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CHHATTISGARH STATE ELECTRICITY REGULATORY COMMISSION

RAIPUR

Petition No. 21 of 2013(T)

Petition No. 22 of 2013(T)

Petition No. 03 of 2013(T)

Present: Manoj Dey, Chairman

Vinod Shrivastava, Member

In the matter of

(1) Approval of Final True up for FY 2006-07 to December, 2008(CSEB Period), FY 2008-09 (January, 2009 to March, 2009) & FY

2009-10, FY 2010-11 and Provisional True up for FY 2011-12 and

Multi-Year Aggregate Revenue Requirement for FY 2013-14 to

FY 2015-16 for Chhattisgarh State Power Generation Co. Ltd.

(2) Approval of Final True up from FY 2006-07 till FY 2010-11 &Provisional True up for FY 2011-12 & Annual Performance Review for

FY 2012-13 & Approval of ARR for MYT Control Period FY 2013-16

for Chhattisgarh State Power Transmission Co. Ltd.

(3) Approval of CSEBs revised true up for FY 2006-07, and final true upFY 2007-08 and FY 2008-09 (Apr to Dec) & CSPDCL period final

True-UP for FY 2008-09 (Jan-Mar 2009), 2009-10, 2010-11 &

Annual Revenue Requirement FOR Control Period from 2013-14 to

2015-16 & Retail Tariff request for FY13-14 for Chhattisgarh State

Power Distribution Co. Ltd.

(4) Implementation of the Hon'ble Appellate Tribunal for Electricityjudgment on previous Tariff Orders related to erstwhile CSEB /

Chhattisgarh State Power Companies.

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ORDER

(Passed on 12.07.2013)

1. As per provisions in the Tariff Policy and the Electricity Act, 2003(hereinafter referred as 'the Act') the Commission framed the Multi

Year Tariff Regulations i.e., the CSERC (Terms and Conditions for

determination of tariff according to Multi-Year Tariff principles and

Methodology and Procedure for determination of Expected revenue

from Tariff and Charges) Regulations, 2012 (hereinafter referred as

'MYT Regulations, 2012').

2. According to provisions of the Regulation 5.2 of the MYTRegulations, 2012, the companies were required to file petition for

approval of Aggregate Revenue Requirement (ARR) for the Control

Period from FY 2013-14 to FY 2015-16 and determination of tariff

for FY 2013-14, latest by 30th November 2012.

3. On requests submitted by the companies from time to time, theCommission extended the date of filing the petition repeatedly and

finally up to 15th January 2013. But the Companies failed to file the

said petition within extended time. Considering the failure of

companies in filing of tariff petition even after the extended date

and in pursuance with the direction of the Hon'ble Tribunal in OP No.

01 of 2011 and powers conferred under Section 62 and 64 of the

Act, MYT Regulations, 2012 and CSERC (Conduct of Business)

Regulation 2009, the Commission initiated the suo motu

proceedings to determine the ARR of Companies for Control Period

from FY 2013-14 to FY 2015-16 and tariff for FY 2013-14 and

registered suo motu petitions No. 04 of 2013 (T) on 23.01.2013 for

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CSPGCL, No. 05 of 2013 (T) dated 23.01.2013 for CSPTCL and No.

03 of 2013(T) on 23.01.2013 for CSPDCL.

4. Subsequently, CSPGCL and CSPTCL filed petitions on 08.02.2013and requested for discontinuance of the suo motu proceedings,

which were registered at No. 21 of 2013(T) and 22 of 2013(T)

respectively. The Commission accepted the request and dropped the

suo motu proceedings against CSPGCL and CSPTCL. CSPDCL also

filed petition on 06.02.2013, however, as the same was found short

of some of the requirements specified in the Regulations, the

Commission decided to merge the petition filed by CSPDCL with the

suo motu petition No. 03 of 2013.

5. The petitions were made available on the website of the Commissionas well as to the petitioners. A public notice along with the gist was

also published in the news papers. Objections/suggestions were

invited as per the procedure laid down in the Regulations. Further,

the Commission conducted a hearing on the Petitions on

16.05.2013. Taking into account all the views / suggestions /

objections and after performing due diligence on each of the issue,

the Commission has finalised its views.

6. In the tariff order 2011-12 passed on 31.03.2011, the Commissionhad decided the final true up of FY 2005-06 and FY 2006-07 and

provisional true up of ARR for the FY 2007-08 and FY 2008-09 (post

facto ARR approval) for CSEB up to 31.12.2008 and for the State

Power Companies for the period 01.01.2009 to 31.03.2009.

Provisional true up for the power companies was also carried out for

FY 2009-10. Further, vide the tariff order for FY 2012-13 passed on

28.04.2012 provisional true up of FY 2010-11 and APR for FY 2011-

12 was undertaken.

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7. The companies have, in this petition, prayed for final true-up of ARRof CSEB for FY 2007-08 and 2008-09 (till December 2008) for which

statutory audit has been completed by the Accountant General

(Audit) (AG audit, for short). The companies have also prayed for

final true-up of ARR for FY 2008-09 (January-Mar 2009), final true

up for FY 2009-10 and FY 2010-11 and provisional true up for FY

2011-12.

For this purpose the companies have jointly submitted the

true-up data including accounts pertaining to the period of CSEB i.e.

up to 31st December, 2008 and have submitted company-wise data

for the period from 1st January, 2009.

The Commission in this tariff order has also complied the

directions given by the Honble Tribunal in appeal No. 89 of 2011

and RP No. 10 of 2012 filed by CSPDCL against the Tariff Order for

FY 2011-12. The final true up for FY 2005-06 and FY 2006-07 have

also been revisited for the said purpose. This order is also subject to

the outcome of appeal No. 173 of 2012 filed by CSPDCL against the

Tariff Order for FY 2012-13. Further, the allocation of surplus

revenue available for the CSEB period, in accordance to Honble

Tribunal judgment dated 14.08.2012, has been revisited by this

Commission vide suo motu P. No. 47 of 2012 (M). The prior period

surplus has been redistributed accordingly.

8. For the purpose of revised true-up for FY 2005-06 and 2006-07, theCommission has followed the Honble Tribunal Judgment. For True

up from FY 2007-08 to FY 2009-10, the Commission has followed its

CSERC (Terms and Conditions for Determination of Tariff)

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

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True up of FY 2011-12, the CSERC (Terms and Conditions of

determination of tariff according to Multi-Year Tariff principles)

Regulations, 2010 have been applied and the MYT Regulations, 2012

have been applied for determination of ARR for FY 2013-14 to FY

2015-16 and tariff for FY 2013-14. These Regulations embody the

principles for determination of tariff, enunciated in the Act. In

passing this order, the Commission has also been guided by the

National Electricity Policy (NEP), 2005 and Tariff Policy, as mandated

under the provisions of the Act. The Commission has taken care to

ensure that the revenue requirements of the companies are based,

on reasonable and prudent expenditure required to serve the

consumers efficiently and effectively.

9. As per the petitioners submission, truing up for the CSEB periodresults in a surplus of Rs 1212 Crore. Following the ratio decidendi

of the Honble Tribunal judgment in appeal No. OP 01 of 2011, the

Commission has considered carrying cost for the revenue gap. At

the same time, following the corollary, gains from revenue surplus

held by the CSEB / successor companies have also been accounted.

The Commission, after prudence check, and accounting for gains

from revenue surplus, has approved a surplus of Rs. 1880 Crore for

the period till 31.12.2008. In accordance to the Commissions order

dt 11.07.2013 in suo motu P. No. 47 of 2012, the surplus has been

allocated to the CSPGCL, CSPTCL and CSPDCL in the ratio 52.57%,

15.69% and 31.74% respectively. The surplus so allocated to the

three companies along with their cumulative surplus / deficit for the

period FY 2008-09 (January to March), FY 2009-10, FY 2010-11 and

FY 2011-12 have been adjusted to meet the revenue gap of CSPDCL

at the end of FY 2012-13.

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10. For the MYT period FY 2013-14 to FY 2015-16, CSPGCL hassubmitted tariff proposal for its three thermal power stations namely

KTPS Korba East, HTPS Korba West and DSPM TPS, Korba. It has

also submitted proposal for hydro power stations HBPS Bango. The

Annual Fixed Cost (AFC) and Energy Charge rate, as claimed by the

petitioner and as approved by the Commission, for the aforesaid

stations is decided as under :-

Thermal Power Stations

Particulars FY 2013-14

HTPS KTPS DSPM

Annual Fixed Cost Rs. Crore 414.34 294.21 478.46

Energy Charge Rate for Specific Fuel Oil

consumption

Rs./kWh 0.055 0.111 0.055

Energy Charge Rate for Primary Fuel Rs./kWh 0.879 1.043 0.897

Energy Charge Rate (ex-bus power plant basis) Rs./kWh 0.934 1.154 0.952

Hydro Power Station

Hasdeo Bango FY 2013-14

Approved ARR Rs. Crore 24.09

Approved Net Generation MU 271.26

Approved Tariff for Hasdeo Bango Rs./kWh 0.888

11. CSPTCL has filed ARR for FY 2013-14 of Rs. 803 Crore. TheCommission after prudence check and due scrutiny has approved

the same at Rs. 600 Crore. Transmission charge for FY 13-14 shall

be as under :-

Particulars FY 2013-14

ARR for CSPTCL Rs. Crore 600.08

Monthly Transmission Charges for Medium and Long-term Open

Access Consumers

Rs. Crore/Month 50.01

Short-Term Open Access Charges Rs./kWh 0.233

Note - Energy losses for transmission: Transmission losses at the rate

of 4.40% for the energy scheduled for transmission at the point or points

of injection shall be recoverable from open access customers.

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12. The Commission has also taken cognizance of Honble Tribunaldecision dated 01.10.2012 in appeal No 31 of 2012 in the case of

PTC India Ltd Vs GERC & Gujrat Urja Vikas Nigam Ltd., wherein it

has been held that as per provisions of the Act, Trading Company

cannot be carved out of unbundling of SEB. The Hon'ble ATE further

held that as per Section 5.3.4 of the National Electricity Policy, the

Power Purchase Agreements with the generating companies would

need to be suitably assigned to the distribution companies and there

is no provision for a Trading Company to be assigned with the PPAs

and to be responsible for procuring power for the distribution

licensees. Transfer Scheme Rules, 2010 notified on 31.03.2010 has

assigned the concluded short-term PPA of CSPDCL to CSPTrCL and

CSPDCL for the period 01.01.2009 to 31.03.2010, with retrospective

effect from 01.01.2009. The preamble of the Act mandates State

Commission for protection of interest of consumer. Taking into

cognizance, the spirit of the Act, NEP and Judgment by the Hon'ble

Tribunal, the Commission has considered the total short-term power

purchases expenses of concluded contracts (short-term PPAs) for

period 01.01.2009 to 31.03.2010 in ARR of CSPDCL and has also

appropriately assigned the gains from trading of surplus power to

CSPDCL.

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

14. CSPDCL in its petition has filed cumulative deficit of Rs 2495 Croreupto FY 2012-13. However, the Commission after prudence check

and scrutiny has arrived at a conclusion that after adjusting the

cumulative surplus of CSPGCL and CSPTCL, The gains from trading

of power and the grant from the State Govt., no revenue gap

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remains. Accordingly, except for some corrections in methodology to

be applied in some specific cases, the Commission has decided to

continue with the prevailing tariff schedule. However, for ready

reference the tariff schedule to be applicable in reference to this

order is appended herewith as Annexure-I.

15. The Commission directs the Companies to take appropriate steps toimplement the tariff Order. A public notice of minimum 7 days be

given in accordance with the CSERC (Details to be Furnished by the

Licensees or Generating Company for Determination of Tariff and

Manner of Making Application) Regulations, 2004 and the MYT

Regulations, 2012 before implementation of this Tariff Order.

16. The detailed Order in reference to this joint order shall be issuedshortly.

Sd/-

(Vinod Shrivastava)

MEMBER

Sd/-

(Manoj Dey)

CHAIRMAN

True Copy

(P.N. Singh)

Secretary