SLDC (GETCL)

STATE LOAD DISPATCH CENTRE

GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED

132 KV Substation Campus, Opposite Kalpvrux Complex,

Gotri Road, Vadodara – 390-021

CASE NO. 1063 of 2011

TRUE-UP FOR THE FY 2009-10

ANNUAL PERFORMANCE REVIEW FOR THE FY 2010-11

AND

MULTI YEAR TARIFF FOR THE CONTROL PERIOD

FY 2011-12 TO 2015-16

OF



Sardar Patel Vidyut Bhavan, Race Course, Vadodara – 390007, Gujarat, India.

Phone: (O) 91 265 2310582-86, Fax: +91 265 2337918, 2338164

Fax: +91 0265 2352019 (SLDC Control Room)

Email: [email protected]

Rs. 100/-

mailto:[email protected]

True-up for 2009-10

Annual Performance Review for the FY 2010-11

Multi Year Tariff for FY 2011-12 to 2015-16

State Load Dispatch Centre

Gujarat Energy Transmission Corporation Limited Page 1

BEFORE THE HONOURABLE GUJARAT ELECTRICITY REGULATORY COMMISSION AT

ITS OFFICE OF 1ST FLOOR, NEPTUNE TOWER, OPPOSITE NEHRU BRIDGE, ASHRAM

ROAD, AHMEDABAD

FILING NO. :________________

CASE NO. : 1063 of 2011

In the Matter of

Filing of the True-up for 2009-10, Annual Performance Review for the FY 2010-11 and Aggregate

Revenue Requirement (ARR), for the Second Control Period of FY 2011-12 to 2015-16 for

determination of SLDC Tariff under MYT Regulation Framework and Part VII (Section 61 to Section

64) of the Electricity Act, 2003 read with the relevant GERC Guidelines and Regulations till date, by

the State Load Dispatch Centre under administration of Gujarat Energy Transmission Corporation

Ltd. (‘GETCO’ or ‘the Licensee’) as the Transmission Licensee.

And

In the Matter Of


Gujarat Energy Transmission Corporation Ltd.,

Sardar Patel Vidyut Bhavan, Race Course,

Vadodara-390007

------ Applicant

And

In the Matter of

Long Term Open Access users or intra state entities (Generating Station/ Distribution licensee/

Transmission licensee/Captive Power plants) of State Transmission network, and/or generating

station/distribution/transmission licensee falls within jurisdiction of SLDC-Gujarat for the purpose

scheduling, accounting and monitoring.

In the Matter Of

1 Dakshin Gujarat Vij Company Ltd., Nana Varacha Road, Kapodra, Surat-Gujarat.

2 Madhya Gujarat Vij Company Ltd., Sardar Patel Vidyut Bhavan, Race Course, Vadodara – 390007

3 Paschim Gujarat Vij Company Ltd., Laxmi Nagar, Nana Mava Road, Rajkot –Gujarat

4 Uttar Gujarat Vij Company Ltd., Vis Nagar Road, Mehsana-384001

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5 Torrent Power Surat Electricity Company Ltd., Tilak-Medan, Station Road, Torrent House Surat

6 Torrent Power Ahmedabad Electricity Company Ltd., Electricity House, Lal Darwaja, Ahemedabad-380 009

7 Kandla Port Trust Ltd. Kandla , Gandhidham

8 Gujarat State Electricity Corporation Ltd, Sardar Patel Vidyut Bhavan, Race Course, Vadodara-390007

9 Gujarat Industries Power Company Ltd., - I P.O. Petrochemical - 391346, Dist.: Vadodara, Gujarat

10 Gujarat Industries Power Company Ltd., - II P.O. Petrochemical - 391346, Dist.: Vadodara, Gujarat

11 Gujarat State Energy Generation Ltd. Block No.15, 3rd Floor, Udyog Bhavan, Sector No.11, Gandhinagar- 382011 Gujarat State Energy Generation Ltd. Village Mora, Post Bhatha, Surat Hazira Road, Dist:Surat

12 Gujarat Industrial Power Corporation Ltd, Surat Lignite Power Plant, Village :Nani Naroli, Ta: Mangrol, Dist:Surat-394110

13 Gujarat Paguthan Energy Corporation Pvt. Ltd., 6th Floor, Chanakya, Off Ashram Road, Ahmedabad – 380009 .

Gujarat Paguthan Energy Corporation Pvt. Ltd. Village :Paguthan, Dist: Bharuch- 392015

14 Essar Power Limited, Essar House, 11, K.K.Marg, Mahalaxmi,Mumbai-400034

15 Gujarat Mineral Development Corporation, “Khanij Bhavan” Near University Ground, 132 Feet Ring Road, Vastrapura-380052

Akrimota Lignite Thermal Power Station , Village :Nani Cher, Ta: Lakhpat District: Kutch, Gujarat.

16 Torrent Power Ltd. Torrent House, Off. Ashram Road, Ahemdedabad-380009 . Torrent Power Ltd., 1147.50 Mw CCPP Sugen, Village : Akhikhol, Ta:Kamrej, Dist: Surat-394155

17 Oil & Natural Gas Corporation Ltd, CPF-Gandhar-393010, Ankleshwar

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18 Oil & Natural Gas Corporation Ltd, Hazira Plant, Surat-394518 Hazira

19 SALSteel Limited, Survey No.254, Paiki, Kidana– Bharpar Road, Village : Bharpara, Taluka: Gandhidham, Dist. Kutch, Gujarat

20 United Phosphorus Limited, 750-GIDC, Post Box No.9, Jhagadiya- 393110

21 Bhandar Power Ltd., 27th KM Surat-Hazira Road, Hazira, Surat-394270

22 Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai 400 021

23 Jindal Centre, 12 Bhikaiji Cama Place, New Delhi 110066

24 Gallantt Metal Limited, 11, CROOKED LANE, SECOND FLOOR KOLKATA - 700 069

25 Hindalco Industries Ltd Century Bhavan, 3rd floor Dr. Annie Besant Road Worli Mumbai 400 030

26 Varrsana Ispat Everest House, 46C, Chowringhee Road, 15 th Floor, R.No. 15B, Kolkata 700 071, India

27 GFL, Dahej INOX Towers, Plot No. 17, Sector 16-A, Noida - 201301 U.P.,(India)

28 Mid India Power & Steel Limited Plot No. 332, New G.I.D.C, Phase II Mithirohar, Gandhidham. Kutch. Gujarat. India. 370201.

29 Essar Power Limited, 27 Kv Surat-Hazira Road, Hazira-394270.

30 J.K. Paper Ltd. 3rd Nehru House, 4, Bahadur Shah Zafar Marg New Delhi – 110002

--------Respondents

True-up for 2009-10





THE APPLICANT NAMED ABOVE RESPECTFULLY SUBMITS THAT

1 Pursuant to the enactment of the Electricity Act, 2003 and the Gujarat Electricity Industry

(Reorganization and Regulation) Act, 2003, Government of Gujarat has issued various

Notifications, Government Resolutions and Transfer Schemes for vesting of the assets,

liabilities, proceedings and personnel from Erstwhile Gujarat Electricity Board (GEB), into six

successor transferee Companies i.e. one Generation Corporation, one Transmission

Corporation and four Distribution Companies. A new company named Gujarat Urja Vikas

Nigam Ltd. (GUVNL) was then incorporated in December, 2004 as per resolution of

Government of Gujarat to carry out the residual functions (including power trading) of the

erstwhile GEB.

2 In pursuance of Sub-section (1) of section 31 of the Electricity Act, 2003, Energy and

Petrochemical Department, Government of Gujarat vide its Notification Ref: GHU-2004, 31-

GEB-1104-2946-K dated the 29th May, 2004 under Section 31 of the Electricity Act, 2003 (

36 of 2003) has notified that the Load Dispatch Centre (LDC) situated in Jambuva, Dist.

Vadodara as the State Load Dispatch Centre , which shall be operated by Gujarat Energy

Transmission Corporation Ltd., Vadodara for the purpose of exercising the powers and

discharging SLDC functions under the said Act w. e. f. 1st June, 2004. As a result, GETCO is

presently carrying out SLDC business in the State.

3 In accordance with the regulation for “Levy and Collection of Fees and Charges by SLDC

Regulations, 2005’ issued by GERC vide Notification No. 5 of 2005” and directives issued by

a GERC dated 27th May’2005 while issuing approval of tariff order of GETCO, proposal for

annual revenue requirement and determination of fees and charges for SLDC business is to

be submitted. While filing the present application for Annual fees and Operating charges

for SLDC Business, GETCO has endeavoured to comply with the various legal and regulatory

directions as applicable and stipulations including the directions of the Hon’ble Commission

in the Business Rules of the Commission, the Guidelines, prior ARR, Tariff Orders and

regulation issued by GERC called as “Levy and Collection of Fees and Charges by SLDC

regulation 2005” dated March 30, 2005.

True-up for 2009-10





4 Petition for Annual fee and Operating charges for SLDC Business being filed has been

discussed and approved by the Board of Directors of GETCO. Chief Engineer of SLDC has

been authorized to execute and file the said petition on behalf of GETCO. Accordingly, the

current petition for Annual fee and Operating Charges for SLDC Business is signed and

verified by, and backed by Shri S.K.Negi, Managing Director of GETCO.

5 Ministry of Power, Government of India has endorsed report of Girish Pradhan committee

and suggested comprehensive action plan, wherein it was mentioned that SLDC has to work

out separate annual revenue requirement. In accordance with the above recommendation,

SLDC had submitted CAPEX plan to Hon’ble commission for approval along with aggregate

revenue requirement for Financial Year 2010-11. In the CAPEX plan, some of the

expenditure is associated with approval of formation of separate company. The formation

of separate company is delayed, therefore, the CAPEX plan is revised for FY 2011-12. The

revised CAPEX plan is submitted herewith for the purpose of determination of SLDC charges

and fees for ensuing year.

6 GETCO has identified asset for State Load Dispatch Centre and separated accounts for the

purpose of computing annual fees and charges for State Load Dispatch Centre after

approval of GETCO Board. Applicant has made bonafied attempt to provide required

information and to comply with directions of Hon’ble commission. However, if any further

information is required in this regard or make available with applicant, we proposed to

allow filing of such additional information consequently amend/revise petition.

7 In accordance with provision 14(iv) of Open Access Regulation issued by GERC provides that

Scheduling and system operation charges payable to State Load Dispatch Centre by Long

Term Open Access Users shall be determined as per regulation of GERC called as “Levy and

Collection of Fees and Charges by SLDC” ( Notification no 5 of 2005). Scheduling and system

operation charges payable to SLDC by Short Term Open Access users are determined as Rs.

1000/- per day or part of the day whereas scheduling charges for Long term open access

users is to be proposed with annual revenue requirement of SLDC.

8 In consideration with the aforesaid facts and circumstances, the Applicant requests that the

Hon’ble Commission:

(a) Consider the petition filed by GETCO for determination of Annual fee and Operating

charges for SLDC Business during control period 2011-12 to 2015-16 and admit on

record.;

True-up for 2009-10





(b) Approve the Aggregate Revenue Requirement for the first control period to allow

recovery of annual fee and charges by SLDC with due consideration of methodology

adopted for recovery of SLDC fees and charges.

(c) Consider addition and/or modification in capital expenditure estimated by SLDC for

control period and approve suitably to meet the anticipated requirement for SLDC

business and its further development.

(d) Allow GETCO within a reasonable time frame to file additional information, if any in

regard to the aforesaid filing;

(e) Treat the filing as complete in view of substantial compliance as also the specific

requests for waivers with justification placed on record and pass such order as the

Hon’ble Commission may deem fit and proper in the facts and circumstances of the

case.

(f) Above said petition has not been raised by the petitioner before in any other competent

forum and no other competent forum is currently seized of the matter and has passed

any orders in relation thereto.

SHRI N.H.SUTHAR

CHIEF ENGINEER



(APPLICANT)

Place: Vadodara

Dated:

True-up for 2009-10





Table of Contents

Chapter 1 : Introduction .............................................................................................................................. 13

1.1 Preamble .......................................................................................................................................... 13

1.2 Introduction and Background ........................................................................................................... 13

1.3 Directives of Hon’ble Commission.................................................................................................... 14

1.4 Recommendations of Girish Pradhan Committee Report ................................................................ 15

Chapter 2 : Executive Summary ............................................................................................................... 18

2.1 Preamble .......................................................................................................................................... 18

2.2 True – up for the FY 2009-10 ........................................................................................................... 18

2.3 Annual Performance Review for the FY 2010-11 ............................................................................. 19

2.4 Multi Year Tariff for the FY 2011-12 to 2015-16 .............................................................................. 20

Chapter 3 : True-up for FY 2009-10 ....................................................................................................... 23

3.1 Preamble .......................................................................................................................................... 23

3.2 Principles for True-up for FY 2009-10 ............................................................................................... 23

3.3 Capital Expenditure for the FY 2009-10 ........................................................................................... 23

3.4 Funding of Capex .............................................................................................................................. 24

3.5 Operation & Maintenance Expenses for 2009-10 ............................................................................ 24

3.6 Interest & Finance Charges .............................................................................................................. 25

3.7 Return on Equity for the year 2009-10 ............................................................................................. 25

3.8 Interest on Working Capital for the FY 2009-10 ............................................................................... 26

3.9 Revenue from other Sources for the FY 2009-10 ............................................................................. 26

3.10 Aggregate Revenue Requirement for the FY 2009-10 ..................................................................... 27

3.11 Revenue Gap for the FY 2009-10 ...................................................................................................... 27

Chapter 4 : Annual Performance Review for the FY 2010-11 ................................................... 29

4.1 Preamble .......................................................................................................................................... 29

4.2 Principles for Annual Performance Review for the FY 2010-11 ...................................................... 29

4.3 Capital Expenditure during FY 2010-11 ........................................................................................... 29

4.4 Funding of Capex for the FY 2010-11 ............................................................................................... 30

4.5 State Generation Capacity for the FY 2010-11 ................................................................................. 31

4.6 Capacity Allocation to Distribution Licensees for the FY 2010-11 ................................................... 32

4.7 Operation & Maintenance Expenses for the FY 2010-11 ................................................................. 34

4.7.1 Employee Cost for the FY 2010-11 ........................................................................................... 35

4.8 Depreciation for the FY 2010-11 ...................................................................................................... 35

4.9 Interest & Finance Charges for the FY 2010-11 ................................................................................ 35

4.10 Return on Equity for the FY 2010-11 ................................................................................................ 36

4.11 Interest on Working Capital for the FY 2010-11 ............................................................................... 36

4.12 Revenue from Other Sources ........................................................................................................... 37

4.13 Aggregate Revenue Requirement for the FY 2010-11 ..................................................................... 37

True-up for 2009-10





4.14 Net Gains/Losses in APR for the FY 2010-11 .................................................................................... 38

Chapter 5 : Multi Year Tariff for the Period 2011-12 to 2015-16 ........................................... 39

5.1 Preamble .......................................................................................................................................... 39

5.2 Aggregate Revenue Requirement ................................................................................................... 39

5.3 Principles for “Recovery and Levy of Charges by SLDC” ................................................................... 41

5.4 Power System Parameters ............................................................................................................... 42

5.4.1 Generation Capacity in State .................................................................................................... 42

5.4.2 Energy Catered in System ......................................................................................................... 42

5.4.3 Available generation ................................................................................................................. 43

5.4.4 Load Curtailment by Distribution Licensees ............................................................................. 44

5.4.5 Frequency Profile ......................................................................................................................... 44

5.5 Implementation of Intra State Availability Based Tariff (ABT) ......................................................... 44

5.6 Implementation of Short Term Open Access (STOA) ....................................................................... 46

5.7 State Generating Capacity ................................................................................................................ 47

5.8 Allocation to Distribution Licensees / Beneficiaries ......................................................................... 48

5.9 Principles for determination of Aggregate Revenue Return ............................................................ 50

5.10 Details of Fixed Costs ........................................................................................................................ 52

5.10.1 Interest and Finance Charges ................................................................................................... 53

5.10.2 Asset Capitalization and Depreciation ...................................................................................... 54

5.10.3 Return on Equity ........................................................................................................................ 54

5.10.4 Provision for Tax ....................................................................................................................... 55

5.11 Total Operation and Maintenance Cost ........................................................................................... 55

5.11.1 Employee Cost .......................................................................................................................... 56

5.11.2 Administration and General Expenses : ................................................................................... 57

5.11.3 Repairs and Maintenance Cost : ............................................................................................... 58

5.11.4 Interest on Working Capital : ................................................................................................... 59

5.11.5 RLDC / WRPC Charges : .............................................................................................................. 60

5.11.6 ULD & C and Other Related Project Charges ........................................................................... 61

5.12 Wide Area Measurement (WAM) System ........................................................................................ 64

5.13 Revenue from Other Sources ........................................................................................................... 65

5.14 Total Aggregate Revenue Requirement ........................................................................................... 66

5.15 Methodology for Recovery Charges for Control Period ................................................................... 67

5.16 Proposed Grid Connection Fee ......................................................................................................... 70

5.17 Proposed SLDC Fees and Charges for the Control Period ................................................................ 71

5.19 Capital Expenditure Plan for the MYT period 2011-12 to 2015-16 ................................................. 71

5.19.1 Rational for Capital Expenditure.............................................................................................. 71

5.19.2 Projection over Control Period 2011-12 to 2015-16 .................................................................... 72

5.19.3 Uncertainties in projecting Capex Plan ........................................................................................ 73

5.19.4 Key Assumptions ........................................................................................................................... 74

5.19.5 Capital Spending during Control Period ....................................................................................... 75

5.19.6 Funding of proposed Capital Expenditure .................................................................................... 77

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Chapter 6 : Compliance of Directives ................................................................................................. 78

6.1 Monthly Reporting of activities relating to STOA users ......................................................................... 78

6.2 Ring Fencing and autonomy of SLDC ...................................................................................................... 78

6.3 Implementation of Intra-State ABT ........................................................................................................ 79

Chapter 7 : Prayer ......................................................................................................................................... 81

8. Annexures ..................................................................................................................................................... 86

8.1 Annexure I – Summary Sheet ................................................................................................................. 87

8.2 Annexure 2 - Statement of Depreciation .............................................................................................. 88

8.3 Annexure 3 – Calculation of Return on Equity ....................................................................................... 89

8.4 Annexure 4 – Calculation of Interest on Loans....................................................................................... 90

8.5 Annexure 5 – Calculation of Interest on Working Capital ...................................................................... 91

8.6 Annexure 6 – Break-up of Employee Cost .............................................................................................. 92

8.7 Annexure 7 – Break-up of Administration & General Expenses............................................................. 93

8.8 Annexure 8 – Break-up of Repairs & Maintenance Expenses ................................................................ 94

8.9 Annexure 9 – Break-up of Operation & Maintenance Expenses ............................................................ 95

8.10 Annexure 10 – Break-up of Depreciation ............................................................................................. 96

8.11 Annexure 11 – Generating Capacity ..................................................................................................... 97

8.12 Annexure 12 – Allocation Capacity to LTOA Users ............................................................................... 99

8.13 Annexure 13 – Power Station Wise Allocation to Distribution Licensees .......................................... 100

8.14 Annexure 14 – Revised Capital Expenditure Plan of SLDC ................................................................. 101

8.15 Annexure 15 : Income from SLDC Fees & Charges in the FY 2009-10 ................................................ 102

True-up for 2009-10





List of Tables

Table 1: True-up for FY 2009-10. ..................................................................................................................... 18

Table 2 : Summary of Net Gains / Losses arising due to true-up for the FY 2009-10 .................................... 19

Table 3 : APR for FY 2010-11............................................................................................................................ 19

Table 4 : Summary of Gains / Losses ............................................................................................................... 20

Table 5: Multi Year Tariff for the Period 2011-12 to 2015-16 ........................................................................ 20

Table 6 : Proposed SLDC Fees & SLDC Charges for MYT 2011-12 to 2015-16 ................................................ 21

Table 7 : Capital Expenditure for the FY 2009-10 ........................................................................................... 23

Table 8 : Funding of the Capex for the FY 2009-10 ......................................................................................... 24

Table 9 : Operation & Maintenance Expenses for the FY 2009-10 ................................................................ 24

Table 10 : Employee Cost for the FY 2009-10 ................................................................................................. 25

Table 11 : Interest & Finance Charges for the FY 2009-10.............................................................................. 25

Table 12 : Return on Equity for the FY 2009-10 .............................................................................................. 26

Table 13 : Interest on Working Capital for the FY 2009-10 ............................................................................ 26

Table 14 : Revenue from Other Sources for the FY 2009-10 .......................................................................... 27

Table 15 : Aggregate Revenue Requirement for the FY 2009-10 .................................................................. 27

Table 16 : Revenue Gap for the FY 2009-10 .................................................................................................... 28

Table 17 : Capital Expenditure for the FY 2010-11 ......................................................................................... 30

Table 18 : Funding of the Capex for the FY 2010-11 ....................................................................................... 31

Table 19 : State Generation Capacity for the FY 2010-11 ............................................................................... 32

Table 20 : Capacity Allocation to Distribution Licensees for the FY 2010-11 ................................................ 33

Table 21 : Operation & Maintenance Expenses for the FY 2010-11 .............................................................. 35

Table 22 : Depreciation for the FY 2010-11..................................................................................................... 35

Table 23 : Interest & Finance Charges for the FY 2010-11.............................................................................. 36

Table 24 : Return on Equity for the FY 2010-11 .............................................................................................. 36

Table 25 : Interest on Working Capital for the FY 2010-11 ............................................................................ 37

Table 26 : Revenue from Other Sources for the FY 2010-11 .......................................................................... 37

Table 27 : Aggregate Revenue Requirement for the FY 2010-11 ................................................................... 38

Table 28 : Net Gains / Losses arising out of APR for the FY 2010-11 ............................................................. 38

Table 29 : Net ARR for 2010-11 & Control Period 2011-12 to 2015-16 .......................................................... 39

Table 30 : Generation Capacity of the State ................................................................................................... 42

Table 31 : Anticipated Energy catered for the period 2010-11 to 2015-16 ................................................... 43

Table 32 : Generation Availability ................................................................................................................... 43

Table 33 : Projected Load Curtailment during MYT period 2010-11 to 2015-16 ........................................... 44

Table 34 : Frequency Profile during the year 2010-11.................................................................................... 44

Table 35 : Open Access Approved during FY 2008-09................................................................................... 46

Table 36 : Open Access Approved during FY 2009-10………………………………………………………………………………..46

Table 37 : Open Access Approved during FY 2010-11 (upto 25.10.10)……………………………………………………….47

Table 38 : Open Access Approved from FY 2008-09 to 2010-11 (upto 25.10.10)………………………………………..47

Table 39 : Projected State Generating Capacity for the period 2010-11 to 2015-16…………………………………..48

Table 40 : Projected Allocation to Distribution Licensees/Beneficiaries for the period 10-11 to 15-16……..49

Table 41 : Projected Interest & Finance Charges for the Period 2010-11 to 2015-16………….……………………………..53

Table 42 : Projected Depreciation for the Period 2010-11 to 2015-16……………………………………………………….54

Table 43 : Projected Return on Equity for the period 2010-11 to 2015-16…………………………………………………55

Table 44 :Summary of Manpower at SLDC & Sub LDCs………………………………………………………………………………56

Table 45 : Projected Employee Cost for the period 2010-11 to 2015-16……………………………………………………57

Table 46 : Projected A&G Expenses for the period 2010-11 to 2015-16…………………………..……………………….58

Table 47 : Projected Repairs & Maintenance Expenses for the period 2010-11 to 2015-16………………………59

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Table 48: Projected Interest on Working Capital for the period 2010-11 to 2015-16…………………….………..60

Table 49 : Projected WRPC Charges for the period 2010-11 to 2015-16…………………………………………….…….61

Table 50:Proposed Cost of AMC for ULDC for the period 2010-11 to 2015-16………………………………….……..62

Table 51: AMC for Wideband Telecommunication Eqpt. For the period 2010-11 to 2015-16………….….…..62

Table 52 : Back-up Communication Link………………………………………………………………………………………….…….…63

Table 53 : Shifting of SLDC under ULD &C Scheme………………………………………………………………………….…..……63

Table 54: Projected ULDC & Other Related Project Charges for the period 2010-11 to 2015-16….…..……..64

Table 55 : Projected WAM Charges for the period 2010-11 to 2015-16……………………………………………………65

Table 56 : Projected Revenue from Other Sources for the period 2010-11 to 2015-16…………………………….65

Table 57 : Projected Aggregate Revenue Requirement for the period 2010-11 to 2015-16……………………..66

Table 58 : Projected Operation & Maintenance Expenses for the period 2010-12 to 2015-16…………………67

Table 59:Proposed SLDC Fees & Charges for the period 2011-12 to 2015-16……………………………………..……71

Table 60 : Proposed Capex Plan for the period 2011-12 to 2015-16…………………………………………………..…….71

Table 61 :Break-up of Capex Plan for the Control Period 2011-12 to 2015-16…………………………………..……..77

Table 62 : Funding of the Proposed Capex for the Control Period 2011-12 to 2015-16……………………..……..77

True-up for 2009-10





Abbreviations

1. GETCO Gujarat Energy Transmission Corporation Limited 2. MW Mega Watt 3. ARR Aggregate Revenue Requirement 4. MYT Multi Year Tariff 5. FY Financial Year 6. GSECL Gujarat State Electricity Corporation Limited 7. GEB Gujarat Electricity Board 8. GoG Government of Gujarat 9. Control Period FY 2011-12 to 2015-16 10. GERC Gujarat Electricity Regulatory Commission 11. CERC Central Electricity Regulatory Commission 12. O&M Operation & Maintenance 13. GUVNL Gujarat Urja Vikas Nigam Limited 14. KV Kilo Volt 15. MVA Mega Volt Ampere 16. S/S Sub Station 17. Ckt-Km Circuit Kilometer 18. MGVCL Madhya Gujarat Vij Company Limited 19. PGVCL Pashchim Gujarat Vij Company Limited 20. UGVCL Uttar Gujarat Vij Company Limited 21. DGVCL Dakshin Gujarat Vij Company Limited 22. GSEG Gujarat State Energy Generation Limited 23. TPAECL Torrent Power Ahmedabad Electricity Company Ltd. 24. TPSECL Torrent Power Surat Electricity Company Ltd. 25. KPTL Kandla Port Trust Ltd. 26. ULD &C Unified Load Dispatch & Control 27. WRPC Western Region Power Committee 28. WRLDC Western Region Load Dispatch Centre 29. TPL Torrent Power Ltd. 30. SCADA Supervisory Control and Data Acquisition System. 31. SLDC State Load Dispatch Centre 32. Sub-LDC Sub Load Dispatch Centre established under ULD&C scheme 33. Px Power Exchange specified by CERC 34. CPP Captive Power Plant 35. PPA Power Purchase Agreement 36. STOA Short Term Open Access 37. LTOA Long Term Open Access 38. OA Open Access ( under STOA and/or LTOA) 39. CAPEX Capital Expenditure 40. REA Regional Energy Account issued by WRPC 41. SEA State Energy Account issued by SLDC 42. UI Unscheduled Interchange 43. WAM Wide Area Measurement System 44. GOI Government of India 45. CEA Central Electricity Authority

True-up for 2009-10





Chapter 1 : Introduction

1.1 Preamble

This chapter provides a background accompanying with the SLDC functions and determination

of SLDC charges & fees consequent upon filing this petition.

1.2 Introduction and Background

1.2.1 In pursuant to the Gujarat Electricity Industry (Reorganization and Regulation) Act 2003

(herein after called as “Act”) in May 2003 for the reorganization of the entire power sector

in the State of Gujarat notified by Government of Gujarat (hereinafter referred to as GoG),

erstwhile GEB was divided into seven different entities wherein all its transmission related

assets ( including Load Dispatch Centre) were transferred to newly created entity called as

Gujarat Energy Transmission Corporation Ltd, herein referred as ‘GETCO’.

1.2.2 The Electricity Act, 2003 provides that the State Government shall have to established a

State Load Despatch Centre (SLDC). Subsection (2) of the Section 31 provides that the said

SLDC shall be operated by a Government company/authority/corporation constituted by or

under any State Act and that until such company/authority/corporation is notified by the

State Government, the State Transmission Utility (STU) shall operate SLDC. The

Government of Gujarat has then notified SLDC vide reference GHU-2004-31-GEB-1104-

2946-K dated the 29th May, 2004 under Section 31 of the Electricity Act, 2003 ( 36 of 2003)

that the Load Dispatch Centre (LDC) situated in Jambuva , Dist. Vadodara as the State Load

Dispatch Centre, which shall be operated by Gujarat Energy Transmission Corporation Ltd.,

Vadodara for the purpose of exercising the powers and discharging the functions under the

said Act w. e. f. 1st June, 2004 for discharging SLDC functions of electricity in the Gujarat

State. Subsequently , SLDC is shifted to Gotri from Jambuva w.e.f. 6th July’2005.

Accordingly, Gujarat Energy Transmission Corporation Ltd. is presently operating SLDC

business in the State.

1.2.3 SLDC-Gujarat has participated into Unified Load Dispatch and Communication Scheme

(herein after called as “ULD&C) scheme approved by Central Electricity Authority (CEA) for

western region. Under this scheme, SLDC Jambuva has been shifted to SLDC Gotri from 6th

July’2005 and commenced operation of three Sub-SLDCs at Gandhinagar, Jambuva and

Jetpur. All those Sub-SLDCs are equipped with sufficient manpower and operated under

direct control of SLDC-Gotri.

True-up for 2009-10





1.2.4 Section 32(3) of the Electricity Act, 2003 provides for levy and collection of such fees and

charges from the generating companies and licensees engaged in the intra-state

transmission of electricity as may be specified by the State Commission. Subsequently after

issuance of Indian Electricity Act’2003, Central Government through its Order 795(E) dated

8th June 2005 has notified “The Electricity (Removal of Difficulty) Sixth Order, 2005”

wherein, it has clarified that SLDC fees and charges may be levied form licensees using intra

State transmission system as specified state commission. It is therefore, appropriate to

recover the SLDC fees and charges as specified by Hon’ble commission vide “Levy and

collection of fees and charges regulation 2005”

1.2.5 In exercise of the powers conferred under Section 181 of the Electricity Act, 2003 (Act 36 of

2003), and all powers enabling it in that behalf, the Gujarat Electricity Regulatory

Commission has issued a regulation for determination of SLDC fees and charges called “Levy

And Collection of Fees and Charges by SLDC Regulations, 2005” on dated 30th March’2005.

Accordingly, SLDC-Gujarat has to submit a petition before GERC with the details of

estimated expenditure after separation of accounts. Since the commercial operation of

ULD&C scheme was not started and expenditure under ULD&C scheme under State portion

was to be validate, the separation of accounts and assets was to remain with GETCO’s

account up to 31st March’2009. Hence, SLDC fees and charges component was factored

within the transmission tariff. As such, all long term open access users within State are

using only GETCO network who are also availing SLDC services, recovery of SLDC charges

and fees through the transmission tariff is acceptable as there is no commercial implication

on long term open access users, because intra state entities availing SLDC services and

GETCO services are same. Therefore tariff proposal of GETCO covers annual revenue

requirement of SLDC for the period of 2006-07 to 2008-09.

1.2.6 Under regulation issued by Hon’ble commission (Regulation 5 of 2005), SLDC-Gujarat has to

file application for approval of aggregate revenue requirement and determination of fees

and charges as per regulation issued by GERC called as “Levy and Collection of Fees and

Charges by SLDC Regulations, 2005”.

1.3 Directives of Hon’ble Commission

1.3.1 In line with recommendation of Girish Pradhan committee endorsed by Ministry of Power,

Government of India regarding separation and ring fencing of SLDCs, Hon’ble GERC had

issued directives for filing separate annual revenue requirement for SLDC from 2009-10.

Accordingly, SLDC/GETCO has taken various initiatives; identify separate assets and capital

expenditure of SLDC-Gujarat.

True-up for 2009-10





1.3.2 In pursuant with the clause 4 of “levy and collection of fees and charges by State load

dispatch centre Regulation 2005” dated March 30, 2005, SLDC-Gujarat has to file an

application / petition with the Commission for annual revenue requirement and for the

determination of the SLDC fees and Charges together with the details of estimated

expenses for the ensuing year.

1.3.3 Further, in pursuant with the clause 4(vi) & 4(viii) of Regulation on levy and collection of

fees and charges by SLDC Regulation 2005, SLDC-Gujarat has to submit proposal for capital

expenditure for approval and prudence checks by commission. SLDC-Gujarat has to further

submit capital investment program for ensuing financial year with the detail of estimates.

Clause 4(vi) and 4(viii) of above said regulation are reproduced as under :

“4(vi) Any proposal for capital expenditure shall be submitted to the Commission. The

Commission will duly approve the proposal after examining the need and applying prudence

checks.

4(viii) The details of capital investment programme for the ensuing financial year shall be

furnished along with the details of estimated expenses.”

1.3.4 In compliance with the GERC Regulations and Guidelines, GETCO, the State Transmission

Utility & Transmission licensee, managing the SLDC business as per order of Government of

Gujarat, herein submits the Petition for determination of annual SLDC fees and charges for

control period along with proposed capital investment program. The capital expenditure

plan is revised for FY 2011-12 and considered for the purpose of determination of ARR of

SLDC for FY 2011-12.

1.4 Recommendations of Girish Pradhan Committee Report

Ministry of Power, GOI has endorsed report of Girish Pradhan committee and had issued

comprehensive action plan for implementation of recommendation made in the report,

wherein it was mentioned that SLDC has to separate annual revenue requirement. This

report is also fully endorsed by State Secretary and Regulatory commission. As per this

report, SLDC-Gujarat has to submit three year CAPEX plan to Hon’ble commission for

approval.

True-up for 2009-10





The recommendations of Girish Pradhan Committee report relevant with filing of ARR and

CAPEX plan are reproduced as under:

Recommendation 1

The committee recommends that the LDCs should be ring-fenced suitably to ensure their

functional autonomy by taking the following steps:

a) Creating a separate representative board structure for governance of LDCs on the

lines of wholly owned subsidiary being created for the independent System operation

of RLDCs and NLDC.

b) The financial accounts should be separated for all LDCs by 31st March 2009 with the

appropriate Electricity Regulatory Commissions (ERC) specifying the fees and charges

payable.

c) Capital Expenditure (CAPEX) plans for modernization of all LDCs during 2009-12

should be submitted and the approval of the respective Electricity Regulatory

Commission (ERC) should be obtained by 31st March 2009.

d) A rolling 5-year CAPEX plans should be prepared by each LDC and got approved by

the respective ERCs to take care of the system expansion, associated real-time data

requirements as well as technological innovations and obsolescence of control centre

equipment.

Recommendation 2

For making LDCs financially self-reliant, the revenue stream suggested by committee for

ERCs is as under:

a) Fees and charges for system operation,

b) Tariff for decision support system and IT infrastructure (ULDC tariff)

c) Operating charges for scheduling, metering and settlement for market layers

The Action Plan suggested for implementation of above said recommendation 2 contains following:

1. Develop the general principles and philosophy for funding LDCs, sharing of

expenditure. Identify revenue streams such as Fees and charges, ULDC tariff, Open

Access, Consultancy services, other income.

True-up for 2009-10





2. Work out the annual revenue requirement and the amounts payable by entities like

generating stations, transmission licensees and load serving entities that have to share

the LDC expenditure as per the ERC order.

3. File a petition before the Appropriate Commission for segregation of revenue streams

for LDCs into fees and charges; ULDC tariff, Open Access, Consultancy charges and

other income

1.5 Pursuant to the directive of Hon’ble commission for filing annual revenue requirement and as

suggested in action plan of Ministry of Power, GOI, SLDC-Gujarat hereby submits revised

CAPEX plan for ensuing year (i.e. for the control period of 2011-12) and Annual Revenue

Requirement for determination of SLDC fees and charges for financial year 2011-12.

1.6 All the figures have been presented in Rupees in Lacs, as the figures are smaller in comparison

of other entities. SLDC requests Hon’ble Commission to accept the same.

True-up for 2009-10





Chapter 2 : Executive Summary

2.1 Preamble

2.1.1 This chapter provides summary of the petition for True-up for the FY 2009-10, Annual

Performance Review for the FY 2010-11 and Multi Year Tariff for the FY 2011-12 to 2015-

16.

2.2 True – up for the FY 2009-10

2.2.1 SLDC has worked out its Aggregate Revenue Requirement for FY 2009-10 as a part of the

True -up for FY 2009-10. SLDC has presented the actual cost components based on audited

annual accounts for FY 2009-10. The detailed comparison of various cost components with

the values approved by the Hon’ble Commission has been worked out in Chapter 3 of the

Petition.

Table 1: True-up for FY 2009-10.

(Rs. In Lacs)

Particulars Approved by Commission

Actual Expenses

Deviation

Employee Cost 552.00 851.79 (299.79)

Repairs & Maintenance 11.00 37.45 (26.45)

Admin & General Expenses 346.00 226.01 119.99

Interest on Working Capital 17.32 15.69 1.63

RLDC Fees & Charges 11.00 12.00 (1.00)

Charges for ULDC & other Related Projects 778.74 777.79 0.95

WAM Charges 20.00 0.00 20.00

Less : Other Income 27.00 219.78 192.78

Operating Cost Budget (a) 1709.06 1700.95 8.11

Depreciation 43.00 63.44 (20.44)

Interest & Finance Charges 55.72 43.00 12.72

Return on Equity 45.85 39.52 6.33

Total Fixed Costs 144.57 145.96 (1.38)

Less : Expenses Capitalized 0.00 0.00 -

Capital Cost Budget (b) 144.57 145.96 (1.38)

Total Revenue Budget (a+b) 1853.63 1846.91 6.73

2.2.2 Based on the above figures SLDC has summarized net gains / losses. Summary of the same

is mentioned in the table given below:

True-up for 2009-10





Table 2 : Summary of Net Gains / Losses arising due to true-up for the FY 2009-10

(Rs. In Lacs)

Sr. Particulars 2009-10

1 Aggregate Revenue Requirement Approved by the Commission for the FY 2009-10 1,853.63

2 Gains/Losses due to Actual Expenses 6.73

3 Revised ARR for the FY 2009-10 1,846.91

4 Actual Revenue from SLDC Fees & Charges

436.92

5 Revised Gap after taking account of Gains/Losses arising out of Actual Expenses 1,409.99

2.3 Annual Performance Review for the FY 2010-11

2.3.1 SLDC has projected its Revised Aggregate Revenue Requirement for FY 2010-11 as a part of

the Annual Performance Review process of FY 2010-11, SLDC has presented the revised

estimates for various cost components based on annual accounts for FY 2009-10. The

detailed comparison of various cost components with the values approved by the Hon’ble

Commission vide Tariff Order dated 31st March, 2010 for Annual Performance Review for

FY 2009-10 & Aggregate Revenue Requirement for FY 2010-11 has been worked out in

Chapter 4 of the Petition.

Table 3 : APR for FY 2010-11

(Rs. In Lacs)


Estimated

Variation 2010-11

Employee Cost 610.00 818.74 (208.74)


Admin & General Expenses 260.00 276.50 (16.50)

Interest on Working Capital 18.00 29.19 (11.19)

RLDC Fees & Charges 12.00 11.24 0.76


WAM Charges 22.00 22.66 (0.66)


Operating Cost Budget (a) 1858.00 1882.40 (24.40)

Depreciation 63.00 48.39 14.61


Return on Equity 66.00 67.26 (1.26)

Total Fixed Costs 214.00 199.43 14.63


Add : Provision for Tax 10.00 22.86 (12.86)

Capital Cost Budget(b) 224.00 222.29 1.71

Total Revenue Budget (a+b) 2082.00 2104.70 (22.70)

True-up for 2009-10





2.3.2 Based on the above figures SLDC has summarized net gains / losses. Summary of the same

is mentioned in the table given below

Table 4 : Summary of Gains / Losses

(Rs. In Lacs)



2 Gains/Losses due to Actual Expenses (22.70)


4 Approved Revenue Requirement for SLDC 2,082.00

5 Revised Gap after taking account of Gains/Losses (22.70)

2.4 Multi Year Tariff for the FY 2011-12 to 2015-16

2.4.1 SLDC has projected its Multi Year Tariff for the period 2011-12 to 2015-16 on the basis of

Annual Performance Review for the FY 2010-11. Details of the same have been provided in

the Chapter 5 of this petition.

2.4.2 on the basis of the Annual Performance Review, SLDC has proposed Multi Year Tariff for the

period 2011-12 to 2015-16 in the table mentioned below :

Table 5: Multi Year Tariff for the Period 2011-12 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Employee Cost 818.74 900.61 990.67 1089.74 1198.71 1318.58

Repairs & Maintenance 71.10 78.21 86.03 94.63 104.10 114.51

Admin & General Expenses 276.50 290.62 305.87 322.34 340.13 359.34

Interest on Working Capital 29.19 30.63 31.89 32.85 34.65 25.28

RLDC Fees & Charges 11.24 12.36 13.60 14.96 16.46 18.10

Charges for ULDC & other Related Projects 814.98 814.98 814.98 814.98 817.57 820.41

WAM Charges 22.66 22.66 22.66 22.66 22.66 22.66

Less : Other Income 162.00 174.96 188.96 204.07 220.40 238.03

Operating Cost Budget (a) 1882.40 1975.12 2076.75 2188.08 2313.87 2440.85

Depreciation 48.39 99.39 123.26 132.58 135.92 137.71

Interest & Finance Charges 83.78 112.40 136.11 148.99 150.45 148.06

Return on Equity 67.26 88.49 108.55 123.75 133.14 140.40

Total Fixed Costs 199.43 300.29 367.92 405.32 419.50 426.18

Less : Expenses Capitalized 0.00 0.00 0.00 0.00 0.00 0.00

Add : Provision for Tax 22.86 30.08 36.90 42.06 45.25 47.72

Capital Cost Budget(b) 222.29 330.36 404.81 447.38 464.75 473.90

Total Revenue Budget (a+b) 2104.70 2305.48 2481.56 2635.46 2778.62 2914.75

True-up for 2009-10





2.4.3 Based on the above table, SLDC has proposed SLDC Fees & SLDC Charges for the Multi Year

Tariff Period 2011-12 to 2015-16 as under :

Table 6 : Proposed SLDC Fees & SLDC Charges for MYT 2011-12 to 2015-16

Particulars

Proposed

2012-13 2013-14 2014-15 2015-16 2011-12

SLDC Operating Charges Budget 1975.12 2076.75 2188.08 2313.87 2440.85

Total MW Capacity 14904.24 16469.24 17809.24 22309.24 27805.04

Total MW Allocation 20607.05 23531.65 25544.85 30784.85 36998.85

SLDC Charges (Rs/MW/Month) 463.50 432.65 420.58 363.17 313.88

SLDC Capital Charges Budget 330.36 404.81 447.38 464.75 473.90

SLDC Fees (Rs/MW/Half Year) 465.15 506.00 515.96 437.67 365.64

Grid Connection Fees 100000.00 100000.00 100000.00 100000.00 100000.00

2.4.3 The Aggregate revenue requirement computed herein above is exclusive of Foreign

Exchange Rate Variation (if applicable), any statutory taxes, levies, duties, cess, filing fees or

any other kind of imposition(s) and/ or other surcharges etc. whatsoever imposed/ charged

by any Government (Central/State) and / or any other local bodies/ authorities/regulatory

authorities in relation to SLDC functions, environmental protection and the same shall be

borne and additionally paid by the beneficiaries to the petitioner and the same shall be

charged in the monthly bills raised by the petitioner on the beneficiaries. The petitioners

shall also claim the filing fee in the same manner.

2.4.4 The Aggregate Revenue Requirement herein above is inclusive of operation & maintenance

expenses, employee expenses, administration & general expenses, interest on loan, ULD&C

and other related expenses, WAM charges, RLDC/WRPC charges, depreciation, interest on

working capital and return on equity. The O&M expenses for control period 2011-12 to

2015-16 are calculated by taking base of estimated O&M expenses for the current year

2010-11.

2.4.5 The expenditure of ULD&C and other related scheme like back-up communication to

ULD&C, maintenance cost of wide band Communication and cost associated with shifting of

SLDC from Bhilai to Raipur is added separately into O&M expenses. The charges of ULD&C

scheme is calculated based on the approval of charges for Unified Load Despatch &

Communication Scheme in Western Region for the period from 1.2.2006, given by CERC on

7th November’08 against petition filed by Power Grid Corporation Ltd. The cost of other

related projects are included as approved in the Western Region Power Committee after

taking consent of WR constituents including Gujarat. The assets of all above projects are

owned by Power Grid Corporation of India Ltd. and GETCO is sharing the cost of above.

Therefore, it is appropriate to include it as separate expenses.

True-up for 2009-10





2.4.6 The ARR has been calculated after deducting the other Income i.e. income earned from

sources accompanying with functions specified under Section 32 of Electricity Act’2003.

SLDC-Gujarat has generated other income from application charges under Short term open

access, scheduling charges, disposal of obsolete inventories, interest from staff loan etc.

True-up for 2009-10





Chapter 3 : True-up for FY 2009-10

3.1 Preamble

3.1.1 This section underlines performance of SLDC for FY 2009-10. In line with the provisions of

the MYT regulations, SLDC hereby submits True - up comparing the actual performance of

SLDC during FY 2009-10 with the forecast approved by the Hon’ble Commission vide Tariff

Order dated 31st March, 2010 for Annual Performance Review for FY 2009-10 & Aggregate

Revenue Requirement for FY 2010-11. Accordingly, the present application covers True up

for FY 2009-10.

3.2 Principles for True-up for FY 2009-10

3.2.1 MYT Tariff Regulations, 2007 specifies that the Hon’ble Commission shall undertake the

True Up of licensee for the past financial year i.e. FY 2009-10 based on the actual

performance of the last year with the approved forecast for such year.

3.2.2 In line with the provisions under MYT Regulations, SLDC has filed this True Up application

for FY 2009-10, wherein, SLDC has presented actual audited data for the FY 2009-10. SLDC

is submitting audited actual data for FY 2009-10 vis-à-vis its comparison with approved

figures by the Hon’ble Commission.

3.2.3 Accordingly, actual data for revenue and gap for FY 2009-10 are given in the following

paragraphs of this chapter.

3.3 Capital Expenditure for the FY 2009-10

3.1.1 Capital Expenses proposed to the commission for the FY 2009-10 were Rs. 1260 lacs. As

SLDC was to be considered as a separate entity, the Capital Expenses were on a higher side

in the FY 2009-10. The Proposed Capital Expenses in the FY 2009-10 were as under :

Table 7 : Capital Expenditure for the FY 2009-10

(Rs in Lacs)

Particulars Capital

Expenses Capitalization

Capital Expenses 1260.00 630.00

True-up for 2009-10





3.4 Funding of Capex

3.4.1 The funding of the Capex has been considered on normative Debt-Equity ratio of 70:30. The

details of the Capex Funding is given in the table below :

Table 8 : Funding of the Capex for the FY 2009-10

(Rs. In Lacs)

Particulars Capital

Expenses Capitalization

Capital Expenses 1260.00 630.00

Funding through Debt 441.00

Funding through Equity 189.00

3.5 Operation & Maintenance Expenses for 2009-10

3.5.1 Actual Maintenance Expenses of SLDC at the end of the FY 2009-10 were Rs.1115.25 lacs

against approved Rs.909.00 by Commission. The detail comparison of the O&M Expenses is

given in the table below :

Table 9 : Operation & Maintenance Expenses for the FY 2009-10

(Rs. In Lacs)


Actual Expenses Deviation

Employee Cost 552.00 851.79 (299.79)


Admin & General Expense 346.00 226.01 119.99

Operating Cost Budget 909.00 1115.25 (206.25)

3.5.2 Increase in the Employees cost in mainly due to inclusion of “terminal benefits” in the

books of SLDC. Earlier these expenses were recorded in the books of GETCO. Expenses

pertaining to ‘revision in pay scale’ don’t appear in the books of SLDC as it has been

accounted by GETCO in its books of Accounts. Details of Employee Cost for the year 2009-

10 has been given in the table below :

True-up for 2009-10





Table 10 : Employee Cost for the FY 2009-10

(Rs. In Lacs)



Basic Employee Cost 368.00 543.12 (175.120)

Conveyance & Allowances 12.00 19.49 (7.490)

Terminal Benefit 46.00 286.73 (240.730)

Staff Welfare Expenses 3.00 2.45 0.550

Arrears due to Revision of Scale 123.00 0.00 123.000

Additional Manpower 0.00 0.00 -

Total Employee Cost 552.00 851.79 (299.790)

3.6 Interest & Finance Charges

3.6.1 Total Interest & Finance Charges incurred by SLDC in the FY 2009-10 were in line with the

approval of Interest & Finance Charges by the Commission. Details of Interest &Finance

Charges for the 2009-10 has been given below in the table :

Table 11 : Interest & Finance Charges for the FY 2009-10

(Rs. In Lacs)



Opening Loans 350.00 300.00 50.00

Addition During Year 441.00 448.40 (7.40)

Repayment During the Year 75.00 95.00 (20.00)

Closing Loans 716.00 653.40 62.60

Average Loans 533.00 476.70 56.30

Interest on Loans 55.72 43.00 12.72

Total Interest & Finance Charges 55.72 43.00 12.72

3.7 Return on Equity for the year 2009-10

3.7.1 Return on Equity for the FY 2009-10 is in the line with the amount approved by the

commission for the FY 2009-10. On the basis of the normative debt to equity ratio, the

equity addition for the FY 2009-10 has been calculated on the actual Capital expenditure of

Rs. Rs. 630 lacs which amounts to be Rs. 189 lacs. The return on equity has been calculated

@14%, as instructed by the commission, on the equity addition in of Rs. 189 lacs. Return on

Equity for the FY 2009-10 comes out to be Rs.46 lacs. Details are mentioned in the table

given below :

True-up for 2009-10





Table 12 : Return on Equity for the FY 2009-10

(Rs. In Lacs)

Particulars Approved by Commission Actual Deviation

Opening Equity Capital 233.00 161.54 71.460

Addition During the Year 189.00 241.44 (52.440)

Closing Equity 422.00 402.98 19.020

Average equity 327.50 282.26 45.240


3.8 Interest on Working Capital for the FY 2009-10

3.8.1 Actual Interest on Working Capital for the FY 2009-10 computed to be Rs.15.69 Lacs which

was almost equal to the amount approved by commission for the Interest on Working

capital of for the FY 2009-10, which was Rs.17.32 Lacs. There was a minor deviation of Rs.

1.63 Lacs. For the purpose of calculation of the Interest on Working Capital SLDC has

Considered SBI PLR rate as on 1st April 2004 i.e 10.25%, which has been approved by the

commission. The details are given in the table mentioned below.

Table 13 : Interest on Working Capital for the FY 2009-10

(Rs. In Lacs)

Particulars Approved by Commission Actual Deviation

O & M Expenses 76.00 37.45 38.550

Maintenance and Spares 20.00 46.00 (26.000)

Receivables 73.00 69.66 3.340

Total Working Capital 169.00 153.11 15.890

Rate of Interest 10.25% 10.25% -

Interest on working capital 17.32 15.69 1.629

3.9 Revenue from other Sources for the FY 2009-10

3.9.1 Revenue from other sources for SLDC for the FY 2009-10 stood at Rs. 219.78 lacs as against

approved by the Commission at Rs. 27 Lacs. The gap between the actual figure and of

approved by the commission is Rs. 192.78 lacs. The difference is mainly due to increase in

Miscellaneous Receipts, Scheduling Charges and Application/Registration Charges. Details

pertaining to Revenue from Other Sources are provided in the table below :

True-up for 2009-10





Table 14 : Revenue from Other Sources for the FY 2009-10

(Rs. In Lacs)

Sl . No. Particulars

Approved by Commission

Actual Revenue Deviation

1 Interest on Staff Loans & Advances 4.00 5.17 1.17

2 Miscellaneous Receipts 10.00 111.00 101.00

3 Scheduling Charges 8.00 80.23 72.23

4 Application / registration Charges 5.00 23.38 18.38

Total 27.00 219.78 192.78

3.10 Aggregate Revenue Requirement for the FY 2009-10

3.10.1 Based on the figures mentioned above, the table below summarizes Aggregate Revenue

Requirement of SLDC for the FY 2009-10 along with figures approved by the commission.

Table 15 : Aggregate Revenue Requirement for the FY 2009-10

(Rs. In Lacs)


Actual Expenses

Deviation

Employee Cost 552.00 851.79 (299.79)


Admin & General Expenses 346.00 226.01 119.99

Interest on Working Capital 17.32 15.69 1.63

RLDC Fees & Charges 11.00 12.00 (1.00)

Charges for ULDC & other Related Projects

778.74 777.79 0.95

WAM Charges 20.00 0.00 20.00


Operating Cost Budget (a) 1709.06 1700.95 8.11

Depreciation 43.00 63.44 (20.44)



Total Fixed Costs 144.57 145.96 (1.38)


Capital Cost Budget (b) 144.57 145.96 (1.38)

Total Revenue Budget (a+b) 1853.63 1846.91 6.73

3.11 Revenue Gap for the FY 2009-10

3.11.1 The table below summarizes Annual Revenue Requirement and Revenue Gap after taking

into considerations actual expenses for the FY 2009-10. As SLDC has started to levy SLDC

Fess & SLDC Charges on LTOA from Jan’10, the amount received on account of SLDC Fees &

SLDC Charges is only Rs.540.51 lacs.

True-up for 2009-10





Table 16 : Revenue Gap for the FY 2009-10

(Rs. In Lacs)



2 Gains/Losses due to Actual Expenses 6.73


4 Actual Revenue from SLDC Fees & Charges 436.92

5 Revised Gap after taking account of Gains/Losses arising out of Actual Expenses 1,409.99

3.11.2 It is requested to the Hon’ble Commission to approve above revised ARR and allow SLDC to

pass on the Revenue Gap obtained after treating gains/losses for FY 2009-10 in the next

financial year

True-up for 2009-10





Chapter 4 : Annual Performance Review for the FY 2010-11

4.1 Preamble

4.1.1 This section outlines performance of SLDC for FY 2010-11. In line with the provisions of the

MYT regulations, SLDC hereby submits detailed Annual Performance Review for FY 2010-11

comparing the revised estimates for SLDC during FY 2010-11 with the forecast approved by

the Hon’ble Commission vide Tariff Order dated 31st March, 2010 for Annual Performance

Review for FY 2009-10 & Aggregate Revenue Requirement for FY 2010-11. Accordingly, the

present application covers Annual Performance Review for FY 2010-11.

4.2 Principles for Annual Performance Review for the FY 2010-11

4.2.1 MYT Tariff Regulations, 2007 specifies that the Hon’ble Commission shall undertake the

Annual Review of the performance of licensee for the current financial year i.e. FY 2010-11

based on the actual performance of the first of the half of current year and estimated

performance of the second half of the current year with the approved forecast for such

year.

4.2.2 In line with the provisions under MYT Regulations, SLDC has filed this Annual Performance

Review application for FY 2010-11, wherein, SLDC has presented actual data for first half of

the FY 2010-11 and subsequently, projected revised estimates for FY 2010-11. Thus,

information provided in the Annual Performance Review for FY 2010-11 is on the basis of

unaudited actual performance of first half of the year and estimated performance of the

remaining part of the year. SLDC is submitting revised estimates for FY 2010-11 vis-à-vis its

comparison with approved figures by the Hon’ble Commission.

4.2.3 Accordingly, revised estimates of the Aggregate Revenue Requirement, revenue and gap for

FY 2010-11 are given in the following paragraphs of this chapter.

4.3 Capital Expenditure during FY 2010-11

4.3.1 For the FY 2010-11, SLDC has been granted a Capex of Rs. 983 Lacs. The rationale behind

investment in the Capex is to strengthen its infrastructure so that SLDC can achieve the

objective of monitoring grid operation and power management in an efficient way. In

addition to that these investments are also necessary as SLDC is going to be a separate

company. Out of total Capex approved of Rs. 983 lacs, it is estimated that Rs.516.20 will be

capitalized by the end of this Financial Year, i.e. 2010-11. The remaining figure of Rs. 466.80

lacs can’t be capitalized as this figure is mainly related to SLDC Building Development and

can only be utilized if GOG grants permission of forming SLDC as a separate company.

Currently the approval is pending with GOG. Figures of Capex approved for the FY2010-11

and Capitalization is given in the table below :

True-up for 2009-10





Table 17 : Capital Expenditure for the FY 2010-11

(Rs. In Lacs)



to be Capitalized till 30th March'10

A

1 Land Acquisition Cost 10.00 10.00

2 Asset Separation & Associated Capital Expenditure 0.00 0.00

B Augmentation/Upgradation of Existing System

1 Energy Reporting System 0.00 0.00

2 Outage Management System 0.00 1.00

3 IT security System 0.00 0.00

4 Data Pooling System 80.00 80.00

5 Commercial & Accounting System 2.00 2.00

6 Information System 5.00 2.00

7 Energy Accounting Software 60.00 10.00

8 Strengthening of Communication Channels 225.00 190.00

9 Strengthening of Commerce & Billing Centre 0.00 0.00

10 Website Improvement & Upgradation 4.00 0.00

11 Other Minor Projects 12.00 4.00

C Additional System / Software Planning

1 Centralized database Storage System 8.00 4.50

2 Simulator : Offline study System Tools 20.00 12.00

3 Remote Access System 1.00 0.00

4 e-Bidding & Electronic Cash Transfer System 1.00 0.00

5 Reporting Tools 2.00 0.00

6 IT Infrastructure 10.00 0.00

7 Application Software 10.00 4.20

8 Video Conferencing System Between SLDC & RLDC 0.00 0.00

9 Other Minor Projects 12.00 5.00

D Other Capital Planning

1 Expansion of SLDC Building & Related Expenditures 150.00 10.00

2 Corporate Office Building & Related Capital Expenditure 150.00 6.00

3 Control Room Wallboard Development & Partitioning 1.00 1.00

4 Limit Deviation Tracking System 0.00 0.00

E Other IT Related Softwares

1 Software 10.00 7.50

2 Computer Network Upgradation 5.00 2.00

F Other Infrastructure Facilities

1 Office Equipment 50.00 35.00

2 Staff Recreation Facilities 25.00 0.00

G Additional Expenditure

1 Extension of Visual Display Unit and other Up-gradation 130.00 130.00

Total Capital Expenditure 983.00 516.20

4.4 Funding of Capex for the FY 2010-11

4.4.1 The funding of the Capex has been considered on normative Debt-Equity ratio of 70:30. The

details of the Capex Funding is given in the table below :

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Table 18 : Funding of the Capex for the FY 2010-11

(Rs. In Lacs)

Particulars Capex

Estimated Capex 516.20

Funding through Debt 361.34

Funding through Equity 154.86

4.5 State Generation Capacity for the FY 2010-11

4.5.1 In accordance with clause 4(iv) of regulation 5 of 2005 issued by GERC, SLDC fees and

charges is to be recovered from generating station. It comprises generating capacity of

State generating stations falls within jurisdiction of SLDC-Gujarat.

4.5.2 The generating capacity of Torrent power is considered for the purpose of Computing SLDC

charges because of separate capacity connected with State grid. Though Torrent generating

station is considered as part of Torrent Power Ltd., the capacity addition is to be considered

as integral part of Gujarat grid for all purpose of operational treatment. Hence, such

capacity is to be considered while calculation of aggregate revenue requirement of Gujarat

grid under provision of Indian Electricity Act’2003.

4.5.3 As per Section 6.4 (Demarcation of Responsibilities) sub section 2(C)(IV), of the Indian

Electricity Grid Code 2010 and CERC order dated 28th July’10 of Petition No. 220/2009,

Control area of Adani Power Plant (4640MW) has been transferred Gujarat from 2nd August,

2010.

4.5.4 Mega Power Plant, Sugen (1147.50 MW) is supplying power to intra state entities (except

100 MW to MPPTCL is under consideration). Hence as per CERC order dated 7th May’2009

and revised Indian Electricity Grid Code issued by CERC for determination of control area ,

entire capacity of Sugen Power Plant is considered within jurisdiction of SLDC-Gujarat.

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Table 19 : State Generation Capacity for the FY 2010-11

(in MW)

Sl. No. Generating Capacity (

F.Y. 2010-11

Actuals till 30th Sept '10

Estimated till 31st March '11

1 GSECL 5216 5216

2 GIPCL-I 145 145

3 GIPCL-II 165 165

4 GIPCL-SLPP 250 250

5 GIPCL-SLPP Extn. 250 250

6 ESSAR 300 300

7 ESSAR, Vadinar 0 0

8 ESSAR Salaya, Phase II 0 0

9 GPEC 655 655

10 GSEG 156 156

11 GSEG HAZIRA Extn. 0 350

12 GMDC - Akrimota 250 250

13 ADANI, MUNDRA -I & II 500 500

14 ADANI, MUNDRA -III & IV 0 500

15 ADANI, MUNDRA -V & VI 0 0

16 GPPC, Pipavav 0 350

17 GPPC, Pipavav - II 0 0

18 SHAPOORJI PALLONJI, Kodinar 0 0

19 KSK MAHANANDI, Chattisgarh 0 0

20 BECL, Padva - I & II 0 0

21 CPP (W) 838 838

22 WIND FARM 1891 2091

23 SOLAR PROJECTS 0 46

24 MINI HYDEL PROJECTS 3 6

25 BAGASSE PROJECTS 0 0

TOTAL 10619 12068

4.6 Capacity Allocation to Distribution Licensees for the FY 2010-11

4.6.1 Distribution licensee of State has executed long term agreement with supplier and wind

farm generators for purchase of power. The distribution licensee has further obtained long

term open access to the extent of agreement made with supplier. The capacity for which

agreement executed by distribution licensee with GUVNL and wind farm generators is

considered for recovery of SLDC fees and charges.

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Table 20 : Capacity Allocation to Distribution Licensees for the FY 2010-11

(in MW)

Sl. No. LTOA Users/Beneficiaries

Actuals till Sept 30'10

Estimated till March 31'11

1 DGVCL 2935 3391

2 MGVCL 1513 1748

3 UGVCL 3160 3651

4 PGVCL 3849 4447

5 GSFC FIBRE 5 5

6 GSFC POLYMER 2 2

7 GSFC SIKKA 5 5

8 GSFC VADODARA 47 47

9 GACL VADODARA 41 41

10 GAIL 2 2

11 DIU & DAMAN 70 70

12 DADRA NAGAR HAVELI 155 155

13 ONGC HAZIRA 14 14

14 ONGC ANKLESHWAR 16 16

15 GACL WHEELING 12 12

16 SEARCHCHEM 11 11

17 NIRMA 0 0

18 ESSAR STEEL LTD. 751 751

19 SAL STEEL LTD 14 14

20 NTPC VARIAV 1 1

21 TPAECL 500 500

22 TPSECL 574 574

23 WIND FARM USERS (W) 963 963

24 HEAVY WATER PLANT (H) 18 18

25 MUPL (from ADANI) ** 9

26 TEL (from SUGEN) ** 15

Total 14657 16437 *Capacity Allocation has been done as per capacity allocation of GUVNL letter no GUVNL:CFM(Comm.):1817 dated 16/09/2010

**Both (MUPL &TEL) are in short term basis and hence have not been added in the total capacity.

4.6.2 The long term open access users other than distribution licensee, that have executed

agreement with supplier for which long term open access granted by STU, The capacity for

which agreement executed is to be considered for the purpose of recovery of SLDC fees and

charges.

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4.6.3 The distribution licensee of TPL-Ahemedabad & TPL-Surat is availing power from Torrent

generating plant (500 MW) and Sugen Plant (1147.50 MW). The companies are

amalgamated as per order of Gujarat High court. However, for the operational and

functional purpose from grid users point of view, generation capacity of generating plant is

allocated to TPSECL & TPAECL ( in the ratio of 50:50) within their organization. The capacity

allocated TPSECL shall have to consider for the purpose of recovery of SLDC Charges and

fees whereas capacity allocated to TPAECL is supplied by TPL-Sugen under short term open

access. The unallocated/allocated capacity of TPL-Sugen which is supplied under short term

open access is excluded from the allocated capacity.

4.6.4 GUVNL has executed power purchase agreement with Adani (1000 MW each through

separate bid with aggregate contract capacity of 2000 MW) from Mundra power plant of

M/s. Adani Power Ltd. Three units of this plant have commenced operations and started

supplying power to the beneficiaries commercially.

4.6.5 The addition of capacity from Sikka plant (500 MW) owned by GSECL and extension of

GSEG(H) plant having capacity of 350 MW has been added in the year 2010-11 and

therefore, the total capacity of 850 MW (350+500) is indicated against GUVNL for the

purpose of computation of SLDC fees and charges.

4.6.6 It was anticipated that Dadra Nagar Haveli (DNH) and Diu-Daman (DD) would be

discontinued after commencement of direct connectivity with CTU network. However, it

has been observed that DD and DNH is using intra state transmission network as

“intervening transmission facility” for the part of share allocation from ISGS. Separate

quantification is not available which provides quantum for which intra state transmission

system is used. Therefore, SLDC Gujarat has assessed the quantum as aggregate drawl by

DD & DNH from GETCO network. Is is calculated as 70 MW for DD and 155 MW for DNH and

same will be applicable for the FY 2010-11 & 2011-12.

4.7 Operation & Maintenance Expenses for the FY 2010-11

4.7.1 Total Operation & Maintenance expenses approved by the commission for the FY 2010-11

was Rs.941.00 Lacs. Revised expenses for Operation & Maintenance expenses for the FY

2010-11 are Rs.1156.84 lacs. The increase is mainly due to increase in Employee cost which

is result of addition of terminal benefits in the books of SLDC. Earlier terminal benefits were

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accounted in the books of GETCO. Below is the table representing the figures of Operation

& Maintenance Expenses for the FY 2010-11

Table 21 : Operation & Maintenance Expenses for the FY 2010-11

(Rs. In Lacs)


Estimated

Deviation 2010-11

Employee Cost 610 818.74 (208.74)

Repairs & Maintenance 71 71.10 (0.10)

Admin & General Expense 260 276.50 (16.50)

Total 941 1166.34 (225.34)

4.7.1 Employee Cost for the FY 2010-11

Total Employee Cost approved by the commission for the FY 2010-11 is Rs. 610 lacs,

whereas as per revised estimates of SLDC, Employee Cost is projected to be Rs. 818.74 lacs.

The increase is mainly due to inclusion of terminal benefits in the books of SLDC which were

earlier accounted in the books of GETCO.

4.8 Depreciation for the FY 2010-11

4.8.1 Commission has approved depreciation for the FY 2010-11 at Rs.63.00 lacs, whereas,

projected figure for the Depreciation for the FY 2010-11 is coming out to be Rs.48.39 Lacs.

Commission has considered the weighted average rate of depreciation @4.41%, whereas

SLDC has considered it @6.62%. the increase in the depreciation rate is mainly due to

increase in the rate of Depreciation of IT related assets which has increased to 16.21% from

6.33%. table below indicates figures for Depreciation as approved by Commission and as

projected by SLDC for the FY 2010-11.

Table 22 : Depreciation for the FY 2010-11

(Rs. In Lacs)


Estimated

Deviation 2010-11


Weighted Avg. Rate of Depreciation 4.41% 6.62%

4.9 Interest & Finance Charges for the FY 2010-11

4.9.1 Interest & Finance Charges approved by the commission for the FY 2010-11 are Rs.85.06

Lacs whereas, as per revised estimated of SLDC Interest & finance Charges for the FY 2010-

11 are projected at 86.03 Lacs. The figures are mentioned in the table below. The rate of

interest for the future loans has been considered @10.50%.

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Table 23 : Interest & Finance Charges for the FY 2010-11

(Rs. In Lacs)


Estimated Deviation

2010-11

Opening Loans 676.00 653.40 22.60

Addition During Year 344.00 361.34 (17.34)

Repayment During the Year 68.00 65.34 2.66

Closing Loans 952.00 949.40 2.60

Average Loans 814.00 801.40 12.60

Interest on Loans 85.06 83.78 1.28

Guarantee Charges 0.00 0.00 0.00

Total Interest & Finance Charges 85.06 83.78 1.28

Average tenure of Loan (years) 10.00 10.00 0.00

Weighted Avg. Rate of Interest 10.45% 10.45%

4.10 Return on Equity for the FY 2010-11

4.10.1 Return on Equity projected by SLDC for the FY 2010-11 is Rs.66.56 Lacs whereas approved

by the commission for the Fy 2010-11 is Rs.66.01 Lacs. For the calculation purpose, SLDc

has considered opening equity as in commission’s order for ARR for the FY 2010-11 dated

31st March’10. The table below shows the figures approved by the commission and

projected by SLDC for Return on Equity for the FY 2010-11 :

Table 24 : Return on Equity for the FY 2010-11

(Rs. In Lacs)


Estimated

Deviation 2010-11

Opening Equity Capital 398.00 402.98 (4.980)

Addition During the Year 147.00 154.86 (7.860)

Closing Equity 545.00 557.84 (12.840)

Average equity 471.50 480.41 (8.910)

Return on Equity 66.01 67.26 (1.247)

4.11 Interest on Working Capital for the FY 2010-11

4.11.1 Interest on Working Capital for the FY 2010-11 has been calculated @ 11.75% as per SBI

PLR as on 1st April 2010, as instructed in the commission’s order. Interest on Working

capital approved by commission for the FY 2010-11 is Rs.18.55 lacs, whereas, as projected

by SLDC it comes out to be Rs. 28.45 Lcas. The increase in working capital is mainly due to

increase in Operation & Maintenance Expenses

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Table 25 : Interest on Working Capital for the FY 2010-11

(Rs. In Lacs)


Estimated

Variation 2010-11

O & M Expenses 78.00 170.34 (92.34)

Maintenance and Spares 18.00 6.25 11.75

Receivables 85.00 71.80 13.20

Total Working Capital 181.00 248.39 (67.39)

Rate of Interest 10.25% 11.75% (0.02)

Interest on working capital 18.55 29.19 (10.63)

4.12 Revenue from Other Sources

4.12.1 Revenue from other sources for the FY 2010-11 as approved by the commission is Rs.156.00

Lacs, whereas as per projection made by SLDC Revenue from Other Sources for the FY

2010-11 is Rs. 162.00 lacs. The increase in Revenue from other sources is mainly due to

increase in Scheduling Charges for the FY2010-11, which comes around Rs.142.05 Lacs,

against Rs.68.00 lacs projected by the commission.

Table 26 : Revenue from Other Sources for the FY 2010-11

(Rs. In Lacs)

Sl . No. Particulars (Rs. In Lacs)


Estimated

Deviation 2010-11

1 Interest on Staff Loans & Advances 4.00 6.34 (2.34)

2 Miscellaneous Receipts 50.00 2.15 47.85

3 Scheduling Charges 68.00 142.05 (74.05)

4 Application / registration Charges 34.00 11.46 22.54

Total 156.00 162.00 (6.00)

4.13 Aggregate Revenue Requirement for the FY 2010-11

4.13.1 Based on the figures mentioned above table below summarizes Aggregate Revenue

Requirement for the FY 2010-11 as projected by SLDC and as approved by the Commission :

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Table 27 : Aggregate Revenue Requirement for the FY 2010-11

(Rs. In Lacs)


Estimated

Variation 2010-11

Employee Cost 610.00 818.74 (208.74)


Admin & General Expenses 260.00 276.50 (16.50)

Interest on Working Capital 18.00 29.19 (11.19)

RLDC Fees & Charges 12.00 11.24 0.76


WAM Charges 22.00 22.66 (0.66)


Operating Cost Budget (a) 1858.00 1882.40 (24.40)



Return on Equity 66.00 67.26 (1.26)

Total Fixed Costs 214.00 199.43 14.63


Add : Provision for Tax 10.00 22.86 (12.86)

Capital Cost Budget(b) 224.00 222.29 1.71

Total Revenue Budget (a+b) 2082.00 2104.70 (22.70)

4.14 Net Gains/Losses in APR for the FY 2010-11

4.14.1 The table below represents net Gains/Losses arising out of the APR for the FY 2010-11

Table 28 : Net Gains / Losses arising out of APR for the FY 2010-11

(Rs. In Lacs)



2 Gains/Losses due to Actual Expenses (22.70)


4 Approved Revenue Requirement for SLDC 2,082.00

5 Revised Gap after taking account of Gains/Losses (22.70)

4.14.2 It is requested to the Hon’ble Commission to approve Revised Annual Revenue

Requirement after treating Gain/ (Loss).

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Chapter 5 : Multi Year Tariff for the Period 2011-12 to 2015-16

5.1 Preamble

5.1.1 This chapter provides detail of projection of SLDC Fees & SLDC Charges for the control

period 2011-12 to 2015-16. The Projections are based on actual expenses for the FY2009-1

and estimations for the FY 2010-11.

5.2 Aggregate Revenue Requirement

5.2.1 The Aggregate Revenue Requirement (ARR) for SLDC-Gujarat for FY 2011-12 is projected as

under:

Table 29 : Net ARR for 2010-11 & Control Period 2011-12 to 2015-16

(Rs. In Lacs)

Particulars (Rs. In Lacs)

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gross Revenue Requirement 2266.69 2480.44 2670.51 2839.54 2999.02 3152.77


Net ARR 2104.70 2305.48 2481.56 2635.46 2778.62 2914.75

5.2.2 The Aggregate revenue requirement computed herein above is exclusive of Foreign

Exchange Rate Variation (if applicable), any statutory taxes, levies, duties, cess, filing fees or

any other kind of imposition(s) and/ or other surcharges etc. whatsoever imposed/ charged

by any Government (Central/State) and / or any other local bodies/ authorities/regulatory

authorities in relation to SLDC functions, environmental protection and the same shall be

borne and additionally paid by the beneficiaries to the petitioner and the same shall be

charged in the monthly bills raised by the petitioner on the beneficiaries. The petitioners

shall also claim the filing fee in the same manner.

5.2.3 The Aggregate Revenue Requirement herein above is inclusive of operation & maintenance

expenses, employee expenses, administration & general expenses, interest on loan, ULD&C

and other related expenses, WAM charges, RLDC/WRPC charges, depreciation, interest on

working capital and return on equity. The O&M expenses for control period 2011-12 to

2015-16 are calculated by taking base of estimated O&M expenses for the current year

2010-11.

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5.2.4 The expenditure of ULD&C and other related scheme like back-up communication to

ULD&C, maintenance cost of wide band Communication and cost associated with shifting of

SLDC from Bhilai to Raipur is added separately into O&M expenses. The charges of ULD&C

scheme is calculated based on the approval of charges for Unified Load Despatch &

Communication Scheme in Western Region for the period from 1.2.2006, given by CERC on

7th November’08 against petition filed by Power Grid Corporation Ltd. The cost of other

related projects are included as approved in the Western Region Power Committee after

taking consent of WR constituents including Gujarat. The assets of all above projects are

owned by Power Grid Corporation of India Ltd. and GETCO is sharing the cost of above.

Therefore, it is appropriate to include it as separate expenses.

5.2.5 The ARR has been calculated after deducting the other Income i.e. income earned from

sources accompanying with functions specified under Section 32 of Electricity Act’2003.

SLDC-Gujarat has generated other income from application charges under Short term open

access, scheduling charges, disposal of obsolete inventories, interest from staff loan etc.

5.2.6 Surplus fund created due to accumulation of reactive charges at the end of year shall have

to be utilized by SLDC-Gujarat for the training purpose of system operator and system

improvement study as per order No.3 of 2006 issued by Hon’ble commission. The relevant

clause are reproduced as under :

“16( m). The money remaining in the State reactive account after payout of all VAr charges

up to 31st March of every year shall be utilized for training of the SLDC/ALDC operators, and

other similar purposes which would help in improving / streamlining the operation in the

State grids, as may be decided by the Committee from time to time.”

5.2.7 The training activities/study to be undertaken for utilization of surplus fund in pursuant of

the above said provision of order issued by Hon’ble commission is specific. The objective of

such training activities/study will be focused for the improvement of voltage profile and

related training for system study, study of reactive power flow and load flow etc. It aims to

reduce the exchanges of reactive energy and improvement in voltage condition,

improvement in system etc. Such activities/study to be organized by SLDC in consultation

with stakeholders. This activities/study will be over and above pre planned training by SLDC

reflected in annual budget. Hence, it is appropriate to exclude the above fund while

calculating the Annual Revenue Requirement of SLDC. It is, therefore, excluded while

estimating net revenue requirement during control period.

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5.3 Principles for “Recovery and Levy of Charges by SLDC”

5.3.1 As per clause 4(2) of regulation 5 of 2005 issued by GERC, expenses incurred by the SLDC

related with the discharge of its functions as specified in Section 32 of the Electricity Act

shall be recovered from the Generating Companies and Licensees through Charges.

Accordingly, SLDC has to recover annual revenue requirement against capital expenditure

as well as O&M Charges as SLDC fees (semi annual basis) and SLDC charges (monthly basis).

5.3.2 In accordance with the aforesaid regulation, SLDC-Gujarat proposes ‘principles’ for levy and

recovery of ‘SLDC Fees and Charges’ to meet with the revenue requirements of SLDC as

under :

(a) Registration or Connection Fees: Corresponding to clause no.3 of regulation 5 of

2005 issued by GERC and as per Grid Connection procedure proposed by SLDC-

Gujarat.

(b) Annual SLDC Fees – Corresponding to proposed annual capital cost to be incurred

during ‘specified control period’ to be payable on semi-annual basis by generating

companies and distribution licensees.

(c) SLDC Charges – corresponding to annual operating costs comprising employee

expense, R&M expense, A&G expense, interest on working capital and RLDC fees and

charges, monthly payment of ULD&C and related charges towards PGCIL.

5.3.3 Annual SLDC Fees – shall be recovered from distribution licensees, generating companies

and any other long term open access users of intra state transmission network. Annual

SLDC fees will be allocated to generating companies in proportion to their installed

capacity. Whereas in case of beneficiaries/distribution licensee, fees will be recovered in

proportion to their capacity allocation. SLDC Fees shall be recovered on half-yearly basis.

5.3.4 SLDC Charges – shall also be levied on the same principle as mentioned in above said para

2.3.2 ( c) and to be recovered from generating companies, distribution licensee and any

other approved long term open access users. SLDC Charges shall be recovered on monthly

basis.

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5.4 Power System Parameters 5.4.1 Generation Capacity in State

The State Grid network comprises loading of various generating stations such as :

i. Generating stations of the State Owned Entities

ii. Percentage share in central generating stations,

iii. Independent Power Producers,

iv. Captive Power Plant,

v. Wind farm capacity,

vi. Solar Projects

vii. Mini Hydro Projects

viii. Bagasse Projects

ix. Percentage share in mega/private power plants outside jurisdiction of SLDC.

Anticipated Generation capacity for the period 2011-12 to 2015-16 is as under:

Table 30 : Generation Capacity of the State

(in MW)

Sl. Parameters

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 GSECL Plants 5216 5716 5966 6576 9776 9776

2 IPPs 3871 6221 6936 7166 7966 12862

3 Share from Central Sector 3058 4388 5748 6421 7161 7879

4 CPP Wheeling 838 84 84 84 84 84

5 Wind Farm Capacity 2091 2391 2691 2991 3291 3591

6 Solar Projects 46 427 727 927 1127 1427

7 Mini Hydro Projects 6 6 6 6 6 6

8 Bagasse Projects 0 60 60 60 60 60

5.4.2 Energy Catered in System

The energy catered by Gujarat is summation of energy supplied from all sources including

the unscheduled interchange drawl from central grid to balance demand and supply within

the State. Anticipated energy catered and demand for the period 2011-12 to 2015-16 has

been calculated by considering increase of 6% on estimated parameter of 2010-11.

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Table 31 : Anticipated Energy catered for the period 2010-11 to 2015-16

Sl. Parameters ( in MW)

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Energy Catered in System (in MUs)

Total Energy Catered 71712 76015 80576 85410 90535 95967

Max Catered in a Day 237.406 249 262 275 289 303

Min. catered in a Day 138.72 143 147 152 156 161

2 Demand Catered in System (in MW)

Average Demand Catered 8186 8677 9198 9750 10335 10955

Max Demand Catered 10461 11089 11754 12459 13207 13999

Min Demand Catered 5015 5266 5529 5805 6096 6401

3 Unrestricted Demand (in MW)

Max unrestricted Demand 11296 11974 12692 13454 14261 15117

5.4.3 Available generation

The available generation comprises, available generation of state generating stations as

well as share in central sector generating stations. The wind generations are absorbed

within grid and surplus capacity of captive power plant is harnessed for injection into grid

as additional resources which increase available generation capacity into grid.

Table 32 : Generation Availability

Sl.

No. Parameters ( in MW)

2010-11

upto Sept 30

1 Availability of Generation

Availability at Peak (MW) 10256

2 Wind Generation

Total Wind Generation (Mus) 1719

Max Generation in MW 1350

3 CPP Generation Harnessed

Total CPP Generation (Mus) 112.064 ( * : Calculated up to Sept’10)

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5.4.4 Load Curtailment by Distribution Licensees

The load curtailment is being imposed by various distribution licensees in certain critical

conditions in order to balance demand & supply in State transmission network grid. SLDC

has to optimize generation by effectively balancing demand and supply resulting in

reduction of load curtailment due to critical conditions.

Table 33 : Projected Load Curtailment during MYT period 2010-11 to 2015-16

(in MW)

Sl. No. Parameters (in MW)

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Load Shedding

Load Shedding (up to MW) 1339 1405.95 1476.24 1550.06 1627.56 1708.94 (Note: Increase in Load Shedding is mainly due to Increase in Agriculture Load)

5.4.5 Frequency Profile

SLDC-Gujarat is member of Western region and hence responsible for frequency profile

which is a combine effort of grid users. All grid members are striving to maintain standard

frequency which depends upon effectiveness of balancing function to be carried out by

each Load dispatch centre. The frequency profile of Integrated Transmission System up to

Sept’10 is as under :

Table 34 : Frequency Profile during the year 2010-11

Sl. No. Description

upto 30th Sept'10 Units

1 Average Frequency (in Hz) 49.74 Hz

2 Above 50.20 Hz 4.29 %

3 Between 50.20 & 49.80 Hz 45.26 %

4 Between 49.80 & 49.50 Hz 29.52 %

5 Between 49.50 & 49.20 Hz 12.99 %

6 Between 49.20 & 48.50 Hz 7.95 %

7 Between 48.50 & 48.00 Hz 0.00 %

8 Below 48.00 Hz 0.00 % ( * Calculated up to Sept’10)

5.5 Implementation of Intra State Availability Based Tariff (ABT)

After restructuring of GEB and execution of power purchase agreement entered into by

GUVNL/Distribution Licensees and Generating Stations, As per the Hon’ble commission’s

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order No 3 of 2010, Intra state ABT is fully implemented with all its commercial aspects

w.e.f. 5th April 2010.

The summary of activities carried out by SLDC for the purpose of implementation of Intra

State ABT is outlined hereunder in this section.

1) Installation of ABT compliant meter at inter face points : STU has installed

total 884 nos. (as on 30th Sept’2010) ABT meters within Intra State Grid for

the purpose of accounting under Intra State ABT. All meters are configured

by SLDC with software for data polling and weekly energy accounting.

2) In line with Implementation of Intra state ABT, SLDC carried out all the

activities related to intrastate ABT like scheduling, preparation of UI Bill,

State Energy account, Reactive energy account etc

3) Allocation of State Generating Capacity and central generating capacity to

various beneficiaries of Gujarat is carried out by capacity owners as per

existing Power Purchase agreement.

4) The information system is established by independent website of SLDC-

Gujarat and information posted in accordance with Open Access Regulation

2005 of GERC. This website is also being featured for communication of

various accounting and scheduling related information. Such information is

very important for effective operation/planning and same is made available

to all users.

5.5.1 Further, Government of Gujarat vide their “Power Policy 2009” (Clause no.1.3) supported

for implementation of Intra State Availability Based Tariff (ABT)” and “ Open Access in

Transmission and Distribution network in the Gujarat for greater competition in the

electricity market. Relevant provision of ‘Power Policy 2009” is reproduced as under :

“1.3 The capacity addition to meet the growing energy requirement is expected to be

both in public sector as well as private sector. The Government of Gujarat has been

providing an enabling for private investment in power generation. At present the share of

private sector in total installed generation capacity is 25%. Also, the State Government

supports greater competition in the sector through open access, Intra State ABT etc. At the

same time , it is important to ensure competitiveness of the power sector in the State, by

adoption of latest technologies and practices”

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5.6 Implementation of Short Term Open Access (STOA)

5.6.1 According to the Open Access Regulation 2005 for Intra State, SLDC is the Nodal agency for

providing short term open access within Gujarat and play a key role for operationalization

of long term open access. The procedure for reservation of transmission capacity under

short term open access is formulated. SLDC-Gujarat is Nodal agency for implementation of

open access transaction under short term category and has undertaken following activities:

a) Approval of short term open access within intra state

b) Issuing No objection/Standing clearance for Inter State collective transaction

through power exchange approved by appropriate commission.

c) Issuing concurrence for Inter State bilateral transaction through inter State open

access.

5.6.2 State Load Dispatch Centre has granted short term open access within intra State level in

different category from the date of issue of open access regulation. The number of short

term open access transactions is increasing every year. Table-10 to Table-13 show details of

open access application processed/granted from 2008 to 25th Oct’10. Table-13 shows

summary of open access granted from the date of issue of regulation issued by GERC.

5.6.3

Table 35 : Open Access Approved during FY 2008-09

Sl. Category Granted (in MW) Total MUs

1 Intra State Short Term Open Access 25 24.58

2 Intra State Collective Transactions (PX) 85 86.47

3 Inter State Bilateral Transaction 441 501.70

Total 551 612.74

Table 36 : Open Access Approved during FY 2009-10





Total 1671 11100.08

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Table 37 : Open Access Approved during FY 2010-11 (upto 25.10.10)





Total 2465 22683.88

Table 38 : Open Access Approved from FY 2008-09 to 2010-11 (upto 25.10.10)





Total 4687 34396.70

5.7 State Generating Capacity

5.7.1 In accordance with clause 4(iv) of regulation 5 of 2005 issued by GERC, SLDC fees and

charges is to be recovered from generating station. It comprises generating capacity of

State generating stations falls within jurisdiction of SLDC-Gujarat.

5.7.2 The generating capacity of Torrent power is considered for the purpose of Computing SLDC

charges because of separate capacity connected with State grid. Though Torrent generating

station is considered as part of Torrent Power Ltd., the capacity addition is to be considered

as integral part of Gujarat grid for all purpose of operational treatment. Hence, such

capacity is to be considered while calculation of aggregate revenue requirement of Gujarat

grid under provision of Indian Electricity Act’2003.

5.7.3 As per Section 6.4 (Demarcation of Responsibilities) sub section 2(C)(IV), of the Indian

Electricity Grid Code 2010 and CERC order dated 28th July’10 of Petition No. 220/2009,

Control area of Adani Power Plant (4640MW) has been transferred Gujarat from 2nd August,

2010.

5.7.4 Mega Power Plant, Sugen (1147.50 MW) is supplying power to intra state entities (except

100 MW to MPPTCL is under consideration). Hence as per CERC order dated 7th May’2009

and revised Indian Electricity Grid Code issued by CERC for determination of control area ,

entire capacity of Sugen Power Plant is considered within jurisdiction of SLDC-Gujarat.

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Table 39 : Projected State Generating Capacity for the period 2010-11 to 2015-16

(in MW)

Sl. No Generation Capacity

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 GSECL 5216 5716 5966 6576 9776 9776

2 GIPCL-I 145 145 145 145 145 145

3 GIPCL-II 165 165 165 165 165 165

4 GIPCL-SLPP 250 250 250 250 250 250

5 GIPCL-SLPP Extn. 250 250 250 250 250 250

6 ESSAR 300 300 300 300 300 300

7 ESSAR, Vadinar 0 1000 1000 1000 1000 1000

8 ESSAR Salaya, Phase II 0 0 0 0 0 800

9 GPEC 655 655 655 655 655 655

10 GSEG 156 156 156 156 156 156

11 GSEG HAZIRA Extn. 350 350 350 350 350 350

12 GMDC - Akrimota 250 250 250 250 250 250

13 ADANI, MUNDRA -I & II 500 500 500 500 500 500

14 ADANI, MUNDRA -III & IV 500 500 500 500 500 500

15 ADANI, MUNDRA -V & VI 0 1000 1000 1000 1000 1000

16 GPPC, Pipavav 350 350 350 350 350 350

17 GPPC, Pipavav - II 0 350 350 350 350 350

18 SHAPOORJI PALLONJI, Kodinar 0 0 0 0 0 800

19 KSK MAHANANDI, Chattisgarh 0 0 0 0 0 1010

20 BECL, Padva - I & II 0 0 600 600 600 600

21 NTPL 0 0 0 0 270 270

22 OPG Power 0 0 0 0 300 300

23 GPPC (Conversion GTPS 3 & 4) 0 0 0 0 0 1372

24 GPPC (Conversion Sikka 1 & 2) 0 0 0 0 0 457

25 GPPC (Conversion DTPS 5 & 6) 0 0 0 0 0 457

26 Tilaiya UMPP 0 0 60 180 300 300

27 Akaltara UMPP 0 0 55 165 275 275

21 CPP (W) 838 84 84 84 84 84

22 WIND FARM 2091 2391 2691 2991 3291 3591

23 SOLAR PROJECTS 46 427 727 927 1127 1427

24 MINI HYDEL PROJECTS 6 6 6 6 6 6

25 BAGASSE PROJECTS 0 60 60 60 60 60

TOTAL 12068 14904 16469 17809 22309 27805

5.8 Allocation to Distribution Licensees / Beneficiaries

5.8.1 Distribution licensee of State has executed long term agreement with supplier and wind

farm generators for purchase of power. The distribution licensee has further obtained long

term open access to the extent of agreement made with supplier. The capacity for which

agreement executed by distribution licensee with GUVNL and wind farm generators is

considered for recovery of SLDC fees and charges.

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Table 40 : Projected Allocation to Distribution Licensees/Beneficiaries for the period 10-11 to 15-16

(in MW)


Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 DGVCL 3391 4651 5400 5916 7258 8850

2 MGVCL 1748 2398 2784 3050 3742 4562

3 UGVCL 3651 5008 5815 6370 7815 9529

4 PGVCL 4447 6101 7083 7760 9520 11608

5 GSFC FIBRE 5 5 5 5 5 5

6 GSFC POLYMER 2 2 2 2 2 2

7 GSFC SIKKA 5 5 5 5 5 5

8 GSFC VADODARA 47 47 47 47 47 47

9 GACL VADODARA 41 41 41 41 41 41

10 GAIL 2 2 2 2 2 2

11 DIU & DAMAN 70 70 70 70 70 70

12 DADRA NAGAR HAVELI 155 155 155 155 155 155

13 ONGC HAZIRA 14 14 14 14 14 14

14 ONGC ANKLESHWAR 16 16 16 16 16 16

15 GACL WHEELING 12 12 12 12 12 12

16 SEARCHCHEM 11 11 11 11 11 11

17 NIRMA 0 0 0 0 0 0

18 ESSAR STEEL LTD. 751 0 0 0 0 0

19 SAL STEEL LTD 14 14 14 14 14 14

20 NTPC VARIAV 1 1 1 1 1 1

21 TPAECL 500 500 500 500 500 500

22 TPSECL 574 574 574 574 574 574

23 WIND FARM USERS (W) 963 963 963 963 963 963

24 HEAVY WATER PLANT (H) 18 18 18 18 18 18

25 MUPL (from ADANI) ** 9 9 9 9 9 9

26 TEL (from SUGEN) ** 15 15 15 15 15 15

Total 16437 20607 23532 25545 30785 36999 *Capacity Allocation has been done as per capacity allocation of GUVNL letter no GUVNL:CFM(Comm.):1817 dated 16/09/2010

**Both (MUPL &TEL) are in short term basis and hence have not been added in the total capacity.

5.8.2 The long term open access users other than distribution licensee, that have executed

agreement with supplier for which long term open access granted by STU, The capacity for

which agreement executed is to be considered for the purpose of recovery of SLDC fees and

charges.

5.8.3 The distribution licensee of TPL-Ahemedabad & TPL-Surat is availing power from Torrent

generating plant (500 MW) and Sugen Plant (1147.50 MW). The companies are

amalgamated as per order of Gujarat High court. However, for the operational and

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functional purpose from grid users point of view, generation capacity of generating plant is

allocated to TPSECL & TPAECL ( in the ratio of 50:50) within their organization. The capacity

allocated TPSECL shall have to consider for the purpose of recovery of SLDC Charges and

fees whereas capacity allocated to TPAECL is supplied by TPL-Sugen under short term open

access. The unallocated/allocated capacity of TPL-Sugen which is supplied under short term

open access is excluded from the allocated capacity.

5.8.4 GUVNL has executed power purchase agreement with Adani (1000 MW each through

separate bid with aggregate contract capacity of 2000 MW) from Mundra power plant of

M/s. Adani Power Ltd. Three units of this plant have commenced operations and started

supplying power to the beneficiaries commercially.

5.8.5 The addition of capacity from Sikka plant (500 MW) owned by GSECL and extension of

GSEG(H) plant having capacity of 350 MW has been added in the year 2010-11 and

therefore, the total capacity of 850 MW (350+500) is indicated against GUVNL for the

purpose of computation of SLDC fees and charges.

5.8.6 It was anticipated that Dadra Nagar Haveli (DNH) and Diu-Daman (DD) would be

discontinued after commencement of direct connectivity with CTU network. However, it

has been observed that DD and DNH is using intra state transmission network as

“intervening transmission facility” for the part of share allocation from ISGS. Separate

quantification is not available which provides quantum for which intra state transmission

system is used. Therefore, SLDC Gujarat has assessed the quantum as aggregate drawl by

DD & DNH from GETCO network. Is is calculated as 70 MW for DD and 155 MW for DNH and

same will be applicable for the FY 2010-11 & 2011-12.

5.9 Principles for determination of Aggregate Revenue Return

5.9.1 The Electricity Act, 2003 provides the function of State Load Dispatch Centre to ensure

integrated operation of State Power System as per Section 32. Accordingly, SLDC is

endeavouring to maintain reliability of State Power System with optimization of available

resources. Benefit of reliable grid operation extended to all grid users of State Power

System, including generating station and distribution licensees, open access users and

ultimately to the end consumers of State. Generating companies can supply power to their

bulk consumers and distribution licensee can avail power from various sources to serve

their esteemed consumers. Section 32(3) further provides for levy and collection of such

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fees and charges from the generating companies and licensees engaged in the intra-state

transmission.

5.9.2 It is therefore necessary to charge SLDC fees and charges to all grid users, availing the

benefit of grid/SLDC services through long term open access methods or any other existing

methods like wheeling. Therefore, annual revenue requirement of SLDC shall be recovered

from the existing grid users or new grid users through the proposed method of recovery of

charges and fees against the SLDC functions stipulated under Electricity Act 2003.

5.9.3 All long term open access users are availing grid services for transferring power to

consumer point from various sources on firm contract basis by establishing transmission

network or through the STU. The quantum of MW transferred by such long term open

access users depends on the quantum of long term open access granted or to the extent of

allocation ( part of open access quantum utilized by such users ). Similarly generating

companies are availing grid services to the extent of their generation capacity committed

for generating power under long term contracts. Hence, intra state entities i.e. generating

companies and beneficiaries( distribution licensee/LTOA users ) has to pay SLDC charges

and fees in proportion to their generating capacity and quantum of MW allocated to

beneficiaries respectively.

5.9.4 According to regulation issued by GERC (Clause 4(xvi) & (xvii) of Regulation No. 5 of 2005),

scheduling and system operation charges to be recovered from short term open access

users shall not be considered for the determination of the charges of the SLDC, and to be

specified by commission separately. Therefore, short term open access charges are not

covered in the said application for determination of SLDC charges & fees. The relevant

clause of above said regulation is reproduced as below :

“4(Xvii) Short-term open access users of the Grid shall pay such scheduling and system

operation Charges as may be specified by the Commission.

4(xviii) Scheduling and system operation Charges recovered from short-term open access

users of the Grid shall not be considered in the determination of the Charges of the SLDC.”

5.9.5 Central Government through its Order 795(E) dated 8th June 2005 has notified “The

Electricity (Removal of Difficulty) Sixth Order, 2005” wherein, it has clarified that SLDC fees

and charges may be levied from licensee using intra-State transmission system as stated

under Section 32(3) of EA 2003. The relevant extract of said Order is as under –

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“The State Load Dispatch Centre may levy and collect such fee and charges

from licenses using the intra-State transmission system, as may be specified by

the State Commission.” (Cl. 2 of The Electricity (Removal of Difficulty) Sixth

Order, 2005)

It is, therefore, appropriate to recover SLDC charges and fees from generating companies

and distribution licensee engaged in intra state transmission system as specified by the

Gujarat Electricity Regulatory Commission.

5.9.6 As mentioned in para 5.3 – ‘Principle of recovery of SLDC charges and fees”, it comprises

following component to be recovered from generating station and distribution licensee i.e.

(i) SLDC Charges (Monthly basis), (ii) SLDC fees (Semi annual basis) and (iii) Grid Connection

fees. Since the commission has not specified method of recovery of SLDC charges and fees,

it is proposed as per para 5.3 and methodology for recovery of each component is as under:

5.9.6.1 SLDC Charges (To be recovered on monthly basis) : SLDC charges will be derived

corresponding to annual operating and maintenance costs to be determined as per

regulation 5 of 2005 issued by GERC. It comprises employee expense, R&M expense, A&G

expense, interest on working capital and RLDC related fees and charges, ULD&C & related

project charges, WAM charges etc.

5.9.6.2 SLDC fees (To be recovered on semi-annual basis) : Annual SLDC Fees is to be determined

based on annual capital cost of approved CAPEX schemes for specified control period . The

annualized capital cost shall comprise cost of amortization over control period, interest and

financing cost, return on equity and provision for tax. The capital expenditure is determined

as per norms specified by Hon’ble commission and other relevant regulation.

5.10 Details of Fixed Costs

This section covers the approach followed to compute the fixed cost for the SLDC business

for FY 2011-12 on the basis of estimated expenditure of FY 2010-11.

The total capital Annual Revenue Requirement for the FY 2010-11 is projected based on

methodologies discussed in detail in subsequent paragraphs. The fixed cost calculated for

SLDC is excluded from the annual revenue requirement filed by GETCO for determination of

transmission charges.

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Total fixed cost has been bifurcated into following elements:

o Interest and Financing Charges o Depreciation o Return on Equity

Provision for tax is also included in fixed cost separately.

5.10.1 Interest and Finance Charges

The interest expenditure on account of long-term loans depends on the outstanding loan,

repayments and prevailing interest rates on the outstanding loans. Further, the projected

capital expenditure and the funding of the same also have a large bearing on the long-term

interest expenditure.

For the estimation of Interest on Loans in FY 11-12, SLDC has taken basis of interest &

financial expenses estimated for FY 2010-11. The capital expenditure during 2011-12 has

been assumed to be undertaken at a normative debt: equity ratio of 70:30 in accordance

with the GERC (Levy and collection of fees and charges for SLDC).

Table 41 : Projected Interest & Finance Charges for the Period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Opening Loans 653.40 949.40 1,200.96 1,402.86 1,447.38 1,430.74

Addition During Year 361.34 346.50 322.00 184.80 128.10 114.10

Repayment During the Year 65.34 94.94 120.10 140.29 144.74 143.07

Closing Loans 949.40 1,200.96 1,402.86 1,447.38 1,430.74 1,401.77

Average Loans 801.40 1,075.18 1,301.91 1,425.12 1,439.06 1,416.25

Interest on Loans 83.78 112.40 136.11 148.99 150.45 148.06

Guarantee Charges 0.00 0.00 0.00 0.00 0.00 0.00

Total Interest & Finance Charges 83.78 112.40 136.11 148.99 150.45 148.06

Average tenure of Loan (years) 10.00 10.00 10.00 10.00 10.00 10.00

Weighted Avg. Rate of Interest 10.45% 10.45% 10.45% 10.45% 10.45% 10.45%

For the purpose of calculation of interest, the actual weighted average rate of interest is

estimated as per the table below based on the actual interest rate for existing loan 10.25%

and 10.50 % for future CAPEX during the FY 2011-12

For the purpose of repayment, average tenure of the loan has been assumed as 10 years

for all loan portion allocated to SLDC from GETCO loans and accordingly repayments for FY

10-11 and for the control period have been calculated.

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5.10.2 Asset Capitalization and Depreciation

Capital expenditure estimation has been done for FY 2010-11. Capital work in progress of

the given year is assumed to be capitalized in the next financial year. Also the capitalized

expenses which are reduced from the respective year’s operating expenses are also added

into total assets for the respective year.

Depreciation for the year has been calculated considered as per Company’s Act provisions

for various blocks of assets. The weighted average rate for depreciation for FY 2009-10

works out to be 6.62% from estimated accounts. The increase in the rate of depreciation is

mainly due to revision in the depreciation rate of IT related assets from 6.33% to 16.21%.

Table 42 : Projected Depreciation for the Period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gross Fixed Assets at the Beginning of the Yr 538.53 1378.43 1873.43 2333.43 2597.43 2780.43

New Additions During the Year 516.20 495.00 460.00 264.00 183.00 163.00

Capital Expenditure in Progress 323.70 0.00 0.00 0.00 0.00 0.00

Less : Accumulated Depreciation 203.83 303.22 426.48 559.06 694.98 832.68

Net Fixed Assets 1174.59 1570.20 1906.94 2038.37 2085.45 2110.74

Depreciation 48.39 99.39 123.26 132.58 135.92 137.71

Weighted Avg. Rate of Depreciation 6.62% 6.62% 6.62% 6.62% 6.62% 6.62%

The fixed assets related to SLDC were segregated after detailed analysis of the books of

accounts. Assets related to SLDC were identified along with the proportionate depreciation

on the same from the fixed assets prepared at circle level. All such assets have been

transferred to the SLDC’s accounts from respective circle offices. Depreciation on these

assets for FY 2010-11 is estimated based on books of accounts up to March’10 and

estimated for FY 2010-11. Depreciation for remaining period is calculated based on a

detailed analysis of the fixed asset schedule, the balance useful life of the assets, and the

depreciation rate for each fixed assets.

5.10.3 Return on Equity

In the initial period of separation of SLDC, equity and liabilities are to be allotted to SLDC. At

the initial period of SLDC-Gujarat, no separate long term loan is availed by SDLC-Gujarat

and hence it is appropriate to transfer equity @ 35% rate for FY 2009-10 (as on 31st

March’2010). An equity at the rate of 30% of capital expenditure is considered for FY 2010-

11to 2015-16 as addition in the existing equity of FY 2009-10.

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Similarly, equity of 30% of capital expenditure is considered for FY 2010-11 as addition of FY

2009-10 as estimated in following Table. Average of the equity in the year (average of

opening and closing equity) is then considered to calculate the return on equity.

Table 43 : Projected Return on Equity for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Opening Equity Capital 402.98 557.84 706.34 844.34 923.54 978.44

Addition During the Year 154.86 148.50 138.00 79.20 54.90 48.90

Closing Equity 557.84 706.34 844.34 923.54 978.44 1027.34

Average equity 480.41 632.09 775.34 883.94 950.99 1002.89

Return on Equity 67.26 88.49 108.55 123.75 133.14 140.40

Rate of return on equity is considered as 14% p.a. in line with the norms specified by the

Hon’ble Commission vide regulation “ Levy and collection of SLDC fees and charges by SLDC

2005”

5.10.4 Provision for Tax

Tax on the income streams shall be computed as an expense and shall be recovered

from the beneficiaries. Since, SLDC is paying these taxes through the consolidated tax

payment made by GETCO; it is proposed to recover the same. Tax @ 33.99%, as per trhe

corporate tax rate, has been considered for the calculation of Return on the equity.

SLDC humbly request the Hon’ble Commission to allow above taxes to be recovered from

the beneficiaries.

5.11 Total Operation and Maintenance Cost

As per the guidelines given by the Commission vide regulation 5 of 2005, the Operating

Charges of SLDC comprises Employee cost, Administration and General Charges, Repairs

and Maintenance expenses and other relevant costs.

In accordance with the above said regulation (“Levy and collection of fees and charges by

state load dispatch centre”), GETCO shall be required to maintain separate accounts for

SLDC activity. Accordingly the segregation of accounts of SLDC from GETCO is already

completed from the position as on 31st Mar’2010. As a part of the process and as per the

above Regulation, the operating charges are being filed based on the staffing plan now

envisaged.

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The details of the Annual Operating charges i.e. Employee cost, Administration and General

charges, Repairs and Maintenance charges, Interest on working capital and other charges

are calculated in subsequent Para.

5.11.1 Employee Cost

Summary of Manpower deployed at SLDC & Sub-LDCs is given in Table below.

Table 44 :Summary of Manpower at SLDC & Sub LDCs

Sr. Particulars Deployed

1 Chief Engineer 1

2 Additional Chief Engineer 1

3 Superintending Engineer 3

4 Executive Engineer 12

5 Deputy Engineer 31

6 Junior Engineer & PLCC 26

7 Sr. Radio Mechanic 2

8 Driver 2

9 Electrician Gr. I/II 4

10 Sr. Elect. / Sr. Radio Mech. 1

11 P.O. Elect. / Radio Mech. 2

12 Helper 21

13 Dy.CAO 1

15 Dy. Superintendent (A/c) 1

17 Security Inspector 1

18 Teleprinter Operator 4

19 Junior Assistant 5

20 Steno Typist 1

21 Peon 3

22 Kamdar 1

23 Arm Guards 7

24 Watchman 3

Total 133

Employee expenses include salaries, bonus, other benefits like medical expense

reimbursement, Leave travel allowances etc. and terminal benefits in the form of pension,

gratuity, leave encashment, staff welfare etc.

The Petitioner submits that the employee cost for existing staff has been estimated

considering trends of past year’s employee cost, increase in dearness allowance, its merger

and its impact on other allowances such as HRA, field allowances, PF, CPF etc. Additionally,

increase in salary due to regular increments as well as promotion has also been considered.

Retirement and terminal benefits (PF, Gratuity, EL Encashment etc.) were previously

considered in the GTECO books therefore the expenses were not shown in the SLDC books.

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But as now SLDC is to be separated from GETCO, the expenses pertaining to Retirement and

terminal benefits has been transferred into the books of SLDC.

Considering the above, the percentage increase in existing employee cost has been

considered @ 10% on yearly basis during the control period. The estimated employee cost

for the period FY 2010-11 to 2015-16 are summarized in the table below.

As the new company formation decision is still pending with GOG, SLDC has not considered

the increase in the employee cost arising out of hiring new employees after the company

formation.

Table 45 : Projected Employee Cost for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Basic Employee Cost 620.63 682.70 750.97 826.06 908.67 999.54

Conveyance & Allowances 23.53 25.88 28.47 31.32 34.45 37.90

Terminal Benefit 167.57 184.33 202.76 223.04 245.34 269.88

Staff Welfare Expenses 7.00 7.70 8.47 9.32 10.25 11.27

Total Employee Cost 818.74 900.61 990.67 1089.74 1198.71 1318.58

5.11.2 Administration and General Expenses :

Administration expenses mainly comprise of rents, electricity charges and telephone &

other communication expenses, professional charges, conveyance and travelling expenses

etc. Normally, A&G expense would increase @ 8% on year to year basis during the control

period.

The administration of SLDC is presently exercised as a separate unit of GETCO as per order

of GOG. The expenses like most of administration cost like professional charges, internal

audit fee (internal & statutory), taxation matters, legal expenses and statutory fees etc. is

carried out from corporate office.

GUVNL and its subsidiaries have established an end to end IT Solution i.e. e-Urja Project. It

is estimated that an amount of Rs.100 Lacs per year will be allocated to SLDC from GETCO

for computerization and maintenance of the system, as a part of A&G Expenses.

Further , as per recommendation of GoG and subsequent action plan suggested by Ministry

of Power for “Ring Fencing and Autonomy of SLDC” , SLDCs has to obtain ISO certifications.

Accordingly, SLDC-Gujarat has initiated action for obtaining ISO as Integrated Management

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System which comprises ISO 9001, OHSAS and relevant certificates. As the proposal of the

new company formation is pending with GOG the same expenses has been carried over to

next Financial Year. The details of A&G expenses are given below. Increase in A&G expenses

is due to separation of SLDC from GETCO, which will create need to appoint separate

consultants, Internal & Statuary auditors and other related expenses.

Table 46 : Projected A&G Expenses for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

A&G Expenses 176.50 190.62 205.87 222.34 240.13 259.34

E Urja Charge 100.00 100.00 100.00 100.00 100.00 100.00

Total 276.50 290.62 305.87 322.34 340.13 359.34

5.11.3 Repairs and Maintenance Cost :

Repairs & maintenance expenses are directly related to age of the assets, its wear and tear

during the period. SLDC-Gujarat is paying charges towards PGCIL for the O&M of ULD&C

Scheme for central portion. However, State portion of ULD&C scheme is to be maintained

by SLDC-Gujarat.

Further, maintenance and fixed costs is shared by GETCO (Gujarat) for the various assets

created by PGCIL in the western region covered in “Central Portion” of ULD&C scheme. The

maintenance and fixed costs is being pooled and shared by WR- constituents. Therefore,

the cost of such projects is also apportioned to Gujarat entities through SLDC-fees and

charges mechanism.

It was decided during the 10th WRPC meeting held on 30th May’2009 Annual Maintenance

contract for Wideband communication equipment to M/s. Ericsson India Pvt. Ltd. for a

period of 3 years and is extendable for 2 more years at the same rate. The cost of such

maintenance contract is not included in the AMC of SCADA. The price has been negotiated

and as decided by WRPC, it is to be shared by WR-Constituents.

Further , it was decided during the 7th WRPC meeting held on 3rd May’2008 that back up

communication links to be provided from SLDCs and Strategic locations in the networks of

ULD&C scheme. The WRPC agreed for above scheme. Accordingly, OPGW cable from

Jambua to Gotri and Asoj to Jambua is proposed by PGCIL. It was decided that beneficiaries

of WR would share the cost in respect of above back up communication link. The project is

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under progress and it is likely to be finished in this Financial Year. Payment regarding this

has already been made by SLDC in the current Financial Year.

It was further resolved in 7th meeting of WRPC that cost of shifting of SLDC Bhilai to Raipur

in the network of ULD&C scheme is to be pooled and shared by WR-beneficiaries. The

project is currently under progress and likely to be finished by end of this financial year.

Payment for the same has already been made in the current financial year.

Table 47 : Projected Repairs & Maintenance Expenses for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

R & M Expenses 71.10 78.21 86.03 94.63 104.10 114.51

% increase ---- 10% 10% 10% 10% 10% (Note: Above expenses are excluding ULDC related expenses)

Considering above, the repairs and maintenance expenses have been escalated @ 10% on

year to year basis during the control period. Moreover, it is economical for incurring

expenditure on repairs and maintenance compared to the replacement of old asset with

new asset.

It is to submit that increase in Repairs & Maintenance mainly on account of inclusion of

maintenance contract of wideband communication proposed by PGCIL and as decided in

WRPC forum, it is to be recovered from retrospective effect of 1st April’2009. The contract

can be extended for 2 more years at the same rate after that an escalation of 10% has been

considered for the maintenance of the wideband Communication

5.11.4 Interest on Working Capital :

The interest on working capital is worked out on normative basis and is based on norms

specified under the Regulations for the “Levy and collection of SLDC Charges and fees “ (

Regulation No.5 of 2005) issued by the Hon. Commission.

The working capital is projected to comprise 1/12th of O&M expenses, maintenance spares

at 1% of assets added and 6% escalated value of last year’s maintenance spares, and

receivables equivalent to 15 days of expected revenue from SLDC charges for FY 2010-11.

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Table 48: Projected Interest on Working Capital for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2010-13 2013-14 2014-15 2015-16

O & M Expenses 170.34 179.91 188.80 199.53 211.40 154.85

Maintenance and Spares 6.25 5.32 4.92 2.94 2.01 1.75

Receivables 71.80 75.47 77.70 77.07 81.49 58.57

Total Working Capital 248.39 260.71 271.42 279.53 294.89 215.17

Rate of Interest 11.75% 11.75% 11.75% 11.75% 11.75% 11.75%

Interest on working capital 29.19 30.63 31.89 32.85 34.65 25.28

The interest rate has been considered at the rate of 11.75% as per Prime Lending Rate (PLR)

as on 1st April’2010 which has been instructed by the commission in Notification No.5 of

2005, Levy and Collection of Fees and Charges by SLDC Regulations. Maintenance spares is

calculated on the basis of 6% escalated value of the last year’s maintenance spares plus 1%

of the value of assets that are added in the given year. The calculation of interest on

working capital is shown in Table-51.

5.11.5 RLDC / WRPC Charges :

As per Section 32(2) of EA 2003, SLDC is required to exercise supervision and control of

intra-State transmission system, to co-ordinate with RLDC. SLDC has to ensure compliance

of the directions issued by RLDC as per Section 29 (3) of EA 2003. Hence, fees and charges

pertaining to RLDC related activities would be considered in the SLDC Budget. This would be

recovered by WRPC/RLDC fees and charges as may be specified by the Commission or

Secretariat of Western Region Power Committee from time to time.

As decided in 7th WRPC meeting dated 15th May’2008, WRPC gave their approval for total

annual expenditure of WRPC secretariat. It was agreed that the same will be equally shared

by each WRPC member and reimburse expenditure of WRPC secretariat. SLDC-Gujarat is

member of WRPC participating from Gujarat. Hence expenditure of WRPC secretariat

charges is to paid by SLDC-Gujarat.

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Table 49 : Projected WRPC Charges for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

WRPC Charges 11.24 12.36 13.60 14.96 16.46 18.10

Any other charges to RLDC 0 0 0 0 0 0

% increase 10% 10% 10% 10% 10% 10%

Total 11.24 12.36 13.60 14.96 16.46 18.10

Accordingly, SLDC-Gujarat has to share charges of WRLDC/WRPC for the specified control

period. We have considered 10% escalation in the WRPC/WRLDC charges for the control

year 2011-12 to 2015-16.

5.11.6 ULD & C and Other Related Project Charges

5.11.6.1 ULD&C Charges

CERC has issued order for Approval of charges for Unified Load Despatch &

Communication Scheme in Western Region for the period from 1.2.2006. Accordingly, the

Central portion charges as per the preceding para shall be shared by

beneficiaries/constituents in Western Region in the ratio of central generating capacity

allocation, including the allocation from unallocated capacity from the Central Generating

stations. Inter-regional export/import of power, whether bilateral or multilateral, would

not affect the sharing of charges for Unified Scheme. The State portion charges shall be

shared by the States in proportion to respective capital cost as on 31.3.2006

In the 8th meeting of WRPC held on 12th September’2008, WRLDC had intimated that ULDC

project was under extended AMC period upto 31.05.2009 and stressed the need for going

in for a comprehensive Long Term Service Agreement (LTSA). In this connection, it was

informed to the committee that M/s. GE has submitted offer to take up AMC which broadly

covered the scope of SCADA/EMS/DTS software as well as hardware of SLDC/Sub-LDCs.

Subsequently, negotiation committee has been formed and deliberate on various options &

aspects. It was also agreed by all committee member of WR including SLDC-Gujarat in 10th

meeting that WRLDC/PGCIL would go ahead with awarding of maintenance of SCADA/EMS

system in Western Region to M/s GE and LTSA arrangements with them. Accordingly, the

aforesaid annual maintenance contract is commenced from 14th August’09. Percentage

sharing of GETCO is also decided as 17.36% as per agreement executed with PGCIL.

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Table 50:Proposed Cost of AMC for ULDC for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Proposed Cost of Contract 3250.00

% Sharing of GETCO 0.17

Share of GETCO 564.20

Proposed period of Contract 5.00

Annual Cost to GETCO 112.84 112.84 112.84 112.84 112.84 112.84

Actual Date of Commencement 14.08.2009

Anticipated sharing 112.84 112.84 112.84 112.84 112.84 112.84

The anticipated cost for LTSA (as recommended by TCC) is Rs. 32.5 crores for five years. The

charges to be shared by Gujarat are worked out in Table-53.

5.11.6.2Maintenance Contract for Wideband Communication

WR constituents including GETCO principally agreed to give AMC for Wideband

Telecommunication Equipment to M/s Ericsson India Pvt. Ltd for a period of 3years and

requested POWERGRID to finalise the terms and conditions and price with M/s Ericsson

keeping in view of expiry of the existing AMC for wideband telecommunication equipment by

09.04.2009. The above communication channels are required to bring data on SCADA system

from Chattisgarh, Madhya Prdaesh and Gujarat.

Accordingly, PGCIL finalized terms and conditions and technical specifications and price for

Long Term Service agreement for AMC of wideband telecom equipment supplied and

commissioned under System Coordination and Control project of Western Region with M/s

Ericsson India Pvt. The cost sharing for portion of Gujarat is as below :

Table 51: AMC for Wideband Telecommunication Eqpt. For the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Total Cost of the Project 659.17 659.17

sharing of GETCO 77.52 77.52

service Agreement for period (in Years) 3 3

Annual Payment 25.84 25.84 25.84 25.84 28.42 31.27

Amount in Lacs per year 25.84 25.84 25.84 25.84 28.42 31.27

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5.11.6.3Back up communication links from SLDCs & Strategic locations

In order to improve the reliability of data communication between WRLDC and SLDCs, a

scheme for backup communication links from SLDCs and strategic locations in the networks

of ULDC proposed by WRLDC/PGCIL was ratified by WRPC.

All constituents agreed to the need for back-up communication links between SLDCs /

Strategic locations and WRLDC and also usefulness of back-up links between Sub-LDCs to

SLDCs and cost of the above project is to be shared by constituents. It is assumed that sharing

of cost of this project is similar to that of ULD&C scheme. The sharing of cost for Gujarat

portion is calculated as below :

Table 52 : Back-up Communication Link

(Rs. In Lacs)

Particulars 2010-11

Total Cost of the Project 240

Sharing (in Percentage) 24.26%

Recovery Period (in yrs.) 1

Annual Payment 58.22

5.11.6.4 Shifting of SLDC under ULD&C scheme

During the 7th meeting of WRPC held on 3rd May’2008, it was decided that SLDC from Bhilai

will be shifted to Raipur under the ULD&C scheme network and the cost associated with the

network & data communication link will be pooled to regional system. The all constituents

were agreed and accordingly, the above expenditure is to be shared by all constituents of WR

including Gujarat. The sharing of cost for Gujarat portion is calculated as below :

Table 53 : Shifting of SLDC under ULD &C Scheme

(Rs. In Lacs)

Particulars 2010-11

Total Cost of the Project 516.00

Sharing (in Percentage) 24.26%

Recovery Period 1

Annual Payment 125.17

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5.11.6.5 Total charges of ULD&C and Other related projects

In consideration of above, the sharing of charges for SLDC-Gujarat for ULD&C scheme

derived in Table-57 for central portion and State portion. The capacity allocation is

considered for computation of central portion as per Regional Energy Account issued by

WRPC for the month of April’10.

Table 54: Projected ULDC & Other Related Project Charges for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Central Portion

Total ULDC Charges (Central Portion) 1980.19 1980.19 1980.19 1980.19 1980.19 1980.19

Weighted Average 24.17% 24.17% 24.17% 24.17% 24.17% 24.17%

Recovery of ULDC charges 478.57 478.57 478.57 478.57 478.57 478.57

State Portion

Total ULDC Charges (State Portion) 801.37 801.37 801.37 801.37 801.37 801.37

Ratio for Sharing (As per CERC Order) 24.67% 24.67% 24.67% 24.67% 24.67% 24.67%

Recovery of Capital Charges 197.74 197.74 197.74 197.74 197.74 197.74

Annual Maintenance Charges

Proposed Maintenance Charges 112.84 112.84 112.84 112.84 112.84 112.84

Maintenance for Wideband Communication

Proposed Maintenance Charges 25.84 25.84 25.84 25.84 28.42 31.27

Sharing in Shifting of SLDC under ULD & C

Proposed sharing of Charges 129.5 0.00 0.00 0.00 0.00 0.00

Backup Communication to ULD & C Scheme

Proposed sharing of Charges 58.48 0.00 0.00 0.00 0.00 0.00

Charges for ULD & C & Other related Projects 1002.96 814.98 814.98 814.98 817.57 820.41

5.12 Wide Area Measurement (WAM) System

5.12.1 In the 10th WRPC meeting, project of WAM system proposed by PGCIL in WR is approved

and agreed by WR constituents. This project provides more advanced measurement

systems that will be utilized for synchronized measurements from geographically distant

locations and increase the situational awareness by monitoring wide area in real time.

5.12.2 This project cost is to be pooled in regional system and to shared by WR constituents

including Gujarat. It is assumed that sharing of this project be carried out in proportionate

to allocation as in line with ULD&C scheme. Accordingly, annual charges to be shared by

SLDC-Gujarat.

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Table 55 : Projected WAM Charges for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Estimated

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Annual Instalment 90.27 90.27 90.27 90.27 90.27 90.27

% Allocation Average (As per March'09 REA) 25.10% 25.10% 25.10% 25.10% 25.10% 25.10%

Sharing by GETCO 22.655

22.655

22.655

22.655

22.655

22.655

5.13 Revenue from Other Sources

5.13.1 SLDC is collecting scheduling charges, application charges from various short term open

access users. Such revenue collection by SLDC-Gujarat is to be accounted as revenue from

other sources. Hence, it is appropriate to consider scheduling charges, application charges

collected from short term open access users as revenue from other sources.

5.13.2 SLDC-Gujarat earned further revenue from other sources in FY 10-11 which includes

interest on staff loans, interest on investments, income for sale of stores etc. Thus the

benefit on account of contribution from short term open access users and other sources is

passed to consumers.

5.13.3 The interest on staff loans, interest on investment, income for sale of stores etc. is to be

covered in other income. Revenue from other income is deducted from the total expenses

of SLDC to arrive at Net expenses of SLDC for the FY 2011-12.

Table 56 : Projected Revenue from Other Sources for the period 2010-11 to 2015-16

(Rs. In Lacs)


Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Interest on Staff Loans & Advances 6.34 6.85 7.39 7.99 8.63 9.32

2 Miscellaneous Receipts 2.15 2.32 2.51 2.71 2.93 3.16

3 Scheduling Charges 142.05 153.41 165.69 178.94 193.26 208.72

4 Application / registration Charges 11.46 12.38 13.37 14.43 15.59 16.84

Total 162.00 174.96 188.96 204.07 220.40 238.03

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5.14 Total Aggregate Revenue Requirement

5.14.1 Based on the above methodology, the annual revenue requirement for the control period

for FY 2011-12 to 2015-16 is calculated as per Table-60.

5.14.2 SLDC (GETCO) requests Honourable Commission to approve the Net SLDC operating and

capital charges for the control period as proposed in table below. These charges shall then

be recovered from the existing grid users as per the recovery mechanism mentioned

hereunder this application.

Table 57 : Projected Aggregate Revenue Requirement for the period 2010-11 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Employee Cost 818.74 900.61 990.67 1089.74 1198.71 1318.58


Admin & General Expenses 276.50 290.62 305.87 322.34 340.13 359.34




WAM Charges 22.66 22.66 22.66 22.66 22.66 22.66


Operating Cost Budget (a) 1882.40 1975.12 2076.75 2188.08 2313.87 2440.85

Depreciation 48.39 99.39 123.26 132.58 135.92 137.71

Interest & Finance Charges 83.78 112.40 136.11 148.99 150.45 148.06

Return on Equity 67.26 88.49 108.55 123.75 133.14 140.40

Total Fixed Costs 199.43 300.29 367.92 405.32 419.50 426.18

Less : Expenses Capitalized 0.00 0.00 0.00 0.00 0.00 0.00

Add : Provision for Tax 22.86 30.08 36.90 42.06 45.25 47.72

Capital Cost Budget(b) 222.29 330.36 404.81 447.38 464.75 473.90

Total Revenue Budget (a+b) 2104.70 2305.48 2481.56 2635.46 2778.62 2914.75

5.14.3 Since SLDC is also included in e-Urja project ( ERP ) covering one SLDC and three Sub-LDCs ,

the expenditure of such project is to be shared by SLDC. The allocation of such expenses

has been done to GETCO by GUVNL. Out of GETCO allocation, it is further allocated to SLDC

from FY 2009-10 which is now estimated as Rs. 100 Lacs for SLDC.

5.14.4 Further, project related with ULD&C scheme like maintenance charges for wideband

communication, back up communication scheme and shifting of SLDC is also planned for

WR system wherein Gujarat is also sharing cost. It results in increase of O&M expenses of

SLDC compared to previous year.

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Table 58 : Projected Operation & Maintenance Expenses for the period 2010-12 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Employee Cost 818.74 900.61 990.67 1089.74 1198.71 1318.58


Admin & General Expense 276.50 290.62 305.87 322.34 340.13 359.34



WAM Charges 22.66 22.66 22.66 22.66 22.66 22.66


Operating Cost Budget 2044.12 2149.99 2265.63 2394.39 2536.74 1858.21

In view of above circumstances, it is proposed to approve the estimated O&M expenditure

during the initial period of separation which facilitate SLDC to strengthen further and for

improvisation of SLDC services.

5.15 Methodology for Recovery Charges for Control Period

5.15.1 Section 32(3) of the Electricity Act, 2003 provides for levy and collection of such fees and

charges from the generating companies and licensees engaged in the intra-state

transmission of electricity as may be specified by the State Commission reproduced as

under :

“(3) The State Load Dispatch Centre may levy and collect such fee and charges from the

generating companies and licensees engaged in intra-State transmission of electricity as

may be specified by the State Commission.”

5.15.2 In pursuance of above provision of IE Act’2003 , Gujarat Electricity Regulatory Commission

issued regulation 5 of 2005 stipulates about recovery of SLDC Charges as under

(Clause 4(2)) :

“Expenses incurred by the SLDC in the discharge of its functions as specified in Section 32 of

the Electricity Act shall be recovered from the Generating Companies and Licensees

through Charges.”

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5.15.3 In pursuance of above said regulation, SLDC has to recover annual revenue requirement

against capital expenditure as well as O&M Charges as SLDC fees (on half-yearly basis) and

SLDC charges (on monthly basis). The principle for recovery of “SLDC fees and charges” in

order to recover annual revenue requirement is proposed in Para 5.3 of this application.

5.15.4 Applicant, therefore, proposed methodology for to recovery of SLDC charges and fees in

accordance with GERC regulation “levy and collection of SLDC Charges’ are as under :

(a) Registration or Connection Fees: Corresponding to clause no.3 of regulation 5 of

2005 issued by GERC and as per Grid Connection procedure prepared by SLDC-

Gujarat. The fees are to be recovered as specified by Hon’ble commission.

Grid connection procedure is circulated to grid users where procedure of registration

is stipulated. The registration or connection fees is to be paid while registration as

per “Grid Connection Procedure”.

It is to further clarify that registration is to be carried out for every update or

modification or addition of element into grid with the payment of grid connection

fees.

(b) Recovery of SLDC Fees – Corresponding to annual capital cost proposed/incurred

during ‘specified control period’ to be payable on semi-annual basis. Annual SLDC

fees shall be recovered from generating stations and distribution

licensee/beneficiaries in proportionate to their installed capacity and capacity

allocation to distribution licensee on semi-annual basis.

SLDC fees for generating companies ( for six months)

= (SLDC fees per MW per Six Month) x (Installed Capacity)

SLDC fees for distribution licensee/beneficiaries:

= (SLDC charges per MW per Six Month) x (Allocated Capacity )

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Note:

SLDC fees shall be recovered from each generating companies, distribution

licensee/beneficiaries on half yearly basis. The following aspects will be taken into

account while calculating and recovering SLDC fees :

(i) If any beneficiary/generating station is entering as Long term open access users

within part of six months, proportionate fees shall be recovered for equivalent

period. For example : If any generating station is added into grid from 1st July of

year, their fees will be calculated proportionately (1x 3/6x SLDC fees for HY) for

each MW quantum.

(ii) If any beneficiary/generating company is entering within part of month (i.e. for

few days), same will be consider equivalent to one month for the purpose of

recovery of SLDC fees.

(iii) In case of any upward revision occurred in capacity/allocation during the part of

six months, the additional SLDC fees shall be recovered for the remaining period

for the additional capacity.

(d) Recovery of SLDC Charges – corresponding to annual operating costs estimated

for the control period is to be recovered from the generating stations and

distribution licensee on monthly basis. It comprises employee expense, R&M

expense, A&G expense, interest on working capital, RLDC fees and charges and

payable monthly ULD&C and other related project charges.

SLDC charges for generating companies ( for one month)

= (SLDC charges per MW per Month) x (Installed Capacity)

SLDC charges for distribution licensee/beneficiaries:

= (SLDC charges per MW per Month) x (Allocated Capacity )

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Note:

SLDC charges shall be recovered from each generating companies, distribution

licensee/beneficiaries on monthly basis as per billing procedure prescribed by

commission vide clause 5.0 of aforesaid regulation. The following aspects will be

taken into account while calculating and recovering SLDC fees :

(i) If any generating station / beneficiaries entered as Long term open access

users within part of months, their charges shall be reduced proportionately

for equivalent period. For example : If any generating station entered on 11th

of the Month ( considering 30 days in a month), their charges will be

calculated in proportion with (20/30)x(SLDC Charges per Month) for 1 MW.

(ii) If any beneficiary/generating company is entering within part of day, same

will be consider equivalent to one day for the purpose of recovery of SLDC

fees.

(iii) In case of any upward revision occurred in capacity/allocation during the part

of months, the additional SLDC charges shall be recovered for the remaining

period for the additional capacity.

5.16 Proposed Grid Connection Fee

SLDC –Gujarat proposes to increase the fee for Grid Registration to Rs. 1,00,000/- from

present Rs. 10,000/- due to the reasons mentioned below

State Load Dispatch Centre has mandated under Section 32(1) to ensure integrated operation

of the State. It is the responsibility of SLDC that while allowing new generating station, license

or element to the grid, the integrated operation of State Power System should not be

affected. Also it is necessary to ensure the appropriate scheduling, Energy Accounting under

section 32(3) of IE Act’2003.

In order to exercise above, SLDC has to study various agreements, legal documents,

verification of technical information submitted to SLDC and to carry out comprehensive

system study in different scenario. It may involve site visit if required. By careful

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consideration of above, SLDC-Gujarat hereby proposes to increase the registration fee from

Rs.10,000/- to Rs. 1,00,000/- and to amend the clause no. 3(1) of regulation 5 of 2005.

5.17 Proposed SLDC Fees and Charges for the Control Period

The Applicant proposes the SLDC Charges and fees during the control period as follows:

Table 59:Proposed SLDC Fees & Charges for the period 2011-12 to 2015-16

Particulars

Proposed

2012-13 2013-14 2014-15 2015-16 2011-12

SLDC Operating Charges Budget 1975.12 2076.75 2188.08 2313.87 2440.85

Total MW Capacity 14904.24 16469.24 17809.24 22309.24 27805.04

Total MW Allocation 20607.05 23531.65 25544.85 30784.85 36998.85

SLDC Charges (Rs/MW/Month) 463.50 432.65 420.58 363.17 313.88

SLDC Capital Charges Budget 330.36 404.81 447.38 464.75 473.90

SLDC Fees (Rs/MW/Half Year) 465.15 506.00 515.96 437.67 365.64

Grid Connection Fees 100000.00 100000.00 100000.00 100000.00 100000.00

5.19 Capital Expenditure Plan for the MYT period 2011-12 to 2015-16

This portion comprises of revised Capital Expenditure plans with addition/modification to

earlier proposed by SLDC-Gujarat for the control period from FY 2011-12. Total capital

expenditure proposed during the FY 2011-12 is Rs. 495 Lacs in view of strengthening of

State Load Dispatch Centre.

Table 60 : Proposed Capex Plan for the period 2011-12 to 2015-16

(Rs. In Lacs)

Particulars (Rs. In Lacs)

Estimated Projected

2011-12 2012-13 2013-14 2014-15 2015-16

New Projects 495 460 264 183 163

Total Capex 495 460 264 183 163

5.19.1 Rational for Capital Expenditure

A significant portion of LDC cost arises because of the grid operations are to be carried out

round-the-clock requiring adequate redundancy in resources to tide over contingencies. There

is a heavy reliance on information technology with components having high obsolescence

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rate. A few of the applications (such as SCADA/EMS) are offered by a limited number of

vendors and costs are high.

In view of revised role of State Load Dispatch Centre after enactment of Electricity Act’2003, it

is necessary to strengthen SLDC to meet forthcoming challenges for next three years.

Accordingly, Capital Expenditure (CAPEX) is planned for modernization of SLDC, to strengthen

and develop to meet all forthcoming challenges during year 2011-12.

In accordance with recommendation 1(c ) and 1(d) of Girish Pradhan Committee endorsed by

GoI, Capital Expenditure (CAPEX) plans for modernization of all LDCs during 2009-12 should be

submitted and the approval of the respective Electricity Regulatory Commission (ERC) should

be obtained by 31st March 2009. Further, rolling 5-year CAPEX plans should be prepared by

each LDC and got approved by the respective ERCs to take care of the system expansion,

associated real-time data requirements as well as technological innovations and obsolescence

of control centre equipment. Hereby, the applicant submits five year CAPEX plan to Hon’ble

commission for approval.

CAPEX plan includes, projects mainly focused on system expansion, real time data

requirements, installation & development of telemeter infrastructure, technological

innovations and obsolesce & replacement of existing infrastructure, strengthening of existing

data communication channels, billing & commercial centre development, system study and IT

related infrastructure

5.19.2 Projection over Control Period 2011-12 to 2015-16

The current ongoing change of independent SLDC, ring fencing and separation of SLDC will

increase the capital expenditure in initial years as assets is to be transfer from GETCO to SLDC

through appropriate transfer scheme. According to recommendation of GOI report, as

endorsed by all States, new governance and institutional arrangement for the SLDC is to be

established. The institutionalized arrangement comprises corporate offices, infrastructure for

meetings/conferences, creation of Boards and their roles. Therefore the CAPEX plan for the

control period covered expenditure associated while institutionalizing the SLDC governance

board.

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SLDC has planned for creating infrastructure related with formation of separate company and

submitted to Hon’ble commission. However, due to delay in forming separate company, SLDC

has revised the capital expenditure plan for ensuing year and estimated planned capital

expenditure for FY 2011-12 accordingly.

The other aspect is the expansion and development of State electricity market. The

accelerated development of electricity markets are underway calls for requirement of SLDC

infrastructure. The SLDC capacity is largely depends upon the number of participants, capacity

handled, size of electricity network and number of generating station and substation modelled

for monitoring and control covers off line service cost. The present government has launched

a series of attracting policies for new generation, transmission companies and other small

captive/hydro generations. A number of forthcoming projects are going to be added in state

for which SLDC has to strengthen towards its commitment.

The other activities outlined in the CAPEX plan address the responsibilities and commitment of

SLDC towards new industry structure including needed evolution of State electricity market.

This covers a huge amount of investment because SLDC has to make a transition from existing

dependencies and redefine existing services to revised electricity market.

While redefining the existing services and development of SLDC, it brings uncertainties over

current and potential future regarding new capacity initiatives because the planning capacity

and schedules is changing over a period of time. The additional resources needed to identify

specifically while formulating CAPEX plan to address these uncertainties. The SLDC anticipate

that significant support is required for successful transition for SLDC to new structure.

5.19.3 Uncertainties in projecting Capex Plan

The change in existing network and addition of generating plant in the State Grid has an

impact on operational changes of grid. Sometimes such changes may create operational

constraints to SLDC/Sub-LDCs/other grid users which may not anticipated by SLDC. Such

impacts are to be addressed by SLDC, which calls for effective consultation process with

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stakeholders for their input and change in rules, which are to be facilitated by SLDC as an

independent power system operator. Therefore, the change in procedure requires huge

involvement and initiatives of SLDC and managed through formulation of Review Panel (Grid

Code Review Panel) as mandated by GERC. Such unanticipated changes bring uncertainties

over a planning of CAPEX for future years.

Policy changes/development in electricity market is continuing such as introduction of spot

price market, power exchange operation, change in grid code etc. The changes in policy over a

control period will reinforce the need of SLDC for efficient operation and reliable power

system. The such unanticipated changes creates a need to evolve CAPEX plan to meet

requirement arise for efficient grid operation. It brings further uncertainties over a CAPEX plan

based on existing policy framework and calls for continuous evaluation.

Whenever disturbance occurs in the system triggered by number of failures at various level

from within Gujarat power system or outside Gujarat Power System, it enlighten issues related

with what is needed to improve procedures and practices as a remedial measures across

industry. It may result into suggestion for strengthening of SLDC/RLDC like upgrading

standards for electricity system reliability, communication infrastructures,

tools/facilities/training and technology requirement to prevent all such failures in future. The

SLDC has to comply all such requirement and cost associated with such compliance may

change cost equation of budgeted plan because of unpredictable needs which brings

uncertainties over CAPEX planning process.

5.19.4 Key Assumptions

Considering significance of SLDC services and recognizing the potential uncertainties as

outlined above, it should address effectively while developing CAPEX plan in order to balance

with budgeted plan throughout control period. Therefore, SLDC has made certain assumption

for projection of CAPEX plan for control period as under:

CAPEX plan shall be prepared by keeping 50 Lacs (earlier it was kept 25%) provision of

total budget to address uncertainties and other contingencies over a control period.

Accumulated surplus at the end of year or plan period shall be carried forwarded and will

be utilized to address uncertainties over planning period.

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Load forecast (based on growth factor) and capacity projected shall be constant

throughout the control period.

Average annual floating rate interest on long term finance loan of SLDC (if exist after

separation of funding of SLDC), shall be in the range of 3-4% variation over the planning

period.

CAPEX Plan does not cover accidental expenditure due to natural hazards/calamities if

any during control period. Such expenditure shall be separately prepared as

“contingency plan” in such a way to recover full expenditure at the end of year (if period

of remaining recovery is more than three months). Otherwise same shall be recovered in

next control period.

5.19.5 Capital Spending during Control Period

Expenditure related with separation of SLDC

The transition to independent SLDC, requires separation of assets and liability from PGCIL

(for ULD&C project) and from GETCO (existing infrastructure and communication

equipments). The payment or fund required for funding such assets by making one-time

payment to parent organization covered into capital plan and such payment is planned for

next years as separation is to be done by SLDC as per time line set by GOI. The expenditure

related with separation of assets will be determined as per transfer scheme determined.

Task Force is created by Ministry of Power to look into the capital expenditure separation

and financial aspects of SLDC. Capital expenditure related with past CAPEX will be

determined based on report of Task Force. Presently, SLDC in process of creating separate

company and expanding infrastructure hence cost of land acquisition and separation of

communication equipment is covered only.

System Improvement

System improvements represent both functional improvement to existing systems (e.g.

Energy Management System) and upgrades to systems/software. Since most of the SLDC

systems were developed and deployed prior to 2002, large portions of the existing systems

are planned for upgrade or replacement over the planning period. Current applications

True-up for 2009-10





require up-gradation or replacement to allow for continued functioning with new hardware

and to allow for continued support from vendors. The section mainly includes up-gradation

of Energy Reporting System, Outage Management System, Data Pooling System,

Commercial & Accounting System, Energy Accounting Software, Strengthening of

Commerce and Billing Centre and Website Improvement & Up-gradation.

Additional System / Software Planning

Additional System/Software Planning represents requirement of softwares for existing

system running with old version of software. The large portion of existing software is

planned to be upgraded with additional procurement for evolving need of SLDC. The main

areas for system / software additions are Centralized database storage system, Simulator

for offline study system tools, Remote access system, e-Bidding & electronic Cash Transfer

system, Reporting tools, procurement of new application softwares.

IT Applications & Infrastructure

IT Infrastructure represents capital initiatives directed at maintaining and, as necessary,

enhancing the overall technology backbone of SLDC. The most systems within the SLDC,

most of the IT infrastructure has been in service for a number of years, in many instances

dating back to 2003 or earlier which was shifted from LD Jambuva to SLDC Gotri. Therefore,

investment in the SLDCs infrastructure in the area of IT applications & infrastructure is

necessary to reasonably ensure the information backbone of SLDC remains effective,

reliable, and efficient. In this regard SLDC is looking forward to strengthen its IT Security

System, upgrading the current Network System and establishing a Video Conferencing

System between SLDC and RLDC.

Other Capital Projects

Other capital projects represent physical infrastructure activities, such as corporate office,

staff quarters and infrastructure and facilities to be developed for SLDC staff. It also covers

new additions in the office equipments to keep SLDC updated and efficient.

True-up for 2009-10





Table 61 :Break-up of Capex Plan for the Control Period 2011-12 to 2015-16

(Rs. In Lacs)


Estimated Projected

2011-12 2012-13 2013-14 2014-15 2015-16

1 land Acquisition Cost 20 20 0 0 0

2 Augmentation/Upgradation of Existing System 192 145 90 75 75

3 Strengthening of Communication Channels 55 50 35 30 30

4 Additional System / Software Planning 43 40 20 20 20

5 IT Infrastructure 50 20 10 10 10

6 SLDC Building Development 50 120 80 30 10

7 Office Equipment 75 50 14 11 11

8 Staff Recreation Facilities 10 15 15 5 5

9 Additional Expenditure 2 2

Total Capital Expenditure 495 460 264 183 163

5.19.6 Funding of proposed Capital Expenditure

The above shown Capital expenditure in the control period is proposed to be raised through

the means of loans and equity with the debt equity ratio of 70:30. Presently, such loans

would be availed by GETCO in the initial period of separation of SLDC and allocate to SLDC

till formation of separate company and representative structure board.

Table 62 : Funding of the Proposed Capex for the Control Period 2011-12 to 2015-16

(Rs. In Lacs)

Particulars

Estimated Projected

2011-12 2010-13 2013-14 2014-15 2015-16

Estimated Capex 495 460 264 183 163

Funding through Debt 346.5 322 184.8 128.1 114.1

Funding through Equity 148.5 138 79.2 54.9 48.9

True-up for 2009-10





Chapter 6 : Compliance of Directives

Various directives have been issued by Government of Gujarat and/or Gujarat Electricity

Regulatory Commission to SLDC through regulation or appropriate communication. Further,

Hon’ble commission has issued certain directives to GETCO which in turn applicable to SLDC are

covered in this chapter with necessary compliance:

6.1 Monthly Reporting of activities relating to STOA users

Directive :

The Commission has directed SLDC to submit on a monthly basis the activities being undertaken

with reference to the STOA consumers and report on a monthly basis, the details of the STOA

consumers being served, number of applications received, the number of applications processed

and the permissions granted.

Compliance / Action taken :

As per the directive of Hon’ble commission SLDC had sent the Details of STOA consumer month

wise up to the month of Oct. 2010.

It is prayed that the submission of STOA consumer data has been delayed. SLDC prays to condone

the delay. And also SLDC assure duly submission of STOA consumer details regularly on monthly

basis now on words, before the Hon’ble commission.

6.2 Ring Fencing and autonomy of SLDC

Directive :

As per the directive from the Ministry of Power (MOP), ring fencing and autonomy of SLDC had to

be undertaken and activities to this effect had to be pursued. Further, a Task Force was formed

which provided recommendations on the activities to be undertaken in order to ensure ring

fencing and for ensuring autonomy of SLDC. The Commission has directed SLDC to share

information on the recommendations of the Task Force and also a status report on the

recommendations which have been adopted by SLDC.

True-up for 2009-10






SLDC has initiated various activities regarding the ring fencing.

As per the Task Force report, for separate SLDC company the resolution has been passed for

making separate company the GETCO and GUVNL board passed the resolution in line of MOP

report about ring fencing of SLDC. The proposal sent to GOG for the approval and notification on

receiving the same SLDC will further take action in the matter.

Identification and Valuation of assets is completed, Transfer of Assets to SLDC from GETCO shall be

carried out after notification from GOG. Similarly transfer of ULDC project shall be as per directives

of authorities. Separate ARR for SLDC had prepared and duly approved by Hon’ble commission for

the FY 2010-11.

6.3 Implementation of Intra-State ABT

Directive :

With respect to the mock exercise which has been carried out by SLDC for the implementation of

the intra-state ABT, it is understood by the Commission that a few of the participating entities have

raised issues/concerns. These issues relate to technical problems at certain bus bars, inconsistency

with provisions in the existing power purchase agreements, etc. Further, the Commission had

during the course of the State Coordination Forum Meeting, advised the Petitioner to arrive at

amicable solutions addressing the issues raised by the participating entities. The Commission has

directed SLDC to submit a report on the issues which have been raised by the participating entities

during the course of the mock exercise and to indicate the solutions which SLDC may have

provided to resolve the issues raised


As per the Hon’ble commission order No 3 of 2010, Intra state ABT is fully implemented with all its

commercial aspects w.e.f. 5th April 2010. In line of Implementation of Intra state ABT, SLDC initiate

following activity,

Round the clock scheduling:

SLDC has established round the clock scheduling with day ahead and real time revision and

schedule is also configured on SLDC’s web site.

True-up for 2009-10





State Energy Account:

SLDC has established the Accounting system for state Energy account and already prepared up to

November, 2010 and UI bills up to 21st November, 2010 duly configured on SLDC’s web site. And

pool account system with all its commercial aspects.

There are no any such issues regarding implementation of Intra state ABT with all its commercial

aspects in the state.

SLDC is keen and constantly working for improvement in its infrastructure and use of new

technology in Accounting and scheduling.

SLDC is also making its methodology transparent and open to all pool members and in future will

settle any issue raised by any entities/constitute with prevailing regulation and directives of

Hon’ble commission time to time.

True-up for 2009-10





Chapter 7 : Prayer

SLDC – Gujarat respectfully prays to the Hon'ble Commission;

1. To admit this petition for approval of annual revenue requirement of State

Load Dispatch Centre of Gujarat

2. To approve the ARR for the first control period and allow recovery of charges

from 1st April’2011.

3. To accept the figures in Rupees Lacs, as the figures of SLDC are comparatively

smaller than other entities.

4. To approve methodology for recovery of SLDC Charges and fees from existing

intra State grid users.

5. To approve capital expenditure as proposed in chapter 5 for ensuing year

CAPEX plan for 2011-12 to 2015-16.

6. To grant any other relief as the Hon'ble Commission may consider appropriate.

7. To allow further submissions, addition and alteration to this Petition as may be

necessary from time to time.

8. To pass any other order as the Hon’ble Commission may deem fit and

appropriate under the circumstances of the case and in the interest of justice.

9. To condone delay in filing of this petition.

Declaration that the subject matter of the petition has not been raised by the petitioner

before any other competent forum, and that no other competent forum is currently

seized of the matter or has passed any orders in relation thereto.

PETITIONER


Vadodara :

Date:

True-up for 2009-10





BEFORE THE HONOURABLE GUJARAT ELECTRICITY REGULATORY COMMISSION AT

ITS OFFICE OF 1ST FLOOR, NEPTUNE TOWER, OPPOSITE NEHRU BRIDGE, ASHRAM

ROAD, AHMEDABAD

FILING NO. :________________

CASE NO. :________________

In the Matter of

Filing of the True-up for 2009-10, Annual Performance Review for the FY 2010-11 and Aggregate

Revenue Requirement (ARR), for the Second Control Period of FY 2011-12 to 2015-16 for

determination of SLDC Tariff under MYT Regulation Framework and Part VII (Section 61 to Section

64) of the Electricity Act, 2003 read with the relevant GERC Guidelines and Regulations till date, by

the State Load Dispatch Centre under administration of Gujarat Energy Transmission Corporation

Ltd. (‘GETCO’ or ‘the Licensee’) as the Transmission Licensee.

And

In the Matter Of


Gujarat Energy Transmission Corporation Ltd.,

Sardar Patel Vidyut Bhavan, Race Course,

Vadodara-390007

------ Applicant

And

In the Matter of

Long Term Open Access users or intra state entities (Generating Station/ Distribution licensee/

Transmission licensee/Captive Power plants) of State Transmission network, and/or generating

station/distribution/transmission licensee falls within jurisdiction of SLDC-Gujarat for the purpose

scheduling, accounting and monitoring.

In the Matter Of

1 Dakshin Gujarat Vij Company Ltd., Nana Varacha Road, Kapodra, Surat-Gujarat.

2 Madhya Gujarat Vij Company Ltd., Sardar Patel Vidyut Bhavan, Race Course, Vadodara – 390007

3 Paschim Gujarat Vij Company Ltd., Laxmi Nagar, Nana Mava Road, Rajkot –Gujarat

True-up for 2009-10





4 Uttar Gujarat Vij Company Ltd., Vis Nagar Road, Mehsana-384001

5 Torrent Power Surat Electricity Company Ltd., Tilak-Medan, Station Road, Torrent House Surat

6 Torrent Power Ahmedabad Electricity Company Ltd., Electricity House, Lal Darwaja, Ahemedabad-380 009

7 Kandla Port Trust Ltd. Kandla , Gandhidham

8 Gujarat State Electricity Corporation Ltd, Sardar Patel Vidyut Bhavan, Race Course, Vadodara-390007

9 Gujarat Industries Power Company Ltd., - I P.O. Petrochemical - 391346, Dist.: Vadodara, Gujarat

10 Gujarat Industries Power Company Ltd., - II P.O. Petrochemical - 391346, Dist.: Vadodara, Gujarat

11 Gujarat State Energy Generation Ltd. Block No.15, 3rd Floor, Udyog Bhavan, Sector No.11, Gandhinagar- 382011 Gujarat State Energy Generation Ltd. Village Mora, Post Bhatha, Surat Hazira Road, Dist:Surat

12 Gujarat Industrial Power Corporation Ltd, Surat Lignite Power Plant, Village :Nani Naroli, Ta: Mangrol, Dist:Surat-394110

13 Gujarat Paguthan Energy Corporation Pvt. Ltd., 6th Floor, Chanakya, Off Ashram Road, Ahmedabad – 380009 .

Gujarat Paguthan Energy Corporation Pvt. Ltd. Village :Paguthan, Dist: Bharuch- 392015

14 Essar Power Limited, Essar House, 11, K.K.Marg, Mahalaxmi,Mumbai-400034

15 Gujarat Mineral Development Corporation, “Khanij Bhavan” Near University Ground, 132 Feet Ring Road, Vastrapura-380052

Akrimota Lignite Thermal Power Station , Village :Nani Cher, Ta: Lakhpat District: Kutch, Gujarat.

16 Torrent Power Ltd. Torrent House, Off. Ashram Road, Ahemdedabad-380009 . Torrent Power Ltd., 1147.50 Mw CCPP Sugen, Village : Akhikhol, Ta:Kamrej, Dist: Surat-394155

True-up for 2009-10





17 Oil & Natural Gas Corporation Ltd, CPF-Gandhar-393010, Ankleshwar

18 Oil & Natural Gas Corporation Ltd, Hazira Plant, Surat-394518 Hazira

19 SALSteel Limited, Survey No.254, Paiki, Kidana– Bharpar Road, Village : Bharpara, Taluka: Gandhidham, Dist. Kutch, Gujarat

20 United Phosphorus Limited, 750-GIDC, Post Box No.9, Jhagadiya- 393110

21 Bhandar Power Ltd., 27th KM Surat-Hazira Road, Hazira, Surat-394270

22 Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai 400 021

23 Jindal Centre, 12 Bhikaiji Cama Place, New Delhi 110066

24 Gallantt Metal Limited, 11, CROOKED LANE, SECOND FLOOR KOLKATA - 700 069

25 Hindalco Industries Ltd Century Bhavan, 3rd floor Dr. Annie Besant Road Worli Mumbai 400 030

26 Varrsana Ispat Everest House, 46C, Chowringhee Road, 15 th Floor, R.No. 15B, Kolkata 700 071, India

27 GFL, Dahej INOX Towers, Plot No. 17, Sector 16-A, Noida - 201301 U.P.,(India)

28 Mid India Power & Steel Limited Plot No. 332, New G.I.D.C, Phase II Mithirohar, Gandhidham. Kutch. Gujarat. India. 370201.

29 Essar Power Limited, 27 Kv Surat-Hazira Road, Hazira-394270.

30 J.K. Paper Ltd. 3rd Nehru House, 4, Bahadur Shah Zafar Marg New Delhi – 110002

--------Respondents

True-up for 2009-10





Affidavit Verifying the Petition

Affidavit of Natvarbhai Son of Shri Hargovandas Suthar aged about 57 years, residing at B2/8,

Vidyutnagar Colony, Old Padra Road, Vadodara-390007 do hereby solemnly affirm and state as

under :

1. I am the Chief Engineer of SLDC Gujarat Deponent in the above matter and I am fully aware

of the facts mentioned in the Reply, hence competent to swear to this affidavit.

2. I have gone through the contents of Reply on behalf of the State Load Dispatch Centre,

Respondent No. 1 and I say that the facts stated therein are based on the records of Respondent

No.1 maintained in the normal course of Business.

3. the annexures to the Reply are true copies of their originals.

Applicant

VERIFICATION

I, the deponent above named do hereby verify that the contents of my above affidavit are true to

my knowledge, no part of it is false and nothing material has been concealed there from.

Verified at……….on this…….day of December’2010

True-up for 2009-10





8. Annexures

True-up for 2009-10





8.1 Annexure I – Summary Sheet

Name of the SLDC : State Load Dispatch Centre of Gujarat

Name of the Transmission System : Gujarat energy Transmission Corporation Limited

Name of the Region : Western Region

(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Depreciation Form-11 48.39 99.39 123.26 132.58 135.92 137.71

2 Interest on Loan Form-11 83.78 112.40 136.11 148.99 150.45 148.06

3 Return on Equity Annexure 3 67.26 88.49 108.55 123.75 133.14 140.40

4 Interest on Working Capital Form-15 29.19 30.63 31.89 32.85 34.65 25.28

6 O & M Expenses 2044.12 2158.96 2265.63 2394.39 2536.74 1858.21

Petitioner

True-up for 2009-10





8.2 Annexure 2 - Statement of Depreciation




(Rs. in Lacs)

Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Depreciation on Capital Cost 48.39 99.39 123.26 132.58 135.92 137.71

48.39 99.39 123.26 132.58 135.92 137.71

Depreciation on Additional Capitalization

Amount of Additional Capitalization 0.00 0.00 0.00 0.00 0.00 0.00

Depreciation Amount 0.00 0.00 0.00 0.00 0.00 0.00

Details of FERV

Amount of FERV on which Depreciation Charged 0.00 0.00 0.00 0.00 0.00 0.00

Depreciation Amount 0.00 0.00 0.00 0.00 0.00 0.00

Depreciation recovered during the year 0.00 0.00 0.00 0.00 0.00 0.00

Cumulative Depreciation 48.39 99.39 123.26 132.58 135.92 137.71

Petitioner

True-up for 2009-10





8.3 Annexure 3 – Calculation of Return on Equity




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Opening Equity Capital 402.98 557.84 706.34 844.34 923.54 978.44

2 Addition During the Year 154.86 148.50 138.00 79.20 54.90 48.90

3 Closing Equity 557.84 706.34 844.34 923.54 978.44 1027.34

4 Total Average Equity 480.41 632.09 775.34 883.94 950.99 1002.89

5 Rate of Return on Equity 14.00 14.00 14.00 14.00 14.00 14.00

6 Return on Equity 67.26 88.49 108.55 123.75 133.14 140.40

Petitioner

True-up for 2009-10





8.4 Annexure 4 – Calculation of Interest on Loans




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Opening Loans 653.40 949.40 1200.96 1402.86 1447.38 1430.74

2 Addition During Year 361.34 346.50 322.00 184.80 128.10 114.10

3 Increase/Decrease due to FERV 0.00 0.00 0.00 0.00 0.00 0.00

4 Increase/Decrease due to ACE 0.00 0.00 0.00 0.00 0.00 0.00

5 Total 1014.74 1295.90 1522.96 1587.66 1575.48 1544.84

6 Repayment During the Year 65.34 94.94 120.10 140.29 144.74 143.07

7 Net Closing Loans 949.40 1200.96 1402.86 1447.38 1430.74 1401.77

8 Net Average Loans 801.40 1075.18 1301.91 1425.12 1439.06 1416.25

9 Weighted Avg. Rate of Interest 10.45% 10.45% 10.45% 10.45% 10.45% 10.45%

10 Interest on Loans 83.78 112.40 136.11 148.99 150.45 148.06

Petitioner

True-up for 2009-10





8.5 Annexure 5 – Calculation of Interest on Working Capital




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 O & M Expenses 170.34 179.91 188.80 199.53 211.40 154.85

2 Maintenance and Spares 6.25 5.32 4.92 2.94 2.01 1.75

3 Receivables 71.80 75.47 77.70 77.07 81.49 58.57

4 Total Working Capital 248.39 260.71 271.42 279.53 294.89 215.17

5 Rate of Interest 11.75% 11.75% 11.75% 11.75% 11.75% 11.75%

6 Interest on working capital 29.19 30.63 31.89 32.85 34.65 25.28

Petitioner

True-up for 2009-10





8.6 Annexure 6 – Break-up of Employee Cost




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-

14 2014-15 2015-16

1 SALARY 326.35 358.99 394.88 434.37 477.81 525.59

2 OVERTIME 0.75 0.83 0.91 1.00 1.10 1.21

3 DEARNESS ALLOWANCE & DEARNESS PAY 153.38 168.72 185.60 204.15 224.57 247.03

4 OTHER ALLOWANCES 140 154.00 169.40 186.34 204.97 225.47

5 BONUS 0.15 0.17 0.18 0.20 0.22 0.24

SUB-TOTAL 620.6345 682.70 750.97 826.06 908.67 999.54

6 MEDICAL EXPENSES REIMBURSHMENT 22.55 24.81 27.29 30.01 33.02 36.32

7 LEAVE TRAVEL ASSISTANCE 0.69 0.76 0.83 0.92 1.01 1.11

8 EARNED LEAVE ENCASHMENT 0.29 0.32 0.35 0.39 0.42 0.47

9 WAIVAL OF O/S. HBA LOAN & INTEREST 0.00 0.00 0.00 0.00 0.00

10 DEATH & ACCIDENT COMPENSATION 0.00 0.00 0.00 0.00 0.00

11 PAYMENT UNDER WORKMEN'S COMP Act. 0.00 0.00 0.00 0.00 0.00

12 INTERIM RELIEF TO STAFF 0.00 0.00 0.00 0.00 0.00

13 BOARD;S CONTRI. BOMBAY LABOUR WELFARE ACT. 0.00 0.00 0.00 0.00 0.00

14 EDLI- BOARD;S CONTRIBUTION 0.00 0.00 0.00 0.00 0.00

15 EDLI - ADMINISTRATION CHARGES 0.00 0.00 0.00 0.00 0.00

16 ESIS - BOARD;S CONTRIBUTION 0.00 0.00 0.00 0.00 0.00

SUB TOTAL 23.53 25.88 28.47 31.32 34.45 37.90

17 STAFF WELFARE EXPENSES 7.00 7.70 8.47 9.32 10.25 11.27

SUB TOTAL 7.00 7.70 8.47 9.32 10.25 11.27

18 TERMINAL BENEFITS 167.57 184.33 202.76 223.04 245.34 269.88

SUB-TOTAL 167.57 184.33 202.76 223.04 245.34 269.88

19 ADDITIONAL COST 0 0.00 0.00 0.00 0.00 0.00

SUB-TOTAL 0 0 0 0 0 0

GRAND TOTAL 818.74 900.61 990.67 1089.74 1198.71 1318.58

Petitioner

True-up for 2009-10





8.7 Annexure 7 – Break-up of Administration & General Expenses




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 LEASE PREMIUM ON OPERATING LEASE 3.15 3.40 3.67 3.97 4.29 4.63

2 RENT INCLUSING LEASE RENTALS 0.00 0.00 0.00 0.00 0.00

3 PENALTIES ON STATUORY LEVIES 0.00 0.00 0.00 0.00 0.00

4 INSURANCE 0.02 0.02 0.02 0.03 0.03 0.03

5 ANNUAL INSPECTION 0.00 0.00 0.00 0.00 0.00

6 TELEPHONE/POSTAGE/TELEX/MOBILE CHARGES 51.83 55.98 60.45 65.29 70.51 76.16

7 FEE TO AUDITOR 1.00 1.08 1.17 1.26 1.36 1.47

8 LEGAL CHARGES 16.75 18.09 19.54 21.10 22.79 24.61

9 AUDIT CHARGES 2.00 2.16 2.33 2.52 2.72 2.94

10 CONSULTANCY CHARGES 1.50 1.62 1.75 1.89 2.04 2.20

11 TECHNICAL FEES 0.50 0.54 0.58 0.63 0.68 0.73

12 OTHER PROFESSIONAL FEES & EXPENSES 0.06 0.06 0.07 0.08 0.08 0.09

13 CONVEYANCE & TRAVEL 20.62 22.27 24.05 25.98 28.05 30.30

14 ADMN. CHARGES FOR RESTORATION OF DEMAGES 0.00 0.00 0.00 0.00 0.00

15 PRINTING & STATIONARY 4.97 5.37 5.80 6.26 6.76 7.30

16 EXPENSES ON COMPUTER BILLING & EDP CHARGES 2.82 3.05 3.29 3.55 3.84 4.14

17 Adv. Exp. &ZEROX CHARGES 0.59 0.64 0.69 0.74 0.80 0.87

18 ELECTRICITY CHARGES 52.28 56.46 60.98 65.86 71.13 76.82

19 WATER CHARGES 0.68 0.73 0.79 0.86 0.93 1.00

20 ENTERTAINMENT 0.04 0.04 0.05 0.05 0.05 0.06

21 EXPENSES ON MEETING & CONFERENCES 11.24 12.14 13.11 14.16 15.29 16.52

22 MISCELLENEOUS EXPENSES 4.87 5.26 5.68 6.13 6.63 7.16

23 FREIGHT & OTHER PURCHASE RELATED EXPENSES, ADVT. CHARGES & Feb. Chr. 1.58 1.71 1.84 1.99 2.15 2.32

24 EXPENDITURE ON TRAINING TO STAFF 0.00 0.00 0.00 0.00 0.00

Sub Total 176.50 190.62 205.87 222.34 240.13 259.34

25 e-Urja Allocation 100.00 100.00 100.00 100.00 100.00 100.00

Total 276.50 290.62 305.87 322.34 340.13 359.34

: Western Region

Petitioner

True-up for 2009-10





8.8 Annexure 8 – Break-up of Repairs & Maintenance Expenses




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 PLANT AND MACHINERY 57.42 63.16 69.48 76.43 84.07 92.48

3 BUILDING 9.77 10.75 11.82 13.00 14.30 15.73

4 OTHER CIVIL WORK 0.33 0.36 0.40 0.44 0.48 0.53

5 HYDRAULIC WORK 0.00 0.00 0.00 0.00 0.00 0.00

6 LINES, CABLE NET WORK ETC. 0.00 0.00 0.00 0.00 0.00 0.00

7 VEHICLES 0.00 0.00 0.00 0.00 0.00 0.00

8 FURNITURE, FIXTURE 3.25 3.58 3.93 4.33 4.76 5.23

9 OFFICE EQUIPMENTS 0.33 0.36 0.40 0.44 0.48 0.53

SUB TOTAL 71.10 78.21 86.03 94.63 104.10 114.51

Petitioner

True-up for 2009-10





8.9 Annexure 9 – Break-up of Operation & Maintenance Expenses




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 Employee Cost 818.74 900.61 990.67 1089.74 1198.71 1318.58

2 Repairs & Maintenance 71.10 78.21 86.03 94.63 104.10 114.51

3 Admin & General Expense 276.50 299.62 305.87 322.34 340.13 359.34

4 RLDC Fees & Charges 11.24 12.36 13.60 14.96 16.46 18.10

5 Charges for ULDC & other Related Projects 814.98 814.98 814.98 817.57 820.41 0.00

6 WAM Charges 22.66 22.66 22.66 22.66 22.66 22.66

7 Interest on Working Capital 28.90 30.52 31.82 32.49 34.28 25.03

Operating Cost Budget 2044.12 2158.96 2265.63 2394.39 2536.74 1858.21

Petitioner

True-up for 2009-10





8.10 Annexure 10 – Break-up of Depreciation




(Rs. in Lacs)

Sl. No. Particulars

Estimated Projected

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 LAND & LAND RIGHTS - - - - - -

2 BUILDING 5.82 6.40 7.04 7.75 7.75 7.75

3 OTHER CIVIL WORK 0.18 0.20 0.22 0.24 0.24 0.24

4 HYDRAULIC WORK 0.72 0.79 0.87 0.96 0.96 0.96

5 PLANT & MACHINERY 16.18 17.80 19.58 21.54 21.54 21.54

6 LINES & CABLE NET WORK 0.66 0.73 0.80 0.88 0.88 0.88

7 VEHICLES 0.30 0.33 0.36 0.40 0.40 0.40

8 FURNITURE & FIXTURE 2.36 2.60 2.86 3.14 3.14 3.14

9 OFFICE EQUIPMENTS 22.17 70.54 91.53 97.67 101.01 102.80

SUB TOTAL 48.39 99.38 123.26 132.57 135.91 137.70

Petitioner

True-up for 2009-10





8.11 Annexure 11 – Generating Capacity


Name of the Transmission System : Gujarat Energy Transmission Corporation Limited


(in MW)

Sl. No Generation Capacity

Estimated Projected

2010-11 2011-12 2012-

13 2013-

14 2014-

15 2015-

16

GSECL

a Ukai TPS 850 1350 1350 1350 1350 1350

b UKAI HPS 305 305 305 305 305 305

c GTPS 1-4 660 660 660 660 660 660

d GTPS 5 210 210 210 210 210 210

e WTPS 1-6 1260 1260 1260 1260 1260 1260

f WTPS 7 210 210 210 210 210 210

g WTPS 8 0 0 0 0 800 800

h SIKKA TPS 240 240 240 240 240 240

i SIKKA UNIT 3 0 0 250 250 250 250

j SIKKA UNIT 4 0 0 0 250 250 250

k KLTPS 290 290 290 290 290 290

l DTPS 220 220 220 220 220 220

m DHUVARAN CCPP 3 0 0 0 360 360 360

n KADANA HYDRO 242 242 242 242 242 242

o UTRAN GAS BASED 135 135 135 135 135 135

p UTRAN CCPP EXTN. 374 374 374 374 374 374

q DGBS - I 107 107 107 107 107 107

r DGBS - II 113 113 113 113 113 113

s Maniyari, Patan 0 0 0 0 1200 1200

t Bhadodar, Banskantha 0 0 0 0 1200 1200

Total GSECL 5216 5716 5966 6576 9776 9776

IPPS

a GIPCL-I 145 145 145 145 145 145

b GIPCL-II 165 165 165 165 165 165

c GIPCL-SLPP 250 250 250 250 250 250

d GIPCL-SLPP Extn. 250 250 250 250 250 250

e ESSAR 300 300 300 300 300 300

f ESSAR, Vadinar 0 1000 1000 1000 1000 1000

g ESSAR Salaya, Phase II 0 0 0 0 0 800

h GPEC 655 655 655 655 655 655

i GSEG 156 156 156 156 156 156

j GSEG HAZIRA Extn. 350 350 350 350 350 350

k GMDC - Akrimota 250 250 250 250 250 250

l ADANI, MUNDRA -I & II 500 500 500 500 500 500

m ADANI, MUNDRA -III & IV 500 500 500 500 500 500

n ADANI, MUNDRA -V & VI 0 1000 1000 1000 1000 1000

o GPPC, Pipavav 350 350 350 350 350 350

p GPPC, Pipavav - II 0 350 350 350 350 350

True-up for 2009-10





q SHAPOORJI PALLONJI, Kodinar 0 0 0 0 0 800

r KSK MAHANANDI, Chattisgarh 0 0 0 0 0 1010

s BECL, Padva - I & II 0 0 600 600 600 600

t NTPL 0 0 0 0 270 270

u OPG Power 0 0 0 0 300 300

v GPPC (Conversion GTPS 3 & 4) 0 0 0 0 0 1372

w GPPC (Conversion Sikka 1 & 2) 0 0 0 0 0 457

x GPPC (Conversion DTPS 5 & 6) 0 0 0 0 0 457

y Tilaiya UMPP 0 0 60 180 300 300

z Akaltara UMPP 0 0 55 165 275 275

Total IPPs 3871 6221 6936 7166 7966 12862

CPP (W) 838 84 84 84 84 84

Renewables

a WIND FARM 2091 2391 2691 2991 3291 3591

b SOLAR PROJECTS 46 427 727 927 1127 1427

c MINI HYDEL PROJECTS 6 6 6 6 6 6

d BAGASSE PROJECTS 0 60 60 60 60 60

Total Renewables 2143 2883 3483 3983 4483 5083

Total 12068 14904 16469 17809 22309 27805

Petitioner

True-up for 2009-10





8.12 Annexure 12 – Allocation Capacity to LTOA Users




(in MW)


Estimated Projected

2010-11 2011-12

2012-13

2013-14

2014-15

2015-16

1 DGVCL 3391 4651 5400 5916 7258 8850

2 MGVCL 1748 2398 2784 3050 3742 4562

3 UGVCL 3651 5008 5815 6370 7815 9529

4 PGVCL 4447 6101 7083 7760 9520 11608

5 GSFC FIBRE 5 5 5 5 5 5

6 GSFC POLYMER 2 2 2 2 2 2

7 GSFC SIKKA 5 5 5 5 5 5

8 GSFC VADODARA 47 47 47 47 47 47

9 GACL VADODARA 41 41 41 41 41 41

10 GAIL 2 2 2 2 2 2

11 DIU & DAMAN 70 70 70 70 70 70

12 DADRA NAGAR HAVELI 155 155 155 155 155 155

13 ONGC HAZIRA 14 14 14 14 14 14

14 ONGC ANKLESHWAR 16 16 16 16 16 16

15 GACL WHEELING 12 12 12 12 12 12

16 SEARCHCHEM 11 11 11 11 11 11

17 NIRMA 0 0 0 0 0 0

18 ESSAR STEEL LTD. 751 0 0 0 0 0

19 SAL STEEL LTD 14 14 14 14 14 14

20 NTPC VARIAV 1 1 1 1 1 1

21 TPAECL 500 500 500 500 500 500

22 TPSECL 574 574 574 574 574 574

23 WIND FARM USERS (W) 963 963 963 963 963 963

24 HEAVY WATER PLANT (H) 18 18 18 18 18 18

25 MUPL (from ADANI) ** 9 9 9 9 9 9

26 TEL (from SUGEN) ** 15 15 15 15 15 15

Total 16437 20607 23532 25545 30785 36999

Petitioner

True-up for 2009-10





8.13 Annexure 13 – Power Station Wise Allocation to Distribution Licensees




Sl. No. Name of the Generating Station Installed Capacity

Capacity Allocation

PGVCL UGVCL DGVCL MGVCL KPTL

1 NPC - Tarapur- 1&2 160 96 64 0 0 0

2 NTPC - KORBA 360 216 144 0 0 0

3 NTPC - VINDHYACHAL - I 230 138 92 0 0 0

4 NTPC - Sipat Stage - II 273 164 109 0 0 0

5 NTPC - VINDHYACHAL - II 239 143 96 0 0 0

6 NPC - Kakrapar 125 75 50 0 0 0

7 GIPCL-SLPP 500 300 200 0 0 0

8 Ukai TPS 850 383 467 0 0 0

9 NTPC - VINDHYACHAL - III 266 160 106 0 0 0

10 NTPC - Kahalgoan 141 0 0 56 85 0

11 Kutch Lignite I to III 215 129 86 0 0 0

12 Kutch Lignite IV 75 45 30 0 0 0

13 Wanakbori VII 210 126 84 0 0 0

14 GMDC - Akrimota 250 150 100 0 0 0

15 GIPCL II (165) 165 99 66 0 0 0

16 Gandhinagar V 210 126 84 0 0 0

17 Wanakbori I to VI 1260 557 308 72 315 8

18 GSEG 156 94 62 0 0 0

19 NPC - Tarapur- 3&4 274 0 164 0 110 0

20 Gandhinagar I to IV 660 0 0 495 165 0

21 GIPCL - I (145) 42 0 0 17 25 0

22 Dhuvaran Gas Based - Stage-I 107 0 43 64 0 0

23 NTPC - JHANOR 237 0 95 142 0 0

24 Dhuvaran Gas Based - Stage-II 112 0 45 67 0 0

25 GPEC 655 106 106 287 156 0

26 NTPC - KAWAS 187 0 0 112 75 0

27 Utran Gas Based 135 0 0 81 54 0

28 Sikka TPS 240 0 0 144 96 0

29 ESSAR 300 0 0 180 120 0

30 Utran Extension 374 0 0 280 94 0

31 Ukai Hydro 305 0 0 305 0 0

32 Kadana Hydro 242 0 0 242 0 0

33 SSNNL - Hydro 232 116 116 0 0 0

34 Captive Power Plant 15 15 0 0 0 0

35 APL 750 400 250 0 100 0

36 Wind Farms 928 285 260 233 150 0

37 Dhuvaran oil 220 0 0 220 0 0

38 Tarini 5.6 0 0 5.6 0

Total 11705.6 3923 3227 3002.6 1545 8

Note : Capacity Allocation has been taken as per GUVNL Letter No.GUVNL:CFM(Com.):1817 Dated 16/09/2010

Petitioner

True-up for 2009-10





8.14 Annexure 14 – Revised Capital Expenditure Plan of SLDC


Name of the Transmission System : Gujarat Energy Transmission Corporation Limited


(Rs. in Lacs)

Sl . No. Particulars (Rs. In Lacs)

Estimated Projected

2011-12 2012-13 2013-14 2014-15 2015-16

1 land Acquisition Cost 20 20 0 0 0

2 Augmentation/Upgradation of Existing System 192 145 90 75 75

3 Strengthening of Communication Channels 55 50 35 30 30

4 Additional System / Software Planning 43 40 20 20 20

5 IT Infrastructure 50 20 10 10 10

6 SLDC Building Development 50 120 80 30 10

7 Office Equipment 75 50 14 11 11

8 Staff Recreation Facilities 10 15 15 5 5

9 Additional Expenditure 2 2

Total Capital Expenditure 495 460 264 183 163

Petitioner

True-up for 2009-10





8.15 Annexure 15 : Income from SLDC Fees & Charges in the FY 2009-10




Sr. No.

Name of User SLDC Fees SLDC Charges

FY 2009-10 Jan.10 Feb.10 10-Mar Total Charges

1 Gujarat State Electricity Corp., Vadodara 1434400.00 2816640.00 2816640.00 2816640.00 8449920.00

2 Gujarat Industries Power Company Ltd. , Petrochemical Vadodara 39875.00 78300.00 78300.00 78300.00 234900.00

3 Gujarat Industries Power Company Ltd. , Petrochemical Vadodara 45375.00 89100.00 89100.00 89100.00 267300.00

4 Gujarat Industries Power Company Ltd. ,Surat Lignite Power Plant, Nani Naroli, Surat 103125.00 202500.00 202500.00 202500.00 607500.00

5 Gujarat State Energy Generation Ltd. Gandhinagar 42900.00 84240.00 84240.00 84240.00 252720.00

6 Gujarat Paguthan Energy Corp. Ltd., Ahmedabad 180125.00 353700.00 353700.00 353700.00 1061100.00

7 ESSAR Power Limited, Mumbai 141625.00 278100.00 278100.00 278100.00 834300.00

8 Gujarat Mineral Development Corp. , Vastrapura 68750.00 135000.00 135000.00 135000.00 405000.00

9 Torrent Power Ltd., Ahemdabad 315563.00 619650.00 619650.00 619650.00 1858950.00

10 Torrent Power Ltd., Ahemdabad 137500.00 270000.00 270000.00 270000.00 810000.00

11 The Gujarat Energy Development Agency, Gandhinagar 218807.00 429656.00 431681.40 431681.00 1293018.40

12 Dakshin Gujarat Vij Comp. Ltd. , Surat 549338.00 1078700.00 1079170.00 1079170.00 3237040.00

13 Madhya Gujarat Vij Comp. Ltd. , Vadodara 468233.00 919439.00 919726.00 919726.00 2758891.00

14 Uttar Gujarat Vij Comp. Ltd. , Mehsana 679592.00 1334471.00 1335067.00 1335067.00 4004605.00

15 Paschim Gujarat Vij Comp. Ltd. , Rajkot 887469.00 1742666.00 1743338.00 1743338.00 5229342.00

16 Gujarat Urja Vikas Nigam Ltd., Vadodara 0.00 0.00 0.00

17 Union Territory of Diu & Daman, Daman 0.00 0.00

18 Kandla Port Trust Gandhidham 2200.00 4320.00 4320.00 4320.00 12960.00

19 Union Territory of Dadra Nagar Haveli, Silvassa 0.00 0.00

20 Torrent Power Ahemdabad Electricity Com. Ltd., Ahedabad 0.00 0.00 0.00

21 Torrent Power Surat Electricity Com. Ltd., Surat 157781.00 309825.00 309825.00 309825.00 929475.00

22 Gujarat State Fertilizer & Chemical, Kosamba 1375.00 2700.00 2700.00 2700.00 8100.00

23 Gujarat State Fertilizer & Chemical, GSFC Polymer, Vadodara 550.00 1080.00 1080.00 1080.00 3240.00

24 Gujarat State Fertilizer & Chemical, GSFC Sikka 1375.00 2700.00 2700.00 2700.00 8100.00

25 Gujarat State Fertilizer & Chemical, Fertilizer-Vadodara 12925.00 25380.00 25380.00 25380.00 76140.00

26 Gas Authority of India Ltd., New Delhi 550.00 1080.00 1080.00 1080.00 3240.00

27 Gujarat Alkalies Corp. Ltd. , Petrochemical-Vadodara 11275.00 22140.00 22140.00 22140.00 66420.00

28 Oil & Natural Gas Corp. Ltd.,Hazira (Both sending & Receiving = 14 x 2) 7700.00 15120.00 15120.00 15120.00 45360.00

29 Oil & Natural Gas Corp. Ltd.,Ankleshwar, (Both sending & Receiving = 14 x 2) 8800.00 17280.00 13738.00 13738.00 44756.00

30 United Phosphorus Ltd., Jhagadiya, (Both sending & Receiving = 14 x 2) 6050.00 11880.00 11880.00 13335.00 37095.00

31 Gujarat Alkalies Corp. Ltd., Dahej Comples-Bharuch, (Both sending & Receiving = 14 x 2) 6600.00 12960.00 12960.00 12960.00 38880.00

32 ESSAR Steel Limited, Hazira - Surat, (Both sending & Receiving = 14 x 2) 353925.00 694980.00 694980.00 694980.00 2084940.00

True-up for 2009-10





33 Department Of Atomic Energy, Mumbai, (Both sending & Receiving = 14 x 2) 9900.00 19440.00 19440.00 19440.00 58320.00

34 Sal Steel Limited, Bharpara-Gandhidham, (Both sending & Receiving = 14 x 2) 7700.00 15120.00 14580.00 14580.00 44280.00

35 The Gujarat Energy Development Agency, Gandhinagar, (Both sending & Receiving = 14 x 2) 437729.00 859540.00 863212.00 863860.00 2586612.00

Total 6339112.00 12447707.00 12451347.40 12453450.00 37352504.40

Total Income from SLDC Fees & Charges 43691616.40

SLDC (GETCL)

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