SOUTHERN REGIONAL POWER COMMITTEE BANGALORE MINUTES OF THE 22 ND MEETING OF COMMERCIAL SUB-COMMITTEE OF SRPC HELD AT BANGALORE ON

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3 SOUTHERN REGIONAL POWER COMMITTEE BANGALORE MINUTES OF THE 22 ND MEETING OF COMMERCIAL SUB-COMMITTEE OF SRPC HELD AT BANGALORE ON INTRODUCTION 1.1 The 22 nd Meeting of the Commercial Sub- Committee of SRPC was held at Bangalore on 31 st July The list of participants is at Annexure-I. 1.2 Shri S.R.Bhat, Member Secretary I/c, SRPC welcomed Members & other participants to the 22 nd Meeting of Commercial Sub-Committee of SRPC. He also welcomed Shri N.N.Sadasivan, AGM, APCPL to the meeting. He informed about the meeting held on 22 nd July 2013 at Kudankulam NPP regarding smooth evacuation of power from KKNPP and other associated issues. In that meeting, TANTRANSCO had raised certain issues regarding the accounting methodology finalized in the meeting held on 23 rd January 2013 in respect of KKNPP injection to the grid. It was decided that further discussion on the accounting methodology of KKNPP would be held in the ensuing Commercial Sub- Committee Meeting. He requested the Members to deliberate and finalize the accounting methodology in view of the impending injection from Unit-1. The Agenda items were taken up for discussion. 2. CONFIRMATION OF THE MINUTES OF THE 21 st MEETING 2.1 Minutes of the 21 st meeting of the Commercial Sub-Committee of SRPC Committee held at Bangalore on 17 th April 2013 were forwarded vide letter No. SRPC/SE-I/CC-21/2013/ dated 22 nd April Subsequently, vide letter dated 20 th May 2013 SRPC had also forwarded NTPC letter dated 17 th May 2013 in respect of para 7.12 of the Minutes. The Minutes were confirmed. 3. AUDIT OF SR UI ACCOUNT & REACTIVE ENERGY POOL ACCOUNT 3.1 In line with item No.15 of Annexure-I (Section 6.1 (d)) of CERC (IEGC) Regulations, 2010, 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.

4 3.2 SRLDC vide letter dated 19 th July 2013 (Annexure - II) had furnished the details of payment and disbursement of weekly UI and Reactive Energy charges for the period from to The weekly Regional UI & Reactive Energy charges pool accounts for the period from to were audited and approved. 4. INCLUSION OF DRAWAL OF POWER FOR MAHE REGION OF UT OF PUDUCHERRY UNDER REGIONAL ENERGY ACCOUNTING 4.1 In the 21 st meeting of SRPC held on 2 nd February 2013, the Committee had approved accounting of the power being availed at Mahe region as part of CGS power allocated to Puducherry under Regional Energy Accounting of SR. 4.2 In the 21 st Commercial Sub-Committee Meeting held on 17 th April 2013, Puducherry had requested to carry out the associated works at an early date so as to implement the SRPC approved schemes. 4.3 In the meeting, EE, Puducherry informed that the existing 0.5 class CT/PT at KSEB substation were to be replaced with 0.2 class accuracy CT/PT. The issue was taken up with KSEB and requested for replacement of CT/PT. The RTU up gradation work had also been taken up and they were planning data communication through broadband. 4.4 EE, KSEB said that they had initiated action on procurement of CT/PT and it may require minimum six months time for completion of the works. 5. SCHEDULED ENERGY FROM IGSTPS, JHAJJAR OF APCPL TO AP AND KERALA ACCOUNTING OF URS POWER 5.1 In the 21 st Commercial Sub-Committee Meeting held on 17 th April 2013, the issue was deliberated and the following was noted: SRLDC would reconcile scheduled data with NRLDC before finalizing the implemented schedule of IGSTPS. The implemented schedules of both SRLDC and NRLDC would be checked by the beneficiaries as well as IGSTPS on daily basis. Any discrepancy in the scheduled data would be intimated to the RLDC within 5 days. APCPL would raise bill based on the REA issued by NRPC. Any discrepancy would be settled based on the revised REA. Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 2 of 10

5 APCPL would take up with NRLDC/ NRPC to follow CERC order in respect of Petition No.134/2009 in respect of URS power. APCL would take up with NRPC to revise REAs for the month of October 2011 to December 2011 in order to figure scheduled energy of SR beneficiaries in NR REA. In order to settle the past issues, for taking up with NRPC by SRPC in respect difference in scheduled energy figures, SRLDC would confirm that the implemented schedule has been reconciled between SRLDC & NRLDC from October to till date. After proper accounting of URS power, APCPL would intimate the beneficiaries in SR would about the actual financial liability. 5.2 Subsequently, SRLDC vide letter dated 23 rd July 2013 (Annexure-III) had intimated that NRLDC had rectified the errors and revised data were sent to NRPC. Accordingly, IGSTPS, Jhajjar schedules issued by SRLDC & NRLDC gets reconciled in full. 5.3 In the meeting, AGM, APCPL stated that withholding of payments by the beneficiaries of IGSTPS, Jhajjar in SR was not acceptable. The bills issued, based on NR REA had to be settled in full. Any discrepancy could be taken up subsequently and final settlement carried out based on the revised REA. He therefore requested KSEB to release the payment in full. 5.4 DE (Comml.), APPCC informed that payment to APCPL was made in full in respect of the energy availed from IGSTPS, Jhajjar. He requested APCPL to follow up with NRPC for carrying out revision of the REAs at the earliest enabling refund of the excess amount collected, if any, from AP. 5.5 EE, KSEB said that some payments were not admitted on account of the difference in methodology being adopted by APCPL in billing in respect of URS power availed by KSEB. The billing of URS power was not in line with orders of Hon ble CERC. He also requested APCPL to take up with NRPC for accounting of URS power in line with CERC orders and also for issuance of revised REAs so that the payment issues could be settled. 5.6 SRPC Secretariat suggested that APCPL could utilize the privilege of being a member of Commercial Sub- Committee of NRPC to get the issues resolved. Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 3 of 10

6 5.7 EE, KSEB informed that without any surrender of power, difference was being observed in entitlement and drawal schedule from IGSTPS, Jhajjar on 2 nd & 29 th July The data available in the NRLDC website shows surrender of power by KSEB from IGSTPS for some other days in July 2013 also. requested SRLDC to take up the matter with NRLDC for considering actual drawal schedules only for accounting / billing purpose. SRLDC informed that the matter would be looked into. 6. ITEMS PROPOSED BY TANTRANSCO 6.1 TANTRANSCO vide letter dated 15 th July 2013 (Annexure-IV) had furnished the following points for discussion: Monitory compensation to be paid by APTRANSCO & KPTCL to TANTRANSCO It had been stated that KPTCL & APTRANSCO have to pay an amount of ` 26,49,88,513/- and ` 10,72,68,417/- respectively to TNEB towards monitory compensation for the overdrawn energy by KPTCL & APTRANSCO for the period from December 1998 to May Energy transaction between Western Region & Southern Region. Non-payment of transformer charges to TNEB by KPTCL. 6.2 In the Meeting, EE, TANTRANSCO requested APTRANSCO & KPTCL to release the long pending payment in respect of the SREB approved monitory compensation scheme. 6.3 APPCC and KPTCL requested TANTRANSCO to furnish the details with supporting REA copies for enabling them to process the case. TANTRANSCO agreed to furnish the details. 6.4 EE, TANTRANSCO informed that PCKL had advised them to settle the transformer charges with ESCOMs. He sought clarification from PGCIL about the billing carried out by them in respect of TN owned transformers. 6.5 PGCIL clarified that presently they were directly raising bills on ESCOMs in respect of transmission charges. They would verify details of past billing on KPTCL/ESCOMs and revert back. 6.6 On the issue of energy transaction between Western Region & Southern Region, it was informed that follow up with WRPC was being carried out by Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 4 of 10 He

7 SRPC Secretariat. The constituents were requested to furnish the details which were sought by the WR constituents in the meeting held on 29 th May 2013 at Mumbai. KSEB had informed that the details sought by MSEDCL had been furnished. 7. UNAUTHORISED SURRENDER OF POWER 7.1 Puducherry vide letter dated 11 th July 2013 (Annexure-V) had brought to the attention, the unauthorized surrender carried out on behalf of Puducherry and implemented by SRLDC on 10 th July 2013 from time blocks 79 to 96. It is also stated that provision for changing the user level password may be provided to the constituents to prevent unauthorized access in future. 7.2 In the Meeting, EE, Puducherry explained about the incidence. He requested SRLDC to take suitable measure to avoid such unauthorized access in future. It was also requested for to introduce some more additional security measures in password. 7.3 SRLDC informed that the IP address was traced to Pondicherry and could be an act of those persons having knowledge of the password. It was requested not to share the password with any unauthorized persons.. Provision for changing the user level password would be enabled. Periodical change of password also suggested. They were planning to introduce digital signature provision as an additional protection. 8. ITEMS PROPOSED BY SRLDC 8.1 SRLDC vide letter dated 19 th July 2013 (refer Annexure-II) had proposed the following items also for discussion: i) Reconciliation of UI & Reactive Charges ii) Status of outstanding UI and Reactive charges to the pool account iii) Non-compliance of opening of L/C for UI payment iv) Reconciliation of Open Access disbursements v) Delay in SEM data transfer vi) Time drift correction vii) Standby SEMs installation by TNEB Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 5 of 10

8 viii) Data for RRF mechanism ix) PoC data for Q3 of (October 2013 December 2013) x) PSDF Fund Transfer Further SRLDC vide letter dated 29th July 2013 (Annexure-VI) had also proposed the following items for discussion: a) Installation of SEMs at upcoming Stations and connection points Henceforth SRLDC would not issue any communication advising the locations of SEMs b) Opening of LC for the requisite amount as per the UI Regulations with in a fortnight c) MTOA requisitions d) RRF data submission 8.2 In the Meeting, DGM SRLDC requested all the Pool Members to verify the statement in respect of reconciliation of UI & Reactive Charges, STOA charges and to send a signed copy to SRLDC for records. He also requested APTRANSCO, Tamil Nadu, LKPL & MEPL to expedite opening / enhancing of LC amount. Utilities were also requested to carry out time drift correction. All the Stations/SLDC were requested to monitor the status of SEM receipt available in the SRLDC web site and ensure timely transmission of SEM data to SRLDC. 8.3 EE, TANTRANSCO informed that procurement process for of SEMs had been initiated. SEMs in all locations including remote end of NLC TS-I feeders, KNPP feeders would be installed immediately. 8.4 Data for RRF Mechanism The scheme was implemented w.e.f SRLDC requested concerned SLDCs to furnish complete data of all the Pooling Stations latest by Tuesday 12:00 noon. SRPC Secretariat had issued RRF Account for the week from to on Andhra Pradesh, Karnataka & Tamil Nadu were to be covered in the scheme. No data were received from APTRANSCO for the week from to Hence Andhra Pradesh was not reflected in the account issued on Some discrepancies were observed in the data- such as actual data without schedule, drawal without schedule etc. Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 6 of 10

9 8.5 EE, TRANTRANSCO requested SRLDC to take up the issues with NLDC / CERC for considering de-licensing of generators who are not complying with RRF regulations. He also requested SRLDC to find out from WRLDC if there was any case of de-licensing in WR. 8.6 The Committee suggested that SRLDC could take the issues with NLDC on behalf of the States. 8.7 DGM, SRLDC stated that the issues related to implementation of RRF mechanism could be taken up by SLDCs directly with CERC/NLDC. He informed that as per the knowledge of WRLDC, there was no such incidence of de- licensing reported in WR. 8.8 DGM, SRLDC also intimated the following: Henceforth SRLDC would not issue any communication advising the location of SEMs as per revised IEGC. All concerned agencies may install the meters well in advance as per the CEA Regulations and also make SEM data available to SRLDC as per the data format outlined in the technical specifications posted on SRLDC web site. SRLDC would not issue any communication for opening / enhancement of LC. In case of delay in payment of UI charges beyond 12 days, entities needed to open LC for the requisite amount as per UI Regulations with in a fortnight and submitted the same to SRLDC. SRLDC would report the status of LC opening to Hon ble CERC. All the Constituents were requested to enter the MTOA requisitions before 10:00 hours on a day ahead basis. Concerned State to furnish RRF data every Tuesday 12:00 noon. 8.9 SRPC Secretariat suggested that accounting methodology of up coming stations also to be finalized well in advance by Commercial Sub- Committee for carrying out smooth accounting Members opined that SRLDC could continue the practice being followed in respect of SEM installation and opening of LC etc. Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 7 of 10

10 8.11 After deliberation, it was agreed that henceforth Generating stations and substations, Transmission Licensees or any agency getting connected under Connectivity, LTA/MTOA regulations or any other schemes shall approach Commercial Sub- Committee well in advance and get their Metering scheme and accounting methodology finalized by Commercial Sub- Committee. Defaulting regional entities would open LC as per the UI regulations within 15 days even without any reminder by SRLDC. 9. METHODOLOGY FOR ACCOUNTING INJECTION BY KUDANKULAM NPP 9.1 As agreed in the 20 th Meeting of SRPC, the infirm power injected by KKNPP would be accounted as per the methodology being adopted for Nuclear Stations. The energy injected by KKNPP prior to Commercial operation would be allocated to the beneficiaries in their share allocation ratio and would be reflected in the monthly REA to enable billing by KKNPP at the Tariff rates of the station. However, during real time operation, beneficiaries can not claim any relief in their Overdrawl/ under drawl on account of infirm injection by KKNPP. 9.2 In the meeting to review the preparedness for synchronizing unit-1 (1000MW) of KKNPP held at NPCIL, Kudankulam on 22 nd July 2013, the accounting methodology for accounting KKNPP injection to grid as finalized in the meeting held on 23 rd January 2013 (Annexure- VII) had been considered and it was agreed that the matter would be further discussed in the forthcoming meeting of Commercial Sub-Committee scheduled to be held on 31 st July In the Meeting, EE, TANTRANSCO reiterated that drawal by KKNPP over 230 kv feeders should be treated at HT rates of TANGEDECO. 9.4 MS I/c, SRPC said that Nuclear Power Station were designed to receive supply from two independent sources to ensure uninterrupted availability of power supply to unit auxiliaries, to ensure stable and reliable operation. During injection of power to grid from the unit, the auxiliary power drawal over 230 kv lines could not be treated as start up power. Drawal of auxiliary power would be on continuous basis and could not fall under the category of start up power. Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 8 of 10

11 9.5 After deliberations, all the Members (except TANTRANSCO) endorsed the accounting of injection to grid by KKNPP as finalized in the meeting held on 23 rd January It was also decided to conduct a high level meeting on 5 th August 2013 at SRPC Bangalore between TN and NPCIL to finalize the methodology of accounting of KKNPP injection to grid. 10. ITEMS PROPOSED BY APPCC 10.1 APPCC vide letter dated 23 rd July 2013 (Annexure-VIII) had furnished the following points for discussion: Collection of additional transmission charges by NLDC/SRLDC under e-bidding Method. Requesting NLC to pass on savings of secondary fuel oil consumption during control period as per the method by APPCC. Non submission of implemented schedule to SRPC by SRLDC in case of M/s APCPL, Jhajjar from October 2011 to June In the meeting, DGM, SRLDC clarified that additional charges collected from applicants through e-bidding was treated as congestion revenue and disbursed entirely to PSDF. It was also clarified that congestion revenue were not transferred to CTU and there were no provision in the Regulations for disbursing the same to beneficiaries. Reply in this regard had been sent to APPCC clarifying the same stand on On the issue of savings of secondary fuel oil consumption, DE, APPCC sought views from other SR beneficiaries on the methodology suggested by APPCC NLC clarified that the savings on account of secondary fuel oil consumption in relation to norms were being shared with the beneficiaries in line with Regulation 25(3) of CERC (Terms and Conditions of Tariff) Regulations, PCKL & TANTRANSCO stated that NTPC and NLC were sharing the savings on account of secondary fuel oil consumption as per CERC Regulations. KSEB & Puducherry would revert back on the issue. Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 9 of 10

12 10.6 On the issue of non submission of implemented schedule to SRPC by SRLDC in case of M/s APCPL, Jhajjar from October 2011 to June 2013, it was noted that SRLDC vide letter dated 23 rd July 2013 had furnished the status. The issue deliberated under item DATE & VENUE OF THE NEXT MEETING It was decided to hold the 23 rd meeting of Commercial Sub-Committee of SRPC in due course. 12. VOTE OF THANKS Superintending Engineer, SRPC thanked the Members and participants for their active participation. *** Minutes of the 22 nd Meeting of Commercial Sub-Committee of SRPC Page 10 of 10

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