CERC Approves Transmission Tariff Of Five Natural Inter-State Transmission lines For MPPTCL

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The Central Electricity Regulatory Commission (CERC)  issued an order  determining transmission tariff for the 2014-19 period of 7 nos. transmission lines belonging to MPPTCL(Madhya Pradesh Power Transmission Company Limited )  conveying electricity as ISTS lines, for inclusion of these assets in computation of Point of Connection Charges and Losses in accordance with the Central Electricity Regulatory Commission (Terms & Conditions of Tariff) Regulations 2014 and Central Electricity Regulatory Commission (Sharing of InterState Transmission Charges and Losses), Regulations, 2010. 

The petition was filed by  Madhya Pradesh Power Transmission Company Limited (“MPPTCL”) seeking approval of transmission tariff for the MPPTCL owned 7 Nos. of natural inter-State transmission lines connecting Madhya Pradesh to Rajasthan, Maharashtra, Chhattisgarh and Uttar Pradesh, for inclusion in Point of Connection (PoC) transmission charges in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 (hereinafter referred to as the 2014 Tariff Regulations).

After certification by WRPC, the Petitioner has filed the instant petition claiming Annual Transmission Charges of these 7 lines for the control period 2014-19. 

MPPTCL  has made the following prayer: – i. To approve the Yearly Transmission Charges (YTC) amounting to Rs. 7,38,36,000/- (Rs. Seven CroresThirty-EightLacsThirty-Six Thousand only) for the Assets covered under this Petition; ii. To allow the Petitioner to recover the Yearly Transmission Charges (YTC) for the control period FY 2014-15 to FY 2018-19 as mentioned in Para-9, from the beneficiaries through Billing Agency M/s PGCIL, as per the procedure mentioned in the CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010; iii. To approve the reimbursement of expenditure fee, and other expenses in relation to filing of Petition etc. from the beneficiaries in accordance with the Regulation 52 of the 2014 Tariff Regulations. iv. To condone delay / inadvertent omission / errors / shortcomings if any and permit the Petitioner to add / modify / alter this filing and make further submission as may be required at a later stage. v. To pass such orders, as the Commission may deem fit and proper & necessary in the facts and circumstances of the case to grant relief to the Petitioner.

The  commision after analysis states that “ We are not inclined to grant tariff for Asset-1 and Asset-7. “

Accordingly, following 5 assets have been considered for determination of transmission charges:

All these 5 assets have already completed twenty five years of life as on 1.4.2014. Therefore, as per the above methodology, only “Interest on Working Capital” and “O & M Expenses” components of tariff shall be allowable,the commission ordered.

 The transmission charges allowed for the instant assets are as under:

The order also states that “The petitioner shall be entitled for reimbursement of the filing fees and publication expenses in connection with the present petition, directly from the beneficiaries on pro-rata basis.“

The commission concluded by stating “The transmission charges of the natural ISTS lines considered in the Petition shall be recovered on monthly basis in accordance with Central Electricity Regulatory Commission (Terms and Condition of Tariff) Regulations, 2014 and shall be shared by the beneficiaries and long term transmission customers in accordance with Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010 as amended from time to time. Further, the transmission charges allowed in this order shall be adjusted against the ARR approved by the State Commission.”

The petition was filed by  Madhya Pradesh Power Transmission Company Limited (“MPPTCL”) seeking approval of transmission tariff for the MPPTCL owned 7 Nos. of natural inter-State transmission lines connecting Madhya Pradesh to Rajasthan, Maharashtra, Chhattisgarh and Uttar Pradesh, for inclusion in Point of Connection (PoC) transmission charges in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 (hereinafter referred to as the 2014 Tariff Regulations).

After certification by WRPC, the Petitioner has filed the instant petition claiming Annual Transmission Charges of these 7 lines for the control period 2014-19. 

MPPTCL  has made the following prayer: – i. To approve the Yearly Transmission Charges (YTC) amounting to Rs. 7,38,36,000/- (Rs. Seven CroresThirty-EightLacsThirty-Six Thousand only) for the Assets covered under this Petition; ii. To allow the Petitioner to recover the Yearly Transmission Charges (YTC) for the control period FY 2014-15 to FY 2018-19 as mentioned in Para-9, from the beneficiaries through Billing Agency M/s PGCIL, as per the procedure mentioned in the CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010; iii. To approve the reimbursement of expenditure fee, and other expenses in relation to filing of Petition etc. from the beneficiaries in accordance with the Regulation 52 of the 2014 Tariff Regulations. iv. To condone delay / inadvertent omission / errors / shortcomings if any and permit the Petitioner to add / modify / alter this filing and make further submission as may be required at a later stage. v. To pass such orders, as the Commission may deem fit and proper & necessary in the facts and circumstances of the case to grant relief to the Petitioner.

The  commision after analysis states that “ We are not inclined to grant tariff for Asset-1 and Asset-7. “

Accordingly, following 5 assets have been considered for determination of transmission charges:

All these 5 assets have already completed twenty five years of life as on 1.4.2014. Therefore, as per the above methodology, only “Interest on Working Capital” and “O & M Expenses” components of tariff shall be allowable,the commission ordered.

 The transmission charges allowed for the instant assets are as under:

The order also states that “The petitioner shall be entitled for reimbursement of the filing fees and publication expenses in connection with the present petition, directly from the beneficiaries on pro-rata basis.“

The commission concluded by stating “The transmission charges of the natural ISTS lines considered in the Petition shall be recovered on monthly basis in accordance with Central Electricity Regulatory Commission (Terms and Condition of Tariff) Regulations, 2014 and shall be shared by the beneficiaries and long term transmission customers in accordance with Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010 as amended from time to time. Further, the transmission charges allowed in this order shall be adjusted against the ARR approved by the State Commission.”

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