CENTRAL ELECTRICITY REGULATORY COMMISSION 6TH & 7TH FLOOR, SCOPE COMPLEX, 7, LODHI ROAD, NEW DELHI 11-

003 PHONE: 24364960. Fax: 24360010 November 21, 2007 Press Release More operational flexibility to hydro generating stations

Through a draft amendment to the existing tariff regulations, Central Electricity Regulatory Commission (CERC) proposes to provide operational flexibility to hydro generating stations falling under its jurisdiction to enable them to respond to changes in the load generation balance in the grid which result in frequency excursions. Under the new dispensations proposed by the Commission, hydro generating stations would be free to deviate from the given schedule, as long as they do not indulge in gaming, and do not cause a transmission constraint. The net actual energy supplied by a hydro generating station over a day may differ from the original schedule for that day. A compensation for this variation shall be made by the concerned load dispatch centre in the schedule of the fourth day, after getting necessary data from the generating station.

The generation schedule of a hydro-generating station is determined on the basis of day-ahead forecast for water flows, which always has an element of uncertainty. In case of variation in water flow with respect to the forecast, the generator has to apply for revision of schedule. Once the new methodology of cyclic schedule adjustment is implemented, it would not be necessary for hydro generators to seek revision in their schedules, unless there is a contingency. The Commission has asked the Regional Load Dispatch Centres (RLDCs) to develop and test the necessary software and have it installed at all hydro generating stations covered by Availability Based Tariff (ABT).

The last date for receiving comments and suggestions from public is 30.11.2007. The proposal would be finalized after considering the views of the stakeholders.

Ravinder Chief (Engg). Mobile: 9868502946