2 Depreciation 577 448 129 3 Interest & Finance Charges 397 329 68 4 Interest on Working Capital 40 51 (11) 5 Return on Equity 445 370 74

6 Total Fixed Costs 2,083 1,793 291

7 Add: Provison for Tax 15 81 (66)

8 Total Transmission Charges 2,099 1,874 225

9 Less: Other Income 103 77 26

10 Add: Incentive for target availability - 27 (27)

11 Aggregate Revenue Requirement 1,996 1,824 172

2.2.2. In line with the provisions of the MYT Regulations, GETCO has computed the

gains and losses on account of controllable and uncontrollable parameters and

its proposed sharing mechanism. Summary of the same is outlined in the table

below:



Table 2 : Summary of Controllable & Uncontrollable factors

Rs in Crores


(Approved)

FY 2012-13

(Actual)

Gain/(Loss) due

to Controllable

Factor

Gain/(Loss) due to

Uncontrollable Factor

1 Net Operation & Maintenance Expenses 625 595 199 (168)

2 Depreciation 577 448 - 129 3 Interest & Finance Charges 397 329 - 68 4 Interest on Working Capital 40 51 - (11)

5 Return on Equity 445 370 - 74

6 ARR (1 to 5) 2,083 1,793 199 92

7 Less : Expense Capitalised - - - -

8 Less : Other Income 103 77 - 26

Add: incentive for target availibility - 27 - (27) 9 Add: Provison for Tax 15 81 (66)

10 Total ARR (8 - 9 - 10 + 11) 1,996 1,824 199 (27)

11Net Gains / Losses on account of Controllable/

Uncontrollable factor 199 (27)

12Gain on account of Controllable factor to be passed

on to Consumer (1/3 x Sr. No. 11) 66

13Losses on account of Uncontrollable factor to be

passed on to Consumer (27)

2.2.3. Based on the same, the net revenue gap recoverable from the Open Access

Beneficiaries has been computed and the same would be recovered through

the annual transmission charges in the subsequent year.

2.3. Net Recovery

2.3.1. GETCO has computed the net recovery of the FY 2012-13 as given in the table

given below.

Table 3: Net Recovery for the FY 2012-13

Rs in Crores

Sr. No. Particulars Amount

1Gain / (Loss) on account of Uncontrollable factor to be

passed on to Beneficiaries for FY 2012-13(27)

2

Gain / (Loss) on account of Controllable factor to be

passed on to Beneficiaries (1/3rd of Total Gain / (Loss)

for FY 2012-13

66

3Total Gain/ (Loss) of the true up to be addresesd in

the determination of tariff for FY 2014-15 40

2.4. Tariff Proposal for FY 2014-15

2.4.1. Based on the ARR proposed in Mid-term Review of Business Plan for FY 2014-

15 and the true-up for FY 2012-13, GETCO proposes the following tariff for FY

2014-15.



Table 4: Tariff Proposal for FY 2014-15

Rs in Crores

Sr. No. Particulars FY 2014-15

1Aggregate Revenue Requirement proposed in Mid-

term Review of Business Plan for FY 2014-152,804

2Add revenue Gap / (Surplus) for for FY 2012-13

computed in this petition40

3ARR after considering Gaps of true-up for FY 2012-13

(1+2)2,764

4 Total MW allocation 21,822

5 Transmission tariff Rs/ MW/ day 3,470

2.4.2. GETCO requests the Hon’ble Commission to approve true up for FY 2012-13

and allow us to recover the same through the tariff for FY 2014-15.



3. True Up of FY 2012-13

3.1. Preamble

3.1.1. This section outlines performance of GETCO for FY 2012-13. In line with the

provisions of the MYT regulations, GETCO hereby submits True Up comparing

the actual performance of GETCO during FY 2012-13 with the forecast

approved by the Hon’ble Commission vide MYT Order dated 31st March, 2011.

3.2. Principles for True Up for FY 2012-13

3.2.1. MYT Tariff Regulations, 2011 specifies that the Hon’ble Commission shall

undertake the True Up of licensee for the past financial year i.e. FY 2012-13

based on the actual performance of the last year with the approved forecast

for such year.

3.2.2. In line with the provisions under MYT Regulations, GETCO has filed this True

Up application for FY 2012-13, wherein, GETCO has presented actual audited

data for the FY 2012-13. GETCO is submitting audited actual data for FY 2012-

13 vis-à-vis its comparison with approved figures by the Hon’ble Commission.

3.2.3. Accordingly, actual data for revenue and gap for FY 2012-13 are given in the

following paragraphs of this chapter.

3.2.4. For the purpose of True Up all the expense heads have been categorized into

Controllable and Uncontrollable factors as shown in the subsequent sections. A

head wise comparison has been made between the values approved by the

Hon’ble Commission vide Tariff Order dated 31st March, 2011 under Aggregate

Revenue Requirement for FY 2012-13 and the actual figures for various

expenditures for FY 2012-13.

3.3. Existing Capacity of GETCO in FY 2012-13

3.3.1. The existing capacity of GETCO network was 62569 MVA as on 31st March,

2013. Beside this GETCO is undertaking rapid augmentation of transmission

network to cater the Power requirement across the state.

3.3.2. The table below summarises voltage level wise capacity of GETCO system i.e.

as on 31st March, 2013.



Table 5 : Existing Capacity of GETCO in FY 2012-13 (as on 31st Mar, 2013)

400 KV

(MVA)

220 KV

(MVA)

132 KV

(MVA)

66 KV

(MVA)

TOTAL

(MVA)

1 Amreli 630 1,600 278 2,265 4,773

2 Anjar 630 1,400 120 1,695 3,845

3 Bharuch 315 1,500 350 1,267 3,432

4 Gondal 1,575 1,900 850 2,613 6,938

5 Jambuva 1,000 1,800 1,463 1,997 6,260

6 Junagadh - 1,550 340 2,178 4,068

7 Mehsana 630 1,550 320 1,818 4,318

8 Nadiad 630 1,700 1,125 2,221 5,676

9 Navsari - 2,770 295 2,818 5,883

10 Palanpur 945 1,900 90 2,505 5,440

11 S'nagar 1,500 1,450 253 1,555 4,758

12 Himatnagar 1,000 1,300 340 1,941 4,581

13 Jamnagar - 600 675 1,325 2,600

Total 8,855 21,020 6,498 26,196 62,569

Sr.No. Name of CircleVoltage class (Capacity in MVA)

3.4. Capital Expenditure for FY 2012-13

3.4.1. GETCO had spent significant amount of capital expenditure for construction of

transmission lines and substations during FY 2012-13. To strengthen & improve

availability of the transmission network, GETCO had planned a total capital

expenditure of Rs. 2,277 Crores and incurred an actual expenditure of Rs.

2,149 Crores during FY 2012-13. GETCO has incurred this expenditure in

construction of new substation and transmission lines required for

strengthening of transmission network of GETCO. The details of the capital

expenditure incurred during FY 2012-13 are outlined below.

Table 6 : Capital Expenditure during FY 2012-13

Rs. Crores

FY 2012-13 FY 2012-13Approved Actual

New Projects400 KV Substations 212 199 400 KV Lines 1,076 181 220 KV Substation 20 144 220 KV Lines 244 143 132 KV Lines 23 132 KV Substation 3 66 KV Substation 180 545 66 KV Lines 179 522 Bus Reactor / Shunt Capacitor 15 12 Transformer Bay 2 Total of New Projects 1,925 1,775 R&MRenovation and Modernization 298 207 Augmentation of Sub-station/ Lines 163 Total of R&M 298 370 City Development Plan - 4 Vadodara City Development Plan 54 - OPGW - - Total 2,277 2,149

Particulars

3.5. Funding of CAPEX

3.5.1. The capital expenditure has been funded through internal accruals (equity)

generated by GETCO. The remaining expenditure incurred during FY 2012-13



has been funded through debt. The breakup of funding of capital expenditure

during FY 2012-13 is mentioned below.

Table 7 : Funding of CAPEX

Rs in Crores

Particulars FY 2012-13

(Actual)

CAPEX for the Year 2,149

Capitalization 1,634

Debt 885 Equity 379 Grants 369

3.6. Availability of Transmission System

3.6.1. In FY 2012-13, GETCO has maintained its entire transmission system at

exceptionally high level and achieved system availability of the tune of 99.46%

(more than the benchmark specified in the Regulations for recovery of full

transmission charges i.e. 98%). GETCO had achieved an Availability of 99.46%

during FY 2012-13, which can be considered very high in comparison of other

transmission utilities across India.

3.7. Network Outages & faults

3.7.1. For any transmission system, network outages & faults are the true indicators

of the power system condition. GETCO is taking up timely planned shut downs

for periodic maintenance of its transmission lines and substations. Further,

level of faults in the GETCO network is very low as compared to any other

transmission utility in the country.

3.7.2. Following table indicates the Network outages and Faults for the GETCO

system for the FY 2012-13. It may be worth noting that GETCO has been able

to perform well in maintaining the system to its best level.



Table 8 : Network Outage & Faults for GETCO for FY 2012-13

Network Component Type of Fault UnitMonthly average for the

FY 2012-13

PSD Hrs/100km 3.190

TT Nos/100km 0.093 SF Nos/100km 0.288

ESD Nos/100km 0.015 PSD Hrs/100km 8.207 TT Nos/100km 0.342 SF Nos/100km 0.291



ESD Nos/100km 0.071 Wherein:

PSD : Planned Shut Down

TT : Transient Tripping

SF : Sustained Fault

ESD : Emergency Shutdown

400KV

220KV

132KV

66KV



3.8. Loading of Transmission System

3.8.1. The actual loading of transmission system of GETCO for FY 2012-13 is given in

the table below.

Table 9 : Summary of Loading of Transmission System during 2012-13

Sr. No. Station Rated Capacity Aux Cons (%) Gujarat ShareTransmission Losses

(%)

Total MW on

GETCO System

A GSECL Plants

1 Ukai TPS 850 9.10 850 773

2 Ukai HPS 305 0.70 305 303 3 Gandhinagar TPS Unit 1 to 4 660 10.27 660 592 4 Gandhinagar TPS Unit - 5 210 9.00 210 191 5 Wanakbori TPS Unit 1 to 6 1,260 9.00 1,260 1,147 6 Wanakbori TPS Unit - 7 210 9.00 210 191 7 Sikka TPS 240 10.50 240 215 8 Kutch Lignite TPS 290 12.00 290 255 9 Kadana Hydro 242 1.19 242 239

10 Utran Gas Based 135 4.00 135 130 11 Utran CCPP Extension 374 3.00 374 363 12 Dhuvaran Gas Based - Stage-I 107 3.00 107 104

13 Dhuvaran Gas Based - Stage-II 113 3.00 113 110

Total GSECL Plants 4,996 4,611

B IPPs

1 GIPCL Stage-I 145 2.90 145 141

2 Essar 515 3.00 300 291 3 GPEC (CLP) 655 2.90 655 636 4 GIPCL Stage-II 165 2.90 165 160 5 GIPCL-SLPP 250 10.00 250 225 6 GIPCL-SLPP Extension 250 12.50 250 219 7 GSEG 156 2.90 156 151 8 GMDC - Akrimota 250 11.00 250 223 9 Adani, Mundra - Bid-01 (Unit-1 to 4) 1,320 9.00 1,000 910

10 Adani, Mundra - Bid-02 (Unit - 5 & 6) 1,320 6.50 1,000 935 11 Essar, Vadinar (Salaya) 1,200 6.85 1,000 932 12 ACB Limited 270 200 200

13 Siddhivinayak Glass Industries, Hazira 17 - 17 17

Total IPPs Plant 5,388 5,040

C Share from Central Sector

1 NPC - Tarapur 1&2 320 10.00 160 5 136

2 NPC - Kakrapar 440 12.50 125 5 103 3 NPC - Tarapur 3&4 1,080 10.00 274 5 233 4 NTPC - Korba 2,100 7.21 360 5 316 5 NTPC - Korba Unit-7 500 6.50 96 5 85 6 NTPC - Vindhyachal-I 1,260 9.00 230 5 198 7 NTPC - Vindhyachal-II 1,000 6.50 239 5 212 8 NTPC - Vindhyachal-III 1,000 6.50 266 5 235 9 NTPC - Vindhyachal-IV(Unit - 1) 500 6.50 120 5 106 10 NTPC - Kawas 656 3.00 187 5 172 11 NTPC - Jhanor 657 3.00 237 5 218 12 NTPC - Kahalgaon 1,500 6.50 141 5 125 13 NTPC - SIPAT-I 1,980 6.50 540 5 478 14 NTPC - SIPAT-II 1,000 6.50 273 5 242 15 CGPL, Mundra (TATA UMPP) 4,150 9.00 1,971 1,794 16 SSNNL - Hydro 1,450 0.70 232 5 219

17 NTPC Mauda STPP State - 1 (Unit - 1) 500 6.50 120 5 106

Total Central Sector Share 5,571 4,977

TOTAL 15,955 14,628

CPP Wheeling 168 168

Wind Power capacity 3,093 3,093 Solar Power capacity 857 857 Bio-Mass Power capacity 31 31 Tarini (Madhuban Dam), Mini Hydro 3 3

Areva (Karjan Dam), Mini Hydro 3 3

Total for FY 2012-13 (MW) 20,111 18,784



3.9. Addition to Transmission lines and Substations

3.9.1. The details of transmission lines and substations added during FY 2012-13 are

as follows:

Table 10 : Network Addition of GETCO during FY 2012-13

Voltage Class Substations (No.)Transmission

Lines (Ckt KM)

400 KV - 415

220 KV 4 922

132 KV 1 131

66 KV 75 1,559

Total 80 3,027

3.9.2. For the purpose of calculation of O&M expenses, transmission line addition of

3406 Ckt KM is considered for FY 2012-13 as certified by SLDC while certifying

Transmission System Availability calculation for FY 2012-13.

3.10. Transmission Losses

3.10.1. The actual Transmission losses for FY 2012-13 were 3.89% as against that

approved by the Commission of 4.25%.

Table 11 : Transmission Losses of GETCO for FY 2012-13

ParticularsFY 2012-13

(Approved)

FY 2012-13

(Actual)

Transmission Losses* 4.25% 3.89%

* As per revised methodology approved in Order no. 990/2010

3.11. Annual Fixed Cost for FY 2012-13

3.11.1. Based on the Capital Expenditure and the consequent Capitalisation, Equity

and Debt component, the fixed cost of GETCO for FY 2012-13 have been

determined in accordance with the MYT Regulations, 2011 outlined thereof. As

per the provisions of the regulations, the fixed cost for GETCO is computed

under the following heads:

Operation and Maintenance Expenses

Depreciation

Interest and Finance Charges

Return on Equity

Interest on Working Capital

3.11.2. Net Annual Revenue Requirement has been computed after netting off Other

Income of GETCO.

3.11.3. For the purpose of True Up, all the heads mentioned above has been

categorized into Controllable or Uncontrollable factors in line with provisions

of MYT Regulations, as discussed in Section 3.13 of the application. A head



wise comparison has been made between the values approved by the Hon’ble

Commission vide MYT Order date 31st March, 2011 for True up of 2012-13.

3.12. Categorization of Heads of Expenses

3.12.1. As per provision of section 23 of MYT Regulation 2011, all the expenditure

heads need to be categorized into Controllable (under control of the

Petitioner) and Uncontrollable (not under control of the Petitioner). The

Hon’ble Commission vide its MYT Regulation, 2011 (section 24) has defined the

mechanism for Sharing of Gain/ losses arising on account of uncontrollable &

controllable factors respectively which has been dealt in detail in subsequent

sections.

3.12.2. For above purpose, GETCO has categorized the expenditures used for the

purpose of determination of Annual Transmission charges for FY 2012-13 into

Uncontrollable and Controllable. The categorization for the same has been

shown in table below.

Table 12 : Categorization of Heads of Expenses for FY 2012-13

Sr. No. Particular Category

1. Operations and Maintenance Expenses Controllable

2. Depreciation Uncontrollable

3. Interest on Loan & Finance Charges Uncontrollable

4. Return on Equity Uncontrollable

5. Interest on Working Capital Uncontrollable

6. Other Income Uncontrollable

7. Tax on Income Uncontrollable

3.12.3. Based on the above classification and the reasons given therein, all of the

items of expenditure for FY 2012-13 have been classified as either controllable

or uncontrollable. Accordingly, the Gains/ Losses attributed to such

controllable & uncontrollable factors have been determined in subsequent

sections.



3.13. Operation & Maintenance Expenditure for FY 2012-13

3.13.1. As per MYT Regulations, 2011, O&M Expenses shall be computed based on the

norms provided under 71.5.1 of the Regulations. The normative O&M

expenses, based on the transmission length and no. of bays, for the year 2012-

13 are given below:

Table 13 : Transmission Length & no. of bays for FY 2012-13

FY 2012-13ActualGETCO

1 Based on no. of Bays - Opening no. of Bays No. 8,791 - Addition during the year No. 589 - Average no. of bays during the year No. 9,086

2 Based on no. of Transmission lines - Opening Balance ckt km 44,500 - Addition during the year* ckt km 3,406 - Average lines' length during the year No. 46,203

Sr. No. Particulars Reference

Table 14 : O&M cost (Normative / Actuals) for FY 2012-13

1 Based on no. of Bays - Average no. of bays during the year No. 8787 9,086

- O&M exp norm per Bay Rs.lacs 6.09 6.09

- Total O&M Expenses based on no. of bays Rs. crores 535 553

2 Based on no. of Transmission lines - Average lines' length during the year No. 51166 46,203

- O&M exp norm per ckt km Rs.lacs 0.52 0.52

- Total O&M Expenses based on no. of ckt km Rs. crores 266 240 -

3 Total O&M Expenses (as per norms) Rs. crores 801 794

Particulars ReferenceFY 2012-13

(Approved)

FY 2012-13

(Actual)Sr. No.

3.13.2. GETCO has considered O&M expenses net of expenses capitalised for the FY

2012-13 for working of gain/ (loss) as there is no separate head provided for

expenses capitalised in MYT Regulation, 2011. The net O&M expenses as per

audited annual accounts are as shown in the table below:

Table 15 : Net O&M cost (As per audited accounts) for FY 2012-13

Rs in CroresFY 2012-13

Actual

GETCO1 Employee Costs 359 2 R&M Expenses 183 3 A&G Expenses 53

4 Net Operation & Maintenance Expenses 595

ParticularsSr. No.

3.13.3. O&M expenses are controllable in nature, under Regulation 23 of MYT

Regulations, 2011. However, as per methodology adopted by the Hon’ble



Commission, the variance in the O&M expenses as approved in MYT order and

the normative O&M expense as per actual performance during the year is

considered as uncontrollable. The O&M expenses and Gains / (Losses)

considered in the Truing up for FY 2012-13 are summarised in Table below:

Table 16: Gains / (Losses) from O&M Expenses Rs in Crores


(Approved)

FY 2012-13

(Normative Actual)

FY 2012-13

(As per audited

accounts)

Gain/(Loss) due to

Controllable Factor

Gain/(Loss) due to


1 Net O&M Cost 625 794 595 199 (168)

Net O&M Expenses approved for FY 2012-13 in MYT order dated 31st

March, 2011 is Rs. 625 Crores (Rs. 801 Crores – Rs. 176 Crores)

3.14. Depreciation for FY 2012-13

3.14.1. The actual depreciation charge for FY 2012-13 is Rs. 523 Crores as against Rs.

577 Crores as approved by the commission. The Weighted Average Rate of

Depreciation based on rates approved by the CERC, works out to be 5.05%.

3.14.2. Further, for the amounts received from Government Grants, Consumer

Contributions and Subsidies towards acquisition of fixed assets, GETCO has

been booking @ 11.75% of the closing balance as income during the year. As

we request not to consider Deferred Income on Grants/ Consumer

Contributions as Other income, hence the depreciation on the assets acquired

from Grants/ Consumer Contributions is not included in Depreciation claimed

for the FY 2012-13. The amount of Government Grants/ Consumer

Contributions/ Subsidies as on March 31, 2012 was Rs. 1293.72 and additions

during the year were Rs. 369.46 Crores. Depreciation on the assets funded by

way of Government Grants/ Consumer Contributions/ Subsidies at

Depreciation rate of 5.05% comes to Rs. 75 Crores.



3.14.3. The variation in the amount of depreciation as per the actual cost incurred by

GETCO in FY 2012-13 against the amount approved by the Hon’ble Commission

is Rs. 129 Crores. This can be considered as Gain/ (Loss) on account of

uncontrollable factor and has been appropriately treated as indicated in below

tables.

Table 17 : Depreciation for FY 2012-13

Rs in Crores


(Approved)

FY 2012-13

(Actual)Deviation

1 Gross Block in Beginning of the year 10,437 9,537

2 Additions during the Year (Net) 2,151 1,634 3 Depreciation for the Year 577 523 54 4 Average Rate of Depreciation 5.01% 5.05%

5 Less: Depreciation on Assets funded by Govt. Grants/

Consumer Contributions/ Subsidies not considered75

6 Total Depreciation claimed for FY 2012-13 577 448 129

3.14.4. The variation in the amount of depreciation as per the actual cost incurred by

GETCO in FY 2012-13 against the amount approved by the Hon’ble Commission

is Rs. 129 Crores. This is on account opening balance of assets which have not

been depreciated fully and capitalisation of assets in the year which was less

than the capitalisation amount approved by the Hon’ble Commission and

unclaimed Depreciation on assets acquired from Government Grants /

Subsidies. The amount of depreciation is calculated at CERC approved

Depreciation rates in line with provisions in MYT Regulations, 2011.

Table 18 : Gains/ (Losses) from Depreciation

Rs in Crores


(Approved)

FY 2012-13

(Actual)

Gain/(Loss) due

to Controllable

Factor

Gain/(Loss) due to


1 Depreciation 577 448 - 129

3.15. Interest and Finance Charges for FY 2012-13

3.15.1. The actual Interest & finance charges incurred during FY 2012-13 are Rs. 329

Crores as against Rs. 397 Crores approved by the Hon’ble Commission.

3.15.2. In line with MYT Regulations, 2011, Depreciation for the year (as computed

under the Regulations) has been taken as repayment of loan during the year.

However, as the normative loan is considerably less than actual term loans of

the company, the repayment was taken proportionately to arrive at average

normative loans. The normative opening balance of term loans is Rs. 2,741

Crores as against the actual balance of term loans of Rs. 4,896 Crores as on

March 31, 2012. As it is required to consider opening normative loan as

approved by the Hon’ble Commission and repayment equivalent to



depreciation, GETCO proposes to consider normative repayments

proportionately of normative loans as against actual loans as given below.

Table 19 : Normative Repayments during FY 2012-13

Rs in Crores


1 Depreciaiton during FY 2012-13 523

2 Normative Term LoansOpening Balance 2,741 Closing Balance 3,104 Average Normative Term Loans 2,922

3 Actual Term LoansOpening Balance 4,896 Closing Balance 6,203 Average Actual Term Loans 5,549

4 Proportionate Repayments Considered 275

3.15.3. The value of Interest and Finance Charges approved by the Hon’ble

Commission and those actually incurred by GETCO for FY 2012-13 has Gain/

(Loss) of Rs. 68 Crores. Accordingly, GETCO has compared actual expenses vis-

à-vis the approved expenses and worked out deviation on account of

uncontrollable factors. The same has been outlined in the tables given below:

Table 20 : Interest & Finance Charges for FY 2012-13

Rs in Crores


(Approved)

FY 2012-13

(Actual)Deviation

1 Opening Loans 3,643 2,741

2 Loan Additions during the Year 1,506 885 3 Repayment during the Year 577 275 4 Closing Loans 4,571 3,351 5 Average Loans 4,107 3,046 6 Interest on Loan 395 325

7 Guarantee Charges 2 3.72

8 Total Interest & Financial Charges 397 329 68

9 Weighted Average Rate of Interest on Loan 9.62% 10.67%

Table 21 : Gains/ (Losses) from Interest & Finance Charges

Rs in Crores


(Approved)

FY 2012-13

(Actual)

Gain/(Loss) due

to Controllable

Factor

Gain/(Loss) due to


1 Interest & Finance Charges 397 329 - 68

3.16. Return on Equity for FY 2012-13

3.16.1. GETCO’s actual Return on Equity for FY 2012-13 based on closing equity as per

audited accounts for FY 2011-12 is as indicated below. The return on equity

has been computed based on a rate of return of 14% as provided in the MYT

Regulations, 2011. The comparison between the actual value of Return on

Equity for FY 2012-13 with the value approved by the Hon’ble Commission in



Tariff Order dated 31st March, 2011 for MYT Order shows a Gain/ (Loss) of Rs.

74 Crores, which has been considered on account uncontrollable factor as

indicated below.

Table 22 : Returns on Equity for FY 2012-13

Rs in Crores


(Approved)

FY 2012-13

(Actual)Deviation

1 Opening Equity Capital 2,854 2,455

2 Equity Additions during the Year 645 379

3 Closing Equity 3,499 2,835

4 Average Equity 3,176 2,645

5 Rate of Return on the Equity 14% 14%

6 Return on Equity 445 370 74

Table 23 : Gains/ (Losses) from Returns on Equity

Rs in Crores


(Approved)

FY 2012-13

(Actual)

Gain/(Loss) due

to Controllable

Factor

Gain/(Loss) due to



3.17. Interest on Working Capital for FY 2012-13

3.17.1. Working Capital was computed based on the norms provided in MYT

Regulations, 2011. For computation of maintenance spares, 1% of opening GFA

(i.e. GFA as on April 01, 2005) with 6% yearly escalation and 1% of the average

yearly additions from FY 2005-06 till FY 2012-13 with 6% yearly escalation

considered.

Table 24 : Calculation sheet for Maintenance Spares till FY 2012-13

(Rs. Crores)

Sr. No. Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-131 Opening Balance of GFA 4,049.10 4,433.73 4,861.81 5,453.70 6,067.63 6,762.26 8,109.69 9,536.79

SLDC 3.36 3.36 3.36 3.36 3.36 6.90 6.86 7.58 2 Additions during the year (net) 384.63 428.08 591.89 613.93 694.63 1,347.43 1,427.10 1,634.04

SLDC 3.54 (0.04) 0.72 3 Closing Balance of GFA 4,433.73 4,861.81 5,453.70 6,067.63 6,762.26 8,109.69 9,536.79 11,170.83

SLDC 3.36 3.36 3.36 3.36 6.90 6.86 7.58 7.58 4 Average GFA for the year 4,241.42 4,647.77 5,157.76 5,760.67 6,414.95 7,435.98 8,823.24 10,353.81

5 Spares as % of capital cost 1%Escalation (y-o-y) 6%

6 Maintenance SparesOpening Balance of Assets (i.e. as on March

31, 200540.49 42.92 45.50 48.23 51.12 54.19 57.44 60.88

Assets capitalised during FY 2005-06 3.85 4.08 4.32 4.58 4.86 5.15 5.46 5.78 Assets capitalised during FY 2006-07 4.28 4.54 4.81 5.10 5.40 5.73 6.07 Assets capitalised during FY 2007-08 5.92 6.27 6.65 7.05 7.47 7.92 Assets capitalised during FY 2008-09 6.14 6.51 6.90 7.31 7.75 Assets capitalised during FY 2009-10 6.95 7.36 7.80 8.27 Assets capitalised during FY 2010-11 13.47 14.28 15.14 Assets capitalised during FY 2011-12 14.27 15.13 Assets capitalised during FY 2012-13 16.34 Total 44.34 51.28 60.27 70.03 81.18 99.52 119.77 143.29

3.17.2. For the purpose of computation of Interest on working capital, GETCO has

considered SBI PLR rate as on 1st of April 2012 i.e. 14.75%. The comparison of

actual value of Interest on Working Capital based on above methodology and

the value approved by the Hon’ble Commission indicates a Gain/ (Loss) of Rs.



(11) Crores. This deviation can be considered as loss to GETCO on account of

uncontrollable factor.

Table 25 : Interest on Working Capital for FY 2012-13

Rs in Crores


(Approved)

FY 2012-13

(Actual)Deviation

1 O & M expenses (1 Month) 67 50

2 Maintenance Spares (1% of Cost @ 6 % Escalation) 104 143 3 Receivables (2 Months) 166 152 4 Total Working Capital 337 345 5 Rate of Interest on Working Capital 11.75% 14.75%

6 Interest on Working Capital 40 51 (11)

Table 26 : Gains/ (Losses) from Interest on Working Capital

Rs in Crores


(Approved)

FY 2012-13

(Actual)

Gain/(Loss) due

to Controllable

Factor

Gain/(Loss) due to


1 Interest on Working Capital 40 51 - (11)

3.18. Expenses Capitalised for FY 2012-13

3.18.1. As O&M expenses have been taken based on the norms provided in MYT

Regulations, 2011, expenses capitalised during FY 2012-13 have not been

considered. The approved amount of Expenses capitalised for the FY 2012-13

was shown as a deduction from O&M expenses.

3.18.2. GETCO wishes to submit that the Hon’ble Commission had upheld GETCO’s

appeal against the Order dated 31st March, 2010 in the Order dated 3rd

February, 2011 in the matter of deducting interest capitalised from the ARR.

The relevant extracts of the said order on the Review Petition filed by GETCO

are as given below:

“8.4 Capital Expenditure & Capitalization (Capitalized Expenses):

The Commission acknowledges the concern of GETCO, and decides that the

practise followed by the Commission of deducting interest capitalized from

the ARR is not appropriate, since capitalized expenses had been considered

for estimating debt-equity levels.”

3.18.3. Accordingly, GETCO has not shown expenses capitalized for FY 2012-13.

3.19. Provision of Tax for FY 2012-13

3.19.1. GETCO’s actual tax worked out to Rs. 81 Crores as against approved tax of Rs.

15 Crores resulting into uncontrollable Gain/(Loss) of Rs. (66) Crores.



3.20. Incentive on Transmission Availability

3.20.1. GETCO has achieved an availability of 99.46% for its transmission network

during FY 2012-13.

3.20.2. Regulation 75.1 of the MYT Regulations, 2011 provides that the transmission

licensee shall be entitled to an incentive for increase in annual availability

beyond the target availability. The formula for computation of incentive is

given below:

Incentive = ATC x (Annual Availability Achieved - Target Availability)

(Target Availability)

3.20.3. GETCO has computed the incentive on higher availability based on the target

availability of 98% and the same is presented in the table given below. The

incentive is calculated on Aggregate Revenue Requirement.

Table 27 : Incentive for Higher Availability


1 Target Availability as per MYT Regulations (%) 98.00%

2 Actual Availability (%) 99.46%

3 Aggregate Revenue Requirement 1,824

4 Incentive for Transmission System Availability 27.17

3.21. Revenue from Other Income for FY 2012-13

3.21.1. GETCO would like to submit to the Hon’ble Commission that as per the

accounting policy of GETCO, the Depreciation on assets which are financed by

Grants, Subsidies and Consumer Contribution are considered while computing

the Depreciation in the Annual Accounts. GETCO is recovering Consumer

contribution on pro rata basis towards contribution to cost of upstream

strengthening of Capital assets as pro-rata charges. During the year 2012-13,

GETCO has booked ‘Income towards government Grants / subsidies towards

cost of capital assets (deferred)’ of Rs. 156.98 Crores.



3.21.2. GETCO would like to re-iterate and emphasize the fact that the Depreciation is

a source of funding of the assets which have been financed by Grants and

consumer contribution which would need to be replaced after their estimated

useful life. Thus, in the computation of ARR, Income from Government Grants /

Subsidies amounting to Rs. 156.98 Crores has not been considered (i.e. it has

been subtracted from the total Other Income shown in the Annual Accounts).

As explained in para 3.15.3 and Table no. 16, we have also not considered

Depreciation on the assets acquired from Government Grants / Subsidies. We

request the Hon’ble Commission to accept the stand taken by GETCO.

3.21.3. Income from Interest on staff loan, income from investment will not be part of

other income as Hon’ble Commission is not allowing expenses of interest on

staff deposits.

3.21.4. GETCO’s actual revenue from other sources during FY 2012-13 which includes

income from sale of stores receives etc was found out to be Rs. 77 Crores as

against approved of Rs. 103 Crores resulting into controllable Gain/ (loss) of Rs.

26 Crores.

3.22. Aggregate Revenue Requirement for FY 2012-13

3.22.1. Based on above expenses, table below summarises actual Aggregate Revenue

Requirement for FY 2012-13 for GETCO in comparison with values approved by

the Hon’ble Commission.



Table 28 : Aggregate Revenue Requirement for FY 2012-13

Rs in Crores


(Approved)

FY 2012-13

(Actual)Deviation

1 Net Operation & Maintenance Expenses 625 595 30

2 Depreciation 577 448 129 3 Interest & Finance Charges 397 329 68 4 Interest on Working Capital 40 51 (11) 5 Return on Equity 445 370 74

6 Total Fixed Costs 2,083 1,793 291

7 Add: Provison for Tax 15 81 (66)

8 Total Transmission Charges 2,099 1,874 225

9 Less: Other Income 103 77 26

10 Add: Incentive for target availability - 27 (27)

11 Aggregate Revenue Requirement 1,996 1,824 172

3.23. Sharing of Gains & Losses

3.23.1. MYT Regulations specifies the Mechanism for treatment of Gains and Losses

on account of Uncontrollable and Controllable expenses. The methodology

approved by the Hon’ble Commission for sharing of such gains/ losses is as

follows.

“Mechanism for pass through of gains or losses on account of

uncontrollable factors

The approved aggregate gain or loss to the Generating Company or

Licensee on account of uncontrollable factors shall be passed through as an

adjustment in the tariff of the Generating Company or Licensee over such

period as may be specified in the Order of the Commission passed under

Regulation 9.7 (a).

Nothing contained in this Regulation 10 shall apply in respect of any gain or

loss arising out of variations in the price of fuel and power purchase which

shall be dealt with as specified by the Commission from time to time.

Mechanism for sharing of gains or losses on account of controllable factors

The approved aggregate gain to the Generating Company or Licensee on

account of controllable factors shall be dealt with in the following manner:

(a) One-third of the amount of such gain shall be passed on as a rebate in

tariffs over such period as may be specified in the Order of the Commission

under Regulation 9.7;

(b) One-third of the amount of such gain shall be retained in a special reserve

by the Generating Company or Licensee for the purpose of absorbing the

impact of any future losses on account of controllable factors under clause (b)

of Regulation 11.2; and



(c) The balance amount of gain may be utilized at the discretion of the

Generating Company or Licensee.

The approved aggregate loss to the Generating Company or Licensee on

account of controllable factors shall be dealt with in the following manner:

(a) One-third of the amount of such loss may be passed on as an additional

charge in tariffs over such period as may be specified in the Order of the

Commission under Regulation 9.7; and

(b) The balance amount of loss shall be absorbed by the Generating Company

or Licensee.

3.23.2. As indicated above, GETCO has identified various expenditure heads under

controllable and uncontrollable categories. The gain/ losses arise as a result of

True Up for FY 2012-13 for GETCO shall be suitably passed through the tariff as

per mechanism specified by the Hon’ble Commission.

3.23.3. Table below summarises total Gain/ (Loss) to GETCO during FY 2012-13 on

account of controllable & uncontrollable factors.

Table 29 : Net Gain/ (Losses) for FY 2012-13

Rs in Crores


(Approved)

FY 2012-13

(Actual)

Gain/(Loss) due

to Controllable

Factor

Gain/(Loss) due to


1 Net Operation & Maintenance Expenses 625 595 199 (168)

2 Depreciation 577 448 - 129 3 Interest & Finance Charges 397 329 - 68 4 Interest on Working Capital 40 51 - (11)


6 ARR (1 to 5) 2,083 1,793 199 92

7 Less : Expense Capitalised - - - -

8 Less : Other Income 103 77 - 26

Add: incentive for target availibility - 27 - (27) 9 Add: Provison for Tax 15 81 (66)

10 Total ARR (8 - 9 - 10 + 11) 1,996 1,824 199 (27)

11Net Gains / Losses on account of Controllable/

Uncontrollable factor 199 (27)

12Gain on account of Controllable factor to be passed

on to Consumer (1/3 x Sr. No. 11) 66

13Losses on account of Uncontrollable factor to be

passed on to Consumer (27)

3.23.4. The expenditure-head wise gains/ losses have been dealt in above section.

During FY 2012-13, GETCO incurred a loss of Rs. 199 Crores on account of

controllable factors while the Loss attributed to uncontrollable factors for FY

2012-13 are Rs. (27)Crores.



3.23.5. As per mechanism specified in the MYT Regulation 2011, GETCO proposes to

pass on 1/3rd of total loss on account of controllable factors i.e. Rs. 66 Crores

and total Loss on account of uncontrollable factor i.e. Rs. (27)Crores to the

Consumers.

3.24. Revenue Gap for FY 2012-13

3.24.1. Based on the above head wise comparison of actual expenditure for FY 2012-

13, GETCO has incurred a total Gain/ (Loss) of Rs. 66 Crores on account of

Controllable factor and a total Gain/ (Loss) of Rs. (27) Crores on account of

uncontrollable factors. As discussed above, GETCO has categorized various

expenses incurred during FY 2012-13 as controllable and uncontrollable

factors. Expenses wise gains and losses have been discussed above in section

3.14 to 3.20. Based on approved values for FY 2012-13, GETCO has obtained

Revised Revenue Gap of Rs. 40 Crores after treating gains & losses attributing

to controllable and uncontrollable factor.

3.24.2. Table below summarises Revenue Gap obtained after treating gains and losses

from controllable and uncontrollable factor for FY 2012-13.

Table 30 : Revenue Gap for FY 2012-13

Rs in Crores


1Gain / (Loss) on account of Uncontrollable factor to be

passed on to Beneficiaries for FY 2012-13(27)

2

Gain / (Loss) on account of Controllable factor to be

passed on to Beneficiaries (1/3rd of Total Gain / (Loss)

for FY 2012-13

66

3Total Gain/ (Loss) of the true up to be addresesd in

the determination of tariff for FY 2014-15 40

3.24.3. It is requested to the Hon’ble Commission to approve above revised ARR and

allow GETCO to pass on the Revenue Gap obtained after treating gains/ losses

for FY 2012-13 in the FY 2014-15.



4. Determination of Tariff for FY 2014-15

4.1. Preamble

4.1.1. This chapter outlines the tariff proposed by GETCO for FY 2014-15 based on

the Mid-term Review of Business Plan and the effect of recoveries of the FY

2012-13 after considering the sharing of gains and losses based on MYT

Regulations, 2011.

4.2. Proposal for Determination of Tariff for FY 2014-15

4.2.1. As per regulation 17.2 (b) of MYT Regulation 2011 GETCO is required to file a

petition for determination of tariff for FY 2014-15 based on revenue gap

resulted from previous year.

4.2.2. Based on the true-up of FY 2012-13 & Mid-term Review of Business Plan for FY

2014-15, GETCO propose the following tariff and requests the Hon’ble

Commission to approve the same.

Table 31: Proposed Transmission Tariff for FY 2014-15

Rs in Crores


1Aggregate Revenue Requirement proposed in Mid-

term Review of Business Plan for FY 2014-152,804

2Add revenue Gap / (Surplus) for for FY 2012-13

computed in this petition40

3ARR after considering Gaps of true-up for FY 2012-13

(1+2)2,764

4 Total MW allocation 21,822

5 Transmission tariff Rs/ MW/ day 3,470



5. Compliance of Directives

5.1. Preamble

5.1.1. In the Tariff Order issued by GERC on 31st March 2010, the Hon’ble

Commission has provided certain directives to the GETCO. This section will be

dealing with the latest status of compliance/ action taken by the GETCO for the

directive.

5.2. Compliance of Directives

5.2.1. In the Tariff Order, the Hon’ble Commission has specified following directives

to the GETCO, to which, GETCO is submitting the Compliance, which is as

follows:

Directive 1: Transmission System Availability (Page 95 of MYT Tariff Order No.

1062 of 2011 dated 31th March 2011)

GETCO has furnished the transmission system availability figures in its ARR and

Tariff petition for Truing up for FY 2009-10 and Performance Review for FY 2010-

11. The availability is required to be supported by detailed calculations as

required by GERC Regulations, 2005. The detailed calculation for the availability

of transmission system for FY 2009-10 and FY 2010-11 shall be furnished by April

2011. The claim of incentive for FY 2011-12 to FY 2015-16 shall be supported by

detailed calculation as per GERC (MYT) Regulations, 2011. These calculations

shall be submitted to the Commission within three months after the end of the

relevant year.

Compliance:-

Hon’ble commission specified the methodology to be adopted for calculating

Transmission System Availability (TSA) as per Annexure-II of Notification No 1 of

2011, MYT Regulation 2011_Clause 70: Norms of operation.

As per the provision and procedure for calculation of Transmission System

Availability of GERC (Multi Year Tariff) Regulations, 2011, GETCO furnished

Transmission System Availability for FY 2012-13 duly certified by SLDC are as under:

Transmission System Availability is calculated on the basis of availability of

transmission lines, transformers & reactors. Non availability factor & availability of

transmission lines, transformers & reactors is as under:



1. Transmission Line

a) NAFY (Non availability factor for the year)

NAFY = [

∑ (OH line X Ckt KM X NSC ) ]/

Total available Hrs of year

∑ (Ckt KM X NSC )

NAFY =

69.83 + 102.28 + 29.35 + 61.04

5539.42 + 14708.64 + 5104.21 + 25323.77

↑ ∑ Tr Lines =

400 KV

↑ ∑ Tr Lines = 220 KV



NAFY = 262.51

50676.03

= 0.0052

b) TAFY (Transmission System Availability factor for the year)

TAFY = (100-(100 * NAFY))

= 100- (100 x 0.0052)

= 99.48 %

2. Transformer & Reactor a) NAFY (Non availability factor for the year)

NAFY =

∑ (OH trans X MVA trans X 2.5 ) +

∑ (OH react X MVA react X 4) ]/


∑ (MVA trans X 2.5 ) + ∑ (MVA react X 4)

NAFY = 96.93 + 476.00 + 70.10 + 153.09 + 19.90

19312.50 + 51425.00 + 15325.00 + 61161.25 + 3120.00

↑

∑ X'mer = 400 KV ↑

∑ X'mer =220 KV ↑

∑ X'mer = 132 KV

↑ ∑ X'mer = 66

KV

↑ ∑ Reactor

NAFY = 816.02

150343.75

= 0.0054

b) TAFY (Transmission System Availability factor for the year)

TAFY = (100-(100 * NAFY))

= 100-(100 x 0.0054)

= 99.46 %

Based on the calculation mentioned above, Non availability factor & transmission

availability for the whole GETCO system in FY 2012-13 is as under:

NAFY (Non Availability Factor for the FY 2012-13)

NAFY = [∑ (OH line X Ckt KM X NSC ) +

∑ (OH trans X MVA trans X 2.5 )

+ ∑ (OH react X

MVAR react X 4) ]/


∑ (Ckt KM X NSC ) + ∑ (MVA trans X 2.5

) + ∑ (MVAR react X 4)

NAFY = 262.51 + 816.02

50676.03 + 150343.75

Multiplying factor for Transformer = 2.5

Multiplying factor for Reactor = 4



↑

∑ Tr. Lines

↑ ∑ Transformers &

Reactors

NAFY = 1078.53

201019.78

OH=Outage Hours

= 0.0054

TAFY (Transmission System Availability factor for the FY 2012-13)

TAFY = (100-(100 * NAFY))

= (100-(100 X 0.0054))

= 99.46 %

Directive 2: Reactive Compensation (Page 58 of GERC Tariff Order No. 1262 of 2012

dated 28th March 2013)

The Commission has taken note of the submission made by the Petitioner. The

Commission observes that the pace of installation of 11 kV capacitors is slow. The

Commission therefore directs the Petitioner to expedite this work and to submit a

status report on the work in progress (quarterly).

Compliance/Action taken/initiated:-

The status of work completed as on 08.10.2013 and Action Plan for completion of

balance work of installation of capacitor bank is as under:

Sr. No Work Planned Current Status (as on 18.11.2013)

1 Planning & Progress of installation of 233

Nos. (630 MVAR) of 11KV Capacitor Bank The entire work is completed.

2 Installation of 72 Nos. 11KV capacitor Banks

(180 MVAR)

Execution work is under progress. The current

status is as under:

Capacitor Bank Progress Detail

Installation

Planned

Commissione

d

Testing

Completed Target

72 64 8 Nov-2013

While the installation of above capacitor banks is in progress, there has been good

voltage profile in the main transmission system (400 KV) and sub transmission system

(220 to 66 KV). GETCO is following prescribed voltage limit as per GERC Grid Code_

Notification: No. 5 of 2004 and real time operation data is analyzed in different

seasons for Reactive Power Management.



6. Prayer

GETCO respectfully prays to the Hon'ble Commission;

1. To admit this True Up for FY 2012-13 and Tariff for FY 2014-15.

2. To approve the gains/losses for the True Up for FY 2012-13 and allow sharing of

such gains/losses as prescribed in the MYT Regulations.

3. To approve tariff for FY 2014-15.

4. To approve incentive on availability as prayed.

5. To allow recovery of cost components based on methodology allowed in order as

and when issued by the Appellate Tribunal of Electricity against appeal no. 108 of

2013.

6. To grant any other relief as the Hon'ble Commission may consider appropriate.

7. The petitioner craves leave of the Hon'ble Commission to allow further

submissions, addition and alteration to this Petition as may be necessary from

time to time.

8. Pass any other order as the Hon’ble Commission may deem fit and appropriate

under the circumstances of the case and in the interest of justice.

Declaration that the subject matter of the application has not been raised by the

applicants before any other competent forum, and that no other competent forum

is currently seized of the matter or has passed any orders in relation thereto.

Applicant


Vadodara

DATED: November, 2013



Affidavit verifying the petition I, Surinder Kumar Negi son of Shri Laxman Singh Negi aged 53 residing at A4, Vidyutnagar, Old Padra Road, Vadodara – 390015 do solemnly affirm and say as follows: I am the Managing Director of Gujarat Energy Transmission Corporation (GETCO), the applicant in the above matter and am duly authorized by the said application to make this affidavit. The statement made in the petition here in above, true to my knowledge and belief, which I believe them to be true. Solemnly affirmed at Vadodara on this day of December, 2010, that the contents of the above affidavit are true to my knowledge, no part of it is false and nothing material has been concealed there from. Identified before me

(S. K. Negi)

Date: November, 2013 Place: Vadodara

before the gujarat electricity regulatory commission ahmedabad

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