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Case Number

Petition No. 142/MP/2017

Disposition

Attorney(S)

Ms. Swapna Seshadri, Advocate, NHPTL
Shri Aditya P. Das, WRLDC
Shri V. Srinivas, PGCIL
Shri G. Chakraborthy, POSOCO
Shri Gaurav Verma, POSOCO
Shri Ashok Rajan, POSOCO

Judges

P.K. Pujari
Chairperson
A.K. Singhal, Member
A.S. Bakshi, Member
M.K. Iyer, Member

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Smart Summary

Structured Summary — Central Electricity Regulatory Commission, Petition No. 142/MP/2017 (Order dated 4 April 2018)

Factual and Procedural Background

The Petitioner, National High Power Test Laboratory Pvt. Ltd. (NHPTL), a joint venture involving NTPC, NHPC, PGCIL, DVC and CPRI, sought connectivity for its test laboratory at the ISTS Bina sub-station (765 kV and 400 kV bus) to enable bay charging initially at no-load and later on-load for short-circuit testing. The Petitioner sought approval of a Connection Agreement under the CERC Connectivity Regulations.

In an earlier order dated 16.5.2016 in Petition No. 9/MP/2016 the Commission decided that although the Petitioner would not draw MW for commercial consumption, it would be levied Reliability Support Charges (RSC) corresponding to a notional 10,000 MVA at a power factor of 0.005 (i.e., equivalent to 50 MW) under the Sharing Regulations. The Commission directed POSOCO to compile the pattern of short-circuit drawal (MVA) for six months from the date of the first commercial test and noted that charges recovered from NHPTL were to be reimbursed to long-term and medium-term open access customers in the next month bill.

Pursuant to the 16.5.2016 order, a Connection Agreement dated 25.5.2016 was executed between the Petitioner and CTU. The Agreement stated it would be effective from the date of commercial operation, but CTU would permit the Petitioner to conduct short-circuit tests required for trial testing/commissioning.

CTU (Power Grid Corporation of India Limited) began raising PoC bills to the Petitioner from July 2016 onwards for RSC. The Petitioner disputed billing prior to the first commercial test and filed the present petition challenging CTU and POSOCO's levy of RSC before commercial operation/first commercial test. Notices were issued; CTU and POSOCO/WRLDC filed replies and the matter was heard before the Commission.

Legal Issues Presented

Whether reliability support charges should be levied on the Petitioner before the 1st commercial test (i.e., before 1.7.2017)?
Whether reliability support charges should be levied on the basis of the 333.3 MVA drawal permitted by PGCIL (CTU) or on the basis of the maximum drawal of 500 MVA as allowed in the Commission's order dated 16.5.2016 in Petition No. 9/MP/2016?

Arguments of the Parties

Petitioner's Arguments

RSC should be levied only from the date when the Petitioner commences commercial operation (date of 1st commercial test) in accordance with the order dated 16.5.2016 and the Connection Agreement which is effective from commercial operation.
CTU and POSOCO have wrongfully levied RSC from July 2016 despite the Petitioner not having commenced commercial operations.
The RSC is for the support drawn from the grid during testing; if such support is not taken for commercial business, it is unreasonable to levy RSC.
CTU and POSOCO would be unjustly enriched if RSC is charged in deviation of the 16.5.2016 order.
The 50 MW equivalence used in the 16.5.2016 order is based on a theoretical maximum drawal (10,000 MVA at 0.005 pf = 50 MW), but as of the relevant dates the Petitioner had permission only up to 333.3 MVA for 765 kV (and had conducted tests up to 315 MVA at 400 kV). Therefore, levying RSC on the basis of the maximum 10,000 MVA from 1.7.2016 is unfair.
The Petitioner offered to pay RSC computed on the basis of the 500 MVA, 765 kV rating with effect from 1.7.2017 (the date it says commercial operation at 400 kV began).
The Petitioner requested WRLDC be directed to (i) submit the six-month MVA drawal report and (ii) review monthly RSC charges based on actual MVA drawals and pro rata days of utilization, because test shots are of very short duration (250 ms) and tests occur on few days of a month.

CTU (Power Grid Corporation of India Limited) — Respondent Arguments

RSC has been determined in accordance with Regulation 10(1)(a),(b) and (c) of the Sharing Regulations and RTAs (Regional Transmission Accounts) were issued and displayed on the website.
Billing is governed by Regulation 11 of the Sharing Regulations; RTAs prepared by RPCs form the basis for billing and CTU raises PoC bills based on RTA data.
CTU's role in RTA determination is limited to formalizing LTA/MTOA granted by CTU and submitting details to the implementing agency; CTU does not have locus to amend RTAs based on Petitioner requests.
CTU cannot revise or revoke PoC bills issued under Bill-1 because those bills conform to the Sharing Regulations and are based on RTA data provided by RPCs.

WRLDC / POSOCO — Respondent Arguments

WRLDC/POSOCO facilitated numerous short-circuit tests for the Petitioner starting 27.6.2016 as per the Commission-approved procedure; prior to 1.7.2017 WRLDC facilitated 32 tests, and overall tests prior to 1.7.2017 were carried out with necessary system studies and coordination.
The coordination efforts and operational requirements to ensure grid security while facilitating tests are the same whether testing occurs before or after the 1st commercial test; therefore, the Petitioner is dependent on the grid and liable for RSC.
Each short-circuit test imposes fault events on the system (even if controlled) which require WRLDC to compute fault levels and be on high alert because tests are adjacent to inter-regional boundary substations and could impact inter-regional transfers.
The Petitioner has been extended several privileges (e.g., exemption in transmission charge, relaxation in monthly RLDC charges, relaxed application procedure, rescheduling of planned outages to accommodate tests), reflecting operational accommodation by system operators.
POSOCO compiled the six-month pattern of drawal MVA from 1.7.2017 onwards and reported maximum, minimum and average drawals for the tests in that period; WRLDC submitted that based on the nature of tests and grid dependence, directions may be given to NHPTL to honour RSC bills in line with the 16.5.2016 order.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Commission identified two primary issues for consideration: (a) whether RSC should be levied before the 1st commercial test (before 1.7.2017) and (b) whether RSC should be calculated on the basis of 333.3 MVA permitted by CTU or the maximum of 500 MVA noted in the 16.5.2016 order.

For Issue No.1, the Commission examined three documentary anchors from the record:

The Commission's own order dated 16.5.2016 (Petition No. 9/MP/2016) which recorded that although the Petitioner would not draw any MW from the grid, by virtue of being connected it would draw reliability and thus be liable to RSC calculated on the basis of 10,000 MVA at 0.005 pf (i.e., 50 MW equivalence) for the entire month.
The Connection Agreement dated 25.5.2016 that the parties signed, which made the Agreement effective from the date of commercial operation but expressly permitted CTU to allow short-circuit tests required for trial testing/commissioning prior to commercial operation.
WRLDC/POSOCO's submissions and evidence that they had facilitated and coordinated a series of short-circuit tests from 27.6.2016 prior to 1.7.2017, including system studies, computation of fault levels, and multiple test windows, indicating operational dependence of the tests on the grid prior to the 1st commercial test.

The Commission observed that the Connection Agreement did not define "date of commercial operation" but that commercial operation can be understood to occur once the entity is ready to start commercial activity. The Commission also noted WRLDC's evidence that NHPTL had drawn support from the grid for trial testing/commissioning prior to 1.7.2017.

On balancing these factors, the Commission concluded:

Full RSC should be levied from the date of the 1st commercial test, i.e., 1.7.2017.
Because WRLDC had facilitated drawal/support from the grid during trial testing/commissioning prior to the 1st commercial test, it is reasonable to levy a reduced RSC (quantified as 5% of the Reliability Charge rate applied to 50 MW) for the period 27.6.2016 to 30.6.2017, with pro-rata application for parts of a month. The formula stated by the Commission for that period was [5% Reliability Charge rate x 50 MW] per month (pro-rata as needed).

For Issue No.2, the Commission reviewed:

POSOCO's six-month PMU-based compilation of drawal MVA from 1.7.2017 to 11.1.2018 showing 29 approved short-circuit tests with recorded maximum 2180 MVA, minimum 278 MVA and average 939 MVA.
The Petitioner's submission that CTU had permitted testing up to 333.3 MVA (765 kV) as of 10.10.2017 and that testing up to 315 MVA (400 kV) had been conducted; but the Petitioner had not placed any document on record to prove that it had sought permission to test 500 MVA at 765 kV.

The Commission concluded that:

Given the PMU data and the fact that with enhancement to 500 MVA at 765 kV drawals would increase, the maximum demand figure of 10,000 MVA used in the 16.5.2016 order is appropriate.
The Petitioner failed to place documentary evidence proving it had sought permission specifically to test 500 MVA at 765 kV; in the absence of such evidence the Commission could not accept the Petitioner's contention that charges should be revised downward on the basis of the presently permitted 333.3 MVA.
Consequently, the Petitioner remains liable to pay RSC for 50 MW in terms of the 16.5.2016 order in Petition No. 9/MP/2016.

Holding and Implications

Core Ruling: The petition is disposed of in terms of the Commission's analysis: the Petitioner is liable to pay Reliability Support Charges for 50 MW in accordance with the Commission's order dated 16.5.2016, with full RSC levied from the 1st commercial test (1.7.2017) and a reduced RSC for the pre-commercial testing period.

Consequences and practical effects as set out by the Commission:

Full RSC will be levied from 1 July 2017 (the 1st commercial test).
For the period from 27 June 2016 to 30 June 2017 (trial testing / commissioning period prior to the 1st commercial test), RSC will be levied at a reduced rate equal to 5% of the Reliability Charge rate applied to 50 MW, on a monthly basis and pro-rata for part months. The Commission expressed this as payable @ [5% Reliability Charge rate x 50 MW]/month (pro rata as applicable).
The Commission affirmed that, absent documentary proof that the Petitioner had sought permission to test 500 MVA at 765 kV, it cannot adjust the RSC liability downwards; thus the Petitioner remains liable in terms of the 16.5.2016 determination.
The Commission's earlier direction that charges recovered from NHPTL shall be reimbursed back to long-term and medium-term open access customers (in the next month bill) remains part of the framework established by the 16.5.2016 order and is referenced in the discussion; the present order does not alter that direction.
No new legal precedent beyond the application of the 16.5.2016 order and the record-specific determinations was articulated by the Commission; the decision operates to resolve the parties' dispute on the facts and accounting for the period and rates specified above.

Disposition: The petition is disposed of in terms of the Commission's analysis and directions contained in this order.

Panel: Shri P.K. Pujari, Chairperson; Shri A.K. Singhal, Member; Shri A.S. Bakshi, Member; Dr. M.K. Iyer, Member.

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National High Power Test Laboratory Pvt. Ltd. v. Central Transmission Utility Power Grid Corporation Of India Limited

Central Electricity Regulatory Commission New Delhi

Petition No.: 142/MP/2017

Coram:

Shri P.K. Pujari, Chairperson Shri A.K. Singhal, Member

Shri A.S. Bakshi, Member

Dr. M.K. Iyer, Member

Date of Order: 4^th of April, 2018 In the matter of

Petition under Section 79(1) (c) and Section 79(1) (k) of the Electricity Act, 2003 read with Regulation 8 of the CERC (Grant of Connectivity, Long Term Access and Medium Term Open Access in inter-state Transmission and related matters) Regulations, 2009 and Regulation 111 - 113 (Inherent Powers) and Regulation 115 (Power To Remove Difficulties) of the CERC (Conduct of Business) Regulations, 1999 with respect to applicability of Reliability Support Charges on the Petitioner in terms of the order dated 16.5.2016 in Petition No. 9/ MP/ 2016.

And In the matter of

National High Power Test Laboratory Pvt. Ltd First Floor, Core 8, Scope Complex, 7, Area, Lodhi Road ….Petitioner

1. Central Transmission Utility Power Grid Corporation of India Limited

"Saudamini", Plot No. 2 Sector-29, Gurgaon-122001

2. Power System Operation corporation Limited, B-9, Qutub institutional Area

Katwaria Sarai, New Delhi-110016

3. Central Electricity Authority, Sewa Bhawan, R.K. Puram, New Delhi-110066

4. Western Regional Load Despatch Centre F-3, M.I.D.C. Area, Marol, Andheri (EAST), Mumbai-400093

5. Central Power Research Institute(CPRI) P B No. 8066, Sir C V Raman Road, Sadashivanagar, Bangalore-560080 …Respondents

The following were present:

Ms. Swapna Seshadri, Advocate, NHPTL Shri Aditya P. Das, WRLDC Shri V. Srinivas, PGCIL

Shri G. Chakraborthy, POSOCO Shri Gaurav Verma, POSOCO Shri Ashok Rajan, POSOCO

ORDER

The Petitioner, National High Power Test Laboratory Pvt. Ltd. (NHPTL), a Joint Venture Company of NTPC, NHPC, PGCIL, DVC and CPRI was incorporated for establishment of a fully independent, standalone, state-of-the art, professionally managed, international class, On-Line High Power Test Laboratory in India with an aim to provide full range of short circuit testing for the electrical equipment manufacturing industry and power utilities in conformance to Indian and International Standards.

2. The Petitioner approached the Commission for seeking connectivity of NHPTL`s laboratory with 765 kV and 400 kV Bus at ISTS Bina sub-station of PGCIL for bay charging at No Load initially and further at On Load for short circuit testing of electrical equipment and for approval of Connection Agreement for No Load and On Load conditions under the Central Electricity Regulatory Commission (Grant of Connectivity, Long Term Access and Medium Term Open Access in inter-State Transmission and related matters) Regulations, 2009 (Connectivity Regulations). The Commission vide order dated 16.5.2018 in Petition No.9/MP/2016 held that since the Petitioner would not draw any MW from the grid, it would not be required to apply for any type of access. However, the Petitioner would be levied Reliability Support Charges (RSC) corresponding to 10,000 MVA multiplied by pf of 0.0005 as discussed during the meeting held on 11.3.2016 in terms of the Central Electricity Regulatory Commission

(Sharing of Inter State Transmission Charges and Losses) Regulations, 2010 (Sharing Regulations) (i.e.10,000x0.005xReliability Support rate (Rs./MW/month] for the entire month. The Commission directed POSOCO to compile pattern of short circuit drawl MVA by the Petitioner and file the report in this regard to before the Commission for a six month period beginning from the date of 1^stcommercial test. The charges recovered from NHPTL shall be reimbursed back to long term and medium term open access customers in next month bill.

3. As per the Commission's direction dated 16.5.2016, a Connection Agreement 25.5.2016 was signed between the Petitioner and CTU. Article 8 of the Connection Agreement inter-alia provides that the Agreement shall be effective from the date of commercial operation and CTU shall permit the Petitioner to conduct short circuit test on the transformers which are required for trial testing/ commissioning of the laboratory. However, on 10.8.2016, CTU raised the Point of Connection (PoC) bill 1 amounting to Rs.13,03,100/- for the month of July 2016.

4. The Petitioner vide its letter dated 20.8.2016 requested PGCIL to levy charges only from the date of 1^stcommercial test in terms of the Commission's order dated

16.5.2016.

5. CTU vide its letter dated 6.9.2016 has levied the RSC on the Petitioner for the month of August, 2016 and has been raising the bills for the successive months . Power System Operation Corporation Limited vide its letter dated 3.2.2017 informed CTU that since, the Petitioner has to pay the RSC corresponding to 50 MW capacity for the entire month, billing of RSC to the Petitioner shall not be linked with date of 1^stcommercial test. Subsequently, the Petitioner vide its letter dated 7.4.2017 further intimated CTU

and POSOCO that as per clause 8 of the Connection Agreement, the said Agreement would be effective from the date of commercial operation and requested to bill the RSC from the date of commercial operation of NHPTL`s laboratory. POSOCO vide letter dated 1.6.2017 informed the Petitioner that RSC is payable by the Petitioner irrespective of its commercial business/test.

6. The Petitioner has submitted that despite several persuasions by the Petitioner to resolve the issues, CTU and POSOCO have wrongfully levied the RSC from July, 2016 onwards even though the Petitioner has not commenced its commercial operations. The Commission in its order dated 16.5.2016 has specifically recorded minutes of meeting held in the Office of the Chief (Engineering) of the Commission on 11.3.2016 in which it was discussed that based on similar principles, 10,000 MVA short circuit rating of NHPTL with the power factor of .005, works out to a notional 50- MW for which Reliability Charges as per the Sharing Regulations could be applied. It was further stated that the petitioner is dependent on the strength of the grid for its commercial business and hence should be charged the reliability charges. Based on the above minutes of the meeting, the Commission in Para 33 of the order dated 16.5.2016 had decided that the RSC will be levied on the Petitioner when the dependence on the grid is taken for commercial operation. Though the Petitioner does not take any support from the grid and is not conducting any commercial tests, but still the RSC is being charged to the Petitioner.

7. The Petitioner has submitted that CTU and POSOCO cannot be unjustly enriched by charging the RSC from the Petitioner in deviation of the order dated 16.5.2016. The RSC is for a purpose, namely, the support drawn by the Petitioner from

the grid during testing. If such support itself is not taken, it does not stand to any reason that the RSC is to be levied on the Petitioner.

8. The Petitioner has filed the present petition against the wrongful action of CTU and POSOCO in levying the RSC prior to the commercial operations/ testing of the NHPTL`s laboratory with the following prayers:

"(i) Clarify that the Reliability Support Charges are to be levied by Respondent No. 1 only from the date when the commercial operation begin, namely from the date of 1^stCommercial test of customer's transformer for which the Petitioner will receive test charges from the customer.

(ii) Set aside the RSC bills raised by the Respondent No. 1 from July, 2016 till the disposal of the petition."

9. Notices were issued to the respondent to file their replies. Reply to the Petition has been filed by CTU and POSOCO.

10. CTU, vide its reply affidavit dated 22.9.2017, has submitted as under:

(a) RSC has been determined as per the provision of Regulation 10 (1) (a), (b) and (c) of the Sharing Regulations. Accordingly, RTAs were issued on the next working day of the issue of Regional Energy Account, to all DICs, CTU and other ISTS Transmission Licensees and the same were displayed on the web site.

(b) As per Regulation 11 of the Sharing Regulations which deals with the billing, the scheme of the arrangement for levy of transmission charges include,-

(i) Preparation of RTAs by RPC based on the approved injection/withdrawal furnished by the implementing agency.

(ii) The approved injection and withdrawal include cases where LTA/MTOA is granted by CTU, information regarding quantum of which is furnished by CTU to Implementing agency. For the other cases, in which LTA are not formally granted by CTU but are deemed LTA like those involving allocation of power made by MOP, the LTA quantum is considered by Implementing agency as the installed capacity minus auxiliary consumption.

(iii) Based on the RTA, the bills are raised by CTU.

(c) CTU has a very limited role in determining the RTA, which extends to the extent of formalizing the LTA/MTOA granted by CTU, submitting details of the Implementing agency (NLDC) and has no locus to amend the same based on the request of the Petitioner. Once RPCs issues the RTAs, it is the responsibility vested upon CTU, under the Sharing Regulations, to raise PoC bills in accordance with the data provided in the RTAs by RPC. Therefore, deviation from the RTAs or not issuing bills in accordance with the data provided by RPCs under the RTA is beyond the powers of CTU.

(d) CTU has no authority to revise/revoke the PoC bills issued to the Petitioner under Bill-1 as the same is in accordance with the provisions of the Sharing Regulations and as per the data given in the RTA by RPC.

11. WRLDC, vide its reply affidavit dated 6.2.2018 , has submitted as under:

(a) Subsequent to the order dated 16.5.2016, WRLDC/POSOCO have been facilitating conduction of several short circuit tests by the Petitioner from 27^thJune, 2016 as per its application in line with the procedure approved by the Commission.

The Petitioner vide its letter dated 1.7.2017 intimated about the first commercial test using its facility (i.e. High Voltage Transformer (HVTS) Section Stage-I).

(b) Prior to 1.7.2017, WRLDC had facilitated 32 tests as proposed by the Petitioner. Summary of all the short circuit tests facilitated by WRLDC prior to 1.7.2017 as per the application from the Petitioner is as under:

Short Circuit Tests by NHPTL before 1.7.2017

S. No.	Particular	No.
1	Number of Short Circuit (SC) Tests Proposed by NHPTL	32
2	Number of Short Circuit (SC) Tests Approved by WRLDC	32

Equipment tested and Short-circuit current drawn before 1.7.2017

S. No.	Voltage kV	Equipment Tested	Rating in MVA	Max. Short-circuit current drawn
1	400 or 765	Air core	-	from 3G.2ri0d7 i n kA
2	400/10/16/26/52	R1e-aPchtoars e Transformer	800	8.18

(c) Whenever the Petitioner applies for approval of a test window for carrying out the short circuit tests, WRLDC carries out necessary system studies and coordination and accordingly approves the test window for the proposed short circuit tests.

(d) It can be inferred from the Commission`s approved procedure in Petition No. 9/MP/2016 that the coordination efforts for ensuring grid security while facilitating any type of testing, whether it is Short Circuit Test / Air Core Reactor Test/ High Voltage Transformer Test performed by NHPTL is the same irrespective of whether it is done before or after 1.7.2017. Since, the Petitioner was dependent

on the strength of the grid for all the tests before and after 1.7.2017, it is liable to pay the RSC.

(e) One short circuit test window comprises of multiple calibration shots and multiple actual shots. Each test introduces a fault on the system, though the fault currents are controlled. For every test, WRLDC computes the fault level based on the prevailing network conditions to help NHPTL in smooth conduction of the test with due caution. The test lab is adjacent to Inter-Regional (IR) boundary sub-stations (S/S) viz. the 765/400 kV Bina PGCIL S/S and any untoward incident during the test can potentially impact the IR power transfer between WR and NR. Therefore, the system operators have to be under high alert state during each test window, so as to handle the scenario when the fault current exceeds the envisaged values.

(f) NHPTL has already been extended a number of privileges as under:

(i) Exemption in transmission charge.

(ii) Relaxation in payment of monthly RLDC charges.

(iii) Relaxation in the Application Procedure: NHPTL is required to apply 7 days ahead vis-a- via the extant practice of month ahead planning & approval through Operation Coordination Committee (OCC) meetings for other entities seeking shutdown for planned maintenance of equipments.

(iv) In certain cases planned outages are rescheduled to accommodate testing at NHPTL. This entails coordination with multiple entities and SLDCs.

(v) In number of cases, applications for test are being received by WRLDC with less than the prescribed norm of 7days advance notice from NHPTL. All

such cases WRLDC, wherever feasible, accommodated the Petitioner by deferring the OCC approved outages of lower priority and smaller duration.

(vi) In certain cases, the approved test window has been rescheduled or extended by WRLDC on the request of NHPTL.

(g) WRLDC and all other players of Western Regional (WR) grid have been extending reliability support and all other procedural support to the Petitioner for performing various tests from 27.6.2016 till date. Accordingly, necessary directions may be given to NHPTL to honour the bills against payment of Reliability Support Charges in line with Commission's order dated 16.5.2016 in Petition No. 9/MP//2016.

(h) WRLDC has submitted the pattern of drawal MVA by NHPTL, Bina for the period of 6 months from 1.7.2017 i.e., from the date of 1^stcommercial test by NHPTL. During the period from 1.7.2017 to 11.1.2018, NHPTL had proposed 29 Short Circuit tests which were approved by WRLDC. Maximum 2180, minimum 278 and 939 MVA average short circuit drawal (MVA) were observed in these tests.

12. The Petitioner vide its rejoinder affidavit dated 17.10.2017 to the reply of CTU has submitted as under:

(a) CTU has relied upon the Regulation 10 (1) (a), (b) & (c) of the Sharing Regulations which deals with Accounting of Charges. The determination of Reliability Support Charges may be based on Regulation 10 (1) (a), (b) & (c). However, this does not mean that even if the RSC is not leviable in terms of the order dated 16.5.2016 in Petition No. 9/MP/2016, merely because of its manner of calculation given in Regulation 10, the same would be applied on the Petitioner.

(b) CTU has also relied upon the Regulation 11 (4) of the Sharing Regulations which deals with Billing. The Petitioner has not availed any type of access and it is not understood as to how the RSC can be billed based on Regulation 11 (4) of the Sharing Regulations.

(c) CTU`s contention that it has no role in determining the RTA and it only bills on the basis of the RTA, is not correct. The issue raised in the petition is whether CTU can unjustly enrich itself by charging the RSC from the Petitioner in deviation of the order dated 16.5.2016.

(d)The RSC is for the support drawn by the Petitioner from the grid during testing. If such support itself is not taken, it does not stand to any reason that the RSC is to be levied on the Petitioner.

(e) There is negligible MW power to be drawn during the testing for 250 million second test duration and no energy meter can record the MWh for this test duration. Therefore, 50 MW was arrived at on the basis of equivalence logic. It was assumed that maximum demand of 10000 MVA would be drawn at 0.005 pf which equals to

50 MW (10000 MVAx0.005pf = 50 MW). The maximum demand of 10,000 MVA (V3x765kVx7.17kA=9,500 MVA approximated to 10,000 MVA) to be drawn by the Petitioner would be possible only be when the Laboratory is granted permission for testing of highest MVA rating i.e. 500MVA, 765 kV voltage level transformer (corresponding to drawl of 7.17kA test current).

(f) As on date, the Petitioner has been granted the permission up to 333.3 MVA in 765 kV on 10.10.2017, and that too, in phased manner. So levying the RSC

calculated on the basis on maximum demand of 10000 MVA against 500 MVA, 765 kV transformer from 1.7.2016, whereas the clearance for testing of 500 MVA, 765 kV transformer not been given yet, is neither fair nor correct.

(g) The Petitioner is ready to pay the RSC based on maximum rating of 500 MVA, 765 kV with effect from 1.7.2017, which is the date of commercial operation at 400 kV only in terms of order dated 16.5.2016. On 11.9.2017, the Petitioner conducted test on 85 MVA, 765 kV and is still trying to get the clearance of 500 MVA, 765 kV.

13. The Petitioner, vide its rejoinder dated 7.3.2017 to the reply of WRLDC, has submitted as under:

(a) There are number of factual discrepancies in the reply of WRLDC. The WRLDC in its reply has laid great emphasis on the test being conducted. It is clarified that the commissioning test on Air Core Reactor and Laboratory Transformer was conducted for 11 days only during the period from 1.7.2016 to

30.6.2017.

(b) The attempt on the part of WRLDC is to project as if the Petitioner is seeking a free service and equating the Petitioner to generator who is surrendering LTA etc. is not correct. The Petitioner is only seeking the implementation of dispensation laid down by the Commission in order dated

16.5.2016.

(c) The Petitioner has requested to direct WRLDC to submit the report and review monthly RSC charges based on the MVA drawl report of 6 months to be submitted by WRLDC and also based on the fact that the Petitioner utilizes the grid for few days only in a month and shots last for 250 milli sec only, so that the

pro rata basis for days of utilization in a month may also be considered while reviewing the RSC charges, instead of full month.

14. During the hearing held on 15.2.2018, the representative for WRLDC submitted that the grid does not know whether the transformer is connected for commercial testing or non-commercial. The coordination efforts for ensuring grid security while facilitating the short circuit tests before or after the commercial operation remains the same. The Petitioner has carried out 36 tests during June, 2016 to June, 2017 before declaring CoD. During such testing, WRLDC has to find fault level, undertake system study, and accommodate the test for the testing and other outages. It does not make any difference whether testing is carried out before or after the commercial operation. The system does not know whether the transformer is gaining commercially. RSC remains the same before and after the commercial operation.

15. The representative for WRLDC submitted that the Commission in the order dated 16.5.2016 had observed that the charges recovered from the Petitioner shall be reimbursed back to the LTA and MTOA customers in next month bill.

Analysis and Decision:

16. We have considered the submission of the Petitioner and the Respondents. We have also perused the documents available on record. The following issues arise for consideration:

(a) Whether reliability support charges should be levied on the petitioner before the 1^stcommercial test by the petitioner i.e., before 1.7.2017?

(b) Whether reliability support charges should be levied for the 333.3 MVA drawal permitted by PGCIL or the maximum drawal of 500 MVA allowed in order dated 16.5.2016 in Petition No. 9/MP/2016?

Issue No. 1: Whether reliability support charges should be levied on the petitioner before the 1^st commercial test by the petitioner i.e., before 1.7.2017?

17. The Commission vide order dated 16.5.2016 in Petition No. 9/MP/2016 allowed NHPTL`s Laboratory to sign Connection Agreement with CTU as a special dispensation. The Commission further directed the Petitioner to sign Connection Agreement as mutually agreed between the Petitioner, CTU and POSOCO. The Commission in the said order dated 16.5.2016 had observed that although the Petitioner would not draw any MW from the grid but being connected to the grid, it would draw reliability from the grid for its commercial business. The Commission further observed that the Petitioner would be levied Reliability Support Charges in terms of the Sharing Regulations for the entire month. The relevant portion of the said order dated 16.5.2016 is extracted as under:

"33. ………….. Although the petitioner would not draw any MW from the grid, the petitioner is connected to the national grid and drawing reliability from the grid by virtue of being connected to the grid for its commercial business. Since, the petitioner would not draw any MW from the grid, it shall not be required to apply for any type of access. However, the petitioner shall be levied Reliability Support Charges corresponding to 10,000 MVA multiplied by pf of 0.005) as discussed during the meeting held on 11.3.2016 in terms of Sharing Regulations [i.e.10,000x0.005xReliability Support rate (Rs./MW/month] for the entire month…….."

18. In terms of the order dated 16.5.2016, the Petitioner signed the Connection Agreement on 25.5.2016 with CTU. As per the Connection Agreement, it shall be effective from the date of commercial operation. The relevant portion of the Connection Agreement dated 25.5.2016 is extracted as under:

8. Effectiveness of the Agreement

8.1 That the Agreement shall be effective from the date of commercial operation. However, First party shall permit Second party to conduct short circuit test of the transformers which are required for Trial testing/commissioning of the laboratory.

8.2 From the Effective Date, each party undertakes to each other party to comply with and to perform its obligation in accordance with and subject to this Agreement.

8.3 This Agreement shall deemed to have come into force w.e.f. the date as

mentioned at 8.1 above and shall remain operative till the same is renewed/replaced/modified.

19. According to the Petitioner, as per Para 33 of the order dated 16.5.2016, RSC is required to be levied on the Petitioner when the dependence on the grid is taken for commercial operation. The Petitioner has submitted that RSC will still be charged to the Petitioner, even if the Petitioner does not take any support from the grid and is not conducting any commercial tests. The Petitioner has submitted that on 10.8.2016, CTU raised the PoC bill 1 amounting Rs. 13,03,100/- for the month of July, 2016 and further on 6.9.2016, for the month of August, 2016 . The Petitioner has submitted that WRLDC vide its letter dated 3.2.2017 informed that RSC is payable corresponding to 50 MW capacity for the entire month and it is not linked with the commercial tests of the Petitioner. The Petitioner has submitted that the respondents have granted the permission up to 333.3 MVA in 765 kV on 10.10.2017, and that too, in phased manner. Therefore, levying the RSC calculated on the basis on maximum demand of 10000 MVA against 500 MVA, 765 kV transformer from 1.7.2016, whereas the clearance for testing of 500 MVA, 765 kV transformer not been given yet, is neither fair nor correct. The Petitioner has submitted that it is ready to pay the RSC based on maximum rating of 500 MVA, 765 kV with effect from 1.7.2017, which is the date of commercial operation at 400 kV only. The Petitioner has submitted that on 11.9.2017, test was conducted on 85 MVA, 765kV for which no clearance has been received.

20. WRLDC has submitted that as per the Petitioner`s application, WRLDC/POSOCO has been facilitating several short circuit tests carried out by the Petitioner from 27.6.2016 as per the procedure approved by the Commission. Prior to 1.7.2017, WRLDC had facilitated 32 tests as proposed by the Petitioner. WRLDC has submitted that whenever the Petitioner applies for approval of test window for carrying

out the short circuit tests, necessary system studies and coordination are carried out and the test window for the proposed short circuit tests is approved thereafter. WRLDC has submitted that the coordination efforts for ensuring grid security while facilitating any type of testing, whether it is Short Circuit Test / Air Core Reactor Test/ High Voltage Transformer Test performed by NHPTL is the same irrespective of whether it is done before or after 1.7.2017. According to WRLDC, one short circuit test window comprises of multiple calibration shots and multiple actual shots. Each test introduces a fault on the system, though the fault currents are controlled. For every test, WRLDC computes the fault level based on the prevailing network conditions to help NHPTL in smooth conduction of the test with due caution. The test lab is adjacent to Inter-Regional (IR) boundary sub-stations (S/S) viz. the 765/400 kV Bina PGCIL sub-station and any untoward incident during the test can potentially impact the IR power transfer between WR and NR.

21. We have considered the submission of the petitioner and WRLDC. The Connection Agreement signed between the Petitioner and CTU is effective from the date of commercial operation. It further provides that the first party (CTU) shall permit Second party (Petitioner) to conduct short circuit test of the transformers which are required for trial testing/commissioning of the laboratory. According to WRLDC, prior to the 1^stCommercial test i.e. prior to 1.7.2017, the Petitioner requested WRLDC to facilitate 32 short circuit tests to be carried out from 27.6.2016 and the same was facilitated by WRLDC. It is noted that the Petitioner vide letter dated 1.7.2017 informed the Commission that High Voltage Transformer (HVTR) section of NHPTL Laboratory, Stage-I has been declared under commercial operation w.e.f. 1.7.2017 and the same shall cater the requirement of Short Circuit Test of Transformer from 50 MVA, 132 kV class to 315 MVA, 400 kV class.

22. We observe that the definition of the date of Commercial Operation has not been provided in the Connection Agreement signed between the Petitioner and CTU on 25.5.2016. However, commercial operation can be stated to have happened once the entity is ready for starting commercial activity. Therefore, keeping in view the date of effectiveness of the Connection Agreement is from the date of commercial operation and that no specific date was provided in order dated 16.5.2016 in Petition No. 9/MP/2016 for levy of reliability support charges, we are of the view that full reliability support charges shall be levied from the 1^stcommercial test i.e. 1.7.2017. Further, keeping in view the WRLDC comments that the Petitioner has drawn support from grid prior to 1^stcommercial test for trial testing/commissioning of laboratory, it will be reasonable to levy 5% of reliability charges for 50 MW [5% of Reliability Charge rate x50 MW] for the period prior to the 1^stcommercial test. These charges shall be payable from 27.6.2016 to 30.6.2017 @ [5% Reliability Charge rate x 50 MW]/month and pro- rata for part of month.

Issue No. 2: Whether reliability support charges should be levied for the 333.3 MVA drawal permitted by PGCIL or the maximum drawal of 500MVA allowed in order dated 16.5.2016 in Petition No. 9/MP/2016?

23. The Petitioner has submitted that on 10.10.2017, it has been granted permission to test transformers up to 333.3 MVA in 765 kV. The maximum demand of 10,000 MVA would be drawn by the Petitioner only when the laboratory is granted permission for testing highest MVA rating i.e. 500 MVA, 765 kV voltage level. Thus, levying reliability support charges calculated on the basis on maximum demand of 10000 MVA against

500 MVA, 765 kV transformer from 1.7.2016 is neither fair nor correct as the clearance for testing of 500 MVA, 765 kV transformer has not been given yet. The Petitioner has also submitted that it is ready to pay the RSC based on maximum rating of 500 MVA,

765 kV with effect from 1.7.2017, which is the date of commercial operation at 400 kV only.

24. The Commission in its order dated 16.5.2016 in Petition No. 9/MP/2016 directed POSOCO to compile pattern of short circuit drawl MVA by the Petitioner and file the report in this regard to the Commission for a six month period beginning from the date of 1^stcommercial test. POSOCO has vide letter dated 5.3.2018 submitted the pattern of drawal MVA by NHPTL, Bina for a period of 6 months from 1.7.2017 i.e., from the date of 1^stcommercial test by NHPTL based on the Phasor Measurement Unit (PMU) data available at WRLDC from the PMU installed at NHPTL Bina. Perusal of the drawal pattern submitted by POSOCO reveals that 29 short circuit tests proposed by NHPTL during the period 1.7.2017 to 11.1.2018 were approved by WRLDC. Further, maximum 2180 MVA, minimum 278 MVA and average 939 MVA short circuit drawals were observed in these tests. Since, then the Petitioner till date has tested maximum rating of

315 MVA, 400 kV voltage level transformer and has drawn maximum of 2180 MVA short circuit current. With enhancement of transformer rating up to 500 MAV, 765kV, the drawal of short circuit current will increase further. In our view, the maximum demand of 10,000 MVA allowed in Petition No. 9/MP/2016 is appropriate.

25. The Commission in its order dated 16.5.2016 in Petition No. 9/MP/2016 has calculated RSC corresponding to 10,000 MVA multiplied by pf of 0.005 i.e., 10,000x0.005 x Reliability Support rate (Rs./MW/month] for the entire month. The Petitioner has claimed that CTU has granted permission for test up to 333.3 MVA in 765 kV level and it has been able to conduct short circuit test up to 315 MVA, 400 kV transformers. The Petitioner has further claimed that since it was permitted to draw lesser than 10,000 MVA, charges may be revised to that extent. The Petitioner has not

placed on record any document to prove that it had sought permission to test 500 MVA, 765 kV voltage level transformers. Therefore, in the absence of the information, we are unable to take a view in this regard. However, the Petitioner is liable to pay RSC for 50 MW in terms of the order dated 16.5.2016 in Petition No. 9/MP/2016.

26. The petition is disposed of in terms of the above. Sd/- sd/- sd/- sd/-

(Dr. M.K.Iyer) (A.S. Bakshi) (A. K. Singhal) (P.K. Pujari) Member Member Member Chairperson

National High Power ... v. Central Transmission...