The Commission clarified guidelines on approving tariff for transmission assets, determining conditions for capital expenditures, delays due to force majeure, loan interest, and return on equity, pivotal for future tariff evaluations.

ORDER

The Power Grid Corporation of India Limited (hereinafter referred to as “the Petitioner”), had filed the instant Petition for the determination of transmission tariff under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 (hereinafter referred to as “the 2019 Tariff Regulations”) for the period from COD to 31.3.2024 in respect of the following transmission assets under “Eastern Region Strengthening Scheme XX (ERSS – XX)'' (hereinafter referred to as “the transmission project”) in the Eastern Region:

Asset-I: 400/220 kV 500 MVA ICT IV along with 400kV Bay at Biharsharif (POWERGRID) Substation and 220 kV Bay at Biharsharif (BSPTCL) Substation alongwith 220 kV interconnecting line from Biharsharif (BSPTCL) Substation to 220 kV bushing of ICT installed at Biharsharif (POWERGRID) Substation;

Asset-II: Replacement of 220/132 kV, 1X50 MVA ICT with 220/132 kV 160 MVA ICT along with suitable modification of bay equipment at Malda Substation;

Asset-III: Reconductoring of 220 kV D/C New Purnea – Purnea Ckt.-I and Ckt.-II transmission line along with modification of 220 kV bays equipments at New Purnea & Purnea Substations;

Asset-IV: 400/132 kV, 315 MVA ICT III along with associated bays at Lakhisarai Substation;

Asset-V: 400/132 kV, 315 MVA ICT III along with associated bays at Banka Substation; Asset-VI: 420 kV, 1X125 MVAR Bus Reactor along with associated bay at Susbhasgram Substation;

Asset-VII: Conversion of 63 MVAR fixed line Reactor at New Purnea end of one circuit of Kishanganj – New Purnea 400 kV D/C line to Switchable Line Reactor (SLR);

Asset-VIII: 400/132 kV, 500 MVA ICT along with associated bays at Maithon Substation;

Asset-IX: Reconductoring of 400 kV D/C Rangpo – New Siliguri transmission line along with modification of 400 kV bays equipments at New Siliguri Substations;

Asset-X: 765 kV, 80 MVAR (single phase) Spare Reactor Unit at New Ranchi Substation; and Asset-XI: 220/132 kV, 100 MVA ICT along with associated bays at Rangpo GIS Substation.

2. The Petitioner has made the following prayers in the instant Petition:

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1) Approve the Transmission Tariff for the tariff block 2019-24 block for the assets covered under this petition, as per para –8.3 above.

2) Admit the capital cost as claimed in the Petition and approve the Additional Capitalisation incurred / projected to be incurred.

3) Approve the DOCO for the subject Assets as claimed and allow full tariff as claimed under instant petition.

4) Approve the initial spares as claimed in the instant petition.

5) Allow the Petitioner to claim the overall security expenses and consequential IOWC on that security expenses separately.

6) Allow the petitioner to recover the shortfall or refund the excess Annual Fixed Charges, on account of Return on Equity due to change in applicable Minimum Alternate/Corporate Income Tax rate as per the Income Tax Act, 1961 (as amended from time to time) of the respective financial year directly without making any application before the Commission as provided in Tariff Regulation 2019 as per para 8.3 above for respective block.

7) Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation 70 (1) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019, and other expenditure ( if any) in relation to the filing of petition.

8) Allow the petitioner to bill and recover Licensee fee and RLDC fees and charges, separately from the respondents in terms of Regulation 70 (3) and (4) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019.

9) Allow the petitioner to bill and adjust impact on Interest on Loan due to change in Interest rate on account of floating rate of interest applicable during 2019-24 period, if any, from the beneficiaries.

10) Allow the Petitioner to bill and recover GST on Transmission Charges separately from the respondent