CHHATTISGARH STATE ELECTRICITY REGULATORY COMMISSION RAIPUR

Petition No. 21 of 2013(T) Petition No. 22 of 2013(T) Petition No. 03 of 2013(T) Present: Manoj Dey, Chairman Vinod Shrivastava, Member
In the matter of

(1)

Approval of Final True up for FY 2006-07 to December, 2008 (CSEB Period), FY 2008-09 (January, 2009 to March, 2009) & FY 2009-10, FY 2010-11 and Provisional True up for FY 2011-12 and Multi-Year Aggregate Revenue Requirement for FY 2013-14 to FY 2015-16 for Chhattisgarh State Power Generation Co. Ltd.

(2)

Approval of Final True up from FY 2006-07 till FY 2010-11 & Provisional True up for FY 2011-12 & Annual Performance Review for FY 2012-13 & Approval of ARR for MYT Control Period FY 2013-16 for Chhattisgarh State Power Transmission Co. Ltd.

(3)

Approval of CSEBs revised true up for FY 2006-07, and final true up FY 2007-08 and FY 2008-09 (Apr to Dec) & CSPDCL period final True-UP for FY 2008-09 (Jan-Mar 2009), 2009-10, 2010-11 &

Annual Revenue Requirement FOR Control Period from 2013-14 to 2015-16 & Retail Tariff request for FY13-14 for Chhattisgarh State Power Distribution Co. Ltd. (4) Implementation of the Hon'ble Appellate Tribunal for Electricity judgment on previous Tariff Orders related to erstwhile CSEB / Chhattisgarh State Power Companies.

Tariff Order FY 2013-14

ORDER (Passed on 12.07.2013)

1.

As per provisions in the Tariff Policy and the Electricity Act, 2003 (hereinafter referred as 'the Act') the Commission framed the Multi Year Tariff Regulations i.e., the CSERC (Terms and Conditions for determination of tariff according to Multi-Year Tariff principles and Methodology and Procedure for determination of Expected revenue from Tariff and Charges) Regulations, 2012 (hereinafter referred as 'MYT Regulations, 2012').

2.

According

to

provisions

of

the

Regulation

5.2

of

the

MYT

Regulations, 2012, the companies were required to file petition for approval of Aggregate Revenue Requirement (ARR) for the Control Period from FY 2013-14 to FY 2015-16 and determination of tariff for FY 2013-14, latest by 30th November 2012. 3. On requests submitted by the companies from time to time, the Commission extended the date of filing the petition repeatedly and finally up to 15th January 2013. But the Companies failed to file the said petition within extended time. Considering the failure of companies in filing of tariff petition even after the extended date and in pursuance with the direction of the Hon'ble Tribunal in OP No. 01 of 2011 and powers conferred under Section 62 and 64 of the Act, MYT Regulations, 2012 and CSERC (Conduct of Business) Regulation 2009, the Commission initiated the suo motu

proceedings to determine the ARR of Companies for Control Period from FY 2013-14 to FY 2015-16 and tariff for FY 2013-14 and registered suo motu petitions No. 04 of 2013 (T) on 23.01.2013 for

Tariff Order FY 2013-14

CSPGCL, No. 05 of 2013 (T) dated 23.01.2013 for CSPTCL and No. 03 of 2013(T) on 23.01.2013 for CSPDCL. 4. Subsequently, CSPGCL and CSPTCL filed petitions on 08.02.2013 and requested for discontinuance of the suo motu proceedings, which were registered at No. 21 of 2013(T) and 22 of 2013(T) respectively. The Commission accepted the request and dropped the suo motu proceedings against CSPGCL and CSPTCL. CSPDCL also filed petition on 06.02.2013, however, as the same was found short of some of the requirements specified in the Regulations, the Commission decided to merge the petition filed by CSPDCL with the suo motu petition No. 03 of 2013. 5. The petitions were made available on the website of the Commission as well as to the petitioners. A public notice along with the gist was also published in the news papers. Objections/suggestions were invited as per the procedure laid down in the Regulations. Further, the Commission conducted a hearing on the Petitions on

16.05.2013. Taking into account all the views / suggestions / objections and after performing due diligence on each of the issue, the Commission has finalised its views. 6. In the tariff order 2011-12 passed on 31.03.2011, the Commission had decided the final true up of FY 2005-06 and FY 2006-07 and provisional true up of ARR for the FY 2007-08 and FY 2008-09 (post facto ARR approval) for CSEB up to 31.12.2008 and for the State Power Companies for the period 01.01.2009 to 31.03.2009.

Provisional true up for the power companies was also carried out for FY 2009-10. Further, vide the tariff order for FY 2012-13 passed on 28.04.2012 provisional true up of FY 2010-11 and APR for FY 201112 was undertaken.

Tariff Order FY 2013-14

7.

The companies have, in this petition, prayed for final true-up of ARR of CSEB for FY 2007-08 and 2008-09 (till December 2008) for which statutory audit has been completed by the Accountant General (Audit) (AG audit, for short). The companies have also prayed for final true-up of ARR for FY 2008-09 (January-Mar 2009), final true up for FY 2009-10 and FY 2010-11 and provisional true up for FY 2011-12.

For this purpose the companies have jointly submitted the true-up data including accounts pertaining to the period of CSEB i.e. up to 31st December, 2008 and have submitted company-wise data for the period from 1st January, 2009.

The Commission in this tariff order has also complied the directions given by the Honble Tribunal in appeal No. 89 of 2011 and RP No. 10 of 2012 filed by CSPDCL against the Tariff Order for FY 2011-12. The final true up for FY 2005-06 and FY 2006-07 have also been revisited for the said purpose. This order is also subject to the outcome of appeal No. 173 of 2012 filed by CSPDCL against the Tariff Order for FY 2012-13. Further, the allocation of surplus revenue available for the CSEB period, in accordance to Honble Tribunal judgment dated 14.08.2012, has been revisited by this Commission vide suo motu P. No. 47 of 2012 (M). The prior period surplus has been redistributed accordingly.

8.

For the purpose of revised true-up for FY 2005-06 and 2006-07, the Commission has followed the Honble Tribunal Judgment. For True up from FY 2007-08 to FY 2009-10, the Commission has followed its CSERC (Terms and Conditions for Determination of Tariff)

Regulations, 2006. For Final True up of FY 2010-11 and provisional

Tariff Order FY 2013-14

True up of FY 2011-12, the CSERC (Terms and Conditions of determination of tariff according to Multi-Year Tariff principles) Regulations, 2010 have been applied and the MYT Regulations, 2012 have been applied for determination of ARR for FY 2013-14 to FY 2015-16 and tariff for FY 2013-14. These Regulations embody the principles for determination of tariff, enunciated in the Act. In passing this order, the Commission has also been guided by the National Electricity Policy (NEP), 2005 and Tariff Policy, as mandated under the provisions of the Act. The Commission has taken care to ensure that the revenue requirements of the companies are based, on reasonable and prudent expenditure required to serve the consumers efficiently and effectively. 9. As per the petitioners submission, truing up for the CSEB period results in a surplus of Rs 1212 Crore. Following the ratio decidendi of the Honble Tribunal judgment in appeal No. OP 01 of 2011, the Commission has considered carrying cost for the revenue gap. At the same time, following the corollary, gains from revenue surplus held by the CSEB / successor companies have also been accounted. The Commission, after prudence check, and accounting for gains from revenue surplus, has approved a surplus of Rs. 1880 Crore for the period till 31.12.2008. In accordance to the Commissions order dt 11.07.2013 in suo motu P. No. 47 of 2012, the surplus has been allocated to the CSPGCL, CSPTCL and CSPDCL in the ratio 52.57%, 15.69% and 31.74% respectively. The surplus so allocated to the three companies along with their cumulative surplus / deficit for the period FY 2008-09 (January to March), FY 2009-10, FY 2010-11 and FY 2011-12 have been adjusted to meet the revenue gap of CSPDCL at the end of FY 2012-13.

Tariff Order FY 2013-14

10.

For the MYT period FY 2013-14 to FY 2015-16, CSPGCL has submitted tariff proposal for its three thermal power stations namely KTPS Korba East, HTPS Korba West and DSPM TPS, Korba. It has also submitted proposal for hydro power stations HBPS Bango. The Annual Fixed Cost (AFC) and Energy Charge rate, as claimed by the petitioner and as approved by the Commission, for the aforesaid stations is decided as under :-

Thermal Power Stations

Particulars Annual Fixed Cost Energy Charge Rate for Specific Fuel Oil consumption Energy Charge Rate for Primary Fuel Energy Charge Rate (ex-bus power plant basis) Rs. Crore Rs./kWh Rs./kWh Rs./kWh FY 2013-14 HTPS KTPS 414.34 294.21 0.055 0.111 0.879 0.934 1.043 1.154

DSPM 478.46 0.055 0.897 0.952

Hydro Power Station

Hasdeo Bango Approved ARR Approved Net Generation Approved Tariff for Hasdeo Bango FY 2013-14 24.09 271.26 0.888

Rs. Crore MU Rs./kWh

11.

CSPTCL has filed ARR for FY 2013-14 of Rs. 803 Crore. The Commission after prudence check and due scrutiny has approved the same at Rs. 600 Crore. Transmission charge for FY 13-14 shall be as under :-

Particulars ARR for CSPTCL Monthly Transmission Charges for Medium and Long-term Open Access Consumers Short-Term Open Access Charges

Rs. Crore Rs. Crore/Month Rs./kWh

FY 2013-14 600.08 50.01 0.233

Note - Energy losses for transmission: Transmission losses at the rate of 4.40% for the energy scheduled for transmission at the point or points of injection shall be recoverable from open access customers.

Tariff Order FY 2013-14

12.

The Commission has also taken cognizance of Honble Tribunal decision dated 01.10.2012 in appeal No 31 of 2012 in the case of PTC India Ltd Vs GERC & Gujrat Urja Vikas Nigam Ltd., wherein it has been held that as per provisions of the Act, Trading Company cannot be carved out of unbundling of SEB. The Hon'ble ATE further held that as per Section 5.3.4 of the National Electricity Policy, the Power Purchase Agreements with the generating companies would need to be suitably assigned to the distribution companies and there is no provision for a Trading Company to be assigned with the PPAs and to be responsible for procuring power for the distribution licensees. Transfer Scheme Rules, 2010 notified on 31.03.2010 has assigned the concluded short-term PPA of CSPDCL to CSPTrCL and CSPDCL for the period 01.01.2009 to 31.03.2010, with retrospective effect from 01.01.2009. The preamble of the Act mandates State Commission for protection of interest of consumer. Taking into cognizance, the spirit of the Act, NEP and Judgment by the Hon'ble Tribunal, the Commission has considered the total short-term power purchases expenses of concluded contracts (short-term PPAs) for period 01.01.2009 to 31.03.2010 in ARR of CSPDCL and has also appropriately assigned the gains from trading of surplus power to CSPDCL.

13.

Further, it is noted that the State Govt. on its part has issued a grant of Rs. 465 Crore to bridge a part of revenue gap.

14.

CSPDCL in its petition has filed cumulative deficit of Rs 2495 Crore upto FY 2012-13. However, the Commission after prudence check and scrutiny has arrived at a conclusion that after adjusting the cumulative surplus of CSPGCL and CSPTCL, The gains from trading of power and the grant from the State Govt., no revenue gap

Tariff Order FY 2013-14

remains. Accordingly, except for some corrections in methodology to be applied in some specific cases, the Commission has decided to continue with the prevailing tariff schedule. However, for ready reference the tariff schedule to be applicable in reference to this order is appended herewith as Annexure-I. 15. The Commission directs the Companies to take appropriate steps to implement the tariff Order. A public notice of minimum 7 days be given in accordance with the CSERC (Details to be Furnished by the Licensees or Generating Company for Determination of Tariff and Manner of Making Application) Regulations, 2004 and the MYT Regulations, 2012 before implementation of this Tariff Order. 16. The detailed Order in reference to this joint order shall be issued shortly.

Sd/(Vinod Shrivastava) MEMBER

Sd/(Manoj Dey) CHAIRMAN

True Copy

(P.N. Singh) Secretary

Tariff Order FY 2013-14