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2 पत स च / Address List म ख य भचभयत व चज य), एप प स स, ह दर ब द Chief Engineer (Comml.), APPCC, Hyderabad. भपर चनद शक वपररय जन ),प स क ल, क र भ न, ब गल र Additional Director (Proj.), PCKL, Kaveri Bhavan, Bengaluru. ल ख चनयतत रक, एसएलड स -ट ब स -क प ट स एल, ब गल र Controller of Accounts, SLDC- TBC, KPTCL, Bangalore. भध क षक भचभयत, एसएलड स, क प ट स एल, ब गल र Superintending Engineer, SLDC, KPTCL, Bengaluru. उप मह प रबतधक वच त त), क प स एल, ब गल र Dy. GM (Finance), KPCL, Bengaluru. क यक र भचभयत वएलड ) एसएलड स, क एसईब, कलमस र Executive Engineer (LD), SLDC, KSEB, Kalamassery. भध क षक भचभयत वएलड ज ओ) ट नट र न क, न न Superintending Engineer (LD & GO), TANTRANSCO, Chennai. क यक र भचभयत वच ड), ट नट र न क, न न Executive Engineer (Grid), TANTRANSCO, Chennai. म ख य भचभयत वचनय मक स ल), ट नज डक, 7 तल, पच म व ग, 144 भन न स ल, न नई Chief Engineer (Regulatory Cell), TANGEDCO, 7 th Floor, Western Wing, 144 Anna Salai, Chennai म ख य भचभयत व चज य), ट एसप स स, ह दर ब द Chief Engineer (Comml.), TSPCC, Hyderabad Sri A.G. Satish Kumar, Chief General Manager (O&M), TSSPDCL, Corporate office, Mint 11. Compound, Hyderabad क यक र भचभयत / एसस स, च द य त च भ ग, प द र Executive Engineer / S.C.C., Electricity Department, Puducherry. म ह प रबतधक व चज य), स स, एनट प स, क प क त ल क स, नई ददल ल General Manager (Comml.), CC, NTPC, SCOPE Complex, New Delhi. म ह प रबतधक व चज य), एसआर - ए क य, एनट प स, चसकत दर ब द General Manager (Comml.), SR-HQ, NTPC, Secunderabad म ह प रबतधक व चज य), चनगम म ख य लय, एनएलस, न ल General Manager (Comml.), Corporate Office, NLC, Neyveli. क द र चनद शक, एमएप एस, कल पक कम Station Director, MAPS, Kalpakkam. 17. क द र चनद शक, क ज एस, क ग

3 Station Director, KGS, Kaiga. क द र चनद शक, क क एनप प, क डतक लम Station Director, KKNPP, Kudanakulam सह.मह प रबतधक व चज य), एनट ईस एल, ल ल र एसट प एस AGM (Comml.), NTECL, Vallur STPS. उप मह प रबतधक, एनट प एल, त त क ड Dy. GM, NTPL, Tuticorin ररष ठ उप ध यक ष(व य प र च क स), य प स एल, ब गल र Sr. VP (Business Development), UPCL, Lotus Tower,No.34, Devaraja Urs Road, Race Course, Bengaluru,Fax No: सह मह प रबतधक, ज एसडब ल य एल, नई ददल ल Assistant General Manager, JSWEL, New Delhi. उप मह प रबतधक, ज एसडब ल य एल, ब गल र Deputy General Manager, JSWEL, Bengaluru. ब ज र प र लन प रम ख, एसआरएलड स, प स क, ब गल र Head of Market Operations, SRLDC, POSOCO, Bengaluru च त त प रम ख, एसआरएलड स, प स क, ब गल र Head of Finance, SRLDC, POSOCO, Bengaluru मह प रबतधक व चज य), दक ष -, प रच ड, चसकत दर ब द GM (Comml.), SRTS-I, PGCIL, Secunderabad सह. मह प रबतधक व चज य), दक ष -, प रच ड, ब गल र AGM (Comml.), SRTS-II, PGCIL, Bengaluru 28. श र आसन म हम मद, Coastal Energen प र इ ट चलचमट ड, न न Mr. Asan Mohammed,Coastal Energen Pvt. Ltd, Chennai 29. ररष ठक यप लक व चज य), ट प स ल, ह दर ब द , भ रत, फ़ क स: व91) Sr. Executive (Commercial), TPCIL, Hyderabad , India, Fax: (91) ज एम- प र स ल, ए ल & फ स तचमल न ड प र कत पन चलचमट ड, न नई GM- Power Sale, IL&FS Tamil Nadu Power Company Limited, 4 th floor, KPR Power, Old No.21, New No.2, 1 st Street, Subba Rao Avenue College Road, Chennai उप ध यक ष व चज य), चहनद ज न शनल प र क प र शन चलचमट ड, म तबई Vice President (Commercial), Hinduja National Power Corporation Limited (HNPCL), Hinduja House, 171, Dr. Annie Besant Road, Worli, Mumbai Fax No चमत तल प र स सर प र इ ट चलचमट ड, 1002, 1004, Antriksh भ न, 22 क ज म गय, नई ददल ल M/s. Mittal Processors Pvt. Ltd., 1002, 1004, Antriksh Bhawan, 22 KG Marg, New Delhi क यक र चनद शक(प र लन), लतक वएलक प एल), ह दर ब द ED (Operations), LANCO (LKPL),LANCO House, Plot No.4, Software Unit Layout,

4 HITEC City, Madhapur, Hyderabad , Fax: Associate उप ध यक ष,भद न एनत रप स स चलचमट ड, भहमद ब द Associate Vice President, Adani Enterprises Ltd, Ahmedabad चनद शक, ज एम प रभ ग, क च प र, नई ददल ल Director, GM Division, CEA, New Delhi. चनद शक, एनप स च भ ग, उक ष च स भ न, कट चडय सर य, नई ददल ल - 16 Director, NPC Division, 3 rd floor, NRPC Building, Katwaria Sarai, New Delhi-16.

5 Minutes of the 39 th Meeting of Commercial Subcommittee of SRPC 1. INTRODUCTION CONFIRMATION OF THE MINUTES OF THE 38TH MEETING OF COMMERCIAL SUB- COMMITTEE MEETING AUDIT OF SR DEVIATION & REACTIVE ENERGY CHARGE POOL ACCOUNTS ITEMS PROPOSED BY SRLDC METHODOLOGY TO SHARE TRANSMISSION CHARGES OF ISTS ASSETS CREATED FOR EVACUATING POWER FROM SOLAR/RENEWABLE GENERATORS AP AGENDA POINTS CERTIFICATION OF NON-ISTS TRANSMISSION LINES FOR THE APPLICATION PERIOD ADOPTION OF UNIFORM PROCEDURE TO PREPARE MERIT ORDER DESPATCH LIST SHARING OF GAINS ON ACCOUNT OF CONTROLLABLE PARAMETERS TRANSMISSION CHARGES PERTAINING TO KUDGI STPS KKNPP AGENDA POINTS SETTLING OF WHEELING CHARGES PAID MUTUALLY WITH EFFECT FROM JULY NNTPP SCHEDULING BY SRLDC STOA OFFSET AP-TS INTERSTATE FLOW STATISTICS ON REPLACEMENT OF FAULTY ENERGY METERS METERING SCHEME FOR WIND GENERATORS REARRANGEMENT OF UNIT 4 POWER EVACUATION FOR NEYVELI TPS-II STATION SCHEDULING OF ANANTHAPURAMU (NP KUNTA) ULTRA MEGA SOLAR PARK BY SRLDC PXSOLD QUANTUM DATA FOR THE PERIOD TO PCKL AGENDA POINTS NTECL VALLUR AGENDA POINTS PENDING RECOMMENDATIONS OF THE 3RD MEETING OF NODAL OFFICERS NODAL OFFICERS FOR SEM DATA COORDINATION OUTSTANDING DUES BETWEEN SOUTHERN & WESTERN REGIONAL CONSTITUENTS AGENDA POINTS OF TANGEDCO DELIBERATED IN THE 36TH TO 38TH CCM: KSEBL AGENDA POINTS STARTUP POWER FOR TELANGANA STPP- PHASE- I 2*800 MW COMMERCIAL OPERATION DECLARATION OF ISTS ELEMENTS & ISGS (CGS) DURING THE FINANCIAL YEAR DATE AND VENUE OF 40TH MEETING OF CC... 31

6 SOUTHERN REGIONAL POWER COMMITTEE BENGALURU MINUTES OF THE 39 TH MEETING OF COMMERCIAL SUB COMMITTEE OF SRPC HELD IN TUTICORIN ON 29 TH OCTOBER INTRODUCTION 1.1. The 39 th Meeting of Commercial Sub-Committee of SRPC was held on 29 th October 2018 at Tuticorin. The list of participants is enclosed at ANNEXURE Shri Shaji John, CEO, NTPL welcomed all the participants to the meeting. He thanked SRPC for giving the opportunity to host the meeting. He stated that in the situation of coal shortage, high renewable integration, low schedules & low PLF, running a viable business in generation is a challenge. He hoped that the deliberations would bring out win-win solution for all and wished all the best for the success of the meeting NTPL made a brief presentation about unique features, performance highlights and various activities Shri A. Ganesan, Executive Director (Commercial), NLCIL welcomed all the participants to the meeting and stated that NLCIL has grown with the support of all beneficiaries. He briefed about the Corporate Plan to enhance the generation portfolio, including generation through renewable resources, of the company to enable supply more power to all beneficiaries and to align with new environment. He emphasized that the performance of generator depends on the schedule given by beneficiaries Shri S.R Bhat, Member Secretary (MS), SRPC welcomed all Members and participants to the Meeting. He congratulated and thanked the NTPL team for making excellent arrangements for the Meeting. MS informed the participants about the meeting with CERC staff on RSD and Compensation mechanism scheduled on 1 st November, 2018 and exuded confidence that the representation from SR would help in highlighting the issues and hoped that issue would be sorted satisfactorily. The agenda items were taken up for discussion. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 1/31

7 2. CONFIRMATION OF THE MINUTES OF THE 38 TH MEETING OF COMMERCIAL SUB-COMMITTEE MEETING. Minutes of the 38 th Meeting of the Commercial Sub-Committee of SRPC held in Hyderabad on 29 th June 2018 were issued vide letter No. SRPC/SE-I/38CC/2018 dated 20 th July, No comments / requests for correction were received. The Minutes of the 38 th Commercial Sub-Committee Meeting were confirmed. 3. AUDIT OF SR DEVIATION & REACTIVE ENERGY CHARGE POOL ACCOUNTS In line with Para 15 of Annexure-I to the CERC (IEGC) Regulations, 2010 (Complementary Commercial Mechanism), RLDC shall table the complete statement of the Regional UI account and the Regional Reactive Energy pool account in the RPC s Commercial Committee Meeting on a quarterly basis, for audit by the latter. SRLDC vide letter SRLDC/MO/CCM dated (ANNEXURE 2) had furnished details of payment and disbursement of weekly Deviation and Reactive Energy charges for the period from to The accounts were audited and approved. 4. ITEMS PROPOSED BY SRLDC SRLDC vide letter dated (refer ANNEXURE 2) had proposed the following items for discussion: (i). Audit of SR DSM, RRAS & Reactive Energy accounts (ii). Reconciliation of DSM, RRAS, Reactive and Congestion charges (iii). Status of outstanding charges to the pool accounts. (iv). Reconciliation of Short Term Open Access (STOA) disbursements Deliberations in the CCM& update: Audit of SR DSM, RRAS& Reactive energy Accounts Weekly Regional Deviation, Reactive Energy Charges Pool Accounts, RRAS Accounts for the period from 14 th May 18 to 9 th September 18, furnished by SRLDC vide letter dated , were audited. (Item No. 3 above). Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 2/31

8 Reconciliation of DSM, RRAS, Reactive and Congestion charges SRLDC informed that Regional Entity-wise details of Deviation, RRAS, Reactive and Congestion pool payment/receipt had been sent to the pool members on a monthly basis for the period from May 18 to Aug 18 for reconciliation. Status of Receipt of signed reconciliation statement is enclosed in Annexure IV. All other pool members who are yet to reconcile were once again requested to verify the statements compulsorily and send a signed copy to SRLDC for their records enabling them to comply with audit observations. 4.2 Status of outstanding charges to the pool accounts SRLDC informed the status of outstanding payments to DSM pool account and interest payable due to delayed payments. Outstanding payments to DSM pool account as on : Sl. No. Constituent Interest payable (Rs.) Statement issue date. 1 KKNPP /07/ MEL /08/ MEL /08/ MEL PH /08/ MEL 49 07/08/ MEL PH /08/ COASTAL ENERGEN /09/ MEL PH /09/ COASTAL ENERGEN /09/ COASTAL ENERGEN /09/ COASTAL ENERGEN /09/ MEL 85 07/09/ COASTAL ENERGEN /09/ MEL PH /09/ MEL PH /09/ PONDY /09/ COASTAL ENERGEN /09/ MEL PH /09/ PONDY /09/ COASTAL ENERGEN /09/ MEL PH /09/ SRLDC informed the sub-committee that Coastal Energen and Puducherry had paid the outstanding amounts. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 3/31

9 Sl. No The outstanding interest shall be recovered from the weekly payments being received and treat the short fall as default in payment. This may necessitate opening of LC and other complications. Therefore, the outstanding amounts may please be paid immediately. Outstanding payments to Deviation pool account as on as interest payable due to delayed weekly charges: Beneficiary Wk. No. Period SRPC account issue date Amount (Rs.) 1 MEL (bal) to /05/ MEL (bal) to /06/ MEL (bal) to /06/ MEL (bal) to /06/ MEL (bal) to /06/ MEL (bal) to /07/ MEL (bal) to /07/ MEL (bal) to /07/ MEL (bal) to /07/ MEL to /07/ MEL to /08/ MEL to /08/ MEL to /08/ MEL to /08/ MEL to /09/ MEL to /09/ MEL to /09/ KKNPP raised the issue of waiving off the interest amount It was clarified by SRPC/SRLDC that the matter had already been discussed and decided in the earlier CCM that the amount cannot be waived off and needs to be paid by KKNPP KKNPP representative was requested to apprise the management about the regulation and expedite the payment KKNPP agreed to the same As regards the stay order concerning Regulation of Power and encashment of Bank Guarantee in respect of MEPL, CTU informed that the Hon ble Supreme Court had directed CERC, (who had reserved the orders in the petitions filed before it on Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 4/31

10 ), to decide the matters within a period of four weeks from and the CERC order is awaited. 4.3 Reconciliation of Short Term Open Access (STOA) disbursements SRLDC informed the details of disbursements of CTU, STU & SLDC charges of STOA for the period from May 18 to Aug 18 (enclosed in Annexure-V). The same had already been uploaded in SRLDC website on a monthly basis for verification and reconciliation to all the concerned SLDCs/STUs/CTU and others on a monthly basis. The statements for monthly reconciliation are available in SRLDC website in the link Disbursements made for which no discrepancy was pointed out were treated as reconciled. However, members were to note that it is compulsory to return the signed copies of the statements as record for statutory audits. 5. METHODOLOGY TO SHARE TRANSMISSION CHARGES OF ISTS ASSETS CREATED FOR EVACUATING POWER FROM SOLAR/RENEWABLE GENERATORS. Chief Engineer (Comml), APPCC, vide dated , requested that the matter regarding waiver of transmission charges in respect of solar generators may be discussed in the CCM and requested to finalise a methodology to share such Transmission charges of ISTS assets created for evacuating power from Solar/Renewable generators among other entities. APPCC had also furnished their views on the mattes as below: The view of AP on waiver of solar schemes is to segregate the solar schemes fixed charges of PGCIL's which were commissioned from onwards and uniformly loaded to all DISCOMs across the country. Deliberations in the CCM& update: 5.1 APPCC stated that presently the waived off transmission charges (for NP Kunta) are loaded on to AP and requested that the same be apportioned to all beneficiaries across the country. APPCC also requested that all information of segregation of projects eligible and ineligible for waive off the charges may be clearly made available. 5.2 APPCC stated that a number of solar plants would come up in near future and this issue needs to be addressed. 5.3 TANGEDCO stated that beneficiaries must be informed about the COD, LTA operationalization and how the charges are billed in a transparent manner. 5.4 CTU/PGCIL stated that they furnish YTC of all elements to implementing agency (NLDC), who in turn calculate POC slab which is further approved by CERC. As regards the information of transmission elements, CTU stated that all details are Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 5/31

11 submitted to CERC along with tariff petition and during hearing, all beneficiaries could respond. Regarding operationalization of LTA, CTU stated that the information is available on NLDC website. However, henceforth it would be uploaded on CTU website and also a copy of the letter operationalizing LTA would be marked to RPCs. CTU informed that the system studies carried out for high capacity, specific, corridors where more number of elements were commissioned, were based on the requests put forth by the DISCOMs. Part LTA is purely based on the commissioning of elements and the quantum which can be evacuated and beneficiaries/generators may be consulted. Certificate from SPDs /Wind Developers are being collected to ensure that they eligible for the transmission charges waiver. Further these LTA were not being used to compute PoC charges. 5.5 Implementing Agency (NLDC) had furnished their input vide mail (enclosed at ANNEXURE-3) wherein it was informed, This is basically a policy and is being implemented by CERC. The methodology to share the transmission charges for the system set up for RE is to be decided by CERC. 5.6 SRPC secretariat pointed out that LTA/part LTA operationalization needs to be carried out proactively (referring to prompts to CTU in this regard). The Orders/ROPs were referred in this regard in respect of Petition Nos 229/RC/2015, 30/MP/2014, 103/MP/2017, 12/SM/2017 etc. Further transmission charges are computed based on the converged base case and cost allocation as per the approved methodology. PoC charges are arrived by dividing the same by the approved LTA/MTOA. Therefore from reply of CTU/NLDC it was not clear how the charges were waived off. 5.7 MS, SRPC highlighted that the system studies would need to be carried out to operationalize part LTA. Triggering from beneficiaries/dics was not required in such cases and same had been affirmed in the 1 st meeting of Southern Region Standing Committee on Transmission (SRSCT). 5.8 Discrepancy noticed in the LTA quantum granted in respect of NNTPP was brought to the notice of CTU and CTU agreed to check it. 5.9 Member Secretary, SRPC stated that the issue of sharing of transmission charges of ISTS assets created for evacuating power from solar/renewable generators needed clarity to ensure that waiver is adequately captured in PoC computations and Chairperson, SRPC could be requested to take up these concerns with CMD, POSOCO The forum observed that if the waived off transmission charges need to be socialized (in line with Reliability Charges/HVDC charges) the same need to be separated and accounted separately CTU/PGCIL stated that NP Kunta part LTA of 250 MW was operationalized from July 2017 and further operationalization was done progressively. One month billing Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 6/31

12 was bilaterally done with generator in line with CERC order. LTA of 1500 MW was operationalized at NP Kunta w.e.f (Letter dated at ANNEXURE 4a)- [LTA of Ph-I (250 MW) was made effective from Part LTA of 750 MW of Ph-II & Ph-III was made effective w.e.f Balance LTA of 500 MW of Ph-II & Ph-III of the project was effective w.e.f ] and for 2000 MW at Pavagada w.e.f (Letter dated at ANNEXURE 4b)- [Part LTA of 600 MW of Phase-I to Karnataka DISCOMS on firm basis was made effective w.e.f Balance LTA of 400 MW of Phase-I was made effective w.e.f ]. It was decided to request Chairperson, SRPC to take up the concern of SR entities with CMD, POSOCO to approach CERC for appropriate direction/clarity on the issue. Also emphasized that CTU need to carry out system studies for part LTA operationalization. 6. AP AGENDA POINTS Andhra Pradesh vide, dated , had furnished following agenda points (ANNEXURE 5): 1. Treatment of Annual Transmission Charges (ATC) associated with Stranded Generators. AP stated that certain Generating Stations in the Northern & Southern Coast of AP (East Coast, NCC, Coastal Andhra & Othrs), who have obtained Long Term Access (LTA) approval, stalled construction of the plants due to several reasons. The approved Associated Transmission Systems (ATS) of these generating plants are in advanced stage of development or even most of the elements got commissioned and declared commercially operational. (Ex.765kVAngul-Srikakulam). Further, AP mentioned that the Annual Transmission Charges (ATC) of these network elements originally meant for evacuation & downstream flow of power from the above Generating Stations, are included in the POC mechanism and loaded on to the beneficiaries. In view of the fact that certain generating stations are stranded, the ATS of those stations are getting lightly loaded. This would only affect the POC rates of drawal nodes (as ratio of sharing by the generator would depend on actual injection rather than LTA sought), especially those adjacent to such generating stations, since it is very likely that the under rated flows in these lines are going to be drawn by the adjacent/nearest/immediate drawal Substations of the State Transmission Utility (STU) or DICs. This boosts the withdrawal POC charges in those States. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 7/31

13 AP stated that M/s. PGCIL is supposed to recover these ATC from the stranded generators, contrary to this M/s. PGCIL is presently including all these Charges into the POC computations, burdening the beneficiaries. AP requested M/s. PGCIL to make a detailed presentation on the list of Generators to whom LTA has been granted, time lines of scheduled commercial operation, Generators who got stranded, status of Commercial operation of ATS, measures taken / penalties levied on the Stranded generators as per the Regulations, status of recoveries etc. in the region, for the understanding of the beneficiaries. Deliberations in the CCM& update: It was noted that the issues of transmission assets created for stranded/abandoned projects had already been taken up with CERC APPCC stated that many assets are operated at suboptimal level, but entire assets charges are loaded to beneficiaries To a query regarding passing the relinquishment charges/liquidated damages received by CTU/transmission licensees to beneficiaries, CTU stated that same was the practice In this regard, CTU also stated that they are awaiting the specific CERC directives in this regard. 2. Treatment of waive off Transmission Charges of ATS in respect of Ultra Mega Solar Projects & recovery of Transmission Charges from entities procuring RE power & not qualified for waiver of transmission charges. (similar as at agenda item Sl No. 5) AP requested NLDC (implementing Agency) to clearly bring out the waiver component of transmission charges separately in the POC computations. Further, M/s PGCIL & NLDC were requested to arrange List of RE Generators qualified for obtaining waiver of Transmission charges as per the prevailing Regulations, in the Southern region. List of RE generators that are going to be commissioned till 31 st March Provide the methodology on how the Yearly Transmission Charges (YTC) of the Assets built for evacuating power from RE Generators qualified for waiver of Transmission Charges, is being recovered. Provide the details of waiver component pertaining to RE Generators taken up in the quarterly POC calculations separately in similar lines of Reliability Support Charges & HVDC charges shown in monthly RTAs. Deliberations in the CCM& update: As deliberated at item No. 5 above. Implementing Agency (NLDC) had furnished their input vide mail (refer ANNEXURE-3) wherein it was informed that, The data of RE generators Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 8/31

14 exempted from ISTS charges and losses would be summarized in PoC data to the extent available. 3. More payments (higher POC rate) by AP for Sembcorp Gayatri Power. AP stated that charges for withdrawal of power from Sembcorp Gayatri Power at a POC rate of Rs 3.75 Lakh/MW/Month are being paid at present. Whereas it is observed that, the same Generator has been paying an injection charges of Rs 1.92 Lakh/MW/Month for the portion of power tied up, to the extent of 120 MW, in WR and also untied power of Sembcorp Green Power Plant, which is located in Krishnapatnam Even though the Generator is located in AP (Krishnapatnam), just near the Load Centre of Nellore/Chitoor area, AP is paying at a higher POC rate (Rs 3.75/MW/Month) when compared to a distantly located entity in WR, who is paying only Rs.1.92 Lakh/MW/Month. AP requested that the reasons for such huge variation or distortion may be discussed in the meeting. Deliberations in the CCM& update: SRPC informed the subcommittee that the POC slab for withdrawal in respect of a state is determined based on all nodes within the geographical boundary of the beneficiary state. Whereas in case of a generator the Injection rates are determined based on the nodes (Substations) through which it injects power Implementing Agency (NLDC) had furnished their input vide mail (refer ANNEXURE 3) wherein it was informed, The methodology regarding the calculation of PoC rate in case of generators having LTA to target region is explained in detail with examples in Statement of Reasons (SoR) to 3 rd amendment to Sharing Regulations. In the past, similar issues were raised by other stakeholders too. CERC while notifying the 3 rd amendment to Sharing Regulations had clarified the matter in detail and same is also mentioned in SoR to 3 rd amendment to Sharing Regulations (para to 33.30). 7. CERTIFICATION OF NON-ISTS TRANSMISSION LINES FOR THE APPLICATION PERIOD CERC Third Amendment of Sharing of inter-state Transmission Charges and Losses Regulations 2015, Clause of Annexure I stipulates as below: Certification of non-ists lines carrying inter-state power, which were not approved by the RPCs on the date of notification of the Central Electricity Regulatory Commission (Sharing of Transmission Charges and Losses) Regulations, 2009, shall be done on the basis of load flow studies. For this purpose, STU shall put up proposal to the respective RPC Secretariat for approval. RPC Secretariat, in consultation with RLDC, using WebNet Software would examine the proposal. The results of the load flow studies and Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 9/31

15 participation factor indicating flow of Inter State power on these lines shall be used to compute the percentage of usage of these lines as inter State transmission. The software in the considered scenario will give percentage of usage of these lines by home State and other than home State. For testing the usage, tariff of similar ISTS line may be used. The tariff of the line will also be allocated by software to the home State and other than home State. Based on percentage usage of ISTS in base case, RPC will approve whether the particular State line is being used as ISTS or not..... In compliance with the regulations, 62 non ISTS lines were certified, in consultation with SRLDC, as lines carrying inter-state power. The data used for the study is taken from Quarter-1 to Quarter-4 of , which was considered for POC computation as discussed in 33 rd Meeting of Commercial Sub Committee held on 31 st January 2017 and approved in 31 st SRPC Meeting held on SRPC, vide letter dated , had circulated the same to all SR Constituents. It had been agreed in the 33 rd TCC/34 th SRPC meetings that the issue of review of the criteria of non-ists lines carrying inter-state power of more than 50% of total power transmitted considered for certification would be discussed further in a separate meeting Deliberations in the CCM& update: 7.1 Member Secretary, SRPC informed the committee that a separate meeting to discuss the issue would be convened. 7.2 He also stated that reportedly all other regions were also considering the criteria of more than 50% of total power transmitted. A Separate meeting would be convened to review the limit. 8. ADOPTION OF UNIFORM PROCEDURE TO PREPARE MERIT ORDER DESPATCH LIST The matter of adoption of uniform procedure to prepare Merit Order Despatch List was discussed during 38 th Commercial Committee Meeting, wherein it was requested to all Constituents to share their views regarding this. The issue was further discussed during 33 rd TCC and 34 th SRPC meetings, and it was decided that the issue would be deliberated in a separate meeting. Accordingly, SRPC, vide letter dated (ANNEXURE-6), requested all beneficiaries and regional entities to furnish comments/ suggestions/ factors to be considered in finalizing a uniform procedure for preparing Merit Order Despatch list, along with the methodology being followed at present. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 10/31

16 In this regard, it was requested to share the details of various factors that determine the Variable Charges of all Regional and State Generators (A sample calculation sheet was also requested for reference). Additionally, it was requested to describe how the Merit Order Despatch stack is being prepared. Comments on impact of issues such as ISTS loss, incentive, compensation, URS, billed MOD, ERC approved MOD, EC computation for state vs central generators, flexibility in LTA/MTOA, MOD on D-3 (non-availing of STOA) etc. on MOD list preparation may be communicated. Deliberations in the CCM& update: 8.1 SE, SRPC explained the objective of the subject matter. 8.2 KSEBL had furnished their views as below: For surrender of Power o Various sources of power to meet the demand are arranged as per (VC+ incentive), i.e., from highest to lowest. For URS power - currently only CGS station o The CGS stations are arranged as per Total cost = (FC +VC + Incentive), i.e., from lowest to highest. For hydro station for monsoon season o For run off the river station Must run quantum is to be scheduled. o Hence rate of hydro station taken as the lowest rate. o After that any excess power to be surrendered as per MOD. Rest of the year o The Hydro power is scheduled as per Generation Plan. Any excess of Generation plan is taken at rate equivalent to the power to be purchased in summer or VC of thermal station to be scheduled in summer. o Any reduction in demand is done by reducing generation in Idukki and Sabarigiri before CGS surrender. o Similarly any rise in Demand is met by availing cheaper URS power before increase in generation planned for the day from Idukki/Sabarigiri. 8.3 Tamil Nadu stated that they need some more time to furnish views as the same was being studied. 8.4 Telangana agreed to share the views. 8.5 Member Secretary, SRPC stated that all generators, including intrastate generators, need to be considered to arrive at proper MOD. This matter was taken up only to facilitate the beneficiaries to have a better MOD and requested all beneficiaries to share views. All SR Constituents except KSEB, Vallur, and NLC were requested to share the details to prepare a draft uniform procedure to frame MOD. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 11/31

17 9. SHARING OF GAINS ON ACCOUNT OF CONTROLLABLE PARAMETERS In the 38 th CCM, NTPC suggested that they would share the gains on monthly basis as proposed, provided the beneficiaries share it on cumulative basis, i.e., the gains would be computed on cumulative basis up to the month and refund, if any, due to cumulative computation to be processed by beneficiaries. Beneficiaries stated that they would appraise the matter to the higher authorities and report to the CCM accordingly. Subsequently, SRPC vide letter dated 2 nd July, 2018 (ANNEXURE-7) had requested all States to share their opinion/concurrence on the suggestion put forth by NTPC. Deliberations in the CCM& update: 9.1 PCKL stated that gains need to be shared on monthly basis with annual reconciliation, as per the Regulation. 9.2 KSEBL stated that the management decision was that the NTPC proposal could not be agreed to; Regulations clearly states that gains are to be shared on monthly basis. Regulations do not envisage cumulative computation and in such case annual reconciliation would lose its meaning. 9.3 NLC stated that the computation wise both NTPC and NLC are same but differ in reconciliation. 9.4 NTPC stated that as pointed out earlier the computations were in line with the provisions of Regulations. 9.5 It was noted that when the draft Tariff Regulations for the year gets framed and circulated among the Constituents, beneficiaries can seek more clarification on Clause 8(6) of the regulations. 10. TRANSMISSION CHARGES PERTAINING TO KUDGI STPS The issue was discussed in the 38 th CCM. CTU, then, stated that they have examined the matter and that the following details were sought from NTPC: a. How the LTA quantum of MW has been arrived at when LTA was sought against the installed capacity of 2400 MW? b. Computation of revised LTA quantum. NTPC informed the subcommittee that the details were communicated earlier through dated However, the details as sought now would be shared formally. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 12/31

18 Subsequent to the clarification by NTPC, CTU, vide letter dated (ANNEXURE-8), stated that NTPC is required to relinquish LTA quantum of MW. SRPC Secretariat, vide letter dated (ANNEXURE-9), brought to the fore that throughout the process the overload capacity was not to be considered for LTA, which was the base for approved injection and on which sharing of transmission charges was to be undertaken. Further, after the Amendments to Sharing Regulations and with further clarity in the SOR, the LTA quantum was required to be modified in line with the prevailing Regulations. Needless to mention that 105% and 101% DC were for different purposes like RGMO/inadvertent deviations etc. NTPC, vide letter dated (ANNEXURE-10), informed that the LTA application was made by NTPC on behalf of beneficiaries as per the provision in PPA. It has been stated that modification/s required, if any, pursuant to 2 nd Amendment to Sharing Regulations, 2010 should have been taken up by the beneficiaries at the time of signing of LTA agreements since they were well aware of LTA quantum granted to them for Kudgi Station. Hence, it was requested to take appropriate action by the respective beneficiaries. After the COD of Unit# 3 of Kudgi Station, i.e. from , MW of LTA quantum had been shared among the beneficiaries based on their respective allocation. Deliberations in the CCM& update: 10.1 In 34 th SRPC meeting held on , all beneficiaries had concluded that the additional quantum needs to be relinquished immediately to avoid future liabilities In this regard, CTU clarified that till the quantum is relinquished or some Order is received from CERC, full LTA quantum would continue to be billed SRPC had noted that NTPC was to approach CERC for clarification on the matter NTPC stated that the minutes of 34 th SRPC meeting was awaited to act on. NTPC was requested to approach CERC for clarification. 11. KKNPP AGENDA POINTS KKNPP vide, letter dated (ANNEXURE 11), had presented the following agenda points to be discussed during the meeting: 1. Non Payment of DPC bills by State Electricity Boards (SEB's). 2. Non Payment of Energy bills by SEBs. 3. Non Payment of bills for the energy supplied from Unit 2 by M/s. KSEBL 4. Non Submission of Letter of Credit by M/s. HESCOM, M/s. PEB, and TSPCC. It was agreed in the 33 rd TCC/34 th SRPC meeting that the injection beyond 1,000 MW from 21 st July 2018 to 2 nd August 2018 would be shown separately in the REA. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 13/31

19 Accordingly, the same was shown separately in REA for the month of July and August, Deliberations in the CCM & update: 11.1&2.1 KKNPP stated that overall amount of around Rs.174 crores were pending towards DPC. 11.1&2.2 TANGEDCO stated that energy bills up to June, 2018 were paid and the bill for the month of July 18 would be paid by &2.3 TANGEDCO informed that Director (Finance) had written to KKNPP seeking exemption of delayed payment charges and invited KKNPP for discussion in this regard. 11.1&2.4 PCKL informed the committee that a meeting with DISCOM and generators was convened to resolve the pending payment issue. Based on the decisions of the meeting, DISCOMs were releasing payment on monthly basis. 11.1&2.5 KKNPP and NLC stated that the payment that were being released by DISCOMs were not commensurate with the outstanding amounts. 11.1&2.6 PCKL stated that one more meeting of the DISCOMs with Additional Chief Secretary, Government of Karnataka would be arranged to resolve the issue. 11.1&2.7 TSPCC stated that the pending payment issue would be taken up with the management. 11.1&2.8 Puducherry assured that payment would be made by next week KKNPP stated that KSEBL did not pay the bill raised for the energy supplied from Unit-II KSEBL stated that they had taken a stand that as the synchronization of 2 nd unit in July, 2018 and injection beyond 1000 MW was against the directions & decisions of SRPC, SRLDC & requests of beneficiaries, the charges for injection beyond 1000 MW is disputed. There was high rainfall in Kerala, and hence the normal clause as per the PPA is not applicable to KSEBL regarding the payment. Hence the KKNPPs argument on the non-eligibility for rebate to KSEBL is not valid and has to be treated separately. It was also to be noted that discussion to revisit PPA is going on. Till a final decision is made in this regard, the bill may be kept as disputed. The matter may be escalated to the next higher level committee Member Secretary, SRPC reminded the defaulting beneficiaries about the directive from Ministry of Power to clear the outstanding dues to CGS.( especially more than 60 days) Regarding the resynchronization of KKNPP Unit-II, it was noted that the request to restrict injection to 1000 MW was made in the OCC much before synchronization of KKNPP Unit-II. The request was only to restrict the injection, under the then prevailing grid condition, and it was no way an interference in the unit wise operation However, KKNPP chose to synchronize Unit-II, but failed to restrict the injection as required by the OCC KKNPP stated that it was a planned shutdown and that all communications were given to SRLDC, SRPC and beneficiaries about the quantum before synchronisation Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 14/31

20 and permission was granted to synchronise. Once synchronised, injection cannot be changed on day to day basis due to fuel related difficulties SRPC stated that REA accurately incorporated the energy scheduled, in two parts Member Secretary, SRPC stated that the PPA between KKNPP and beneficiaries indicates that the guidelines issued by SRPC and SRLDC would be complied. It would be prudent to prepare and implement a guideline in this context. As discussed on meeting, Member Secretary, SRPC requested KKNPP to present the capability of flexible operation in the next OCC meeting TSPCC stated that there was no subsisting PPA with KKNPP and banker was insisting for PPA to issue LC. However, since the allocation was done by MoP, the issue would be resolved and LC would be submitted. Karnataka, Tamil Nadu, Telangana, AP and PED were requested to clear long pending payments as early as possible. KKNPP was requested to present the flexible operation capability in the next OCC meeting. 12. SETTLING OF WHEELING CHARGES PAID MUTUALLY WITH EFFECT FROM JULY The CERC Orders (in KPTCL- Petition No.225/TT/2013, KSEB- Petition No. 232/TT/2013 and TNEB- Petition No.212/TT/2013), mention that the YTC for the interstate lines had been taken in line with Sharing of Inter-State Transmission Charges and Losses Regulations, 2010 and the charges reimbursable had been calculated from The Wheeling charges indicated at 3(b) of the REA statements issued from the month of July, 2011 were provisional and issued as inputs from NLDC were pending. As these lines were to be covered under PoC Mechanism from , the Wheeling charges indicated at 3(b) of the REA statements issued from the month of July, 2011 ceased to have any commercial implications. Accordingly, item No. 3(b) was not included in REA statement from February Constituents were requested to mutually settle Wheeling Charge payment effected from July, 2011, vide SRPC letter dated The relevant extract from REAs with effect from July, 2011 in respect of wheeling charges was circulated. SPRC vide their letter dated (ANNEXURE 12) had circulated the provisional statement. The 38 th CCM requested all States to verify and confirm the figures in order to issue the mutual settlement from July, The issues regarding MAPS and KAPS wheeling charges were referred to SRPC meeting. In 33 rd TCC meeting held on , the following was discussed: It was noted from the 38 th Meeting of Commercial Sub-Committee that the transmission charges for natural inter-state lines would be covered under PoC mechanism from Most of the states had filed tariff petitions with Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 15/31

21 CERC in respect of natural inter-state lines. Wheeling charge computations in REA (as per erstwhile SREB decision) comprised of wheeling charge for usage of natural inter-state lines, wheeling charges for lines emanating from MAPS (completely embedded in STU) and wheeling charge for Sirsi- Guttur portion of 400 KV Kaiga-Guttur line. Thus, the wheeling charges reflected in the monthly REA were discontinued and constituents were advised to reconcile and settle the amounts already transacted. Further, in the 3 rd Amendment to Sharing regulations 2015, it has been stated that (vii) In case an ISGS is connected only to STU network and the shares of the beneficiaries of the said station are being delivered through the STU network, such a line of the STU network shall be considered as an ISTS for the purpose of these regulations. Thus, MAPS evacuation lines are to be considered as ISTS and to be treated accordingly. Further, in respect of Sirsi-Guttur line, the procedure approved in the 31 st SRPC Meeting, on certification of intrastate transmission lines, is adopted. KSEBL letter dated on the above issue is enclosed at ANNEXURE-13. KPTCL and TNEB had been requested to refund the charges. Deliberations in the CCM & update: KSEBL informed the committee that wheeling charges with interest amounting to Rs crores and Rs. 2,33 crores were paid to Karnataka and Tamil Nadu respectively from July 2011 and insisted refund of the amount with interest Member Secretary, SRPC stated that the total amount paid need to be refunded; the claim of interest on the amount paid may be examined later On a query regarding MAPS evacuation lines, SRPC Secretariat clarified that as per 3 rd amendment of Sharing Regulation, tariff of STU lines for ISGS connected only to STU can be recovered through POC and the loss can be pooled. STU can file petition with CERC, RPC certification is not required for the purpose. Member Secretary, SRPC advised STUs to take up the matter immediately, if not done yet Statement of Wheeling charges for the period from July, 2011 to issued was confirmed. Regarding MAPS evacuation Lines, Tamil Nadu was requested to approach CERC or SERC directly for the approval of tariff of applicable STU lines and thus get it incorporated in POC mechanism. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 16/31

22 13. NNTPP SCHEDULING BY SRLDC The Neyveli New Thermal Power Project (2x500 MW) is being implemented by NLCIL as replacement for the 600 MW NLC Thermal Power Station I. As far as the scheduling of the station is concerned, CERC order dated on petition no.20/mp/2017, which dealt a similar case may be followed. The relevant parts of the order are reproduced below:... Moreover, we do not find any operational expediency which necessitates scheduling of power from the generating station by Bihar SLDC. Since a number of stations apart from Bihar are scheduling power from MTPS-II which is a Central Generating Station, the control area jurisdiction should vest in the ERLDC. Accordingly, we direct the control area jurisdiction of MTPS-II shall be transferred to ERLDC with effect from In such cases, scheduling may be either with RLDC or SLDC as per applicable provisions of the Grid Code. In case, SLDC carries out scheduling, STU charges and losses shall not be applicable to schedules on ISTS. In case, RLDC carries out scheduling, ISTS charges and losses shall not be applicable to schedules on State network. It is also pertinent to mention that an associated issue may arise regarding treatment of UI/deviation charges. We are of the view that Deviation charges shall be considered pro-rata on the schedules on the State network and ISTS network. Accordingly, scheduling may be carried out by SRLDC and ISTS charges and losses shall not be applicable to schedules on State network. A special meeting to discuss on scheduling aspects and metering philosophy at NNTPS was scheduled on at NLC Office, Chennai. The outcome will be informed in the CCM. Deliberations in the CCM & update: 13.1 Member Secretary, SRPC informed the committee that the minutes of the special meeting to discuss on scheduling aspects and metering philosophy at NNTPS held on would be enclosed with the minutes of 39 th CCM. The same is at ANNEXURE It is noted that the LTA taken by NLC did not deduct the auxiliary power consumption/internal consumption of NLC Member Secretary, SRPC opined that the additional LTA quantum, after deducting Auxiliary Consumption, need to be modified and requested NLC to take up this matter with CERC. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 17/31

23 CTU was recommended to correct the approved LTA quantum for NNTPS from 400 MW to 334 MW shown in their website. NLC was requested to approach CERC regarding the reduction of Auxiliary Consumption quantum from approved LTA quantum (334 MW). 14. STOA OFFSET AP-TS INTERSTATE FLOW The net power flow from AP to Telangana for computing the STOA offset needs to be reviewed. The allocation/share of AP & Telangana from the Stations in AP and Telangana are shown below: Total Entitlement (AP to TS) MW Total Entitlement (TS to AP) MW Net flow to TS from AP (based on Share/Entitlement) MW Details are at ANNEXURE 15. Deliberations in the CCM & update: 14.1 TSPCC stated that state was not scheduling power from most of the AP generating stations and there was no power flow from AP to Telangana on this account. Hence the offset may be reduced It was suggested that mutually agreed quantum could be considered in this respect. Both the states were requested to take up the matter in the next validation committee meeting and requested Telangana to substantiate the position with facts and figures during the meeting. TSPCC/APPCC was requested to put the fact during the next Validation Committee Meeting. 15. STATISTICS ON REPLACEMENT OF FAULTY ENERGY METERS SRPC secretariat, vide letter dated and subsequent s, sought statistics on replacement of faulty energy meters, from all entities of the region, as desired by NPC. Details from the following entities had been received: NLC TPS_I EXP, NTECL and NTPL, TN, KSEBL, NLC TPS-II, NLC TPS-II EXP, PGCIL (16 STATIONS). All other entities were once again requested to furnish the requisite details on urgent basis. The details are required to be forwarded to NPC on urgent basis. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 18/31

24 Deliberations in the CCM & update: 11.1 SRPC requested all entities to furnish the requisite details The following schedule was given by SR entities in this regard: Karnataka:... by 2 nd November, 2018 Andhra Pradesh:... within one month Telangana:... within one month SR-I, PGCIL:... within 2 weeks 11.3 NTPC stated that calibration of SEMs at Ramagundem TPS and Simhadri TPS are pending for the past 5 years and requested PGCIL to do the needful. PGCIL agreed to the same. NTPC stated that the SEMs had been provided by PGCIL and details needed to be furnished by them. PGCIL stated that the SEMs details needed to be furnished by the respective agency. NTPC agreed to furnish the details available with them to NPC. 16. METERING SCHEME FOR WIND GENERATORS Mytrah and GIREL Wind Generators vide their letter dated 6 th August, 2018 (ANNEXURE 16) and 27 th August, 2018 (ANNEXURE 17), had requested to approve their metering scheme for 250 MW and MW Wind power project to be connected to Tirunelveli PGCIL (400/230kV) Station respectively. The schemes submitted by both M/s. Mytrah and GIREL seem to be conforming to the extant methodology. SRLDC also concurred to the same. Accordingly, the schemes had been provisionally concurred, through dated 27 th August, 2018 and 18 th September, 2018 respectively. However, in case of further metering requirement in future, the same would be communicated to the entities. Further, Orange Sironj Wind Power Private Limited, vide letter dated (ANNEXURE 18) had requested to approve metering scheme for 200 MW Wind power project to be connected to Tirunelveli PGCIL (400/230kV) Station. Deliberations in the CCM & update: The metering schemes were approved. 17. REARRANGEMENT OF UNIT 4 POWER EVACUATION FOR NEYVELI TPS-II STATION NLC, vide letter dated (ANNEXURE 19), informed that 400 kv GT of TPS-I Expansion-Unit 2 failed and could not be repaired. It was proposed to replace the defunct GT with the GT of Unit 4 and stated that 230 kv spare Generator Transformer available would be used to evacuate power from Unit -4, which would feed 230 kv system instead of 400 kv system. Thus the Generator transformer currently connected to Unit-4 would be utilized for evacuation of power from the TPS-I Expansion Unit-2. Minutes of 39 th CCM held on 29 th October 2018 at Tuticorin 19/31

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