TRANSMISSION TARIFFS

For the period FY2009-10 to FY2013-14

ORDER
20th March 2009

ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
Singareni Bhavan, Red Hills, Lakdi-Ka-Pool, Hyderabad – 500 004

CONTENTS Chapter I Description Filing and Order Procedures 1 Page No.

II

MYT Filings for Control Period

4

III

Important Issues Raised by General Public and APTRANSCO Responses

8

IV

Commission Analysis on Select Issues

21

V

Commission Analysis and Decisions on Filings

25

A

ANNEXURES ANNEXURE Annexure – A Description Transmission Tariff Schedule, 2009-10 to 2013-14 Page No. 35

Annexure – B

List of Directives

36

Annexure – C

List of Objectors Generation Capacity for Control Period 2009-10 to 2013-14,MW Regulated Rate Base and Return on Capital Employed, Rs. Cr Transmission Charge/Rate as Filed by APTRANSCO, Rs. Cr Transmission Charge/Rate, Commission’s Calculations, Rs.Cr

38

Annexure – D

41

Annexure – E

44

Annexure – F

45

Annexure – G

46

B

TABLES
Table No. Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Description Filings-Net Aggregate Revenue Requirement, FY200910 to 20013-14 Filings-Generation Capacities,FY2009-10 to 20013-14 Filings: Transmission Tariff Details Filings: Transmission Loss, Band and System Availability R&M Stores Carrying Cost Filed Investments, 2009-10 to 2013-14 Approved Investments, 2009-10 to 2013-14 Regulated Rate Base and Return on Capital Employed O&M Costs for the Control Period Asset Base and Depreciation for the Control Period Net Aggregate Revenue Requirement APERC-Generation Capacities,FY2009-10 to 20013-14 Transmission Tariff Schedule, 2009-10 to 2013-14. APERC Approved Cost, and Annual and Cumulative Recovery Page No. 4 5 6 7 23 25 26 27 29 30 30 31 32 33

C

ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION HYDERABAD
Date: 20-03-2009 Present A. Raghotham Rao, Chairman R. Radha Kishen, Member C.R. Sekhar Reddy, Member

O.P No. 21 of 2008
Transmission Corporation of Andhra Pradesh Limited……. Applicant

This came up for public hearing before several consumers, generators, the representatives of various consumer organizations, political parties and other stakeholders on 11.02.2009 (Wednesday) at Hyderabad and having stood over for consideration till this day, the Commission passed the following

ORDER
Part I: Filing and Order Procedures
General 1. The Transmission Corporation of Andhra Pradesh Ltd. (APTRANSCO) or Applicant is the holder of the Transmission License (License No.1/2000) issued by Andhra Pradesh Electricity Regulatory Commission (APERC) or Commission in the State of Andhra Pradesh under relevant provisions of the Electricity Act, 2003(Act). Further, as per section 39(1) of the Act, APTRANSCO is also the State Transmission Utility (STU). The Commission, to determine the tariff under section 62 for transmission of electricity, has notified on 30-11-2005, the APERC (Terms and Conditions for determination of Tariff for Transmission of Electricity) Regulation (Regulation 5 of 2005), interalia specifying Multi Year Tariff (MYT) Regulatory Framework. 2. In accordance with Regulation 5 of 2005, APTRANSCO filed with the Commission on 29-11-2008 inter alia Aggregate Revenue Requirement (ARR), Tariff Proposals and Transmission Loss percent for each year of the MYT Control Period of five years from 2009-10 to 2013-14 (Control Period). Thus, the Commission has to determine the Transmission Tariff for each year of the Control Period, based on the

application of the applicant, and as per the Commission’s practice after

1

Objections/suggestions received 4. General public were also informed of the date of public hearing through a press release.5 of 2005.. on the Tariff proposals of the applicant by the due date i. 2 . The objectors who had expressed their desire to be heard in person were also informed in writing about the venue and the date on which they would be heard. on 24-12-2008 in two daily newspapers in English and two in Telugu having largest circulation in the State informing the general public that it (the applicant) had made its filings for the Control Period with the APERC as per Regulation No. Hyderabad and Warangal for inspection/perusal/purchase by interested persons and that objections/suggestions could be filed on these proposals with the Secretary. on 28-01-2009. APTRANSCO. 67 persons have sent their objections/suggestions to the Secretary. APERC. as directed by the Commission. During the hearing: • The applicant made an opening presentation at the commencement of the hearing on its filings. APERC. on the application. Hyderabad. 5. Reforms & IT. Vidyut Soudha. Cuddapah.considering the objections/suggestions received/heard from general public and other stakeholders. Hearing 6. Notice calling for objections / suggestions 3. Vijayawada. by 27-01-2009. and that copies of the filings (together with supporting materials) were available with Chief Engineer/ RAC. The objectors who had expressed their desire to be heard in person appeared and represented before the Commission during the public hearing on 11-02-2009 held at Hyderabad.e. The applicant was directed to serve a public notice through publication. 27-01-2009. Following the public notice. The names of the objectors are given in Annexure-C. Applicant had been informed of the date and venue of the public hearing on 28-012009. The Commission directed the applicant vide its letter dated 21-012009 to send replies on all the objections/suggestions by 02-02-2009 and also provide a copy of the same to the Objector by the same date duly posting the copies of replies on the applicant’s official website. and with the Chief Engineer/TL&SS at Visakhapatnam.

01. Members of the State Advisory Committee (SAC) were provided with the copies of ARR/Tariff filings made by APTRANSCO and certain important issues of the flings were discussed in the SAC meeting held on 19. the applicant gave its responses on the issues raised by the objectors during the hearing. 3 . Meeting of the State Advisory Committee 7. and.• • then. the Commission heard all the objectors desiring to be heard in person.2009.

APTRANSCO filed Rs. In the filings APTRANSCO requested the Commission to pass such Order as the Commission deems fit and proper in the facts and circumstances of the case.26 25. as the gross ARR for the entire Control Period while giving the details for each year of the Control Period.9915. In addition to Transmission Charge. APTRANSCO filed the losses applicable for the users of the transmission system with loss range (upper and lower bands) for each year of the Control Period.32 Net Aggregate Revenue Requirement 5(2-3-4) 1044. the income from sources other than tariff.36 2167.Cr.07 76. Table 1:Filings-Net Aggregate Revenue Requirement.90 Cr. 4 .26 126.51 72. for transmission activity. for the entire Control Period.66 9915./kW/month) and b) Transmission Loss percent in kind for each year of the Control Period.22 68.25 75. The Transmission Charge is to recover the estimated transmission cost for each year of the Control Period.61 378.54 10420.40 1639. The filing contained the details of the generation capacity on which the transmission tariff is proposed to be levied in each year of the Control Period.06 2474.66 Non-Tariff Income 4 25.26 25. FY2009-10 to 20013-14 (Rs.26 25.28 2792.77 2691. The details of ARR given in Table-1. APTRANSCO filed the Transmission Tariff application consisting of a) Transmission Charge (Rs.91 cr.10420.26 25. The required investment is worked out based on a resource plan to meet the forecasted transmission capacity requirement for each year of the Control Period. APTRANSCO placed the net ARR at Rs.Part II: MYT Filings for Control Period General 8. Revenue Requirement 9. The ARR amount for a year refers to the amount that is required for APTRANSCO to meet sum of estimated costs and allowed return on capital employed as per Regulation 5 of 2005. After deducting the Non-Tariff Income (NTI).84 2260.90 Less Expenses Capitalized 3 86.91 Figures are rounded.83 2572.06 1538.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Gross Revenue Requirement 2 1155.

The details of the generation capacity in terms of Megawatts filed by APTRANSCO are given in Table-2. APTRANSCO estimated the generation capacity (in terms of MW) based on contracted generation capacities by four distribution companies and other generators (such as open access and captive users) who are likely to use the transmission system to transport the electricity to their chosen destinations. b) Since the energy drawn by the users from the transmission system is always less than energy injected into system to the extent of transmission losses. a) To recover the estimated net ARR. The generation capacity arrived in this manner will be the base on which the proposed Transmission Tariff is to be levied. Open Access 3 0 0 0 0 0 Other Generators. Third Parties 4 462 462 462 462 462 Total Capacity in the State 5(2+3+4) 13973 15162 17631 18203 20222 Figures are rounded. Table 2:Filings-Generation Capacities. APTRANSCO estimated the transmission loss percentage and filed the same for each year of the Control Period. FY2009-10 to 20013-14 (MW) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Distribution Companies 2 13511 14700 17169 17741 19760 Other Generators. The Transmission Tariff Schedule consist of a) Transmission Charge in Rs/MW/Month and b) Transmission Loss percent. APTRANSCO proposed to levy the monthly Transmission Charge/Rate on Generation Capacities estimated (excluding auxiliaries) for each year of the Control Period. APTRANSCO computed the Transmission Charge by dividing the net ARR with the estimated generation capacity (excluding auxiliaries) for each year of the control period.Generation Capacity 10. APTRANSCO is accountable for energy to the users to the extent of input energy net of transmission losses. Transmission Tariff 11. 5 .

as the loss band.36 2167.06% 4. The details of the Transmission Tariff and Transmission Loss Percentage as filed by APTRANSCO are given in Table-3.43 113.3 variation condition.16% 4.e.27 84. 6 . The loss band is further subject to the investment levels as proposed by APTRANSCO. in (Avg.29 110. APTRANSCO as required in Regulation 5 of 2005.10% 4.02% Figures are rounded. The details are given in Table-4. It contemplated the average loss reduction from 4.02 percent by 20013-14.92 4. Table 3: Filings: Transmission Tariff Details Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Net Revenue Requirement. Rs.55 102. APTRANSCO further stated the performance parameter of 99. The average loss reduction target as proposed by APTRANSCO is subject to ± 0. i. • • • 14. MW 3 13973 15162 17631 18203 20222 Transmission Tariff Transmission Transmission Loss.06 2474.12.13% 4. the end year of the Control Period. filed the transmission loss reduction trajectory and also transmission system availability for each year of the Control Period.66 Generation Capacity. Cr.16 percent in 2009-10 to 4. MYT Loss Reduction Target and System Availability 13.77 2691. 2 1044.40 percent as System Availability for all the years of the control period. Charge loss) Percent Rs/kW/Month 4(2/3) 5 62. There may be variations in loss reduction path and band proposed by APTRANSCO if there is change in investments.06 1538.

APTRANSCO filing for Transmission Tariff is broadly in conformity with the Regulation 5 of 2005.06% 4. Upper Band 3 4.43% 4. Based on these workings.83% 3. Conclusion 15. The Commission analyzed the filings in detail and determined the costs and capacity for each year of the control period.32% Transmission Loss. Band and System Availability (percent) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Average Transmission Loss 2 4.72% Target System Availability 5 99. 7 . The Commission analysis on these filings wherever there is a change is detailed in Part V.16% 4. Lower of Band 4 3. issued for the purpose of fixation of Transmission Tariff.40% Figures are rounded.40% 99.Table 4:Filings: Transmission Loss.40% 99.40% 99.10% 4.36% 4.80% 3.40% 99.02% Transmission Loss. the Commission fixed/determined the Transmission Tariff for each year of the Control Period. APTRANSCO requested that the filing may be examined and fix the Transmission Tariff for each year of the control period.76% 3.86% 3.13% 4.40% 4.46% 4.

“all rules made under subsection (1) of section 69 of the Electricity (Supply) Act 1948 (Act 54 of 1948) shall continue to have effect until such rules are rescinded or modified”. notified by Department of Power. Govt. 1956 (stated above). of India.The Companies Act 1956 and its applicability to the companies governed by special Acts to insurance. Ministry of Energy.Part III: Important Issues Raised by General Public and APTRANSCO Responses Annual Report on Accounts/Balance Sheet 16. 1948”. 1956 and the accounts are being maintained separately with effect from 1st February 1999. the APTRANSCO has been preparing (since inception from 1999) its Annual Statement of Accounts in the forms prescribed under the Electricity (Supply)(Annual Accounts) Rules 1985. necessary disclosures are being made in the Annual Statement of Accounts every year in “Statement of Accounting Policies” and also to the Statutory Auditors comments and C&AG’s Comments by way of the Company’s replies. electricity supply and other companies have been discussed at Section 616. Section 211 (1) of the Companies Act. Further Section 185 (2) (d) of the Electricity Act 2003 (came into force from 10-6-2003). banking. except in so far as the said provisions are inconsistent with the provisions of the Electricity (Supply) Act. 1956 specifies that “every balance sheet of the company shall give true and fair view of the state of affairs of the company and be in the form set out in Part I of Schedule VI or in such other form as may be approved by the Central Government either generally or in any particular case. Considering the provisions of the Companies Act. Issue: Failure to comply with the mandatory provision in respect of Annual Report on Accounts/Balance Sheet APTRANSCO: APTRANSCO has been registered under the Companies Act. specifies. Depreciation on Fixed Assets in use 17. The section 616 (c) specifies the provisions of the Companies Act shall apply “to companies engaged in the generation or supply of electricity. Issue: Depreciation on Fixed Assets in Use 8 . provided nothing contained in this sub-section shall apply to any company engaged in the generation or supply of electricity for which a form of balance sheet has been specified in or under the Act governing such Class of Company”. Further.

07 Cr besides projections of revenue gap of Rs.5. construction of substations and lines are getting obstructed due to number of right of way problems in laying of the lines and land acquisitions for construction of the substations.97 Cr. the reduction in surplus is only Rs. from time to time. For the past few years.79 Cr FY 2008-09. Hence APTRANSCO is unable to spend the targeted expenditure in a complete year and the amounts are being spilled over to next 9 .386.107. due to unrealistic assessment of expenditure and revenue by APTRANSCO and APERC APTRANSCO: The revenue gap shown in the objection is the difference between the surplus of Rs. Issue: Does APTRANSCO overcome the problems in achieving the proposed capital expenditure for the current year FY 2008-09 as APTRANSCO showing exaggerated the estimate of capital expenditure for the current year. is Rs.25 Cr (as per revised estimates). Issue: (b) APTRANSCO request for examining the desirability or method of allowing claims for true ups or Special appropriations of a particular financial year in the subsequent year itself instead of at the end of control period for all years APTRANSCO: This issue is in the purview of APERC Capital Expenditure 20.76 Cr provided in the tariff order (for both transmission and SLDC put together) and revised estimates based on actuals.79 Cr (0. Issue: (a) APTRANSCO claimed a special appropriation of Rs. 5. Special Appropriations 18. When compared to the total ARR (excluding surplus) Rs.665.101. as it is almost 200% to the actually capital expenditure of FY 2007-08. Due to 9 months standing crops out of 12 months prevailing in a year in coastal areas of the state in particular the execution of works were delayed.87% which is less than 1%) 19.APTRANSCO: APTRANSCO has been calculating depreciation as per the depreciation rates notified by the Ministry of Power/Government of India. APTRANSCO: APTRANSCO proposes the required expenditure every year keeping in view that the whole of the planned schemes will be executed in time for utilization of the targeted expenditure and to meet the completion of the targeted substations in all respects for meeting the load growth in concerned areas.

12. wherein the company mentioned that scheduled date of completion shall be within 30 months and 33 months for first and second generating units respectively from the date of achieving financial closer. And also lift irrigation schemes works are covered during the year 2008-09.07. Anticipating the achievement of financial closure of the project by BPL and also based on the schedule COD of 30 months and 33 months of first and second generating units respectively indicated by BPL.0% 2007-08 4. Hence the expenditure from 2008-09 is more when compared to other two years.20% 3.2004 by APTRANSCO. system improvement schemes are planned for the year 2008-09 particularly in twin cities with GIS substations and connected XLPE cable for which erection cost of each substation is six times of conventional substations.89% (Provisional) * APTRANSCO network losses. The amendments of the PPA are under process of finalization. Based on the orders of the GoAP. More over.e. Generation Capacity to be wheeled 21.3% 4. 10 .coming years.45% 4. Issue: What are the actual achievements of APTRANSCO in reducing Transmission Losses during 1st Control Period against the targets fixed Hon’ble Commission.2003 with BPL Power Project by annulling the earlier termination dated 09.07. in Ramagundam? APTRANSCO: GoAP in the letter dated 19.2007. has directed APTRANSCO/DISCOM to take further necessary action to reinstate the PPA dated 10. Issue: APTRANSCO estimates the generation capacity to be wheeled is 13973 MW in 2009-10 to 20222 MW in 2013-14. 2009-10 to 2013-14 Transmission Losses 22. APTRANSCO included the BPL Power Project in the Programme of gross capacity addition during the second control period i.27% 2008-09 4. Does the variation of capital expenditure incurred actually during 1st Control Period have its impact reduction of Transmission Losses? APTRANSCO: Whether the estimated installed generation capacities can be added during the 2nd Control Period especially projects like BPL Item APERC target Actual * 2006-07 4. BPL furnished its proposals for amendments of PPA.

in addition to the existing 2 ED posts. At present. the O&M cost consists of ‘Employee Cost. the Officials of APTRANSCO in the rank of Executive Director have to interact with different stakeholders. Hence for the second control period. it is felt necessary to provide promotional avenues to CE rank personnel and hence. Energy Conservation Measures 25.03% (55% of CPI-industrial workers and 45% of WPI-transmission goods) and number of bays and CKT. If it is true why is the management of APTRANSCO misusing its authority repeatedly. Issue: (a) what are the measures taken by APTRANSCO for energy conservation following the energy conservations act? 11 .’ A&G’ and ‘Repairs and Maintenance Cost’ has been worked out based on the actual expenditure for base year and projected for the 2nd control period of 5 years duly considering the average inflation @ 8. CGM (CC) to the cadre of ED true. violating establishment norms and procedures to show undue favors for an individual employee in the organization? APTRANSCO: As a part of business. Government and other Private Organizations. and Posts 23. 2 FA&CCA posts and 1 CGM posts which are feeder cadre posts to Executive Director Posts. there are 19 CE. Pay and Allowances. the pay and allowances are worked out on the basis of existing posts and posts to be filled up to handle the new capacity addition 24. was addressed for up gradation of 2 CE rank posts as ED on floating basis with flexibility as per needs each time. Chandra Shekhar Reddy.The variation in Transmission loss achieved by APTRANSCO was not only due to variation in investments incurred but also due to variation in hydel generation and consequent import of power from other states.. Determination of Transmission Tariffs. Issue: (b) when nearly 50% posts are lying vacant. where is the necessity for creating four posts of EDs in APTRANSCO afresh? Are the contents of the APSEB Engineers Association representation dated: 5-1-2009 addressed CMD/APTRANSCO regarding promotion of A. Accordingly. Govt. Issue: (a) Are the Pay and Allowances worked out on the basis of filled up posts only for the 2nd Control Period APTRANSCO: As per Regulation 5 of 2005.

APTRANSCO: ((i) Organized All India Seminar on the topic “Carbon Footprints – Its sources. Is it a permanent body? Do you take up any measures in conservation of power? Do you have any plans to proceed with awareness activity? What is the total expenditure incurred on Advertisement? Paper wise details are solicited. APTRANSCO has withdrawn the T. 26. Is the above cell formed is functioning? cancel the order? APTRANSCO: In consultation with CMDs. AP State Center during November.7-6-2005. APTRANSCO: Govt. It is a temporary body and the decision to make it a permanent body is under purview of Govt.No.27 per KW per month against the proposed wheeling capacity of 13973 MW during FY 2009-10 12 . If so. Institution of Engineers. 2008 with the objective of promoting energy conservation (ii) Observed Energy Conservation Week from 14th to 20th December. what is the outcome of the functioning? Does APTRANSCO want to continue the above cell or 27.Ms.O issued on 5/09/2008. Issue: (b) Does APTRANSCO have authority to constitute an energy conservation cell? Does APTRANSCO consult and seek the consent of all proposed organization and the government before issuing an order for creating energy efficiency and conservation cell.59. of AP has constituted a committee called “AP Power Co- ordination Committee (APPCC) to look after all Commercial issues related to Bulk Supply and all legal issues related to IPPs and other generators as per the G.O. Dt. Issue: What is the justification in claiming transmission charge of Rs.O. 2008 to create awareness among its employees and consumers (iii) Replaced energy inefficient Tube Lights with Compact Fluorescent Lamps for corridor lighting at Vidyut Soudha (iv) Entrusted the work of fixation of agency for energy audit for Vidyut Soudha to NEDCAP (v) Spread of message of Energy Conservation through posters.62. Strategies and Solutions” jointly with Energy Conservation Mission. Issue: (c) It is learnt that there is one Transco-DISCOMs co-ordination body. of AP Justification in claiming transmission charges 28.

2008 and it is anticipated to reach 10. table 7.57. APTRANSCO estimated the net peak demand of 17292 MW by the end of the second control period i. There is an increase of 7954 MW in demand when compared to the present demand of 9374 MW during this financial year. considering the growth in all the categories especially the lift irrigation load of 3500 MW which alone contributes to the maximum share in the estimation of demand. Keeping in view of the above conditions and also giving special As such the Transmission charges tend to go up in view of increase in cost and reduction in 13 . Issue: Transco’s capital expenditure estimate as well as transmission tariff is based on estimated additional capacity of 10. page No.399 MW of power during the control period. It is also to be noted that no PPAs are signed for any of the plants that are supposed to generate the estimated addition.06 Cr in FY 2009-10) over the base transmission cost projected for FY 2008-09 (Rs. ii) Open Access Consumers are projected less than previous as they are not realized during first control period as projected. This has resulted in increase in Transmission Tariff.91 per KW per month for wheeling of 15376 MW in FY 2008-09? APTRANSCO: On account of huge capital investments/addition of Transmission capacity in the 2nd control period (as shown at Para 3. ROC have gone up during second control period as shown at Para No.88 Cr).38. and iii) NTPC Simhadri Expansion Project was not completed as projected in the first control period. We request the Commission to give consent to the corresponding capital expenditure on evacuation of this power only after the PPA is signed following proper public process and Commission’s approval for the same.18 Cr (Rs.42 & 43 of Transmission ARR) the O&M cost.1044.186.e. It is also to inform that present maximum demand met by the APTRANSCO is 9374 MW during October.. there is reduction in capacity by 1403 MW over the capacity considered in Tariff order for FY 2008-09 (15376 MW) and (13973 MW projected) for FY 2009-10 (ARR projections) due to the following reasons i) Installed Capacities are taken at exbus. capacity. FY 2013-14. Depreciation.2 Table 6.000 MW by March’ 2009. This capacity addition may not be realized.as against transmission charges Rs.857. APTRANSCO: At present APTRANSCO is importing very expensive power to abridge the demand-supply gap. Realization of Capacity Additions 29. The transmission cost has increased by Rs. Similarly.

Why this was not taken in to account for planning new transmission network.attention to the lift irrigation load of 3500 MW. Coastal Andhra Power Limited (a wholly owned subsidiary of PFC) which was a nodal agency appointed by GoI for coordination of the project requested PGCIL to establish Inter State Transmission System (ISTS) for evacuation of power from 4000 MW UMPP on a long term open access basis to the above beneficiaries including 1600 MW to Andhra Pradesh. Karnataka & Maharashtra 800 MW each. Krishnapatnam Ultra Mega Power Project 30. which is going to materialize during second control period. one of the primary conditions for setting up of UMPP projects is that project should cater power requirements more than one State. 4524 MW is under construction and these projects are likely to come in 11th plan period. APTRANSCO estimated the gross capacity addition of 10399 MW. The capacity addition of 10399 MW comprises of three gas based Projects for which PPAs have been entered out of four projects with the estimated capacity of 1129 MW which are supposed to commence Commercial date of operation in the financial year 2008-09. GoI allocated power 1600 MW of power to the State of Andhra Pradesh and balance power of 2400 MW out of 4000 MW was allocated to the States of Tamilanadu. It is also to be noted that out of 10399 MW. A portion of the power to be generated here is allocated to AP. Accordingly MoP. APTRANSCO: As per the guidelines of Government of India (GoI). 4524 MW is under construction and is going to materialize by the end of second control period. This was approved by Standing Committee in Southern Regional Power Committee (SRPC) and Western Regional Power Committee (WRPC). Excess Capital Expenditure 14 . Issue: The new schemes for which evacuation facilities are set up do not include Krishnapatnam Ultra Mega Power Project (UMPP). Remaining projects are under LOA. Most of the APGENCO projects which are under construction or about to start construction are in principle agreed by the APTRANSCO/ DISCOMs and also they are state owned projects which are given privilege to purchase power regardless of high or low cost of power. tendering and developmental stage. 6880 MW of the capacity addition alone is from state owned APGENCO projects. The CERC has already cleared the power purchase cost from this plant.

69 Cr through Tariff order for FY 2005-06 to FY 2008-09 towards capital expenditure.a.94. The Commission is requested to satisfy itself that every rupee is spent correctly and judiciously before allowing its addition to be fixed assets.2020.21 Cr to Rs. The fact can be seen from (page 42 of the filings) the figures capitalized during FY 2005-06 to FY 2007-08. 15 . IDC during this period is five times more than that permitted by the Commission.16.1339. This assumption is questionable.54 Cr against the tariff order figure of Rs. Here it is also to be noted that capital expenditure transferred to fixed assets during the first control period is Rs. The increase in IDC from Rs.803. The capital expenditure transferred to fixed assets during the above period amounts to Rs.a. No change in non-tariff income 32.500 Cr due to system improvement schemes planned particularly in twin cities with GIS substations and XLPE cable for which erection cost of each substation is six times of conventional substations and also lift irrigation scheme works are covered during the year 2008-09.08 Cr is due to (i) Increase in capital expenditure (ii) Increase in the rate of interest.88.1825. This also shows that the huge spurt in capital expenditure has taken place in one year. Also.2823. Capital Expenditure: APERC had allowed an amount of Rs. Against this. the IDC has been projected at 12% p. In view of recent increase in interest rates. as against 9% p. the transmission works involve gestation period as certain works taken up during the year gets completed in the subsequent years.91 Cr as against the Tariff Order figure for Rs.1920. APTRANSCO: The revised base Capital Expenditure (excluding IDC and expenses capitalized) for the Financial Year 2008-09 is projected at Rs.76 Cr less than the amount allowed by the Commission.31. factored in the Tariff Order. APTRANSCO had invested/investing Rs.26 Cr over the tariff order. Issue: Capital expenditure during the year 2008-09 is Rs. 930. Issue: No change in non-tariff income is assumed even when the ARR of transmission business is projected to increase by 150% during the control period.30 Cr Normally.39 Cr (p.95 Cr with an increase of Rs.42 of the ARR) over and above the expenditure permitted by the Commission in the Tariff Order..

As such. APTRANSCO being the STU and SLDC operator has to cater the needs of data and voice communications to SLDC and among the EHT Sub-stations and Generating Stations. the non-tariff income for second control period is projected based on actual non. If these cases are allowed to prolong like this even if the judgment comes in the favor of Licensee the service users may prefer to close their businesses rather than pay huge sums piled up during nearly a ten-year period. sale of scrap.tariff income in FY 200708. APTRANSCO / DISCOMs are making untiring efforts to finalize these cases at the earliest Recovery of Profits for the First Control Period 16 .APTRANSCO: The major portion of non-tariff income is on account of levy of penalties. non-tariff income. Hence.22 Crores on laying OFC network for communication purposes. Further keeping in view of the provision of Electricity Act. APTRANSCO: At present APTRANSCO is having OFC networking length of 1558 RKM.). Depending upon the surplus capacity. This depends on various parameters and is not assured/regular income for each year. rebates for advance payments etc. 2003. Issue: Court cases on wheeling charges are pending for more than 6 years. For this purpose APTRANSCO has been investing in OFC networking. What is the length of the existing OFC network? We also would like to know whether Transco proposes to lease it or use it other ways to raise additional. liquidated damages (due to noncompliance of certain contractual obligations pertaining to material procurement and works contract etc. There appears to be no effort on the part of the Licensee to obtain judgments on these cases. We take this opportunity to request the Commission to direct APTRANSCO to provide the amounts pending from these concerns on the basis of the wheeling charges fixed by the Commission APTRANSCO: The issue is within the purview of Hon’ble High Court / Supreme Court. The sooner the Licensee wakes up the better for the state’s economy. APTRANSCO having IPI license (dark fibers can be leased out) will explore the possibilities for commercial use of the proposed OFC network Court cases on wheeling charges 34. the non-tariff income is same for all the five years in the second control period OFC Network 33. Issue: APTRANSCO proposes to spend Rs.248.

Commercial etc.67 Cr) and FY 2007-08 (Rs. As per the PPA between APTRANSCO and DISCOMs the revenues / cash flows generated by the assets of 17 .90. This may not be allowed 36. As such the ERC has been ensuring the APTRANSCO / DISCOMs to meet the revenue gap. APTRANSCO: APTRANSCO had claimed differential amount of profit for FY 2006-07 (Rs. 2003. Issue: Commission may advise the state government to take over the debt burden of employee terminal payments APTRANSCO: As per the first transfer scheme. Further the State has been progressing towards rationalization of Tariff.47.).70 Cr during the second control period for the profits it was not able to recover during the first control period. Further the challenges highlighted by the objector have successfully faced by the all utilities in the state.. However APTRANSCO/ DISCOMs have been exploring the commercial option to enhance non-tariff income/ other revenue so as to achieve rationalization as envisaged in the Electricity Act. National Tariff Policy Debt Burden of Employee Terminal Payments 38. APTRANSCO has been filing ARR of MYT to recover its full cost plus in addition to the return on internal resources / equity invested in i.43. This has resulted in tremendous growth in the sale of power to subsidizing categories (Industrial. Issue: Commission may advise APTRANSCO and the DISCOMs to explore all the options to enter into other business to make themselves self sustaining and also reduce the increasing revenue gap APTRANSCO: APTRANSCO had achieved the miles stones envisaged Electricity Act.35. APGENCO had got assets equivalent to the liabilities (including terminal benefits) transferred.03 Cr).e. allowed in Tariff Order and actual workings based on audited accounts and factored in the ARR proposals as special appropriation Entry in to Other Businesses 37. Thus the retail customers are not resorting to open access for drawl / purchase of power from the outside agencies (other than DISCOMs). Issue: Transco proposes to recover Rs. 25% of Regulated Rate Base (RRB). 2003 National Electricity Policy and National Tariff Policy.

Hence in the interconnected grid it not possible to put the targets for each sub station wise in AP alone to reduce the frequency variations Payments to Victims of Accidents 40. all constituent members are expected to maintain system frequency as near as possible to 50 Hz. As per the operating principles laid down by SRLDC. Responsibility is fixed on the Contractor for payment of compensation to the contract labor incase of accidents occurred while carrying out the works as per the clause 25 & 28 of the tender specification. APTRANSCO and four DISCOMs have been regularly contributing towards future liabilities of terminal benefits. Pondicherry. The system frequency is monitored by the Southern Regional Load Dispatch Center (SRLDC) located at Bangalore. As such the liabilities pertains to terminal benefits are partly met through the assets transferred to APGENCO and partly through the regular contributions being made by the all the six companies. Further. Monitoring of Frequency Variations 39. APTRANSCO: Contract Labor who are engaged through Contractor or agencies are being reimbursed 3% of wages towards group insurance. it is to mention that APGENCO. Kerala and a part of Goa. Issue: A plan has to be prepared to reduce the frequency variations with the targets for each year to each sub station and closely monitored APTRANSCO: APTRANSCO is one of the constituent members of the Southern Regional Grid and operates in synchronism with the power grids of the other southern states of Karnataka. No adverse complaints have been received regarding nonpayment of compensation to the persons who met with the accidents Cost Benefit Analysis-Investments 18 . APERC has already approved principles / processors including other commercial parameters to addressed terminal benefits. Tamilanadu. In this connection.APGENCO take care of the servicing liabilities including the liabilities pertaining terminal benefits. Issue: Amount paid to the victims for both fatal and non-fatal accidents for departmental and non-departmental accidents.

Financial Year Transmission Loss 2005-06 4. of India entrusted the responsibility of implementing the SCADA technologies for all the states in the country (SLDCs).41.46 Cr. for 2007-08 is 482. System improvement and power Evacuation schemes are formulated based on the load growth in a particular area and for terminal voltage improvement for tail end consumers. 19 . to Power Grid Corporation of India Limited (POWER GRID). Issue: What is the capital amount invested by Transco year wise? Have losses comedown? Is there any study regarding cost benefit analysis? APTRANSCO: The year wise Capital Expenditure of APTRANSCO for 2006-07 is 499. Regional and State Level. So total investment on every scheme will be cost benefit oriented. cost benefit analysis will be worked out on each proposed scheme and will be sent to Andhra Pradesh electricity Regulatory Commission for approval.27% 2008-09 3. APTRANSCO: Govt.25 Cr.89% (Provisional) Erection schemes are formulated on two factors.1% 2006-07 4. In financial viability calculations. The systems provided already are with state of art technology in hierarchical setup for energy management and SCADA facilities coupled with a reliable wideband communication network from world-class technology provides at that time (1998). a PSU for online operation of the Indian Power System.06 Cr and for 2008-09(RE) is 1484. This is done with a view to facilitate coordinated online management of the Indian Power System Operational at National. Issue: An expert committee should examine the limitations of the already installed technology sought to replace the same. Generally schemes are worked out based on technical feasibility and financial viability. The actual Transmission Losses in the APTRANSCO network for the 1st Control Period is shown below. One is System Improvement and the other one is Power Evacuation. Limitations of Installed Technologies 42.0% 2007-08 4.

20 . The up gradation proposals are essential for effective and efficient functioning of Load Dispatch Centre. The procurement of computer hardware and up gradation of software proposed in investment plan is envisaged for improving the performance of the existing computer systems of Load Dispatch Centre in the state. As the modernization of SLDC is a continuous process. associated real-time data requirements as well as technological innovations and obsolescence of control centre equipment.There is heavy reliance on information technology with components having high obsolescence rate. which is in line with the recommendations of the Committee constituted by Ministry of Power. Government of India for System Operation and Ring Fencing Load Dispatch Centers. The applications (such as EMS/ SCADA) are offered by a limited number of vendors and costs are high. CAPEX plans for a rolling five-year period are submitted to the ERC to take care of the system expansion.

In this context. However. the Commission provisionally approves the following. The Commission approved the transmission loss reduction path along with lower and upper band after considering the following. APTRANSCO may settle the final energy account for users of the transmission system. APTRANSCO shall put up a transparent energy accounting system based on boundary meter readings to arrive at monthly energy losses in the transmission system and seek the approval of the Commission for such measurement mechanism. the Commission intends to put incentive/penal mechanism for APTRANSCO with regard to transmission loss reduction path during the Control Period. 46. the Commission wish to leave ways and means of loss reduction to the discretion of APTRANSCO. In view of existing incentive and penal mechanisms under MYT framework. APTRANSCO shall apply only the average transmission losses approved in this Order for energy settlement. 45. APTRANSCO shall use such accounting mechanism to settle the transmission losses to user accounts on actual basis. Upon the availability of actual transmission losses. the Commission 21 . the reduction in transmission losses as projected by APTRANSCO and approved by the Commission requires systematic approach towards monitoring of loading of power transformers. directs that.Part IV: Commission Analysis on Select Issues Transmission Losses 43. Further. APTRANSCO shall put the losses to user account provisionally at average transmission loss filed by APTRANSCO and approved by the Commission. b) approved investment for the Control Period. a) APTRANSCO can collect 10 percent of average variable cost of energy from transmission users in case the transmission loss is below the lower band for a year. Till such time. In this context. APTRANSCO filed the Transmission Loss reduction path for the Control Period with lower and upper bands as per Regulation 5 of 2005. Upon approval of the Commission. a) existing transmission loss levels. and c) other loss reduction avenues 44.

This is necessary in view of different regulatory treatment of assets. a) The Commission noted that the amounts claimed for true up on account of previous year’s expenses are not as per the Regulation 5 of 2005. APTRANSCO shall segregate the SLDC accounts in full shape within a year. These asset registers will be inspected by the Commission Staff from time to time. i.e. In case of APTRASNCO. Special Appropriation 49.1005. the Commission felt that it is 22 .e. Annual Accounts 48. The basis for both incentive and penalty is the energy saving or loss beyond the threshold loss limits. According to the Regulation only the income tax amount is uncontrollable. beyond lower and upper bands of transmission loss for any year. i. as expenses for the Control Period while giving the details for each year. Both the amounts claimed as special appropriation have been disallowed in view of. 47.b) APTRANSCO shall pay 10 percent of average variable cost of energy to transmission users in case the transmission loss is higher than the upper band for a year. b) In view of small amount of income tax paid during previous years and high-income amounts claimed as expense for the Control Period. APTRANSCO needs to expedite the process of segregation of the SLDC assets.08 cr. APTRANSCO filed the special appropriation amount of Rs. APTRANSO may file a separate application on these items. The Commission already issued a directive to APTRANSCO in this matter and reiterates the same in this Order duly extending the date. if it wishes to be considered. The amount consists of a) true up amount for previous years and b) income tax. investments are recovered through depreciation expenses and the assets get the return on capital employed. The Commission noted that APTRANSCO is yet to segregate SLDC assets in its Annual Accounts despite the existence of such requirement. by 31st March 2010 and also immediately start maintaining separate asset registers on prospective basis. The SLDC investments are recovered in full through amortization of capital investment without any return on capital employed.

92 28.37 46.00 0.34 34. 2009.83 4.13 3. The paper may contain details of leasing out of surplus OFC network and possibilities for entering into transmission contracts outside license area. The details are given in Table-05. Table 5:R&M Stores Carrying Cost (Rs.80 31.32 42.00 0.84 193.23 34. APTRANSCO shall file with the Commission an approach paper to enter into other businesses especially using its asset base (including the qualified manpower) by November 30.35 23 . In this context.Cr.68 19. APTRANSCO though identified the working capital requirement for R&M stores. The Several objectors during the public hearing mentioned before the Commission that it is worthwhile to explore possibility for APTRANSCO to enter other businesses using its asset base especially the Optical Fiber Cable (OFC) network. The Commission also feels that APTRANSCO should seriously explore the possibilities of scaling economies in laying the OFC network and of leasing out the surplus capacities for others on commercial basis.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Figures are rounded R&M Stores Filing APERC 2 3 23. has neither included working capital amount in Regulated Rate Base (RRB) nor its carrying cost as expense item in the filings.00 3. Entering into Other Businesses 50.better to allow APTRANSCO to claim income tax on actual basis ex-post. the Commission directs that. Commission will examine this issue on separate application as and when made.65 38.47 3. The Commission felt that it is necessary to have some provision towards stores and accordingly provides the carrying cost on R&M stores equivalent to one fourth of R&M component.75 144.00 0.75 25.52 Carrying Cost Filing APERC 4 5 0. It may also examine the other areas where it can do profitable business.00 0. O&M cost approved has been allowed as expense item in the ARR.24 4. Carrying Cost of R&M Stores 51.45 31.00 0.

a) It already adopted the depreciation rates announced by Ministry of Power. Government of India for the purpose of its Annual Accounts. the value of R&M stores on 1st of every month will be considered as monthly stock and then the three months average shall be computed. The provision for the stores and carrying cost provided by the Commission shall be utilized by APTRANSCO to minimize the hurdles in procuring the R&M stores for transmission operations. 53. 24 . the Commission directs that. Accordingly. In this context. It is to be noted that the statutory requirements of Annual Accounts differ from regulatory methods used in recovery of the expenses. 54. the Commission directs that. For the purpose of this directive. It shall file this statement with the Commission FY2008-09 onwards without fail. During the discussions with APTRNASCO. b) APTRANSCO may have to compute the depreciation on all assets irrespective of funding in view of statutory requirements for Annual Accounts. c) The depreciation amount shown in Annual Accounts may be higher than the depreciation amount actually recovered through tariffs. APTRANSCO shall file a comparative statement with the Commission on completion of Annual Accounts on depreciation amount calculated following the regulatory principles as stated in Regulation 5 of 2005 and as per approved Statutory Annual Accounts with possibly for FY2007-08 onwards. APTRANSCO shall on an average maintain a minimum 75 percent value of stores provided in this Order on quarterly basis (three months) for every year of the Control Period.52. the Commission has noted uncomfortable position of APTRANSCO over depreciation calculations in view of.

78 467.Part V: Commission Analysis and Decisions on Filings Investment Plan 55.37 1124.64 0. Developme nt 7 83.43 123.62 541.14 83.10 75.26 977.10 5.Cr.12 0. As per the investment plan. APTRANSCO filed the investment plan for the Control Period based on the resource plan incorporated in the filings. c) Renovation and Modernization requirements and proposed loss reduction trajectory during the Control Period.85 1203.66 8 3112.99 Figures are rounded 56.8429 cr. the Commission has considered the following aspects. b) System improvement to meet the projected load growth and system strengthening requirements during the Control Period.32 538.52 2010. d) Commission approved investment schemes and the investment schemes filed for approval with the Commission.00 80.22 Total 6 351. The details of investments filed are given in Tabale-6.27 383. 2009-10 to 2013-14 (Rs.28 597.45 673.37 318.44 471.39 2282.00 248. during the Control Period.05 493.00 80.70 107.88 0.34 220 and 132 KV 3 1091. While examining the investment plan and investment amount required.00 0.82 98.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Evacuation and System Improvement 440 KV 2 292. HMDA Area 4 1220. APTRANSCO intends to invest an amount of Rs.55 Renovati on and Moderni zation 5 74.13 GIS and UG Cable Project.65 113. e) Historical capital expenditure and reasonableness of the proposed investment schemes during the Control Period.99 8428.55 3093. a) Power evacuation needs in tune with the revised implementation schedules of the generating stations. and. 25 .68 0.00 0.09 Bulk Load Works Telecom Infra.00 427. Table 6: Filed Investments.00 1884.21 556.

00 Renovati Telecom Infra. a) The assets and capital used in the transmission business known as Regulated Rate Base (RRB).8429 cr.00 50.00 200.31315.00 10.00 50.00 1060.Cr. HMDA Area 4 500.00 1110.00 2000. Table 7: Approved Investments. The details of investment approved by the Commission are given in Table-7. APTRASNSO is permitted to claim the Return on Capital Employed (ROCE).00 10.00 Total 7 960.00 500.00 350.00 10.00 500.00 200. 59.00 Figures are rounded The Return on Capital Employed 58.00 250. APTRANSCO stated that it computed the ROCE as per the procedures laid down in Regulation 5 of 2005. on and Moderni Develop ment zation 5 6 50.00 200. The Return on Capital is worked out at 12. the Commission revised the investment amount at Rs.00 10.00 200. The investment plan proposed by APTRANSCO is quite ambitious given the system requirements and historical capital expenditure. The regulatory framework relating to compensating the capital employed in general is.00 4900.00 1600.00 300.00 200.00 660.00 0. As per the filing.00 50.00 50. While paying due attention to the above factors.00 1000. The amount claimed in this manner is expected to meet the cost of debt and equity capital used to finance the assets and capital used and useful in the transmission business.5 percent using 26 . b)cost of debt and c)return on equity.00 GIS and UG Cable Project. 2009-10 to 2013-14 (Rs. the RRB is worked out at Rs.00 350. c) The Return on Capital is applied on RRB to arrive the ROCE for each year of the Control Period. As per the Regulation 5 of 2005.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Evacuation and System Improvement 220 and 440 KV 132 KV 2 3 200.62 cr for the Control Period.57. for the Control Period. b) The Return on Capital (cost of capital in percent) is worked out based on a) debt-equity ratio.4900 cr.00 500.00 400.00 1110.00 50. against the filed amount of Rs.00 10.

64 4892.14 622.84 23213. a) The approved investment and capitalization schedule for each year of the Control Period are taken into computations of the RRB.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Figures are rounded Regulate Rate Base (RRB) Filing 2 3251. The Commission has computed the RRB with the following modifications.04 992.51 1134.01 6287.38 674. APTRANSO computed the ROCE at Rs.47 cr.29 7940.75:25 debt equity ratio with cost of debt and return on equity at 12 percent and 14 percent respectively. Table 8:Regulated Rate Base and Return on Capital Employed (Rs. such as assets funded by consumers and government. With these changes in RRB calculations and Return on Capital.5 4414.69 3605. based on existing loan profile and likely future interest rates.25 9659. Applying the Return on Capital of 12. the Commission computed the ROCE at Rs.78 396. c) The opening value of the asset base is computed by excluding the amounts not funded by APTRANSCO.08 9072.Cr.38 Return on Capital Employed (ROCE) Filing APERC 4 5 406.66 2553.46 304. for the Control Period while giving the details for each year of the Control Period.46 cr.61 APERC 3 2770. d) The cost of debt.00 5392.27 691.62 538.2 5657. 60.5 percent on the RRB. The details of RRB and ROCE are given in Table-8.03 1207.2533.5 percent as filed by APTRANSCO. 61.47 27 . for the Control Period. 4414.99 35315. b) The working capital requirement is computed for O&M by considering 45 days equivalent of approved O&M expenses for each year of the Control Period. is placed at 10 percent instead of 12.

09 cr. and d) Estimated O&M expenses capitalized with investments for each year of the Control Period.378.03 for future. Considering these facts. Compared with actual O&M expenses in the previous year from Annual Accounts. it is found that the projected O&M Cost is rather high. c) Number of substation bays and line length have been projected using the historical information and the resource plan filed. The projected net O&M cost has the increasing tread in the range of 12-14 percent per annum during the Control Period.1591.66 cr. The operating and maintenance (O&M) cost consist of a) employee cost. a) APTRANSO has taken only one year. reference to proposed For the purpose of forecasting. for the entire Control Period while giving the details for each year.57 percent per annum during the Control Period.e. APTRANSCO projected a sum of Rs. 63. capitalization of O&M expenses for the Control Period based on the projected Investment levels and O&M cost. the net O&M cost is expected to increase by about 10. 64.FY2008-09 as the base year for the purpose of projections. b) Wholesale and Retail Price Indices are taken in the ratio 55:45 and this ratio has been used to arrive at the composite inflationary factor at 8. APTRANSCO estimated the net O&M cost at Rs. and b) The projections are sensitive to investment plan that has a bearing on number of substation bays and line lengths. a) Estimated O&M Cost for FY2008-09 and this amount is considered as base for the purpose of projections. i.Operation and Maintenance Costs 62. In 28 . The reasons for such high projected values are partly on account of. 65. Using these parameters. which influence the forecast. Accordingly. 66. APTRANSCO projected the O&M cost for each year of the Control Period as per the principles stated in the Regulation 5 of 2005. the Commission felt that the O&M costs projected are rather on higher side. As per the Commission’s calculations with approved investment and capitalization schedule.1699.02 cr. b)Repair and Maintenance (R&M) cost and c)Administration and General (A&G) expenses. APTRANSCO used the following. the Commission calculated the O&M cost for each year of the Control Period and the sum of the O&M cost approved for the entire Control Period is placed at Rs.

33 385. Based on the Commission’s approved investment and capitalization schedule for each year of the control period.21 217.95 372.55 40. the depreciation amount is computed at Rs.44 cr.76 43.37 1699. The Commission decided to adopt the depreciation rates announced by CERC for transmission assets during the Control Period. Government of India. Table 9:O&M Costs for the Control Period (Rs.91 315.2923.94 426.15 1591. As per the Regulation 5 of 2005.88 296. such as assets funded by consumers. * includes O&M carrying cost also Depreciation 67. details of O&M cost filed and approved by the Commission are given in Table-9.09 Figures are rounded. for the Control Period.Cr. APTRANSCO did file neither the reason nor justification for adopting the rates notified by Ministry of Power.36 1808.08 428.68 284.18 377.69 450.72 413. 68. Government of India.98 2077.) The Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Gross O&M Cost Filing APERC (*) 2 3 347.66 26.15 357.tune with the approved investment and O&M cost. Applying these rates on forecasted assets.24 42.44 Net O&M Cost Filing APERC 6(2-4) 7(3-4) 261.68 284.25 75.48 Cr.02 257. the Commission placed the capitalization value of O&M cost at Rs. 29 .61 378.19 501.69 64. government and grants by others have been removed from the asset base for computing depreciation at the rates announced by CERC.65 336.22 325. As per Regulation 5 of 2005.54 Expenses Capitalized Filing APERC 4 5 86.07 76.22 68. APTRANSCO computed the depreciation amount on assets using rates notified by Ministry of Power. for the entire Control Period while giving the details for each year.51 72.217.03 348. the assets not funded by APTRANSCO. APTRANSCO shall adopt the depreciation rates announced by Central Electricity Regulatory Commission (CERC) for transmission assets. the Commission worked out the asset base for the purpose of computing depreciation at the beginning of each year of the Control Period.87 404.

66 30 .Cr.9915.41 5653.10 761.23 387.12 1554. Table 11:Net Aggregate Revenue Requirement (Rs. With the changes observed in this section of the Order.06 1538.48 cr.13 948.27 819. as against Rs. 2923.91 cr.77 2691. The details of asset base and depreciation filed and approved are given in Table-10.51 52609.98 14714.36 2167.75 1405. as against Rs.16 5911. filed by APTRANSCO for the entire Control Period.1893. The details of net ARR filed and approved are given in Table-11.20 Depreciation Filing APERC 4 5 312.56 616.21 414.11 7482.84 459.42 cr.06 2474.91 788.As per the Commission’s calculations. Table 10:Asset Base and Depreciation for the Control Period (Rs. the depreciation amount is placed at Rs.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Figures are rounded Net ARR Filing APERC 2 3 1044.12 13676.) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Total Figures are rounded Filing 2 Asset Base APERC 3 5302.49 10484.64 40084.00 6308.66 cr.Cr.48 250.94 292.73 Net Aggregate Revenue Requirement 69. filed by APTRANSCO for the entire Control Period.34 2923.01 11083.98 8282. the net ARR for APTRANSCO is approved at Rs.50 1215.5911.78 502.62 1893.09 9706.66 9915.

71. 31 . The Commission has effected the following changes with reference to the generation capacity filed by APTRANSCO. Third Parties 4 462 462 462 462 462 Total Capacity in the State 5=(2+3+4) 13744 15541 15963 17877 21222 Notes: Figures are rounded. d) The available information suggest that there would be a potential for 1000 MW (including 660 MW NTPC Simhadri Expansion) OA capacity.Generation Capacity 70. This number is also reckoned in the computations. The details of the capacity determined by the Commission are given in Table-12. FY2009-10 to 20013-14 (MW) Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Distribution Companies 2 12891 14038 14410 16274 19469 Other Generators Open Access 3 391 1041 1091 1141 1291 Other Generators. b) The conventional generation capacities and non-conventional energy generation capacity have been reworked for each Distribution Company based on Third Transfer Scheme as announced by GOAP. the ex-bus generation capacities have been revised in tune with schedules of upcoming generating stations. The Generation Capacities mentioned here are taken as Long Term Contracted Capacity for the purpose of computing the Transmission Charge. a) Based on discussions held with Generation Corporation of Andhra Pradesh (APGENCO) and APTRANSCO. c) Based on proposed amendments to Power Purchase Agreements. Table 12:APERC-Generation Capacities. The Commission examined the generation capacity details filed by APTRANSCO for the purpose of levying the Transmission Tariff. 20 percent of ex-bus generation capacity of four upcoming gas based thermal stations is considered as Open Access (OA) capacity.

Financial Year 1 2009-10 2010-11 2011-12 2012-13 2013-14 Net ARR.86 63.75 1405. 3. 2005 (No.Transmission Tariff for the Control Period 72. The Commission computed the Transmission Charge in Rs/kW/Month as per Regulation 5 of 2005 using the approved Net ARR and the Generation capacity for each year of the Control Period. MW 3 13744 15542 15963 17877 21222 Transmission Tariff Transmission Transmission Charge/Rate Loss(kind).13% 4. Cr. 74. 2 788.03 4. APTRANSCO will recover the approved revenue requirement without incurring any financial loss.50 61. The other conditions applicable for levy and collection of these charges shall be as per the provisions of the Andhra Pradesh Electricity Regulatory Commission (Terms and conditions of Open Access to Intra-State Transmission and Distribution networks). The users of the transmission system shall pay transmission charge and bear the transmission loss in kind.02% Notes: Figures are rounded Notes on Transmission Tariff: 1. 2009-10 to 2013-14. Regulation. in force.50 1215.79 50. Rs. at the entry point.16 Generation capacity. (Rs/kW/Month) 4(3/2) 5 47.13 948. The Transmission Charge computed using the Table 13: Transmission Tariff Schedule.06% 4. The Commission approved the Transmission loss as filed by APTRANCO with provisional settlement of losses at average transmission loss level.47 65.2 of 2005) and the Balancing and settlement code. The Transmission charges payable and the energy losses to be borne shall be related to the contracted capacity in kW. following formulae. Transmission Charge (Rs/kW/Month)=Net ARR/(Generation Capacity in kW x 12) 73. The details of Transmission Tariff consisting of a) Transmission Charge and b) Transmission Loss (in kind) for each year of the Control Period are given in Table-13. 2.12 1554. 32 .16% 4.10% 4. At the tariff determined by the Commission.

If the actual recovery of revenue through Transmission Charge is less than 10 percent of the actual cost.66 76. the Commission may require the APTRANSCO to explain the reasons for cost variations. upon examination of these details may pass an appropriate Order or show the ways and means to address issue of the under recovery of the cost. 1 2 Net ARR Approved Cumulative Recovery YEAR 2009-10 2010-11 2011-12 2012-13 2013-14 MYT Period 5911.75 2952. If the cumulative actual revenue is more than 10 percent of cumulative approved revenue at the beginning of the financial year starting from 2010-11.16 5911. The details are given in Table-14. 77. and Annual and Cumulative Recovery (Rs. Commission directs that. 79.50 1736. the Commission may also require APTRANSCO to file the Transmission Tariff for the rest of the Control Period. If necessary. If necessary.63 1215. the Commission will issue a format for filing of actual cost and revenues. If the cumulative actual cost is less than 10 percent of cumulative approved cost at the beginning of the financial year starting from 2010-11.) Sl. the Commission may also require APTRANSCO to file the Transmission Tariff for the rest of the control period of five years.Commission Intervention in Case of Variations in Cost and Revenues 75.13 948. the 33 . the APTRANSCO may file the details with the Commission seeking the remedy for under recovery of the cost. APTRANSCO should be in a position to recover the approved revenue requirement with the charge fixed by the Commission on annual and cumulative basis for the Control Period. No.12 4357.50 1554.38 1405.13 788. In this context. 78.Cr.66 788. the Commission may require the APTRANSCO to explain the reasons for revenue variations. For the purpose of monitoring the actual cost and revenue. Table 14 : APERC Approved Cost. The Commission.

RADHA KISHEN MEMBER Sd/- Sd/A. SEKHAR REDDY MEMBER R. 80. RAGHOTHAM RAO CHAIRMAN 34 . Sd/C. The Transmission Tariff Schedule is given in Annexure-A and it is applicable as stated in the notes therein. This Order is signed on the 20th day of March 2009.APTRANSCO shall file the actual costs and revenues by 25th of every month for the previous month in the format prescribed for this purpose by the Commission.R. revenues and capacities along with the monthly report. The Transmission Charge and Loss in kind fixed for each year of the control period are applicable from 1st April to 31st March of the respective year. APTRANSCO may also state its own observations on cost.

Regulation.50 61.06 4. The users of the transmission system shall pay transmission charge and also bear the transmission loss in kind for both energy and capacity as indicated above. The other conditions applicable for levy and collection of these charges shall be as per the provisions of the Andhra Pradesh Electricity Regulatory Commission (Terms and conditions of Open Access to Intra-State Transmission and Distribution networks).02 35 . The Transmission charges payable and the energy losses to be borne shall be related to the contracted capacity in KW. Transmission Charge (Rs.13 4.86 63.2 of 2005) and the Balancing and settlement code. The transmission tariff/charges are to be levied as per the terms and conditions approved by the Commission from time to time.47 65. 2. 3. in force.79 50.16 4.Annexure-A Transmission Tariff Schedule. 2009-10 to 2013-14.10 4. 4. Year 2009-10 2010-11 2011-12 2012-13 2013-14 Notes on Transmission Tariff: 1.03 Transmission Loss (percent) 4. at the entry point. 2005 (No./kW/Month) 47.

Entry into Other Business 3. APTRANSCO shall use such accounting mechanism to settle the transmission losses to user accounts on actual basis. Cost and Revenue Variations 6. APTRANSCO shall on an average maintain a minimum of 75 percent value of stores provided in this Order on quarterly basis (three months) for each year of the Control Period. i. (Para 45). (Para 79). Accounts Segregation 2. Segregate the SLDC accounts from APTRANSCO Books of Accounts in full shape within a period of one year. APTRANSCO may also state its own observations on cost. The paper may contain details of leasing out of surplus OFC network and possibilities for entering into transmission contracts outside license area. APTRANSCO shall file with the Commission an approach paper to enter into other businesses especially using its asset base (including the qualified manpower) by November 30. APTRANSCO shall file the actual costs and revenues by 25th of every month for the previous month in the format prescribed for this purpose by the Commission.e. revenues and capacities along with the monthly report. APTRANSCO shall apply only the average transmission losses approved in this Order for energy settlement. APTRANSCO shall file a comparative statement with the Commission on completion of Annual Accounts on depreciation amount calculated following the regulatory principles as stated in Regulation 5 of 2005 and as per approved Statutory Annual Accounts with possibly for FY2007-08 onwards. 36 . (Para 50) O&M Stores 4. Depreciation Statement 5. For the purpose of this directive. It shall file this statement with the Commission FY2008-09 onwards without fail (Para 54). by 31st March 2010 and also immediately start maintaining separate asset registers on prospective basis. Upon approval of the Commission. Till such time. These asset registers will be inspected by the Commission Staff from time to time (Para 48). the value of R&M stores on 1st of every month will be considered as monthly stock and then the three months average shall be computed. (Para 51 and 52). 2009.Annexure-B List of Directives Energy Accounting 1. The Commission staff will monitor the value of stock from time to time. APTRANSCO shall put up a transparent energy accounting system based on boundary meter readings to arrive at monthly energy losses in the transmission system and seek the approval of the Commission for such measurement mechanism.

Capital Investments 8. unless the Commission’s approval for extension in the completion schedules is obtained in advance(Brought forward). to be issued by the concerned engineer not below the rank of Superintendent Engineer. 37 . and the assets created are put to use. c) The above-mentioned certificates have to be submitted to the Commission within60 days of completion of work. The licensee shall take all possible measures to ensure that the projects /schemes taken up are completed a s p e r schedule. at the latest The Commission may also inspect or arrange to inspect. The FCC shall have to be issued by the concerned finance officer not below the rank of Senior Accounts Officer. Considering the importance of capitalization of works. a physical completion certificate(PCC) to the effect that the work in question has been fully executed. the Commission lays down the following requirements to be fulfilled before accepting inclusion of the value of a capitalized work in the OCFA: a) On completion of a capital work. respectively. the Commission clarifies that it will not allow any interest during construction for delays exceeding one month and three months in respect of completion of projects / schemes with the completion schedules of up to one year and more than one year. a few of the capitalized works included in the OCFA to confirm that the assets created are actually being used and are useful for the business (Brought forward). physically. b) The PCC shall be accompanied or followed by a financial completion certificate (FCC) to the effect that the assets created have been duly entered in the Fixed Assets Register by transfer from the CWIP register to OCFA. In this regard.Timely completion of projects/schemes: 7. at random.

39-111. Nizamabad (Post & Mandal). A Sankaraiah.No.No. Govt. H. Arya Nagar.Khammam Post.Y Prasadarao.P. Telugu daily. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Name and Address of the Objector M. Mahaboobnagar K Prabhakar.Venugopala Rao. Hyderabad . No. Dr. Nehru Nagar.Raithu Sangham. Bandiram Nagar.Vijayananda Rao.Nizamabad-503 002 K Gangakishan. Suguru village. H. Nizamabad (Post & Mandal).Ramaswami Reddy.I.Karimnagar 505301 K Rajamouli. H.16 Vangala Subba Rao & Samineni Rama Rao. 6-8. 5-7-43.No.No. Kishan Nagar. Mahaboobnagar .516001 M. RTC X Road. H. Cell.42-242/11/8. Khammam. SAO (Retd. Mahaboobnagar-509103 K Madhusudhan. Special Correspondent. Doctor. Mahaboobnagar 509104 Krishnaiah. Rammohan Rao. 6-88/6/1/A. RTC X Roads. A. Teacher.509103 K Venkateswarllu. Gandhi Chowk. Mahaboobnagar .Employee. Nizamabad-503001. Mahaboobnagar Dr. B. Lecturer.203. H. Sreenivasulu. Cuddapah . flat. Gandhi Chowk.No.Khaleel Wadi. Khammam Dr.No. Karimnagar 38 . H. Old Fort.509104 G. Musheerabad. Khammam Mandal.1-1-60/2.Krishna Murthy. Teacher. H. 1-1-9/10. Mahaboobnagar .20 Sarampalli Malla Reddy.7-1-408 to 413. P. Sanjeev Nursing Home. 6-18-106. Nizamabad (Post & Mandal). Nehru Nagar. Subash Nagar.No. Mahaboobnagar .K Veeraiah. Khammam (Post & Mandal). Jawahar Nagar. Nandi Hills. Librarian.No. Nizamabad N Rama Rao. Suguru.. Sambhavi Nagar. vanaparthi.SE. Trunk Road. Pebbela Mandal. Hyderabad-18 D. Siricilla (Post & Mandal). Prajashakti. Vanaparthi.No.509103 Abdhul Kalli.509103 MD. Newton colony.). Gyathri Nagar. Retd. H. Sanath Nagar.E. Hyd . Ameerpet. 4-6-47. Chennaram Village.No.No.9490098666 Dr. Old NGO Colony. SRT-302. 21/71. D. H. Vanaparthi. Ambedkar Nagar. H. Lawyer. Vanaparthi.No. Karimnagar(Post & Mandal).Collector's Office. 20-60.10-5-97.L Muralidhar. Opp.Affjalluddin. Balkampet Road. Sri Darsan Residency. Gopalpet Mandal. 11-3-125. Hyderabad-20.E. Pebbela. 3-3-497/1..No. F. Doctor. Bhorgan (post & Mandal) Nizamabad D. Doctor. H. Prasad Nursing Home. Khammam Post&Mandal. Vanaparthi. Khammam-507002 A Vijayalaxmi.Annexure-C List of Objectors Sl.

Deeraj Enclave.Sl. No.No. Doctor. 27-1-1395. D. Miryalaguda (Post & Mandal). Vegalreddypalli (Post & Mandal). Balaji Nagar. Laxmipuram Village.518218 39 . Prakasam K. Dhoopadu Post.Student.19-119. Nalgonda Shiak Baba. Kalluru. Teacher. Tripuraram (Post & Mandal). Teacher.Sunkanna. First Stage.V. Karimnagar(Post & Mandal). Hidyat Ali. Peroor. D.H. Ramnagar.4/73. Pawani Prestiage. Nalgonda R Anajaiah.A. 8-1-6. Nellore-524202 Dr.Ramana Reddy. Varikuntapadu Mandal. A Block. Prakasam G. Somarajupalli. Guntur . Kurnool Mandal. G. Kolluru. Vasavi Nagar. Tirupathi Rural.Prasad. Laxmipuram village. M Rama Rao. Venkateswarlu.No.Miya. Chittoor Dr. Teacher. B Camp 9. Professor. Nilayagudem. H.2-115/1. Kurnool-518218 B. A Camp. Aditya Nagar.522101 J Rajakumari. Jyothi Hospital. 15-54/2.103.No. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Name and Address of the Objector K Bhagavanthu Rao. Tenali(Post & Mandal) Guntur KTV Prasad. Miryalaguda (Post & Mandal). Kurnool . Padmavathi Nagar. Kurnool Mandal. 1-43-17. Shiva Nagar.No.Vijayakumar. Kurnool (Post & Mandal). Gudinarva. Karimnagar Dr. Kavli. Chittoor G. 46-1-m-9A. Brahama Reddy. Kothapalli Village. 101. Teacher. Gandipalem. Flat No.9-5-176. Kurnool A Pratap Reddy. Kavali (Post & Mandal). Balaji Rao heat.G Guruvaiah. Kanigiri. Nellore(Mandal & Post). Venkateswarlu. Kurnool N Chennakesava Reddy. Kurnool MD.No.Chillumuru Post. Magunta Layout. Laxmipuram Village. V. Tenali (Post & Mandal). Nellore Hospital. Malyadri.Ajit Babu.No.No. Tirupathi(Post & Mandal) Chittoor B Suresh Kumar. Najarpet. Dhalithawada.Doctor. Opp:PNCA College. Andhrakesari School. Teacher.No. Ullindakanda Village & Post. D. Nellore 524236 N Subrahmanyam. Kurnool-518218 Dr. H. Nalgonda P Srujana. 7-48. Vengalreddypalli.No. Nellore G Srinivasulu. Kanigiri (Post & Mandal) Prakasam C. D. H. Sriram Rural Kalasala. 2nd Street. Vykuntapuram.1041/B. Reddi Colony. Dhronamraju Veedhi. H. Nellore Dr. Nellore M . Tirupathi(Post & Mandal). Dhoopadu post. Singarayakonda. Srinagar Colony. Chillumuru.No. H. Miryalaguda. Opp: Janatpet North. Harizonwada. Guntur N Narayana. 17/67. Nellore K Srinivasulu. Flat No. Dhoopadu Post. H. Aravinda Nagar.

H. Yasoda nagar.Suresh Babu. Tirupathi .B.No. 7th Lane.R.Ravindranath.Bhavan. Hyderabad .Sl. H.C. S/O B. Hyderabad -500 082 40 . Hyderabad . T.Devadattu.Sri Devi Complex.509103.No.H. M.44 M.115.No.72 K.Veeranna.No.VenkatRao. D.V.517507 G. Saphire Building. Rashtriya Raithu Seva Samithi. A. H.141.No.Raghavulu. Communist Party Of India(Marxist).14-57/2. M.B. Kukatpally. Guthi Post.42-242.Kadapa M. Barkatpura. Mydukuru Post. Convenor. Bhaseer Bagh. patamata. State President.Muralidhar. Gurajada Public School.Raghu. Employee. Opp. RTC X Roads. Ramnagar. Hyderabad . Singapur Township. Jawahar Nagar.V. Vijayanagaram Mandal. c/o Centre for environment concerns. Thilak Bhavan. Vijayanagaram .No. Ananthapur . 3-4-142/6. Co-ordinator. Secretary. Street No. 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Name and Address of the Objector B.Gards. Kadapa P.Ismail. Marx Bhavan. Tadipatri Road. No. Panjagutta. 1st floor. Vijayawada .No.Ratnakar. Hyderabad . 6-2-40. Hyderabad .535 003 Dr.Ramanaiah.500 020 Gade Diwakar.560020 B.1-1-60/2.Bhavan. Mydukur. Akhila Bharatheeya Viswakarma Parishat. Pocharam . Lawyer. Flat No. Hyderabad .515 001 L.No. Hyderabad .Thimma Reddy. Kadapa A. Opp.V. Teacher. K. H. Mydekur. Musheerabad. F8 & F9 .T.14/422-3.C.7/137. Ph: 0866-2554324 RAOG Prabhakar. E.9. All India Kisan Mazdoor Sabha(AP).500 027 Kandarapu Murali. Secretary. Vidyut Nagar.500 004 M. Praja Vaidyasala.Venkata Subbaiah. Jana Vignana Vedika (A. Anantapur . H.Viswanath.Mydekuru.Street.500088 Rachamalla Punnamacharyulu.C. Kadapa N. Vidya Nagar. Near Siva Parvathi Theatre. Brahmareddy Praja Hospital.L. Poolbag. Mydukar Mandal. Consumers Guidence Society.No. Upstairs. Nagar Street. Y. Teacher. AB2#205.515 004 B. H. Praja Chaitnya Vedika. People's Monitoring gropu on electricity Regulation.R.P.V. Near Skyline Theatre. Ex-MLA. Jayanagar Colony. Chittoor district Committee. H.3-6-27/2. Vijayanagaram Post.Narendranath. 221. Guthi Mandal.29 Kommidi Narsimha Reddy. Jalavayu Vihar.Donka Road. Wanaparthy .6-2-991. H.56-11-13/1.N.No. Mahabubnagar dist Ch. Mydukur Post.Ananthapur . Dolar Chamber.Diwakar Babu.Member. Amritha Hills. Teacher.520010.12-4-383.658.515401 M.Pension office.).

NTTPS Krishnapatnam TPP (JVP) TOTAL THERMAL MACHKUND PH AP Share TUNGBHADRA PH AP Share USL LSR DONKARAYI SSLM SSLM LCPH NSPH NSRCPH NSLCPH POCHAMPAD PH NIZAMSAGAR PH PABM SINGUR JURALA HES LOWER JURALA Nagarjuna Sagar Tail Pond PULICHINTALA DUMMUGUDEM 381 381 381 380 217 217 217 453 0 57 382 463 191 0 455 0 0 0 4174 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 0 50 89 0 381 381 381 380 217 217 217 453 453 57 382 463 191 0 455 0 0 0 4626 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 79 50 119 0 381 381 381 380 217 217 217 453 453 57 382 463 191 546 455 546 121 0 5840 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 198 50 119 154 381 381 381 380 217 217 217 453 453 57 382 463 191 546 455 546 121 0 5840 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 238 50 119 309 381 381 381 380 217 217 217 453 453 57 382 463 191 546 455 546 121 1456 7296 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 238 50 119 309 381 381 381 380 217 217 217 453 0 57 382 463 0 0 455 0 0 0 3983 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 0 0 0 0 381 381 381 380 217 217 217 453 453 57 382 463 191 0 455 0 0 0 4626 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 0 50 119 0 381 381 381 380 217 217 217 453 453 57 382 463 191 0 455 0 0 0 4626 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 198 50 119 154 381 381 381 380 217 217 217 453 453 57 382 463 191 546 455 546 121 0 5840 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 238 50 119 309 381 381 381 380 217 217 217 453 453 57 382 463 191 546 455 546 121 1456 7296 83 57 238 455 25 762 896 807 89 59 36 10 20 15 232 238 50 119 309 2010-11 APTRANSCO 2011-12 2012-13 2013-14 2009-10 2010-11 APERC 2011-12 2012-13 2013-14 41 .Annexure-D Generation Capacity for Control Period 2009-10 to 2013-14.MW Generating Station/Source 2009-10 APGENCO VTPS I VTPS II VTPS III RTPP I KTPS A KTPS B KTPS C KTPS D KTPS VI RTS B RTPP-II VTPS IV RTPP-III RTPP-IV Kakatiya TPS Stage 1 Kakatiya TPS Stage II IGCC Plant at Dr.

U1U6 NTPC (SR) Ramagundam -U7 NLC TS-II NLC TS-II NPC-MAPS Talcher Stage 2 NTPC.Generating Station/Source 2009-10 SINGAREDDIPALLY POLAVARAM SATTUPALLY TOTAL HYDRO MINI HYDRO&OTHERS Wind Total A.P. Genco Central Generating Stations (CGS) NTPC(SR) Ramagundam.Simhadri SIMHADRI EXPANSION Kaiga (Nuclear) Plant I&II Kaiga (Nuclear) Plant III Total Central Sector Joint Sector Power APGPCL-I APGPCL-I Total Joint Sector IPPs (Independent Power Projects) GVK Spectrum Kondapalli BSES GVK Extension Vemagiri Gowthami Konaseema Krishnapatnam (Ultra Mega) BPL-R Total IPPs NonConventional Sources Bagasee (Cogeneration) 210 202 341 215 213 359 450 432 0 0 2422 210 202 341 215 213 359 450 432 0 291 2713 Stage-I Stage-II 0 0 0 3922 12 2 8110 2010-11 0 0 0 4031 12 2 8671 APTRANSCO 2011-12 79 0 594 4977 12 2 10831 2012-13 198 238 594 5528 12 2 11382 2013-14 198 475 594 5766 12 2 13075 2009-10 0 0 0 3784 12 2 7780 2010-11 0 0 0 3952 12 2 8592 APERC 2011-12 0 0 0 4304 12 2 8945 2012-13 198 238 0 4934 12 2 10788 2013-14 198 475 594 5766 12 2 13075 680 170 114 197 40 398 925 0 128 62 2715 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 0 128 62 2715 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 311 128 62 3025 680 170 114 197 40 398 925 311 128 62 3025 14 39 53 14 39 53 14 39 53 14 39 53 14 39 53 14 39 53 14 39 53 14 39 53 14 39 53 14 39 53 210 202 341 215 213 359 450 432 0 582 3004 210 202 341 215 213 359 450 432 0 582 3004 210 202 341 215 213 359 450 432 310 582 3314 210 202 341 215 171 287 360 345 0 0 2131 210 202 341 215 171 287 360 345 0 0 2131 210 202 341 215 171 287 360 345 0 0 2131 210 202 341 215 171 287 360 345 0 0 2131 210 202 341 215 171 287 360 345 310 582 3023 399 399 42 .

Generating Station/Source 2009-10 Biomass Power Projects Biomass (Cogeneration) Mini Hydel Wind Waste Head (Cogeneration) Municipal /Indstrl waste Total Non conventional MPP .(Mini Power Projects) 1) Sri Vatsa power Ltd 2) M/s LVS Power Ltd Total MPPS OTHERS (Open Access) Third Party Sales Grand Total 462 13973 462 15162 17 35 52 17 35 52 2010-11 APTRANSCO 2011-12 2012-13 2013-14 229 29 274 701 41 132 160 185 204 225 240 160 185 2009-10 2010-11 APERC 2011-12 2012-13 2013-14 229 29 274 701 41 132 204 225 240 17 35 52 17 35 52 17 35 52 17 35 52 391 17 35 52 1041 462 15542 17 35 52 1091 462 15963 17 35 52 1141 462 17877 17 35 52 1291 462 21222 462 17631 462 18203 462 20222 462 13744 43 .

78 10.11 731.55 941.04 1039.47 75.97 1555.36 351.21 962.76 2770.04 1039.27 10.0 Return on Capital Employed.89 61.04 1039.00 61.23 52.00% APTRANSCO 2009-10 5653.84 962.67 1898.00% 12.23 388.+1.90 2728.98 14714.69 45.11 3143.1 4.90 42.56 2621.00% 25.55 11926.2 2.97 1423.27 502.01 11083.40 4892.86 3759.00 2370.49 10647.2 5.00% 25.62 10.23 387.1+3.00% 14.89 3761.50 10.49 10647.41 50.00% 25.64 5657.50 55.00% 538.65 34.50 138.30 2913.66 765. Details 1.12 13676.16 962.00% 14.2 9.2) Opening balance Depreciation during the Year Consumer Contributions(3.08 1037.47 2621.2 3.52 3301.00% 25.16 0.00% 12.00% 75.14 10.1 8.50% 992.16 1039.36 6287.51 16420.01 1279.58 819.00% 1207. Cr.1 7.00% 14.1-3.66 75.1-2.65 64.2-2.65 414.89 9706.64 0.79 5339.1)+(7.00% 14.23 9660.62 1039.2 X 8.94 292.0 7.11 34.90 582.30 7482.27 1039.2-3.63 43.00% 396.10 1039. (percent) *WACC ((7.16 75.0 6.00 2010-11 2011-12 2012-13 2013-14 2009-10 6384.2)/2) Regulated Rate Base(1.11 42.50% 674.06 3761.00% 25.31 3143.31 761.47 611.0 2.00% 12.03 12.12 13676.47 1038.00% 10.0 1.79 3251.26 1705.00% 12.00% 75.50% 406.1.00 55. (6X 9) 44 .67 5653.34 1039.00% 75.84 7482.88 49.97 45.64 250.41 2913.00% 11.13 9072.00% 25.19 3605.50% 1134.66 39.44 312.50% 11.2)) 12.20 12.00% 25. (percent) Cost of Funds (percent) Cost of Debt.2) Opening balance of OCFA Additions during the year Depreciation(2.41 240.0 4.58 3759.00% 14.Annexure-E Regulated Rate Base and Return on Capital Employed.89 988.00% 75.01 11083.1 1.89 49.00% 25.00% 75.78 1039.63 517.04 0 52.2 4. (percent) Equity.43 5392.21 2728.04 12.34 4263.97 6384.0 8.00% 75.1+4+5) Capital Structure Debt.36 351.04 0.11 1828.00% 11.38 12.00% 14.41 2010-11 8282.1 2.53 4520.56 1038.44 7940.00% 11.0 7.98 14714.00% 691.27 3301.00% 14.1+2.29 2593.64 APERC 2011-12 8282.00% 75.49 2012-13 2013-14 9706. (percent) Return on Equity.65 2416.04 1038.2 8.51 3601.88 43.92 4520.51 12.1 X 8.04 1039.69 962.00% 11.00% 25.00% 14.00% 622.00% 14.00% 25.21 616.1 3.2) Opening balance Additions during the year Working Capital O&M (45 days Net O&M Expenses) O&M Stores Inventory Change in Rate Base((1.0 3.00% 75.89 443.0 Assets(1.47 1038. Rs.69 39.00% 304.04 0 50.49 459.04 0.04 611.00% 75.00% 14.

34 263.61 75.Annexure-F Transmission Charge/Rate as Filed by APTRANSCO.00 1134.43 1207.00 6770. S.66 110.55 462.79 72.95 406.38 76.02 347.11) Return on Capital Employed Non Tariff Income Net Revenue Requirement (14+15-16) Tariff & Revenue (Rs/KW/Month) Capacity (MW) EPDCL 19 CPDCL SPDCL NPDCL Others (3rd Party & Open Access) APTRANSCO 2009-10 749.46 3122. Rs.29 18203.54 462.38 25.27 226.04 2712.19 0.26 1538.98 0.10 247.04 25.50 25.26 2474.25 1366.51 68.81 992.08 2815.59 674.51 25.55 15162.00 8171.26 2167.92 20222.07 662.72 75.69 0.91 4400.89 3273.08 3135.06 62.00 2013-14 1585.90 462.00 414.00 45 .51 1199.69 462.50 3950.70 2724.77 113.00 819.50 2803.00 312.17 2134.86 86.07 86.81 372.27 13973.22 76.00 9101. Cr.00 761.72 3823.95 0.60 2332.82 2322.36 84.21 88.04 501.56 178.00 2011-12 1268.00 7908.61 1509.22 889.43 17631.53 68.87 0.00 2012-13 1438.25 450.03 25.20 3008.No 1 2 3 4 5 8 10 11 12 13 14 15 16 17 18 Details Expenditure (2 to 9) Operation & Maintenance Cost O&M Carrying Costs Depreciation Advance Against Depreciation Income Tax Special Appropriation Expenses Capitalized (12 & 13) IDC Capitalized O&M Expenses Capitalised Net Expenditure (1 .26 1044.74 2144.26 2691.01 6223.00 2010-11 965.00 616.25 72.06 102.32 404.92 462.

62 25.00 15963.15 396.00 462.00 2539.14 25.16 281.13 250.00 3043.38 321.87 538.00 2079.Annexure-G Transmission Charge/Rate.26 788.79 2010-11 617.00 462.76 64.62 304.00 5864.69 702.No Details 1 2 3 4 5 8 10 11 12 13 14 15 16 17 18 Expenditure (2 to 9) Operation & Maintenance Costs O&M Carrying Costs Depreciation Advance Against Depreciation Income Tax Special Appropriation Expenses Capitalized (12 & 13) IDC Capitalised O&M Expenses Capitalised Net Expenditure (1 .00 1041.78 64.11 622.62 43.23 40.00 462.00 15541.00 17877.26 1215.03 21222 13744.86 2011-12 745.76 808.00 2260.00 2319.00 391.00 2613.00 462.00 2246.00 1291.27 25.24 459.56 353.00 1091.00 6550.98 423.86 408.68 4.00 1141.47 292.00 46 .00 3118. MW EPDCL CPDCL 19 SPDCL NPDCL 3rd Party Open Access APERC 2009-10 535.00 2936.16 65.00 8869.77 691.26 948.83 387. Commission’s Calculations.21 43. S.00 3295.75 63.00 462.00 6385.84 42.Cr.09 3.00 7402.00 2012.12 1554.26 1405.78 25.24 577.68 502.69 42.85 4.66 25.00 2190.13 47.50 61.00 4439.94 26.89 3.55 26.47 2012-13 2013-14 872.24 40.69 3.11) Return on Capital Employed Non Tariff Income Net Revenue Requirement (14+15-16) Tariff & Revenue (Rs/KW/Month) Capacity.55 508.26 930.21 887.00 3720.00 3203.50 50. Rs.

Acronyms and Abbreviations A&G APERC APGENCO APPCC APSEB APTRANSCO ARR C&AG CAPEX CERC CGM COD CPI Cr DISCOMs ED EHT FA&CCA GIS GoAP GoI IDC IP1 license IPP ISTS kW LOA MW MYT NEDCAP NTI Administration and General Andhra Pradesh Electricity Regulatory Commission Generation Corporation of Andhra Pradesh AP Power Co-ordination Committee Andhra Pradesh State Electricity Board Transmission Corporation of Andhra Pradesh Limited Aggregate Revenue Requirement Comptroller and Audit-General Capital Expenditure Central Electricity Regulatory Commission Chief General Manager Date of Commission Consumer Price Index Crore Distribution Companies Executive Director Extra High Tension Financial Advisor and Chief Controller of Accounts Gas Insulated Substation Government of Andhra Pradesh Government of India Interest During Construction Infrastructure Provider 1 License Independent Power Producer Inter State Transmission System Kilo-watt Letter of Acceptance Mega-watt Multi Year Tariff Non-Conventional Energy Development Corporation of Andhra Pradesh Non-Tariff Income 47 .

P No.NTPC O&M O.O TL&SS UMPP WPI WRPC National Thermal Power Corporation Operating and Maintenance Original Petition Number Open Access Optical Fiber Cable Power Finance Corporation Power Grid Corporation of India Limited Power Purchase Agreement Public Sector Undertaking Repair and Maintenance Regulatory Affairs Cell Revised Estimate Route Kilometers Return on Capital Employed Return on Equity Regulated Rate Base Supervisory Control and Data Acquisition The Southern Regional Load Dispatch Centre Standing Committee in Southern Regional Power Committee State Transmission Utility TRANSCO Office Order Transmission Lines and Substation Ultra Mega Power Project Wholesale Price Index Western Regional Power Committee POWER GRID Power Grid Corporation of India Limited 48 .O. OA OFC PFC PGCIL PPA PSU R&M RAC RE RKM ROCE RoE RRB SCADA SRLDC SRPC STU T.

............. 23 Public notice ................ 30.............. 13 Capital expenditure. 13. 11..... 30. 21 Transmission Tariff .. 9.......... 10........ 17 S SAC.......................................................... 6. 46................... 2........... 12 Energy conservation ....... 26................. 48 Revenue gap...................... 17 P Public hearing .... 4. 16 WRPC ………………………………………………… 14 49 ... 19 SRPC ................................. 45....... 19 D Depreciation . 17 Transmission charge.. 47....10................. 11 Energy audit ...14... 12 G Gas based thermal stations. 6............ 14 L Lift irrigation ............ 21..... 16 T Terminal benefits.............. 13. 15 Loss reduction ................................ 31 Non-tariff income . 13.... 18...................... 12 Energy Conservation Mission ....25............ 1 STU.......... 16.................. 4............ 26 Cost benefit analysis... 44................................. 1.......... 11 Victims of Accidents ................................ 21...... 4.........15............................ 32....... 12 Non conventional energy ..... 12 Energy efficiency........... 14.................. 24......................13............ 18 Aggregate Revenue Requirement... 27................... 8 Bulk Supply. 29...... 1......... 31 H Hydel generation ......... 33.......... 5............... 10.............. 23.............................. 26 Return on Capital.......... 48 True up.... 9............................................. 8.... 14 V Vacant ....................................... 2003 . 12............................. 11........... 47......1............... 31......... 18..22.... 12 B Balance sheet ..... 47 [[ N National Electricity Policy .................... 48 E Electricity Act............. 25 M MYT........... 9.............. 11......... 7... 1................... 48 Annual Report ........ 11 I Incentive/penal mechanism ....... 9.......... 16 O O&M cost................ 3 SCADA ........ 18........ 21 Inter State Transmission System....5.... 8 Annual Statement of Accounts .. 33..... 2 R R&M stores................... 46............ 3 State Transmission Utility ...................... 8 AP Power Co-ordination Committee ...... 45......10............ 35.............. 36 Open access .................. 16...... 13.. 17............................ 23. 18 W wheeling charges ............. 28 OFC network...... 34.....Index A Accidents ........................................... 44......... 1............................... 35 Transmission Losses ...... 32...... 6...................... 23............... 23.............. 17 NEDCAP .. 36.... 17 National Tariff Policy .....22 U Ultra Mega Power Project ....... 14 State Advisory Committee ................ 12 C Capacity addition .. 4...... 17 Employee Cost .. 36 Regulatory Rate Base . 15......................

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