AGGREGATE REVENUE REQUIREMENT FOR THE …. APGCL MYT Petition 2016-19.pdf · 4.1 (Sec.5.2) Subject...

PETITION FOR TRUE-UP OF THE FY 2014-15 AND FY 2015-16

AND

AGGREGATE REVENUE REQUIREMENT

FOR THE FYS 2016-17, 2017-18 & 2018-19

AND

DETERMINATION OF TARIFF FOR THE FYS 2016-17 & 2017-18

SUBMISSION OF TEXT AND AFFIDAVIT

TO

ASSAM ELECTRICITY REGULATORY COMMISSION

Prepared by

ASSAM POWER GENERATION CORPORATIONLTD

True-up prepared as per the AERC (Terms & Conditions for Determination of Tariff) Regulations, 2006 and

Tariff prepared as per the AERC (Terms & Conditions for Determination of MYT) Regulations, 2015

October’16

Petition for True-up of 2014-15 & 2015-16, ARR for 2016-17, 2017-18 & 2018-19 and Tariff for 2016-17 & 2017-18

Assam Power Generation Corporation Limited 2

Legal and Regulatory Framework

1. Under the provisions of Electricity Act 2003 (hereinafter referred to as "Electricity Act") the Assam Electricity Reforms First Transfer Scheme, 2004 (hereinafter referred to as "Transfer Scheme") was notified by Government of Assam on 10th December 2004. Under Section 5 (2) of the transfer scheme the functions and undertakings as set out in Schedule-A of the transfer scheme stands transferred to Assam Power Generation Corporation Limited (APGCL). The final transfer scheme was notified by Govt. of Assam vide notification No: PEL/151/2003/Pt.349 Dtd. 16th Aug’ 2005 w.e.f 1st April’05.

2. Section 131 (2) of the Electricity Act provides "...Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) shall be re-vested by the State Government in a Government company or in a company or companies, in accordance with the transfer scheme so published along with such other property, interest in property, rights and liabilities of the State Government as may be stipulated in such scheme, on such terms and conditions as may be agreed between the State Government and such company or companies being State Transmission Utility or generating company or transmission licensee or distribution licensee,... ".

3. Section 62 of the Electricity Act 2003 requires the generating company to furnish details as may be specified by the Commission for determination of tariff.

4. Section 5, 6 & 7 of A. E. R. C. (Terms and conditions for determination of Tariff) Regulations 2006 lays down the following:

Periodicity of tariff determination (Sec.-5)

4.1 (Sec.5.2) Subject to other provisions of these Regulations, the expenses allowed to be recouped for any financial year, shall be subject to adjustments in any tariff to be fixed for the subsequent period, if the Commission is satisfied, that such adjustments for the excess amount or shortfall in the amount actually realized or expenses incurred is necessary and the same is not on account of any reason attributable to the licensee

4.2 (Sec.5.3) In accordance with the principle of multi-year tariffs (MYT), the Commission approved three years control period i.e. 2013-14 to 2015-16 and accordingly APGCL filed MYT petition for the said control period to AERC on 31/01/2013. Against Tariff Petitions of APGCL, AERC issued Tariff order for FY 2013-14 and approved ARR for FY 2013-14, FY 2014-15 & FY 2015-16 on 21/11/2013 with effectuation date from 1st Dec’13. Thereafter, APGCL submitted petition for Revised ARR and tariff proposal for FY 2014-15 and True-up for FY 2012-13 to AERC on 26/02/14. AERC declared tariff for FY 2014-15 on 21.11.14 with effectuation date from 1st Dec’14. Revised Tariff Proposal and ARR for the FY 2015-16, APR Petition for the FY 2014-15 and True-Up Petition for the FY 2013-14 was submitted to the Commission on 20/12/2015-16 against which AERC issued Order on 24/07/2015 with effectuation date from 01/08/2015.

5. The Assam Electricity Regulatory Commission further notified the Assam Electricity Regulatory Commission (Terms and Conditions for Determination of Multi Year Tariff) Regulations, 2015 (hereinafter referred to as “AERC Regulations 2015”) on 2nd June 2015.

6. As mentioned in the AERC Regulations 2015, these Regulations shall be applicable for determination of tariff in all cases covered under these Regulations from 1st April, 2016 onwards. However, for all purposes including the review matters pertaining to the period till FY 2015-16, the issues related to determination of tariff shall be governed by AERC (Terms and conditions of determination of Tariff) Regulations, 2006 (hereinafter referred to as “AERC Regulations 2006”) including amendments thereto.

7. As per the AERC Regulations 2015 Section 3.3:



“The Commission shall determine tariff, including terms and conditions thereof, for all matters for which the Commission has jurisdiction under the Act, including in the following cases:-

(i) Supply of electricity by a Generating Company to a Distribution Licensee: (ii) Intra-State transmission of electricity; (iii) Distribution Wheeling Business of electricity;

(iv) Retail Supply Business of electricity; (v) State Load Dispatch Centre; Provided that the Commission shall determine such tariff, having regard to the terms and conditions contained in Chapter 6,7, 8, 9 & 10 of these Regulations for applications under this Regulation for determination of tariff, for generation, transmission, distribution Wheeling Business and retail supply business and SLDC”

8. Further, as per the Section 4.1 of AERC Regulations 2015:

“The Commission shall determine the tariff for matters covered under clauses (i), (ii), (iii), (iv) and (v) of Regulation 3.3 above under a Multi-Year Tariff framework with effect from 1st April 2016.”

9. That the licensee is now filing the Petitions for

a. Truing-up for FY 2014-15 and FY 2015-16 under the framework of the AERC Regulations 2006,

b. Aggregate Revenue Requirement for the FYs 2016-17, 2017-18 & 2018-19 for

i. Namrup Thermal Power Station ii. Lakwa Thermal Power Station iii. Karbi Langpi Hydro Electric Project iv. Namrup Replacement Power Project and v. Lakwa Replacement Power Project

AND

c. Determination of Tariff for the FYs 2016-17 & 2017-18 for

i. Namrup Thermal Power Station ii. Lakwa Thermal Power Station iii. Karbi Langpi Hydro Electric Project iv. Namrup Replacement Power Project (Provisional) -under the framework of the AERC

Regulations 2015. 10. Status of the various data formats and forms, as required by the Hon'ble Commission, are

furnished in Annexure -XV



TABLE OF CONTENTS

APPEAL FOR TRUE-UP OF THE FY 2014-15 ............................................................................................. 14

AFFIDAVIT – TRUE-UP ...................................................................................................................... 15

PRAYER FOR TRUE-UP...................................................................................................................... 16

1 Review of the performance in the FY 2014-15 .......................................................................... 17

1.1 Status of APGCL Power station ............................................................................................. 17

1.2 Summary of Plant wise Performance:................................................................................... 17

2 Plant wise Operation Performance Data .................................................................................. 17

3 Financial Performance ............................................................................................................. 18

3.1 Operation & Maintenance Expenses .................................................................................... 18

3.1.1 Employee expenses .......................................................................................................... 18

3.1.2 Repair and Maintenance (R&M) expenses ........................................................................ 19

3.1.3 Administration and General (A&G) expenses .................................................................... 19

3.2 Interest and Finance Charges ............................................................................................... 21

3.3 Interest on Working Capital ................................................................................................. 22

3.4 Income Tax .......................................................................................................................... 22

3.5 Depreciation ........................................................................................................................ 22

3.6 Return on Equity (ROE) ........................................................................................................ 23

3.7 Prior period items ................................................................................................................ 23

3.8 Other Income ....................................................................................................................... 25

3.9 Fuel Cost .............................................................................................................................. 25

3.10 Incentive for generation ....................................................................................................... 26

3.11 Incentive for Secondary Energy generation .......................................................................... 26

3.12 Claim approved in AERC’s Review Order dtd. 21.12.15 ......................................................... 26

4 TRUING UP FOR THE FY 2014-15 ............................................................................................. 28

4.1 APPEAL FOR TRUING UP FOR THE FY 2014-15 ...................................................................... 28

4.2 Impact of True-up claims for 2014-15 .................................................................................. 28

APPEAL FOR TRUE-UP OF THE FY 2015-16 ............................................................................................. 29

5 Review of the performance in the FY 2015-16 .......................................................................... 30

5.1 Status of APGCL’s Power station: ......................................................................................... 30

5.2 Summary of Plant wise Performance:................................................................................... 30

6 Plant wise Operation Performance Data .................................................................................. 31

7 Financial Performance ............................................................................................................. 32

7.1 Operation & Maintenance Expenses .................................................................................... 32

7.1.1 Employee expenses .......................................................................................................... 32

7.1.2 Repair and Maintenance (R&M) expenses ........................................................................ 32

7.1.2.1 Regular Repair & Maintenance expenses ......................................................................... 32

7.1.2.2 Special Repair & Maintenance expenses .......................................................................... 32

7.1.2.3 Claims for Repair & Maintenance Expenses for the FY 2015-16 ........................................ 33

7.1.3 Administration and General (A&G) expenses .................................................................... 34



7.2 Interest and Finance Charges ............................................................................................... 35

7.3 Interest on Working Capital ................................................................................................. 36

7.4 Income Tax .......................................................................................................................... 36

7.5 Depreciation ........................................................................................................................ 37

7.6 Return on Equity (RoE) ......................................................................................................... 37

7.7 Prior period items ................................................................................................................ 38

7.8 Other Income ....................................................................................................................... 39

7.9 Fuel Cost .............................................................................................................................. 39

7.10 Incentive for generation ...................................................................................................... 40

7.11 Incentive for Secondary Energy generation .......................................................................... 41

8. TRUING UP FOR THE FY 2015-16 ............................................................................................. 42

8.1 APPEAL FOR TRUING UP FOR THE FY 2015-16 ...................................................................... 42

8.2 Impact of True-up claims for 2015-16 .................................................................................. 43

9 AGGREGATE REVENUE REQUIREMENT FOR THE FYs 2016-17 TO 2018-19 UNDER THE FRAMEWORK OF THE AERC REGULATIONS 2015 ............................................................................ 45

9.1a Multi Year Tariff Frameworks ............................................................................................... 45

9.1b Treatment of Corporate Expenses and Corporate Investment in the MYT Petition ............... 45

9.2 Capacity Addition ................................................................................................................. 45

9.3 Gas Supply Position .............................................................................................................. 46

9.3.1 NTPS ................................................................................................................................... 46

9.3.2. LTPS ................................................................................................................................. 46

9.3.3. SilcharPower Project ........................................................................................................ 47

AFFIDAVIT – NTPS ............................................................................................................................ 49

PRAYER FOR NTPS ........................................................................................................................... 50

10 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OFNAMRUP THERMAL POWER STATION (NTPS) ................................................................................................................. 52

10.1 Present Status of NTPS ......................................................................................................... 52

10.2 Investment Proposed for NTPS for the MYT Control Period .................................................. 53

10.3 Proposed Power Generation in the MYT Control Period of NTPS .......................................... 55

10.3.1 Technical Parameters considered for Generation Projection of NTPS ............................... 55

10.3.2 Maintenance Schedule of NTPS ........................................................................................ 56

10.3.3 Projected Generation for the MYT Control Period of NTPS ............................................... 56

10.4 Cost of Fuel of NTPS ............................................................................................................. 57

10.4.1 Projected Gas Price of NTPS ............................................................................................. 57

10.4.2 Projected Fuel Cost of NTPS ............................................................................................. 57

10.5 Financial Projections for NTPS for the MYT Control Period .................................................. 58

10.5.1.1 Employee Expenses Proposed for NTPS ............................................................................ 58

10.5.1.2 Administrative & General (A&G) Expenses Proposed for NTPS ......................................... 58

10.5.1.3 Repair & Maintenance (R&M) Expenses Proposed for NTPS ............................................. 59

10.5.3 Interest & Finance Charges (IFC) proposed for NTPS for the MYT Control Period .............. 59

10.5.4 Interest on Working Capital (IWC) proposed for NTPS for the MYT Control Period ........... 60



10.5.5 Return on Equity (ROE) proposed for NTPS for the MYT Control Period ............................ 60

10.5.6 Other Income proposed for NTPS for the MYT Control Period .......................................... 60

10.5.7 Profit & Loss (PL) Account proposed for NTPS for the MYT Control Period ........................ 60

10.6 ARR proposed for NTPS for the MYT Control Period ............................................................. 61

AFFIDAVIT – LTPS ............................................................................................................................ 64

PRAYER FOR LTPS ............................................................................................................................ 65

11 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OFLAKWA THERMAL POWER STATION (LTPS) .................................................................................................................. 67

11.1 Present Status of LTPS.......................................................................................................... 67

11.2 Investment Proposed for LTPS for the MYT Control Period ................................................... 68

11.3 Proposed Power Generation in the MYT Control Period of LTPS ........................................... 71

11.3.1 Technical Parameters considered for Generation Projection of LTPS ................................ 71

11.3.2 Maintenance Schedule of LTPS ......................................................................................... 72

11.3.3 Projected Generation for the MYT Control Period of LTPS ................................................ 72

11.4 Cost of Fuel of LTPS .............................................................................................................. 73

11.4.1 Projected Gas Price of LTPS .............................................................................................. 73

11.4.2 Projected Fuel Cost of LTPS .............................................................................................. 74

11.5 Financial Projections for LTPS for the MYT Control Period .................................................... 74

11.5.1.1 Employee Expenses Proposed for LTPS ............................................................................. 74

11.5.1.2 Administrative & General (A&G) Expenses Proposed for LTPS .......................................... 75

11.5.1.3 Repair & Maintenance (R&M) Expenses Proposed for LTPS .............................................. 75

11.5.3 Interest & Finance Charges (IFC) proposed for LTPS for the MYT Control Period ............... 76

11.5.4Interest on Working Capital (IWC) proposed for LTPS for the MYT Control Period .................. 76

11.5.5 Return on Equity (ROE) proposed for LTPS for the MYT Control Period ............................. 76

11.5.6 Other Income proposed for LTPS for the MYT Control Period ........................................... 76

11.5.7 Profit & Loss (PL) Account proposed for LTPS for the MYT Control Period ......................... 77

11.6 ARR proposed for LTPS for the MYT Control Period .............................................................. 77

AFFIDAVIT – KLHEP .......................................................................................................................... 80

PRAYER FOR KLHEP .......................................................................................................................... 81

12 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OFKARBI LANGPI HYDRO ELECTRIC PROJECT (KLHEP) ................................................................................................. 83

12.1 Present Status of KLHEP ....................................................................................................... 83

12.2 Investment Proposed for KLHEP for the MYT Control Period ................................................ 83

12.3 Proposed Power Generation in the MYT Control Period of KLHEP ........................................ 85

12.3.1 Technical Parameters considered for Generation Projection of KLHEP .............................. 85

12.3.2 Maintenance Schedule of KLHEP ...................................................................................... 85

12.3.3 Projected Generation for the MYT Control Period of KLHEP.............................................. 85

12.4 Financial Projections for KLHEP for the MYT Control Period................................................. 86

12.4.1.1 Employee Expenses Proposed for KLHEP .......................................................................... 86

12.4.1.2 Administrative & General (A&G) Expenses Proposed for KLHEP ........................................ 86

12.4.1.3 Repair & Maintenance (R&M) Expenses Proposed for KLHEP ........................................... 87



12.4.3Interest & Finance Charges (IFC) proposed for KLHEP for the MYT Control Period .................. 87

12.4.4 Interest on Working Capital (IWC) proposed for KLHEP for the MYT Control Period ............ 87

12.4.5 Return on Equity (ROE) proposed for KLHEP for the MYT Control Period .......................... 88

12.4.6 Other Income proposed for KLHEP for the MYT Control Period ........................................ 88

12.4.7 Profit & Loss (PL) Account proposed for KLHEP for the MYT Control Period ...................... 88

12.5 ARR proposed for KLHEP for the MYT Control Period ........................................................... 89

AFFIDAVIT – NRPP ........................................................................................................................... 91

PRAYER FOR NRPP ........................................................................................................................... 92

13 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OF NAMRUP REPLACEMENT POWER PROJECT (NRPP) ........................................................................................ 94

13.1 Present Status of NRPP ........................................................................................................ 94

(i) Physical Progress of NRPP ........................................................................................................ 94

(ii) Financial Progress of NRPP ................................................................................................... 95

13.2 Capital Expenditure of NRPP in the MYT Control Period ....................................................... 95

13.3 Proposed Power Generation in the MYT Control Period of NRPP .......................................... 95

13.3.1 Technical Parameters considered for Generation Projection of NRPP ............................... 95

13.3.1a Heat Rate of NRPP ........................................................................................................... 96

13.3.2 Projected Generation for the MYT Control Period of NRPP ............................................... 97

13.4 Cost of Fuel of NRPP ............................................................................................................ 98

13.4.1 Projected Gas Price of NRPP ............................................................................................. 98

13.4.2 Projected Fuel Cost of NRPP ............................................................................................. 99

13.5 Financial Projections for NRPP for the MYT Control Period .................................................. 99

13.5.3 Interest & Finance Charges (IFC) proposed for NRPP for the MYT Control Period ............ 100

13.5.4 Interest on Working Capital (IWC) proposed for NRPP for the MYT Control Period ........... 100

13.5.5 Return on Equity (ROE) proposed for NRPP for the MYT Control Period.......................... 100

13.5.6 Profit & Loss (PL) Account proposed for NRPP for the MYT Control Period ..................... 100

13.6 ARR proposed for NRPP for the MYT Control Period ........................................................... 101

AFFIDAVIT – LRPP .......................................................................................................................... 104

PRAYER FOR LRPP .......................................................................................................................... 105

14 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OF LAKWA REPLACEMENT POWER PROJECT (LRPP) ....................................................................................... 107

14.1 Present Status of LRPP ....................................................................................................... 107

(i) Physical Progress of LRPP ....................................................................................................... 107

(ii) Financial Progress of LRPP .................................................................................................. 107

14.2 Capital Expenditure of LRPP in the MYT Control Period ...................................................... 108

14.3 Proposed Power Generation in the MYT Control Period of LRPP......................................... 108

14.3.1 Technical Parameters considered for Generation Projection of LRPP .............................. 108

14.3.1a Heat Rate of LRPP .......................................................................................................... 109

14.3.2 Projected Generation for the MYT Control Period of LRPP .............................................. 110

14.4 Cost of Fuel of LRPP ........................................................................................................... 111

14.4.1 Projected Gas Price of LRPP ............................................................................................ 111



14.4.2 Projected Fuel Cost of LRPP ............................................................................................ 112

14.5 Financial Projections for LRPP for the MYT Control Period ................................................. 112

14.5.3 Interest & Finance Charges (IFC) proposed for LRPP for the MYT Control Period ............. 113

14.5.4 Interest on Working Capital (IWC) proposed for LRPP for the MYT Control Period ............ 113

14.5.5 Return on Equity (ROE) proposed for LRPP for the MYT Control Period .......................... 113

14.5.6 Profit & Loss (PL) Account proposed for LRPP for the MYT Control Period ...................... 113

14.6 ARR proposed for LRPP for the MYT Control Period............................................................ 114

15. Investment in New Projects in the MYT Control Period .................................................... 116

15.1 New Projects of APGCL ...................................................................................................... 116

15.1.1 30 MW Silchar Power Project (SPP): ............................................................................... 116

15.1.2 120 MW Lower Kopili Hydro Electric Project (LKHEP):..................................................... 116

15.2 Investment for Consultancy Services and ERP Implementation........................................... 118

16. Directives of AERC ............................................................................................................. 119

16.1 Status of Compliance ofDirectives issued in the Order dated 24/07/2015 .......................... 119

16.2 Status of Compliance of Directives issued in the Order dated 01/09/2016 ......................... 123



LIST OF TABLES Table 1: Gross Generation 2014-15.................................................................................................. 17 Table 2: Operating Performance for 2014-15 of NTPS ...................................................................... 18 Table 3: Operating Performance for 2014-15 of LTPS ....................................................................... 18 Table 4: Operating Performance for 2014-15 of KLHEP .................................................................... 18 Table 5: Operating Performance for 2014-15 of MSHEP-II ................................................................ 18 Table 6: Repair & Maintenance Expenses ........................................................................................ 19 Table 7: Interest and Finance Charges ............................................................................................. 21 Table 8: Interest on Working Capital ................................................................................................ 22 Table 9: Depreciation ...................................................................................................................... 22 Table 10: Calculation Of Cost Of Capital ........................................................................................... 23 Table 11: Calculation Of Approved Equity Capital & Return On Equity:- ........................................... 23 Table 12: Prior Period Income.......................................................................................................... 24 Table 13: Summary of Fuel Cost....................................................................................................... 25 Table 15: Incentive computation for Hydro station for FY 2014-15................................................... 26 Table 14: Incentive computation for thermal stations for FY 2014-15 .............................................. 26 Table 16: Revenue from Sale of Power ............................................................................................ 27 Table 17: Month-wise Statement of Sale of Power .......................................................................... 27 Table 18: Appeal for True-up for the FY 2014-15.............................................................................. 28 Table 19: Claim for True-up of FY 2014-15 ....................................................................................... 28 Table 20: Gross Generation 2015-16 ................................................................................................ 30 Table 21: Operating Performance for 2015-16 of NTPS .................................................................... 31 Table 22: Operating Performance for 2015-16 of LTPS ..................................................................... 31 Table 23: Operating Performance for 2015-16 of KLHEP .................................................................. 31 Table 24: Operating Performance for 2015-16 of MSHEP-II .............................................................. 31 Table 25: Expenditure Allowed for Special R&M and Claims............................................................. 32 Table 26: Repair & Maintenance Expenses ...................................................................................... 33 Table 27: Interest and Finance Charges ........................................................................................... 35 Table 28: Interest on Working Capital .............................................................................................. 36 Table 29: Depreciation .................................................................................................................... 37 Table 30: Calculation of Cost of Capital ............................................................................................ 37 Table 31: Calculation Of Approved Equity Capital & Return On Equity:- ........................................... 38 Table 32: Prior Period Income.......................................................................................................... 38 Table 33: Summary of Fuel Cost....................................................................................................... 40 Table 34: Incentive computation for Thermal station for FY 2015-16 ............................................... 40 Table 35: Incentive computation for Hydro station for FY 2015-16................................................... 40 Table 36: Revenue from Sale of Power ............................................................................................ 41 Table 37: Month-wise Statement of Sale of Power .......................................................................... 41 Table 38: Appeal for True-up for the FY 2015-16.............................................................................. 42 Table 39: Claim for True-up of FY 2015-16 ....................................................................................... 43 Table 40: Capacity Addition Plan for the MYT Control Period ........................................................... 45 Table 41: Present Status of NTPS Units ............................................................................................ 52 Table 42: Monthly Avg. Gas Availability of NTPS (Apr'16-Sep'16) ..................................................... 53 Table 43: Operating Performance of NTPS (Apr'16-Sep'16) .............................................................. 53 Table 44: Investment Proposal for NTPS for the MYT Control Period ............................................... 53 Table 45: Technical Parameters for Generation Projection of NTPS.................................................. 55 Table 46: Maintenance Schedule - NTPS .......................................................................................... 56



Table 47: Projected Generation of NTPS .......................................................................................... 56 Table 48: Landed Price of Gas for NTPS in the MYT Control Period................................................... 57 Table 49: Cost of Fuel NTPS ............................................................................................................. 58 Table 50: Employee Expenses of NTPS for the MYT Control Period .................................................. 58 Table 51: A&G Expenses of NTPS for the MYT Control Period .......................................................... 59 Table 52: R&M Expenses of NTPS for the MYT Control Period .......................................................... 59 Table 53: Depreciation of NTPS for the MYT Control Period ............................................................. 59 Table 54: IFC of NTPS for the MYT Control Period ............................................................................ 59 Table 55: IWC of NTPS for the MYT Control Period .......................................................................... 60 Table 56: ROE of NTPS for the MYT Control Period .......................................................................... 60 Table 57: Other Income of NTPS for the MYT Control Period ........................................................... 60 Table 58: PL Account of NTPS for the MYT Control Period ................................................................ 61 Table 59: ARR of NTPS for the MYT Control Period .......................................................................... 61 Table 60: Present Status of LTPS Units ............................................................................................. 67 Table 61: Monthly Avg. Gas Availability of LTPS (Apr'16-Sep'16) ...................................................... 68 Table 62: Operating Performance of LTPS (Apr'16-Sep'16) ............................................................... 68 Table 63: Investment Proposal for LTPS for the MYT Control Period ................................................ 69 Table 64: Technical Parameters for Generation Projection of LTPS .................................................. 71 Table 65: Maintenance Schedule - LTPS ........................................................................................... 72 Table 66: Projected Generation of LTPS ........................................................................................... 72 Table 67: Landed Price of Gas for LTPS in the MYT Control Period ................................................... 73 Table 68: Cost of Fuel LTPS .............................................................................................................. 74 Table 69: Employee Expenses of LTPS for the MYT Control Period ................................................... 74 Table 70: A&G Expenses of LTPS for the MYT Control Period ........................................................... 75 Table 71: R&M Expenses of LTPS for the MYT Control Period........................................................... 75 Table 72: Depreciation of LTPS for the MYT Control Period .............................................................. 75 Table 73: IFC of LTPS for the MYT Control Period ............................................................................. 76 Table 74: IWC of LTPS for the MYT Control Period ........................................................................... 76 Table 75: ROE of LTPS for the MYT Control Period ........................................................................... 76 Table 76: Other Income of LTPS for the MYT Control Period ............................................................ 76 Table 77: PL Account of LTPS for the MYT Control Period................................................................. 77 Table 78: ARR of LTPS for the MYT Control Period ........................................................................... 77 Table 79: Present Status of KLHEP Units .......................................................................................... 83 Table 80: Operating Performance of KLHEP (Apr'16-Sep'16) ............................................................ 83 Table 81: Investment Proposal for KLHEP for the MYT Control Period .............................................. 83 Table 82: Parameters for Hydro Generation Projection .................................................................... 85 Table 83: Projected Generation of KLHEP ........................................................................................ 86 Table 84: Employee Expenses of KLHEP for the MYT Control Period................................................. 86 Table 85: A&G Expenses of KLHEP for the MYT Control Period ......................................................... 86 Table 86: R&M Expenses of KLHEP for the MYT Control Period ........................................................ 87 Table 87: Depreciation of KLHEP for the MYT Control Period ........................................................... 87 Table 88: IFC of KLHEP for the MYT Control Period .......................................................................... 87 Table 89: IWC of KLHEP for the MYT Control Period ......................................................................... 87 Table 90: ROE of KLHEP for the MYT Control Period ......................................................................... 88 Table 91: Other Income of KLHEP for the MYT Control Period .......................................................... 88 Table 92: PL Account of KLHEP for the MYT Control Period .............................................................. 88 Table 93: ARR of KLHEP for the MYT Control Period ......................................................................... 89 Table 94: Physical Progress of NRPP ................................................................................................ 94



Table 95: NRPP Financial progress ................................................................................................... 95 Table 96: NRPP Capital expenditure during control period ............................................................... 95 Table 97: NRPP financing of capital Expenditure .............................................................................. 95 Table 98: Parameters for NRPP Generation Projection ..................................................................... 96 Table 99: Projected Generation of NRPP .......................................................................................... 98 Table 100: Landed Price of Gas for NRPP in the MYT Control Period ................................................ 98 Table 101: Cost of Fuel NRPP ........................................................................................................... 99 Table 102: O&M Expenses of NRPP for the MYT Control Period ....................................................... 99 Table 103: Depreciation of NRPP for the MYT Control Period .......................................................... 99 Table 104: IFC of NRPP for the MYT Control Period ........................................................................ 100 Table 105: IWC of NRPP for the MYT Control Period ...................................................................... 100 Table 106: ROE of NRPP for the MYT Control Period ...................................................................... 100 Table 107: PL Account of NRPP for the MYT Control Period ........................................................... 101 Table 108: ARR of NRPP for the MYT Control Period ...................................................................... 101 Table 109: LRPP FinancialProgress ................................................................................................. 107 Table 110: LRPP Capital expenditure during control period ............................................................ 108 Table 111: LRPP financing of capital Expenditure ........................................................................... 108 Table 112: Parameters for LRPP Generation Projection.................................................................. 109 Table 113: Projected Generation of LRPP ....................................................................................... 111 Table 114: Landed Price of Gas for LRPP in the MYT Control Period ............................................... 111 Table 115: Cost of Fuel LRPP .......................................................................................................... 112 Table 116: O&M Expenses of LRPP for the MYT Control Period ...................................................... 112 Table 117: Depreciation of LRPP for the MYT Control Period ......................................................... 112 Table 118: IFC of LRPP for the MYT Control Period......................................................................... 113 Table 119: IWC of LRPP for the MYT Control Period ....................................................................... 113 Table 120: ROE of LRPP for the MYT Control Period ....................................................................... 113 Table 121: PL Account of LRPP for the MYT Control Period ............................................................ 114 Table 122: ARR of LRPP for the MYT Control Period ....................................................................... 114 Table 123: New Projects for Investment in the MYT Control Period ............................................... 116 Table 124: Silchar PP Capital Expenditure during MYT Control Period ............................................ 116 Table 125: Silchar PP Financing of Capital Expenditure .................................................................. 116 Table 126: LKHEP Capital Expenditure during MYT Control Period ................................................. 117 Table 127: LKHEP Financing of Capital Expenditure ........................................................................ 117 Table 128: Investment for Consultancy and ERP during MYT Control Period .................................. 118 Table 129: Compliance of Directives of AERC issued in the Order dated 24/07/2015 ..................... 119 Table 130: Compliance of Directives of AERC issued in the Order dated 01/09/2016 ..................... 123



List of Annexure

Annexure of the True-up of FY 2014-15 Annex-I to Annex-VI

SLDC Certificate for Energy Generation of APGCL for the FY 2014-15 Annex-I

Sanction letters of GOA Loans received in the FY 2014-15 Annex-II

Payments of Interest & repayments of PFCL Loan during the FY 2014-15 Annex-III

TDS certificates for the FY 2014-15 Annex-IV

SLDC Certificate for Single Point Energy Billed for LTPS Annex-V

Audited Annual Accounts for the FY 2014-15 Annex-VI

Annexure of the True-up of FY 2015-16 Annex-VII to Annex-XII

SLDC Certificate for Energy Generation of APGCL for the FY 2015-16 Annex-VII

Insurance Certificate for the FY 2015-16 Annex-VIII

Sanction letters of GOA Loans received in the FY 2015-16 Annex-IX

Payments of Interest & repayments of PFCL Loan during the FY 2015-16 Annex-X

Form 26-AS for the FY 2015-16 Annex-XI

Audited Annual Accounts for the FY 2015-16 (Excluding comments of C&AG) Annex-XII

Annexure of the MYT Petition for the FYs 2016-17 to 2018-19 Annex-XIII to Annex-XV

Minutes of the Meeting dated 22/07/2016 between AGCL & APGCL Annex-XIII

Action Taken Report on the Energy Audit Reports Annex-XIV

Regulatory formats for ARR & Tariff Filing Annex-XV



Glossary

Acronym Full form A&G Administrative and General ADB Asian Development Bank AERC Assam Electricity Regulatory Commission APGCL Assam Power Generation Corporation Limited APDCL Assam Power Distribution Company Limited APR Annual Performance Review ARR Aggregate Revenue Requirement ASEB Assam State Electricity Board CGM Chief General Manager FY Financial Year GOA Government of Assam GOI Government of India GT Gas Turbine HRS Hours KCAL Kilo Calorie KLHEP Karbi Langpi Hydro Electric Project KW Kilo Watt KWH Kilo Watt Hour LRPP Lakwa Replacement Power Project LTPS Lakwa Thermal Power Station MMSCMD Million Metric Standard Cubic Meter per day MU Million Unit MSHEP-I Myntriang Stage-I Small Hydro Electric Project MSHEP-II Myntriang Stage-I Small Hydro Electric Project NRPP Namrup Replacement Power Project NTPS Namrup Thermal Power Station Ph Phase PLF Plant Load Factor R&M Renovation & Modernisation Rs Rupees SCM Standard Cubic Meter ST Steam Turbine T.C. Transportation Cost WHRU Waste Heat Recovery Unit

APPEAL FOR TRUE-UP OF THE FY 2014-15

To


By

ASSAM POWER GENERATION CORPORATION LTD

BijuleeBhawan, Paltanbazar

Guwahati-781 001



AFFIDAVIT – TRUE-UP



PRAYER FOR TRUE-UP



1 Review of the performance in the FY 2014-15 1.1 Status of APGCL Power station: The actual gross generation of APGCL in the FY 2014-15 is as shown in Table 1.

Table 1: Gross Generation 2014-15

Power Station Gross generation in MU % of achievement

Approved Actual NTPS 523.09 591.66 113% LTPS + WHRU 842.47 935.30 111% KLHEP 390.00 366.98 94% Myntriang SHEP St-II 11.38 0.71 6% Total 1766.94 1894.66 107%

Note: The Certificate for Energy Generation of APGCL for the FY 2014-15 from SLDC is enclosed at Annex-I

1.2 Summary of Plant wise Performance: NTPS: Due to continuous efforts taken by APGCL, performance of NTPS improved significantly compared to the previous years, which can be observed in its average higher PLF of 56% and availability factor of 62% respectively during 2014-15. Due to such improved performance, NTPS surpassed Target generation for the FY 2014-15 and generated 591.66 MU of power, highest ever in the history of NTPS. LTPS: Performance of LTPS in the FY 2014-15 was satisfactory as well. In this year LTPS has achieved average PLF of 66% and availability of 78%. Due to such satisfactory performance, even though LTPS is constantly facing shortage of gas supply, it surpassed Target generation for the FY 2014-15 and generated 935.30 MU of power, highest ever in the history of LTPS. KLHEP: Due to shortfall in rain during the monsoon period of 2014-15, generation of KLHEP suffered significantly. Generation of KLHEP in the FY 2014-15 was only 366.98 MU against approved generation of 390 MU. Myntriang SHEP St-II: Commercial Operation Date of Myntriang SHEP St-II was declared on 08-08-14. But the project was damaged heavily in the devastating flood of 22-08-14. The machines were put into trial run on 20-10-14, however they were not stable for the rest of the period of 2014-15.

2 Plant wise Operation Performance Data The following tables indicate the plant wise operating performance parameters of APGCL for the FY 2014-15.



Table 2: Operating Performance for 2014-15 of NTPS NTPS Approved Actual Gross Energy in MU 523.09 591.66 Aux. Power Cons. (%) 4.5% 5.76% Net Energy in MU 499.55 557.59 Availability (%) 50.0% (for recovering full fixed cost) 62.4% PLF (%) 50.0% (for Incentive) 55. 8% Gross Station Heat Rate on GCV (kcal/ kWh)

3266 (till 6th Jan’15) 3900 (from 7th Jan’15 as per the AERC

(Terms & Conditions for Determination of Tariff) (1st Amendment) Regulations, 2014

4024

Sp. Gas Consumption (SCM/kWh) -- 0.4230

Table 3: Operating Performance for 2014-15 of LTPS

LTPS + WHRU Approved Actual Gross Energy in MU 842.47 935.30 Aux. Power Cons. (%) 5.5% 8.55% Net Energy in MU 796.14 855.30 Availability (%) 50.0% (for recovering full fixed cost) 78.2% PLF (%) 50.0% (for Incentive) 65.7% Gross Station Heat Rate on GCV (kcal/ kWh)

2872 ((till 6th Jan’15) 3200 (from 7th Jan’15 as per the AERC

(Terms & Conditions for Determination of Tariff) (1st Amendment) Regulations, 2014

3086

Sp. Gas Consumption(SCM/kWh) -- 0.3113

Table 4: Operating Performance for 2014-15 of KLHEP KLHEP Approved Actual Gross Energy in MU 390.00 366.98 Aux. Power Cons. (%) 0.5% 0.5% Net Energy in MU 388.05 365.15 Capacity Index (%) 85% 92.15%

Table 5: Operating Performance for 2014-15 of MSHEP-II

Myntriang St-II Approved Actual Gross Energy in MU 11.38 0.71 Aux. Power Cons. (%) 1.0% 1.7% Net Energy in MU 11.26 0.70

3 Financial Performance 3.1 Operation & Maintenance Expenses 3.1.1 Employee expenses The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15, had approved the Employee Expenses of Rs. 75.75 Crore. APGCL claims the actual Employee Expenses of Rs. 81.56 Crore for FY 2014-15 as per the Audited Statement of Accounts for FY 2014-15.The actual employees cost is higher than that of the approved amount on account of the mandatory annual increment of 3% to employees, increased DA sanctioned by Govt. of Assam & the impact of such increase in terminal benefits paid to employees. The Govt. of Assam has hiked the Dearness Allowance (DA) by 7 % from 100 percent to 107 percent w.e.f 01.07.14 and by another 6% from 107 percent to 113 percent w.e.f 01.01.15, on which APGCL has no control and thus the employees expenses claimed at Rs. 81.56 Cr is the actual expenditure incurred which has been reflected in the Annual Accounts and accordingly claimed in true-up for FY 2014-15. Accordingly, APGCL has claimed the Employee Expenses of Rs. 81.56 Crore as per the Audited Statement of Accounts for FY 2014-15.



3.1.2 Repair and Maintenance (R&M) expenses The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the R&M expenses of Rs. 17.11 Crore. APGCL claims the actual R&M Expenses of Rs. 21.23 Crore for FY 2014-15 as per the Audited Statement of Accounts for FY 2014-15. APGCL would like to submit that the Hon’ble Commission has approved Rs. 17.11 Crore excluding of Lubricants & Consumable stores expenses & any overhauling estimates. However APGCL has claimed an amount of Rs.13.62Crore for Regular R&M , Lubricants & consumable stores of Rs. 0.97 Crore and an additional of Rs. 4.17 Crore&2.37Crore for overhauling of KarbiLangpi Unit#2 &Lakwa TPS Unit # 7 respectively, thus arriving at a total of Rs (13.62 + 0.97+ 4.17 + 2.37 )= 21.13 Crore, as shown below:

Table 6: Repair & Maintenance Expenses Particulars Approved APGCL

Claim (Rs. in Cr)

Vide Order Amount (Rs. in Cr)

Regular R&M Expenses

Vide Order dated 21/11/2014

17.11 13.62 Lubricants & Consumable stores 0.00 0.97

Total Regular R&M 17.11 14.59 Special type R&M Expenses i.e Overhauling of KLHEP Unit # 2 & LTPS Unit # 7

For KLHEP Unit-2: Rs. 4.10 Cr vide Order dtd 21/11/13 &Rs. 12.73 Cr vide Order dtd 07/07/14. Total Rs. 16.83 Cr approved for the whole work. Rs. 9.03 Cr was claimed and allowed in the True-up of 2013-14. Balance approved amount = Rs. 16.83 Cr – Rs. 9.03 Cr= Rs. 7.80 Cr. Actual expenditure: Rs. 9.03 Cr (FY13-14) + Rs. 4.17 Cr (FY 14-15) = Rs. 13.20 Cr. Claimed in the True-up of 2014-15 Rs. 4.17 Cr as per Audited Accounts.

7.80 4.17

For LTPS Unit-7: Rs. 2.40 Cr vide Order dtd 21/11/13 &Rs. 7.50 Cr vide Order dtd 07/07/14. Total Rs. 9.90 Cr approved for the whole work. Part Expenditure: Rs. 2.37 Cr (FY 14-15)

9.90 2.37

Total Special R&M 17.70 6.54 Total (Regular + Special) R & M Expenses

34.81 21.13

The overhauling work of KLHEP Unit# 2 was done during FY 13-14 for which a part expenditure of Rs. 9.03 Cr appeared in FY 2013-14 and the balance of Rs. 4.17 Cr has appeared in FY 2014-15, The Hon’ble Commission has already approved Rs.9.03 Cr in the true up for FY 13-14. Hence the balance of Rs. 4.17 Cr is claimed in True Up 2014-15. The overhauling work of LTPS Unit# 7 was done in December’14 for which a part expenditure of Rs. 2.37 Crore has appeared in FY 2014-15 and claimed in the True Up of 2014-15 and the balance amount shall be claimed in the True-up of the FY 2015-16. Hence both the overhauling expenditure may please be considered by the Hon’ble Commission. From above, it may be noted that the Regular R&M claimed by APGCL is much lower than that approved by the Commission. Accordingly, APGCL has claimed R&M Expense of Rs. 21.13 Crore for truing up of FY 2014-15. 3.1.3 Administration and General (A&G) expenses The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the A&G expenses of Rs. 4.70 Crore. APGCL claims the actual A&G Expenses of Rs. 7.48 Crore for FY 2014-15 as per the Audited



Statement of Accounts for FY 2014-15. In this context, APGCL would like to submit that APGCL incurred an amount of Rs. 4.82Crore towards A&G expenses as against the approved amount of Rs. 4.70 Crore which is slight higher than the later. However, during FY 2014-15 APGCL has incurred a further amount of Rs. 2.68 Cr towards electricity charges payable to APDCL. The expenditure of Rs. 2.68 Cr is already adjusted in the books of accounts of both APGCL and APDCL in the form of book adjustment during the FY 2014-15. APDCL in its books of accounts has made book adjustment against “Liabilities for purchase of power-APGCL”. APGCL in this context has communicated with APDCL for issuance of centralized energy bill and certification of payment of the same for the FY 2014-15. The centralized bill and certification of payment of Rs. 2.68 Cr provided by APDCL is below:



Accordingly, APGCL has claimed A&G Expense of (Rs. 4.80Crore + 2.68Crore) = Rs. 7.48 Crore for truing up of FY 2014-15. 3.2 Interest and Finance Charges The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the interest and finance charges for APGCL as Rs. 32.14 Crore. During the FY 14-15, APGCL has incurred a total interest and finance charges of Rs. 39.92 Crore as per the Audited Statement of Accounts for FY 2014-15 which is inclusive of interest on GPF & Penal interest. APGCL would like to submit that since GPF trust was not formed till FY 2014-15, there is no interest on GPF claimed for that FY in true up. Further there is no Penal interest claimed for that FY in True up 14-15. Hence the details of Interest & Finance charges appeared in Audited Statement of Accounts & Claimed in True up for FY 14-15 are shown in the table below:

Table 7: Interest and Finance Charges Particulars Appeared in

Annual Accounts 14-15

APGCL Petition True

up 14-15 Interest on Loan from State Govt. 14.43 14.43 Interest on Loan from State Govt.- Penal Interest

3.95 0.00

Interest on PFC Loan 38.38 38.38 Interest on GPF 5.58 0.00 Less: Interest Capitalized -21.95 -21.95 Penal Interest Capitalized -0.61 0.00 Bank Charges 0.14 0.14 Total Interest & Finance Charges 39.92 31.00

Moreover the detailed computation of interest on Loan from State Govt. is provided in MS-Excel File Name- “IFC (GOA) 14-15”. The Sanction letters of Loans from GoA received in FY 14-15 is provided at Annex-II. Since the payments ofInterest & repayments made to PFCL during FY 14-15 is done according to the demand raised by PFCL, the same is provided at Annex-III. Accordingly, APGCL claims a total interest and finance charges of Rs. 31.00 Crore for truing up of FY 2014-15.



3.3 Interest on Working Capital The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the interest on working capital of Rs. 19.08 Crore for FY 2014-15. As against the same, APGCL claims the normative interest of working capital of Rs. 25.50 Crore for true-up of FY 2014-15 in accordance with AERC Tariff Regulations, 2006. As per the AERC Tariff Regulations, 2006, the applicable interest rate should be the short-term Prime Lending Rate of State Bank of India as on 1st April of the financial year for which the generating station files petition for Annual Revenue Requirement. Based on this, the applicable SBI PLR is 14.75% existing as on 01.04.14 for FY 2014-15. Further APGCL have not considered O&M and GFA component for Chandrapur Thermal Power Stations (CTPS) during calculation of Interest on working capital as the same is not generating power. The detail of Interest on working capital computation is shown in the table below:

Table 8: Interest on Working Capital Particulars APGCL Petition

True up 14-15 Fuel Cost (1 month) 39.85 O&M expenses (1 month) 8.89 Maintenance spares 11.98 Receivables (2 months) 112.14 Total Working Capital 172.87 Rate of Interest on Working Capital 14.75% Interest on Working Capital 25.50

Accordingly, APGCL claims a total interest on working capital of Rs. 25.50 Crore for truing up of FY 2014-15. . 3.4 Income Tax The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the provision for tax as Rs.0.93 Crore. As against the same, APGCL would claim the Income Tax of Rs. 0.18 Crore as per Statement of Accounts for FY 2014-15. The said expense of Rs. 0.18 Crore is incurred on account of TDS on investments. Relevant TDS certificates are provided at Annex-IV Accordingly, APGCL claims the actual tax paid is Rs. 0.18 Crore for truing up of FY 2014-15. 3.5 Depreciation The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the depreciation for APGCL as Rs. 35.55 Crore. In the Audited statements of accounts, the actual depreciation for FY 2014-15 is calculated on straight line method as per rates of depreciation laid down in the “AERC (Terms & Conditions for Determination of Tariff) Regulations 2006” arriving at a total depreciation of Rs. 30.32 Crore. As specified in Regulation 14 of AERC Tariff Regulations, 2006, assets created using consumer contribution or capital subsidy/grant, etc. need to be excluded from the asset value for the purpose of depreciation. Accordingly APGCL has calculated the depreciation on grant utilized on capital assets at a weighted average rate of depreciation @ 3.92% and the same has been deducted from the total depreciation appeared in Audited statements of accounts to arrive at the depreciation for FY 2014-15 at Rs 24.62 Crore as detailed below:-

Table 9: Depreciation Sl. No.

Particulars Amount (Rs. in Crore)

1 Depreciation appeared in Audited statements of Accounts

30.32

2 Depreciation on Capital Assets funded by Grants/subsidies

5.70

3 Net Depreciation claimed for FY 2014-15 24.62



The detail of the same is provided in MS-Excel File Name- “APGCL_PETITION” & Sheet Name- “DEP”. Accordingly, APGCL claims the depreciation of Rs. 24.62 Crore for true-up of FY 2014-15. 3.6 Return on Equity (ROE) The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the Return on Equity of Rs. 37.99 Crore for FY 2013-14. For the FY 2014-15, APGCL would like to submit the details of the GFA additions and deletions and their corresponding impact on Equity addition and deletion during the FY in the tables shown below:-

Table 10: Calculation Of Cost Of Capital Rs. in Crore

Particulars NTPS LTPS CTPS KLHEP MSHEP Total Approved Gross Capital Cost i.e GFA as on 01-04-2014 177.83 469.67 128.92 511.76 37.56 1325.74 Additions during the F.Y. 2014-15 1.06 5.30 0.00 0.90 1.12 8.38 Deductions during the FY 2014-15 -124.09 -124.09 Adjustment as on 01.04.2015 0.00** Approved Gross Capital Cost as on 01-04-2015 178.89 474.97 4.83 512.66 38.68 1210.03

** The opening GFA of MSHEP was withdrawn during the year as per the comments of both Statutory & C&AG and re-added as on 08-08-2014 i.e FY 2014-15. Hence adjustment appeared at Rs. 0.00 Crore.

Table 11: Calculation Of Approved Equity Capital & Return On Equity:- Rs. in Crore

Particulars NTPS LTPS CTPS KLHEP MSHEP

Equity (Opening Balance ) 53.35 140.90 0.00 68.11 0.00 Add: Increase due to discharges during the year 0.32 1.59 0.00 0.27 7.14

Less: Decrease due to de-capitalisation during the year 0.00 0.00 0.00 0.00 0.00

Less: Decrease due to reversal during the year 0.00 0.00 0.00 0.00 0.00 Equity (Closing Balance) 53.67 142.49 0.00 68.38 7.14 Average Equity 53.51 141.70 0.00 68.25 3.57 Rate of Return on Equity 0.14 0.14 0.14 0.14 0.14 Return on Equity 7.49 19.84 0.00 9.55 0.50 Total Return on Equity 37.38 Crore Accordingly, APGCL claims the Return on Equity of Rs. 37.38 Crore for truing up of FY 2014-15. 3.7 Prior period items APGCL has recorded income through net prior period items for FY 2014- 15 of Rs.14.92 Crore as per the Audited statements of accounts. However APGCL would like to submit the details of Prior period related income and expenses is shown in the table below:



Table 12: Prior Period Income Particulars Annual

Accounts Claimed for

True Up Remarks

Prior Period Income includes:- (i) withdrawal of excess interest of State Govt loan due to rate difference of 0.50%

3.46 0.00 The Hon’ble Commission has disallowed any interest on Loans from GoA till true up for FY 2010-11. However in the true up for FY 2011-12 onwards, the Hon’ble commission approved interest on Loans from GoA by way of its own calculation only. Hence the same is not claimed in Prior period income

(ii) withdrawal of depreciation charged against Myntriang SHEP during FY 2013-14

0.14 0.14

(iii) capitalization of commitment charge of NRPP loan

0.02 0.02

(iv) withdrawal of interest on State Govt. Loan w.r.t Work in Progress (WIP) in prior period

13.04 0.00 The Hon’ble Commission has disallowed any interest on Loans from GoA till true up for FY 2010-11. However in the true up for FY 2011-12 onwards, the Hon’ble commission approved interest on Loans from GoA by way of its own calculation only and does not considered any interest on WIP in the approved ARR. Hence the same is not claimed in Prior period income

(v) Adjustment of fines & notice pay recovered.

0.01 0.01

(vi) Adjustment of price variation bill of LTPS as per C&AG’s comments.

1.60 0.00 The adjustment of price variation bill of LTPS is made with fixed asset & does not form part of any component of ARR, hence not claimed in prior period income. However the effect of same is considered while computing depreciation.

Subtotal (A) 18.27 0.16 (b) Prior period expense includes:- (i) rectification of overhauling bill of LTPS as per comment C&AG

0.40 0.40

(ii) depreciation under provided against PVC bill of LTPS as per comment C&AG

0.05 0.05

(iii) efficiency incentive not provided during 2013-14, as per comment C&AG

0.33 0.33

(iv) registration fees for company registration adjusted

0.05 0.05

(v) GA expenditure incurred on behalf of AEGCL funded AEGCL in prior period

0.02 0.02

(vi) GA expenses made for BijuleeBhawan maintenance and ASEB Sports Club in prior period

1.78 1.78

(vii) ROP arrear paid during the year

0.57 0.57

(viii) Fuel bill of LTPS for prior period

0.15 0.15

Subtotal (B) 3.35 3.35 Net Prior Period (B-A) -14.92 3.19



As observed from the above table, the net prior period is of expense nature. As such, based on the above submission, the net prior period expense for FY 2014-15 is claimed by APGCL amounting Rs. 3.19 Crore. 3.8 Other Income The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15 had approved the other income as Rs. 11.59 Crore. As against the same, APGCL has considered the other income of Rs. 15.57 Crore for true-up for FY 2014-15 as per the Audited Statement of Accounts for FY 2014-15. Accordingly, APGCL claims Other Income as Rs. 15.57 Crore for truing up of FY 2014-15. 3.9 Fuel Cost

The Commission, in the Tariff Order dated November 21, 2014 for FY 2014-15, had approved the Fuel Cost of Rs. 326.70 Crore. During the FY 14-15, APGCL has incurred a total fuel cost of Rs. 458.49 Crore as per the Audited Statement of Accounts for FY 2014-15. However the fuel cost is short accounted in the Annual Accounts of the FY 2014-15. The fact of the same has also been indicated and noted by the Statutory Auditor and CAG. The actual fuel cost incurred in the FY is Rs. 478.23 Crore. The difference of the above amount has already been accounted for in the FY 2015-16 as prior period item. The month wise true copies of actual Fuel Bills raised by APGCL’s suppliers were already submitted to AERC by APGCL in its quarterly FPA Reports vide Nos

i. APGCL/CGM(G)/FPA/2010-11/218/Part/4 dated 16/08/14 ii. APGCL/CGM(G)/FPA/2010-11/218/Part/5 dated 14/11/14 iii. APGCL/CGM(G)/FPA/2015/218/Part-II/3 dated 21/02/15 iv. APGCL/CGM(G)/FPA/2010-11/218/Part/7 dated 30/05/15

A summary of the month-wise fuel cost is given in the table below:

Table 13: Summary of Fuel Cost

Rs. in Cr.

Month NTPS (GAS) LTPS (GAS)

OIL AGCL Total Month OIL AGCL (Supply) GAIL AGCL

(TC) Total

April’14 14.67 0.970 15.64 April’14 12.83 0.07 6.51 0.88 20.29 May’14 15.01 1.00 16.01 May’14 12.23 0.58 7.75 0.91 21.47 June’14 13.15 0.96 14.11 June’14 10.14 0.57 6.90 0.84 18.45 July’14 14.60 1.01 15.61 July’14 10.15 0.61 7.70 0.80 19.26 Aug’14 13.95 1.02 14.97 Aug’14 8.95 0.61 8.45 0.72 18.73 Sept’14 13.37 0.99 14.36 Sept’14 9.70 0.59 7.34 0.78 18.41 Oct’14 13.23 1.02 14.25 Oct’14 9.89 0.61 10.27 0.80 21.57 Nov’14 16.45 1.01 17.46 Nov’14 14.66 0.78 9.25 0.87 25.56 Dec’14 17.35 1.04 18.40 Dec’14 18.61 0.84 9.35 0.94 29.74 Jan’15 17.25 1.04 18.29 Jan’15 20.32 0.67 10.87 0.94 32.80 Feb’15 15.57 0.94 16.51 Feb’15 17.50 0.73 10.71 0.85 29.79 March’15 15.19 1.03 16.23 March’15 17.47 0.78 11.14 0.94 30.32

179.79 12.04 191.83 162.46 7.43 106.22 10.28 286.40 Grand Total =

478.23

Claim = 432.77 Note: Out of the total amount of Rs. 478.23 Cr for Fuel Cost, an amount of Rs. 432.77 Cr has been

claimed in the FY 2014-15. An amount of Rs. 45.46 Cr has not been claimed on account of Regulatory norms.



1 2 3 4 5 6 7 8 9 10 11=(10-6) 12=25 paise x 11

1 NTPS 119.5 50% 523.410 4.50% 499.857 55.78% 591.663 5.76% 557.595 57.738 1.442 LTPS 157.2 50% 688.54 5.50% 650.667 65.72% 935.303 8.55% 855.295 204.629 5.12

Total 1150.523 1526.966 1412.890 6.56

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1 KLHEP 100 85% 92.15% 379.7 216.49 57.02 2.65

Total Incentive for Generation of APGCL for the FY 2014-15 = Rs. 6.56 Cr + Rs. 2.65 Cr = Rs. 9.21 Cr

3.10 Incentive for generation

Table 15: Incentive computation for Hydro station for FY 2014-15

3.11 Incentive for Secondary Energy generation As per paras discussed above it is seen that the ‘Revenue from Sale of Power’ @ Rs. 617.52 Crore includes Rs. 0.35 Crore as secondary energy charge of KLHEP corresponding to FY 2013-14 raised in FY 2014-15. The secondary energy charge for KLHEP is billed to distribution licensee only after achieving the designed generation level; and hence income earned from secondary energy should be allowed over and above the revenue from sale of power from normal bill raised. Accordingly, APGCL claims the income earned from secondary energy of Rs. 0.35 Crore below the line as an incentive for truing up of FY 2014-15. 3.12 Claim approved in AERC’s Review Order dtd. 21.12.15 In the Para B.1 of the above Review Order, the Commission iterated as follows:- “The said claim of APGCL is with respect to under recovery of ARR of FY 2014-15 which shall be trued-up in next tariff order. In the next Tariff petition, APGCL is expected to submit the True Up petition of FY 2014-15, in which APGCL shall submit the gap between actual expense and revenue for FY 2014-15, to be claimed under ARR of 2016-17. As such the differential amount claimed by APGCL in this Review petition shall be considered while truing-up for 2014-15.” Accordingly, APGCL claims Rs. 3.49 Crore for truing up of FY 2014-15. 3.13 Revenue from Sale of Power APGCL’s revenue from sale of power as per the Audited Statement of Accounts for FY 2014-15 appeared as Rs. 617.52 Crore. The breakup of the same is as under

Table 14: Incentive computation for thermal stations for FY 2014-15



Table 16: Revenue from Sale of Power

Particulars Rs. in Crore Variable charges from Normal Bill 327.76 Variable charges from FPA 78.37 Total Variable charges (Normal plus FPA) 406.13 Additional Secondary energy charge of KLHEP for the FY 2013-14

0.35

Fixed Charge 211.04 Total Revenue from sale of power appeared in Annual Accounts

617.52

Less Additional Secondary energy charge of KLHEP for the FY 2013-14

(-) 0.35

Total Revenue from sale of power claimed in the True-up of FY 2014-15

617.17

The statement of month wise bill for Sale of power is as below:

Note: An additional Energy Bill was submitted to APDCL in the FY 2014-15 for Rs. 29,99,349.21 attributed to 11,77,469

kWh of energy due to the single point energy billed to LTPS by APDCL for the period from April’13 to April’14. Although the amount of Rs. 29,99,349.21 was incorporated in the Annual Accounts of APGCL for the FY 2014-15, the energy of 11,77,469 kWh was not included in the accounts due to some inadvertent error. This energy will be reconciled in the accounts of 2015-16. The Certificate from SLDC for this Energy is enclosed at Annex-V.

Accordingly, APGCL claims the actual revenue from sale of power of Rs. 617.17Crore.

Fixed Charge Monthly BillAMOUNT NTPS LTPS Total NTPS LTPS

April'14 171241666.67 105403848.00 153210762.54 258614610.54 0.00 429856277.21 15150280.05 30056086.32 475062643.58

May'14 171241666.67 104281936.00 166278821.40 270560757.40 0.00 441802424.07 14805436.77 23776297.00 480384157.84

June'14 171241666.67 102077932.00 145896868.20 247974800.20 0.00 419216466.87 9265994.68 16986208.38 445468669.93

July'14 171241666.67 102911512.00 143416395.60 246327907.60 0.00 417569574.27 11650988.60 15275253.39 444495816.26

August'14 171241666.67 110148808.00 152348512.32 262497320.32 0.00 433738986.99 11018732.55 12301543.46 457059263.00

Septr'14 171241666.67 105134920.00 142752557.88 247887477.88 0.00 419129144.55 11932382.79 18410407.38 449471934.72

October'14 171241666.67 105110896.00 173656725.00 278767621.00 0.00 450009287.67 10408775.75 14466650.36 474884713.78

November'14 171241666.67 94236868.00 144924064.20 239160932.20 0.00 410402598.87 29997642.51 56977483.08 497377724.46

December'14 185108333.33 113779504.80 207059268.80 320838773.60 0.00 505947106.93 29592644.45 52550613.10 588090364.48

January'15 185108333.33 111134088.00 212373394.20 323507482.20 0.00 508615815.53 53126504.40 94347212.42 656089532.35

February'15 185108333.33 94707802.80 200557225.00 295265027.80 480373361.13 46417791.85 83505694.07 610296847.05

March'15 185108333.33 103068201.60 181177517.70 284245719.30 469354052.63 46753803.47 73886569.20 589994425.30Additional Secondary Energy Charge for 2013-14 of KLHEP ***

0.00 3530043.09 3530043.09 3530043.09Colony sent out energy billing of LTPS for the period 01-04-2013 to 30-04-2014 1918534.14 1918534.14 1918534.14 1080815.07 2999349.21

TOTAL 2110366666.68 1251996317.20 2025570646.98 3277566964.18 3530043.09 5391463673.95 290120977.87 493620833.23 6175205485.05

*** Less: Additional Secondary Energy Charge for 2013-14 of KLHEP -3530043.09 -3530043.09 -3530043.09

NET TOTAL 2110366666.68 1251996317.20 2025570646.98 3277566964.18 0.00 5387933630.86 290120977.87 493620833.23 6171675441.96

617.17

MONTHWISE BILL FOR SALE OF POWER For The Year 2014-15

FPA Bill Total SOP

SOP (Rs. In Crore)

MONTH Variable Charge Secondary Charge

Table 17: Month-wise Statement of Sale of Power



4 TRUING UP FOR THE FY 2014-15 4.1 APPEAL FOR TRUING UP FOR THE FY 2014-15

Based on the above analysis, the appeal for True up for FY 2014-15 is shown in the Table below:

Table 18: Appeal for True-up for the FY 2014-15 Sl. No

Particulars Approved Tariff Order

14-15

Amount appeared in Annual Accounts 14-

15

Amount claimed for True-Up

I POWER GENERATION (MU) Gross Generation 1766.94 1894.66 1894.66 Net Generation 1695.00 1778.73 1778.73 Auxiliary Consumption, Loss % 4.07% 6.12% 6.12% II Fixed Charges

Operation & Maintenance Expenses Employee Expenses 75.75 81.56 81.56 R&M Expenses 17.11 21.13 21.13 A&G Expenses 4.70 7.48 7.48 Interest & Finance Charges 32.14 39.92 31.00 Interest on working Capital 19.08 0.00 24.98 Income taxes 0.93 0.18 0.18 Depreciation 35.55 30.32 24.62 ROE 37.99 0.00 37.38 Prior period items 0.00 -14.92 3.19 Less: Other Income -11.59 -15.57 -15.57 Total Fixed Charges 211.66 150.12 215.96

III Fuel Cost 326.70 458.49 432.77 IV True up for FY 2012-13 -16.79 -16.79 V Impact of Revised true up for FY 2011-12 27.26 27.26 VI Add: Incentive for generation for FY 2014-15 9.21

VII Add: Incentive for Additional Secondary Energy generation for the FY 2013-14 0.35

VIII Add: Claim approved in AERC’s Review Order dtd. 21.12.15 3.49

IX Total Cost 548.83 608.61 672.25 X Revenue from Sale of Power 548.83 617.52 617.52 XI Revenue Gap (+) / Surplus(-)

54.73

Note:

1. As per Review Order of AERC dated 21/12/2015, the following amounts were approved by the Hon’ble Commission to APGCL:

i. Review Order Point No. A.1:Rs. 5.77 Cr (to be claimed in the next Tariff Petition)

ii. Review Order Point No. A.2:Rs. 19.00 Cr (to be claimed in the next Tariff Petition)

iii. Review Order Point No. B.1:Rs. 3.49 Cr (shall be considered while truing-up for 2014-15)

iv. Review Order Point No. C.1:Rs. 43.99 Cr (to be claimed in the next MYT Petition)

2. Copy of Audited Annual Accounts 14-15 along with CAG Report enclosed at Annex-VI 4.2 Impact of True-up claims for 2014-15 APGCL has raised true-up claims for 2014-15 for an amount of Rs. 54.73 Cr. In absence of any provision in the AERC Regulations for under-recovery or over-recovery of True-up amount, APGCL is now proposing to recover this claim amount in six equal installments in separate monthly bills in line with the Regulation 8 (13) of the CERC (Terms and Conditions of Tariff) Regulations, 2014 in the Tariff Order for the FY 2017-18. As such, the total claim for the under-recovery of True-up of the FY 2014-15 including carrying cost is given in the table below:

Table 19: Claim for True-up of FY 2014-15

(Rs in crore) True-up Claim FY 2014-15

True-up claims for 2014-15 54.73 Carrying cost for FY 2015-16 (SBI PLR@ 14.75%) 8.07 Carrying cost for FY 2016-17 (SBI PLR@ 14.05%) 7.69 Total True-up claim including carrying cost 70.49

APPEAL FOR TRUE-UP OF THE FY 2015-16

To


By

ASSAM POWER GENERATION CORPORATION LTD

BijuleeBhawan, Paltanbazar

Guwahati-781 001



5 Review of the performance in the FY 2015-16 5.1 Status of APGCL’s Power station: The actual gross generation of APGCL in the FY 2014-15 is as shown in Table 1.

Table 20: Gross Generation 2015-16 Power Station Gross generation in MU % of

achievement Remarks

Approved Actual NTPS 358.77

(524.23 considering 50% PLF)

507.55 141% (97% considering gross generation

@ 50% PLF)

As NRPP was not commissioned in the FY 2015-16, the revised target for NTPS may be considered as 524.23 MU @50% approved PLF

LTPS with WHRU 861.00 946.80 110% KLHEP 390.00 396.38 102% Myntriang SHEP St-II 22.68 0.38 2% Generation suffered due

to breakdown of SRT on 25/07/15

Myntriang SHEP St-I 18.91 0.00 NIL Project not Commissioned

NRPP open Cycle 295.14 0.00 NIL Project not Commissioned

Total 1946.49 1851.11 95% Total Excluding un-commissioned projects NRPP & MSHEP-I

1797.91 1851.11 103%

Note: The Certificate for Energy Generation of APGCL for the FY 2015-16 from SLDC is enclosed at Annex-VII 5.2 Summary of Plant wise Performance: NTPS: The approved target for NTPS for the FY 2015-16 was 358.77 MU considering decrease in generation by the old units of NTPS due to commissioning of NRPP in August’2015. However, NRPP was not commissioned in the FY 2015-16. As such, the target for NTPS in the FY may be revised considering 50% approved PLF. Performance of NTPS in the FY 2015-16 suffered due to low gas supply and sudden breakdowns of its units. In the 1st and 2nd quarters of 2015-16, generation of NTPS suffered severely due to low gas supply and breakdown of units #3 and #4. Performance in the 3rd quarter was comparatively better than that of the previous quarters, due to better generation in the month of December, however gas supply was poor in November, due to which generation suffered in the month of November. In the 3rd quarter again performance suffered due to breakdown of Units #2 & #5 intermittently. In this period, generation of unit#4 suffered a little as well due to shortage of gas supply. In view of this, the PLF of NTPS was only 48% in the FY 2015-16 and could not achieve the target PLFY of 50%. LTPS: Performance of LTPS in the FY 2015-16 was satisfactory and recorded highest ever generation in its history with 946.797 MU of generation. The unit-1 of LTPS is under forced shutdown since 06/06/15 due rotor damage. There was no other major shutdown of the rest of the units in this period and as such LTPS was able to surpass the target in Gross Generation for the FY 2015-16.



KLHEP: Performance of KLHEP was also satisfactory in the FY 2015-16 due to better monsoon than the previous year. KLHEP generated 396.375 MU in this year surpassing the design energy of 390 MU. MSHEP-II: After the plant got affected by heavy flashflood of 22-08-14 it was put into operation after repairing on 9th Jun 2015. However, Unit# 2 again went into forced shutdown on 22/07/15 due to thrust pad failure. Further, due to the breakdown of the 16/20 MVA Station Reserve Transformer of KLHEP on 25/07/15, power could not be evacuated through grid from MSHEP.Due to this, even though intermittently it was tried to run the machines andevacuate the power through the 33 KV distribution line, it created instability for themachines as this line is unstable. Thus, for the safety of the machines, the project was notin operation for most of the part of the FY 2015-16. 6 Plant wise Operation Performance Data The following table indicates the plant wise operating performance parameters of APGCL for the FY 2015-16.

Table 21: Operating Performance for 2015-16 of NTPS NTPS Approved Actual Gross Energy in MU 358.77

(524.23 considering 50% PLF) 507.55

Aux. Power Cons. (%) 4.5% 5.5% Net Energy in MU 342.62

(500.64 considering 50% PLF) 479.82

Availability (%) 50.0% 50.56% PLF (%) 50.0% 47.9% Gross Station Heat Rate on GCV (kcal/ kWh) 3900 3984 Sp. Gas Consumption (SCM/kWh) -- 0.4299

Table 22: Operating Performance for 2015-16 of LTPS

LTPS + WHRU Approved Actual Gross Energy in MU 861.00 946.80 Aux. Power Cons. (%) 5.5% 8.1% Net Energy in MU 813.64 870.24 Availability (%) 50.0% 66.3% PLF (%) 50.0% 66.7% Gross Station Heat Rate on GCV (kcal/ kWh) 3200 3037 Sp. Gas Consumption(SCM/kWh) -- 0.3011

Table 23: Operating Performance for 2015-16 of KLHEP

KLHEP Approved Actual Gross Energy in MU 390.00 396.38 Aux. Power Cons. (%) 0.5% 0.5% Net Energy in MU 388.05 394.39 Capacity Index (%) 85% 91%

Table 24: Operating Performance for 2015-16 of MSHEP-II

Myntriang St-II Approved Actual Gross Energy in MU 22.68 0.38 Aux. Power Cons. (%) 1.0% 2.1% Net Energy in MU 22.45 0.70



7 Financial Performance 7.1 Operation & Maintenance Expenses 7.1.1 Employee expenses The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16, had approved the Employee Expenses of Rs. 86.91 Crore. APGCL claims the actual Employee Expenses of Rs. 85.53 Crore for FY 2015-16 as per the Audited Statement of Accounts for FY 2015-16.The amount of Rs. 85.53 Cr includes Rs. 3.64 Cr as provision for Revision of Pay (ROP) for the period from Januar’16 to Mar’16. Accordingly, APGCL has claimed the Employee Expenses of Rs. 85.53 Crore as per the Audited Statement of Accounts for FY 2015-16. 7.1.2 Repair and Maintenance (R&M) expenses 7.1.2.1 Regular Repair & Maintenance expenses The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the Regular R&M expenses of Rs. 17.69 Crore. APGCL claims the actual Regular R&M Expenses of Rs. 11.92 Crore for FY 2015-16 as per the Audited Statement of Accounts for FY 2015-16. 7.1.2.2 Special Repair & Maintenance expenses The Commission in their Order dated 24th July, 2015 allowed the following Overhauling expenditures:

Table 25: Expenditure Allowed for Special R&M and Claims

Work Name Approved(Para 4.3.10 of the Order dated 24/07/15)

(Rs. in Cr.)

Revised Amount Approved(Para

5.1.8 of the Order dated 24/07/15)

(Rs. In Cr.)

Final Amount Approved(Order dated 24/07/15)

(Rs. in Cr.)

Claims

Amount (Rs. in Cr)

Remarks

Overhauling of Unit 2 of KLHEP

16.83 16.83 13.20 Claimed Rs. 13.20 Cr (Rs. 9.03 Cr in 2013-14 + Rs. 4.17 Cr in 2014-15) in actual as per Audited Accounts of 2013-14 & 2014-15 as stated in the Para 3.1.2 above.

Overhauling of Unit 2 of LTPS

8.50 12.94 12.94 10.70 Claimed Rs. 10.70 Cr in actual as per Audited Accounts of 2015-16 as stated in the Para 12.1.2.3 below.

Overhauling of Unit 7 of LTPS

9.90 9.90 5.79 Claimed Rs. 5.79 Cr (Rs. 2.37 Cr in 2014-15 + Rs. 3.42 Cr in 2015-16) as per Audited Accounts of 2014-15 & 2015-16 as stated in the Para 3.1.2 above and 12.1.2.3 below

Total 35.23 39.67 29.69



7.1.2.3 Claims for Repair & Maintenance Expenses for the FY 2015-16 The total expenditure claimed for Regular & Special R&M works for the FY 2015-16 is given in the table below:

Table 26: Repair & Maintenance Expenses

Particulars Approved APGCL Claim

(Rs. in Cr) Vide Order Amount

(Rs. in Cr) Regular R&M Expenses Vide Order dated 24-07-2015

.

17.69 10.85 Lubricants & Consumable stores 0.00 1.07

Total Regular R&M 17.69 11.92 Special type R&M Expenses: Overhauling of NTPS unit (#1, #3, #6) and LTPS unit #3

Vide Order dated 24-07-2015

32.00 0.00

Special type R&M Expenses for Overhauling of LTPS Unit # 2

12.94 10.70

Special type R&M Expenses for Overhauling of LTPS Unit #7

Overhauling of LTPS Unit 7: Total amount approved for the work is Rs. 9.90 Cr (Rs. 2.40 Cr vide Order dtd 21/11/13 &Rs. 7.50 Cr vide Order dtd 07/07/14). Out of this part expenditure of Rs. 2.37 Cr has been claimed in the True-up of 2014-15. Balance approved amount = Rs. 9.90 Cr – Rs. 2.37 Cr = Rs. 7.53 Cr.

7.53 3.42

Total Special R&M 52.47 14.12 Total (Regular + Special) R& M Expenses

70.16 26.04

The Commission allowed Rs. 32.00 Cr for Special Type R&M Expenses for Overhauling of NTPS unit (#1, #3, #6) and LTPS unit #3. However, APGCL could not execute the overhauling works for these units due to fund constraint. An amount of Rs. 12.94 Cr for overhauling of Unit 2 of LTPS was allowed by the Commission in the APR of 2014-15 vide Order dated 24/07/2015. However, the overhauling of LTPS Unit was finally done in the November’15. An amount of Rs. 10.70 Cr has incurred as per the Audited Accounts of 2015-16 against this overhauling work and the same has now been claimed by APGCL in the True-up of the FY 2015-16. The overhauling work of LTPS Unit# 7 was done in December’14 for which a part expenditure of Rs. 2.37 Crore has appeared in FY 2014-15 and claimed in the True Up of 2014-15. Another amount of Rs. 3.42 Cr also incurred in the same year, however, this amount was wrongly booked under the head of Capital Expenditure. This error was rectified in the Annual Accounts Statement of 2015-16 under the head of Prior Period Expenditure. Hence, the balance expenditure amount of Rs. 3.42 Cr. for overhauling of Unit 7 of LTPS has been claimed in the True-up of FY 2015-16. Balance amount of the overhauling job of Unit 7 will appear in the FY 2016-17. Accordingly, APGCL has claimed R&M Expense of Rs. 26.04Crore for truing up of FY 2015-16.



7.1.3 Administration and General (A&G) expenses The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the A&G expenses of Rs. 6.56 Crore. APGCL claims the actual A&G Expenses of Rs. 9.42 Crore including Electricity charges and Insurance for NTPS, LTPS & KLHEP for FY 2015-16 as per the Audited Statement of Accounts for FY 2015-16. The A&G expenditure amount of Rs. 9.42 Cr for the FY 2015-16 includes an amount of Rs. 2.95 Cr towards electricity charges payable to APDCL. The provisional Electricity Bill received from APDCL for an amount of Rs. 2.95 Cr for FY 2015-16 is given below:



APGCL’s A&G expenses excluding this electricity bill is Rs. 6.47 Cr, which is lower than the approved amount. It may be noted that the approved amount of 2015-16, which was an escalation of the trued-up A&G expenses of FY 2013-14, did not include electricity expenses. Further, the approved amount for FY 2015-16 also did not include insurance expenses for NTPS and LTPS. The insurance expenses for NTPS & LTPS in the FY 2015-16 isRs. 0.70 Cr (Annex-VIII). If this amount is further excluded from the actual A&G expenses of Rs. 6.47 Cr (excluding the electricity expenses), the A&G expense of APGCL for the FY 2015-16 comes to Rs. 5.77 Cr. As such, the actual A&G expenses of APGCL of Rs. 5.77 Cr excluding the electricity charges and insurance expenses for NTPS & LTPS is much lower than the approved amount of Rs. 6.56 Cr which did not include electricity charges and insurance for NTPS & LTPS. Moreover, in the Review Order dated 21/12/2015, AERC allowed APGCL to claim the amount of Rs. 5.77 Cr for electricity charges for the FY 2013-14 in its next Tariff Petition, which APGCL will claim accordingly in the MYT Petition. In view of the above, APGCL has claimed Rs. 9.42 Cr as A&G Expenses including electricity expenses and Insurance expenses for NTPS, LTPS & KLHEP for the FY 2015-16. 7.2 Interest and Finance Charges The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the interest and finance charges for APGCL as Rs. 42.69Crore. During the FY 2015-16, APGCL has incurred a total interest and finance charges of Rs. 50.35 Crore as per the Audited Statement of Accounts for FY 2015-16 which is inclusive of interest on GPF & Penal interest. APGCL would like to submit that since GPF trust was not formed till FY 2015-16, there is no interest on GPF claimed for that FY in true up. Further there is no Penal interest claimed for that FY in True up 15-16. Hence the details of Interest & Finance charges appeared in Audited Statement of Accounts & Claimed in True up for FY 15-16 are shown in the table below:

Table 27: Interest and Finance Charges Particulars Appeared in

Annual Accounts 15-16

APGCL Petition True

up 15-16 Interest on Loan from State Govt. 30.66 25.89 Interest on Loan from State Govt.- Penal 4.77 0.00



Interest Interest on PFC Loan 46.13 46.13 Interest on GPF 5.71 0.00 Less: Interest Capitalized -37.18 -36.32 Penal Interest Capitalized Bank Charges 0.26 0.26 Total Interest & Finance Charges 50.35 35.96

Moreover the detailed computation of interest on Loan from State Govt. is provided in MS-Excel File Name- “IFC (GOA) 15-16”. The Sanction letters of Loans from GoA received in FY 15-16 is provided at Annex-IX. Since the payments ofInterest & repayments made to PFCL during FY 15-16 is done according to the demand raised by PFCL, the same is provided at Annex-X. Accordingly, APGCL claims a total interest and finance charges of Rs. 35.96Crore for truing up of FY 2015-16. 7.3 Interest on Working Capital The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the interest on working capital of Rs. 27.26 Crore for FY 2015-16. As against the same, APGCL claims the normative interest on working capital of Rs. 25.64 Crore for true-up of FY 2015-16 in accordance with AERC Tariff Regulations, 2006. As per the AERC Tariff Regulations, 2006, the applicable interest rate should be the short-term Prime Lending Rate of State Bank of India as on 1st April of the financial year for which the generating station files petition for Annual Revenue Requirement. Based on this, the applicable SBI PLR is 14.75% existing as on 01.04.15 for FY 2015-16. Further APGCL have not considered O&M and GFA component for Chandrapur Thermal Power Stations (CTPS) during calculation of Interest on working capital as the same is not generating power. The details of Interest on working capital computation is shown in the table below:

Table 28: Interest on Working Capital Particulars APGCL Petition

True up 15-16 Fuel Cost (1 month) 38.75 O&M expenses (1 month) 9.71 Maintenance spares 12.10 Receivables (2 months) 113.29 Total Working Capital 173.85 Rate of Interest on Working Capital 14.75% Interest on Working Capital 25.64

Accordingly, APGCL claims a total interest on working capital of Rs. 25.64 Crore for truing up of FY 2015-16. . 7.4 Income Tax The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the provision for tax as Rs.0.93 Crore. As against the same, APGCL would claim the Income Tax of Rs. 0.24 Crore as per Statement of Accounts for FY 2015-16. The said expense of Rs. 0.24 Crore is incurred on account of MAT. In this regard it may be noted that, APGCL has already paid Rs. 0.38 crore as advance tax (deducted from Fixed Deposits) to the Income Tax Deptt. during FY 2015-16. Relevant TDS certificates are provided at Annex-XI. Accordingly, APGCL claims the actual tax paid is Rs. 0.24 Crore for truing up of FY 2015-16.



7.5 Depreciation The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the depreciation for APGCL as Rs. 49.00 Crore. In the Audited statements of accounts, the actual depreciation for FY 2015-16 is calculated on straight line method as per rates of depreciation laid down in the “AERC (Terms & Conditions for Determination of Tariff) Regulations 2006” arriving at a total depreciation of Rs. 32.04 Crore. As specified in Regulation 14 of AERC Tariff Regulations, 2006, assets created using consumer contribution or capital subsidy/grant, etc. need to be excluded from the asset value for the purpose of depreciation. Accordingly APGCL has calculated the depreciation on grant utilized on capital assets at a weighted average rate of depreciation @ 3.92% and the same has been deducted from the total depreciation appeared in Audited statements of accounts to arrive at the depreciation for FY 2015-16 at Rs 26.08 Crore as detailed below:-

Table 29: Depreciation Sl. No.

Particulars Amount (Rs. in Crore)

1 Depreciation appeared in Audited statements of Accounts 32.04

2 Depreciation on Capital Assets funded by Grants/subsidies (5.96)

3 Net Depreciation claimed for FY 2015-16 26.08 The detail of the same is provided in MS-Excel File Name- “APGCL_PETITION”& Sheet Name- “DEP”. Accordingly, APGCL claims the depreciation of Rs. 26.08 Crore for true-up of FY 2015-16. 7.6 Return on Equity (RoE) The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the Return on Equity of Rs. 38.59Crore for FY 2013-14. For the FY 2015-16, APGCL would like to submit the details of the GFA additions and deletions and their corresponding impact on Equity addition and deletion during the FY in the tables shown below:-

Table 30: Calculation of Cost of Capital Rs. in Crore

Particulars NTPS LTPS CTPS KLHEP MSHEP Total Approved Gross Capital Cost i.e GFA as on 01-04-2014 177.83 469.67 128.92 511.76 37.56 1325.74 Additions during the F.Y. 2014-15 1.06 5.30 0.00 0.90 1.12 8.38 Deductions during the FY 2014-15 -124.09 -124.09 Adjustment as on 01.04.2015 0.00** Approved Gross Capital Cost as on 31-03-2015 178.89 474.97 4.83 512.66 38.68 1210.03

Additions during the F.Y. 2015-16 4.44 1.97 0.00 0.91 4.44 7.32 Deductions during the FY 2015-16 Adjustment as on 01.04.2016 0.47 0.47 Approved Gross Capital Cost as on 31-03-2016 183.33 476.94 4.83 513.57 38.21 1216.88

** The opening GFA of MSHEP was withdrawn during the year as per the comments of both Statutory & C&AG and re-added as on 08-08-2014 i.e FY 2014-15. Hence adjustment appeared at Rs. 0.00Crore.



Table 31: Calculation Of Approved Equity Capital & Return On Equity:- Rs. in Crore

Particulars NTPS LTPS CTPS KLHEP MSHEP

Equity (Opening Balance ) 53.67

142.49 -

68.38

7.14

Add: Increase due to discharges during the year

1.33

0.59 -

0.27

(0.09)

Less: Decrease due to de-capitalisation during the year - - - - - Less: Decrease due to reversal during the year - - - - -

Equity (Closing Balance) 55.00

143.08 -

68.65

7.05

Average Equity 54.33

142.79 -

68.52

7.10

Rate of Return on Equity 14% 14% 14% 14% 14%

Return on Equity 7.61

19.99 -

9.59

0.99

Total Return on Equity 38.18 Crore Accordingly, APGCL claims the Return on Equity of Rs. 38.18 Crore for truing up of FY 2015-16. 7.7 Prior period items APGCL has recorded loss through net prior period items for FY 2015-16 of Rs.24.47 Crore as per the Audited statements of accounts. However APGCL would like to submit the details of Prior period related income and expenses is shown in the table below:

Table 32: Prior Period Income Particulars Annual

Accounts Claimed for True

Up

Remarks

Prior Period Income includes:- (i) Colony sent out energy bill of LTPS for the period 01-07-12 to 31-03-2013

0.22 0.22

(ii) Int. on FD earned 0.04 0.04

(iii) Withdrawal of excess capitalization int on GoA loan loan

0.22 -

The Hon'ble Commission has disallowed any interest on Loans from GoA till true up for FY 2010-11. However in the true up for FY 2011-12 onwards, the Hon'ble commission approved interest on Loans from GoA by way of its own calculation only. Hence the same is not claimed in Prior period income

(iv) withdrawl of excess provision of LEB

0.27 0.27

(iv) Receipt from AEGCL as reimbursement of GA expenses in prior period

0.02 0.02

(v) Withdrawal of excess expenses booked in prior period

0.58 0.58

(vi) Receipt house rent from DHEP for prior period

0.28 0.28

(vi) Receipt from Income Tax Dept. as refund against AY 2014-

0.32 0.32



15

Subtotal (A) 1.95 1.73 (b) Prior period expense includes:- (i) rectification of fuel cost of LTPS as per commnent of Statutory Auditor

19.18 -

Already claimed in Truing Up of FY 2014-15

(i) rectification of fuel cost of LTPS as per commnent of C&AG

0.58 -

Already claimed in Truing Up of FY 2014-15

(iii) Rectification of overhauling expenses of LTPS

3.42 3.42

(iv) Payment made to NSDL as employer's contribution for prior period

0.77 0.77

(v) Depreciation under provided due to adjustment of Assets as commented by C&AG

0.97 0.97

(vi) GA expenses incurred on be half of AEGCL in prior period

0.52 0.52

(vii) ROP arrear paid during the year

0.97 0.97

Subtotal (B) 26.41 6.65 Net Prior Period (B-A) 24.46 4.92

As observed from the above table, the net prior period is of expense nature. As such, based on the above submission, the net prior period expense for FY 2015-16 is claimed by APGCL amounting Rs. 4.92 Crore. 7.8 Other Income The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16 had approved the other income as Rs. 12.83 Crore. As against the same, APGCL has considered the other income of Rs. 10.84 Crore for true-up for FY 2015-16 as per the Audited Statement of Accounts for FY 2015-16. Accordingly, APGCL claims Other Income as Rs. 10.84 Crore for truing up of FY 2015-16. 7.9 Fuel Cost

The Commission, in the Tariff Order dated July 24, 2015 for FY 2015-16, had approved the Fuel Cost of Rs. 500.20 Crore. During the FY 15-16, APGCL has incurred a total fuel cost of Rs. 464.96 Crore as per the Audited Statement of Accounts for FY 2015-16. However APGCL has claimed Rs. 463.74 as actual fuel cost for the truing up of FY 2015-16 The month wise true copies of actual Fuel Bills raised by APGCL’s suppliers were already submitted to AERC by APGCL in its quarterly FPA Reports vide Nos

i. APGCL/CGM(G)/FPA/2010-11/218/Part/8 dated 11/08/15 ii. APGCL/CGM(G)/FPA/2010-11/218/Part/9 dated 30/11/15 iii. APGCL/CGM(G)/FPA/2014-15/218/Part/12dated 09/02/16 iv. APGCL/CGM(G)/FPA/2014-15/218/Part/13 dated 30/06/16

A summary of the month-wise fuel cost is given in the table below:



1 2 3 4 5 6 7 8 9 10 11=(10-6) 12=25 paise x 11

1 LTPS 157.2 50% 688.536 5.50% 650.667 66.69% 946.797 8.09% 870.235 219.569 5.49

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1 2 3 4 5 6 7=(2x6)/5 8= 0.65 x (4-3) x 7

1 KLHEP 100 85% 90.58% 379.7 241.86 63.70 2.31

Total Incentive for Generation of APGCL for the FY 2015-16 = Rs. 5.49 Cr + Rs. 2.31 Cr = Rs. 7.80 Cr

Table 33: Summary of Fuel Cost

Rs. in Cr.

Month NTPS (GAS) LTPS (GAS)

OIL AGCL Total Month OIL AGCL (Supply) GAIL AGCL

(TC) Total

Apr'15 15.27 0.99 16.26 Apr'15 10.63 15.41 0.31 0.91 27.26 May'15 13.84 1.02 14.86 May'15 11.19 14.86 0.30 0.93 27.27 Jun'15 12.13 0.97 13.10 Jun'15 9.91 14.59 0.27 0.29 25.06 Jul'15 11.86 1.01 12.87 Jul'15 10.18 13.64 0.30 0.28 24.40 Aug'15 12.08 1.03 13.11 Aug'15 12.36 13.78 0.17 0.29 26.60 Sep'15 17.33 1.05 18.39 Sep'15 11.64 13.83 0.10 0.28 25.85 Oct'15 12.60 1.05 13.65 Oct'15 9.58 11.35 0.08 0.28 21.29 Nov'15 11.63 1.01 12.65 Nov'15 8.91 10.75 0.24 0.28 20.17 Dec'15 15.66 1.08 16.73 Dec'15 9.07 13.44 0.57 0.33 23.41 Jan'16 12.83 1.06 13.89 Jan'16 8.52 13.91 0.72 0.33 23.49 Feb'16 12.36 0.99 13.35 Feb'16 8.55 14.03 0.64 0.31 23.54 Mar'16 12.86 1.05 13.92 Mar'16 8.76 12.94 0.58 0.33 22.62 Interest Surcharge

1.22 1.22

160.45 12.32 172.77 119.29 162.52 4.31 6.07 292.19

Grand Total =

464.96

Note: Out of the total amount of Rs. 464.96 Cr for Fuel Cost, an amount of Rs. 463.74 has been claimed in the FY 2015-16. An amount of Rs. 1.22 Cr is due to Interest Surcharge Bill of AGCL, which has not been paid by APGCL and hence not claimed. If this payment of Rs. 1.22 Cr is made, the same will be claimed as the Prior Period Expense as and when it is incurred.

7.10 Incentive for generation

Table 34: Incentive computation for Thermal station for FY 2015-16

Table 35: Incentive computation for Hydro station for FY 2015-16



Fixed Charge Monthly Bill

AMOUNT NTPS LTPS TotalNTPS

(AMOUNT)LTPS

(AMOUNT)Apr'15 18,51,08,333.33 10,61,09,546.40 18,33,00,769.30 28,94,10,315.70 - 47,45,18,649.03 4,17,47,048.56 5,48,44,509.00 57,11,10,206.59May'15 18,51,08,333.33 9,79,04,102.40 18,50,41,408.50 28,29,45,510.90 - 46,80,53,844.23 3,90,91,344.25 5,41,75,425.68 56,13,20,614.16Jun'15 18,51,08,333.33 8,18,91,576.00 16,84,51,999.70 25,03,43,575.70 - 43,54,51,909.03 3,19,93,078.29 5,03,87,201.77 51,78,32,189.09Jul'15 18,51,08,333.33 7,55,84,129.40 15,63,03,871.90 23,18,88,001.30 - 41,69,96,334.63 2,92,24,390.54 4,42,77,873.83 49,04,98,599.00Aug'15 26,56,41,666.67 12,44,49,478.80 28,30,81,194.50 40,75,30,673.30 - 67,31,72,339.97 45,97,155.22 -1,35,22,508.34 66,42,46,986.85Sept'15 26,56,41,666.67 15,41,90,116.20 27,81,93,740.11 43,23,83,856.31 - 69,80,25,522.98 1,53,30,080.16 -50,98,663.33 70,82,56,939.81Oct’15 26,56,41,666.67 14,46,87,727.89 25,02,39,446.39 39,49,27,174.28 - 66,05,68,840.95 -1,46,63,233.45 -4,42,70,153.12 60,16,35,454.38Nov'15 26,56,41,666.67 12,94,88,299.86 27,75,45,351.23 40,70,33,651.09 - 67,26,75,317.76 -1,47,63,743.94 -5,28,43,222.66 60,50,68,351.16Dec'15 26,56,41,666.67 17,11,84,032.37 30,90,67,861.72 48,02,51,894.09 - 74,58,93,560.76 -94,43,938.31 -4,94,33,299.10 68,70,16,323.35Jan'16 26,56,41,666.67 13,82,50,663.79 30,82,35,285.37 44,64,85,949.16 - 71,21,27,615.83 -1,14,50,263.47 -4,49,87,784.39 65,56,89,567.97Feb'16 26,56,41,666.67 14,13,53,155.17 29,71,13,188.85 43,84,66,344.02 70,41,08,010.69 -1,29,68,383.21 -4,07,29,787.74 65,04,09,839.74Mar'16 26,56,41,666.67 14,80,84,772.71 28,37,81,672.29 43,18,66,445.00 69,75,08,111.67 -90,52,839.70 -3,79,61,418.97 65,04,93,853.00

82,01,660.63 82,01,660.63 82,01,660.63TOTAL 2865566667 15131771 2981656098 4499544559 8201661 7373312887 89640695 -84287753 7371780586

5828016616788978925

Total DeductionNet Sale of Power claimed for True-up of 2015-16

Additional Secondary Energy Charge for 2015-16 of KLHEP

For The Year 2015-16

MONTH

Variable ChargeSecondary

Charge

FPA Bill

Total SOP

7.11 Incentive for Secondary Energy generation Gross Generation of KLHEP in the FY 2015-16 was 396.375 MU with 6.375 MU of secondary energy. APGCL billed Rs. 0.82 Cr for this energy to APDCL in the month of March’16 @ Rs. 1.293/kWh, which was the lowest variable charge of the central sector thermal power generating station in the north east region for the month of March’2016. Accordingly, APGCL claims the income earned from secondary energy of Rs. 0.82 Crore below the line as an incentive for truing up of FY 2015-16. 7.12 Revenue from Sale of Power APGCL’s revenue from sale of power as per the Audited Statement of Accounts for FY 2015-16 appeared as Rs. 679.72 Crore. The breakup of the same is as under

Table 36: Revenue from Sale of Power Particulars Rs. in Crore Variable charges from Normal Bill 449.35 Variable charges from FPA 0.45 Total Variable charges (Normal plus FPA) 449.80 Additional Secondary energy charge of KLHEP for the FY 2015-16 0.82 Fixed Charge 286.56 (A) Total Revenue from sale of power 737.18 (i) Less Special Overhauling expenses approved in TO dtd 24-07-2015 32.00 (ii) Less ROE of NRPP approved in TO dtd 24-07-2016 8.50 (iii) Less Depreciation of NRPP approved in TO dtd 24-07-2017 16.96 (iv) Less Secondary energy charge of KLHEP for the FY 2015-16 0.82 (B) Total deduction (i+ii+iii+iv) 58.28 (C) Total Revenue from sale of power claimed in the True-up of FY 2015-16 (A-B)

678.90

The statement of month wise bill for Sale of power is as below:

Accordingly, APGCL claims the actual revenue from sale of power of Rs. 678.90 Crore.

Table 37: Month-wise Statement of Sale of Power



8. TRUING UP FOR THE FY 2015-16 8.1 APPEAL FOR TRUING UP FOR THE FY 2015-16

Based on the above analysis, the appeal for True up for FY 2015-16 is shown in the Table below:

Table 38: Appeal for True-up for the FY 2015-16

Sl. No Particulars

Approved Tariff

Order 15-16

Amount appeared in Annual Accounts

15-16

Amount claimed for

True-Up

I POWER GENERATION (MU) Gross Generation 1946.49 1851.107 1851.107 Net Generation 1867.35 1744.821 1744.821 Auxiliary Consumption, Loss % 4.07% 5.74% 5.74% II Fixed Charges Operation & Maintenance Expenditure

Employee Expenses 86.91 85.53 85.53 R&M Expenses (Regular) 17.69 11.92 11.92 R&M Expenses (Overhauling) TO 15-16 32.00 - - R&M Expenses (Overhauling of LTPS unit #2) 10.70 10.70 A&G Expenses 6.56 9.42 9.42 Interest & Finance Charges 42.69 50.35 35.96 Interest on working Capital 27.26 - 25.64 Income taxes 0.93 0.24 0.24 Depreciation 49.00 32.04 26.08 ROE 51.19 - 38.18 Prior period items - 24.47 4.92 Less: Other Income (12.83) (10.84) (10.84)

Total Fixed Charges 301.40 213.83 237.76 III Fuel Cost 500.20 464.96 463.74 IV True up for FY 2013-14 4.10 4.10 V Impact of Review petition on TO for FY 13-14 13.26 VI Total Revenue Requirement 818.967 678.79 705.60 VII Add: Incentive for generation for FY 2015-16 7.80 VIII Add: Incentive for Secondary Energy generation 0.82 IX Total Cost 818.97 678.79 714.22 X Revenue from Sale of Power 818.97 679.72 678.90 XI Revenue Gap (+) / Surplus(-)

35.32

Note:

1. The overhauling work of Units #1, #3 & #6 of NTPS and Unit #3 of LTPS could not be carried out in the FY 2015-16 due to fund constraints. As such the approved amount of Rs. 32.00 Cr for the overhauling of these units has been adjusted in the True-up Petition.

2. AERC allowed an amount of Rs. 35.23 Cr for the overhauling of Unit #2 of KLHEP for an

amount of Rs. 16.83 Cr, Unit #2 of LTPS for an amount of Rs. 8.50 Cr and Unit #7 of LTPS for an amount of Rs. 9.90 Cr in the Para 4.3.10 of the Order dated 24/07/2016. In this Para AERC approved an amount of Rs. 9.03 Cr for Overhauling of Unit #2 of KLHEP in the True-up of the FY 2013-14. Then in the Para 5.1.8 AERC allowed the increased estimate of Rs. 12.94 Cr for Overhauling of Unit #2 of LTPS from earlier estimate of Rs. 8.50 Cr. The overhauling of Unit #2 of LTPS was supposed to be carried out in the FY



2014-15. With the increase of overhauling amount of Unit #2 of LTPS, the total approved amount for Overhauling of Unit #2 of KLHEP, Units #2 and #7 of LTPS becomes Rs. 39.67 Cr as shown in the Table 24 above from earlier Rs. 35.23 Cr. In the Tariff Order dated 24/07/2015 AERC allowed an amount of Rs. 13.26 Cr as balance amount considering Rs. 21.97 Cr (Rs. 9.03 Cr for KLHEP Unit #2 + Rs. 12.94 Cr for LTPS Unit #2) as already expended amount from Rs. 35.23 Cr. The Overhauling of LTPS #2 was finally carried out in the year 2015-16 and an amount of Rs. 10.70 Cr has appeared in the Annual Accounts of 2015-16 for this work. The overall expenditure till the year 2015-16 for overhauling works is Rs. 29.69 Cr against an approved amount of Rs. 39.67 Cr as shown in the Table 24 above.

3. Copy of Audited Annual Accounts (excluding the comments of C&AG)of 2015-16 along

with Statutory Auditors’ Report is enclosed at Annex-XII

8.2 Impact of True-up claims for 2015-16

APGCL has raised true-up claims for 2015-16 for an amount of Rs. 35.32 Cr. In absence of any provision in the AERC Regulations for under-recovery or over-recovery of True-up amount, APGCL is now proposing to recover this claim amount in six equal installments in separate monthly bills in line with the Regulation 8 (13) of the CERC (Terms and Conditions of Tariff) Regulations, 2014 in the Tariff Order for the FY 2017-18. As such, the total claim for the under-recovery of True-up of the FY 2015-16 including carrying cost is given in the table below:

Table 39: Claim for True-up of FY 2015-16

(Rs in crore) True-up Claim FY 2015-16

True-up claims for 2015-16 35.32

Carrying cost for FY 2016-17 (SBI PLR@ 14.05%) 4.96

Total True-up claim including carrying cost 40.28

PETITION FOR

AGGREGATE REVENUE REQUIREMENT FOR THE FYS 2016-17, 2017-18& 2018-19

AND

DETERMINATION OF TARIFF FOR THE FYS 2016-17& 2017-18

Submission of Text and Affidavit

To

Assam Electricity Regulatory Commission

By

ASSAM POWER GENERATION CORPORATION LTD BIJULEEBHAWAN, PALTANBAZAR, GUWAHATI-781 001



9 AGGREGATE REVENUE REQUIREMENT FOR THE FYs 2016-17 TO 2018-19 UNDER THE FRAMEWORK OF THE AERC REGULATIONS 2015

9.1a Multi Year Tariff Frameworks The Assam Electricity Regulatory Commission (Terms and Conditions for Determination of Multi Year Tariff) Regulations, 2015 (hereinafter referred to as “AERC Regulations 2015”)was issued on2ndJune, 2015. APGCL submitted a Business Plan for the 1st Control Period from the FY 2016-17 to FY 2018-19 on 06/11/2015 under the framework of this new Regulation. Thereafter, APGCL revised its Business Plan based on the original Business Plan and replies submitted to the commission on the queries raised by them on the original petition on 31/05/2016. The Business Plan of APGCL was approved by the Hon’ble Commission on 01/09/2016.

APGCL is now submitting the Aggregate Revenue Requirement for the 1st Control Period starting from the FY 2016-17 to the FY 2018-19 and Tariff Petition for the FYs 2016-17 and 2017-18 under the purview of the AERC Regulations 2015 considering the Investment Projects as proposed in the approved Business Plan and the present technical & financial performance of the Generating Stations of APGCL in the FY 2016-17 till now as mentioned in the following sections for the Generation functions. 9.1b Treatment of Corporate Expenses and Corporate Investment in the MYT Petition In this MYT Petition all the corporate expenses and Investment on Consultancy Services for Human Resource Development and Accounting Manuals of APGCL have been allocated to the Running Power Stations and to be commissioned Power Stations(in the MYT Control Period) in the Ratio of their installed capacities.

9.2 Capacity Addition

Considering the revised commissioning date of the ongoing projects, project schedules of the new projects and the present status of the ongoing and new projects, APGCL proposes the following revised Capacity Addition Plan for the MYT Control Period:

Table 40: Capacity Addition Plan for the MYT Control Period Sl.

No. Name of Power

Station Capacity

(MW) Expected COD Year wise Capacity Addition (MW)

Existing 2016-17 2017-18 2018-19 Projects covered under the AERC (Terms & Conditions for Determination of MYT) Regulations, 2015

1 NTPS 119.5 Existing 119.5 119.5[1] 119.5[1] 119.5[1] 2 LTPS 157.2 Existing 157.2 157.2 142.2[1] 142.2[1] 3 KLHEP 100.0 Existing 100.0 100.0 100.0 100.0 4 NRPP 100.0 GT:31/12/16,

WHRU: 30/04/17 63.0 100.0 100.0

5 LRPP 70.0 01/04/2018 70.0 Renewable Energy Projects covered under the AERC (Terms & Conditions for Tariff Determination from RE Sources) Regulations, 2012[2]

6 MSHEP-II 3.0 Existing 3.0 3.0 3.0 3.0 7 MSHEP 10.5 31/03/2017 10.5 10.5 10.5 8 Namrup Solar PV

Project 2 01/12/2017 2.0 2.0

9 Lakwa Solar PV Project 2 01/08/2018 2.0 Total 379.7 453.2 477.2 549.2



Note: 1. Installed Capacity of NTPS has been considered as 119.5 MW as all the units of NTPS will be available for generation. However, for the purpose of projection of operating parameters like Generation, Availability and PLF, operating capacity of 43.5 MW based on availability of fuel with one 21 MW GT and 22.5 MW Unit-6 of NTPS has been considered after commissioning of the GT of NRPP (However, the effective capacity of the WHR Unit 6 will be 11.25 MW against installed capacity of 22.5 MW. As such, for the purpose of calculating Availability and PLF 32.25 MW (21 MW + 11.25 MW) may be considered).

Similarly, installed capacity of LTPS has been taken as 142.2 MW in the FY 2017-18 and

2018-19 assuming the decommissioning of Unit-1 of LTPS by the end of the FY 2016-17. Further, for the purpose of projection of operating parameters like Generation, Availability and PLF in the FY 2018-19, operating capacity of 97.2 MW based on availability of fuel with the 60 MW Phase-II units 5 to 7 and 37.2 MW Waste Heat Recovery Unit-8 of NTPS has been considered after commissioning of the LRPP

2. Tariff Petition for the Renewable Energy Projects is to be submitted separately under the

AERC (Terms & Conditions for Tariff Determination from RE Sources) Regulations, 2012 9.3 Gas Supply Position 9.3.1 NTPS

APGCL submitted in its Business Plan that NTPS requires additional quantity of 0.84MMSCMD gas for running all the old units of NTPS along with 1x100MW NRPPPh-I GT unit. The matter is now reviewed as under: Out of the total present allocation of 0.66 MMSCMD gas, 1x100MW NRPP Ph-I will require 0.492 MMSCMD. With the left over quantity of 0.168MMSCMD, one 21 MW GT Unit along with connected waste heat recovery unit no. 6 will be in operation. Power generation will be as per availability of gas after commissioning of NRPP.

Further, APGCL is of the view that establishment of 1x100MW NRPP phase-II is necessary for enhancement of generation and operational flexibility. The Phase-II NRPP will require 0.492MMSCMD gas. Action has been initiated for obtaining additional gas linkage of 0.324MMSCMD (0.492-0.168) gas from MoP&NG, GoI. Upon obtaining the additional quantity of gas, NRPP Phase-II will be commissioned and old units of NTPS shall be de-commissioned thereafter. 9.3.2. LTPS The gas supply to LTPS is made available from M/s Oil India ltd through transporter M/s AGCL and from M/s GAIL (ONGCL gas) @ 0.5MMSCMD and 0.4MMSCMD respectively. On average LTPS received 0.78MMSCMD of gas against agreement of 0.9MMSCMDfrom the FYs 2013-14 to 2015-16. The low supply of gas is due to the non-compliance to the terms of agreement by the transporter, M/s AGCL for gas supplied by M/s oil India Ltd. M/s AGCL has given assurance



that they will be able to supply gas at high pressure with requisite quantity of 0.5MMSCMD after December, 2016 (Annex-XIII). The required quantity of 0.9MMSCMD of gas will be utilized after commissioning of 70 MW LRPP as follows:- 70MW LRPP=0.36MMSCMD; LTPS Phase-II=0.54MMSCMD (3x20MW). Total=130MW. Including WHRP of 37.2 MW total generation=167.2MW As such, with the allocated quantity of 0.9MMSCMD gas,power generation of LTPS will be 167.2MW. The 4x15MWPhase-I units will not be available for service due to high heat rate. The unit no 1 of phase-I plant of LTPS is out of service due to rotor damage and process for decommissioning of the same has been already initiated. Till commissioning of LRPP, which is scheduled in March 2018, Phase-I units nos 2, 3&4 will be in operation. In view of the above, additional requirement of gas to LTPS is not considered at present.

9.3.3. SilcharPower Project Discussion is going on between ONGCL & APGCL for finalization of certain terms and conditions of Gas Supply Agreement. Main issues are the date of gas off-take and gas pricing. On resolving these issues the GSA will be signed.

PETITION FOR


FOR THE FYS 2016-17, 2017-18 & 2018-19

AND


FOR NAMRUP THERMAL POWER STATION


To


By




AFFIDAVIT – NTPS



PRAYER FOR NTPS



10 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OFNAMRUP THERMAL POWER STATION (NTPS)

10.1 Present Status of NTPS A brief status of the units of NTPS is given in the table below:

Table 41: Present Status of NTPS Units Unit No. Installed

Capacity (MW)

Maximum Operating

Capacity (MW)

Present Status

1 (GT) 20 18 The units are not operating at full load due to high cooling water temperature caused by inefficiency of old cooling water pumps. Six nos of cooling water pumps have been procured which will replace existing six nos of pumps out of seven phase wise. 5 to 6 months may require for installation and commissioning of all the new pumps. Other than the technical problem of cooling, all the units are facing erratic gas supply problem as well. Maximum operating capacity is dependent on availability of gas.

2 (GT) 21 18 3 (GT) 21 20

4 (GT)

11 5 The unit is preferred to keep under forced shutdown in case of unavailability of gas due to its high heat rate. As such, this unit has been under shutdown for most of the time recently in view of low gas supply condition being faced by NTPS. Further, the unit cannot be operated at its full load capacity even when sufficient gas is available to run the unit, as it is facing high exhaust temperature problem (Oil & Air seals). This problem has not been solved due to lack of spare parts. In view of the upcoming NRPP, spares for the unit have not been procured.

5 (ST)

24 10 In addition to the problem of low gas pressure, the unit suffers from technical problems due to which average operating load of the unit is restricted. The load is expected to increase to around 12-13 MW after condenser tube cleaning in the month of November’2016.

6 (WHRU with GTs 1, 2 & 3)

22.5 10 The unit can be run at average operating load of 10 MW depending on the load on the mother units. This unit cannot be run at full load due to technical problems. Major Overhauling of the unit has been proposed in the FY 2017-18 and cost for the overhauling has been proposed as Special Repair & Maintenance Cost.



From Apr’16 to Sep’16, the gas availability position of NTPS against the contracted quantity is given in the table below:

Table 42: Monthly Avg. Gas Availability of NTPS (Apr'16-Sep'16)

Source Contracted quantity

(MMSCMD)

Monthly Avg. Gas Availability (MMSCMD) Apr’16 May’16 Jun’16 Jul’16 Aug’16 Sep’16 Avg. Apr’16-

Sep’16 OIL 0.66 0.47 0.35 0.45 0.46 0.35 0.40 0.41 The gas availability related problems impacted the operating performance of NTPS in the 1stsix months of the FY 2016-17 which is depicted in the table below:

Table 43: Operating Performance of NTPS (Apr'16-Sep'16) Sl. No. Parameters Value

1 Gross Generation (MU) 156.862 2 Auxiliary Consumption (%) 7.4 3 Net Generation (MU) 145.300 4 Availability (%) 29.8 5 PLF (%) 29.0 6 Station Heat Rate on GCV (kcal/kWh) 4380 7 Sp. Gas Consumption (SCM/kWh) 0.4807

The 63 MW Gas Turbine unit of the ongoing NRPP is expected to be commissioned by 31st December 2016 and the complete 100 MW Combined Cycle Project is expected to be commissioned by 30th April 2017. After commissioning of the GT unit of NRPP one 21 MW GT along with the Waste Heat Recovery Unit #6 of NTPS will be operated to utilize the leftover gas. In view of the commissioning of NRPP, except Unit #6, overhauling of the rest of the units of NTPS has not been proposed in the MYT Control Period. 10.2 Investment Proposed for NTPS for the MYT Control Period

The Investment proposed for NTPS for the MYT Control Period is as per the approved investment by AERC vide its Order dated 01/09/2016 on the Business Plan of APGCL. As per the Order on the Business Plan, Major Overhauling of Unit #6 of NTPS amounting to Rs. 1.50 Cr has been proposed as Special R&M Expenditure under O&M head as this overhauling is necessary for the overall health of the unit. As such, the final Investment proposal of APGCL for NTPS for the MYT Control Period is given in the table below:

Table 44: Investment Proposal for NTPS for the MYT Control Period

Sl No. Name of Schemes and Proposed Outlay

Revised Remarks 2016-17

( Rs in Cr) 2017-18 (Rs in Cr)

2018-19 (Rs in Cr)

1 Overhauling of Steam Turbine Unit-6 including procurement of spares & contractual works. 0.00 1.50 0.00 Special

R&M



2

Replacement of existing (3200 metre)11 KV PILC single core aluminium cable from generator terminal to 11KV Unit Transformer of Waste Heat Steam Turbine Unit-6 of NTPS with 425mm2 XLPE aluminium cable along with terminal joints.

0.00 0.50 0.00

3 Replacement of existing Analog AVR for Diesel Generator unit-1 & 2 of Diesel Power House by new microprocessor based digital AVR.

0.00 0.30 0.00

4 Procurement of 2.5 mm² single stranded 4 core (2000 mtr.) and 14 core (1500 mtr.) armored copper control cable for switchyard.

0.00 0.12 0.00

5 Procurement , installation & commissioning of 5 nos.66kV SF6 Circuit Breaker for NTPS switchyard 0.00 0.42 0.00

6 Procurement , installation & commissioning of 2 nos. 33kV SF6 Circuit Breaker for WHP & @ MVA Transformer of NTPS switchyard

0.00 0.16 0.00

7 Procurement of 66 kV, 800 A, double break triple pole gang operated rotating centre pole isolating switch.

0.00 0.25 0.00

8 Procurement & renovation of cooling tower of Steam Turbine unit-5 1.48 0.00 0.00

9 Procurement & renovation of cooling tower of Steam Turbine unit-6 1.09 0.00 0.00

Sub Total Electro-mechanical Works (NTPS): 2.57 3.25 0.00 Civil Works under Namrup Thermal Power Station (NTPS)

10 Construction of colony drains 0.00 0.30 0.15

11

Development of GM office Building i) Construction of Central Gate. ii) Dismantling of old W/C (HR) and construction of same iii) Site Improvement

0.00 0.05 0.00

12 Construction new RCC bridge near Market 0.00 0.15 0.00

13

Development of Power House and its complex i) Stopping of roof leakage ii) PCC works and platform iii) Approach Road iv) Removal and refixing of Rain Water pipe v) Repairing of Diesel Power House

0.00 0.05 0.00

14 Development works of Dillighat Intake site 0.00 0.10 0.00

15 Development of Dillighat water intake site (In Phase I &II ). 0.00 0.00 0.10

16 Construction of security barrack at NTPS 0.40 0.00 0.00

Sub Total Civil Works (NTPS): 0.40 0.65 0.25



Ongoing Scheme:

17

Construction of a new water intake pump house at Dilli river for consumptive water requirement of existing plant and Namrup Replacement Project. (Total cost of the work is Rs. 22.0 Crore, out of which Rs.5.0 Crore already received in 2013-14 & Rs.10.0 Crores is approved in Annual Plan 2015-16 but Rs.3.0 Cr received and another Rs.14.0 Cr is proposed in 16-17 and 17-18).

8.00 6.00 0.00

Sub Total NTPS 10.97 9.90 0.25 Special R&M 0.00 1.50 0.00 Investment NTPS excluding Special R&M 10.97 8.40 0.25

10.3 Proposed Power Generation in the MYT Control Period of NTPS 10.3.1 Technical Parameters considered for Generation Projection of NTPS For the past period of the current FY 2016-17, actual operating performance of NTPS has been considered. The technical parameters considered for the projection of generation for the rest of the MYT Control Period for NTPS are as given in the table below:

Table 45: Technical Parameters for Generation Projection of NTPS Parameters Basis Capacity The total installed capacity of 119.5 MW has been

considered till the commissioning of the GT of NRPP. After commissioning of NRPP GT, the capacity of NTPS has been considered as 43.5 MW with one 21 MW GT and 22.5 MW waste heat recovery unit#6.

Heat Rate 3900 kcal/kWh for combined cycle operation as per the Regulation.

GCV Avg. GCV of 9350 kcal/scm from 2013-14 to 2015-16

Unit/Plant Load Factor At actual for the past period of 2016-17. As generation is projected with leftover gas, Load Factor is not a parameter in the projection after commissioning of NRPP.

Maintenance Schedule As per revised planned maintenance schedule.

Auxiliary Power Consumption

At actual for the past period of 2016-17. 4.5% as per Regulation for projected period.

Gas availability Before Commissioning of NRPP: Contracted quantity of 0.66 MMSCMD. After Commissioning of NRPP: leftover gas from the 0.66 MMSCMD of contracted quantity of gas after consumption by the GT unit of NRPP.



Apr

May

Jun

Jul

Aug Se

pO

ctN

ov Dec Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Se

pO

ctN

ov Dec Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Se

pO

ctN

ov Dec Jan

Feb

Mar

Maintenance TypeMaintenace DaysMaintenance TypeMaintenace DaysMaintenance TypeMaintenace DaysMaintenance TypeMaintenace DaysMaintenance TypeMaintenace DaysMaintenance TypeMaintenace Days 31 19

LEGEND1 MO - Major Overhauling

2

3

4

5

6 MO

NRPP Commissioning

NRPP Commissioning

STA

TIO

N

UNITS

2016-17 2017-18 2018-19

N.T

.P.S

1

10.3.2 Maintenance Schedule of NTPS Even though, in the Business Plan of APGCL, overhauling of Unit-2 was proposed as per OEM’s recommended operating hours of 28000 hrs, now the same has been cancelled in view of the expected commissioning of NRPP. Further, the overhauling of Unit-6 has been deferred to the FY 2017-18 from the earlier proposal in the FY 2016-17 due to fund constraints. The revised Maintenance Schedule including the proposed Major Overhauling of NTPS units is as given below:

Table 46: Maintenance Schedule - NTPS 10.3.3 Projected Generation for the MYT Control Period of NTPS Considering the technical parameters along with gas availability considered in the Section 10.3.2 and the maintenance schedule proposed in Section 10.3.1 above, the following Revised Generation Plan is proposed for NTPS for the FY 2016-17 to 2018-19:

Table 47: Projected Generation of NTPS

Parameters

FY 2016-17 (Actual/

Projected) 2017-18 2018-19

119.5 MW NTPS before NRPP COD Gross Energy in MU 302.438 Aux. Power Cons. (%) 6.0%

Net Generation in MU 284.325 Availability (%) 38% PLF (%) 38% Gross Station Heat Rate on GCV (kcal/ kWh) 3900

Sp. Gas Consumption (SCM/kWh) 0.4171

43.5 MW NTPS old units after NRPP COD Gross Energy in MU 48.817 194.965 197.979 Aux. Power Cons. (%) 4.5% 4.5% 4.5% Net Generation in MU 46.620 186.191 189.070 Availability (%) 52% 51% 52%



2016-17 2017-18 2018-19 RemarksA. Gas supplied by OIL, Duliajan (APM)

1.00 Basic Price (for G.C.V. 10000)/ 1000 SCM 3972.48 3972.48 3972.48As per new gas price implemented from Oct'16

2.00 Basic Price after adjustment with CV 3714.36 3714.36 3714.363.00 Marketing Margin (for NCV 10000) /1000 SCM 200.00 200.00 200.004.00 Marketing Margin after adjustment with CV 168.47 168.47 168.47

Total 3882.83 3882.83 3882.835.00 Sales Tax @ 14.5% % on above 563.01 563.01 563.01

Total (A) 4445.84 4445.84 4445.84B. T.C. for Transportation of the OIL Gas by AGCL

1.00 T.C./ 1000 SCM 439.78 449.67 459.79 Yearly escalation 3% on TC as per agreement.

2.00 Fuel surcharge/ 1000 SCM 40.00 40.00 40.00Total 479.78 489.67 499.79

3.00 Service Tax @ 15% on TC 71.97 73.45 74.97Total (B) 551.74 563.12 574.76

C. Landed price of gas supplied to NTPS (A+B)/ 1000 SCM 4997.58 5008.96 5020.60

Namrup Thermal Power Station

PLF (%) 52% 51% 52% Gross Station Heat Rate on GCV (kcal/ kWh) 3900 3960 3900 Sp. Gas Consumption (SCM/kWh) 0.4171 0.4236 0.4171

10.4 Cost of Fuel of NTPS 10.4.1 Projected Gas Price of NTPS The parameters considered for projecting the landed price of gas for NTPS in the MYT Control period from the month of Oct’16 onwards are as follows: Basic APM Gas price = $ 1.50 / MMBTU (60% of Non-APM gas price of $ 2.50 / MMBTU as

per the existing price declared by MOPNG effective from 1stOct’16) USD exchange rate = Rs.66.74 ($ exchange rate for the month of Sep'16 in Rs as obtained

from RBI website) MMBTU to 1000 SCM conversion factor = 39.68254 With these parameters, the landed gas price has been calculated as given in the table below:

Table 48: Landed Price of Gas for NTPS in the MYT Control Period 10.4.2 Projected Fuel Cost of NTPS For the period from Apr’16 to Aug’16, actual billed fuel cost has been considered. For the month of Sep’16, fuel cost has been projected with the gas price of $3.06/MMBTU prevailing for that month. For the rest of the period of the MYT Control Period the Fuel Costs of NTPS have been projected with the gas prices as per the Table-46 above as given in the table below:



Table 49: Cost of Fuel NTPS

10.5 Financial Projections for NTPS for the MYT Control Period 10.5.1 O&M Expenses Proposed for NTPS in the MYT Control Period 10.5.1.1 Employee Expenses Proposed for NTPS Employee Expenses for the MYT Control Period includes provision for Revision of Pay (ROP) @ 24% of Salary as per the 7th Central Pay Commission assuming implementation of ROP from the FY 2016-17. Other than this extra provision, rest of the calculation for Employee Expenses has been done as per the AERC Regulations 2015. The proposed Employee Expenses for the MYT Control Period for NTPS is given in the table below:

Table 50: Employee Expenses of NTPS for the MYT Control Period

Particulars 2016-

17 2017-

18 2018-

19

Gross Salaries 34.69 36.55 38.53 Revision of Pay @ 24% of Salary 8.07 8.50 8.96 Subtotal 42.75 45.05 47.49 Less: Capitalisation 0.00 0.00 0.00 Total 42.75 45.05 47.49

10.5.1.2 Administrative & General (A&G) Expenses Proposed for NTPS A&G Expenses for the MYT Control Period includes amount for Insurance of fixed Assets. Starting from the FY 2016-17, this amount has been considered as per the actual amount incurred in the FY 2015-16 and then has been escalated as per Regulatory norms for the FYs

Cost of Fuel (NTPS)2016-17

(Apr-Dec) 2017-18 2018-19Actual Fuel Cost From Apr'16-Aug'16 38.53Projected Fuel Cost for Sep'16 6.72All units of Namrup TPS (Oct'16-Dec'16)Gross Generation (MU) 145.58Net Generation (MU) 139.02Gross Combined Cycle Heat Rate on GCV basis kcal/kWh 3900Average GCV of Gas kcal/scm 9350Gas Quantity MMSCM 60.72Landed Price of Gas Rs./1000 CUM 4997.58Cost of Gas (NTPS) in Rs. 303453254.20

Say Rs. In Cr. 30.35Total Fuel Cost for 2016-17 from Apr to Dec in Rs. Cr (Actual + Projected) 75.60

NTPS Fuel Cost Rs./kWh Sentout (Apr'16-Dec'16) 2.66

Namrup TPS Old Units after Commissioning of NRPP GT 2016-17

(Jan-Mar) 2017-18 2018-19Gross Generation (MU) 48.82 194.96 197.98Net Generation (MU) 46.62 186.19 189.07Gross Combined Cycle Heat Rate on GCV basis kcal/kWh 3900 3960 3900.00Average GCV of Gas kcal/scm 9350 9350 9350.21Gas Quantity MMSCM 20.36 82.58 82.58Landed Price of Gas Rs./1000 CUM 4997.58 5008.96 5020.60Cost of Gas (NTPS) in Rs. 101758979.96 413628868.26 414589682.65

Say Rs. In Cr. 10.18 41.36 41.46NTPS Fuel Cost Rs./kWh Sentout 2.18 2.22 2.19



2017-18 and 2018-19. Other than this additional amount, rest of the figures proposed for the MYT Control Period has been considered as per the Regulation. APGCL had to include the amount for Insurance additionally as it started insuring fixed assets of NTPS from the FY 2015-16 only. As such, to truly reflect the present expenditure situation in the A&G head of NTPS, APGCL has added the insurance amount in the MYT Control Period. The proposed A&G Expenses for the MYT Control Period are given in the table below:

Table 51: A&G Expenses of NTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Administrative & General Expenses 3.05 3.21 3.39 Less: Capitalised 0.00 0.00 0.00 Total: 3.05 3.21 3.39

10.5.1.3 Repair & Maintenance (R&M) Expenses Proposed for NTPS The Regular Repair & Maintenance Expenses has been proposed as per the AERC Regulations 2015 for the MYT Control Period. In addition to the Regular R&M Expenses, an amount of Rs. 1.50 Cr has been included in the FY 2017-18 for the Major Overhauling of Unit #6 of NTPS. This Overhauling is necessary for the overall health of the unit and has been proposed as Special Type R&M Expenses as per the Business Plan Order dated 01/09/2016.

Table 52: R&M Expenses of NTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 A. Special Type Repair & Maintenance:- Overhauling Works 0.00 1.50 0.00 B. Regular Repair & Maintenance:- 7.13 7.51 7.92 Grand Total (A+B) 7.13 9.01 7.92

10.5.2 Depreciation Proposed for NTPS in the MYT Control Period

Table 53: Depreciation of NTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Depreciation 2.06 2.20 2.28 Depreciation on 90% of the Assets funded by Grants/subsidies -0.52 -0.59 -0.59 Net Total 1.54 1.61 1.69

10.5.3 Interest & Finance Charges (IFC) proposed for NTPS for the MYT Control Period

Table 54: IFC of NTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Interest on loans 0.00 0.00 0.00 Sub total 0.00 0.00 0.00 Less: Interest capitalised 0.00 0.00 0.00 Total 0.00 0.00 0.00

Note: IFC of NTPS has become nil as the interest has been calculated on the basis of

normative loan outstanding.



10.5.4 Interest on Working Capital (IWC) proposed for NTPS for the MYT Control Period

APGCL has proposed IWC of NTPS for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 55: IWC of NTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 One month Fuel Cost 7.15 3.45 3.46 One month approved O&M Cost 4.41 4.65 4.90 Maintenance Spares @ 30% of O&M Expenses 15.88 16.73 17.64 Two month Receivables 25.16 18.36 18.72 Total 52.60 43.19 44.72 ROI 13.50% 13.50% 13.50% IWC 7.10 5.83 6.04

10.5.5 Return on Equity (ROE) proposed for NTPS for the MYT Control Period APGCL has proposed ROE of NTPS for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 56: ROE of NTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Average Equity 56.65 59.87 61.48 Rate of Return on Equity 15.5% 15.5% 15.5% Return on Equity 8.78 9.28 9.53

10.5.6 Other Income proposed for NTPS for the MYT Control Period APGCL has proposed Other Income of NTPS for the MYT Control Period as given in the Table below:

Table 57: Other Income of NTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Other Income 5.18 5.18 5.18

10.5.7 Profit & Loss (PL) Account proposed for NTPS for the MYT Control Period Based on the proposed Generation in the Section 10.3.3 and expenditure proposed in the Sections 10.5.1 to 10.5.6 above, the Profit & Loss Account of NTPS for the MYT Control Period is proposed as given in the Table below:



Table 58: PL Account of NTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Power Generation Energy generated (MU) 351.25 194.97 197.98 Sale of Power (MU) 330.95 186.19 189.07 Auxiliary Consumption, Loss % 5.78% 4.50% 4.50% INCOME Revenue from tariff & Misc. charges 150.95 110.18 112.34 EXPENDITURE Generation Cost 85.78 41.36 41.46 Employee Expenses 42.75 45.05 47.49 A&G Expenses 3.05 3.21 3.39 R&M Expenses 7.13 9.01 7.92 Depreciation 1.54 1.61 1.69 Interest & Finance Charges 0.00 0.00 0.00 Interest on working Capital 7.10 5.83 6.04 Other Debits (incl. Prov. for bad debts, int of W/Capital etc.) 0.00 0.00 0.00 Extraordinary Items 0.00 0.00 0.00 Other (Misc.) - net prior period credit 0.00 0.00 0.00 Total 147.35 106.08 107.99 ROE 8.78 9.28 9.53 Other Income -5.18 -5.18 -5.18 Annual Revenue Requirement 150.95 110.18 112.34 Surplus(+) / Shortfall(-) 0.00 0.00 0.00

10.6 ARR proposed for NTPS for the MYT Control Period Based on the proposed Generation in the Section 18.4.3.3 and expenditure proposed in the Sections 18.4.5.1 to 18.4.5.6 above, the following Aggregate Revenue Requirement (ARR) is proposed for NTPS for the MYT Control Period:

Table 59: ARR of NTPS for the MYT Control Period Rs. in Cr.

Particulars FY 2016-17 FY 2017-18 FY 2018-19

Gross Generation (MU) 351.25 194.97 197.98 Net Generation (MU) 330.95 186.19 189.07 Aux. Power Consumption (MU) 5.78% 4.50% 4.50% Fixed Charges Operation & Maintenance:- Employee Expenses 42.75 45.05 47.49 A&G Expenses 3.05 3.21 3.39 R&M Expenses 7.13 9.01 7.92 Depreciation 1.54 1.61 1.69 Interest & Finance Charges 0.00 0.00 0.00 Interest on working Capital 7.10 5.83 6.04 ROE 8.78 9.28 9.53 Other Income -5.18 -5.18 -5.18



(A.1) Fixed Charges 65.17 68.82 70.88 (A.2) AERC's Review Order dtd.21.12.2015 21.81 (A) Total Fixed Cost 86.98 68.82 70.88 (B) Fuel Cost 85.78 41.36 41.46 (C) ARR (A) + (B) 172.76 110.18 112.34 Fixed Cost Paise / Kwh (sent out) 262.83 369.61 374.88 Fuel Cost Paise/ Kwh (sent out) 259.18 222.14 219.28 Tariff Paise/ Kwh (sent out) 522.01 591.75 594.16

Note:

1. All the detailed calculations for Generation and Accounting are in the Excel sheets given in the enclosed CD.

2. APGCL has not claimed any Income Tax for NTPS in the MYT Control Period as per the Regulation 36 (Tax on Income) of AERC Regulations 2015.

PETITION FOR


FOR THE FYS 2016-17, 2017-18 & 2018-19

AND


FOR LAKWA THERMAL POWER STATION


To


By




AFFIDAVIT – LTPS



PRAYER FOR LTPS



11 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OFLAKWA THERMAL POWER STATION (LTPS)

11.1 Present Status of LTPS A brief status of the units of LTPS is given in the table below:

Table 60: Present Status of LTPS Units Unit No. Installed

Capacity (MW)

Present Status

Ph-I

1 (GT) 15 The unit is under forced shutdown since 06/06/2015 due to rotor damage. In view of the upcoming LRPP, decommissioning of the unit is under process by APGCL.

2 (GT) 15 The unit is in operating condition and generating power depending on the availability of gas. Main Constraint: Erratic Gas supply by OIL

3 (GT) 15 The unit was put into shutdown on 29/09/2016 for preventive maintenance. Upon inspection, severe deterioration of many parts of the unit was observed and hence now major repairing work of the unit is going on with the available spares. The unit is expected to resume operation by the end of November’16. Major overhauling of the unit has been proposed in the FY 2017-18 and cost for the overhauling has been proposed as Special Repair & Maintenance Cost.

4 (GT) 15 The units are in operating condition and generating power depending on the availability of gas. Main Constraint: Erratic Gas supply by OIL

Ph-II

5 (GT) 20

6 (GT) 20 The unit is in operating condition and generating power depending on the availability of gas. Major Overhauling of the unit from Annual Plan Fund of the FY 2014-15 was earlier scheduled in November’16. However, due to the ongoing repair work of Unit 3, the Major Overhauling of the unit has been rescheduled to December’16. Main Constraint: Erratic Gas supply by OIL

7 (GT) 20 The unit is in operating condition and generating power depending on the availability of gas. Main Constraint: Erratic Gas supply by OIL

8 (WHRU with GTs 5, 6 & 7)

37.2 The unit is in operating condition and generating power depending on the generation of the mother units. Minor Inspection of the unit has been proposed in the FY 2017-18 and cost for the inspection has been proposed as Special Repair & Maintenance Cost.



From Apr’16 to Sep’16, the gas supply position of LTPS against the contracted quantity is given in the table below:

Table 61: Monthly Avg. Gas Availability of LTPS (Apr'16-Sep'16) Source Contracted

quantity (MMSCMD)

Monthly Avg. Gas Availability (MMSCMD) Apr’16 May’16 Jun’16 Jul’16 Aug’16 Sep’16 Avg. Apr’16-

Sep’16 OIL 0.50 0.38 0.37 0.34 0.42 0.42 0.36 0.38

GAIL 0.40 0.35 0.33 0.36 0.40 0.40 0.41 0.38 Total 0.90 0.74 0.70 0.70 0.82 0.82 0.77 0.76 Other than the generation loss due to low gas pressure, the performance of LTPS in the period from Apr’16 to Sep’16 was satisfactory. This is depicted in the following table:

Table 62: Operating Performance of LTPS (Apr'16-Sep'16) Sl. No. Parameters Value

1 Gross Generation (MU) 457.964 2 Auxiliary Consumption (%) 7.4 3 Net Generation (MU) 424.261 4 Availability (%) 65.5 5 PLF (%) 65.0 6 Station Heat Rate on GCV (kcal/kWh) 3070 7 Sp. Gas Consumption (SCM/kWh) 0.3056

The Ph-I turbines (units 1-4) of LTPS are more than 25 years old and have high heat rates. To replace these units LRPP is being constructed. After commissioning of LRPP, Ph-II units (units 5-7) of LTPS will use the leftover gas after consumption by LRPP from the avg. 0.79 MMSCMD of gas being received at LTPS. Further, APGCL is putting all out efforts to obtain the contracted gas linkage of 0.90 MMSCMD as already stated in the Section 1.3. Regarding damaged Unit# 1 of LTPS, APGCL has decided to decommission the unit in view of the shortage of gas supply and upcoming LRPP. The APGCL Board has already approved the proposal for decommissioning of the unit in the Meeting dated 30/09/2016. Now, APGCL has communicated with CEA for further action on the matter vide letter No. APGCL/CGM (G)/Derating/2007-08/38/66 dated 19/10/2016.CEA has responded to APGCL’s letter and requested data on the unit in prescribed format. APGCL will submit the information requested shortly. The unit is expected to be officially decommissioned with the approval of CEA within the current FY. 11.2 Investment Proposed for LTPS for the MYT Control Period

The Investment proposed for LTPS for the MYT Control Period is as per the approved investment by AERC vide its Order dated 01/09/2016 on the Business Plan of APGCL. As per the Order on the Business Plan, Major Overhauling of Unit #3 and Minor Inspection of Unit #8 of LTPS amounting to Rs. 18.20 Cr has been proposed as Special Type R&M Expenditure under O&M head as these overhauling and minor inspection are necessary for the overall health of the machines. As such, the final Investment proposal of APGCL for LTPS for the MYT Control Period is given in the table below:



Table 63: Investment Proposal for LTPS for the MYT Control Period


Revised

Remarks 2016-17 ( Rs in Cr)

2017-18 (Rs in Cr)

2018-19 (Rs in Cr)

Electro-mechanical Works under Lakwa Thermal Power Station (LTPS):

1 Procurement of major spares for overhauling of Gas Turbine Unit #3. 0.00 15.70 0.00 Special

R&M

2 Procurement of some major spares of Waste Heat Recovery Project (WHRP) 0.00 2.50 0.00 Special

R&M

3 Procurement of field instruments of gas turbines units of LTPS 0.00 0.40 0.40

4 Procurement of field instruments of gas compressors units of LTPS 0.00 0.30 0.20

5 Procurement of spares for Gas Compressors & Air Compressors of LTPS 0.00 3.00 3.00

6

Procurement and up gradation of one number Speedtronic Mark-IV Control System to Mark- VIe Control System at GT Unit-5 .

0.00 5.50 0.00

7

Procurement of one no. pump motor set for water Intake along with pipes, valves, cables etc. (Recommendation under PAT Scheme)

0.00 1.00 0.00

8 Phase-I 132kV main bus sectionalizing system with breaker, isolator & electrical panels.

0.00 0.75 0.00

9 Procurement of one no. spare Generator Exciter of 3x20 MW GT units. 0.00 3.00 0.00

10

Online monitoring of air for 3 HRGS stack of WHRP and 3 nos. open cycle Phase-II GT exhaust stack for flue gas analysis and effluent of DM Plant.

0.00 4.00 0.00

11 Up-gradation of present cooling system of Starting Diesel Engine of GT units of Phase-II, LTPS.

0.00 0.20 0.00

12 Replacement of 132 KV and 33 KV Isolators for Ph-I Switchyard, LTPS 0.00 0.35 0.00

13 Procurement of spares for GT Starting Diesel Engine of unit#2, #3, #5 & #6 . 0.00 0.20 0.00

14 Up-gradation of Power Plant Hydrant fire fighting system 0.00 0.75 0.00

15 (a) Installation of new 12" gas pipeline with accessories to accommodate flow computer with online chromatograph.

0.00 0.49 0.00



16

(b) Procurement & installation of Gas Flow Computer (AGA Standard) with online chromatograph including work part for both GAIL and AGCL gas supply

0.00 1.00 0.00

17 Up-gradation Generator control & protection panel of 3x20 MW Ph-II unit (1 unit in first phase).

0.00 1.75 0.00

18

Restoration of the ICCP system of 7.5 km, 12" dia. Natural Gas pipeline from GAIL Terminal (Lakwa) to LTPS and other miscellaneous work.

0.00 0.40 0.00

19 Procurement of 5 nos. of 132 kV isolators for commissioning of transfer bus of Ph-II switchyard.

0.00 0.00 0.50

20

Implementation of Variable Frequency Drive system in two nos. cooling tower fan motors and one no, Boiler Feed Pump motor of LTPS. (Recommendation under PAT Scheme)

0.00 0.20 0.00

21 Refurbishment of Gas Turbine hot section parts of phase-II unit. 0.00 1.00 1.00

22

Procurement of numerical relays i) Numerical relay for 3.3 kV system ii) Numerical relay for 5 nos.33 kV feeders iii) Numerical relay for 132kV for a. 2 nos. Station Transformer and 2 nos. for Generator Transformers.

0.00 0.33 0.00

23 Procurement of Fire tender with foam and water facility at LTPS. 0.00 0.45 0.00

24 Procurement of Plant security measures with CC camera and accessories. 0.00 0.30 0.00

25 Procurement of Air Filter for Gas Turbine of Phase-II. 0.00 0.25 0.00

26 Procurement of Cards and Modules of Speedtronic Mark-IV Gas Turbine Control Systems for Phase-II units.

0.00 0.30 0.40

27 Procurement of Cards and Modules of PLC & MEGAC V Control System for Phase-I units.

0.00 0.05 0.00

28 Procurement of 1 (One) no. HT motor for Gas Compressor unit no. 6, 7, & 8 to be retained as spare.

0.00 0.75 0.00

29 Procurement of spares for Gas Compressor & air compressor of Phase-II at LTPS. 0.70 0.00 0.00

Sub Total Electro-mechanical Works under Lakwa Thermal Power Station (LTPS): 0.70 44.92 5.50

Civil Works under Lakwa Thermal Power Station (LTPS)

30 Construction of Master Drain at LTPS 0.00 0.60 0.00

31 Repairing a part of colony road inside colony at LTPS 0.00 0.30 0.20



32

New departmental quarter for officers of LTPS a) One no. Type -V multi-storeyed building with eight (8) blocks. b) One no. Type-VI multi-storeyed building with eight (8) blocks.

0.00 2.00 0.00

33

Construction of boundary wall around the DTWS pumps house and repairing of part of boundary wall around power Plant area and residential area.

0.00 0.30 0.20

34 Installation of Deep tube well by Rotary Rig and Supply of all required at LTPS materials 0.00 0.09 0.00

Sub Total Civil Works under Lakwa Thermal Power Station (LTPS): 0.00 3.29 0.40

Sub Total LTPS 0.70 48.21 5.90 Special R&M 0.00 18.20 0.00 Investment LTPS excluding Special R&M 0.70 30.01 5.90

11.3 Proposed Power Generation in the MYT Control Period of LTPS 11.3.1 Technical Parameters considered for Generation Projection of LTPS For the past period of the current FY 2016-17, actual operating performance of LTPS has been considered. The technical parameters considered for the projection of generation for the rest of the MYT Control Period for LTPS are as given in the table below:

Table 64: Technical Parameters for Generation Projection of LTPS

Parameters Basis

Capacity FY 2016-17: 157.2 MW FY 2017-18: 142.2 MW FY 2018-19: 97.2 MW (after LRPP commissioning)

Heat Rate 3200 kcal/kWh for combined cycle operation as per Regulation.

GCV Avg GCV of 9834 kcal/scm from 2013-14 to 2015-16

Unit/Plant Load Factor For the GTs 80%minimum unit load factor has been considered. If gas is more or less available for the resultant GT generation, then it has been adjusted accordingly. For WHRU, the generation is projected at average % of generation of WHRU with respect to generation of the parent units no 5,6 & 7 from FY 2013-14 to 2015-16.

Maintenance Schedule As per revised planned maintenance schedule.


At actual for the past period of 2016-17. 5.5% as per Regulation for the projected period.

Gas Availability Before LRPP commissioning:0.79 MMSCMD (Avg. 0.40 MMSCMD of GAIL + Avg. 0.39 MMSCMD of OIL). After LRPP Commissioning: leftover gas after consumption of LRPP Gas Engines.



Apr

May

Jun

Jul

Aug Se

pO

ctN

ov Dec Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Se

pO

ctN

ov Dec Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Se

pO

ctN

ov Dec Jan

Feb

Mar

Maintenance TypeMaintenace Days


Maintenance Type MOMaintenace Days 30


Maintenance Type HGP

Maintenace Days 15

Maintenance Type MOMaintenace Days 25


Maintenance Type MIMaintenace Days 10

LEGEND1 MO - Major Overhauling2 MI - Minor Inspection3 HGP - Hot Gas Path Inspection

STA

TIO

N

UNITS2016-17 2017-18 2018-19

1

7

8

L.T.

P.S

6

5

LRPP Commissioning

Under forced shutdown due to rotor damage. Retirement of the unit is now under consideration due to LRPP.

2

3

4

11.3.2 Maintenance Schedule of LTPS Due to fund constraints the proposed overhauling of the units 3 and 8 has been deferred to the FY 2017-18 from the earlier proposal in the FY 2016-17. Similarly, Hot Gas Path Inspection of Unit-5 has been deferred to the FY 2018-19 from the FY 2016-17 with the required fund for the spares for HGP Inspection being split between two years, i.e., FY 2017-18 and FY 2018-19. The overhauling of Unit #6 with the 2014-15 Annual Plan fund amount has been proposed in the month of December’2016. Spares for this overhauling work have already been procured. This work is already included in the R&M DPR of 2014-15 of APGCL and approved by AERC. The revised Maintenance Schedule including the proposed Major Overhauling of LTPS units is as given below:

Table 65: Maintenance Schedule - LTPS

11.3.3 Projected Generation for the MYT Control Period of LTPS Considering the technical parameters along with gas availability considered in the Section 11.3.1 and the maintenance schedule proposed in Section 11.3.2 above, the following Revised Generation Plan is proposed by APGCL for the FY 2016-17 to 2018-19:

Table 66: Projected Generation of LTPS

Parameters FY

2016-17 (Actual/Projected) 2017-18 2018-19

157.2 MW LTPS before LRPP COD Gross Energy in MU 922.156 887.536 Aux. Power Cons. (%) 6.4% 5.5% Net Generation in MU 862.922 838.722 Availability (%) 67% 71% PLF (%) 66% 71% Gross Station Heat Rate on GCV (kcal/ kWh) 3200 3200 Sp. Gas Consumption (SCM/kWh) 0.3254 0.3254 97.2 MW LTPS Ph-II after LRPP COD Gross Energy in MU 528.981



2016-17 2017-18 2018-19 RemarksA. Gas supply by GAIL (APM)


2.00 10% Royalty /1000 SCM Included Included IncludedTotal 3972.48 3972.48 3972.48

3.00 Basic Price after adjustment with CV 4094.68 4094.68 4094.68

4.00 Marketing Margin (for NCV 10000) /1000 SCM 200.00 200.00 200.00

5.00 Marketing Margin after adjustment with CV 185.72 185.72 185.72

6.00 Fixed Monthly Service charge(Rs./ 1000 SCM) 20.66 21.28 21.92Yearly escalation 3% on TC as per agreement.

7.00 Sales Tax @ 14.5 % on above 623.65 623.74 623.84

Landed price of gas supply to LTPS by GAIL / 1000 SCM(A) 4904.06 4904.15 4904.24

B. Gas supplied by OIL Duliajan (Non APM)



Total 6356.82 6356.82 6356.825.00 Sales Tax @ 14.5 % on above 921.74 921.74 921.74

Landed price of gas supply to LTPS by OIL (B) 7278.56 7278.56 7278.56C. T.C for Transportation of OIL gas by AGCL


2.00 Service Tax @ 15% on TC 104.11 106.97 109.92Total T.C. (C) 798.19 820.14 842.69

D. Landed price of gas supply to LTPS by OIL (B+C)/ 1000 SCM

8076.74 8098.69 8121.25

Wtd Avg price of LTPS gas 6473.70 6484.61 6495.81

Lakwa Thermal Power Station

Aux. Power Cons. (%) 5.5% Net Generation in MU 499.888 Availability (%) 62% PLF (%) 62% Gross Station Heat Rate on GCV (kcal/ kWh) 3200 Sp. Gas Consumption (SCM/kWh) 0.3254

11.4 Cost of Fuel of LTPS

11.4.1 Projected Gas Price of LTPS

The parameters considered for calculating the landed price of gas for LTPS in the MYT Control period from the month of Oct’16 onwards are as follows:

Basic Non-APM Gas price = $ 2.50 / MMBTU (As per the existing price declared by MOPNG effective from 1stOct’16)

Basic APM Gas price = $ 1.50 / MMBTU (60% of Non-APM gas price)

USD exchange rate = Rs. 66.74 ($ exchange rate for the month of Sep'16 in Rs as obtained from RBI website)

MMBTU to 1000 SCM conversion factor = 39.68254

With these parameters, the landed gas price has been calculated as given in the table below:

Table 67: Landed Price of Gas for LTPS in the MYT Control Period



Cost of Fuel (LTPS) 2016-17 2017-18 2018-19Actual Fuel Cost From Apr'16-Oct'16 89.89Projected Fuel Cost for Sep'16 17.40Lakwa TPS (From Oct'16)Gross Generation (MU) 464.19 887.54Net Generation (MU) 438.66 838.72Gross Combined Cycle Heat Rate on GCV basis kcal/kWh 3200 3200Wtd. Average GCV of Gas kcal/scm 9834 9834Gas Quantity MMSCM 151 289Wtd. Avg. Landed Price of Gas Rs./1000 CUM 6473.70 6484.61Cost of Gas in Rs. 977826173.74 1872760859.95

Say Rs. In Cr. 97.78Total Fuel Cost in Rs. Cr 205.08 187.28

Average LTPS Fuel Cost Rs./kWh Sentout 2.38 2.23

Lakwa TPS Ph-II after Commissioning of LRPPGross Generation (MU) 528.98Net Generation (MU) 499.89Gross Combined Cycle Heat Rate on GCV basis kcal/kWh 3200Wtd. Average GCV of Gas kcal/scm 9834Gas Quantity MMSCM 172Wtd. Avg. Landed Price of Gas Rs./1000 CUM 6496Cost of Gas in Rs. 1118115085.32

Say Rs. In Cr. 111.81Average LTPS Ph-II Fuel Cost Rs./kWh Sentout 2.24

11.4.2 Projected Fuel Cost of LTPS For the period from Apr’16 to Aug’16, actual billed fuel cost has been considered. For the month of Sep’16, fuel cost has been projected with the gas price of $3.06/MMBTU prevailing for that month. For the rest of the period of the MYT Control Period the Fuel Costs of NTPS have been projected with the gas prices as per the Table 65 above as given in the table below:

Table 68: Cost of Fuel LTPS 11.5 Financial Projections for LTPS for the MYT Control Period 11.5.1 O&M Expenses Proposed for LTPS in the MYT Control Period 11.5.1.1 Employee Expenses Proposed for LTPS Employee Expenses for the MYT Control Period includes provision for Revision of Pay (ROP) @ 24% of Salary as per the 7th Central Pay Commission assuming implementation of ROP from the FY 2016-17. Other than this extra provision, rest of the calculation for Employee Expenses has been done as per the AERC Regulations 2015. The proposed Employee Expenses for the MYT Control Period for LTPS is given in the table below:

Table 69: Employee Expenses of LTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19




11.5.1.2 Administrative & General (A&G) Expenses Proposed for LTPS A&G Expenses for the MYT Control Period includes amount for Insurance of fixed Assets. Starting from the FY 2016-17, this amount has been considered as per actual amount incurred in the FY 2015-16 and then has been escalated as per Regulatory norms for the FYs 2017-18 and 2018-19. Other than this additional amount, rest of the figures proposed for the MYT Control Period has been considered as per the Regulation. APGCL had to include the amount for Insurance additionally as it started insuring fixed assets of LTPS from the FY 2015-16 only. As such, to truly reflect the present expenditure situation in the A&G head of LTPS, APGCL has added the insurance amount in the MYT Control Period. The proposed A&G Expenses for LTPS in the MYT Control Period are given in the table below:

Table 70: A&G Expenses of LTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Administrative & General Expenses 2.88 2.83 2.77 Less: Capitalised 0.00 0.00 0.00 Total: 2.88 2.83 2.77

11.5.1.3 Repair & Maintenance (R&M) Expenses Proposed for LTPS The Regular Repair & Maintenance Expenses has been proposed as per the AERC Regulations 2015 for the MYT Control Period. In addition to the Regular R&M Expenses, an amount of Rs. 18.20 Cr has been included in the FY 2017-18 for the Major Overhauling of Unit #3 of and Minor Inspection of Unit #8 of LTPS. This Overhauling and Minor Inspection are necessary for the overall health of the units and has been proposed as Special Type R&M Expenses as per the Business Plan Order dated 01/09/2016.

Table 71: R&M Expenses of LTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 A. Special Type Repair & Maintenance:- Overhauling Works 0.00 18.20 0.00 B. Regular Repair & Maintenance:- 7.34 7.00 6.68 Grand Total (A+B) 7.34 25.20 6.68

11.5.2 Depreciation Proposed for LTPS in the MYT Control Period

Table 72: Depreciation of LTPS for the MYT Control Period




11.5.3 Interest & Finance Charges (IFC) proposed for LTPS for the MYT Control Period

Table 73: IFC of LTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Interest on loans 4.69 3.65 2.91 Sub total 4.69 3.65 2.91 Less: Interest capitalised 0.00 0.00 0.00 Total 4.69 3.65 2.91

11.5.4Interest on Working Capital (IWC) proposed for LTPS for the MYT Control Period APGCL has proposed IWC of LTPS for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 74: IWC of LTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 One month Fuel Cost 17.09 15.61 9.32 One month approved O&M Cost 4.80 4.59 4.40 Maintenance Spares @ 30% of O&M Expenses 17.26 16.53 15.83 Two month Receivables 51.69 51.37 35.02 Total 90.84 88.09 64.56 ROI 13.50% 13.50% 13.50% IWC 12.26 11.89 8.72

11.5.5 Return on Equity (ROE) proposed for LTPS for the MYT Control Period APGCL has proposed ROE of LTPS for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 75: ROE of LTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Average Equity 143.19 147.79 153.18 Rate of Return on Equity 15.5% 15.5% 15.5% Return on Equity 22.19 22.91 23.74

11.5.6 Other Income proposed for LTPS for the MYT Control Period APGCL has proposed Other Income of LTPS for the MYT Control Period as given in the Table below:

Table 76: Other Income of LTPS for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Other Income 6.46 6.46 6.46



11.5.7 Profit & Loss (PL) Account proposed for LTPS for the MYT Control Period

Based on the proposed Generation in the Section 11.3.3 and expenditure proposed in the Sections 11.5.1 to 11.5.6 above, the Profit & Loss Account of LTPS for the MYT Control Period is proposed as given in the Table below:

Table 77: PL Account of LTPS for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Power Generation Energy generated (MU) 922.16 887.54 528.98 Sale of Power (MU) 862.92 838.72 499.89 Auxiliary Consumption, Loss % 6.42% 5.50% 5.50% INCOME Revenue from tariff & Misc. charges 310.14 308.20 210.13 EXPENDITURE Generation Cost 205.08 187.28 111.81 Employee Expenses 47.32 45.27 43.31 A&G Expenses 2.88 2.83 2.77 R&M Expenses 7.34 25.20 6.68 Depreciation 14.83 15.63 16.66 Interest & Finance Charges 4.69 3.65 2.91 Interest on working Capital 12.26 11.89 8.72 Other Debits (incl. Prov. for bad debts, int on W/Capital etc.) 0.00 0.00 0.00 Extraordinary Items 0.00 0.00 0.00 Other (Misc.) - net prior period credit 0.00 0.00 0.00 Total 294.41 291.75 192.85 ROE 22.19 22.91 23.74 Other Income -6.46 -6.46 -6.46 Annual Revenue Requirement 310.14 308.20 210.13 Surplus(+) / Shortfall(-) 0.00 0.00 0.00

11.6 ARR proposed for LTPS for the MYT Control Period Based on the proposed Generation in the Section 11.3.3 and expenditure proposed in the Sections 11.5.1 to 11.5.6 above, the following Aggregate Revenue Requirement (ARR) is proposed for LTPS for the MYT Control Period:

Table 78: ARR of LTPS for the MYT Control Period Rs. in Cr.

Particulars 2016-17 2017-18 2018-19

Gross Generation (MU) 922.16 887.54 528.98

Net Generation (MU) 862.92 838.72 499.89

Aux. Power Consumption (MU) 6.42% 5.50% 5.50%

Fixed Charges

Operation & Maintenance:- Employee Expenses 47.32 45.27 43.31 A&G Expenses 2.88 2.83 2.77



R&M Expenses 7.34 25.20 6.68 Depreciation 14.83 15.63 16.66 Interest & Finance Charges 4.69 3.65 2.91 Interest on working Capital 12.26 11.89 8.72 ROE 22.19 22.91 23.74 Other Income -6.46 -6.46 -6.46 (A.1) Fixed Charges 105.06 120.92 98.32 (A.2) AERC's Review Order dtd.21.12.2015 28.69 (A) Total Fixed Cost 133.75 120.92 98.32 (B) Fuel Cost 205.08 187.28 111.81 (C) ARR (A) + (B) 338.83 308.20 210.13 Fixed Cost Paise / Kwh (sent out) 155.00 144.17 196.69 Fuel Cost Paise/ Kwh (sent out) 237.66 223.29 223.67 Tariff Paise/ Kwh (sent out) 392.66 367.46 420.36

Note: 1. All the detailed calculations for Generation and Accounting are in the Excel sheets

given in the enclosed CD.

2. APGCL has not claimed any Income Tax for LTPS in the MYT Control Period as per the Regulation 36 (Tax on Income) of AERC Regulations 2015.

PETITION FOR


FOR THE FYS 2016-17, 2017-18 & 2018-19

AND


FOR KARBI LANGPI HYDRO ELECTRIC PROJECT


To


By




AFFIDAVIT – KLHEP



PRAYER FOR KLHEP



12 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OFKARBI LANGPI HYDRO ELECTRIC PROJECT (KLHEP)

12.1 Present Status of KLHEP A brief status of the units of KLHEP is given in the table below:

Table 79: Present Status of KLHEP Units Unit No.

Installed Capacity

(MW)

Present Status

1 50 Unit-1 was under forced shutdown from 09/04/2016 to 20:54 hrs of 14/06/2016 due to burning of generator stator lead Bar. Presently both the units are in operating condition and generating power depending on the availability of water.

2 50

Due to the forced shutdown of Unit-1 due to burning of generator stator lead bar in the 1st quarter of 216-17, the Capacity Index of KLHEP was only 79.9% for the Apr’16 to Sep’16 period. The operating performance of KLHEP in the period from Apr’16 to Sep’16 is given in the table below:

Table 80: Operating Performance of KLHEP (Apr'16-Sep'16) Sl. No. Parameters Value

1 Gross Generation (MU) 254.245 2 Auxiliary Consumption (%) 0.5 3 Net Generation (MU) 252.974 4 Capacity Index (%) 79.9 5 PLF (%) 57.9

12.2 Investment Proposed for KLHEP for the MYT Control Period

The Investment proposal for KLHEP for the MYT Control Period includes one new item amounting to Rs. 0.75 Cr in the FY 2017-18 in addition to the approved investment by AERC vide its Order dated 01/09/2016 on the Business Plan of APGCL. This item has been included due to the important nature of the work. Further, an item amounting to Rs. 1.50 Cr has been dropped from the FY 2018-19. As such, the new Investment proposal of KLHEP is less by an amount of 0.75 Cr from the approved amount by AERC for the MYT Control Period. The final Investment proposal of APGCL for KLHEP for the MYT Control Period is given in the table below:

Table 81: Investment Proposal for KLHEP for the MYT Control Period


Revised

Remarks 2016-17 ( Rs in Cr)

2017-18 (Rs in Cr)

2018-19 (Rs in Cr)

Electro-mechanical Works under KarbiLangpi Hydro Electric Project



1 Procurement of 220 V, 400AH Battery Bank with suitable battery charger. 0.00 0.65 0.00

2 Improvement of power evacuation system at KLHEP 1.78 6.00 0.00

3 Renovation of existing fire fighting system. 0.00 0.50 0.00

4 Procurement & replacement of existing Field Circuit Breaker with trip coil monitoring provision

0.00 5.50 0.00

5 Remote wireless Control of Valve house's gates and Dam water level monitoring from main control Room at Power House.

0.00 1.50 0.00

6

Replacement / Up-gradation of Electromechanical Relay to Numerical Relay as suggested M/S Fuji Electric with JIS & JEM Standards.

0.00 0.30 0.00

7 Gantry Crane for Major Overhauling of Butterfly Valves and modification of the Valve House

0.00 0.50 0.00

8 Automatic/Digital radial gate operation system at KLHEP Dam 0.00 0.00 0.00 Dropped

9 Illumination for LED lighting in Power House 0.00 0.00 0.50

10 Procurement & replacement of Shaft Seal KLHEP Hydro turbine. 0.23 0.00 0.00

11

Procurement for renovation of 33 kV 8(Eight) units indoor Control/ Relay panel having 2 nos. Incomer & 6 nos. outgoing panel at KLHEP.

0.50 0.00 0.00

12 Procurement of spares for Main Inlet Valve (MIV) of hydro turbine. 0.00 0.75 0.00 New Item.

Sub Total Electro-mechanical Works KLHEP 2.51 15.70 0.50 Civil Works under KarbiLangpiHydel Electric Project

13

Boulder pitching at upstream side of right bank and left bank and downstream side of right bank at Hatidubi Dam including construction of stone masonry drain near Hatidubi Dam

0.50 0.00 0.00

14

River bank protection work at upstream and downstream side of Hatidubi Dam including other Civil maintenance works like repairing of project roads and repairing of residential building etc.

0.00 2.50 0.00

15 Operation and Maintenance of Hydraulic gates. 0.00 0.00 0.00

16 Boulder pitching on slope of High Pressure Steel Liner in Anchor Block No.2 to 4 at KLHEP

0.00 1.20 0.00



17 Reparing and painting of residential buildings 0.00 0.50 0.50

18 Automatic/Digital radial gate operation system at KLHEP Dam 0.00 0.00 1.50

19

Slop stabilization works at the Right Bank (downstream side) and protection works at the top of landslide zone of Dam site at Hatidubi Dam, Karbi Langpi Hydro Electric Project.

0.75 0.00 0.00

20 Development of existing water supply system at KLHEP 0.10 0.00 0.00

Sub Total Civil Works KLHEP 1.35 4.20 2.00 Sub Total KLHEP 3.86 19.90 2.50 Special R&M 0.00 0.00 0.00 Investment KLHEP excluding Special R&M 3.86 19.90 2.50 12.3 Proposed Power Generation in the MYT Control Period of KLHEP 12.3.1 Technical Parameters considered for Generation Projection of KLHEP For the past period of the current FY 2016-17, actual operating performance of KLHEP has been considered. The technical parameters considered for the projection of generation for KLHEP for the rest of the MYT Control Period are as given in the table below:

Table 82: Parameters for Hydro Generation Projection Parameter considered for Gross Generation Projection

Basis

Gross Generation 390.00 MU as per design energy.


0.5% as per Regulation.

12.3.2 Maintenance Schedule of KLHEP No major overhauling of KLHEP units is due in this MYT Control Period. However, there may be Annual Inspection of the units in the control period by the Original Equipment Manufacturer (OEM) and any requirement of overhauling for the units will be determined only after this inspection. Other regular maintenance works are done in the lean season and thus, generation is not impacted. 12.3.3 Projected Generation for the MYT Control Period of KLHEP Considering the technical parameters considered in the Section 12.3.1above, the following Generation Plan is proposed by APGCL for KLHEP for the FY 2016-17 to 2018-19:



Table 83: Projected Generation of KLHEP

Parameters

FY 2016-17 (Actual/

Projected) 2017-18 2018-19

KLHEP Gross Energy in MU 396.233 390.000 390.000 Aux. Power Cons. (%) 0.5% 0.5% 0.5% Net Generation in MU 394.252 388.050 388.050 Availability (%) 90% 90% 90% PLF (%) 45% 45% 45%

The generation for the FY 2016-17 has been considered taking actual generation till Sep’16 and average monthly generation of last three years from the FY 2013-14 to FY 2015-16 for the rest of the period. 12.4 Financial Projections for KLHEP for the MYT Control Period 12.4.1 O&M Expenses Proposed for KLHEP in the MYT Control Period 12.4.1.1 Employee Expenses Proposed for KLHEP Employee Expenses for the MYT Control Period includes provision for Revision of Pay (ROP) @ 24% of Salary as per the 7th Central Pay Commission assuming implementation of ROP from the FY 2016-17. Other than this extra provision, rest of the calculation for Employee Expenses has been done as per the AERC Regulations 2015. The proposed Employee Expenses for the MYT Control Period for KLHEP is given in the table below:

Table 84: Employee Expenses of KLHEP for the MYT Control Period

Particulars 2016-17 2017-18 2018-19


12.4.1.2 Administrative & General (A&G) Expenses Proposed for KLHEP APGCL has proposed A&G Expenses of KLHEP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 85: A&G Expenses of KLHEP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Administrative & General Expenses 4.43 4.67 4.93 Less: Capitalised 0.00 0.00 0.00 Total: 4.43 4.67 4.93



12.4.1.3 Repair & Maintenance (R&M) Expenses Proposed for KLHEP APGCL has proposed R&M Expenses of KLHEP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 86: R&M Expenses of KLHEP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 A. Special Type Repair & Maintenance:- Overhauling Works 0.00 0.00 0.00 B. Regular Repair & Maintenance:- 5.45 5.74 6.05 Grand Total (A+B) 5.45 5.74 6.05

12.4.2 Depreciation Proposed for KLHEP in the MYT Control Period

Table 87: Depreciation of KLHEP for the MYT Control Period


12.4.3Interest & Finance Charges (IFC) proposed for KLHEP for the MYT Control Period

Table 88: IFC of KLHEP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Interest on loans 32.40 31.24 29.60 Sub total 32.40 31.24 29.60 Less: Interest capitalised 0.00 0.00 0.00 Total 32.40 31.24 29.60

12.4.4 Interest on Working Capital (IWC) proposed for KLHEP for the MYT Control Period APGCL has proposed IWC of KLHEP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 89: IWC of KLHEP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 One month Fuel Cost 0.00 0.00 0.00 One month approved O&M Cost 2.43 2.57 2.70 Maintenance Spares @ 30% of O&M Expenses 4.38 4.62 4.87 Two month Receivables 15.49 15.77 15.99 Total 22.31 22.96 23.56 ROI 13.50% 13.50% 13.50% IWC 3.01 3.10 3.18



12.4.5 Return on Equity (ROE) proposed for KLHEP for the MYT Control Period APGCL has proposed ROE of KLHEP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 90: ROE of KLHEP for the MYT Control Period


12.4.6 Other Income proposed for KLHEP for the MYT Control Period APGCL has proposed Other Income of KLHEP for the MYT Control as given in the Table below:

Table 91: Other Income of KLHEP for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Other Income 3.94 3.94 3.94

12.4.7 Profit & Loss (PL) Account proposed for KLHEP for the MYT Control Period Based on the proposed Generation in the Section 12.3.3 and expenditure proposed in the Sections 12.4.1 to 12.4.6 above, the Profit & Loss Account of KLHEP for the MYT Control Period is proposed as given in the Table below:

Table 92: PL Account of KLHEP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Power Generation Energy generated (MU) 396.23 390.00 390.00 Sale of Power (MU) 394.25 388.05 388.05 Auxiliary Consumption, Loss % 0.50% 0.50% 0.50% INCOME Revenue from tariff & Misc. charges 92.94 94.64 95.93

EXPENDITURE Generation Cost 0.00 0.00 0.00 Employee Expenses 19.34 20.38 21.48 A&G Expenses 4.43 4.67 4.93 R&M Expenses 5.45 5.74 6.05 Depreciation 21.52 22.13 22.75 Interest & Finance Charges 32.40 31.24 29.60 Interest on working Capital 3.01 3.10 3.18 Other Debits (incl. Prov. for bad debts, int of W/Capital etc.) 0.00 0.00 0.00 Extraordinary Items 0.00 0.00 0.00 Other (Misc.) - net prior period credit 0.00 0.00 0.00



Total 86.14 87.25 87.99 ROE 10.73 11.32 11.89 Other Income -3.94 -3.94 -3.94 Annual Revenue Requirement 92.94 94.64 95.93 Surplus(+) / Shortfall(-) 0.00 0.00 0.00

12.5 ARR proposed for KLHEP for the MYT Control Period Based on the proposed Generation in the Section 12.3.3 and expenditure proposed in the Sections 12.4.1 to 12.4.6 above, the following Aggregate Revenue Requirement (ARR) is proposed for KLHEP for the MYT Control Period:

Table 93: ARR of KLHEP for the MYT Control Period Rs. in Cr.


Gross Generation (MU) 396.23 390.00 390.00 Net Generation (MU) 394.25 388.05 388.05 Aux. Power Consumption (MU) 0.50% 0.50% 0.50% Fixed Charges Operation & Maintenance:- Employee Expenses 19.34 20.38 21.48 A&G Expenses 4.43 4.67 4.93 R&M Expenses 5.45 5.74 6.05 Depreciation 21.52 22.13 22.75 Interest & Finance Charges 32.40 31.24 29.60 Interest on working Capital 3.01 3.10 3.18 ROE 10.73 11.32 11.89 Other Income -3.94 -3.94 -3.94

(A.1) Fixed Charges 92.94 94.64 95.93 (A.2) AERC's Review Order dtd.21.12.2015 18.25 (A) Total Fixed Cost 111.19 94.64 95.93 Capacity Charge Paise / Kwh (sent out) 141.01 121.94 123.61 Energy Charge Paise/ Kwh (sent out) 141.01 121.94 123.61 Tariff Paise/ Kwh (sent out) 282.02 243.88 247.22

Note:


2. APGCL has not claimed any Income Tax for KLHEP in the MYT Control Period as per the Regulation 36 (Tax on Income) of AERC Regulations 2015.

3. For capacity charge of KLHEP Plant availability factor is considered same as that of Normative Annual Plant Availability Factor.

4. For energy charge of KLHEP Ex-bus schedule energy has been kept same as that of Design energy on ex-power plant basis as per the generation projections.

5. KLHEP does not provide any Free Energy for Home State (FEHS).

PETITION FOR


FOR THE FYS 2016-17, 2017-18 & 2018-19

AND

DETERMINATION OF PROVISIONAL TARIFF

FOR THE FYS 2016-17 & 2017-18

FOR NAMRUP REPLACEMENT POWER PROJECT


To


By




AFFIDAVIT – NRPP



PRAYER FOR NRPP



CIVIL MEI1 HRSG 100% 90% 110 TPH HRSG

2 HRSG CHIMNEY 100% 95% 33 METER HIGHT HRSG CHIMNEY

3 GTG AND GT AUX 99% 100% 70 MW GT SET

4 STG & STG AUX 90% 40% 30 MW ST SET

5 GBC 99% 95% GBC-2 NOS, KOD-1 NO, CW CONSOLE-2 NOS, GCS-4 NOS, ABSOLUTE SEPARATOR-2 NOS, SUCTION KOD-1 NO.

6 IA-PA 99% 99%AIR COMPRESSOR-3 NOS, WET AIR RECEIVER-1 NO, PLANT AIR RECEIVER-1 NO, INST AIR RECEIVER-1 NO, N2 STORAGE-1 NO, ADU-1 NO, N2 PLANT SKID-2 NOS.

7 DM PLANT 50% 0%DM TRANSFER PUMP-2 NOS, DM WATER RE-GENERATION PUMP-2 NOS, HESG FILL PUMP-2 NOS, DM WATER STROGE TANK-2 NOS, DM WATER BANK WASH OVERHEAD TANK-1 NO, NEUTRALISING PIT-1 NO.

8CLARIFIED WATER SYSTEM

45% 0%HP PUMP-2 NOS, SP PUMP-2 NOS, CT MAKE UP PUMP-2 NOS, JOCKEY PUMP-2 NOS, POTABLE WATER PIMP-2 NOS, SERVICE WATER PUMP-2 NOS, DEM FEED PUMP-2 NOS.

9 CW & ACW SYSTEM 90% 40% CW PUMP-3 NOS, ACW PUMP-2 NOS, CCW PUMP-2 NOS.

10 EDG 99% 99% 850 KVA SILENT DG SET+5 KL HSD STROGE TANK.

11 TRANSFOMER YARD 99% 90% GT TRANSFORMER, STG TRANSFORMER, SAT, SST

12 DE-AERATOR & BFP 99% 40%IP BFP-2 NOS, LP BFP-2 NOS, HP BFP-3 NOS, DE-AERATOR-1 NO, COND. REC. PUMP-2 NOS PHE-2 NOS, MIXING TANK-1 NO, CCW EXPANSION TANK-1 NO.

13 COOLOMG TOWER 45% 0% FRP FAN WITH MOTOR-6 SET.

14 ETP 25% 0%

TRANSFORMER OILY WASTE WATER COLLECTION SYSTEM, GTG OILY WASTY WATER COLLECTION SYSTEM, HRSG BLOW DOWN TANK, STG OILY WATER, CENTRAL MONITORING SYSTEM, TRAETED OIL COLLECTION SUMP SLUDGE PIT.

15FIRE PROTECTION SYSTEM

1%SMOKE DETECTION SYSTEM, PLANT FIRE HYDRANTS, SPRINKLER SYSTEM.

16 AIR CONDITION SYSTEM

100% 10% CENTRAL AIR CONDITIOINING SYSTEM.

Sl. No.

AREACOMPLETED UPTO 22-10-

2016 REMARLS

13 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OF NAMRUP REPLACEMENT POWER PROJECT (NRPP)

13.1 Present Status of NRPP The NRPP is a replacement project for the old NTPS which is one of the oldest base load thermal power stations in India with gas turbines using natural gas as fuel. The gas turbine units (1, 2, 3& 4) of NTPS had outlived their designed lives of one lakh running hours in mid-eighties and early nineties. Therefore, APGCL had contemplated installation of a higher efficiency advanced class gas turbine combined cycle power plant having capacity of 100MW (Nominal) in the 1st phase. The 1st phase of NRPP is of capacity of 100MW anduses natural gas from the existing gas linkage of 0.66 MMSCMD for NTPS. The project is located within the premises of NTPS and adjacent to the existing plant. The COD of the 63 MW GT unit of NRPP is expected by 31/12/2016. The whole Combined Cycle project along with the 37 MW Waste Heat Recovery Unit is expected to be commissioned by 30/04/2017. (i) Physical Progress of NRPP The physical progress of the project as on 22/10/2016 is given in the table below:

Table 94: Physical Progress of NRPP



(ii) Financial Progress of NRPP The financial progress of NRPP as on 30/09/2016 is 68%. The details of the expenditure are given in the table below:

Table 95: NRPP Financial progress Sl No. Fund Sources Amount

(Rs. in Cr) Amount

Received As on 30/09/2016

(Rs. in Cr)

Expenditure As on

30/09/2016 (Rs. in Cr)

1 Amount from PFC as Loan 484.84 285.00 261.35 2 Amount from Govt. of Assam

as Loan 10.12 10.12 10.12

3 Equity 198.77 198.77 198.77 Total= 693.73 493.89 470.24

13.2 Capital Expenditure of NRPP in the MYT Control Period The expected date of combined cycle commissioning of NRPP is within 30th April, 2017 which is as given in the Business Plan of APGCL. As such, the Capital Investment pattern of NRPP is unchanged and is as given in the two Tables below:

Table 96: NRPP Capital expenditure during control period

Up to 31-03-16

FY 2016-17

FY 2017-18

Total In RsCrore

Capital expenditure 450.15 173.58 70.00 693.73

Table 97: NRPP financing of capital Expenditure

Year Up to 31-03-2016

FY 2016-17

FY 2017-18

Total in RsCrore

Equity 198.77 0.00 0.00 198.77 Debt 251.38 173.58 70.00 494.96

13.3 Proposed Power Generation in the MYT Control Period of NRPP 13.3.1 Technical Parameters considered for Generation Projection of NRPP The Generation Plan of NRPP for the period of FY 2016-17 to 2018-19 has been proposed considering the following parameters:



Table 98: Parameters for NRPP Generation Projection Parameters Basis

Capacity From 01/01/2017 to 30/04/2017: 63 MW From 01/05/2017 onwards: 100 MW

Heat Rate For Open Cycle Operation: Calculated from normative Combined Cycle Heat Rate For Combined Cycle operation: As per Regulation (Design Heat Rate of 100 MW CCPP on LHV or NCV is1705.8 kcal/kWh. Design Heat Rate on GCV is 1893.4 kcal/kWh. CCPP Heat Rate considered for the MYT Control Period = 1893.4 X 1.05 kcal/kWh)

GCV Avg. GCV of 9350 kcal/scmof the gas received at NTPS from 2013-14 to 2015-16

Unit/Plant Load Factor Combined cycle PLF of 85% is considered as per Regulation.

Maintenance Schedule As a new station, regular maintenance shutdown has been considered to be included in the 85% PLF


4% for open cycle and 5% for combined cycle operation as per Regulation

Gas availability As per Heat Rate and Avg. GCV of the gas received at NTPS to be consumed from the 0.66 MMSCMD of contracted gas quantity for NTPS.

13.3.1a Heat Rate of NRPP The Design Heat Rate of NRPP in Combined Cycle is 1705.8 kcal/kWh on LHV or NCV. CCPP Heat Rate on GCV has been derived from the Heat Rate on NCV by multiplying it with the factor 1.11. Heat Rate of NRPP in Combined Cycle operation has been considered as per Regulation by multiplying the Design Heat Rate with the factor 1.05. As NRPP is a combined cycle project, the Heat Rate for Open Cycle operation has been derived from the Normative Heat Rate for combined cycle. An excerpt from the Contract Document of NRPP on the guaranteed Heat Rate is given below:



13.3.2 Projected Generation for the MYT Control Period of NRPP Considering the technical parameters along with gas availability considered in the Section 13.3.1 the following Revised Generation Plan is proposed for NRPP for the FYs 2016-17 to 2018-19:



2016-17 2017-18 2018-19 RemarksA. Gas supplied by OIL, Duliajan (APM)



Total 3882.83 3882.83 3882.835.00 Sales Tax @ 14.5% % on above 563.01 563.01 563.01

Total (A) 4445.84 4445.84 4445.84B. T.C. for Transportation of the OIL Gas by AGCL


2.00 Fuel surcharge/ 1000 SCM 40.00 40.00 40.00Total 479.78 489.67 499.79

3.00 Service Tax @ 15% on TC 71.97 73.45 74.97Total (B) 551.74 563.12 574.76

C. Landed price of gas supplied to NTPS (A+B)/ 1000 SCM 4997.58 5008.96 5020.60

Namrup Replacement Power Project

Table 99: Projected Generation of NRPP

Parameters FY

2016-17 2017-18 2018-19 NRPP Gross Energy in MU 115.668 721.956 744.600 Aux. Power Cons. (%) 4.0% 4.9% 5.0% Net Generation in MU 111.041 686.244 707.370 Availability (%) 85% 85% 85% PLF (%) 85% 85% 85% Gross Station Heat Rate on GCV (kcal/ kWh) 3156 2050 1988 Sp. Gas Consumption (SCM/kWh) 0.3375 0.2193 0.2126

13.4 Cost of Fuel of NRPP 13.4.1 Projected Gas Price of NRPP The parameters considered for calculating the landed price of gas for NRPP in the MYT Control period are as follows: Basic APM Gas price = $ 1.50 / MMBTU (60% of Non-APM gas price of $ 2.50 / MMBTU as

per the existing price declared by MOPNG effective from 1stOct’16) USD exchange rate = Rs.66.74 ($ exchange rate for the month of Sep'16 in Rs as obtained

from RBI website) MMBTU to 1000 SCM conversion factor = 39.68254 With these parameters, the landed gas price has been calculated as given in the table below:

Table 100: Landed Price of Gas for NRPP in the MYT Control Period



13.4.2 Projected Fuel Cost of NRPP With the gas prices as per the Table 98 above the Fuel Costs of NRPP have been projected as given in the table below:

Table 101: Cost of Fuel NRPP

13.5 Financial Projections for NRPP for the MYT Control Period 13.5.1 O&M Expenses Proposed for NRPP in the MYT Control Period APGCL has proposed O&M Expenses of NRPP for the MYT Control Period as given in the Table below:

Table 102: O&M Expenses of NRPP for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 O&M Expenses 4.18 21.59 24.06

APGCL has divided the normative amount for O&M Expenses for NRPP in the ratio of 93:7 between Employee Cost and A&G Expenses. The Employee Expenses hence derived for the MYT Control Period then has been increased @ 24% forthe provision of Revision of Pay (ROP) as per the 7th Central Pay Commission assuming implementation of ROP from the FY 2016-17. Other than this extra provision, rest of the calculation for O&M Expenses has been done as per the AERC Regulations 2015. 13.5.2 Depreciation Proposed for NRPP in the MYT Control Period APGCL has proposed Depreciation of NRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 103: Depreciation of NRPP for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 Depreciation 13.48 33.57 34.52 Depreciation on 90% of the Assets funded by Grants/subsidies 0.00 -0.06 0.00 Net Total 13.48 33.51 34.52

Cost of Fuel (NRPP) 2016-17 2017-18 2018-19Gross Generation (MU) 115.67 721.96 744.60Net Generation (MU) 111.04 686.24 707.37Gross Heat Rate on GCV basis kcal/kWh 3156 2050 1988Average GCV of Gas kcal/scm 9350 9350 9350Gas Quantity MMSCM 39.04 158.32 158.32Landed Price of Gas Rs./1000 CUM 4997.58 5008.96 5020.60Cost of APM Gas (NRPP) in Rs. 195097464.37 793030191.77 794872313.72

Say Rs. In Cr. 19.51 79.30 79.49NRPP Fuel Cost Rs./kWh Sentout 1.76 1.16 1.12



13.5.3 Interest & Finance Charges (IFC) proposed for NRPP for the MYT Control Period APGCL has proposed IFC of NRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 104: IFC of NRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Interest on loans 16.34 45.07 55.09 Sub total 16.34 45.07 55.09 Less: Interest capitalised -13.80 -2.33 0.00 Total 2.54 42.74 55.09

13.5.4 Interest on Working Capital (IWC) proposed for NRPP for the MYT Control Period APGCL has proposed IWC of NRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 105: IWC of NRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 One month Fuel Cost 1.63 6.61 6.62 One month approved O&M Cost 0.35 1.79 2.00 Maintenance Spares @ 30% of O&M Expenses 1.25 6.46 7.22 Two month Receivables 7.50 35.79 38.55 Total 10.73 50.65 54.40 ROI 13.50% 13.50% 13.50% IWC 1.45 6.84 7.34

13.5.5 Return on Equity (ROE) proposed for NRPP for the MYT Control Period APGCL has proposed ROE of NRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 106: ROE of NRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Average Equity 99.39 198.77 198.77 Rate of Return on Equity 15.5% 15.5% 15.5% Return on Equity 3.85 30.81 30.81

13.5.6 Profit & Loss (PL) Account proposed for NRPP for the MYT Control Period Based on the proposed Generation in the Section 13.3.2and expenditure proposed in the Sections 13.5.1 to 13.5.5 above, the Profit & Loss Account of NRPP for the MYT Control Period is proposed as given in the Table below:



Table 107: PL Account of NRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Power Generation Energy generated (MU) 115.67 721.96 744.60 Sale of Power (MU) 111.04 686.24 707.37 Auxiliary Consumption, Loss % 4.00% 4.95% 5.00% INCOME Revenue from tariff & Misc. charges 45.01 214.78 231.31

EXPENDITURE Generation Cost 19.51 79.30 79.49 O&M Expenses 4.18 21.59 24.06 Depreciation 13.48 33.51 34.52 Interest & Finance Charges 2.54 42.74 55.09 Interest on working Capital 1.45 6.84 7.34 Other Debits (incl. Prov. for bad debts, int of W/Capital etc.) 0.00 0.00 0.00 Extraordinary Items 0.00 0.00 0.00 Other (Misc.) - net prior period credit 0.00 0.00 0.00 Total 41.16 183.97 200.50 ROE 3.85 30.81 30.81 Other Income 0.00 0.00 0.00 Annual Revenue Requirement 45.01 214.78 231.31 Surplus(+) / Shortfall(-) 0.00 0.00 0.00

13.6 ARR proposed for NRPP for the MYT Control Period Based on the proposed Generation in the Section 13.3.2 and expenditure proposed in the Sections 13.5.1 to 13.5.5above, the following Aggregate Revenue Requirement (ARR) is proposed for NRPP for the MYT Control Period:

Table 108: ARR of NRPP for the MYT Control Period Rs. in Cr.


Gross Generation (MU) 115.67 721.96 744.60

Net Generation (MU) 111.04 686.24 707.37

Aux. Power Consumption (MU) 4.00% 4.95% 5.00%

Fixed Charges

O&M Expenses 4.18 21.59 24.06

Depreciation 13.48 33.51 34.52

Interest & Finance Charges 2.54 42.74 55.09 Interest on working Capital 1.45 6.84 7.34 ROE 3.85 30.81 30.81 Other Income 0.00 0.00 0.00



(A) Total Fixed Cost 25.50 135.48 151.82 (B) Fuel Cost 19.51 79.30 79.49 (C) ARR (A) + (B) 45.01 214.78 231.31 Fixed Cost Paise / Kwh (sent out) 229.63 197.24 214.63 Fuel Cost Paise/ Kwh (sent out) 175.70 115.45 112.37 Tariff Paise/ Kwh (sent out) 405.33 312.69 327.00

Note:


2. APGCL has not claimed any Income Tax for NRPP in the MYT Control Period as per the Regulation 36 (Tax on Income) of AERC Regulations 2015.

PETITION FOR


FOR THE FY 2018-19

FOR LAKWA REPLACEMENT POWER PROJECT


To


By




AFFIDAVIT – LRPP



PRAYER FOR LRPP



14 AGGREGATE REVENUE REQUIREMENT FOR THE FY 2016-17 TO 2018-19 OF LAKWA REPLACEMENT POWER PROJECT (LRPP)

14.1 Present Status of LRPP The first four units (15MWX4) of Lakwa Thermal power project have, on average, run for over twenty five years till date. Being of simple cycle, the heat rates of these units are twice as much as that of the modern combined cycle plant. It was decided to replace the first four units with a modern plant with better heat rate and thus the Lakwa Replacement Power Project was conceived. APGCL incorporated LRPP under Assam Power Sector Investment programme (MFF-II) of Asian Development Bank (ADB) for arranging fund (Term Loan). The loan agreement was signed between ADB, GOI and GOA on 20/02/2015. The Equity part of the Project will be funded by GOA. (i) Physical Progress of LRPP Presently the project work of LRPP is going on and the latest status is as given below:

1. Letter of Award was issued to M/s Consortium of Wartsila India Pvt Ltd &Wartsila Finland Oyon 11.12.2015 after competitive bidding.

2. Contract agreement with was signed on 19th January 2016. 3. Zero date started from 9th March 2016. 4. Wartsila India Pvt. Ltd completed the Soil Investigation and Survey for LRPP. 5. The preliminary Engineering / Basic Engineering completed and Detail Engineering of

civil, electrical and mechanical works along with Technical documents/ drawings for review and approval are going on.

6. Piling work started on 27/07/2016 and till date 112 nos of piles completed. 7. The dispatch of 7 nos of Engine Genset from Wartsila factory in Finaland to LRPP site

is planned in the first week of November 2016. The COD of the project is expected by 01/04/2018. (ii) Financial Progress of LRPP The financial progress of LRPP as on 30/09/2016 is 9%. The details of the expenditure are given in the table below:

Table 109: LRPP FinancialProgress Sl No.3

Fund Sources Amount (Rs. in Cr)

Amount Received As on 30/09/16

(Rs. in Cr)

Expenditure As on 30/09/16

(Rs. in Cr) 1 Grant 215.34 20.43 2 GOA Loan 1.53 1.53

23.77 3 Loan 25.00 2.27 4 GOA Equity 28.92 0.00

Total 269.26 24.23



Note: Difference in Foreign Exchange Rate Value (FERV) has not been considered in the amount received and expenditure.

14.2 Capital Expenditure of LRPP in the MYT Control Period The Capital Investment of LRPP has been revised in the MYT Petition than that from the approved Investment in the Business Plan as an additional amount of around Rs. 5.7 Cr will incur in the project for Project Management Consultancy Service and Environment & Social Consultancy Service to be funded wholly by ADB. This amount was earlier not included in the Investment Proposal of LRPP as no information on the same was available with APGCL. Further, it has now been confirmed that the loan amount from ADB will be available to APGCL at 90% : 10% Grant and Loan Ratio. As such the revised Investment Proposal for LRPP is given in the two tables below:

Table 110: LRPP Capital expenditure during control period

Capital expenditure

Up to 31-03-16 FY 2016-17

FY 2017-18

FY 2018-19

Total In RsCrore FERV As per

DPR 1.08 23.56 218.21 15.84 11.65 269.26

Table 111: LRPP financing of capital Expenditure

Year Up to 31-03-16

FY 2016-17

FY 2017-18

FY 2018-19

Total in RsCrore FERV

As per DPR

Grant 0.97 20.24 172.99 11.63 10.49 215.34

Debt 0.11 3.32 19.22 1.29 1.17 25.00 Equity 0.00 0.00 26.00 2.92 0.00 28.92 Note: An amount of Rs. 1.08 Cr has incurred due to Foreign Exchange Rate Variation (FERV)

in addition to the scheduled capital expenditure of LRPP in the FY 2015-16. This amount has not been considered in the financial calculations. However, all such additional variations will be adjusted at the time of final financial closure of the project.

14.3 Proposed Power Generation in the MYT Control Period of LRPP 14.3.1 Technical Parameters considered for Generation Projection of LRPP The Generation Plan of LRPP for the period of FY 2016-17 to 2018-19 has been proposed considering the following parameters:



Table 112: Parameters for LRPP Generation Projection

Parameters Basis

Heat Rate Design Heat Rate of 2079 kcal/kWh on GCV. GCV Avg GCV of 9834 kcal/scm from 2013-14 to 2015-16 of

the gas received at LTPS

Unit/Plant Load Factor Overall PLF of 90% has been considered as per Regulation

Maintenance Schedule As a new station, maintenance shutdown has been considered to be included in the 90% PLF


3.5% for Gas Engine based generating station with electricity driven gas booster compressor as per Regulation.

Gas availability As per Heat Rate and GCV of the gas received at LTPS to be consumed from the 0.79 MMSCMD (Avg. 0.40 MMSCMD of GAIL + Avg. 0.39 MMSCMD of OIL) of avg. gas quantity of LTPS.

14.3.1a Heat Rate of LRPP Design Heat Rate of LRPP is 1873 kcal/kWh on NCV. Design Heat Rate on GCV has been derived from the Heat Rate on NCV by multiplying it with the factor 1.11. As per Regulation Normative Heat Rate for Gas engine based Power Station is 2000 kcal/kWh. However, it is mentioned in the regulation that the Commission may decide to amend and notify the revised norms on case to case basis. As the Design Heat Rate parameter of LRPP itself is 2079 kcal/kWh on GCV, it is our humble submission to the Commission to revise the Normative Heat Rate of LRPP to 2079 kcal/kWh. An extract of the Guaranteed Heat Rate from the Contract Document of LRPP is given below:



14.3.2 Projected Generation for the MYT Control Period of LRPP Considering the technical parameters along with gas availability considered in the Section 14.3.1 the following Revised Generation Plan is proposed for LRPP for the FY 2016-17 to 2018-19:



2016-17 2017-18 2018-19 RemarksA. Gas supply by GAIL (APM)


2.00 10% Royalty /1000 SCM Included Included IncludedTotal 3972.48 3972.48 3972.48

3.00 Basic Price after adjustment with CV 4094.68 4094.68 4094.68

4.00 Marketing Margin (for NCV 10000) /1000 SCM 200.00 200.00 200.005.00 Marketing Margin after adjustment with CV 185.72 185.72 185.72

6.00 Fixed Monthly Service charge(Rs./ 1000 SCM) 20.66 21.28 21.92Yearly escalation 3% on TC as per agreement.

7.00 Sales Tax @ 14.5 % on above 623.65 623.74 623.84

Landed price of gas supply to LRPP by GAIL / 1000 SCM(A) 4904.06 4904.15 4904.24

B. Gas supplied by OIL Duliajan (Non APM)



Total 6356.82 6356.82 6356.825.00 Sales Tax @ 14.5 % on above 921.74 921.74 921.74

Landed price of gas supply to LTPS by OIL (B) 7278.56 7278.56 7278.56C. T.C for Transportation of OIL gas by AGCL


2.00 Service Tax @ 15% on TC 104.11 106.97 109.92Total T.C. (C) 798.19 820.14 842.69

D. Landed price of gas supply to LRPP by OIL (B+C)/ 1000 SCM 8076.74 8098.69 8121.25

Wtd Avg price of LRPP gas 6473.70 6484.61 6495.81

Lakwa Replacement Power Project

Table 113: Projected Generation of LRPP

Parameters FY

2016-17 2017-18 2018-19 LRPP Gross Energy in MU 551.880 Aux. Power Cons. (%) 3.5% Net Generation in MU 532.564 Availability (%) 90% PLF (%) 90% Gross Station Heat Rate on GCV (kcal/ kWh) 2079 Sp. Gas Consumption (SCM/kWh) 0.2114

14.4 Cost of Fuel of LRPP

14.4.1 Projected Gas Price of LRPP

The parameters considered for calculating the landed price of gas for LRPP in the MYT Control period are as follows:

Basic Non-APM Gas price = $ 2.50 / MMBTU (As per the existing price declared by MOPNG effective from 1stOct’16)

Basic APM Gas price = $ 1.50 / MMBTU (60% of Non-APM gas price)

USD exchange rate = Rs.66.74 ($ exchange rate for the month of Sep'16 in Rs as obtained from RBI website)

MMBTU to 1000 SCM conversion factor = 39.68254

With these parameters, the landed gas price has been calculated as given in the table below:

Table 114: Landed Price of Gas for LRPP in the MYT Control Period



Cost of Fuel (LRPP) 2016-17 2017-18 2018-19Gross Generation (MU) 551.88Net Generation (MU) 532.56Gross Heat Rate on GCV basis kcal/kWh 2079Wtd. Average GCV of Gas kcal/scm 9834Gas Quantity MMSCM 117Wtd. Avg. Landed Price of Gas Rs./1000 CUM 6496Cost of Gas in Rs. 757881778.74

Say Rs. In Cr. 75.79Average LRPP Fuel Cost Rs./kWh Sentout 1.42

14.4.2 Projected Fuel Cost of LRPP With the gas prices as per the Table 112 above the Fuel Costs of NRPP have been projected as given in the table below:

Table 115: Cost of Fuel LRPP

14.5 Financial Projections for LRPP for the MYT Control Period 14.5.1 O&M Expenses Proposed for LRPP in the MYT Control Period APGCL has proposed O&M Expenses of LRPP for the MYT Control Period as given in the Table below:

Table 116: O&M Expenses of LRPP for the MYT Control Period

Particulars 2016-17 2017-18 2018-19 O&M Expenses 0.00 0.00 23.20

APGCL has divided the normative amount for O&M Expenses for LRPP in the ratio of 94:6 between Employee Cost and A&G Expenses. The Employee Expenses hence derived for the MYT Control Period then has been increased @ 24% forthe provision of Revision of Pay (ROP) as per the 7th Central Pay Commission assuming implementation of ROP from the FY 2016-17. Other than this extra provision, rest of the calculation for O&M Expenses has been done as per the AERC Regulations 2015. 14.5.2 Depreciation Proposed for LRPP in the MYT Control Period APGCL has proposed Depreciation of LRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 117: Depreciation of LRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Depreciation 0.00 0.00 7.04 Depreciation on 90% of the Assets funded by Grants/subsidies 0.00 0.00 0.00 Net Total 0.00 0.00 7.04



14.5.3 Interest & Finance Charges (IFC) proposed for LRPP for the MYT Control Period APGCL has proposed IFC of LRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 118: IFC of LRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Interest on loans 0.00 0.00 14.50 Sub total 0.00 0.00 14.50 Less: Interest capitalised 0.00 0.00 0.00 Total 0.00 0.00 14.50

14.5.4 Interest on Working Capital (IWC) proposed for LRPP for the MYT Control Period APGCL has proposed IWC of LRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 119: IWC of LRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 One month Fuel Cost 0.00 0.00 6.32 One month approved O&M Cost 0.00 0.00 1.93 Maintenance Spares @ 30% of O&M Expenses 0.00 0.00 6.96 Two month Receivables 0.00 0.00 21.28 Total 0.00 0.00 36.49 ROI 13.50% 13.50% 13.50% IWC 0.00 0.00 4.93

14.5.5 Return on Equity (ROE) proposed for LRPP for the MYT Control Period APGCL has proposed ROE of LRPP for the MYT Control Period as per the AERC Regulations 2015 as given in the Table below:

Table 120: ROE of LRPP for the MYT Control Period


14.5.6 Profit & Loss (PL) Account proposed for LRPP for the MYT Control Period Based on the proposed Generation in the Section 14.3.2 and expenditure proposed in the Sections 14.5.1 to 14.5.5 above, the Profit & Loss Account of LRPP for the MYT Control Period is proposed as given in the Table below:



Table 121: PL Account of LRPP for the MYT Control Period Particulars 2016-17 2017-18 2018-19 Power Generation Energy generated (MU) 0.00 0.00 551.88 Sale of Power (MU) 0.00 0.00 532.56 Auxiliary Consumption, Loss % 0.00% 0.00% 3.50% INCOME Revenue from tariff & Misc. charges 0.00 0.00 127.69

EXPENDITURE Generation Cost 0.00 0.00 75.79 O&M Expenses 0.00 0.00 23.20 Depreciation 0.00 0.00 7.04 Interest & Finance Charges 0.00 0.00 14.50 Interest on working Capital 0.00 0.00 4.93 Other Debits (incl. Prov. for bad debts, int of W/Capital etc.) 0.00 0.00 0.00 Extraordinary Items 0.00 0.00 0.00 Other (Misc.) - net prior period credit 0.00 0.00 0.00 Total 0.00 0.00 125.45 ROE 0.00 0.00 2.24 Other Income 0.00 0.00 0.00 Annual Revenue Requirement 0.00 0.00 127.69 Surplus(+) / Shortfall(-) 0.00 0.00 0.00

14.6 ARR proposed for LRPP for the MYT Control Period Based on the proposed Generation in the Section 14.3.2 and expenditure proposed in the Sections 14.5.1 to 14.5.5 above, the following Aggregate Revenue Requirement (ARR) is proposed for LRPP for the MYT Control Period:

Table 122: ARR of LRPP for the MYT Control Period Rs. in Cr.


Gross Generation (MU) 0.00 0.00 551.88 Net Generation (MU) 0.00 0.00 532.56 Aux. Power Consumption (MU) 0.00% 0.00% 3.50%

Fixed Charges O&M Expenses 0.00 0.00 23.20 Depreciation 0.00 0.00 7.04 Interest & Finance Charges 0.00 0.00 14.50 Interest on working Capital 0.00 0.00 4.93 ROE 0.00 0.00 2.24 Other Income 0.00 0.00 0.00 (A) Total Fixed Cost 0.00 0.00 51.90 (B) Fuel Cost 0.00 0.00 75.79 (C) ARR (A) + (B) 0.00 0.00 127.69 Fixed Cost Paise / Kwh (sent out) 0.00 0.00 97.45 Fuel Cost Paise/ Kwh (sent out) 0.00 0.00 142.31 Tariff Paise/ Kwh (sent out) 0.00 0.00 239.77



Note: 1. All the detailed calculations for Generation and Accounting are in the Excel sheets

given in the enclosed CD.

2. APGCL has not claimed any Income Tax for LRPP in the MYT Control Period as per the Regulation 36 (Tax on Income) of AERC Regulations 2015.



15. Investment in New Projects in the MYT Control Period 15.1 New Projects of APGCL APGCL is proposing investment in the following new non-renewable energy projects (thermal projects and above 25 MW Hydro projects).The COD of these projects are beyond the MYT Control Period.

Table 123: New Projects for Investment in the MYT Control Period

Sl. No. Project Name Capacity (MW)

Energy Source

Expected COD

New Projects 1 Silchar Power Project

(SPP) 30 Gas Beyond MYT

Period 2 Lower Kopili Hydro Electric

Project (LKHEP) 120 Hydro -do-

15.1.1 30 MW Silchar Power Project (SPP): APGCL is still negotiating with ONGCL on the Terms and Conditions of the Gas Supply Agreement for SPP. Main issues are the date of gas off-take and gas pricing. On resolving these issues the GSA will be signed.Hence,APGCL has kept the zero date of SPP same as that in the approved Business Plan, which is September’18. As such, the Investment proposal for SPP in the MYT Control Period will be same as that in the Business Plan Order as given in the following two tables:

Table 124: Silchar PP Capital Expenditure during MYT Control Period

Up to 31-03-16

FY 2016-17

FY 2017-18

FY 2018-19

Beyond MYT

Control Period

Total In RsCrore

Capital expenditure 0.16 0.00 0.00 39.99 131.63 171.78

Table 125: Silchar PP Financing of Capital Expenditure

Year Up to 31-03-2016

FY 2016-17

FY 2017-18

FY 2018-19

Beyond MYT

Control Period

Total in RsCrore

Debt 0.00 0.00 0.00 27.09 93.16 120.25 Equity 0.16 0.00 0.00 12.90 38.47 51.53 15.1.2 120 MW Lower Kopili Hydro Electric Project (LKHEP): The Capital Investment of LKHEP has been revised in the MYT Petition than that from the approved Investment in the Business Plan as an additional amount of around Rs. 85.36 Cr will incur in the project for Project Management Consultancy Service, Environment & Social



Consultancy Service, Communication Consultancy and Supplementary consultancy fot Environment Assessment to be funded wholly by ADB. This amount was earlier not included in the Investment Proposal of LKHEP as no information on the same was available with APGCL. As such the revised Investment Proposal for LKHEP is given in the two tables below:

Table 126: LKHEP Capital Expenditure during MYT Control Period

Up to 31-03-16

FY 2016-17

FY 2017-18

FY 2018-19

Beyond MYT

Control Period

Total In RsCrore

Capital expenditure 8.82 101.50 373.00 393.00 349.70 1226.02

Table 127: LKHEP Financing of Capital Expenditure

Year Up to 31-03-2016

FY 2016-17

FY 2017-18

FY 2018-19

Beyond MYT

Control Period

Total in RsCrore

Grant 5.00 0.00 234.99 247.59 244.30 731.88

Debt 3.82 1.50 26.11 27.51 25.65 84.59

Equity 0.00 100.00 111.90 117.90 79.75 409.55 Present Status of the Project as on 30/09/2016

1. The Detail Project Report at an estimated cost of Rs. 1115.91 Cr was Techno-Economically cleared by CEA on 30/09/15. Final Techno-Economic clearance was received from CEA on 24/05/16 after compliance of all the suggestions by various directorates.

2. Environment Impact Assessment (EIA) studies:

i. Entrusted to Water and Power Consultancy Services (WAPCOS)

3. Draft Environmental Impact Assessment (EIA) Report is completed. Public Hearing date has not been declared yet.

4. Forest Clearance: Revised application will be uploaded in the website of MOEF after receipt of certificate from GOA on Non availability of non forest land for Compensatory Afforestation.

5. Land Acquisition process initiated. 6. Zero date of the project is now expected by October’17



15.2 Investment for Consultancy Services and ERP Implementation In addition to the Capacity addition projects, Accounts and Human Resources related Consultancy Services Projects funded by ADB are also going on in APGCL. Further, as part of the ERP implementation with the funding of ADB, ERP Consultancy Services project is also going on. Implementation of the ERP Project is expected to be started by the end of the FY 2016-17. These projects were not included in the Business Plan of APGCL as no information was available at the time of the preparation of the Business Plan. Following are the ongoing Consultancy Services and upcoming projects newly included in the MYT Petition:

1. Consultancy services for Accounting Manual, Internal Audit Manual, Budget and Costing Manual, Inventory Management Manual for APGCL,

2. Consultancy Service for Capacity Building & Human Resource Development and 3. ERP - Consultancy Services & Implementation

As these projects are funded by ADB, investment has been considered at 90%:10% Grant-debt ratio. The proposed investment for these projects in the MYT Control period is given in the table below:

Table 128: Investment for Consultancy and ERP during MYT Control Period

(Rs. in CR) Ongoing Consulting Services Projects for Capacity Development & Upcoming Project on ERP Implementation

(ADB Funded Projects)

Sl. No. Project Name

Up to 31/03/2016 FY 2016-17 FY 2017-18 FY 2018-19 Total Grand

Total Grant Loan Grant Loan Grant Loan Grant Loan Grant Loan

1

Consultancy services for Accounting Manual, Internal Audit Manual, Budget and Costing Manual, Inventory Management Manual for APGCL

0.30 0.03 0.34 0.04

0.64 0.07 0.71

2 Consultancy Service for Capacity Building & Human Resource Development

0.22 0.02 5.33 0.59 1.17 0.13 6.72 0.74 7.46

3 ERP- Consultancy &Implementation

Consultancy Service for ERP based IT solutions for APGCL

0.75 0.08 0.88 0.10

1.63 0.18 1.81

ERP Implementation and Infrastructure Development for APGCL

0.00 0.00 1.50 0.17 5.99 0.67 1.50 0.17 8.98 1.00 9.98

Total for ERP 0.75 0.08 1.50 0.17 6.87 0.76 1.50 0.17 10.61 1.18 11.79

Petition for Aggregate Revenue Requirement for 2016-17, 2017-18 & 2018-19 and Tariff for 2016-17 & 2017-18


16. Directives of AERC 16.1 Status of Compliance ofDirectives issued in the Order dated 24/07/2015 The status of Compliance of Directives of AERC issued in the Order dated 24/07/2015 as on 30/09/2016 is given below:

Table 129: Compliance of Directives of AERC issued in the Order dated 24/07/2015 Sl. No: AERC’s Directive Comments of the Commission in the Tariff

Order for 2015-16 Status as on 30th September 2016

Old Directives

1 Directive1: Auxiliary Consumption

The efforts should continue and the Auxiliary Consumption levels of both the Stations need to be brought down to the levels specified in the Regulations.

The Commission has taken note of APGCL’s submissions. The Commission acknowledges the efforts of APGCL in reducing the Auxiliary Energy Consumption. However, the Commission is of the view that the targets specified under PAT Scheme are altogether for a different purpose and APGCL should strive to reduce the Auxiliary Consumption of NTPS and LTPS to the normative levels specified in the Regulations.

APGCL is putting all out efforts to minimize the APC of its thermal power stations. Auxiliary consumption of LTPS in the 2nd quarter of 2016-17 was 7.4%, which is comparable to the APC of 7.5% petitioned by APGCL to the AERC for consideration. Auxiliary Consumption of NTPS was in the higher end at 7.7% due to partial loading of its units for erratic gas supply position. Energy Audit of both NTPS and LTPs under PAT mechanism is complete for the 1st PAT cycle and Energy Audit Report prepared by BEE accredited Energy Auditor M/s Enfragy Solutions India Pvt. Ltd. Has been submitted. Action taken Report on the Energy Audit Reports is enclosed at Annex-XIV.

2 Directive2: Employee’s Provident Fund

The Commission again directs APGCL to maintain separate accounts for the amounts recovered from the employees towards provident fund and its utilization duly audited by statutory auditors. In this matter, APGCL should expedite the formalities of forming the Trust and the same should be completed as early as possible.

The Commission again directs APGCL to complete the formalities of forming the Trust as early as possible.

Noted. The matter is continuously being pursued with Govt. of Assam by APGCL. Another reminder letter to the Jt. Secretary to the GOA, Power (Elect.) Department was sent by APGCL vide No. MD/APGCL/ACT/GPF/TRIUST/11-12/335/12 dated 01/09/2016. Action from GOA is awaited.



Sl. No: AERC’s Directive Comments of the Commission in the Tariff Order for 2015-16

Status as on 30th September 2016

3 Directive-3: Procurement of Gas

APGCL should make all out efforts to procure committed quantity of gas and to get additional allotments, to overcome the generation problem. The efforts made and the outcome should be periodically reported to the Commission.

APGCL should continue to pursue with the gas suppliers to obtain the required quantum of gas on a regular basis and inform the Commission about any difficulties in getting gas supply from time to time.

A statement of drawing of gas by NTPS &LTPS from Jul’16 to Sep’16 is given below:

Month Received/ Allotted Qty (MMSCM) NTPS (OIL) LTPS (OIL) LTPS (GAIL)

Jul’16 14.36/20.46 (70%)

13.03/ 15.50 (84%)

12.29/ 12.40 (99%)

Aug’16 10.96/ 20.46 (54%)

12.99/ 15.50 (84%)

12.39/ 12.40 (100%)

Sep’16 11.90/ 19.80 (60%)

10.80/ 15.00 (72%)

12.39/ 12.00 (103%)

During the 2nd quarter of 2016-17, natural gas supply to NTPS was very inconsistent. After continuous persuasion, the gas supply position by OIL has improved marginally; however, gas supply to NTPS is still not as per the contracted quantity consistently. APGCL is pressing hard OIL regularly to supply gas to NTPS as per the GSA. Regarding gas supply to LTPS by OIL, after continuous efforts of APGCL, it improved to 0.42 MMSCMD on average in the months of July-August from the usual average supply of 0.31-0.35 MMSCMD of gas by OIL to LTPS in this period. However, the average gas supply dropped again in the month of September. At present, gas drawal by LTPS is also restricted due to the shutdown of its Unit #3 for preventive maintenance. Regarding the 0.15 MMSCMD of gas allotted by ONGCL from its Bhubandar and Banskandi gas fields to APGCL for the proposed 30 MW (nominal) Silchar Power Project, negotiation is still going on with ONGCL on the Terms & Conditions of the Draft Gas Supply Agreement.

4 Directive-4: Performance of Plants and Expediting Renovation & Modernization works





APGCL should expedite the on-going Renovation & Modernisation schemes and ensure timely completion of the projects, to improve the performance of the plants. Also, the final DPR with cost benefit analysis indicating life extension period shall be submitted for approval of the Commission as early as possible.

The in-principle approval for R&M works has been accorded for FY 2014-15 and FY 2015-16 vide letter dated February 14' 2015 and March 18' 2015 respectively. APGCL is directed to expedite the completion of these R&M works and submit compliance report to the Commission on quarterly basis.

Progress Report on implementation of Ongoing R&M projects has been submitted for the 1st quarter of 2016-17 to AERC vide No. APGCL/CGM (G)/AERC/2011-12/115/Pt/40 dated 29/07/16. Progress Report for the 2nd quarter of 2016-17 will be submitted shortly.

5 Directive-5: Monitoring of Progress of New Power Projects and Need for augmentation of own generating capacity

APGCL is directed to submit quarterly progress report regular basis.

The compliance of APGCL is noted in this regard. However, APGCL is directed to expedite the completion of new projects as per schedule and continue to submit quarterly progress report on regular basis, till completion of the projects.

Progress Report on implementation of New Projects (Thermal) was submitted for the 1st quarter of 2016-17 to AERC vide No. APGCL/CGM (G)/AERC/2011-12/115/Pt/40 dated 29/07/16. Progress Report on implementation of New Projects (Hydro) for the 3rdand 4th quarters of 2015-16 was submitted vide No. APGCL/CGM(H)/W/11-12/390/90 dated 05/05/16. Progress Report for the 2nd quarter of 2016-17 for new thermal and 1st and 2nd quarter of new hydro projects will be submitted shortly.

6. Directive-6: Capital Cost of Small Hydro Projects





The Commission directs APGCL to submit the Petition with detailed break-up of the Capital Cost for approval of the Commission.

The compliance of APGCL is noted in this regard. Commission has already accorded in principle approval for Capital Cost of Myntriang SHEP (9 MW). In principle approval for Capital Cost of Lungnit SHEP (6MW) and enhanced capacity of Myntriang SHEP (4.5 MW) will be issued shortly.

Noted and complied with for 13.5 MW MSHEP. Capital cost of 6 MW Lungnit SHEP is not finalized yet as the approval of price bid from the new bidder for completion of the balance project work has been deferred by APGCL board due to high value of the bid. The issue of high bid price was discussed with the L-I bidder for negotiation. The bidder lowered bid amount from Rs. 93.07 Cr to 90.20 Cr. The matter was placed again in the APGCL Board Meeting held on 30/06/2016. The board has directed for finalization of funding for the project along with application to PIB for approval.

The Board also directed to take legal opinion on revival of the project. Accordingly opinion was sought and Sr. Standing Counsel, APGCL opined that there is no bar for taking steps for revival of the project.

7. Directive-9: Transfer of transformer feeders

The Commission had directed APGCL to expedite the transfer of transformer feeders within 3 months from the date of issue of FY 2014-15 tariff order (dated November 21' 2014) and submit the status of the same to the Commission.

Noted. The Commission directs APGCL to expedite the process of handing over the transformer feeders to APDCL and submit the compliance report for LTPS immediately.

The matter has been complied with by APGCL. Compliance by APDCL will be complete after completion of the 33 KV distribution substation being constructed by APDCL at NTPS project site.



16.2 Status of Compliance of Directives issued in the Order dated 01/09/2016

Table 130: Compliance of Directives of AERC issued in the Order dated 01/09/2016 Sl No. AERC’s Directive Status as on 30th September 2016

1 The Commission, in exercise of its powers vested in it under Sections 61 and 62 of the Act and all other powers enabling it in this behalf and taking into consideration the submissions made by the Petitioner, approves the Business Plan for APGCL for the Control Period from FY 2016-17 to FY 2018-19 for the purpose of submission of MYT Petition. The final approval shall be accorded at the time of issuance of MYT Order.

Noted

2 The Commission directs APGCL to incorporate the action plan on such energy audit reports in the MYT Petition.

Noted. The Action Taken Report on the Energy Audit Reports is enclosed at Annex-XIV

3 The Commission directs APGCL to submit the revised Capital Expenditure in its MYT Petition, if considered necessary, based on updated status and financing tied-up.

Noted. Complied with accordingly in the Sections 1.4.2, 1.5.2, 1.6.2, 1.7.2, 1.8.2 and Section 2 of the MYT Petition.

4 The Commission directs APGCL to submit the Station Heat Rate for NRPP and LRPP computed as per the provisions of MYT Regulations, 2015 along with necessary details in the MYT Petition.

Noted. Complied with accordingly in the Sections 1.7.3.1a and 1.8.3.1a of the MYT Petition.

5 The Commission directs APGCL to take all the necessary efforts for arrangement of additional requirement of gas. The Commission directs APGCL to submit availability vis-à-vis arrangement of additional requirement of gas for existing and new Thermal generating Stations. The efforts taken by APGCL for ensuring adequate availability of gas, in the MYT Petition should be clearly spelled out.

Noted. Complied with accordingly in the Section 1.3 of the MYT Petition.

6 The Commission directs APGCL to file Multi Year Tariff Petition for the Control Period from FY 2016-17 to FY 2018-19 within two (2) months from the date of issue of this Order.

Noted and complied with.

7 The Multi Year Tariff Petition shall be filed as per the provisions of the MYT Regulations, 2015 and shall include the forecast of Aggregate Revenue Requirement for FY 2016-17 to FY 2018-19, true-up for FY 2014-15 and FY 2015-16, actual of FY 2016-17 (6 months), and projected tariff for FY 2016-17 and FY 2017-18.

Noted. MYT Petition has been Prepared as per the AERC MYT Regulation, 2015.

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