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Smart Summary

Structured Summary of the Legal Opinion (Petition No. 286.TT/2013)

Factual and Procedural Background

This petition was filed by Uttar Pradesh Power Transmission Corporation Limited (UPPTCL). The factual background set out in the opinion explains that UPPTCL is the State Transmission Utility (STU) of Uttar Pradesh and was formed following transfer schemes and notifications which transferred transmission-related functions from the erstwhile Uttar Pradesh State Electricity Board (UPSEB) and Uttar Pradesh Power Corporation Limited (UPPCL) to UPPTCL. UPPTCL's petition was filed in compliance with the Central Electricity Regulatory Commission's (CERC) order dated 14.3.2012 in Petition No. 15.SM/2012. The petition seeks approval of annual transmission charges (YTC) of certain transmission assets for inclusion in the Point of Connection (PoC) transmission charges under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 (2009 Tariff Regulations) and in accordance with the Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) Regulations, 2010 (Sharing Regulations).

The CERC's order of 14.3.2012 identified a list of inter-State and inter-regional lines for possible inclusion in PoC calculations and directed owners/developers or STUs to file tariff petitions for determination of tariff. UPPTCL was directed to file a tariff petition for a set of lines identified on inputs from the Northern Regional Power Committee (NRPC). UPPTCL filed details of multiple transmission lines, claimed additional capital expenditure for one line (Noida Sector 20–BTPS) and provided ARR/line-length/network data as requested by the Commission. Responses were filed by UPPCL, Noida Power Company Limited (NPCL), and Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL).

Legal Issues Presented

  1. Whether the STU-owned transmission lines certified by the Regional Power Committee (RPC) for carrying inter-State power qualify for inclusion in the Central Electricity Regulatory Commission's Point of Connection (PoC) transmission charges computation under the Sharing Regulations.
  2. Whether the owners/developers of such inter-State transmission lines (or STUs where they are owners) must file tariff petitions under the 2009 Tariff Regulations for approval of tariff to enable disbursement of transmission charges under the Sharing Regulations.
  3. How the Yearly Transmission Charges (YTC) for STU-owned lines (not having asset-wise audited capital costs available) should be computed for the PoC mechanism using: (a) ARR approved by the State Commission, and (b) an indicative-cost-based methodology with 400 kV D/C Quad Moose as the base reference.
  4. Which specific transmission lines owned/maintained by UPPTCL should be considered in the instant petition for grant of annual transmission charges, and which lines should be excluded because they are owned/maintained by other entities or already had YTC determined.

Arguments of the Parties

UPPTCL (Petitioner)

  • UPPTCL filed the petition in compliance with CERC directions seeking approval of annual transmission charges of several inter-State transmission lines for inclusion in PoC charges.
  • Submitted details of transmission lines (lengths, bays, voltage levels), capital costs (as provided), and claimed additional capital expenditure of Rs. 3,920 lakh for 220 kV Noida Sector 20–BTPS line under Regulation 9(2)(V) of the 2009 Tariff Regulations for underground cabling in a densely populated area (completed and energized on 18.12.2011).
  • Provided ARR details and voltage-wise line lengths across multiple years as requested by the Commission and supplied certification details from NRPC for fourteen lines (except for some lines as noted).
  • Clarified ownership/maintenance status of some lines (e.g., that Malanpur–Auraiya and Mehgaon–Auraiya lines are maintained by Madhya Pradesh, bays at Auraiya maintained by NTPC; Mandaula–Bawana lines owned by PGCIL), and noted omission of certain lines from the petition because they are not owned by UPPTCL.

Uttar Pradesh Power Corporation Limited (UPPCL) — Respondent No.1

  • Submitted that, under the 2009 Tariff Regulations, the petitioner is required to submit a statutory auditor's certificate regarding the capital cost of the assets for which tariff is to be determined; hence the petitioner should have sought any required relaxations in relation to Regulation 5(2) if necessary.
  • Argued that depreciation calculations must strictly follow the 2009 Tariff Regulations and that Return on Equity should be calculated on a reducing balance method after considering repayment of equity through depreciation, since loans have already been repaid.

Noida Power Company Limited (NPCL) — Respondent No.7

  • Explained its present physical connections and that it is not directly connected to the assets listed in UPPTCL's tariff petition but that any augmentation may change the TTC/ATC of the State.
  • Indicated NPCL would pay proportionate transmission charges to UPPTCL if it uses the assets, provided UPPTCL grants non-discriminatory open access to utilize the inter-State transmission capacity to evacuate power to NPCL's licensed area.

Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) — Respondent No.9

  • Noted that the 220 kV Bharatpur–Agra line was constructed and maintained by RVPNL since 1982 and that the Commission had determined the YTC of that line in Petition No. 213.TT/2013 (order dated 18.3.2015).
  • Requested that UPPTCL be directed to delete the 220 kV Bharatpur–Agra line from its assets in the instant petition.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Commission considered the statutory and regulatory framework and the parties' submissions and proceeded on the following analytical path (as set out in the opinion text):

  1. Regulatory basis: The Commission relied on the definition of "inter-State transmission system" and Section 79(1)(d) of the Act to note that transmission conveying electricity from one State territory to another is regarded as inter-State transmission and thus tariff determination falls within the Central Commission's purview.
  2. Applicability of Sharing Regulations: The Commission invoked para 2.1.3 of the Sharing Regulations (2010) which prescribes that Yearly Transmission Charges (YTC) of the entire network shall be provided by transmission licensees and that YTC for non-ISTS lines certified by RPCs for carrying inter-State power shall be approved by the Appropriate Commission. The procedure for certification (load flow studies via RPC Secretariat in consultation with RLDC using Web Net software) and the requirement that STUs file petitions for asset-wise tariff (if not available) were followed.
  3. Identification and certification: The Commission recorded that NRPC certification was available for fourteen transmission lines previously identified in its 14.3.2012 order. It found that some lines were not owned/maintained by UPPTCL (e.g., lines maintained by Uttarakhand, RVPNL, or owned by PGCIL) and excluded those from the present petition accordingly.
  4. Direction to obtain missing certification: Because NRPC certification was not available for the 220 kV Muzaffarnagar (Nara)–Roorkee line, the petitioner was directed to approach NRPC to obtain the required certification for inclusion in PoC charges and then to file an appropriate application before the Commission after obtaining that certification.
  5. Requirement to file tariff petitions: The Commission reiterated the directive (from its earlier order) that owners/developers or STUs must file tariff petitions in accordance with the 2009 Tariff Regulations so that tariff for those non-ISTS inter-State lines can be approved and disbursement effected under the Sharing Regulations. The Commission specifically directed owners to file appropriate applications for determination of tariff.
  6. Methodology for YTC computation where asset-wise audited capital cost absent: The Commission accepted that asset-level audited capital costs were not available for the petitioned lines. It adopted an indicative-cost-based methodology using the indicative cost of a 400 kV D/C Quad Moose line (taken as the base reference) and derived coefficients (ratios) to estimate costs for other configurations. The Commission used indicative cost tables for multiple financial years (2011-12 through 2014-15) and derived YTC per circuit-km for voltage/configuration classes.
  7. Use of State-approved ARR: For the PoC calculation, the Commission used the ARR (Aggregate Revenue Requirement) approved by the Uttar Pradesh Electricity Regulatory Commission (UPERC) for the relevant years (2011-12 to 2014-15) and apportioned the ARR across line categories using the derived per-circuit-km YTC figures. The Commission stated it did not carry out due diligence on tariff of these STU-owned lines for PoC calculations because the tariff for these lines had already been (or should be) determined by the State Electricity Regulatory Commission; instead it adopted the ARR of the STU as approved by the State Commission.
  8. Computation and selection of lines: On the basis of ownership, NRPC certification, and maintenance responsibility, the Commission determined that eight specific transmission lines with ownership by UPPTCL would be considered in the petition for grant of annual transmission charges. For those eight lines the Commission computed line-wise YTC for the periods 1.7.2011–31.3.2012 (2011-12), 2012-13 and 2013-14 (and provided figures extending to 2014-15 where relevant), showing YTC per ckt-km and aggregated YTC per line.
  9. Adjustment against ARR and final treatment: The Commission indicated that the annual transmission charges allowed for the assets covered in the petition shall be considered in the YTC as per the Sharing Regulations and shall be adjusted against the ARR of the petitioner approved by the State Commission.

Holding and Implications

Holding:

The Commission disposed of Petition No. 286.TT/2013.

Direct consequences and practical implications (as reflected in the opinion):

  • Eight transmission lines owned by UPPTCL were accepted for consideration in this petition for the grant/calculation of annual transmission charges. The opinion lists those eight lines and sets out computed YTC amounts (per line and in aggregate) for the 2011-12 to 2014-15 periods (YTC computations are detailed in the order).
  • The Commission directed that owners/developers of inter-State lines (or STUs, where they own the lines) must file tariff petitions under the 2009 Tariff Regulations for determination of tariff to enable disbursement of transmission charges under the Sharing Regulations; the respondents were directed to ensure such filing where necessary.
  • Lines not owned/maintained by UPPTCL (for example, lines maintained by Uttarakhand, RVPNL, or owned by PGCIL) were excluded from UPPTCL's instant petition. The 220 kV Bharatpur–Agra line need not be included because its YTC had already been determined in a separate proceeding (Petition No. 213.TT/2013).
  • The Commission required UPPTCL to approach NRPC for certification of any line not certified (specifically the 220 kV Muzaffarnagar (Nara)–Roorkee line) before seeking inclusion in the PoC charges and to file a suitable application thereafter.
  • The Commission computed YTC for the relevant lines using UPERC-approved ARR and an indicative-cost methodology where asset-level audited capital cost data were unavailable, and directed that the annual transmission charges allowed shall be adjusted against the ARR approved by the State Commission.
  • No new judicial precedent or case-law principle was announced by the Commission in this order; the order applies the Sharing Regulations and the 2009 Tariff Regulations to the facts and data submitted and disposes the petition accordingly.

Note: This summary is limited strictly to information contained in the provided opinion and does not introduce information or inferences beyond the text of the opinion.

    Uttar Pradesh Power Transmission Corporation Limited v. Uttar Pradesh Power Corporation Limited

    1. In pursuance of the reforms and restructuring, Uttar Pradesh Power Corporation Limited (UPPCL) was formed as a successor entity of the erstwhile Uttar Pradesh State Electricity Board (UPSEB) through the first statutory transfer scheme notified by the State Government of Uttar Pradesh on 14.1.2000 to manage the transmission and distribution business within the state. Subsequently, the State Government notified the second transfer scheme on 12.8.2003 wherein UPPCL retained the transmission, SLDC and Bulk Supply business of the state with itself, while transferring the distribution and retail supply of the state to the four distribution companies. Under this scheme, the role of UPPCL was specified as “Bulk Supply Licensee” as per the licence granted by the Uttar Pradesh Electricity Regulatory Commission (UPERC) and as “State Transmission Utility”. Subsequently, the Uttar Pradesh Power Transmission Corporation Limited (UPPTCL), was incorporated under the Companies Act, 1956. Further, Government of Uttar Pradesh vide notification dated 18.7.2007 notified UPPTCL as STU of Uttar Pradesh. Subsequently, on 23.12.2010, the Government of Uttar Pradesh notified the Uttar Pradesh Electricity Reforms Scheme, 2010 which provided for the transfer of assets and liabilities from UPPCL to UPPTCL. The UPPTCL is entrusted with the business of transmission of electrical energy to various utilities within the state of Uttar Pradesh. The instant petition has been filed by UPPTCL in compliance of the Commission's order dated 14.3.2012 in Petition No. 15.SM/2012 for approval of the annual transmission charges of the transmission assets for inclusion in the Point of Connection charges the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 (hereinafter “2009 Tariff Regulations”)

    2. The Commission vide order dated 14.3.2012 in Petition No. 15.SM/2012 gave the following directions:—

    “2(36) inter-State transmission system includes—

    (i) Any system for the conveyance of electricity by means of main transmission line from the territory of one State to another state;

    (ii) The conveyance of electricity across the territory of any intervening State as well as conveyance within the State which is incidental to such inter-State transmission of electricity;

    (iii) The transmission of electricity within the territory of a State on a system built, owned, operated, maintained or controlled by a Central Transmission Utility”

    4. Under the above provision, the conveyance of electricity from territory of one state to another State is also considered to be a part of inter-State transmission system. In terms of Section 79(1)(d) of the Act, the tariff of these lines are also required to be determined by the Central Commission.

    5. It has come to the notice of the Central Commission that the some of the owners/developers of the inter-State transmission lines of 132 kV and above in North Eastern Region and 220 kV and above in Northern, Eastern, Western and Southern regions as mentioned in the Annexure to this order have approached the Implementing Agency for including their transmission assets in computation of Point of Connection transmission charges and losses under the Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) Regulations, 2010 (hereinafter “Sharing Regulations”).

    6. As a first step towards inclusion of non-ISTS lines in the POC transmission charges, the Commission proposes to include the transmission lines connecting two States, for computation of POC transmission charges and losses. However, for the disbursement of transmission charges, tariff for such assets needs to be approved by the Commission in accordance with the provisions of Sharing Regulations. Accordingly, we direct the owners of these inter-State lines to file appropriate application before the Commission for determination of tariff for facilitating disbursement.

    7. We direct the respondents to ensure that the tariff petition for determination of tariff is filed by the developers/owners of the transmission line or by State Transmission Utilities where the transmission lines are owned by them in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009, by 20.4.2012”

    3. Eleven regional transmission lines (11) and three (3) inter-regional lines were identified by the Commission in its order dated 14.3.2012 in Petition No. 15.SM/2012 for inclusion in the PoC transmission charges computation. These lines were identified based on the inputs provided by Northern Regional Power Committee (NRPC) and UPPTCL was directed to file tariff petition for the following transmission lines:—

    Sl. No. Name of Line Connecting States 1 400 kV line from Roorkee-Muzaffarnagar Uttarakhand-Uttar Pradesh 2 220 kV line from Khodri-Saharanpur-1 Line Uttarakhand-Uttar Pradesh 3 220 kV line from Khodri-Saharanpur-2 Line Uttarakhand-Uttar Pradesh 4 400 kV line from Kashipur-Moradabad Line Uttarakhand-Uttar Pradesh 5 220 kV line from Pantnagar-BareillyLine Uttarakhand-Uttar Pradesh 6 220 kV line from Patarganj-Sahibabad Delhi-Uttar Pradesh 7 220 kV line from Gazipur Line-Noida Sec 62 Delhi-Uttar Pradesh 8 220 kV line from Bharatpur-Agra Line Rajasthan-Uttar Pradesh 9 220 kV line from Noida Gazipur-BTPS Line Uttar Pradesh-Delhi 10 400 kV line from Mandaula-Bawana 1 Uttar Pradesh-Delhi 11 400 kV line from Mandaula-Bawana 2 Uttar Pradesh-Delhi 12. 220 kV line from Pusuali-Sahupuri Line Power Grid(ER) - Uttar Pradesh 13. 220 kV line from Malanpur-Auraiya Line Madhya Pradesh - Uttar Pradesh 14 220 kV line from Meghgaon-Auraiya Line Madhya Pradesh - Uttar Pradesh

    4. The petitioner has submitted the details of instant transmission lines like basic features and description of lines i.e line-length, details of bays, voltage level etc, covered in this petition are as follows:—

    Sl. No. Name of the line Type of line S/C or D/C Voltage (kV) No. of bay maintained by UPPTCL Line Length (ckt-km) Remarks (Ownership with UPPTCL) 1 400 kV Roorkee-Muzaffarnagar AC S/C 400 1 70.80* ---- 2 220 kV Khodri-Saharanpur-1 Line AC S/C 220 1 83.33 83.33 km 3 220 kV Khodri-Saharanpur-2 Line AC S/C 220 1 81.05 81.05 km 4 400 kV Moradabad-Kashipur Line AC S/C 400 1 110.885* ----- 5 220 kV Bareilly-Pantnagar Line AC S/C 220 1 5.501 5.501 km 6 220 kV Sahibabad-Patarganj Line AC D/C 220 2 7.002 7.002 km 7 220 kV Noida Sec 62-Gazipur line AC S/C 220 1 3.00 3.00 km 8 220 kV Bharatpur-Agra Line AC S/C 220 1 49.00** ----- 9 220 kV Noida Sec 20-Gazipur Line AC S/C 220 — 4.354 4.354 km 10 220 kV Noida Sec 20-BTPS Line AC S/C 220 1 13.303 13.303 km 11 220 kV Sahupuri-Pasauli Line AC S/C 220 1 72 36.7 km

    5. The petitioner has also claimed additional capital expenditure of Rs. 3920 lakh under Regulation 9(2)(V) of the 2009 Tariff Regulations separately in respect of 220 kV Noida Sector 20-BTPS line towards underground cabling in densely populated commercial area of Noida. UPPTCL has submitted that work was completed in 2011-12 and the line was energized on 18.12.2011

    6. Replies have been filed by Uttar Pradesh Power Corporation Limited (UPPCL), Respondent No. 1, vide affidavit dated 22.3.2014, Noida Power Company Limited (NPCL), Respondent No. 7, vide affidavit dated 10.7.2015 and Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL), Respondent No. 9, vide affidavit dated 16.7.2015

    7. UPPCL has submitted that as per the 2009 Tariff Regulations the petitioner is required to submit the certificate of the statutory Auditor in respect of the capital cost of the asset for which transmission tariff is to be determined. Hence, the petitioner should have asked for relaxation in respect of Regulation 5(2) of the 2009 Tariff Regulations. UPPCL has further submitted that calculation of depreciation may be allowed strictly as per 2009 Tariff regulations and Return on Equity should have been calculated on the method of reducing balance after considering repayment of equity through depreciation since the loans have already been paid.

    8. NPCL has submitted that it is presently receiving power at 132 kV Surajpur substation and at 2 No.s of 220 kV bays at 400 kV Greater Noida (Pali) Sub-station of the petitioner. NPCL as of now is not directly connected with any of the assets mentioned by the petitioner in tariff petition but any augmentation in the instant assets may change the availability of total transfer capacity (TTC) and Available Transfer Capacity (ATC) of the State. NPCL, if used the above mentioned assets, will pay proportionate transmission charges to UPPTCL provided that UPPTCL shall grant non-discriminatory open access as per the requirement of the NPCL to utilize assets on Inter-State transmission capacity to evacute power to its licensed area.

    9. RRVPNL has submitted that UPPTCL has claimed the YTC of 220 kV Bharatpur-Agra line, however the same was constructed by RVPNL in 1982 and since then its complete maintenance is also bring carried out by RVPNL. The Commission vide order dated 18.3.2015 in Petition No. 213.TT/2013 determine the YTC of the above mentioned line. Accordingly, the petitioner may be directed to delete the 220 kV Bharatpur-Agra transmission line from its assets.

    10. The petitioner, vide affidavit dated 29.12.2015 has submitted that 220 kV Muzaffarnagar (Nara)-Roorkee line is natural inter-state line, however the same was not included in the order dated 14.3.2012 in Petition No. 15.SM/2012. The petitioner requested to allow tariff for the said line as it is a active line and involved in transmission of energy between Uttar Pradesh and Uttarakhand.

    11. We have considered the submission of the petitioner and respondents. In the instant petition the STU lines used for carrying inter-State power has been considered for inclusion in the PoC charges in accordance with para 2.1.3 of the Annexure-I to Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) Regulations, 2010, which is extracted hereinafter:—

    “The line-wise YTC of the entire network shall be provided by the Transmission Licensees. In case a line is likely to be commissioned during the Application Period, the data in respect of the same, along with the anticipated COD will be provided by the CTU/Transmission Licensee to the Implementing Agency.

    For the determination of the transmission charges based on Hybrid Methodology applicable in the next Application Period, all the above data shall be provided to the Implementing Agency as per the timelines specified by the Implementing Agency.

    Overall charges to be allocated among nodes shall be computed by adopting the YTC of transmission assets of the ISTS licensees, deemed ISTS licensees and owners of the non-ISTS lines which have been certified by the respective Regional Power Committee (RPC) for carrying inter-State power. The Yearly Transmission Charge, computed for assets at each voltage level and conductor configuration in accordance with the provisions of these regulations shall be calculated for each ISTS transmission licensee based on indicative cost provided by the Central Transmission Utility for different voltage levels and conductor configuration. The YTC for the RPC certified non-ISTS lines which carry inter-State power shall be approved by the Appropriate Commission.

    In case line-wise tariff for the RPC certified non-ISTS lines has not been specified by the Appropriate Commission, the tariff as computed for the relevant voltage level and conductor configuration shall be used. The methodology for computation of tariff of individual asset shall be similar to the methodology adopted for the ISTS transmission licensees and shall be based on ARR of the STU as approved by the respective State Commission.

    Certification of non-ISTS lines carrying inter-State power, which were not approved by the RPCs on the date of notification of the Central Electricity Regulatory Commission (Sharing of Transmission Charges and Losses) Regulations, 2009, shall be done on the basis of load flow studies. For this purpose, STU shall put up proposal to the respective RPC Secretariat for approval. RPC Secretariat, in consultation with RLDC, using Web Net Software would examine the proposal. The results of the load flow studies and participation factor indicating flow of Inter State power on these lines shall be used to compute the percentage of usage of these lines as inter State transmission. The software in the considered scenario will give percentage of usage of these lines by home State and other than home State. For testing the usage, tariff of similar ISTS line may be used. The tariff of the line will also be allocated by software to the home State and other than home State. Based on percentage usage of ISTS in base case, RPC will approve whether the particular State line is being used as ISTS or not. Concerned STU will submit asset-wise tariff. If asset wise tariff is not available, STU will file petition before the Commission for approval of tariff of such lines. The tariff in respect of these lines shall be computed based on Approved ARR and it shall be allocated to lines of different voltage levels and configurations on the basis of methodology which is being done for ISTS lines.”

    12. The certificate of NRPC is available in terms of the above said provision in respect of fourteen (14) transmission lines which were included in the Commission's order dated 14.3.2012 in Petition No. 15.SM/2012. The Commission vide letter dated 2.1.2014 sought the reason from the petitioner for not including the Malanpur-Auraiya 220 kV line (MP-UP), Mehgaon-Auraiya 220 kV line and Mandaula-Bawana 400 kV Line 1 and 2 in the instant tariff petition. In response, the petitioner vide affidavit dated 7.2.2014 clarified that Malanpur-Auraiya 220 line and Mehgaon-Auraiya 220 kV line both between Madhya Pradesh and Uttar Pradesh are maintained by Madhya Pradesh. The bays of these lines at Auraiya is maintained by NTPC. The petitioner has further submitted that Mandaula-Bawana 400 kV line 1 & 2 between Uttar Pradesh and Delhi are owned by PGCIL. The petitioner has further submitted that these assets are not included in the present petition as they are not owned by it. Since the NRPC certification is not available for 220 kV Muzaffarnagar (Nara)-Roorkee line, we direct the petitioner to approach NRPC for the required certification of this line for inclusion in the PoC Charges and file a suitable application before the Commission after obtaining the certification from NRPC.

    13. The 400 kV Roorkee-Muzaffarnagar and 400 kV line from Kashipur-Moradabad Line are maintained by Uttarakhand, hence they are not considered in the instant tariff petition. 220 kV Bharatpur-Agra line is maintained by Rajasthan and the Commission already has given the YTC of this line in Petition No. 213.TT/2013, hence this line has also not been considered in the instant tariff petition.

    14. Accordingly, following eight transmission lines are being considered in this petition for grant of annual transmission charges whose ownership is with UPPTCL:—

    Sl. No. Name of the line Type of line S/C or D/C Voltage (kV) No. of Bay maintained by UPPTCL Line Length (ckt-km) Remarks (Ownership with UPPTCL) 1 220 kV Khodri-Saharanpur-1 Line AC S/C 220 1 83.33 83.33 km 2 220 kV Khodri-Saharanpur-2 Line AC S/C 220 1 81.05 81.05 km 3 220 kV Bareilly-Pantnagar Line AC S/C 220 1 5.501 5.501 km 4 220 kV Sahibabad-Patarganj Line AC D/C 220 2 7.002 7.002 km 5 220 kV Noida Sec 62-Gazipur line AC S/C 220 1 3.00 3.00 km 6 220 kV Noida Sec 20-Gazipur Line AC S/C 220 — 4.354 4.354 km 7 220 kV Noida Sec 20-BTPS Line AC S/C 220 1 13.303 13.303 km 8 220 kV Sahupuri-Pasauli Line AC S/C 220 1 72 36.7 km

    Further, since the Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) Regulations, 2010 came into force with effect from 1st July, 2011, Yearly Transmission Charges (YTC) for these eight transmission lines have been calculated for the year 2011-12 (1.7.2011 to 31.3.2012), 2012-13 and 2013-14 and 2014-15.

    Capital cost

    15. The petitioner has submitted that the instant transmission lines have been constructed at different time. For considering cost of these lines, proportionate cost of line is taken as per portion of line length considered. The capital cost of the transmission lines considered under the instant petition, as given by the petitioner, is as follows:—

    (Rs. in lakh)

    S. No. Transmission Line Capital cost of line Capital cost of bay 1. 220 kV Khodri-Saharanpur-1 Line 674.99 050.00 2. 220 kV Khodri-Saharanpur-2 Line 689.77 058.00 3. 220 kV Bareilly-Pantnagar Line 088.02 146.00 4. 220 kV Sahibabad-Patarganj Line 075.00 124.00 5. 220 kV Noida Sec 62-Gazipur line 030.09 180.00 6. 220 kV Noida Sec 20-Gazipur Line 043.67 NA 7. 220 kV Noida Sec 20-BTPS Line 4029.36 110.00 8. 220 kV Sahupuri-Pasauli Line 092.78 021.64

    16. The petitioner was directed vide letter dated 19.8.2014 to submit the capital cost of the assets certified by an Auditor, the funding pattern of the assets, repayment schedule and the interest rate of loans, cumulative depreciation against the assets as on 31.3.2012, details of the ARR approved by the State Commission for the 2009-14 period and details of the O&M expenses.

    17. The matter was heard on 4.6.2015 and the petitioner was directed to submit the ARR and network configurations in the prescribed pro-forma and details of ARR approved by the SERC for 2009-14 separately for the respective years containing total amount approved for the respective years. In response, the petitioner vide affidavit dated 26.6.2015, has submitted that the above information has already been submitted vide affidavit dated 5.9.2014

    18. The petitioner vide affidavit dated 26.6.2015, has submitted that the ARR and the O&M norms for the 2009-14 tariff periods have been approved by the State Commission. The details of the approved ARR furnished by the petitioner are given hereunder:—

    Sl. No YEAR Rs. in lakh 1 2009-10 68051 2 2010-11 91418 3 2011-12 110545 4 2012-13 124138 5 2013-14 148462 6 2014-15 163382

    19. Voltage-wise length of line in ckt. kms as submitted vide affidavit dated 18.9.2013 are as follows:—

    Sl. No Line Type 2010-11 2011-12 2012-13 2013-14 1 765 kV D/C 765 kV S/C 409 410.93 410.93 410.93 2 400 kV D/C TM 400 kV D/C quad 400 kV S/C 4275 4275 4259.415 4777.727 3 220 kV D/C 220 kV S/C 7432 7690 8118 8183.207 4 132 kV D/C 132 kV S/C 13542 13844 13941 14231.673

    20. The petitioner has earlier submitted combined length for 765 kV D/C& S/C, 400 kV D/C & S/C, 220 kV D/C & S/C and 132 kV D/C & S/C lines. The separate length for above voltage class has been sought by the Commission, in response the petitioner vide affidavit dated 18.1.2016 submitted that the segregated voltage wise length of EHV lines pertains to the petitioner. The modified network details is as follows:—

    Sl. No Line Type 2010-11 2011-12 2012-13 2013-14 2014-15 1 765 kV D/C — — — — — 2 765 kV S/C 409.00 406.38 406.38 406.38 406.38 3 400 kV D/C 1.50 1.50 1.50 519.81 591.51 4 400 kV D/C quad — — — — — 5 400 kV S/C 3964.98 3964.98 3964.98 3964.98 3967.57 6 220 kV D/C 2213.11 2344.97 2358.43 2379.28 2769.89 7 220 kV S/C 5210.81 5545.38 5620.40 5662.98 5956.58 8 132 kV D/C 3135.32 3170.13 3305.59 3398.46 3726.71 9 132 kV S/C 9470.49 9867.18 10263.82 10546.37 11257.37

    Procedure for calculating YTC for the transmission lines

    21. The petitioner has submitted that the capital costs of the instant transmission lines are not available. Hence, the indicative cost of 400 kV D/C Quad Moose transmission line has been taken as base and indicative cost of lines with configurations other than 400 kV D/C Quad Moose have been made expressed with reference to indicative cost of 400 kV D/C Quad Moose (i.e by dividing indicative cost of the 400 kV D/C Quad moose line by the indicative cost of line of other configuration).

    22. The yearly break-up of indicative cost of various configurations owned and operated by PGCIL is as hereunder:—

    For 2011-12

    Type Cost (Rs. in lakh) Cost (Rs. in lakh/ckt.) Co-efficient 765 KV D/C 315.25 157.625 (A) a = D/A 0.64 765 KV S/C 159.25 159.25 (B) b = D/B 0.63 400 KV D/C 109.50 54.75 (C) c = D/C 1.84 400 KV D/C Quad Moose 202.00 101 (D) d = D/D 1.00 400 KV S/C 74.25 74.25 (E) e = D/E 1.36 220 KV D/C 59.50 29.75 (F) f = D/F 3.39 220 KV S/C 37.00 37.00 (G) g = D/G 2.73 132 KV D/C 46.75 23.375 (H) h = D/H 4.32 132 KV S/C 28.50 28.50 (I) i = D/I 3.54

    For 2012-13

    Type Cost (Rs. in lakh) Cost (Rs. in lakh/ckt.) Co-efficient 765 KV D/C 357.00 178.5 (A) a = D/A 0.63 765 KV S/C 179.20 179.20 (B) b = D/B 0.63 400 KV D/C 122.60 61.3 (C) c = D/C 1.83 400 KV D/C Quad. Moose 224.80 112.4 (D) d = D/D 1.00 400 KV S/C 84.20 84.20 (E) e = D/E 1.33 220 KV D/C 67.80 33.9 (F) f = D/F 3.32 220 KV S/C 41.40 41.40 (G) g = D/G 2.71 132 KV D/C 53.00 26.5 (H) h = D/H 4.24 132 KV S/C 32.40 32.40 (I) i = D/I 3.47

    For F/Y 2013-14

    Type Cost (Rs. in lakh) Cost (Rs. in lakh/circuit) Co-efficient 765 kV D/C 412.00 206 (A) a = D/A 0.56 765 kV S/C 179.80 179.80 (B) b = D/B 0.65 400 kV D/C Twin Moose 130.40 65.2 (C) c = D/C 1.78 400 kV D/C Quad Moose 232.60 116.3 (D) d = D/D 1.00 400 kV S/C Twin Moose 87.00 87.00 (E) e = D/E 1.34 220 kV D/C 61.40 30.7 (F) f = D/F 3.79 220 kV S/C 37.80 37.80 (G) g = D/G 3.08 132 kV D/C 48.40 24.2 (F) h = D/H 4.81 132 kV S/C 30.00 30.00 (G) i = D/I 3.88

    For F/Y 2014-15

    Type Cost (Rs. in lakh) Cost (Rs. in lakh/circuit) Co-efficient 765 kV D/C 450 225 (A) a = D/A 0.53 765 kV S/C 180 180.00 (B) b = D/B 0.67 400 kV D/C Twin Moose 135 67.5 (C) c = D/C 1.78 400 kV D/C Quad Moose 240 120.00 (D) d = D/D 1.00 400 kV S/C Twin Moose 88 88.00 (E) e = D/E 1.36 220 kV D/C 56 28 (F) f = D/F 4.29 220 kV S/C 35 35.00 (G) g = D/G 3.43 132 kV D/C 44 22 (H) h = D/H 5.45 132 kV S/C 28 28.00 (I) i = D/I 4.29

    23. After getting ratio with respect to 400 kV D/C Quad Moose, YTC per ckt. Km of 400 kV D/C Quad Moose transmission line has been calculated as follows:—

    DC-Double Circuit, SC-Single Circuit, QM-Quad Moose, TM-Twin Moose

    24. We have not carried out any due diligence of the tariff of these lines (for consideration of PoC calculations) as the tariff of the lines owned by STU has already been determined by the State Electricity Regulatory Commission. We have considered the ARR of the STU as approved by the State Electricity Regulatory Commission and have adopted the methodology as discussed in para 21 to 23 of this order for the purpose of calculation of PoC charges and apportionment of transmission lines and charges to the transmission system of different configurations of the STU. This methodology has been adopted uniformly for the lines owned by other STUs used for inter-State transmission of power duly certified by respective RPCs for the purpose of inclusion in the PoC mechanism.

    25. Further, since the Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010 came into force with effect from 1 July, 2011, we have considered ARR of the period 2011-12, 2012-13 and 2013-14, accordingly Yearly Transmission Charges (YTC) for the transmission lines have been calculated for the year 2011-12 (1.7.2011 to 31.3.2012), 2012-13 and 2013-14. Based on the ARR and line length provided by the petitioner i.e line length in ckt. km as on Mach 2009, March 2010, March 2011, March 2012, March 2013 and March 2014 and ARR approved by UPSERC for the 2009-10 to 2013-14 and PoC cost data for the corresponding year, YTC for the assets for 2011-12, FY 2012-13 and FY 2013-14 has been calculated as under:—

    2014-15

    Total ARR approved by the UPERC for 2014-15 is Rs. 16,33,82,00,000

    (in Rs.)

    S. No Asset For entire system Line length (ckt km) YTC per ckt km YTC 1 765 kV S/C 406.38 2,567,435.60 1,043,354,478.57 2 400 kV D/C TM 591.51 962,788.35 569,498,936.00 3 400 kV S/C 3967.57 1,255,190.74 4,980,057,112.80 4 220 kV D/C 2769.89 399,378.87 1,106,235,540.71 5 220 kV S/C 5956.58 499,223.59 2,973,665,243.50 6 132 kV D/C 3726.71 313,797.98 1,169,432,967.97 7 132 kV S/C 11257.37 399,378.87 4,495,955,719.86 Total 16,338,200,000.00

    2013-14

    Total ARR approved by the UPERC for 2013-14 is Rs. 14,84,62,00,000

    (Rs. in Rs.)

    S. No Asset For entire system Line length (ckt km) YTC per ckt km YTC 1 765 kV S/C 406.38 2,346,368.30 953,517,149.77 2 400 kV D/C TM 519.81 850,852.13 442,281,446.24 3 400 kV S/C 3964.98 1,135,339.50 4,501,598,410.78 4 220 kV D/C 2379.28 400,631.29 953,214,027.17 5 220 kV S/C 5662.98 493,285.44 2,793,465,569.34 6 132 kV D/C 3398.46 315,807.08 1,073,257,726.77 7 132 kV S/C 10546.37 391,496.38 4,128,865,669.93 Total 14,846,200,000.00

    2012-13

    Total ARR approved by the UPERC for 2012-13 is Rs. 12,41,38,00,000

    (in Rs.)

    S. No Asset For entire system Line length (ckt km) YTC per ckt km YTC 1 765 kV S/C 406.38 1,952,136.59 793,309,267.32 2 400 kV D/C TM 1.50 667,778.87 1,001,668.30 3 400 kV S/C 3964.98 917,242.75 3,636,849,160.07 4 220 kV D/C 2358.43 369,293.70 870,953,332.35 5 220 kV S/C 5620.40 450,995.84 2,534,777,028.10 6 132 kV D/C 3305.59 288,680.91 954,260,739.53 7 132 kV S/C 10263.82 352,953.27 3,622,648,804.34 Total 12,413,800,000.00

    2011-12

    Total ARR approved by the UPERC for 2011-12 is Rs. 11,05,45,00,000

    (in Rs.)

    S. No Asset For entire system Line length (ckt km) YTC per ckt km YTC 1 765 kV S/C 406.38 1,776,577.799 721,965686 2 400 kV D/C TM 1.50 611,746.1289 917,619.1934 3 400 kV S/C 3964.98 829,628.3119 3,289,459,664 4 220 kV D/C 2344.97 332,409.997 779,491470.7 5 220 kV S/C 5545.38 413,417.4753 2,292,556999 6 132 kV D/C 3170.13 261,179.2834 827,972281.6 7 132 kV S/C 9867.18 318,443.1904 3,142,136280 Total 11,054,500,000.00

    YTC of the eight (8) transmission lines

    26. YTC per ckt. km, total ARR for the transmission system in Karnataka is matching with the ARR approved by the Uttar Pradesh Electricity Regulatory Commission and it is as follows:—

    (in Rs.)

    Voltage level 2011-12 2012-13 2013-14 2014-15 220 kV (S/C) 413417.48 450995.84 493285.44 499223.59 220 kV (D/C) 332410.00 369293.70 400631.29 399378.87

    27. YTC of the eight (8) transmission lines calculated on the methodology discussed above is given below:—

    (in Rs.)

    Sl. No Asset For entire system (UPPTCL) Line length (ckt. km) YTC 2011-12 YTC 2012-13 YTC 2013-14 YTC 2014-15 1 220 kV SC Khodri-Saharanpur-1 Line 83.33 34450078.21 37581483.48 41105475.54 41600301.64 2 220 kV SC Khodri-Saharanpur-2 Line 81.05 33507486.37 36553212.96 39980784.74 40462071.86 3 220 kV SC Bareilly-Pantnagar Line 5.501 2274209.531 2480928.125 2713563.194 2746228.96 4 220 kV DC Sahibabad-Patarganj Line 7.002 2327534.82 2585794.462 2805220.326 2796450.85 5 220 kV SC Noida Sec 62-Gazipur line 3 1240252.426 1352987.525 1479856.314 1497670.76 6 220 kV SC Noida Sec 20-Gazipur Line 4.354 1800019.687 1963635.894 2147764.797 2173619.50 7 220 kV SC Noida Sec 20-BTPS Line 13.303 5499692.674 5999597.681 6562176.181 6641171.39 8 220 kV SC Sahupuri-Pasauli Line 36.70 15172421.34 16551547.39 18103575.57 18321505.70 Total 234.24 96271695.07 105069187.50 114898416.66 116239020.66

    28. The Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) Regulations, 2010 came into force from 1 July, 2011. Therefore, YTC for the lines have been calculated from 1.7.2011 to 31.3.2012, 2012-13 and 2013-14.

    29. The annual transmission charges allowed for the assets covered in the instant petition shall be considered in the YTC as per the Sharing of Inter-State Transmission Charges and Losses Regulations, 2010 and shall be adjusted against the ARR of the petitioner approved by the State Commission.

    30. This order disposes of Petition No. 286.TT/2013.

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    Comments

    Uttar Pradesh Power Transmission Corporation Limited v. Uttar Pradesh Power Corporation Limited
    (Feb 15, 2016)