SOUTHERN REGIONAL POWER COMMITTEE

MINUTES OF THE FIRST COMMERCIAL SUB-COMMITTEE MEETING OF

SRPC HELD AT BANGALORE ON 27.07.2006.

1. INTRODUCTION

The first Meeting of the Commercial Sub-Committee of SRPC was held at

Conference hall of SRPC Secretariat, Bangalore on 27th

July 2006. The list of

participants is at Annexure-I.

Member Secretary, SRPC in chair welcomed all the participants to the first meeting

of Commercial Sub-Committee. He said that Government of India vide Resolution

dated 25th

May 2005 had notified establishment of Southern Regional Power

Committee followed by amendment Resolution dated 29th

November 2005. He added

that the first meeting of SRPC held at Chennai on 6th

June 2006 finalised Conduct of

Business Rules, 2006 of Southern Regional Power Committee.

The participants introduced themselves.

The agenda items were taken up for discussion.

2. NOMINATIONS TO COMMERCIAL SUB-COMMITTEE

Member Secretary, SRPC said that as per the Clause 20.2.1 of Conduct of Business

Rules, 2006 of SRPC, the nomination for the Commercial Sub-Committee has been

invited from the constituent Members of SRPC. List of nominations received from the

constituents for the Commercial Sub-Committee of SRPC is at Annexure-II.

Nomination was yet to be received from Global Energy Ltd.

3. AUDIT OF SR UI & REACTIVE ENERGY ACCOUNTS

In clause 6.1(d), Para (10) of Annexure-I of Revised IEGC in force from 1st April

2006, it has been provided that RLDC shall table the complete statement of the

regional UI account and the Reactive Energy account in the RPC’s Commercial

Committee meeting, on a quarterly basis, for audit by the latter.

Accordingly, UI and Reactive accounts for the period from 01.04.2006 to

02.07.2006 were tabled by SRLDC for audit by the Committee.

On a query from the representative of SPPCC, Karnataka on meaning of “audit”,

Member Secretary, SRPC and GM, SRLDC clarified that the auditing is

reconciliation of the accounts issued by SRLDC.

TNEB representative said that the Commercial Committee Meeting should be

conducted monthly to reconcile the weekly accounts on monthly basis. Other

constituents also expressed need for monthly meetings of the Commercial Committee.

Member Secretary, SRPC said that Conduct of Business Rules, 2006 of SRPC

stipulate that the meeting of Commercial Committee will be held quarterly and that

the request of the constituents will have to be looked into.

Member Secretary, SRPC said that some of the constituents had brought some issues

on weekly accounts issued by SRLDC. In the meeting the constituents informed that

that they had already resolved all the issues mutually.

Member Secretary, SRPC said that in the monthly REA prepared by SRLDC

bifurcation of energy to the ESCOMs of Karnataka and DISCOMS of Andhra Pradesh

was not available. He added that SRLDC in their communication dated 12th

June 2006

addressed to TSS, MAPS in response to MAPS Fax Message Ref. NPC-MAPS/MIS-

TU/2006 dated 09.06.2006 had indicated that as per the Indian Electricity Act, 2003

and the revised IEGC, the SLDCs were responsible for keeping the accounts of the

quantity of electricity transmitted through the state’s grids and preparation of intra-

state energy accounts.

Members after detailed deliberations stated as under:

Andhra Pradesh :

DISCOMS as individual entities were beneficiaries to the ISGSs and hence the

bifurcation of energy from ISGS should be given by SRLDC only.

Karnataka :

Bifurcation of energy shall be carried by SRLDC as done by erstwhile SREB in

the monthly REAs.

KSEB :

Distribution companies are beneficiaries of ISGS; it is appropriate to give

bifurcation by SRLDC.

NTPC :

Bifurcation from CGS should be given by SRLDC. SLDC will do for generating

stations for which allocations are made by respective states.

NLC :

With regard to preparation of REA for all the beneficiaries, DISCOMS and

ESCOMS, it is better for CGS to have the same from single agency.

KGS :

SRLDC should do the bifurcation.

PGCIL :

It is a desirable activity. SRLDC had quoted some IEGC provisions. Interpretation

of IEGC involved. Go back to CERC for clarification. SRLDC views are

appropriate.

TNEB and Elec. Dept. Pondy had no comments to offer.

SRLDC:

As per the Indian Electricity Act, 2003 and the revised IEGC, the SLDCs are

responsible for keeping the accounts of the quantity of electricity transmitted

through the State’s grids and preparation of intra-state energy accounts.

Member Secretary, SRPC stated that CERC on many occasions had advised

resolution of issues among the parties concerned and a petition to CERC should

be the last resort. Accordingly, he advised SRLDC to consider acceding to the

request for furnishing bifurcated accounts to the DISCOMS & ESCOMS, which

were direct beneficiaries to the ISGS. He also suggested that SRLDC should seek

clarifications in case they had doubts about the provision relating bifurcating

accounts to DISCOMS & ESCOMS having direct share in ISGS.

G.M., SRLDC reiterated that as per the Indian Electricity Act, 2003 and the

revised IEGC, the SLDCs are responsible for keeping the accounts of the quantity

of electricity transmitted through the State’s grids and preparation of intra-state

energy accounts

3.1. COMPUTAION OF UI EXCHANGES BETWEEN WR-SR AND ER-SR

Member Secretary, SRPC said that as per clause 7.6.2 of revised IEGC effective from

1.4.2006, WR-SR UI exchanges shall be at the UI rate at WR frequency and ER-SR

UI exchanges shall be at the UI rate at ER frequency. SRLDC had issued UI accounts

for WR-SR & ER-SR inter- regional UI exchanges at the UI rate pertaining to SR

frequency.

Member Secretary further added that the agenda item lost relevance in the context of

CERC’s Suo Motu order dated 23rd

June 2006, in the matter of Indian Electricity Grid

Code, in response to CTU letter dated 5.4.2006, wherein it was directed that the pre-

existing practice of UI accounting for inter-regional exchanges shall continue with

effect from 1.4.2006. Copy of the order is enclosed as Annexure III.

3.2. COMPUTATION OF TALCHER STPS-II INJECTION

The computation of actual injection of Talcher STPS-II for accounting purposes was

done using SEMs installed on the outgoing feeders till 31.03.2006.

Clause 7.4.6. of revised IEGC to take effect from 1st April 2006, provided that the

actual injection of Talcher STPS-II shall be as metered on 400kV side of generator

transformers of Talcher STPS-II units. Accordingly, SRPC/SRLDC implemented the

above.

NTPC in the special meeting of TCC held at SRPC Secretariat on 26th

April 2006 had

stated that it would be appropriate to wait for regulations of CEA on installation and

operations of meters.

The Central Electricity Authority (Installation and Operations of Meters) Regulations,

2006 has come into force from 22nd

March 2006, as per which the computation of

actual injection of Talcher STPS-II for accounting purposes shall be done with meters

installed on all outgoing feeders.

Vide their letter dated 9th

May 2006, DGM ( OS/SIIS ), Corporate Office, NTPC had

brought out that the context prevailing during the special meeting of TCC of April

2006 was different and the regulations of CEA which were directly arising out of

Section 73 (e) of Electricity Act, 2003 would be overriding the provisions of IEGC, if

any to the contrary, as provided under Section 79 (h) of the Act. Accordingly NTPC

representative requested that the metering practice specified by CEA regulations

should be followed. SRLDC for their computation were still using the provisions of

clause 7.4.6 of revised IEGC effective from 1st April 2006, it was seen.

Further, NTPC representative explained the metering scheme at Talcher STPS-II. He

said that while engineering the metering scheme, measurements on the outgoing

feeders are only considered. CEA regulations were framed in consultation with all

concerned utilities and Indian Electricity Grid Code (IEGC) does not have any

stipulation on metering. He added that under ‘ Role of CEA’, clause 2.5.1(1)(v) of

IEGC, one of the functions of CEA is to specify the conditions for installation of

meters for transmission and supply of electricity. The actual injection of Talcher

STPS-II given in Para 6 in Chapter-7 of IEGC may be incidental.

GM, SRLDC said that they were aware of CEA regulations, but IEGC provision also

was to be viewed and in this regard clarification should be obtained. He added that till

such time the existing scheme would be continued.

Expressing concurrence to the aspect that under ‘Role of CEA’ defined under Clause

2.5.1(1)(v) of IEGC, that the function of CEA was to specify the conditions for

installation of meters for transmission and supply of Electricity, Member Secretary,

SRPC said that mention by CERC in IEGC Chapter 7 Para 6 could only be incidental

in the overall context (taking mention in clause 2.5.1(1)(v) of IEGC also into account)

and that since accounting was done by SRLDC, they may have to seek clarification

appropriately.

NTPC representative also requested G.M., SRLDC to seek clarification from CERC.

4. COMPUTATION OF UI, FORMULAE FOR AVAILABILITY & PLF FOR NLC

TPS-11 STATION

Member Secretary, SRPC informed that the methodology for computation of UI and

formulae for computation of Availability and PLF in respect of NLC TPS-II station

(enclosed at Annexure-IV) based on clause 10 of CERC order dated 3rd

March 2006

(last but one clause) in NLC Petition No.1/2006 have been discussed in the special

meeting of TCC held at SRPC Secretariat on 26th

April 2006. The constituents had

said that they would examine the methodology/formulae and revert back.

Accordingly, the committee had decided to defer the item for subsequent discussion.

He informed that no communication has been received subsequently from the

constituents in this regard.

NLC representatives explained Method-3 detailed in Agenda for this meeting and it

was expressed that NLC preferred Method-3, but they were agreeable for any of the

methods.

KSEB representative said that they were agreeable for Method-3.

After deliberations, the other constituents intimated that they would further examine

the methodology /formulae suggested for subsequent discussion in the next meeting.

5. LOSS ESTIMATION METHODOLOGY

Member Secretary, SRPC said that the drawal schedules are computed based on the

estimated notional transmission loss (average actual loss in the system computed from

the SEMs for the 2nd

week prior to the current week). It has been observed that

considerable difference arose in weekly accounts between UI amount payable and

receivable. One of the reasons was the difference in scheduled loss and actual loss in

the system.

The representative of SPPCC, Karnataka said that as per the clause 27 (vii) of CERC

(Terms and Condition of Tariff) Regulations, 2004 dated 26th

March 2004, for

calculating the net drawal schedules of beneficiaries, the transmission losses shall be

apportioned to their drawal schedule for the time being. Provided that refinement may

be specified by the Commission in future depending on the preparedness of the

respective Regional load Despatch Centre. He added that as Commission had not

come out with any proposal, UI would be computed replacing scheduled loss with

actual loss.

TNEB representative said that while computing UI, scheduled loss would be replaced

with actual loss.

KSEB representative said that Demand based loss percentage based on the day

conditions to be adopted.

Member Secretary, SRPC said that post facto revision of schedule to compensate for

difference between estimated loss and actual loss was not proper. The item has been

included for the discussion with a view to discuss on necessity/methods to revise the

methodology for loss estimation with the idea of narrowing the gap between estimated

and actual loss. This was required since the cost of loss was sizeable.

G.M., SRLDC said that loss percentage is not the main factor contributing wide gap

between UI charges payable and receivable.

After deliberation the Committee decided to defer the item for further discussion.

6. UI ACCOUNT FOR THE WEEK 26.06.06 TO 02.07.06

Member Secretary, SRPC informed that in the UI account for the week from 26.06.06

to 02.07.06, inter regional UI in respect of ER & WR were at payable side and the

receivable amount by the constituents of SR was less than even that payable by

ER&WR. Hence after restricting lesser of the two as per approved methodology there

was a surplus amount of Rs.1,16,40,193. SRLDC issued the UI account stating that

surplus amount of Rs.1,16,40,193/- is retained in the SR Pool and the same will be

discussed for finalisation of approach in the forth -coming Commercial Sub-

Committee meeting of SRPC.

The Committee decided to distribute the amount to the beneficiary constituents in the

overall ratio of weighted average entitlement in ISGS for sharing transmission

charges for the month of June 2006 and to transfer the amount to CTU’s transmission

account by way of credit in transmission charges of the respective beneficiary

constituents.

SRLDC, PGCIL and beneficiary constituents agreed for the implementation.

7. WHELING CHARGES FOR WHEELING ISGS POWER ON STATE OWNED

LINES.

KSEB and TNEB representatives informed that in the monthly REA wheeling charges

was not tallying with that furnished in the SEM raw data.

The Committee felt and suggested that such issues could be sorted out by the

constituents by mutual interaction with SRLDC.

8. DATE AND VENUE OF NEXT MEETING

The meeting of the Commercial Sub-Committee of SRPC for the second quarter could

be held in October 2006, it was noted. Venue and date of the meeting would be

finalised and intimated in due course.

9. VOTE OF THANKS

Member Secretary, SRPC & Chairperson of the Commercial Sub- Committee thanked

all the participants for their active participation and co-operation extended to conduct

the meeting.

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ANNEXURE – I ( Page 1 of 1)

MEETING OF THE COMMERCIAL COMMITTEE OF SRPC HELD AT BANGALORE ON 27.07.2006

LIST OF PARTICIPANTS Andhra Pradesh Shri Y.K.Reddy Superintending Engineer,IPC,APCPDCL Shri A.Subbaratnam Superintending Engineer(Comml-II), APPCC Karnataka Shri S.S.Kulkarni S.E.E,SPPCC Shri M.Visweswara Rao E.E.E,SPPCC Shri V.Bharathesha Rao Asst. Executive Engineer, SPPCC Shri K.N. Srinivasa Murthy Executive Engineer,KPCL Kerala State Electricity Board Shri S.R.Anand Executive Engineer,LD,SLDC Smt. Baby Gleena Assistant Engineer, LD,SLDC Tamil Nadu Electricity Board Shri A.Murthy Superintending Engineer,LD &GO Shri A.Arun Kumar Samuel Assistant Executive Engineer,Grid Electricity Department Pondicherry Shri K.Mathivanan Executive Engineer, SCC. Shri V.Sridharan Assistant Engineer,SCC. National Thermal Power Corporation Ltd. Shri P.P.Francis Dy. General Manager (OS /SIIS), CC, New Delhi Shri S.S.Mani Dy. General Manager (Commercial), SRHQ Shri P.Krishna Gopal Dy. General Manager (OS), SRHQ Shri R.S.Krishnan Dy. General Manager (Commercial), Banagalore Neyveli Lignite Corporation Ltd. Shri R.Suresh Deputy General Manager (Commercial) Shri S.Ramachanran Deputy General Manager (Planning) Kaiga Generating Station. Shri K.Pavanan STE (E &I) Power Grid Corporation of India Ltd. Shri V.K.Agrawal General Manager, SRLDC Shri P.Bhaskar Rao Deputy General Manager(Commercial), SRLDC Shri K.Ramakrishna Deputy General Manager(OS), SRLDC Shri A.Naga Raju Chief Manager (Commercial), SR-II Shri V.Balaji Chief Manager, SRLDC Smt Shamreena Verghese Deputy Manager, SRLDC Shri A.Ravindra Engineer, SRLDC Southern Regional Power Committee Shri K.Srinivasa Rao Member Secretary Shri Magudapathi Superintendent Engineer Shri Rakesh Goyal Executive Engineer Shri N.Manjunatha Assistant Executive Engineer Shri S.P.Abraham Assistant Executive Engineer Shri S.K.Rajendra R. Assistant Engineer Shri K.P.Madhu Assistant Engineer

ANNEXURE-II

( Page 1of 1)

LIST OF NOMINATIONS FOR THE COMMERCIAL SUB-COMMITTEE OF

SRPC

As on 10.08.2006

Sl.

No.

Constituent

Member

Remarks

1

Andhra

Pradesh

1.Chief Engineer ( Comml.),APPCC

2.CGM ( Comml.),APCPDL *

* APCPDCL/

APSPDCL/

APEPDCL/

APNPDCL

on yearly rotation

in that order.

2

Karnataka

1. Chief Engineer (ED),KPCL

2. Superintending Engineer (E), SPPCC

3. Executive Engineer, TBC, KPTCL

3

Kerala

Executive Engineer ( LD ), SLDC, KSEB

4

Tamil Nadu

1.Superintending Engineer (LD&GO ), TNEB

2.Executive Engineer ( Grid), TNEB

5.

Pondicherry

Executive Engineer/ S.C.C., ED

6.

NTPC

General Manager ( Comml. ),CC, New Delhi.

HOD ( Comml.), SRHQ, Secunderabad #

# Alternate Member

7.

NLC

Deputy General Manager ( Comml. )

Additional Chief Manager ( Comml.) #

# Alternate Member

8.

NPCIL

1.Station Director, MAPS

2.Station Director, KGS

9.

PGCIL

1.Deputy General Manager ( Comml. ), SRLDC

2.Chief Manager ( Comml.), SRTS-II

10.

CEA

Director, G.M. Division

11.

Global

Energy Ltd.

Yet to be received

IPP (< 1000 MW)

representative.

ANNEXURE-IV

( Page 1 of 2 )

1.COMPUTATION OF UI NLC TPS-II STATION:

While computing UI for Stage-I and Stage – II the net injection from Stage-I&II

arrived after deducting mines actual consumption. The following methodology can be

adopted for the apportionment of Actual Mines Consumption for computation of Stage-

I&II actual generation for UI purposes:

Method-1

Mines Allocation from Stage-I =7.94%

Mines Allocation from Stage-II =5.95%

Net DC of Stage-I = A

Net DC of Stage-II = B

Anticipated Mines Consumption from Stage-I ={( A/100-7.94)}*(7..94/100)= M1

Anticipated Mines Consumption from Stage-II ={( B/100-5.95)}*(5..95/100)= M2

Total Anticipated Mines Consumption = M1+ M2 = AM

Actual Mines Consumption = MC

Actual Ex-Bus Generation of Stage-I =C

Actual Ex-Bus Generation of Stage-II =D

Net injection of Stage-I ( UI purpose ) = C- ( MC/AM)*M1

Net injection of Stage-II ( UI purpose ) = D- ( MC/AM)*M2

Method-2

Anticipated Mines Consumption from Stage-I

as furnished by NLC

= M1

Anticipated Mines Consumption from Stage-II

as furnished by NLC

= M2

Total Anticipated Mines Consumption = M1+ M2 = AM

Actual Mines Consumption = MC

Actual Ex-Bus Generation of Stage-I =C

Actual Ex-Bus Generation of Stage-II =D

Net injection of Stage-I ( UI purpose ) = C- ( MC/AM)*M1

Net injection of Stage-II ( UI purpose ) = D- ( MC/AM)*M2

ANNEXURE-IV

( Page 2 of 2 )

Method-3

Mines Allocation from Stage-I =7.94%

Mines Allocation from Stage-II =5.95%

Actual Ex-Bus Generation of Stage-I = A

Actual Ex-Bus Generation of Stage-II = B

Anticipated Mines Consumption from Stage-I =( A* 7.94/100)= M1

Anticipated Mines Consumption from Stage-II =( B* 5.95/100)= M2

Total Anticipated Mines Consumption = M1+ M2 = AM

Actual Mines Consumption = MC

Net injection of Stage-I ( UI purpose ) = A- ( MC/AM)*M1

Net injection of Stage-II ( UI purpose ) = B- ( MC/AM)*M2

Based on the net injection arrived above and the total beneficiaries’ schedule UI can be

computed.

2. COMPUTATION OF AVAILABILITY & PLF NLC TPS-II STATION

The formulae given in page Nos.6 & 8 of the CERC (Terms and conditions of Tariff)

regulations, 2004 for computation of Availability and PLF needs modification.

The following are the proposed modified formulae for NLC TPS-II Stage-I & II:

N

Availability = 1000000 x ∑ DCi / {Nx ICx (100-AUXn) ( 100 – MINEn)} %

i=1

Where,

DCi = Average declared capacity for the ith

day of the period in MW,

N = Number of days during the period,

IC = Installed capacity of the generating station in MW,

AUXn = Normative Auxiliary Energy Consumption as a percentage of gross generation and

MINEn= Normative Mines allocation as a percentage of gross generation as notified by GOI.

N

PLF = 1000000 x ∑ SGi / {Nx ICx (100-AUXn) ( 100 – MINEn)} %

i=1

Where,

SGi = Scheduled Generation in MW for the ith

time block of the period.

N = Number of days during the period,

IC = Installed capacity of the generating station in MW,

AUXn = Normative Auxiliary Energy Consumption as a percentage of gross generation and

MINEn= Normative Mines allocation as a percentage of gross generation as notified by GOI.

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