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
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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
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED
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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
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED
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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
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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-
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 6
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;
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 7
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 8
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:
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 9
Table 2 : Summary of Controllable & Uncontrollable factors
Rs in Crores
Sr. No. ParticularsFY 2012-13
(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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 10
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.
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 11
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 12
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 14
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 0.048 PSD Hrs/100km 9.021 TT Nos/100km 0.788 SF Nos/100km 0.263
ESD Nos/100km 0.061 PSD Hrs/100km 10.325 TT Nos/100km 0.921 SF Nos/100km 0.195
ESD Nos/100km 0.071 Wherein:
PSD : Planned Shut Down
TT : Transient Tripping
SF : Sustained Fault
ESD : Emergency Shutdown
400KV
220KV
132KV
66KV
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 15
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 16
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 17
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 18
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 19
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
Sr. No. ParticularsFY 2012-13
(Approved)
FY 2012-13
(Normative Actual)
FY 2012-13
(As per audited
accounts)
Gain/(Loss) due to
Controllable Factor
Gain/(Loss) due to
Uncontrollable Factor
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 20
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
Sr. No. ParticularsFY 2012-13
(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
Sr. No. ParticularsFY 2012-13
(Approved)
FY 2012-13
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable Factor
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 21
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
Sr. No. Particulars Amount
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
Sr. No. ParticularsFY 2012-13
(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
Sr. No. ParticularsFY 2012-13
(Approved)
FY 2012-13
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable Factor
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 22
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
Sr. No. ParticularsFY 2012-13
(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
Sr. No. ParticularsFY 2012-13
(Approved)
FY 2012-13
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable Factor
1 Return on Equity 445 370 - 74
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 23
(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
Sr. No. ParticularsFY 2012-13
(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
Sr. No. ParticularsFY 2012-13
(Approved)
FY 2012-13
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable Factor
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 24
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
Sr. No. Particulars FY 2012-13
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 25
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.
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 26
Table 28 : Aggregate Revenue Requirement 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
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
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 27
(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
Sr. No. ParticularsFY 2012-13
(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)
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 28
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
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
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.
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GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 29
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
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
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 30
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:
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 31
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
↑ ∑ Tr Lines = 132 KV
↑ ∑ Tr Lines = 66 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) ]/
Total available Hrs of year
∑ (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) ]/
Total available Hrs of year
∑ (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
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 32
↑
∑ 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.
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 33
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
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED
Vadodara
DATED: November, 2013
True Up of FY 2012-13 Tariff Petition for FY 2014-15
GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED 34
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