TABLE OF CONTENTS S. No. PARTICULARS Page No. I TRUE UP TARIFF PETITION FOR FY 2013-14 3-8 II PRAYER 09 III AFFIDAVIT 10-11 IV AUTHORIZATION 12 V SUB INDEX OF TRUE UP TARIFF PROPOSAL 1 CAPACITY 13-16 2 PERFORMANCE PARAMETERS & OPERATING NORMS 17-25 3 ENERGY CHARGES (VARIABLE CHARGES) 26 4 FIXED COST:- 4.1 O & M EXPENSES 27-34 4.2 OTHER CHARGES 35-42 4.3 ADDITIONAL CAPITALIZATION / DE- CAPITALIZATION & FUNDING THEREOF 43-66 4.4 ASSETS & DEPRECIATION 67-81 4.5 INTEREST & FINANCE CHARGES 82-95 4.6 INTEREST ON WORKING CAPITAL 96-98 4.7 RETURN ON EQUITY 99-105 4.8 SECONDARY OIL COST 106-113 4.9 NON TARIFF INCOME 114 4.10 TRANSFER OF ASSETS TOWARDS SETTLEMENT OF WATER CHARGES WITH WRD, GoMP 115-119 5 REQUIREMENT FOR TRUE UP FY 2013-14 120-123 VI ANNEXURE MPERC FEE PAYMENT DETAILS 124 VII FORMS - INDEX 125 2
BEFORE THE M.P. ELECTRICITY REGULATORY COMMISSION BHOPAL IN THE MATTER OF Petition No. of 2015 Trueup of Generation Tariff of Power Stations of MPPGCL for FY 2013-14 determined by MP Electricity Regulatory Commission vide Multi Year Tariff order dated 01.04.2013. : Petitioner M.P. Power Generating Company Ltd, Jabalpur. 1. M.P. Power Management Company Ltd., Jabalpur. Vs 2. M.P. Power Transmission Co. Ltd., Jabalpur. 3. Rajasthan Rajya Vidyut Prasaran Nigam Ltd., Jaipur. 4. Uttar Pradesh Power Corporation Ltd., Lucknow. 5. MSEB (Holding Co) & Maharashtra State Transmission Co. Ltd, Mumbai : Respondents The above named petitioner M.P. Power Generating Company Ltd. respectfully submits as under:- 1. The petitioner is wholly owned company of Government of M.P engaged in generation of electricity in the State of Madhya Pradesh. It is a successor entity of erstwhile Madhya Pradesh State Electricity Board (MPSEB). 2. The Company has been incorporated as part of implementation of the power sector reform in M.P. initiated by the Government of MP. The Company has taken over the generation activities of MPSEB. The company while operating and maintaining its existing Units is also constructing new power plants for increase in generating capacity in the State of Madhya Pradesh. The Company is registered under Companies Act 1956 and was incorporated on 22.11.2001. Its registered office is at Shakti Bhawan, Rampur, Jabalpur. 3. The activities of Generation, Transmission and Distribution have been looked after earlier in the State of M.P. by the integrated utility i.e. MPSEB constituted under Section 5 of Electricity (Supply) Act 1948. The Government of MP 3
enacted M.P. Vidyut Sudhar Adhiniyam 2000 and in the spirit of said Act the unbundling process of the MPSEB was initiated by registering the following five Companies:- (i) (ii). (iii). (iv). (v). Madhya Pradesh Power Generating Co. Ltd., Jabalpur (MPPGCL) (GENCO). Madhya Pradesh Power Transmission Co. Ltd., Jabalpur (MPPTCL) (TRANSCO). Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Ltd. Jabalpur (MPPKVVCL) (EAST DISCOM). Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. Bhopal. (MPMKVVCL) (CENTRAL DISCOM). Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. Indore (MPPKVVCL) (WEST DISCOM). 4. The above mentioned five companies which were registered in November 2001 entered into Operation & Management Agreement with erstwhile MPSEB, they worked as agent of MPSEB from July 2002 to May 2005. The companies started independent functioning w.e.f. 01.06.2005 under Cash flow mechanism as per State Government order dated 31.5.2005. 5. A Sixth Company, namely the MP Power Trading Company Ltd. was incorporated as per the State Government Notification dated 3.6.2006 specifying functions of TRADECO for purchase of electricity in bulk from Generating Companies / Traders, from within & outside the State and supply electricity in bulk to the Electricity Distribution Companies in the State of Madhya Pradesh. 6. GoMP vide letter No. 6074/13/12/02 dated 29.03.12 has changed the name of MP Power Trading Company Ltd to MP Power Management Company Ltd and it has been made the holding company for all the DISCOMS of MP. Further, GoMP vide its notification dated 26.04.2012 has merged M.P. State Electricity Board with MP Power Management Company Ltd. 7. MPPMCL and the three DISCOMS of MP have entered into a management and corporate functions agreement on 05.06.2012, whereby the three DISCOMS have engaged MPPMCL to represent them in all the proceedings relating to power procurement and tariff petitions filed or to be defended before CERC, MPERC 4
and other regulatory authorities, Appellate Tribunals, High Courts, Supreme Court and CEA etc.. Therefore the three DISCOMS have not been made as respondents, separately. 8. Rajasthan Rajya Vidyut Prasaran Nigam (RRVPNL), Jaipur, (hereinafter referred as Respondent No. 3) have 40% share in the PH-1 of STPS Sarni and 50% share in Gandhi Sagar Hydro Power Station operated by MPPGCL. At the same time,mppgcl has 50% share in the Ranapratap Sagar Hydro Power Station and Jawahar Sagar Hydro Power Station operated by the Respondent No. 3. Similarly Uttar Pradesh Power Corporation Ltd (UPPCL), Lucknow (hereinafter referred as Respondent No. 4) and MSEB (Holding Co) & Maharashtra State Transmission Co. Ltd, Mumbai (hereinafter referred as Respondent No. 5) have 50% share in Rajghat Hydro Power Station and 33.3% share in Pench Hydro Power Station operated by MPPGCL, respectively. 9. GoMP vide its notification dated 03.06.2006 has provided that MP Tradeco now MP Power Management Company Ltd shall purchase entire power from the Genco at the tariff to be determined by MPERC. 10. MPPGCL entered into Power Purchase Agreement (PPA) with MP Tradeco (now M.P.P.M.C.L.) on 29.11.2006. The PPA provides that the tariff payable by Tradeco to Genco and terms & conditions related thereto shall be as determined by the State Commission. MPPGCL has therefore raised the bills of energy sold to Tradeco since 1.6.2005 as per the tariff determined by Hon ble Commission from time to time. 11. Hon ble Commission notified MPERC (Terms & Conditions for determination of Generation Tariff) (Revision-II) Regulations, 2012 {RG-26 (II) of 2012} on 12.12.2012. This regulation was based on multiyear tariff principles and incorporated norms of operation for control period FY 2013-14 to FY 2015-16. 12. In the instant True up petitions, MPPGCL has proposed true up for FY 2013-14 in respect of existing stations whose tariff was determined by Hon ble Commission vide Multi Year Tariff order dated 01.04.2013. 13. MPPGCL is submitting the True up petition for FY 2013-14 based on Audited Annual Statements of Accounts for FY 2013-14 under section 62 & 64 of the Electricity Act 2003 read with proviso 8.4 of MPERC Generation Tariff Regulation, 2012. 5
14. The Petitioner has adopted following approach for Trueup of Generation Tariff:- a) The Energy Charges (Variable Charges) has been billed in accordance to Proviso 41 of MPERC (Terms & Condition for determination of Generation Tariff) (Revision-II) Regulation, 2012. Therefore no truing up of Energy Charges has been considered. b) Other Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on R&M, Cost of Chemical & Consumable, Publication expenses and SLDC Charges have been claimed on actual basis based on Audited Accounts of FY 2013-14. c) The expenses shown in Audited Annual Statements of Accounts for FY 2013-14 are of MPPGCL s share. The expenses as extracted from Audited Annual Statements of Accounts for FY 2013-14 for the shared portion have been factored to represent 100% capacity operated by MPPGCL to match with MPERC s Multi Year Tariff Order dated 01.04.2013. d) The expenses of Rana Pratap Sagar and Jawahar Sagar indicated in the Annual Statements of Accounts for FY 2013-14 of MPPGCL have not been considered in this True up Petition since Hon'ble Commission has not considered these projects in Tariff order, being operated by Rajasthan authorities. e) The True up in respect Bansagar PH-4 Small Hydro Project (Jhinna) is not considered in the instant True up petition as MPPGCL is filing separate petition for determination of Final Tariff for this station along with its Trueup up to FY-14. f) As per the Regulation 26.5, the expenditure towards actual Pension & Terminal benefits is to be claimed by Transmission Licensee; hence MPPGCL has not claimed these expenses in its tariff petition. g) The Hon ble Commission vide Order in Petition No. 56 of 2012 dated 07.11.2012, at para No. 14 (d) has directed that in case the main comprehensive R&M proposal for Unit No. 6,7,8&9 of STPS Sarni is not filed by MPPGCL within 24 months from the date of said order, the approval of subject capital expenditure for need based R&M shall be limited to eligibility of availing Special Allowance by MPPGCL for aforesaid units for this period under regulation 18.4 & 18.5 of Tariff Regulation,2009 and its amendments, at the rate specified in the regulations for each year of control periods. MPPGCL has decided not to undertake the Comprehensive R&M works at STPS, Sarni at Unit No. 6, 7, 8 & 9 and informed the same to Hon ble 6
Commission vide letter No. 07-12/CS-MPPGCL/MPERC/Pt.56 of 2012/410 dated 13.04.2015. Accordingly, the Special Allowance on the rates specified by Hon ble Commission in Regulations, 2012 for FY 2013-14 has been considered in the instant petition. h) The Unit No.1 of STPS PH-1 has been decommissioned on 07.01.2014, Unit No.2 of STPS PH-1 has been decommissioned on 05.12.2013 and Unit No.4 of STPS PH-1 has been decommissioned on 05.12.2013 by Central Electricity Authority, New Delhi. Accordingly the Assets of Unit No. 1, 2 & 4 of STPS PH-1 have been reduced from the Gross Block of STPS PH-1 as per the Audited Books of Accounts for FY 2013-14. 15. The difference between element wise Annual Fixed Charges approved by the Hon ble Commission for FY 13-14 in its order dated 01.04.2013 vis-à-vis the true up requirement after applying Actual Availability on fixed cost elements of Thermal power stations and actual Availability applicable on Capacity charges for Hydro Power Stations based on 100% capacity of the plants operated by MPPGCL and detailed in subsequent chapters of instant petition, works out as under:- Particulars Fixed Cost Elements True Up Requirement for FY 2013-14 Elements Amount in Rs. Crores Annual Fixed Cost FY 2013-14 As per MPERC Orders MPPGCL as per norms Diff. Reference Chapter No. Page No. O & M Expenses 629.18 544.46-84.73 4.1 29-30 Compensation Allowance 11.63 9.39-2.24 4.1 32 Special Allowance 18.75 52.34 33.59 4.1 34 Interest on Loan+ Exc. Equity 188.07 233.08 45.01 4.5 95 Interest on W/C 240.18 219.19-20.99 4.6 98 Depreciation 344.48 350.12 5.64 4.4 81 RoE 335.07 336.70 1.63 4.7 105 Cost of Sec Oil (Normative) 145.02 140.40-4.62 4.8 113 Less Non Tariff Income 0.00 118.60-118.60 4.10 114 Total 1912.38 1767.07-145.31 7
16. Other Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on R&M, Cost of Chemical & Consumable, Publication expenses and SLDC Charges incurred by MPPGCL and as per audited Annual Statement of Accounts for FY 2013-14 on 100% basis as detailed in Chapter 4.2 at page-35 are as hereunder:- Amount in Rs. Crores S. No. Particulars Total 1 Rent, Rates & Taxes 0.56 2 Entry Tax 2.20 3 Water Charges 57.16 4 Cost of Chemicals 4.69 5 Cost of Consumables + Publications 6.48 6 MPERC Fee 1.16 7 SLDC Charges 0.61 Total 72.87 17. The Power station wise break up of true up amount after applying actual Availability on fixed cost elements of thermal power stations and actual Availability on capacity charges for Hydro Power Stations is worked out as under:- Amount in Rs. Crores S.No. Station As per MPERC MPPGCL as per Diff. Orders norms 1 ATPS PH-2 107.94 114.87 6.93 2 ATPS PH-3 206.50 246.48 39.98 3 STPS 420.34 294.57-125.77 4 SGTPS PH-1&2 467.93 419.66-48.27 5 SGTPS PH-3 429.64 421.33-8.30 6 Thermal 1632.35 1496.91-135.44 7 Gandhi Sagar 14.35 13.49-0.87 8 Pench 25.08 24.98-0.09 9 Rajghat 13.39 7.66-5.74 10 Bargi 17.84 15.55-2.29 11 Bansagar 1,2&3 167.79 171.22 3.43 12 Birsinghpur 6.56 7.29 0.73 13 Madhikheda 35.02 29.98-5.04 14 Hydro 280.04 270.17-9.87 Total 1912.38 1767.07-145.31 18. In addition to above, kindly permit additional Depreciation, RoE and Interest on Excess Equity amounting to Rs. 23.96 Crores at Bansagar PH- 1, 2&3 for FY- 06(10M) to FY 2012-13, on account transfer of assets towards settlement water charges with WRD, GoMP. 8
PRAYER In view of the above, the petitioner respectfully prays that Hon ble Commission may kindly:- (a) Approve Annual Fixed Charges and Other charges for FY 2013-14 and permit recovery of True up amount as per para 15, 16 & 17 in six equal monthly installments. (b) (c) (d) (e) (f) (g) Allow additional capitalization as per audited Annual Statements of Accounts for FY 2013-14. Kindly permit Special Allowance for Unit No. 6, 7, 8 & 9 of PH-2&3 of STPS, Sarni. Kindly permit additional Depreciation, RoE and Interest on excess equity at Bansagar PH- 1, 2&3 on account transfer of assets towards settlement water charges with WRD, GoMP. Condone delay in filing the petition. Condone any inadvertent omissions/ errors/ short comings and permit the applicant to add/ change/modify/ alter this filing and make further submissions as may be required at later stages. Pass such orders as Hon ble MPERC may deem fit and proper and necessary in the facts and circumstances of the case, to grant relief to petitioner. Date: 25/04/2015 Place: Jabalpur (Sanjay Kumar Tripathi) Officer-in-Charge For and on behalf of MP Power Generating Co. Ltd Jabalpur 9
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Hydro Power Stations Thermal Power Stations Capacity 1.1 Installed Generation Capacity of MPPGCL (Existing) The installed capacity of the MPPGCL share, as on 01.04.2015 is 5237.2 MW (including its share in bilateral interstate projects), consisting of 4320 MW Thermal and 917.2 MW Hydro power. The plant wise details are as under. Table 1.1 1 2 3 4 Amarkantak Power Station Thermal Power Station (Chachai) Satpura Thermal Power Station (Sarni) Sanjay Gandhi Thermal Power (Birsinghpur) Station Sri Singaji Thermal Power Project (Khandwa) Details of Power Plants Installed Capacity (MW) Total MPPGCL Share PH 2 2 x 120 = 240 100% 240 PH 3 1 x 210 = 210 100% 210 Complex 450 100% 450 PH 2 200 + 210 = 410 100% 410 PH 3 2 x 210 = 420 100% 420 PH 4 2x250= 500 100% 500 Complex 1330 100% 1330 PH 1 2 x 210 = 420 100% 420 PH 2 2 x 210 = 420 100% 420 PH 3 1 x 500 = 500 100% 500 Complex 1340 100% 1340 PH 1 2 x 600= 1200 100% 1200 Complex 1200 100% 1200 5 Total Thermal Generation 4320 100% 4320 1 Chambal HPS Gandhi Sagar 5 x 23 = 115 50% 57.5 R.P. Sagar 4 x 43 = 172 50% 86 Jawahar Sagar 3 x 33 = 99 50% 49.5 Complex 386 50% 193 2 Pench Totladoh HPS 2 x 80 = 160 66.70% 106.7 3 Bansagar HPS Tons 3 x 105 = 315 100% 315 Silpara 2 x 15 = 30 100% 30 Devlond 3 x 20 = 60 100% 60 Jhinna (SHP) 2 x 10= 20 100% 20 Complex 425 100% 425 4 Birsinghpur HPS 1 x 20 = 20 100% 20 5 Bargi HPS 2 x 45 = 90 100% 90 6 Rajghat HPS 3 x 15 = 45 50% 22.5 7 Madhikheda HPS 3 x 20= 60 100% 60 8 Total Hydro Generation 1186 917.2 Total Generation 5506 5237.2 13
1.2 Generation Capacity Operated by MPPGCL As on 01.04.2015, MPPGCL is operating 5235 MW, consisting of 4320 MW thermal and 915.0 MW Hydro power. Out of this 133.3 MW capacity belong to other States. The plant wise details are as under:- Table 1.2.1 Generation Capacity Operated by MPPGCL MW Station Installed Capacity MP Share Other State s Share MW % State s Name ATPS Chachai 450 450 0 STPS Sarni PH 2,3&4 1330 1330 0 SGTPS Birsinghpur 1340 1340 0 SSTPP Khandwa 1200 1200 0 Total Thermal 4320 4320 0 Gandhi Sagar 115 57.5 57.5 50.00% Rajasthan Pench 160 106.7 53.3 33.31% Maharashtra Bansagar Complex 425 425 0 Birsinghpur 20 20 0 Madhikheda 60 60 0 Bargi 90 90 0 Rajghat 45 22.5 22.5 50.00% Uttar Pradesh Total Hydro 915 781.7 133.3 Total Capacity 5235 5101.7 133.3 1.3 Share of MPPGCL in Generation Capacity installed in other States Similarly, MPPGCL also has a share of 135.5 MW in hydro generation capacity installed in neighboring States, as under:- Table 1.3.1 Generation Capacity installed in other States MW Station Installed Capacity MPPGCL Share Other MW % State s Name Rana Pratap Sagar 172.0 86.0 50.00% Rajasthan Jawahar Sagar 99.0 49.5 50.00% Rajasthan Total 271.0 135.5 14
1.4 Decommissioning of Units. After obtaining approvals, all the five units of Power House-1 at Satpura Thermal Power Stations have been decommissioned / retired :- Power House 1 STPS Sarni. Date of Unit Capacity retirement Unit # 1 62.5MW 7-Jan-14 Unit # 2 62.5MW 5-Dec-13 Unit # 3 62.5MW 1-Oct-12 Unit # 4 62.5MW 5-Dec-13 Unit # 5 62.5MW 1-Feb-13 The decommissioning of Unit No. 1, 2 and 4 falling in the financial period 2013-2014 have considered in this petition in subsequent chapters. The copy of documents in this regard is annexed as Annexure-1 in the additional supporting documents being submitted before Hon ble Commission separately. 1.5 Annual Statement of Accounts The Annual Statement of Accounts of MPPGCL is prepared for the portion actually owned by MPPGCL and not for the capacity operated by MPPGCL. Therefore, the expenses as extracted from the Annual Statement of Accounts of MPPGCL for the shared portion have been factored to represent 100% capacity operated by MPPGCL to match with MPERC s Order. The copy of Annual Statement of Accounts of MPPGCL for FY 2013-14 is annexed as Annexure-2 in the additional supporting documents being submitted before Hon ble Commission separately. 1.6 Capacity Addition and Future Plan 1.6.1 On-going Projects:- 2x660 MW Shri Singaji TPP (Stage-II) District Khandwa (MP) Administrative approval accorded in January 2011. PPA signed with Tradeco/ MPPMCL on 04.01.2011. The environmental clearance has been 15
granted by Ministry of Environment & Forest vide letter dated 27.08.2014. The letters of award of works issued to M/s Larson & Tubro on 04.09.2014. The estimated cost of the project is Rs. 6,500 Crores. 16
2. PERFORMANCE PARAMETERS AND OPERATING NORMS 2.1 Thermal Power Stations 2.1.1 Gross Generation The actual Gross generation in MU of Thermal Power Stations for the year 2013-14 is shown in the table below: Actual Gross Generation (MU) for FY 2013-14 Table 2.1.1.1 Name of TPS in MU Actual Gross Generation ATPS Chachai PH-2 1265 ATPS Chachai PH-3 1666 STPS Sarni PH-1, 2 & 3 4241 SGTPS Birsinghpur PH-1 & 2 4309 SGTPS Birsinghpur PH-3 3644 Total 15125 2.1.2 Plant Availability Factor The comparison between NAPAF as approved in Regulations, 2012 vis-à-vis the actual PAF for the year 2013-14 is shown in the table below: Approved V/s Actual NAPAF (%) for FY 2013-14 Table 2.1.2.1 in % Name of TPS As per MPERC Regulation,2012 MPPGCL Actuals Difference ATPS Chachai PH-2 65.0% 60.1% -4.9% ATPS Chachai PH-3 85.0% 95.7% 10.7% STPS Sarni PH-1, 2 & 3* 75.7% 54.9% -20.8% SGTPS Birsinghpur PH-1 & 2 80.0% 74.9% -5.1% SGTPS Birsinghpur PH-3 85.0% 97.8% 12.8% *Elaborated in section 2.2 (Revised operating norms of STP, Sarni) 17
2.1.3 Auxiliary Consumption MPPGCL is submitting the comparison between auxiliary consumption as approved in Regulations, 2012 vis-à-vis the actual consumption levels of its stations. Approved V/s Actual Auxiliary Consumption (%) for FY 2013-14 Table 2.1.3.1 in % Name of TPS As per MPERC Regulation,2012 MPPGCL Actuals Difference ATPS Chachai PH-2 10.00% 9.82% -0.18% ATPS Chachai PH-3 9.00% 9.87% 0.87% STPS Sarni PH-1, 2 & 3 9.85% 11.44% 1.59% SGTPS Birsinghpur PH-1 & 2 8.00% 10.72% 2.72% SGTPS Birsinghpur PH-3 6.00% 5.03% -0.97% *Elaborated in section 2.2 (Revised operating norms of STPS, Sarni) 2.1.4 Station Heat Rate The comparison of approved SHR as approved in Regulations, 2012 actual SHR for FY 2013-14 is shown in table below: vis-a-vis Approved V/s Actual Station Heat Rates for FY 2013-14 Table 2.1.4.1 Name of TPS As per MPERC Regulation,2012 in kcal/kwh MPPGCL Actuals Difference ATPS Chachai PH-2 3200 3711 511 ATPS Chachai PH-3 2450 2695 245 STPS Sarni PH-1, 2 & 3 2729 3748 1019 SGTPS Birsinghpur PH-1 & 2 2600 3033 433 SGTPS Birsinghpur PH-3 2425 2569 144 *Elaborated in section 2.2 (Revised operating norms of STPS, Sarni) 18
2.1.5 Transit Losses The comparison of approved Transit Losses as approved in Regulations, 2012 vis-a-vis actual Transit Losses for FY 2013-14 is shown in table below: Approved V/s Actual Transit & Handling Losses for FY 2013-14 Table 2.1.5.1 in % Name of TPS As per MPERC Regulation,2012 MPPGCL Actuals Difference ATPS Chachai PH-2 0.20% 0.18% -0.02% ATPS Chachai PH-3 0.80% 0.78% -0.02% STPS Sarni PH-1, 2 & 3 0.80% 1.87% 1.07% SGTPS Birsinghpur PH-1 & 2 0.80% 1.84% 1.04% SGTPS Birsinghpur PH-3 0.80% 1.84% 1.04% 2.1.6 Specific Oil Consumption In the table below targets of specific oil consumption as approved in Regulations, 2012 vis-à-vis the actual achieved by MPPGCL during FY 2013-14 have been elaborated. Approved V/s Actual Specific Oil Consumption Table 2.1.5.1 Name of TPS As per MPERC Regulation,2012 in ml/kwh MPPGCL Actuals Difference ATPS Chachai PH-2 2.00 2.23 0.23 ATPS Chachai PH-3 1.00 0.42-0.58 STPS Sarni PH-1, 2 & 3 1.90 6.87 4.97 SGTPS Birsinghpur PH-1 & 2 1.15 1.42 0.27 SGTPS Birsinghpur PH-3 1.00 0.28-0.72 *Elaborated in section 2.2 (Revised operating norms of STP, Sarni) 19
2.2 Revised Operating Norms of STPS Sarni. The Hon ble Commission vide Regulations, 2012 proviso 35 Norms of Operation has specified the operating norms of MPPGCL Thermal Power Stations for the Control Period FY-14 to FY-16. Wherein the norms for STPS Complex were derived based on the installed capacity of 1142.5 MW. Subsequently, the unit No. 3 &5 were decommissioned in FY 2012-13. Further, the Unit No.1 of STPS PH-1 has been decommissioned on 07.01.2014, Unit No.2 of STPS PH-1 has been decommissioned on 05.12.2013 and Unit No.4 of STPS PH-1 has been decommissioned on 05.12.2013 by Central Electricity Authority, New Delhi. Accordingly the weighted average operating norms for STPS Complex have been reworked out considering the actual days in operation of units of STPS PH-1. The detailed working in this regard is annexed as Annexure-3 in the additional supporting documents being submitted before Hon ble Commission separately. The gist of revised operating norms for STPS Complex is tabulated hereunder:- Table 2.2.1 Sl. No. Revised Parameter STPS Complex Unit Value 1 NAPAF % 75.69% 2 Gross Station Heat Rate Kcal/kWh 2729 3 Sp. Fuel Oil Consumption. ml/kwh 1.90 4 Aux. Consumption % 9.85% 2.3 Hydro Stations The generation from Hydro power stations depends upon the rains in catchments area of dams of respective power stations. The actual Gross generation in MU of Hydro Power Stations for the year 2013-14 is shown in the table below: 20
Actual Gross Generation (MU) for FY 2013-14 Table 2.3.1.1 S. No. Hydro Power Station / Units in MU Actual Gross Generation 1 Gandhi Sagar HPS 406 2 Pench HPS 427 3 Rajghat HPS 62 4 Bargi HPS 539 5 Bansagar 1,2&3 HPS 1931 6 Birsinghpur HPS 48 7 Madhikheda HPS 136 The Plant Availability Factor of Hydro plants stations as approved in Regulations,2012 vis-a-vis actual achieved by MPPGCL during FY 2013-14 have been elaborated below. Normative V/s Actual Plant Availability Factor Table 2.3.1.2 in % S. No. Hydro Power Station / Units As per MPERC Regulation,2012 MPPGCL Actuals Difference 1 Gandhi Sagar HPS 85.00% 92.75% 7.75% 2 Pench HPS 85.00% 86.74% 1.74% 3 Rajghat HPS 85.00% 19.37% -65.63% 4 Bargi HPS 85.00% 90.07% 5.07% 5 Bansagar 1,2&3 HPS 85.37% 81.72% -3.65% 6 Birsinghpur HPS 85.00% 85.48% 0.48% 7 Madhikheda HPS 85.00% 59.07% -25.93% The Hydro Power Station wise major constraints which affect Availability and recovery of Capacity Charges, even when units are available, are detailed as under: 21
(i) Gandhi Sagar HPS, Gandhisagar - Gandhi Sagar HPS is an interstate project of M.P. & Rajasthan where dam is controlled by Water Resources Department (WRD) of Rajasthan. Water stored in the reservoir is used for irrigation purpose and generation of electricity. WRD Rajasthan decides water releases for generation purpose. In the downstream of Gandhi Sagar HPS, there are Rana Pratap Sagar HPS and Jawahar Sagar HPS of Rajasthan. The water release from Gandhi Sagar and generation thereof is dependent on requirement of water by RPS & JS HPS and also Kota barrage. There is no control of MPPGCL on Authorities of WRD Rajasthan who decides water releases from these reservoirs resulting in under recovery of capacity charges from Gandhi Sagar HPS despite availability of machine. (ii) Pench HPS, Totladoh - Pench HPS is Inter State Project of MP and Maharashtra where dam is controlled by Soil & Water Management, Maharashtra as the water discharge is regulated by them. In the downstream of Pench HPS Totladoh, there is Navegaon-Kheri Reservoir from where water supply of Khapar Kheda TPS and requirement of irrigation / drinking water of Nagpur Distt. is met. The release of water is controlled as per downstream requirement. It is evident that there is no control of MPPGCL on authorities of Soil & Water Management, Maharashtra, who decides water releases from these reservoirs resulting in under recovery of capacity charges from Pench HPS despite availability of machines. (iii) Rajghat HPS Chanderi - Rajghat HPS is an Inter State Multipurpose Project of Government of MP and Government of UP, where dam is controlled by Betwa River Board. Being a multipurpose project, the water releases from Rajghat reservoir is controlled by Betwa River Board, Jhansi, a Central Govt. Organization. 22
Generally, the Reservoir Level reaches to Minimal Drop Down Level (MDDL) in the month of December / January every year due to requirement of water for irrigation purposes, as such no generation is possible beyond this month. It is evident that there is no control of MPPGCL on authorities of Betwa River Board, Jhansi, who decides water releases from these reservoirs resulting in under recovery of capacity charges from Rajghat HPS despite of availability of machines. (iv) Bansagar Complex - Bansagar Project is multipurpose Inter State Project of MP, UP & Bihar. The water stored in Bansagar Dam is shared in ratio of 2 : 1 : 1 in MP, Bihar & UP State. The share of UP is also being used by MP because of non readiness of their canals. The share of Bihar State is released through Bansagar III HPS Devlond after generation in to the downstream of the river. The share of MP is used in generation through Bansagar IV HPS Jhinna, Bansagar II Silpara & Bansagar-I (Tons) HPS Sirmour and for irrigation and drinking water supply of Rewa, Satna, Shahdol and adjoining area. The Bansagar Complex consists of following H P Stations: (a) Bansagar-1 (Tons) HPS :- This Power House uses water from Behar Barrage and Tons Barrage during rainy season. After that water from Bansagar Dam is used for generation of electricity. The release of water from Bansagar Dam is regulated by WRD Govt. of MP. (b) Bansagar-2 (Silpara) HPS :- This Power House is canal based power house. The release of water from Bansagar Dam to this canal (Common Water Carrier CWC) is regulated by WRD Govt. of MP. 23
(c) Bansagar 3 (Devlond) HPS :- The release of water is regulated by WRD Govt. of MP as per the requirement of Bihar State. Thus the generation of electricity from this power House is governed by releases of water as per the requirement of Bihar State. Accordingly this power station runs for on an average 4 months in a Financial Year depending on quantum of water required by Bihar State as per their share. (d) Bansagar 4 (Jhinna) Small Hydro Project(SHP) :- The release of water from Bansagar Dam is regulated by WRD Govt. of MP. The MDDL for the machines is 329.00 Mtr. which reaches in the month of December / January every year as such this power house practically runs for a period of about four months. Therefore release of water in Bansagar Complex is not in the hands of the company. As such though the machines remain available for generation the company suffers from under recovery of capacity charges. (v) Bargi HPS, Bargi Nagar - Release of water for generation is being regulated by RABL Sagar LBM Dam section of WRD, Govt. of MP. There is no control of MPPGCL on authorities of RABL Sagar LBM Dam section of WRD, Govt. of MP who decides water releases from this reservoir resulting in under recovery of capacity charges from Bargi HPS despite of availability of machines. (vi) Birsinghpur HPS - The reservoir at Birsinghpur is constructed to meet out the requirement of cooling water for Sanjay Gandhi Thermal Power Station (PH-I, II & III) and for its natural cooling by circulating the water back into the 24
reservoir. The Birsinghpur HPS (1x20MW) was constructed for running the power house mainly during rainy season only utilizing spill off water and to feed power for BLACK START of SGTPS Birsinghpur during grid collapse situation. Considering requirement of water for SGTPS, the Birsinghpur HPS is run upto November / December every year. For rest of period, inspite of availability of unit there is no recovery of capacity charges. In view of the above facts & constrains, MPPGCL humbly request Hon ble Commission to kindly allow recovery of full Capacity Charges for Hydro stations of MPPGCL without applying actual availability factor. 25
3. Energy Charges (Variable Charges) The Energy Charges (Variable Charges) has been billed in accordance to proviso 41 of MPERC (Terms & Condition for determination of Generation Tariff) (Revision-II) Regulation, 2012. Therefore no truing up of Energy Charges has been considered in this petition. However, the copy of month wise State Energy Accounts and Final Bill raised by MPPGCL for FY-2013-14 are annexed as Annexure 4 & 5 respectively in Additional Supporting Documents being submitted before Hon ble Commission separately. 26
4. Fixed Cost 4.1 O&M Expenses In MPERC (Terms and conditions for determination of Generation Tariff) (Revision-II) Regulations, 2012, MPERC has prescribed norms for O & M expenses as a function of the capacity of the plant. The O&M expenses as per provision 36.1 & 50.1 of the MPERC Tariff Regulations, 2012 comprises of Employee cost, Repair & Maintenance (R&M) Cost and Administrative & General (A&G) Cost. For the year FY 2013-14, O&M Charges in Rs. Lakh /MW specified by the Commission for various Thermal & Hydro power station of MPPGCL are tabulated below:- Table No. 4.1.1 Amount in L Rs/ MW/ Year. Approved by Thermal Station MPERC for FY 2013-14 ATPS PH-2 26.71 PH-3 18.19 PH-1 21.62 STPS PH-2 18.19 PH-3 18.19 PH-1 18.19 SGTPS PH-2 18.19 PH-3 13.71 All Hydro Stations 11.23 The Hon ble Commission, in Trueup Tariff order for FY 2011-12 has considered the O&M expenses as per norms specified under clause 36.1 of 27
MPERC s Regulations, 2009. In this Trueup petition, same strategy has been followed to work out the O&M expenses. The Unit No.1 of STPS PH-1 has been decommissioned on 07.01.2014, Unit No.2 of STPS PH-1 has been decommissioned on 05.12.2013 and Unit No.4 of STPS PH-1 has been decommissioned on 05.12.2013 by Central Electricity Authority, New Delhi. The O&M expenditure for STPS PH-1 i.e. Unit No. 1, 2 & 4 has been worked out on total number of days in operation, as these Units were decommissioned during the financial year 2013-14. Accordingly, the O&M expenditure based on norms for STPS PH-1 and STPS PH- 2&3 works out and detailed in the table below. The Unit wise month wise detailed working of O&M expenses claimed for STPS PH-1 is annexed as Annexure-6 in the additional supporting documents being submitted before Hon ble Commission separately. Table No. 4.1.2 in Rs. Crores S.No. Station O&M as per MPERC order O&M as considered by MPPGCL on Norms Diff. 1 STPS PH-1 54.05 28.76-25.29 2 STPS PH-2&3 150.98 150.98 0.00 3 Total 205.03 179.74-25.29 4.1.1 Comparison of O&M expenditure as per Hon ble Commission s Tariff order for FY 2013-14 and as considered by MPPGCL on norms before applying Actual Availability is tabulated below: 28
Table No. 4.1.1.1 S.No. Station Order for Petition No. Page No. As per MPERC order in Rs. Crores As considered by MPPGCL on Norms Diff. 1 ATPS PH-2 02/2013 55 64.10 64.10 0.00 2 ATPS PH-3 02/2013 55 38.20 38.20 0.00 3 STPS 02/2013 55 205.03 179.74-25.29 4 SGTPS PH-1&2 02/2013 55 152.80 152.80 0.00 5 SGTPS PH-3 02/2013 55 68.55 68.55 0.00 6 Total Thermal 528.68 503.39-25.29 7 Gandhi Sagar 02/2013 55 12.91 12.91 0.00 8 Pench 02/2013 55 17.97 17.97 0.00 8 Rajghat 02/2013 55 5.05 5.05 0.00 9 Bargi 02/2013 55 10.11 10.11 0.00 10 Bansagar 1,2&3 02/2013 55 45.48 45.48 0.00 11 Birsinghpur 02/2013 55 2.25 2.25 0.00 12 Madhikheda 02/2013 55 6.74 6.74 0.00 13 Total Hydro 100.51 100.51 0.00 Total 629.18 603.90-25.29 Comparison of O&M expenditure as per Hon ble Commission s MYT order and as considered by MPPGCL on norms, after applying Actual Availability is tabulated below: S. No. Table No. 4.1.1.2 Station Order for Petition No. Page No. As per MPERC Order in Rs. Crores As considered by MPPGCL on Actual Availability Diff. Rs. Crores. 1 ATPS PH-2 02/2013 55 64.10 59.29-4.81 2 ATPS PH-3 02/2013 55 38.20 40.60 2.40 3 STPS 02/2013 55 205.03 130.25-74.78 4 SGTPS PH-1&2 02/2013 55 152.80 142.98-9.82 5 SGTPS PH-3 02/2013 55 68.55 73.70 5.15 6 Total Thermal 528.68 446.82-81.86 29
S. No. Station Order for Petition No. Page No. As per MPERC Order As considered by MPPGCL on Actual Availability Diff. Rs. Crores. 7 Gandhi Sagar 02/2013 55 12.91 13.50 0.59 8 Pench 02/2013 55 17.97 18.15 0.18 9 Rajghat 02/2013 55 5.05 3.10-1.95 10 Bargi 02/2013 55 10.11 10.41 0.30 11 Bansagar 1,2&3 02/2013 55 45.48 44.51-0.97 12 Birsinghpur 02/2013 55 2.25 2.25 0.01 13 Madhikheda 02/2013 55 6.74 5.71-1.03 14 Total Hydro 100.51 97.64-2.87 Total 629.18 544.46-84.73 4.1.2 COMPENSATION ALLOWANCE The Hon ble Commission in proviso 36.2 of the Regulation RG-26(II) of 2012 has also permitted Compensation Allowances to the Thermal Generating stations depending upon their age to meet the requirement of capital nature of minor assets. Accordingly, Compensation Allowance for various Thermal Power Stations of MPPGCL has been worked out as described below: ATPS, Chachai :- The units of ATPS PH-2 are older than 25 years therefore the compensation allowance for the plants have been considered based on the norms permitted by the Hon ble Commission under proviso 36.2 of the Regulation RG-26(II) of 2012 @ 0.84 Lakhs/MW/Year. STPS Sarni :- All the units of PH - 2 &3 are above 25 years and therefore compensation allowance @ 0.84 Lakhs/MW/Year basis has been considered. As per proviso 36.2 of the Regulation RG-26(II) of 2012, the Compensation Allowance for PH-1 has not been considered as 30
MPPGCL is claiming Special Allowance in lieu of R&M for this power house. SGTPS Birsinghpur :- The units No. 1 & 2 are older than 15 years therefore the compensation allowance @ 0.44 Lakhs/MW/Year has been considered. The age of the Unit No. 3 & 4 will be in the age group of 11 to 15 years therefore compensation has been considered @ 0.19 Lakhs/MW/Year. Table No.4.1.2.1 Amount in Rs. Crores Power House Capacity in MW Age of PH as on 01.04.13. Rate in Lakhs/MW Total ATPS-PH 2 240.00 > 25 0.84 2.02 ATPS PH 3 210.00 0-10 0.00 0.00 STPS PH1 312.50 > 25 0.00 0.00 STPS PH (2&3) 830.00 > 25 0.84 6.97 STPS Total 1142.50 > 25 0.84 6.97 SGTPS PH1 420.00 16-20 0.44 1.85 SGTPS PH2 420.00 11-15 0.19 0.80 SGTPS PH 3 500.00 0-10 0.00 0.00 Thermal (100%) 2932.50 11.63 The total amount of Compensation Allowance worked out before applying Actual Availability is elaborated in the table below:- 31
Thermal Thermal Compensation Allowance FY 2013-14 Table No.4.1.2.2 S. No Particulars As per MPERC Regulation for FY 14 Amount in Rs. Crores As considered by MPPGCL on Norms Diff. 1 ATPS 2 2.02 2.02 0.00 2 ATPS 3 0.00 0.00 0.00 3 ATPS 2.02 2.02 0.00 4 STPS 1 0.00 0.00 0.00 5 STPS 2 3.44 3.44 0.00 6 STPS 3 3.52 3.52 0.00 7 STPS 6.96 6.96 0.00 8 SGTPS 1 1.85 1.85 0.00 9 SGTPS 2 0.80 0.8 0.00 10 SGTPS 3 0.00 0.00 0.00 11 SGTPS 2.65 2.65 0.00 12 Total 11.63 11.63 0.00 The total amount of Compensation Allowance worked out after applying Actual Availability is elaborated in the table below:- Compensation Allowance FY 2013-14 Table No.4.1.2.3 S. No Particulars As per MPERC Regulation for FY 14 Amount in Rs. Crores As considered by MPPGCL on Actual Availability Diff. 1 ATPS 2 2.02 1.87-0.15 2 ATPS 3 0.00 0.00 0.00 3 ATPS 2.02 1.87-0.15 4 STPS 1 0.00 0.00 0.00 5 STPS 2 3.44 2.49-0.95 6 STPS 3 3.52 2.55-0.97 7 STPS 6.96 5.04-1.92 8 SGTPS 1 1.85 1.73-0.12 9 SGTPS 2 0.80 0.75-0.05 10 SGTPS 3 0.00 0.00 0.00 11 SGTPS 2.65 2.48-0.17 12 Total Thermal 11.63 9.39-2.24 32
4.1.3 Special Allowance:- The Hon ble Commission in proviso 18.5 of the Regulation RG-26(II) of 2012 for Renovation & Modernization has provided that in case of thermal generating stations, the Generating Company may by its discretion can avail a special allowance either for a unit or a group of units as compensation for meeting the requirement of expenses including Renovation & Modernization works beyond the useful life of the generating stations. Units of STPS, Sarni PH-1 are planned for their closure, soon after the commencement of 2x250 MW Units of STPS, Sarni. MPPGCL has opted to avail this special allowance for these five units. Accordingly the same has been included in the Annual Fixed cost of the Station. The Unit No.1 of STPS PH-1 has been decommissioned on 07.01.2014, Unit No.2 of STPS PH-1 has been decommissioned on 05.12.2013 and Unit No.4 of STPS PH-1 has been decommissioned on 05.012.2013 by Central Electricity Authority, New Delhi. The Unit wise month wise detailed working of Special Allowance claimed for STPS PH-1 is annexed as Annexure-7 in the additional supporting documents being submitted before Hon ble Commission separately. Further, the Hon ble Commission vide Order in Petition No. 56 of 2012 dated 07.11.2012, at para No. 14 (d) has directed that in case the main comprehensive R&M proposal for Unit No. 6,7,8&9 of STPS Sarni is not filed by MPPGCL within 24 months from the date of said order, the approval of subject capital expenditure for need based R&M shall be limited to eligibility of availing Special Allowance by MPPGCL for aforesaid units for this period under regulation 18.4 & 18.5 of Tariff Regulation,2009 and its amendments, at the rate specified in the regulations for each year of control period. MPPGCL has decided not to undertake the Comprehensive R&M works at STPS, Sarni at Unit No. 6, 7, 8 & 9 and informed the same to Hon ble Commission vide letter No. 07-12/CS-MPPGCL/MPERC/Pt.56 of 2012/410 dated 13.04.2015. Accordingly, the Special Allowance on the rates specified by Hon ble Commission in Regulations, 2012 for FY 2013-14 i.e Rs. 7.5 Lakhs/MW has been considered calculating the Special Allowance for Unit No. 6,7,8&9 of 33
STPS Sarni. The total amount of Special Allowance worked out before applying Actual Availability is elaborated in the table below:- Table No.4.1.3.1 S. No Particulars Special Allowance FY 2013-14 As per MPERC Order for FY 14 Amount in Rs. Crores. MPPGCL as per Norms Diff. 1 STPS PH 1 18.75 9.98-8.77 2 STPS PH 2&3 0.00 62.25 62.25 3 Total 18.75 72.23 53.48 The total amount of Special Allowance worked out after applying Actual Availability is elaborated in the table below:- Table No.4.1.3.2 S. No Particulars As per MPERC Order for FY 14 Amount in Rs. Crores. MPPGCL as per actual Availability Diff. 1 STPS PH 1 18.75 7.23-11.52 2 STPS PH 2&3 0.00 45.11 45.11 3 Total 18.75 52.34 33.59 MPPGCL humbly request Hon ble Commission to kindly consider the O&M expenses, Compensation Allowance and Special Allowances as elaborated above. 34
4.2 Other Charges Other Charges comprises of Rent, Rates & Taxes, MPERC Fees, Entry Tax on R&M, Water Charges, Cost of Chemical, Cost of Consumable, Publication Charges & SLDC charges. Water Charges which are payable to Government have been paid based on rates specified by GoMP. Rent, Rates and Taxes for power stations has been taken on actual. SLDC charges have claimed in accordance with Regulation 39 allocated to Thermal Power Stations on MW capacity basis. The detailed workings in regard to Other Charges are annexed as Annexure-8 respectively in Additional Supporting Documents being submitted before Hon ble Commission separately. As per the Regulation 26.5, the expenditure towards actual Pension & Terminal benefits shall be claimed by Transmission Licensee, accordingly MPPGCL had not claimed these expenses in this Trueup tariff petition. 4.2.1 MPERC Fees MPERC Generation Tariff Regulation 2012 provides claim of MPERC Fee as actual. The details of Fees actually paid to MPERC in FY 2013-14 are shown in Table below: Table No.4.2.1.1 S.No. Power Station in Rs. Crores MPERC Fee 1 ATPS PH-2 0.073 2 ATPS PH-3 0.064 3 STPS 0.350 4 SGTPS PH-1&2 0.254 5 SGTPS PH-3 0.151 6 Total Thermal 0.892 7 Gandhi Sagar HPS 0.035 8 Pench HPS 0.048 9 Rajghat HPS 0.014 10 Bargi HPS 0.027 11 Bansagar PH-1,2&3 HPS 0.123 12 Birsinghpur HPS 0.006 13 Madhikheda HPS 0.018 14 Total Hydro 0.271 Total 1.163 35
4.2.2 Cost of Chemicals The Regulation 36.1 provides for claiming Cost of Chemicals separately on actual, accordingly the cost of Chemicals as captured in audited Books of accounts for FY 2013-14 at point No. 23.2, Sl. No. 2 page 40, factored to represent 100% capacity operated by MPPGCL has been worked out. The Power station wise details of Cost of Chemicals in FY 2013-14 are shown in Table below:- Table No.4.2.2.1 in Rs. Crores S.No. Power Station Cost of Chemicals 1 ATPS PH-2 0.41 2 ATPS PH-3 0.35 3 STPS 2.41 4 SGTPS PH-1&2 0.95 5 SGTPS PH-3 0.57 6 Total Thermal 4.69 7 Gandhi Sagar HPS 0.00 8 Pench HPS 0.00 9 Rajghat HPS 0.00 10 Bargi HPS 0.00 11 Bansagar PH-1,2&3 HPS 0.00 12 Birsinghpur HPS 0.00 13 Madhikheda HPS 0.00 14 Total Hydro 0.00 Total 4.69 36
4.2.3 Water Charges Water Charges are payable to Government on rates specified by GoMP. The Regulation 42 & 58 provides for claiming Water Charges separately on actual, accordingly the Water Charges as captured in audited Books of accounts for FY 2013-14 at point No. 23.2, Sl.No.1 on page 40, factored to represent 100% capacity operated by MPPGCL has been worked out. The Power station wise details of Water Charges paid in FY 2013-14 are shown in Table below:- Table No.4.2.3.1 in Rs. Crores S.No. Power Station Water Charges 1 ATPS PH-2 1.30 2 ATPS PH-3 1.14 3 STPS 4.63 4 SGTPS PH-1&2 5.78 5 SGTPS PH-3 3.44 6 Total Thermal 16.29 7 Gandhi Sagar HPS 10.79 8 Pench HPS 0.00 9 Rajghat HPS 0.00 10 Bargi HPS 10.35 11 Bansagar PH-1,2&3 HPS 16.12 12 Birsinghpur HPS 0.01 13 Madhikheda HPS 3.60 14 Total Hydro 40.87 Total 57.16 4.2.4 Rent, Rates & Taxes Rent, Rates and Taxes for power stations of MPPGCL has been taken on actual basis. The Regulation 36.1 provides for claiming Rent, Rate & Taxes separately on actual, accordingly the Rent, Rate & Taxes as captured in audited Books of 37
accounts for FY 2013-14 at point No. 27.1, Sl. No. (a) & (c) page 47, factored to represent 100% capacity operated by MPPGCL has been worked out. The Power station wise details Rent, Rate & Taxes in FY 2013-14 are shown in Table below: Table No.4.2.4.1 S.No. Power Station in Rs. Crores Rent, Rates & Taxes 1 ATPS PH-2 0.01 2 ATPS PH-3 0.01 3 STPS 0.39 4 SGTPS PH-1&2 0.00 5 SGTPS PH-3 0.00 6 Total Thermal 0.42 7 Gandhi Sagar HPS 0.04 8 Pench HPS 0.00 9 Rajghat HPS 0.01 10 Bargi HPS 0.02 11 Bansagar PH-1,2&3 HPS 0.07 12 Birsinghpur HPS 0.00 13 Madhikheda HPS 0.01 14 Total Hydro 0.15 Total 0.56 4.2.5 Entry Tax on Repair & Maintenance. Entry Tax on Repair & Maintenance of power stations of MPPGCL has been taken on actual basis. The Regulation 36.1 provides for claiming Entry Tax on Repair & Maintenance separately on actual, accordingly the Entry Tax on Repair & Maintenance as captured in audited Books of accounts for FY 2013-14 at point No. 27.6, Sl. No. 7 page 48, factored to represent 100% capacity operated by 38
MPPGCL has been worked out. The Power station wise details Entry Tax on Repair & Maintenance in FY 2013-14 are shown in Table below: Table No.4.2.5.1 in Rs. Crores S.No. Power Station Entry Tax 1 ATPS PH-2 0.12 2 ATPS PH-3 0.11 3 STPS 1.19 4 SGTPS PH-1&2 0.46 5 SGTPS PH-3 0.27 6 Total Thermal 2.15 7 Gandhi Sagar HPS 0.00 8 Pench HPS 0.00 9 Rajghat HPS 0.00 10 Bargi HPS 0.00 11 Bansagar PH-1,2&3 HPS 0.05 12 Birsinghpur HPS 0.00 13 Madhikheda HPS 0.00 14 Total Hydro 0.05 Total 2.20 4.2.6 Cost of Consumables and Publication Expenses The Regulation 36.1 provides for claiming Cost of Consumables separately on actual, similarly Regulation 30 provides for claiming expenses incurred towards publication of Notice for Tariff/ Trueup petitions. accordingly the Cost of Consumables as captured in audited Books of accounts for FY 2013-14 at point No. 23.2, Sl.No.3 page 40, factored to represent 100% capacity operated by MPPGCL has been worked out. Similarly the Publication expenses incurred by MPPGCL during FY 2013-14 has worked out and parked at Bargi HPS for simplicity. 39
The Power station wise details of Cost of Chemicals and Publication Expenses in FY 2013-14 are shown in Table below:- Table No.4.2.6.1 in Rs. Crores S.No. Power Station Cost of Consumables + Publications 1 ATPS PH-2 0.07 2 ATPS PH-3 0.06 3 STPS 3.21 4 SGTPS PH-1&2 1.57 5 SGTPS PH-3 0.94 6 Total Thermal 5.84 7 Gandhi Sagar HPS 0.11 8 Pench HPS 0.01 9 Rajghat HPS 0.37 10 Bargi HPS 0.01 11 Bansagar PH-1,2&3 HPS -0.06 12 Birsinghpur HPS 0.12 13 Madhikheda HPS 0.08 14 Total Hydro 0.64 Total 6.48 4.2.7 SLDC Charges SLDC charges have claimed in accordance with Regulation 39 of Terms & Conditions for determination of Generation Tariff, Regulation-2012 and allocated to Thermal Power Stations on MW capacity basis. These charges were determined & demanded by SLDC as per the Regulation 12.5 of MPERC (Levy and Collection of Fee and Charges by State Load Despatch Centre) Regulation, 2004 (Revision-1, 2006). Accordingly the same is being paid by MPPGCL towards Revision of Declared Capacity (DC) of Thermal Power Station of MPPGCL under ABT 40
regime and is reflected in Annual Statement of Accounts for FY 2013-14 of MPPGCL in Point No. 27.1 Sl. No. (h) Page 47. The Power Station wise details of SLDC Charges paid by MPPGCL in FY 2013-14 are shown in Table below: Table No.4.2.7.1 in Rs. Crores S.No. Power Station SLDC Charges 1 ATPS PH-2 0.05 2 ATPS PH-3 0.05 3 STPS 0.21 4 SGTPS PH-1&2 0.18 5 SGTPS PH-3 0.11 6 Total Thermal 0.61 7 Gandhi Sagar HPS 0.00 8 Pench HPS 0.00 9 Rajghat HPS 0.00 10 Bargi HPS 0.00 11 Bansagar PH-1,2&3 HPS 0.00 12 Birsinghpur HPS 0.00 13 Madhikheda HPS 0.00 14 Total Hydro 0.00 Total 0.61 4.2.8 Overall Other Charges Considering the above elements, the overall Other Charges work out to be Rs. 72.87 Crores and MPPGCL humbly prays before Hon ble Commission to permit same:- 41
Table No.4.2.8.1 in Rs. Crores S.No. Power Station Rent, Rates & Taxes Entry Tax Water Charges Cost of Chemicals Cost of Consumables + Publications MPERC Fee SLDC Charges Total 1 ATPS PH-2 0.009 0.121 1.302 0.406 0.068 0.073 0.053 2.030 2 ATPS PH-3 0.008 0.106 1.139 0.355 0.059 0.064 0.046 1.776 3 STPS 0.394 1.188 4.625 2.412 3.207 0.350 0.212 12.389 4 SGTPS PH-1&2 0.003 0.462 5.783 0.951 1.573 0.254 0.185 9.211 5 SGTPS PH-3 0.002 0.275 3.443 0.566 0.936 0.151 0.110 5.483 6 Total Thermal 0.415 2.151 16.292 4.689 5.843 0.892 0.606 30.889 7 Gandhi Sagar HPS 0.037 0.001 10.792 0.000 0.111 0.035 10.976 8 Pench HPS 0.003 0.001 0.000 0.000 0.008 0.048 0.061 9 Rajghat HPS 0.007 0.000 0.000 0.000 0.365 0.014 0.386 10 Bargi HPS 0.023 0.001 10.348 0.000 0.008 0.027 10.407 11 Bansagar PH-1,2&3 HPS 0.069 0.047 16.122 0.000-0.057 0.123 16.302 12 Birsinghpur HPS 0.000 0.000 0.009 0.000 0.123 0.006 0.138 13 Madhikheda HPS 0.011 0.000 3.598 0.000 0.080 0.018 3.708 14 Total Hydro 0.149 0.050 40.870 0.000 0.639 0.271 0.000 41.979 Total 0.564 2.201 57.162 4.689 6.482 1.163 0.606 72.868 42
4.3 Additional Capitalization/ De-capitalization and Funding thereof- ATPS 2x120MW PH-2 4.3.1. The Renovation and Modernization scheme at ATPS PH-2(2x120 MW) was approved by the Board of erstwhile MPSEB on 18.01.2004 amounting to Rs. 124.30 Crores. The said R&M scheme was financed through PFC loan No. 20104021 amounting to Rs. 99.00 Crores, GoMP Loan amounting to Rs. 6.01 Crores and balance through equity/internal resources of the Company. The copy of Board s resolution along with loan documents, in this regard, were already submitted to Hon ble Commission vide this office letter dated 31.01.2015. 4.3.2. In the matter, it is to mention that the additional Capitalization under the said scheme at ATPS PH-2 was previously approved by Hon ble Commission in the True Up orders for FY 2008-09, FY 2010-11 & FY 2011-12. In the True up petition for FY2012-13, MPPGCL has claimed additional capitalization of Rs.4.04 Crores under the said scheme. 4.3.3. In the instant financial year under consideration for True up, the S. No. additional asset capitalized under said scheme as per the Audited books of Accounts for FY 2013-14 amounts to Rs.0.75 Crores. The details of asset capitalized under said scheme is as follows:- Table No.4.3.3.1 Account Code Details of Asset Capitalized In Rs. Crores 1 10.561 Switchgears including cable connections 0.745 2 10.580 Refrigerators & water coolers 0.002 3 10.905 Computers 0.005 Total 0.752 4.3.4. A list detailing the R&M works including copy of orders, accounting vouchers etc are enclosed as Annexure-9 as additional supporting 43
documents being submitted separately. The funding for the above assets has been made through PFC Loan No. 20104021 and GoMP Loan. The details of funding in respect of additional capitalization carried out at ATPS PH-2 are as under:- Table No.4.3.4.1 Particulars PFC Loan No. 20104021 in Rs. Crores. GoMP Total Loan 1 Total Drawls till 31-3-2013 90.66 6.01 96.67 2 Approved by MPERC in upto True Up Order for FY 12 in proportion to Addl. Capitalization allowed by MPERC 85.84 0.00 85.84 3 Loan drawls Claimed in FY 13( in proportion to Addl. Capitalization) 4.04 0.00 4.04 4 Balance Amount (1-2-3) 0.78 6.01 6.79 6 Drawls in FY 14 2.07 0.00 2.07 7 Total receipts to be claimed(3+4) 2.85 6.01 8.86 8 Additional Capitalization in FY 14 at ATPS PH-2 0.75 4.3.5. The year wise details of Loan drawl in respect of PFC Loan No. 20104021 and GoMP Loan Nos. F-5/17/09/13 dated 22.01.2010 and F-5/17/09/13 dated 27.03.2010 is detailed below: Table No.4.3.5.1 Financial Year PFC Loan No.20104021 in Rs. Crores. GoMP Loan No. (i) F-5/17/09/13 dtd 22/01/2010 (ii)f-5/17/09/13 dtd 27/03/2010 Drawl up to 31.05.2005 2.50 - FY 06 (10M) 1.34 - FY 07 31.71 - FY 08 8.54 - FY 09 11.05 - FY 10 21.90 6.01 FY 11 8.69 - FY 12 2.77 - FY 13 2.16 - Subtotal up to FY 13 90.66 6.01 FY 14 2.07 Total 92.73 6.01 44
ATPS 210MW PH-3 4.3.6. The extension Unit No.5 210MW ATPS was commissioned on 10.09.2009, accordingly MPPGCL had filed petition for determination of Final generation Tariff on 31.12.2011 for the period FY 2009-10 to FY 2010-11 on actual basis and for FY 2011-12 on projected basis. The Hon ble Commission vide order dated 01.05.2012 has determined the final generation for FY 2009-10 & FY 2010-11 on actual basis and FY 2011-12 on projected basis. Further vide True up order for FY 2011-12 dated 01.10.2014, the Hon ble Commission has approved the additional Capitalization during FY 2011-12 amounting to Rs. 81.24 Crores. In the True up petition for FY2012-13, MPPGCL has claimed additional capitalization of Rs.41.69 Crores. 4.3.7. In the instant financial year under consideration for True up, the additional asset capitalized at ATPS PH-3(210MW) as per the Audited books of Accounts for FY 2013-14 amounts to Rs.7.28 Crores as detailed hereunder: Table No.4.3.7.1 Sl. No. Account Code Details of Asset Capitalized Amount in Rs. Crores 1 10.106 Cost of tree plantation for tree cut down 0.05 2 10.501 Boiler Plant & Equipments 0.16 3 10.503 Turbine-generator Steam power generation 0.06 4 10.507 Ash handling plant 2.21 5 10.512 Coal Conveyer & crusher 0.20 6 10.515 Coal handling plant & handling equipments 2.89 7 10.520 Instrumentation & Controls 0.002 8 10.580 Refrigerators & water coolers 0.02 9 10.581 Meter Testing Laboratory Tools & Equipments 0.93 10 10.582 Equipments in hospitals/clinics 0.01 11 10.905 Computers 0.002 12 11.300 Capital Spares at Generating Stations 0.76 Total 7.28 45
4.3.8. The ATPS Extn. Unit No.5 210MW project was on EPC Turnkey basis awarded to M/s BHEL, New Delhi. The Order copies of major Supply/Works orders along with copy of accounting vouchers through which the additional capitalization of assets have been carried out are annexed as Annexure-10 in additional information being submitted separately as supporting documents. The additional capitalization carried out are within the original scope of cost estimate of Rs. 1242.14 Crores approved by GoMP vide letter No. 282/13/2011 dated 12.01.2011 (copy annexed as Annexure-11 in additional information being submitted separately as supporting documents 4.3.9. The details of funding (Debt + Equity) in respect of additional capitalization carried out at ATPS PH-3 in FY 2013-14 is detailed below:- Table No.4.3.9.1 in Rs. Crores Particulars PFC Loan No. 20101012 &20701002 GoMP Equity Internal resources/ Equity Total 1 Total Drawls till 31-3-2013 828.13 223.42 57.29 1108.84 2 Approved by MPERC in upto True Up Order for FY 12 in proportion to Addl. Capitalization allowed by MPERC Less: Adjustment towards FY 14 (assets Transferred to CWIP) 774.31 223.42 0.00 997.73 1.02 1.02 3 Drawls Claimed in FY 13( in proportion to Addl. Capitalization & adjustment of outstanding Liability) Net amount 773.29 223.42 0.00 996.71 44.57 0.00 57.29 101.86 4 Balance Amount (1-2-3) 10.26 0.00 0.00 10.26 5 Drawls in FY 14 20.79 0.00 0.00 20.79 6 Total receipts to be claimed(4+5) 31.05 0.00 0.00 31.05 7 Additional Capitalization in FY 13 at ATPS PH-3 7.28 46
4.3.10. The year wise drawls from PFC Loans and GoMP Equity is detailed hereunder:- Table No.4.3.10.1 in Rs. Crores Financial Year PFC Loan No.20101012 PFC Loan No.20701002 GoMP Equity Internal resources/e quity Total Up to FY 06 93.95-57.55 151.50 FY 07 152.47-79.3 231.77 FY 08 249.32-77.44 326.76 FY 09 196.80-5.36 202.16 FY 10 49.0 3.85 0.75 53.60 FY 11 0.46 15.80 3.02 19.28 FY 12 0.00 12.66 0.00 57.29 69.95 FY 13 0.00 53.82 0.00 53.82 Subtotal up to FY 13 742.00 86.13 223.42 57.29 1108.84 FY 14 20.79 20.79 Total 742.00 106.92 223.42 57.29 1129.63 4.3.11. It is further to submit that the Hon ble Commission in the Final Tariff Order for ATPS PH-3 210MW para 3.1.12 has excluded the amount of Rs. 50.59 Crores towards Liquidated damages from BHEL while determining the project cost. As per the Standard Accounting Principles the Assets are recorded in books of accounts at the original value without deduction. The amount of LD etc remains withheld till the final settlement is made with the contractor, thereafter necessary entries with adjustments are made in the books of accounts. Till date final settlement has not been made with the contractor as such the final amount LD etc cannot be ascertained. Once the final settlement is made the same shall be suitably informed to the Hon ble Commission. Accordingly MPPGCL has considered the project cost as capitalized in the books of accounts for the purpose of calculating depreciation 47
STPS PH-1 4.3.12. The Hon ble Commission in Regulation RG-26(I) of 2009 Proviso 18 for Renovation & Modernization provides that the generating company may at its discretion can avail a Special Allowance either for a Unit or group of Units as compensation for making requirement of expenses including R&M works beyond the useful life of generating station. Since the Units of STPS PH-1 are planned for closure soon after the commencement of 2x250MW Units of STPS Sarni, MPPGCL has opted for Special Allowance for the five Units of STPS PH-1 (5x62.5MW). 4.3.13. Accordingly, MPPGCL is not claiming any additional capitalization on these Units from FY 2009-10 onwards. Hence Opening Gross Block as on 01.04.2009 is considered for the purpose of claiming deprecation. 4.3.14. The Unit No.3 of STPS PH-1 was decommissioned on 01.10.2012 vide Central Electricity Authority, New Delhi letter dated 22.01.2013. Similarly, the Unit No. 5 of STPS PH-1 was decommissioned on 01.02.2013 vide Central Electricity Authority, New Delhi letter dated 13.05.2013. Accordingly the Assets of Unit No.3 & 5 of STPS PH-1 have been reduced from the Gross Block of STPS PH-1 in the True up petition for FY 2012-13 as per the Audited Books of Accounts for FY 2012-13. 4.3.15. In the Financial Year 2013-14, the unit No.2&4 of STPS PH-1 was Sl. No. decommissioned on 05.12.2013 and unit No.1 was decommissioned on 07.01.2014.The assets towards common services at STPS Sarni pertaining to PH-1 remains part of Gross Block. Accordingly the Assets of Unit No.1,2&4 of STPS PH-1 have been reduced from the Gross Block of STPS PH-1 in the instant True up petition as per the Audited Books of Accounts for FY 2013-14. The details of assets deleted from Gross Block of STPS PH- 1 are detailed here under: Table No.4.3.15.1 Account Code Details of Asset Capitalized in Rs. Crores Amount 1 10.201 Buildings Containing Thermo Elec. Gen. Plant 2.246 2 10.207 Buildings Containing Transmission Installations 0.113 3 10.208 Building Containing Dist. Installations 0.002 4 10.211 Office Buildings 0.015 5 10.233 Other Buildings 1.498 6 10.310 Cooling Water System 0.051 48
Sl. Account No. Code Details of Asset Capitalized Amount 7 10.311 Cooling Towers 1.680 8 10.501 Boiler Plant & Equipments 1.319 9 10.502 Furnace/Burners 0.104 10 10.503 Turbine-Generator-Steam Power Generation 11.264 11 10.504 Plant Foundations for Steam Power Plant 0.104 12 10.507 Ash Handling Plant 5.328 13 10.509 Auxiliaries in Steam Power Plant 0.012 14 10.515 Coal Handling Plant & Handling Equipments 2.189 15 10.520 Instrumentation and Controls 1.848 16 10.531 Hydel Power Generation Plants 0.028 17 10.532 Plant Foundation for Hydel Power Generating Plant 0.015 18 10.541 Transmission Plant-Transformers 100 KVA & Above 0.049 19 10.542 Other Transformers of Power House 0.275 20 10.543 Others Trans. Plant Transformer, Kiosks, Subs Equip Apprat. 0.680 21 10.544 Substation Transformer & Kiosks 100 KV & Above 0.001 22 10.545 Substation Transformer & Kiosks Below 100 KV 0.008 23 10.546 Line Transformer Below 100 KVA 0.078 24 10.561 Switchgears Including Cable Connections 1.293 25 10.574 Static Machine Tools & Equipments 0.010 26 10.576 Air-Conditioning Plant Static 0.024 27 10.577 Air-Conditioning Plant-Portable 0.001 28 10.580 Refrigerators and Water Coolers 0.001 29 10.583 Tools and Tackles 0.086 30 10.599 Other Misc. Equip. Including. Fire Protection System 0.221 31 10.602 Overhead Lines on Steel Support At Vol.Bt.13.2 &66 0.022 32 10.603 Overhead Lines on R.C. Support 0.009 33 10.611 Underground Cables Including.Jt. Boxes & Disconnect. Box 0.620 34 10.612 Underground Cables - Cable Duct System 0.071 35 10.631 Metering Equipments 0.008 36 10.685 Miscellaneous Equipments 0.008 37 10.800 Furniture & Fixtures 0.031 38 10.901 Calculators 0.008 39 10.902 Typewriters 0.005 40 10.904 Others 0.049 41 10.905 Computers 0.146 Total 31.522 The assets not considered for removal as the same was added during FY 10 to FY 12 and the addition after 1-4-2009 onwards was not considered as special allowance was availed by MPPGCL for STPS -2.590 PH-1 Total 28.932 49
4.3.16. It is to mention that the loan Balance as on 01.04.2013 towards STPS PH-1 amount to Nil. Further the amount of equity allocated to STPS PH-1 has been readjusted in proportion to assets removed from the Gross Block of STPS PH-1. The same is dealt in subsequent chapters of the instant petition. The equity balance/ withdrawn is detailed as under: Table No.4.3.16.1 in Rs. Crores Particulars Amount 1 Gross Block of STPS as on 01-04-2013 31.96 2 Normative Equity of STPS as on 01-04-2013 9.42 3 Assets decommissioned during FY 2013-14 28.93 4 5 Normative Equity in Proportion to assets decommissioned (2/1x3) Balance Equity to be considered for RoE towards retained assets (2-4) 8.53 0.89 STPS PH-2&3 4.3.17. The Hon ble Commission in its order for petition No. 56 of 2012 dated 07.11.2012 has accorded approval of capital expenditure amounting to Rs. 336.80 Crores towards need based R&M works in Unit No. 6, 7, 8 & 9 of PH-2&3, STPS Sarni. 4.3.18. Further, The Hon ble Commission in said order para No. 14 (d) has directed that in case the main comprehensive R&M proposal for Unit No. 6,7,8&9 of STPS Sarni is not filed by MPPGCL within 24 months from the date of said order the approval of subject capital expenditure for need based R&M shall be limited to eligibility of availing Special Allowance by MPPGCL for aforesaid units for this period under regulation 18.4 & 18.5 of Tariff Regulation,2009 and its amendments at the rate specified in extant regulations for each year of control period. 4.3.19. The Hon ble Commission vide True up order for FY 2011-12 dated 01.10.2014 has not allowed the additional capitalization at STPS PH-2&3 amounting to Rs. 40.83 Crores towards need based R&M works in Unit No. 6, 7, 8 & 9 of PH-2&3, STPS Sarni as MPPGCL has not fulfilled the 50
condition of filing the main comprehensive R&M proposal for Unit No. 6, 7, 8 & 9 of STPS Sarni till the date of issue of True up Order. 4.3.20. In accordance with the procedure adopted by Hon ble Commission, MPPGCL in the True Up petition for FY 2012-13 has not claimed any additional capitalization during FY 2012-13 at STPS PH-2 & 3 towards need based R&M works along with its funding through Loan & equity 4.3.21. In the aforesaid issue MPPGCL has now opted for Special Allowance from FY 2011-12 onwards the same is dealt in the Chapter of O&M expenses for FY 2013-14. 51
SGTPS PH-1&2 4.3.22. Minor addition in assets of SGTPS PH-1&2 were made during FY 2012- S.No 13 towards procurement of Computers, Furniture & office Equipments. The said procurement was made from the internal resource/equity of MPPGCL. The details are as hereunder:- Table No.4.3.22.1 Account Code Details in Rs. Crores Amount 1 10.542 Other Transformers of power House 0.03 2 10.580 Refrigerators and water coolers 0.00 3 10.582 Equipments in Hospitals/clinics 0.05 4 10.800 Furniture & Fixture 0.01 5 10.904 Others office equipments 0.03 6 10.905 Computers 0.02 Total 0.15 4.3.23. The funding details are hereunder:- Table No.4.3.23.1 Particulars Loan Equity/ Internal resources in Rs. Crore Total 1 Additional capitalization in FY 14 0.15 2 Drawls in FY 13 0.00 0.15 0.15 SGTPS PH-3 4.3.24. The extension Unit No. 5 500MW SGTPS was commissioned on 28.08.2008, accordingly MPPGCL had filed petition for determination of Final generation Tariff on 25.07.2012 for the period 28.08.2008 to 31.03.2011 on actual basis and for FY-12 on projected basis. Hon ble Commission vide order dated 26.02.2013 has determined the Final Generation Tariff for FY 2008-09, FY 2009-10 & FY 2010-11 on actual basis and FY 2011-12 on projected basis. 52
Further vide True up order for FY 2011-12 dated 01.10.2014, the Hon ble Commission has approved the additional Capitalization during FY 2011-12 amounting to Rs. 61.13 Crores. In the True up petition for FY2012-13, MPPGCL has claimed additional capitalization of Rs.37.12 Crores. 4.3.25. In the instant financial year under consideration for True up, the additional asset capitalized at SGTPS PH-3(500MW) as per the Audited books of Accounts for FY 2013-14 amounts to Rs.30.04 Crores as detailed hereunder: Table No.4.3.25.1 in Rs. Crore Sl. No. Account Code Details of Asset Capitalized Amount 1 10.103 Cost of Land Development on Leasehold Land 6.93 2 10.106 Cost of Tree Plant. for Tree Cut Down (Provisional) 0.07 3 10.211 Office Buildings 5.38 4 10.401 Pucca Roads 2.14 5 10.501 Boiler Plant & Equipments 3.55 6 10.503 Turbine-Generator-Steam Power Generation 7.00 7 10.507 Ash Handling Plant 0.04 8 10.509 Auxiliaries in Steam Power Plant 0.01 9 10.515 Coal Handling Plant & Handling Equipments 0.01 10 10.520 Instrumentation and Controls 3.45 11 10.613 Internal Wiring Including Fittings & Fixtures 0.22 12 10.904 Others 0.05 13 10.905 Computers 0.02 14 11.300 Capital Spares 1.17 Total 30.04 4.3.26. The SGTPS Extension Unit No.5 (500MW) project was on EPC Turnkey basis awarded to M/s BHEL, New Delhi. The major order copies in this regard along with copy of accounting vouchers through which the additional capitalization of assets have been carried out are annexed as Annexure-12 in additional information being submitted separately as 53
supporting documents.. The aforesaid additional capitalization carried out were within the original scope of cost estimate of Rs. 2300 Crores approved by GoMP vide letter No. 3193/13/2007 dated 04.05.2007 (copy annexed as Annexure-13 in additional information being submitted separately as supporting documents. 4.3.27. The details of funding (Debt + Equity) in respect of additional capitalization carried out at SGTPS PH-3 in FY 2013-14 is detailed below: Table No.4.3.27.1 Particulars PFC Loan No. 20101011 in Rs. Crore Equity Total 1 Total Drawls till 31-3-2013 1539.87 625.00 2164.87 2 Approved by MPERC in upto True Up Order for FY 12 in proportion to Addl. Capitalization allowed by MPERC Less: Adjustment towards FY 14 (w.r.t. assets Transferred to CWIP Rs 28.70Crs, assets transferred from SGTPS to STPS PH-4 Rs.0.20Crs) 1330.01 625.00 1955.01 28.90 0.00 28.90 Net amount 1301.11 625.00 1926.11 3 Loan drawls Claimed in FY 13( in proportion to Addl. Capitalization) 37.12 0 37.12 4 Balance Amount (1-2-3) 201.64 0 201.64 5 Drawls in FY 14 20.08 0 20.08 6 Total receipts to be claimed(4+5) 221.72 0 221.72 7 Additional Capitalization in FY 13 at SGTPS PH-3(500MW) 30.04 54
4.3.28. The year wise drawls from PFC Loans and deployment of GoMP-Equity is detailed hereunder:- Table No.4.3.28.1 Financial Year PFC Loan No.20101011 in Rs. Crores GoMP Total Equity Up to FY 06 1001.90 334.23 1336.13 FY 07 163.02 270.00 433.02 FY 08 101.16 20.77 121.93 FY 09 52.54 0 52.54 FY 10 82.54 0 82.54 FY 11 71.87 0 71.87 FY 12 51.81 0 51.81 FY 13 15.03 0 15.03 Subtotal up to FY 13 1539.87 625.00 2164.87 FY 14 20.08 0 20.08 Total 1559.95 625.00 2184.95 4.3.29. The Gross Block of SGTPS PH-3 (500 MW) as on CoD dated 28.08.2008 amounted to Rs.1956.94 Crores. The Hon ble Commission in the final tariff order of SGTPS PH-3 (500 MW) has considered Gross block of Rs. 1845.40 Crores after deduction of Rs. 93.04 Crores towards Liquidated damages and Rs. 18.50 towards Exchange Rate variation. The total deduction comes to Rs.Rs.111.54 Crores. In the Financial year 2013-14 the amount of LD has been settled with BHEL which amounts to Rs. 82.72 Crores and the amount of Exchange Rate variation remains unaltered i.e. 18.50 Crores. The amount of LD retained as a result of settlement has been reflected under the head Non Tariff Income and accordingly deducted from Fixed Cost. 4.3.30. In view of the above the depreciation of SGTPS PH-3 (500 MW) needs to be revised from FY 09 to FY 13 on account of adjustment of LD/ERV and further adjustment/deductions carried out in FY14 with retrospective effect. The same is considered separately in the chapter of Assets & depreciation. 55
Bansagar PH-1, 2 & 3 :- 4.3.31. The additional capitalization as captured in the Annual Statement of Accounts of MPPGCL for FY 2013-14 at Bansagar PH-1, 2 & 3 Hydro Power Station amounts to Rs. 0.23 Crores. The account code details of assets capitalized is as under:- Table No.4.3.311 in Rs. Crores S.No Account Code Details Amount 1 10.102 Land held under lease 0.19 2 10.599 Other Misc. Equipments inc. Fire Protection system 0.02 3 10.905 Computers 0.02 Total 0.23 4.3.32. The assets capitalized are mainly towards compensation paid for land and procurement of computers. The accounting vouchers & relevant documents towards the same are annexed as Annexure-14 in additional information being submitted separately as supporting documents. 4.3.33. The aforesaid expenditure towards additional capitalization was funded through the internal resources / equity of MPPGCL as detailed in the table below:- Table No.4.3.32.1 S. No. Power Stations Assets capitalized in Rs. Crores Loan Equity/ Internal Resources 1 Bansagar PH 1, 2 & 3 0.23 0.00 0.23 Total 0.23 0.00 0.23 Gandhi Sagar HPS 4.3.34. The additional capitalization as captured in the Annual Statement of Accounts of MPPGCL for FY 2013-14 at Gandhi Sagar Hydro Power Station amounts to Rs.0.09 Crores. The account code wise details of assets capitalized are as under: 56
Table No.4.3.34.1 Account S.No Code Details Amount 1 10.800 Furniture & Fixture 0.014 2 10.905 Computers 0.001 Total 0.01 4.3.35. The aforesaid capitalization is on account of procurement furniture peripherals and computer peripherals. The said expenses are met from the internal resources of the company. The accounting vouchers in this regard are annexed as Annexure-15 in additional information being submitted to Hon ble Commission separately as supporting documents. 4.3.36. The funding details are as under: Table No.4.3.36.1 in Rs. Crores S. No. Power Stations Assets capitalized Loan Equity/ Internal Resources 1 Gandhi Sagar 0.01 0 0.01 Pench HPS 4.3.40. The additional capitalization as captured in the Annual Statement of Accounts of MPPGCL for FY 2013-14 at Pench Hydro Power Station amounts to Rs. 1.87 Crores. The account code details of assets capitalized is as under:- Table No.4.3.40.1 in Rs. Crores S.No Account Code Details Amount 1 10.535 Auxiliaries in Hydro power Stations 1.87 Total 1.87 4.3.41. The assets capitalized is towards procurement of Electro Hydraulic governor under RGMO scheme of Hon ble CERC at Pench HPS The 57
accounting vouchers & relevant documents towards the same are annexed as Annexure-16 separately as supporting documents. in additional information being submitted 4.3.42. The aforesaid expenditure towards additional capitalization was funded through the internal resources / equity of MPPGCL as detailed in the table below:- Table No.4.3.42.1 S. No. Power Stations Assets capitalized in Rs. Crores Loan Equity/ Internal Resources 1 Pench 1.87 0.00 1.87 Total 1.87 0.00 1.87 Head Quarter 4.3.43. MPPGCL wish to submit that in its earlier petitions, the company has proposed the minor assets capitalized at Head Quarter to be treated as part of assets of the nearest power station i.e. Bargi HPS and accordingly claimed depreciation, Interest Charges and RoE. However the Hon ble Commission has not given cognizance to the same. MPPGCL in the instant Trueup petition has again claimed the total capitalization for the period FY 2005-06(10M) upto FY 2012-14 as per the Audited books of accounts. The account code wise details of Asset capitalized at Head Quarter (HQ) is as under:- Table No.4.3.43.1 in Rs. Crores A/c Code Details FY06 (10M) FY07 FY08 FY09 FY10 FY11 FY12 FY 13 FY 14 Total 10.577 AIR CONDITIONER 0 0 0 0 0 0 0 0 0.005 0.005 10.580 REFRIGERATORS & WATER COOLERS 0 0.003 0 0.002 0.004 0 0 0 0 0.009 10.583 TOOLS AND TACKLES 0 0 0 0 0 0 0 0 0 0.000 10.685 MISCELLANEOUS EQUIPMENTS 0.001 0 0 0 0 0 0 0 0 0.001 10.800 FURNITURE AND FIXTURES 0.01 0.01 0.02 0 0 0 0.01 0.15 0.03 0.235 10.904 OTHERS 0.02 0.03 0.01 0.15 0.24 0.01 0.01 0.05 0.12 0.641 10.905 COMPUTERS 0.03 0.01 0.01 0.15 0.35 0.04 0.05 0.2 0.07 0.910 Total 0.06 0.05 0.04 0.30 0.59 0.05 0.07 0.40 0.23 1.80 58
4.3.44. The accounting vouchers along with the statement detailing the nature of works etc. are annexed as Annexure-17 in additional information being submitted to Hon ble Commission separately as supporting documents. 4.3.45. The details of funding in respect of aforesaid assets capitalized at HQ is detailed below:- Table No.4.3.45.1 Particulars GoMP Loan in Rs. Crores Equity/ internal resources Total 1 Receipts upto 31-3-2013 1.18 0.40 1.58 2 Approved by MPERC in the earlier True Up Orders 0.00 0.00 0.00 3 Balance Amount(1-2) 1.18 0.40 1.58 4 Drawls in FY 14 0.00 0.23 0.23 5 Total receipts Claimed(3+4) 1.18 0.63 1.81 6 Additional Capitalization from FY 06 to FY 12 1.57 7 Additional Capitalization for FY 14 0.23 8 Total Additional capitalization claimed from FY 06 to FY 14(6+7) 1.81 4.3.46. The year wise details of drawl made from loan and internal resources towards funding of additional capitalization is as under:- Table No.4.3.46.1 Financial Year Asset Added GoMP Loan No. F-5/41/2007/13 dated 20.03.2008 in Rs. Crore Equity/ internal resources FY 06 0.06 0.06 FY 07 0.05 0.05 FY 08 0.04 0.04 FY 09 0.30 FY 10 0.59 FY 11 0.05 1.18 FY 12 0.07 FY 13 0.40 0.24 FY 14 0.23 0.23 Total 1.80 1.18 0.62 MPPGCL humbly request Hon ble Commission to kindly allow the additional capitalization at HQ. 59
4.3.47. Considering the above power station wise additional capitalization the total amount of Loans & Equities/Internal resources claimed in the instant petition works out as under:- LOAN RECEIPTS Table No.4.3.47.1 in Rs. Crores S.No. Stations Receipts upto 1-04-2013 Receipts in FY 14 Total 1 ATPS PH-2 6.79 2.07 8.86 2 ATPS PH-3 10.26 20.79 31.05 3 SGTPS PH-3 201.64 20.08 221.72 4 Total Thermal 218.69 42.93 261.62 5 HQ 1.18 0.00 1.18 Total 219.87 42.93 262.80 Note:- *Loan receipt / drawl not cognized by Hon'ble Commission EQUITY / INTERNAL RESOURCES Table No.4.3.47.2 in Rs. Crores S.No. Stations Receipts upto 1-4-2013 Receipts in FY 14 Total 1 SGTPS PH-3 0 0.15 0.15 2 Total Thermal 0.00 0.15 0.15 3 Gandhi Sagar 0 0.01 0.01 4 Pench 0 1.87 1.87 5 Bansagar PH 1,2&3 0 0.23 0.23 6 Total Hydel 0.00 2.12 2.12 7 HQ & S&I 0.40 0.23 0.63 Total 0.40 2.50 2.89 Note:- * Equity Receipt / drawl not cognized by Hon'ble Commission 4.3.48. Accordingly the power station wise asset capitalization and funding details are summarized as below:- 60
Table No.4.3.48.1 in Rs. Crores S.No. Stations Addl. Capitalization FY 14 Loan Equity 1 ATPS PH-2 0.75 8.86 0.00 2 ATPS PH-3 7.28 31.05 0.00 3 STPS 0.00 0.00 0.00 4 SGTPS PH-1&2 0.15 0.00 0.15 5 SGTPS PH-3 30.04 221.72 0.00 6 Total Thermal 38.22 261.62 0.15 7 Gandhi Sagar 0.01 0.00 0.01 8 Pench 1.87 0.00 1.87 9 Bansagar PH 1,2&3 0.23 0.00 0.23 10 Total Hydro 2.12 0.00 2.12 11 HQ & S&I* 1.81 1.18 0.63 Total 42.15 262.80 2.89 *Asset addition for HQ from FY 06 to FY 14 has been considered. 4.3.49. MPPGCL humbly request the Hon ble Commission to permit the additional Capitalization at Thermal & Hydro power Stations along with funding thereof. 61
4.3.50. Details of Asset Write off/adjustments etc: (1) ATPS PH-2 During FY 2013-14 following assets were written off at ATPS PH-2 as per Audited Books of Accounts for FY 2013-14: Table No.4.3.50.1 Sl. No. Account Code Details of Asset Written off in Rs. Crores Amount 1 10.580 Refrigerators and water coolers 0.003 2 10.800 Furniture & Fixture 0.0002 3 10.905 Computers 0.006 Total 0.009 The aforesaid assets are reduced from the Gross Block of ATPS PH-2 in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2013-14. (2) ATPS PH-3: In FY 2011-12 MPPGCL has paid additional capitalization of Rs.81.24 Crores and the same was permitted by Hon ble Commission. In the Financial year FY 2013-14, asset (sewerage line) amounting to Rs. 1.02 Crore out of said capitalization has been transferred back to CWIP ( Capital Work in Progress) and the same was reflected in the Audited books of Account for FY13-14.The Account Code wide details is as under: Table No.4.3.50.2 Sl. No. Account Code Details of Asset transferred to CWIP in Rs. Crores Amount 1 10.201 Building containing Thermo Gen Plant 1.02 Total 1.02 The depreciation earlier claimed on such asset during FY 2011-12 and FY 2012-13 has been reversed separately in the chapter Assets & Depreciation. As the asset was earlier funded through Loan component, the Loan Balance of ATPS PH-3 has also been reduced to the extent of amount of aforesaid Asset. 62
(3) STPS PH 2 &3: In FY 2010-11 MPPGCL has claimed asset addition amounting to Rs. 31.92 Crores and the same was permitted by Hon ble Commission. The said capitalization includes an asset of Rs. 5.15 Crores which is transferred to STPS PH-4 in FY 13-14 and the same was reflected in the Audited books of Account for FY13-14. The Account Code wide details are as under: Table No.4.3.50.3 Sl. No. Account Code in Rs. Crores Details of Asset transferred to STPS PH-4 Amount 1 10.233 Other Buildings 5.15 Total 5.15 The depreciation earlier claimed on such asset during FY 2011-12 and FY 2012-13 has been reversed separately in the chapter Assets & Depreciation. The asset was earlier funded through Loan component, however the Loan Balance of STPS PH-2&3 as on 1-4-2013 is Nil, accordingly no reduction is made. (4) SGTPS PH 1&2: During FY 2013-14, following assets were written off at SGTPS PH-1&2 as per Audited Books of Accounts for FY 2013-14: Sl. No. Table No.4.3.50.4 Account Code Details of Asset Written off in Rs. Crores Amount 1 10.563 Batteries including charging equipments 0.28 Total 0.28 The aforesaid asset is reduced from the Gross Block of SGTPS PH-2 in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2013-14 (5) SGTPS PH-3 The Gross Block of SGTPS PH-3 (500 MW) as on COD dated 28.08.2008 amounting to Rs.1956.94 Crores. The Hon ble Commission in the final tariff order of SGTPS PH-3 (500 MW) has considered Gross block of Rs. 1845.40 63
Crores after deduction of Rs. 93.04 Crores towards Liquidated damages and Rs. 18.50 towards Exchange Rate variation. The total deduction comes to Rs.Rs.111.54 Crores. In the Financial year 2013-14 the amount of LD has been settled with BHEL which amounts to Rs. 82.72 Crores and the amount of Exchange Rate variation remains unaltered i.e. 18.50 Crores. The amount of LD retained as a result of settlement same has been reflected under the head Non Tariff Income. Further reduction of Rs. 18.50 Crores towards ERV is made in the amount of assets of SGTPS PH-3 as per Audited Book of Accounts of MPPGCL. The Account Code wide details of Asset amount reduced due to Exchange rate variation are as under: Sl. No. Table No.4.3.50.5 Account Code Details of Asset amount reduced due to Exchange rate variation in Rs. Crores Amount 1 10.501 Boiler plant & equipments 9.25 2 10.503 Turbine Generator-Steam Power generation 6.94 3 10.520 Instrumentation & controls 1.49 4 10.542 Other Transformer of Power House 0.79 5 10.561 Switchgears including cable connections 0.03 Total 18.50 In addition to above, during FY 12, MPPGCL has claimed asset addition amounting to Rs.61.13, out of which asset amounting to Rs.0.20 Crores (In- Motion Weigh Bridge) was transferred to STPS PH-4. Similarly, during FY 13, MPPGCL has claimed asset addition amounting to Rs.37.12 Crores, out of which asset amounting to Rs.28.70 Crores (Ash Handling Plant) was transferred to CWIP. The Account Code wide details of said Assets are as under: Sl. No. Table No.4.3.50.6 Account Code Details of Asset transferred in Rs. Crores Amount 1 10.507 Ash Handling Plant 28.70 2 11.300 Capital Spares 0.20 Total 28.90 Considering above the amount of depreciation claimed at SGTPSPH-3 (500MW) has been revised from retrospective effect in the chapter Assets & Depreciation. 64
The reduced/transferred assets from funded loan component, accordingly loan Balance of SGTPS PH-3 has also been reduced to the extent of amount of aforesaid Assets. (6) Bansagar PH-1,2&3: During FY 2013-14 following assets were written off at Bansagar PH-1, 2 & 3 as per Audited Books of Accounts for FY 2013-14: Table No.4.3.50.7 Sl. No. Account Code Details of Asset Written off in Rs. Crores Amount 1 10.305 Hydel works, RCC pipes, Surge tanks, valves etc 0.01 2 10.531 Hydel power Generation Plant 0.0003 Total 0.012 The aforesaid assets are reduced from the Gross Block of Bansagar PH-1,2&3 in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2013-14. (7) Gandhi Sagar HPS During FY 2013-14 following assets were written off at Bansagar PH-1,2&3 as per Audited Books of Accounts for FY 2013-14: Table No.4.3.50.7 Sl. No. Account Code Details of Asset Written off in Rs. Crores Amount 1 10.710 Trucks, Tempos, Truckers 0.006 2 10.720 Buses including Mini Buses 0.010 3 10.730 Jeeps & Motor Cars 0.047 Total 0.063 The aforesaid assets are reduced from the Gross Block of Gandhi Sagar HPS in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2013-14. 65
(8) Bargi HPS During FY 2013-14 following assets were written off at Bansagar PH-1, 2 & 3 as per Audited Books of Accounts for FY 2013-14: Table No.4.3.50.7 Sl. No. Account Code Details of Asset Written off in Rs. Crores Amount 1 10.902 Type writers 0.002 Total 0.002 The aforesaid assets are reduced from the Gross Block of Bargi HPS in the chapter of Assets & depreciation for the purpose of claiming depreciation for FY 2013-14. 66
4.4 Assets & Depreciation 4.4.1. The Power Station wise break up of Fixed Assets as reflected in the Audited books of account FY 2013-14 along with asset additions and adjustment/deductions are tabulated below:- Gross Block details for FY 2013-14 Table No. 4.4.1.1 Power Station Op.bal as on 31.3.13 Gross Block Asset not in use Additions in FY 14 in Rs. Crores Adjustments /write-off / decommiss ioning of Assets Cl.bal as on 31.3.14 Asset not in use Gross Block 1 ATPS Chachai 1369.03 0.04 8.03-1.03 0.00 1376.03 2 STPS Sarni 781.28 9.40 3158.72-36.66 40.85 3903.34 3 SGTPS (Thermal & Hydro) 4327.85 30.19-47.68 4310.36 4 Bansagar HPS (Complex) 1282.89 0.23-0.01 1283.11 5 SSTPP 81.19 3744.78 3825.97 Bargi HPS 87.03-0.06 86.97 Gandhi Sagar HPS 10.43 0.01-0.06 10.38 J. Sagar HPS 16.56 16.56 6 COG &HS Madhikheda HPS 215.97 0.06 216.03 Pench HPS 96.27 1.87 98.14 R.P. Sagar HPS 18.86 18.86 Rajghat HPS 82.81 82.81 HQ & S&I 1.57 0.23 1.80 COGHS 529.49 0.00 2.18-0.12 0.00 531.54 Total MPPGCL 8371.72 9.44 6944.13-85.50 40.85 15230.37 As per Balance Sheet 8381.17 6858.62 15271.22 67
4.4.2. The Power house wise details of Opening Gross Block for FY 2013-14 considered in the instant petition is tabulated below:- Opening Gross Block as on 01-04-2013 Table No. 4.4.2.1 in Rs. Crores S.No. Power Stations Amount 1 ATPS PH-2 221.30 2 ATPS PH-3 1147.72 3 ATPS Total 1369.02 4 STPS PH-1 31.96 5 STPS PH-2&3 632.63 6 STPS Total 664.59 7 SGTPS PH-1&2 2172.97 8 SGTPS PH-3 2102.74 9 SGTPS Total 4275.71 10 Total Thermal 6309.32 11 Gandhi Sagar 10.43 12 Pench 96.27 13 Rajghat 82.81 14 Bargi 87.03 15 Bansagar PH-1,2&3 1162.79 16 Madhikheda 215.97 17 Birsinghpur 52.15 18 Total Hydro 1707.44 19 HQ 1.57 Total 8018.33. 68
4.4.3. The comparative table indicating the difference between the Gross Block as per Balance Sheet and as considered in instant petition as on 01.04-2013 is detailed hereunder: Comparison of Opening Gross Block as on 01-04-2013 Table No. 4.4.3.1 in Rs. Crores Power Stations As per Balance Sheet As considered in this petition Diff. Remarks 1 ATPS Chachai 1369 1369 0 2 STPS Sarni 781 665-117 Difference on account of Asset additions at STPS PH-1,2&3 which were not claimed as Special allowance opted. 3 SGTPS Birsinghpur 4276 4276 0 4 SSTPP Khandwa 81 0-81 Considered in Separate tariff petition 5 Total Thermal 6507 6309-198 6 Gandhi Sagar 10 10 0 7 Jawahar Sagar 17 0-17 Operated by other State 8 RP Sagar 19 0-19 Operated by other State 9 Pench 96 96 0 10 Rajghat 83 83 0 11 Bargi 87 87 0 12 Bansagar 1283 1163-120 Difference on account of project cost of Bansagar IV (Jhinna) considered in Separate Final tariff petition) 13 Madhikheda 216 216 0 14 Birsinghpur 52 52 0 15 Total Hydro 1863 1707-156 16 HQ 2 2 0 Total 8372 8018-353 69
4.4.4. The Power Station wise Accumulated depreciation as on 01.04.2013 is as under:- Accumulated Depreciation as on 01.04.2013 Table No. 4.4.4.1 in Rs. Crores as % of S. Power Stations Amount Opening No. GB 1 ATPS PH-2 126.67 57% 2 ATPS PH-3 173.81 15% 3 ATPS Chachai 300.48 22% 4 STPS PH-1 28.76 90% 5 STPS PH-2&3 568.78 90% 6 STPS Total 597.54 90% 7 SGTPS PH-1&2 1435.05 66% 8 SGTPS-PH-3 460.79 22% 9 SGTPS Total 1895.84 44% 10 Total Thermal 2793.85 44% 11 Gandhi Sagar 9.30 89% 12 Pench 73.97 77% 13 Rajghat 39.17 47% 14 Bargi 60.53 70% 15 Bansagar PH-1,2&3 515.43 44% 16 Madhikheda 55.37 26% 17 Birsinghpur 31.93 61% 18 Total Hydro 785.70 46% 19 HQ 0.43 27% Total 3579.98 45% 70
4.4.5. During FY 2013-14 asset capitalization was carried out at the existing stations as well as in the new projects The details of Assets capitalized and funding was elaborated in the Chapter-4.3 Additional Capitalization / de-capitalization and Funding thereof. The power station wise summary of Asset additions made as per Audited Books of account for FY 2013-14 is detailed here under: Table No. 4.4.5.1 Asset Additions during FY 2013-14 in Rs. Crores S.No. Stations Amount 1 ATPS PH-2 0.75 2 ATPS PH-3 7.28 3 ATPS Chachai 8.03 4 STPS PH-1-5 STPS PH-2&3-6 STPS Total 0.00 7 SGTPS PH-1&2 0.15 8 SGTPS-PH 3 30.04 9 SGTPS Total 30.19 10 Total Thermal 38.22 11 Gandhi Sagar 0.01 12 Pench 1.87 13 Rajghat - 14 Bargi - 15 Bansagar PH-1,2 &3 0.23 16 Madhikheda - 17 Birsinghpur - 18 Total Hydro 2.12 19 HQ 0.23 Total 40.57 *The Addition during FY 14 at STPS PH-2&3 towards need based R&M is not considered as special allowance opted for it. 71
S.No. 4.4.6. The Write off /adjustments/transfer/ decommissioning of Assets was made in the Gross Block of Fixed assets of the various power stations. These adjustments were reflected in the Audited Books of Accounts of MPPGCL for FY 2013-14. The power station wise detail of such adjustment/deductions was elaborated in the Chapter-4.3 Additional Capitalization / decapitalization and Funding thereof the power station wise summary is detailed here under: Table No. 4.4.6.1 Asset Stations Amount Acc. Dep amount in Rs. Crores 1 ATPS PH-2-0.01-0.007 Assets Written off Remarks 2 ATPS PH-3-1.02-0.07 Assets Capitalized transferred back to CWIP 3 ATPS Total -1.03-0.07 4 STPS PH-1-28.93-26.03 Assets decommissioned towards of retirement of units 5 STPS PH-2&3-5.15-4.63 Assets transferred to STPS PH-4 6 ATPS Total -34.08-30.67 7 SGTPS PH-1&2-0.28-0.26 Assets Written off 8 SGTPS PH-3-6.09-0.54 6.09 0.54 Asset earlier booked as capital Spares now Transferred to 10.XXX Code Asset earlier booked as capital Spares now Transferred to 10.XXX Code -0.20-0.02 Assets transferred to STPS PH-4-18.50-4.30 Asset adjustment on account of ERV -28.70 0.00 Sub Total SGTPS PH-3-47.40-4.32 9 SGTPS Total -47.68-4.57 10 Total Thermal -82.79-35.32 11 Bargi -0.06-0.02 Assets wrongly Capitalized transferred back to CWIP Rs.22181 assets Written off and assets of Rs.574919 re-appropriated to Madhikheda HPS from Bargi HPS. 12 Gandhi Sagar -0.06-0.06 Assets Written off Re-appropriated to Madhikheda HPS from Bargi 13 Madhikheda 0.06 0.02 HPS 14 Bansagar PH-1,2&3-0.012-0.008 Assets Written off 15 Total Hydro -0.075-0.065 Total -82.86-35.38 72
4.4.7. The supporting documents in respect to above i.e. Survey reports & Accounting Vouchers are annexed as Annexure-18 in Additional Supporting Documents being submitted before Hon ble Commission separately. 4.4.8. The Power House wise Asset Cum Depreciation Registers of Thermal & Hydro Power Stations have been updated after considering the above mentioned Assets Addition & deduction/adjustments and are annexed as Annexure-19 respectively in Additional Supporting Documents being submitted before Hon ble Commission separately. 4.4.9. In the instant petition the depreciation on the Gross Block has been computed based on the following:- The rates for depreciation are considered as approved by Hon ble Commission in Appendix-II of Regulation G-26(II) of 2012. The salvage value of assets is considered as 10% i.e. none of the assets are depreciated more than 90% of the gross value. As per proviso 24.1 (f) of MPERC regulation 2009 specifies that the rate of depreciation continued to be charged at the rate specified in Appendix-II till cumulative depreciation reaches 70%. Thereafter the remaining depreciable value is spread over the remaining life of the asset such that the maximum depreciation does not exceed 90%. Certain plants of MPPGCL i.e. ATPS PH-2, STPS Sarni and Gandhi Sagar HPS, has already completed their useful life. For such power stations the depreciation is calculated based on the estimated useful life i.e. 08 years in case of ATPS PH-2 & 04 years in case of STPS & Gandhi Sagar. This philosophy was adopted by MPPGCL from FY 2009-10 onwards. In case of asset addition made during the year, the depreciation is charged on prorata basis based on the commercial operation of the assets for part of the year. The Assets additions at STPS PH-1,2&3 is not considered as special allowance is opted for these units. The assets in the records of MPPGCL are only for its own share hence depreciation is computed for MPPGCL share only. The Asset Capitalization at STPS PH-4 and SSTPP Unit 1 are being dealt through separate Tariff Petitions. 73
4.4.10. Considering the above principles, the depreciation on various power stations has been worked out and is tabulated below:- S.No. Table No. 4.4.10.1 Station Depreciation computation for FY 2013-14 Op. Balance as on 1-4-2013 Dep. Asset GB Acc. Dep For FY 14 Cl. Balance as on 1-4-2014 Asset GB in Rs. Crores Acc. Dep. Closing Acc. Dep. as % of GB 1 ATPS PH-2 221.30 126.67 18.17 222.04 144.83 65% 2 ATPS PH-3 1147.72 173.81 54.66 1153.99 228.39 20% 3 ATPS Chachai 1369.02 300.48 72.83 1376.03 373.23 27% 4 STPS PH-1 31.96 28.76 0.00 3.03 2.73 90% 5 STPS PH-2&3 632.63 568.78 0.00 627.48 564.14 90% 6 STPS Total 664.59 597.54 0.00 630.51 566.87 90% 7 SGTPS PH-1&2 2172.97 1435.05 70.14 2172.84 1504.93 69% 8 SGTPS PH-3 2102.74 460.79 106.34 2085.38 562.82 27% 9 SGTPS Total 4275.71 1895.84 176.48 4258.22 2067.74 49% Total Thermal 6309.32 2793.85 249.31 6264.75 3007.84 48% 10 Gandhi Sagar 10.43 9.30 0.09 10.38 9.34 90% 11 Pench 96.27 73.97 1.92 98.14 75.89 77% 12 Rajghat 82.81 39.17 3.65 82.81 42.82 52% 14 Bargi 87.03 60.53 1.81 86.97 62.32 72% 15 Bansagar PH-1,2&3 1162.79 515.43 58.06 1163.01 573.48 49% 16 Madhikheda 215.97 55.37 11.26 216.03 66.65 31% 17 Birsinghpur 52.15 31.93 2.39 52.15 34.32 66% 18 Total Hydro 1707.44 785.70 79.18 1709.49 864.81 51% 19 HQ 1.57 0.43 0.17 1.80 0.60 33% Total 8018.33 3579.98 328.65 7976.04 3873.25 49% 74
4.4.11. The depreciation on the assets of HQ is nominal as such the same has been linked to the nearest power station i.e. Bargi HPS for simplicity. 4.4.12. The Hon ble Commission has permitted depreciation for FY 2013-14 in the MYT order for FY 14 to FY 16 read with tariff order dated 09.07.2013 towards segregation of tariff of STPS Complex amounting to Rs. 344.48 Crores. The power Station wise break up is detailed as under: Depreciation allowed in Multi Year Tariff Order Table No. 4.4.12.1 S.No. Station in Rs. Crores As per MYT order 1 ATPS PH-2 6.08 2 ATPS PH-3 44.50 3 ATPS Chachai 50.58 4 STPS PH-1 1.16 5 STPS PH-2&3 21.28 4 STPS Total 22.44 5 SGTPS PH-1&2 91.53 6 SGTPS-PH-3 100.09 7 SGTPS Total 191.62 8 Total Thermal 264.64 9 Gandhi Sagar 0.23 10 Pench 1.51 11 Rajghat 4.03 12 Bargi 2.96 13 Bansagar PH-1,2&3 58.22 14 Madhikheda 11.22 15 Birsinghpur 1.67 16 Total Hydro 79.84 Total 344.48 75
Depreciation Adjustments: 4.4.13. The Power station wise adjustments in depreciation amount to be reversed/claimed is detailed hereunder: ATPS PH-3: In FY 2011-12 MPPGCL has made additional capitalization of Rs.81.24 Crores and the same was permitted by Hon ble Commission. In the Financial year FY 2013-14 asset amounting to Rs. 1.02 Crores (Sewerage Plant) out of said capitalization has been transferred back to CWIP (Capital Work in Progress) and the same was reflected in the audited books of account of FY 2013-14. Accordingly the depreciation earlier claimed on such asset during FY 2011-12 and FY 2012-13 needs to be reversed. The same is worked out as under:- Table No. 4.4.13.1 ATPS PH-3 Rs. Crores Particulars FY 12 FY 13 Total Amount of asset transferred to CWIP -1.02 Wt. Av Rate of Depreciation* (as permitted by MPERC) 4.62% 4.53% Amount of Depreciation -0.05-0.05-0.09 *For FY 13 Wt. Average is considered as per asset cum depreciation register for FY 13 already submitted before Hon'ble Commission. SGTPS PH-3 : The Gross Block of SGTPS PH-3 (500 MW) as on COD dated 28.08.2008 amounting to Rs.1956.94 Crores. The Hon ble Commission in the final tariff order of SGTPS PH-3 (500 MW) has considered Gross block of Rs. 1845.40 Crores after deduction of Rs. 93.04 Crores towards Liquidated damages and Rs. 18.50 towards Exchange Rate variation. The total deduction comes to Rs.Rs.111.54 Crores. In the Financial year 2013-14 the amount of LD has been settled with BHEL which amounts to Rs. 82.72 Crores and the amount of Exchange Rate variation remains unaltered i.e. 18.50 Crores. The amount of LD retained as a result of settlement same has been reflected under the head Non Tariff Income and deducted from Fixed Cost. 76
In light of above, the depreciation of SGTPS PH-3 (500 MW) needs to be revised from FY 09 to FY 13 on account of adjustment of LD/ERV and further adjustment/deductions carried out in FY14 with retrospective effect. The same is worked out as under:- Table No. 4.4.13.2 SGTPS PH-3 Rs Crores Particulars FY 09 (from CoD FY 10 FY 11 FY 12 FY 13 Total onwards) Opening Gross Block (without deduction of 1956.94 1938.44 1973.01 1986.93 2047.24 1956.94 LD/ERV) Assets Added 0.00 34.57 13.92 61.13 36.79 146.42 Adjustments -0.62-0.62 Assets deduction (now considered) -18.50-0.20-28.70-47.40 Closing Gross Block 1938.44 1973.01 1986.93 2047.24 2055.34 2055.34 Average Gross Block 1947.69 1955.73 1979.97 2017.09 2051.29 2006.14 Wt. Av Rate of Depreciation (as permitted by MPERC) 3.58% 5.13% 5.17% 5.17% 5.08% Days in operation 216 365 365 366 365 Amount of Depreciation(A) 41.26 100.33 102.36 104.28 104.21 452.45 Depreciation allowed by MPERC(B)** 39.10 95.56 97.55 99.48 106.86 438.55 Balance (A-B) 2.16 4.77 4.81 4.80-2.65 13.90 *For FY 13 Wt. Av rate and depreciation claimed is considered as per asset cum depreciation register for FY 13 already submitted before Hon'ble Commission STPS PH-2 & 3 : In FY 2010-11 MPPGCL has claimed asset addition amounting to Rs. 31.92 Crores and the same was permitted by Hon ble Commission. The said capitalization includes an asset of Rs. 5.15 Crores which is transferred to STPS PH-4 in FY 13-14 and the same was reflected in the audited books of account for FY13-14. Accordingly the depreciation on said assets needs to be reversed for FY11, FY12 & FY13. The same is worked out as under: 77
Table No. 4.4.13.2 STPS PH-2&3 Rs Crores Particulars FY 11 FY 12 FY 13 Total Amount of asset transferred to STPS PH-4-5.15 Wt. Av Rate of Depreciation (as permitted by MPERC) 4.84% 5.33% 5.50% 0.16 Amount of Depreciation -0.25-0.27-0.28-0.81 *For FY 13 Wt. Avg. rate is considered as per asset cum depreciation register for FY 13 already submitted before Hon'ble Commission Balance Depreciation of STPS Sarni: 4.4.14. In the earlier True up petitions the depreciation was claimed by the MPPGCL was on the pro-rata basis considering the days of commercial operation of assets during the year. However, the Hon ble Commission in its orders for such petitions has permitted depreciation on the average of Opening and Closing Gross Block of the Fixed Assets for the respective years. Considering Wt. Average rate of Depreciation. Accordingly this difference between the accumulated depreciation of MPPGCL and permitted by Hon ble Commission. In case of STPS Sarni the accumulated depreciation as per MPPGCL has reached upto 90% of Gross Block and accordingly no depreciation remain to be claimed as on 31-3-2013. However considering the Accumulated depreciation as per as True up order for FY 12 dated 01.10.2014 the balance depreciation of STPS works out as under: Table No. 4.4.14.1 Particulars STPS Total Rs. Crores STPS PH-1 STPS PH- 2&3 A Accumulated Dep. as on 31-3-2012 as per True up order for FY 2011-12 564.58 33.56 531.03 B Gross Block as on 31-3-2012 673.33 40.02 633.31 C % of Accumulated Depreciation (A/B) 83.85% 83.85% 83.85% D Assets of unit 3&5 of STPS-1 decommissioned in FY 13-8.06-8.06 78
Particulars STPS Total STPS PH-1 STPS PH- 2&3 E Accumulated Dep. amount of unit 3&5 of STPS-1 decommissioned in FY 13-6.76-6.76 F Depreciation for FY 13 as claimed in True up 32.73 0.93 31.8 petition for FY 13 G Gross Block as on 31-3-2013(B+D) 665.27 31.96 633.31 H Accumulated Depreciation as on 31-3-2013(A+E+F) 590.55 27.73 562.83 I % of Accumulated Depreciation (H/G) 88.77% 86.76% 88.87% J 90% of Gross Block (G x 90%) 598.74 28.76 569.98 K Balance Depreciation (J-H) 8.19 1.04 7.16 4.4.15. Considering the above, the adjusted depreciation for FY 2013-14 works out as under:- Table No. 4.4.15.1 S.No. Station Depreciation for FY 13 Rs. Crores Depreciation adjustments Total & balance depreciation 1 ATPS PH-2 18.17 18.17 2 ATPS PH-3 54.66-0.09 54.56 3 ATPS Chachai 72.83-0.09 72.74 4 STPS PH-1 0.00 1.04 1.04 5 STPS PH-2&3 0.00 6.35 6.35 6 STPS Total 0.00 7.38 7.38 7 SGTPS PH-1&2 70.14 70.14 8 SGTPS-PH-3 106.34 13.90 120.24 9 SGTPS Total 176.48 13.90 190.38 10 Total Thermal 249.31 21.19 270.50 11 Gandhi Sagar 0.09 0.09 12 Pench 1.92 1.92 13 Rajghat 3.65 3.65 14 Bargi 1.81 1.81 15 Bansagar PH-1,2&3 58.06 58.06 16 Madhikheda 11.26 11.26 17 Birsinghpur 2.39 2.39 18 Total Hydro 79.18 0.00 79.18 19 HQ 0.17 0.17 Total 328.65 21.19 349.84 79
4.4.16. The depreciation claimed in the instant True up petition before applying Normative Annual Plant Availability Factor (NAPAF) works out as Rs.349.84 Crores. Accordingly the True up amount on account of Depreciation works out as Rs.5.36 Crores, the same is detailed as under:- S.No. Depreciation Claimed for FY 2013-14 (before applying NAPAF) Table No. 4.4.16.1 Station As per MYT order in Rs. Crores MPPGCL as per norms Diff. 1 ATPS PH-2 6.08 18.17 12.09 2 ATPS PH-3 44.50 54.56 10.06 3 ATPS Chachai 50.58 72.74 22.16 4 STPS PH-1 1.16 1.04-0.12 5 STPS PH-2&3 21.28 6.35-14.93 4 STPS Total 22.44 7.38-15.06 5 SGTPS PH-1&2 91.53 70.14-21.39 6 SGTPS-PH-3 100.09 120.24 20.15 7 SGTPS Total 191.62 190.38-1.24 8 Total Thermal 264.64 270.50 5.86 9 Gandhi Sagar 0.23 0.09-0.14 10 Pench 1.51 1.92 0.41 11 Rajghat 4.03 3.65-0.38 12 Bargi 2.96 1.97-0.99 13 Bansagar PH-1,2&3 58.22 58.06-0.16 14 Madhikheda 11.22 11.26 0.04 15 Birsinghpur 1.67 2.39 0.72 16 Total Hydro 79.84 79.34-0.50 Total 344.48 349.84 5.36 80
4.4.17. The True up amount on account of depreciation after applying NAPAF works out as under:- Depreciation Claimed for FY 2013-14 (at Actual Availability) Table No. 4.4.14.1 in Rs. Crores S. No. Station As per MYT order MPPGCL as per norms Diff. 1 ATPS PH-2 6.08 16.81 10.73 2 ATPS PH-3 44.50 58.00 13.50 3 ATPS Chachai 50.58 74.81 24.23 4 STPS PH-1 1.16 0.75-0.41 5 STPS PH-2&3 21.28 4.60-16.68 6 STPS Total 22.44 5.35-17.09 7 SGTPS PH-1&2 91.53 65.63-25.90 8 SGTPS-PH-3 100.09 129.26 29.17 9 SGTPS Total 191.62 194.89 3.27 10 Total Thermal 264.64 275.05 10.41 11 Gandhi Sagar 0.23 0.10-0.13 12 Pench 1.51 1.94 0.43 13 Rajghat 4.03 2.24-1.79 14 Bargi 2.96 2.03-0.93 15 Bansagar PH-1,2&3 58.22 56.82-1.40 16 Madhikheda 11.22 9.54-1.68 17 Birsinghpur 1.67 2.40 0.73 18 Total Hydro 79.84 75.07-4.77 Total 344.48 350.12 5.64 4.4.18. MPPGCL humbly request the Hon ble Commission to kindly permit the same. 81
4.5 Interest and Finance Charges- 4.5.1. The Normative Power Station wise opening loan balances as on 1.4.2013 are tabulated as under:- Table No. 4.5.1.1 in Rs. Crores S.No. Stations Opening Bal 1-4-2012 Receipts Claimed in FY 13 in proportion to assets capitalized Repayment (Dep. FY 13) Opening Bal 1-4-2013 1 ATPS PH-2 60.62 4.04 17.23 47.44 2 ATPS PH-3 661.45 44.57 52.02 654.01 3 STPS 0.00 0.00 0.00 4 SGTPS PH-1&2 0.00 0.00 0.00 5 SGTPS PH-3 994.92 37.12 106.86 925.18 6 Total Thermal 1716.99 85.73 176.10 1626.62 7 Bansagar 1,2&3 62.24 51.08 11.16 8 Madhikheda HPS 79.32 11.25 68.07 9 Total Hydro 141.56 0.00 62.33 79.23 Total 1858.55 85.73 238.43 1705.85 4.5.2. On account of assets deduction made at various power stations as detailed in Chapter-Addl. Capitalization/de-capitalization & funding thereof, the loan balances are proportionately reduced. The power station wise detail of reduction made in loan balances are detailed hereunder: Table No. 4.5.2.1 in Rs. Crores S.No. Stations FY 14 1 ATPS PH-3 1.02 2 SGTPS PH-3 28.90 Total 29.92 82
4.5.3. Accordingly the Adjusted Normative loan Balance as on 01.04.2013 works out as under: Table No. 4.5.3.1 S.No. Stations Opening Bal 1-4-2013 in Rs. Crores Loan Adjustment Adjusted Opening Bal. as on 01-04-2013 1 ATPS PH-2 47.44 47.44 2 ATPS PH-3 654.01-1.02 652.99 3 STPS 0.00 0.00 4 SGTPS PH-1&2 0.00 0.00 5 SGTPS PH-3 925.18-28.90 896.28 6 Total Thermal 1626.62-29.92 1596.71 7 Bansagar 1,2&3 11.16 11.16 8 Madhikheda HPS 68.07 68.07 9 Total Hydro 79.23 0.00 79.23 Total 1705.85-29.92 1675.94 S.No. 4.5.4. During FY 13 Loan drawls were made in existing as well as in new projects. The details of Power Station wise loan drawls in existing / new projects claimed in the instant petition is detailed in the Chapter 4.3 Additional Capitalization/ de-capitalization & Funding thereof. The same is summarized as under : Table No. 4.5.4.1 Stations Loan Receipts Receipts upto 1-04-2013* Receipts in FY 14 in Rs. Crores Total 1 ATPS PH-2 6.79 2.07 8.86 2 ATPS PH-3 10.26 20.79 31.05 3 SGTPS PH-3 201.64 20.08 221.72 4 Total Thermal 218.69 42.93 261.62 5 HQ 1.18 0.00 1.18 *Not cognized by Hon ble Commission Total 219.87 42.93 262.80 83
4.5.5. Considering above, the Power station wise Closing and Average balances of loan considering the repayment equal to depreciation charged during FY 2013-14 as per proviso 23.3 of MPERC Regulation 2014 are indicated below:- Power Station wise Closing & Average Balances Table No. 4.5.5.1 in Rs. Crores. Stations Adjusted Opening Bal 1-4-2013 Loan Receipts Claimed Principal repayment (Dep) Closing Bal 31-03-2013 Av Bal ATPS PH-2 47.44 8.86 18.17 38.12 42.78 ATPS PH-3 652.99 31.05 54.56 629.47 641.23 STPS Total 0.00 0.00 0.00 0.00 0.00 SGTPS PH-1&2 0.00 0.00 0.00 0.00 0.00 SGTPS PH-3 896.28 221.72 120.24 997.76 947.02 Total Thermal 1596.71 261.62 192.97 1665.36 1631.03 Bansagar PH-1,2&3 11.16 0.00 11.16 0.00 5.58 Madhikheda 68.07 0.00 11.26 56.81 62.44 Total Hydro 79.23 0.00 22.42 56.81 68.02 HQ 1.18 0.17 1.01 0.51 Total 1675.94 262.80 215.56 1723.18 1699.56 Note: Principal repayment restricted to Opening Balance & receipts during the year. 4.5.6. Station wise weighted average rate of Interest for FY 2013-14 are indicated below:- Table No. 4.5.6.1 Rate of Interest of Loans FY 2013-14 Particulars PFC LIC REC HUDCO GoMP Working Capital Loan Total 1 ATPS PH-2 12.05% 14.50% 16.50% 12.99% 2 ATPS PH-3 11.69% 16.50% 11.81% 3 STPS Sarni 12.97% 12.50% 16.50% 16.50% 13.10% 84
Rate of Interest of Loans FY 2013-14 Particulars PFC LIC REC HUDCO GoMP Working Capital Loan Total 4 SGTPS PH 1&2 12.92% 8.50% 14.50% 16.50% 10.48% 5 SGTPS PH 3 11.96% 16.50% 12.11% 6 SSTTP PH-1 12.96% 12.96% 7 Total Thermal 12.73% 8.50% 0.00% 12.50% 16.24% 16.50% 12.74% 8 Gandhi Sagar 0.00% 16.50% 16.50% 9 R.P. Sagar 0.00% 0.00% 10 J Sagar 0.00% 0.00% 11 Pench 0.00% 16.50% 16.50% 12 Rajghat 0.00% 16.50% 16.50% 13 Bargi 12.06% 16.50% 16.45% 14 Bansagar 12.10% 8.50% 10.50% 16.50% 12.15% 15 Madhikheda 10.45% 10.50% 16.50% 10.84% 16 Birsinghpur 0.00% 16.50% 16.50% 17 Total Hydro 10.79% 0.00% 8.50% 0.00% 10.50% 16.50% 12.39% 18 HQ 10.50% 10.50% Total 12.72% 8.50% 8.50% 12.50% 15.87% 16.50% 12.73% 4.5.7. The detailed Calculation in respect of Weighted Average Rate of Interest along with supporting documents is annexed as Annexure-20 in Additional Supporting Documents being submitted before Hon ble Commission separately. 4.5.8. The details in respect of actual loans balances as per Audited Books of Accounts of MPPGCL for FY 2013-14 (i.e. Opening Balance, Drawls, Repayments & Closing Balance) indicating the loans under running projects & CWIP is annexed as Annexure-21 as Additional Supporting Documents being submitted before Hon ble Commission separately. 85
4.5.9. Considering above the Power station wise Interest charges for FY 2013-14 worked out in accordance to the proviso 23 of the Generation Tariff Regulations, 2012 by applying weighted average rate of interest on loans are indicated below:- Station wise Interest on Loans Table No. 4.5.9.1 in Rs. Crores. Stations Av Bal Wt. Av.Rate of Intt. Interest Amount ATPS PH-2 42.78 12.99% 5.56 ATPS PH-3 641.23 11.81% 75.72 STPS Total 0.00 13.10% 0.00 SGTPS PH-1&2 0.00 10.48% 0.00 SGTPS PH-3 947.02 12.11% 114.72 Total Thermal 1631.03 196.00 Bansagar PH-1,2&3 5.58 12.15% 0.68 Madhikheda 62.44 10.84% 6.77 Total Hydro 68.02 7.44 HQ 0.51 10.50% 0.05 Total 1699.56 203.50 Interest Adjustments 4.5.10. The Power station wise adjustments in Interest amount to be reversed/claimed is detailed hereunder ATPS PH-3: In FY 2011-12, MPPGCL has claimed additional capitalization of Rs.81.24 Crores and the same was permitted by Hon ble Commission. In the Financial year FY 2013-14 asset amounting to Rs. 1.02 Crores out of said capitalization has been transferred back to CWIP (Capital Work in Progress) and the same was reflected in the audited books of account of 86
FY 2013-14. As such asset was funded through loan component the interest earlier claimed on during FY 2012 and FY 2013 needs to be reversed. The same is worked out as under:- Table No. 4.4.10.1 Rs. Crores Particulars FY 12 FY 13 Total Amount of loan reduction 1.02 Wt.Av Rate of Interest* (as permitted by MPERC) 11.53% 11.57% Amount of Interest 0.12 0.12 0.23 *For FY 13 Wt. Average rate of interest is considered as submitted in True Up Petition for FY 13. SGTPS PH-3: In FY 2011-12, MPPGCL has claimed asset addition amounting to Rs.61.13, and the same was permitted by Hon ble Commission. In the Financial year FY 2013-14 asset amounting to Rs. 0.20 Crores out of said capitalization has been transferred back to STPS PH-4 and the same was reflected in the audited books of account of FY 2013-14. As such asset was funded through loan component the interest earlier claimed on during FY 2011-12 and FY 2012-13 needs to be reversed. The same is worked out as under:- Table No. 4.4.10.3 Rs. Crores Particulars FY 12 FY 13 Total Amount of loan reduction 0.20 Wt.Av Rate of Interest* (as permitted by MPERC) 9.92% 11.35% Amount of Interest 0.02 0.02 0.04 *For FY 13 Wt.Av. rate of interest is considered as submitted in True Up Petition for FY 13. Similarly, in the True up petition for FY 2012-13, MPPGCL has claimed additional capitalization of Rs.37.12 Crores being funded from loan component. In the Financial year FY 2013-14 asset amounting to Rs. 28.90 Crores out of said capitalization has been transferred back to CWIP (Capital Work in Progress) and the same was reflected in the audited 87
books of account of FY 2013-14. As such asset was funded through loan component the interest earlier claimed on during FY 2012-13 needs to be reversed. The same is worked out as under:- Table No. 4.4.10.4 Rs. Crores Particulars FY 13 Amount of loan reduction 28.90 Wt.Av Rate of Interest* (as permitted by MPERC) 11.35% Amount of Interest 3.28 *For FY 13 Wt.Av Rate of interest is considered as submitted in True Up Petition for FY 13. 4.5.11. Considering the above prior period adjustments, the adjusted Interest on loan for FY 2013-14 works out as under: Table No. 4.4.11.1 Stations Interest amount for FY 14 Interest adjustments Rs. Crores Total ATPS PH-2 5.56 5.56 ATPS PH-3 75.72-0.23 75.49 STPS Total 0.00 0.00 SGTPS PH-1&2 0.00 0.00 SGTPS PH-3 114.72-3.32 111.40 Total Thermal 196.00-3.56 192.44 Bansagar PH-1,2&3 0.68 0.68 Madhikheda 6.77 6.77 Total Hydro 7.44 0.00 7.44 HQ 0.05 0.05 Total 203.50-3.56 199.94 88
4.5.12. Interest on Excess Equity: The Proviso 21.2 of MPERC Generation Tariff Regulation 2014 provides that where Equity actually employed is in excess of 30%, the amount of Equity for the purpose of tariff shall be limited to 30% and the balance amount shall be considered as loan. Accordingly the Normative excess equity balance as on 01.04.2013 is tabulated hereunder: Excess Equity as on 01.04.2013 Table No. 4.5.12.1 in Rs. Crores. Station Excess Equity as on 1-4-2013 (Op. Bal) 1 ATPS PH-2 7.44 2 ATPS PH-3 33.90 3 STPS Total 0.00 4 SGTPS PH-1&2 4.11 5 SGTPS PH-3 53.04 6 Total Thermal 98.49 7 Gandhi Sagar 0.00 8 Pench 0.00 9 Rajghat 0.00 10 Bargi 0.00 11 Bansagar PH-1,2 &3 72.94 12 Madhikheda 21.69 13 Birsinghpur 0.00 14 Total Hydro 94.63 15 HQ 0.00 Total 193.12 89
4.5.13. The additions made to excess Equity on account of additional Table No. 4.5.13.1 Power Stations capitalization during FY 2012-13 is worked out as under: Asset Added Loan Funding Equity/ Internal Resources A B C Max. Equity 30% of Gross Block D= (Ax30%) in Rs. Crores Normative Equity E= C or D (W.E.L)# Balance excess equity Equity F= C - E 1 ATPS PH-2 0.75 8.86 0.00 0.23 0.00 0.00 2 ATPS PH-3 7.28 31.05 0.00 2.18 0.00 0.00 3 STPS Total 0.00 0.00 0.00 0.00 0.00 0.00 4 SGTPS PH-1&2 0.15 0.00 0.15 0.04 0.04 0.10 5 SGTPS PH-3 30.04 221.72 0.00 9.01 0.00 0.00 6 Total Thermal 38.22 261.62 0.15 11.47 0.04 0.10 7 Gandhi Sagar 0.01 0.00 0.01 0.00 0.00 0.01 8 Pench 1.87 0.00 1.87 0.56 0.56 1.31 9 Bansagar PH-1,23 0.23 0.00 0.23 0.07 0.07 0.16 10 Total Hydel 2.12 0.00 2.12 0.64 0.64 1.48 11 HQ & S&I* 1.81 1.18 0.63 0.54 0.54 0.09 Total 42.15 262.80 2.89 12.64 1.22 1.67 *Asset addition from FY-06(10M) to FY-13 has been considered. # W.E.L. Which ever less. # 4.5.14. Power station wise Closing and Average balances of excess equity Table No. 4.5.14.1 Station considering the repayment equal to balance depreciation charged during FY12 under proviso 23.3 of M.P. Regulation 2014 are indicated below: Excess Equity as on 1-4-2013 (Op.Bal) Excess Equity addition due to Assets addition Repayment equal to balance dep. For FY 14 Excess Equity as on 31-3-2014 (Cl. Bal) in Rs. Crores Average Equity 1 ATPS PH-2 7.44 0.00 0.00 7.44 7.44 2 ATPS PH-3 33.90 0.00 0.00 33.90 33.90 3 STPS 0.00 0.00 0.00 0.00 0.00 4 SGTPS PH-1&2 4.11 0.10 4.21 0.00 2.05 5 SGTPS PH-3 53.04 0.00 0.00 53.04 53.04 6 Total Thermal 98.49 0.10 4.21 94.38 96.43 90
Station Excess Equity as on 1-4-2013 (Op.Bal) Excess Equity addition due to Assets addition Repayment equal to balance dep. For FY 14 Excess Equity as on 31-3-2014 (Cl. Bal) Average Equity 7 Gandhi Sagar 0.00 0.01 0.01 0.00 0.00 8 Pench 0.00 1.31 1.31 0.00 0.00 9 Rajghat 0.00 0.00 0.00 0.00 0.00 10 Bargi 0.00 0.00 0.00 0.00 0.00 11 Bansagar PH-1,2 &3 72.94 0.16 46.90 26.20 49.57 12 Madhikheda 21.69 0.00 0.00 21.69 21.69 13 Birsinghpur 0.00 0.00 0.00 0.00 0.00 14 Total Hydro 94.63 1.48 48.22 47.90 71.26 15 HQ 0.00 0.09 0.00 0.09 0.04 Total 193.12 1.67 52.43 142.36 167.74 4.5.15. Accordingly power station wise Average excess Equity and interest thereon after applying the overall weighted average Rate of Interest (as indicated in table 4.5.6.1) works out as under: Intt.on Excess Equity Table No. 4.5.15.1 in Rs. Crores Station Average Equity Intt. On Excess equity @ 12.73% 1 ATPS PH-2 7.44 0.95 2 ATPS PH-3 33.90 4.32 3 STPS Total 0.00 0.00 4 SGTPS PH-1&2 2.05 0.26 5 SGTPS PH-3 53.04 6.75 6 Total Thermal 96.43 12.28 7 Gandhi Sagar 0.00 0.00 8 Pench 0.00 0.00 9 Rajghat 0.00 0.00 10 Bargi 0.00 0.00 11 Bansagar PH-1,2 &3 49.57 6.31 91
Station Average Equity Intt. On Excess equity @ 12.73% 12 Madhikheda 21.69 2.76 13 Birsinghpur 0.00 0.00 14 Total Hydro 71.26 9.07 15 HQ 0.04 0.01 Total 167.74 21.35 4.5.16. The total amount of interest on loan and interest on equity works out as under: Table No. 4.5.16.1 Station Intt. on Loan + Intt. on Excess equity Intt on Loan Intt.on Excess Equity in Rs. Crores Total 1 ATPS PH-2 5.56 0.95 6.50 2 ATPS PH-3 75.49 4.32 79.80 3 STPS Total 0.00 0.00 0.00 4 SGTPS PH-1&2 0.00 0.26 0.26 5 SGTPS PH-3 111.40 6.75 118.15 6 Total Thermal 192.44 12.28 204.72 7 Gandhi Sagar 0.00 0.00 0.00 8 Pench 0.00 0.00 0.00 9 Rajghat 0.00 0.00 0.00 10 Bargi 0.00 0.00 0.00 11 Bansagar PH-1,2 &3 0.68 6.31 6.99 12 Madhikheda 6.77 2.76 9.53 13 Birsinghpur 0.00 0.00 0.00 14 Total Hydro 7.44 9.07 16.51 15 HQ 0.05 0.01 0.06 Total 199.94 21.35 221.29 92
4.5.17. The Hon ble Commission vide MYT order for FY 14 to FY 16 read with tariff Order dated 09.07.2013 for Segregation of tariff of STPS Complex has determined the interest & Finance Charges (including Intt. on excess equity) as Rs. 188.07 Crores. Same is tabulated as under: Interest Charges as per MYT order Table No. 4.5.17.1 S.No. Station in Rs. Crores As per MYT Order 1 ATPS PH-2 5.74 2 ATPS PH-3 69.25 3 STPS 0.00 4 SGTPS PH-1&2 0.00 5 SGTPS PH-3 103.01 6 Total Thermal 178.00 7 Gandhi Sagar 0.00 8 Pench 0.00 9 Rajghat 0.00 10 Bargi 0.00 11 Bansagar PH-1,2&3 1.04 12 Madhikheda 9.03 13 Birsinghpur 0.00 14 Total Hydro 10.07 15 HQ 0.00 Total 188.07 93
4.5.18. The interest charges of HQ is nominal as such has been linked to the nearest power station i.e. Bargi HPS for simplicity. 4.5.19. Considering above, the interest charges(including Intt. on excess equity) in accordance to the proviso 23 of the Generation Tariff Regulation 2012 worked by MPPGCL amounts to Rs. 221.29 Crores (including Intt. on excess Equity) and the True Up amount on account of interest charges (including Intt. on excess equity) works out as Rs. Crores before applying Normative Plant availability factor (NAPAF). Same is tabulated hereunder: Table No. 4.5.19.1 S.No. True Up Amount (before applying NAPAF) Station As per MYT Order in Rs. Crores MPPGCL as per norms Diff True up Amt 1 ATPS PH-2 5.74 6.50 0.76 2 ATPS PH-3 69.25 79.80 10.55 3 STPS Total(PH1,2&3) 0.00 0.00 0.00 4 SGTPS PH-1&2 0.00 0.26 0.26 5 SGTPS PH-3 103.01 118.15 15.14 6 Total Thermal 178.00 204.72 26.72 7 Gandhi Sagar 0.00 0.00 0.00 8 Pench 0.00 0.00 0.00 9 Rajghat 0.00 0.00 0.00 10 Bargi 0.00 0.06 0.06 11 Bansagar PH-1,2&3 1.04 6.99 5.95 13 Madhikheda 9.03 9.53 0.50 14 Birsinghpur 0.00 0.00 0.00 15 Total Hydro 10.07 16.57 6.50 Total 188.07 221.29 33.22 94
4.5.20. After applying availability Factor the true up amount towards interest and finance charges (including Intt. on excess equity) works out as under: Table No. 4.5.20.1 S.No. True Up Amount (at Actual Availability) Station As per MYT Order in Rs. Crores. MPPGCL as per norms Diff True up Amt 1 ATPS PH-2 5.74 6.01 0.27 2 ATPS PH-3 69.25 84.83 15.58 3 STPS Total(PH1,2&3) 0.00 0.00 0.00 4 SGTPS PH-1&2 0.00 0.24 0.24 5 SGTPS PH-3 103.01 127.02 24.01 6 Total Thermal 178.00 218.11 40.11 7 Gandhi Sagar 0.00 0.00 0.00 8 Pench 0.00 0.00 0.00 9 Rajghat 0.00 0.00 0.00 10 Bargi 0.00 0.06 0.06 11 Bansagar PH-1,2&3 1.04 6.84 5.80 12 Madhikheda 9.03 8.07-0.96 13 Birsinghpur 0.00 0.00 0.00 14 Total Hydro 10.07 14.97 4.90 Total 188.07 233.08 45.01 4.5.21. MPPGCL humbly requests to kindly permit the same. 95
4.6 Interest on Working Capital 4.6.1. The Working capital has been calculated in Hon ble Commissions order dated 01.04.2013 in accordance to clause 37 & 51 of Principal Tariff Regulations, 2012. Accordingly cost of 45 days/2 months cost of coal, 2 Months cost of secondary oil, O&M expenditure for 1 month, 20% of Normative O&M Expenses as maintenance spares for thermal and 15% of Normative O&M Expenses as maintenance spares for Hydro and 2 months receivables has been considered for calculating interest on Working Capital. 4.6.2. The Power Station wise Working Capital approved by MPERC vide Tariff order dated 01.04.2013 at page 62 to 65 is detailed in the table below:- Table No. 4.6.2.1 in Rs. Crores S.No. Station Working Capital for FY-14 1 ATPS PH-2 88.84 2 ATPS PH-3 93.24 3 STPS 511.58 4 SGTPS PH-1&2 626.44 5 SGTPS PH-3 388.88 6 Total Thermal 1708.98 7 Gandhi Sagar 5.41 8 Pench 8.37 9 Rajghat 3.41 10 Bargi 5.33 11 Bansagar 1,2&3 38.58 12 Birsinghpur 1.62 13 Madhikheda 7.41 14 Total Hydro 70.13 Total 1779.11 96
4.6.3. The Normative Interest on Working Capital as approved by Hon ble Commission in the Tariff order is reproduced below before applying Actual Availability:- Table 4.6.3.1 S.No. Station As per MPERC Order As considered by MPPGCL on Norms in Rs. Crores Diff. 1 ATPS PH-2 11.99 11.99 0.00 2 ATPS PH-3 12.59 12.59 0.00 3 STPS 69.06 69.06 0.00 4 SGTPS PH-1&2 84.57 84.57 0.00 5 SGTPS PH-3 52.50 52.50 0.00 6 Total Thermal 230.71 230.71 0.00 7 Gandhi Sagar 0.73 0.73 0.00 8 Pench 1.13 1.13 0.00 9 Rajghat 0.46 0.46 0.00 10 Bargi 0.72 0.72 0.00 11 Bansagar 1,2&3 5.21 5.21 0.00 12 Birsinghpur 0.22 0.22 0.00 13 Madhikheda 1.00 1.00 0.00 14 Total Hydro 9.47 9.47 0.00 Total 240.18 240.18 0.00 97
4.6.4. Normative Interest on Working Capital as approved by Hon ble Commission after applying Actual Availability works out as under:- Table 4.6.4.1 in Rs. Crores S.No. Station As per MPERC Order As considered by MPPGCL on Norms Diff. Rs. Crores. 1 ATPS PH-2 11.99 11.09-0.90 2 ATPS PH-3 12.59 13.38 0.79 3 STPS 69.06 50.05-19.02 4 SGTPS PH-1&2 84.57 79.14-5.43 5 SGTPS PH-3 52.50 56.44 3.94 6 Total Thermal 230.71 210.09-20.62 7 Gandhi Sagar 0.73 0.76 0.03 8 Pench 1.13 1.14 0.01 9 Rajghat 0.46 0.28-0.18 10 Bargi 0.72 0.74 0.02 11 Bansagar 1,2&3 5.21 5.10-0.11 12 Birsinghpur 0.22 0.22 0.00 13 Madhikheda 1.00 0.85-0.15 14 Total Hydro 9.47 9.09-0.37 Total 240.18 219.19-20.99 4.6.5. MPPGCL humbly request Hon ble Commission to kindly permit the same. 98
4.7 RETURN ON EQUITY:- 4.7.1. The proviso 21 of MPERC (Terms and Conditions for determination of Generation Tariff) Regulations, 2012 {RG-26(II) of 2012} specifies debt Equity ratio of 70:30 of capital cost for the purpose of determination of Return on Equity. 4.7.2. In accordance with above, the normative Equity as on 01.04.2013 is detailed as under:- Table No.4.7.2.1 Normative Equity as on 01.04.2013 Station ( in Rs. Crores) Normative Equity balance for ROE as on 1-4-2013 1 ATPS PH-2 38.41 2 ATPS PH-3 246.81 3 STPS PH-1 9.42 4 STPS PH-2&3 186.71 5 SGTPS PH-1&2 649.12 6 SGTPS PH-3 571.96 7 Total Thermal 1702.44 8 Gandhi Sagar 3.14 9 Pench 28.88 10 Rajghat 24.84 11 Bargi 26.11 12 Bansagar PH-1,2&3 391.84 13 Madhikheda 45.66 14 Birsinghpur 15.64 15 Total Hydro 536.11 Total 2238.55 99
4.7.3. On account of Asset additions at the existing stations as well as new projects, there is infusion of Equity during FY 2013-14. The details regarding asset additions and funding thereof during FY 2013-14 were already provided in the Chapter-4.3 Additional Capitalization/decapitalization and funding thereof. The table indicating the source of funding towards additional capitalization along with the calculation of normative Equity addition during FY 2013-14 is detailed as follows:- Table No.4.7.3.1 Power Stations Normative Equity addition during FY 2013-14 Asset Added Funding Equity/ Loan Internal Resources A B C ( in Rs. Crores) Max. Equity 30% of Gross Block D= (Ax30%) Normative Equity E= C or D (W.E.L)# Balance excess Equity F= C - E 1 ATPS PH-2 0.75 8.86 0.00 0.23 0.00 0.00 2 ATPS PH-3 7.28 31.05 0.00 2.18 0.00 0.00 3 STPS Total 0.00 0.00 0.00 0.00 0.00 0.00 4 SGTPS PH-1&2 0.15 0.00 0.15 0.04 0.04 0.10 5 SGTPS PH-3 30.04 221.72 0.00 9.01 0.00 0.00 6 Total Thermal 38.22 261.62 0.15 11.47 0.04 0.10 7 Gandhi Sagar 0.01 0.00 0.01 0.00 0.00 0.01 8 Pench 1.87 0.00 1.87 0.56 0.56 1.31 9 Bansagar PH-1,23 0.23 0.00 0.23 0.07 0.07 0.16 10 Total Hydel 2.12 0.00 2.12 0.64 0.64 1.48 11 HQ & S&I* 1.81 1.18 0.63 0.54 0.54 0.09 Total 42.15 262.80 2.89 12.64 1.22 1.67 * Addition capitalization from FY 06 to FY 14 has been claimed. # W.E.L. Which ever less. 100
4.7.4. In the Financial Year 2013-14, the unit No.2&4 of STPS PH-1was decommissioned on 05.12.2013 and unit No.1 was decommissioned on 07.01.2014. The assets towards common services at STPS Sarni pertaining to PH-1 remains part of Gross Block. Accordingly the Assets of Unit No.1,2 & 4 of STPS PH-1 have been reduced from the Gross Block of STPS PH-1 in the instant True up petition as per the Audited Books of Accounts for FY 2013-14.The same is detailed in Chapter of Additional capitalization/decapitalization & funding thereof. In reference to above, the amount of Equity allocated to STPS PH-1 has been adjusted in proportion to assets removed from the Gross Block of STPS PH-1. The same is detailed as under: Table No.4.7.4.1 Particulars ( in Rs. Crores) Amount 1 Gross Block of STPS as on 01-04-2013 31.96 2 Normative Equity of STPS as on 31-03-2013 9.42 3 Assets decommissioned during FY 2013-14 28.93 4 5 Normative Equity in Proportion to assets decommissioned (2/1x3) Balance Equity to be considered for RoE towards retained assets (2-4) 8.53 0.89 4.7.5. Taking cognizance of above, the normative Equity as on 31.03.2014 along Station with the average Equity works out as under:- Table No.4.7.5.1 Normativ e Equity for RoE as on 1-4-2013 Equity Adjusted after Decomm. of 3 units of STPS PH-1 Normative Equity Addition due to Asset Addition ( in Rs. Crores) Total Normative Equity for RoE as on 31-3-2014 Average Equity 1 ATPS PH-2 38.41 0.00 38.41 38.41 2 ATPS PH-3 246.81 0.00 246.81 246.81 3 STPS PH-1 9.42-8.53 0.00 0.89 5.16 4 STPS Ph-2&3 186.71 0.00 186.71 186.71 5 SGTPS PH-1&2 649.12 0.04 649.17 649.15 6 SGTPS PH-3 571.96 0.00 571.96 571.96 7 Total Thermal 1702.44-8.53 0.04 1693.96 1698.20 101
Station Normativ e Equity for RoE as on 1-4-2013 Equity Adjusted after Decomm. of 3 units of STPS PH-1 Normative Equity Addition due to Asset Addition Total Normative Equity for RoE as on 31-3-2014 Average Equity 8 Gandhi Sagar 3.14 0.00 3.14 3.14 9 Pench 28.88 0.56 29.44 29.16 10 Rajghat 24.84 0.00 24.84 24.84 11 Bargi 26.11 0.00 26.11 26.11 12 Bansagar PH-1,2&3 391.84 0.07 391.91 391.88 13 Madhikheda 45.66 0.00 45.66 45.66 14 Birsinghpur 15.64 0.00 15.64 15.64 15 Total Hydro 536.11 0.00 0.64 536.75 536.43 16 HQ 0.54 0.54 0.27 Total 2238.55-8.53 1.22 2231.25 2234.90 4.7.6. As per proviso 21 of MPERC (Terms and Conditions for determination of Generation Tariff) Regulations, 2012 {RG-26(I) of 2012} the Return on Equity is to be computed at a base rate of 15.5% which is to be grossed up by the tax rate. Since MPPGCL has not paid any Corporate tax during FY-14, MPPGCL has worked out the Return on Equity on pre tax basis at a base rate of 15.5% as tabulated below:- Return on Equity for FY 2013-14 Table No.4.7.6.1 ( in Rs. Crores) Station Average Equity RoE @ 15.5% 1 ATPS PH-2 38.41 5.95 2 ATPS PH-3 246.81 38.26 3 STPS PH-1 5.16 0.80 4 STPS Ph-2&3 186.71 28.94 5 SGTPS PH-1&2 649.15 100.62 6 SGTPS PH-3 571.96 88.65 7 Total Thermal 1698.20 263.22 102
Station Average Equity RoE @ 15.5% 8 Gandhi Sagar 3.14 0.49 9 Pench 29.16 4.52 10 Rajghat 24.84 3.85 11 Bargi 26.11 4.05 12 Bansagar PH-1,2&3 391.88 60.74 13 Madhikheda 45.66 7.08 14 Birsinghpur 15.64 2.42 15 Total Hydro 536.43 83.15 16 HQ 0.27 0.04 Total 2234.90 346.41 4.7.7. The Hon ble Commission has permitted Return on Equity in the MYT order for FY 14 to FY 16 read with tariff order dated 09.07.2013 for segregation of tariff of STPS Complex amounting to Rs. 335.07 Crores. The power Station wise break up is as under: Table No.4.7.7.1 ( in Rs. Crores) S.No. Station As per MYT order 1 ATPS PH-2 5.19 2 ATPS PH-3 34.63 3 STPS PH-1 1.48 4 STPS PH-2&3 27.20 5 SGTPS PH-1&2 100.61 6 SGTPS PH-3 85.81 7 Total Thermal 254.92 8 Gandhi Sagar 0.48 9 Pench 4.47 10 Rajghat 3.85 11 Bargi 4.05 12 Bansagar PH-1,2&3 57.84 13 Madhikheda 7.03 14 Birsinghpur 2.43 15 Total Hydro 80.15 16 HQ Total 335.07 103
4.7.8. The Equity allocated to HQ is nominal and as such has been linked to nearest power station i.e. Bargi HPS for simplicity. 4.7.9. The actual Return on Equity for FY 2013-14 amounting to Rs.346.41 Crores and the True up amount on account of Return on Equity works out as Rs.11.34 Crores before applying Normative Plant Availability Factor (NAFAF). The power station wise break up of same is as under:- RoE (before applying NAPAF) Table No.4.7.9.1 ( in Rs. Crores) S.No. Station As per MYT order MPPGCL as per norms Diff True up Amt 1 ATPS PH-2 5.19 5.95 0.76 2 ATPS PH-3 34.63 38.26 3.63 3 STPS PH-1 1.48 0.80-0.68 4 STPS PH-2&3 27.20 28.94 1.74 5 SGTPS PH-1&2 100.61 100.62 0.01 6 SGTPS PH-3 85.81 88.65 2.84 7 Total Thermal 254.92 263.22 8.30 8 Gandhi Sagar 0.48 0.49 0.01 9 Pench 4.47 4.52 0.05 10 Rajghat 3.85 3.85 0.00 11 Bargi 4.05 4.09 0.04 12 Bansagar PH-1,2&3 57.84 60.74 2.90 13 Madhikheda 7.03 7.08 0.05 14 Birsinghpur 2.43 2.42-0.01 15 Total Hydro 80.15 83.19 3.04 Total 335.07 346.41 11.34 104
S.No. 4.7.10. After applying the Availability factor the return on Equity works out as under: Table No.4.7.10.1 Station RoE(at Actual Availability) As per MYT order ( in Rs. Crores) MPPGCL as per norms Diff True up Amt 1 ATPS PH-2 5.19 5.51 0.32 2 ATPS PH-3 34.63 40.66 6.03 3 STPS PH-1 1.48 0.58-0.90 3 STPS PH-2&3 27.20 20.97-6.23 4 SGTPS PH-1&2 100.61 94.15-6.46 5 SGTPS PH-3 85.81 95.31 9.50 6 Total Thermal 254.92 257.18 2.26 7 Gandhi Sagar 0.48 0.51 0.03 8 Pench 4.47 4.57 0.10 9 Rajghat 3.85 2.36-1.49 10 Bargi 4.05 4.21 0.16 11 Bansagar PH-1,2&3 57.84 59.44 1.60 13 Madhikheda 7.03 6.00-1.03 14 Birsinghpur 2.43 2.43 0.00 15 Total Hydro 80.15 79.52-0.63 Total 335.07 336.70 1.63 4.7.11. MPPGCL humbly requests the Hon ble Commission to kindly permit the same. 105
4.8 Secondary Fuel Oil Cost:- 4.8.1. The Secondary Fuel Oil consumption is to be considered as per the norms specified proviso 38 of the MPERC (Terms and conditions for determination of Generation Tariff) (Revision-II) Regulations, 2012. The prices of Furnace Oil/ HSD/LDO are decided by Ministry of Petroleum, GoI as such MPPGCL has no control over it. The Govt. of MP imposes Entry Tax @ 10% on Furnace Oil and LDO when bought from outside the state. HSD is presently exempted from Entry Tax. The power station wise details of Secondary Oil comprising of Furnace oil and LDO/HSD purchased in various months of FY 2013-14 is elaborated below:- ATPS Chachai Table No. 4.8.1.1 ATPS CHACHAI (FY 2013-14) MONTH Quantity (KL) FURNACE OIL L.D.O SECONDARY OIL RATE Rs./KL Amount in Rs. Lakhs Quantity (KL) RATE Rs./KL Amount in Rs. Lakhs Quantity (KL) RATE Rs./KL Apr-13 - - - - - - - - - May-13 - - - - - - - - - Jun-13 - - - - - - - - - Jul-13 - - - - - - - - - Aug-13 - - - - - - - - - Amount in Rs. Lakhs Sep-13 2230 52967 1181 758 71564.86 542.483 2988 57685 1724 Oct-13 - - - - - - - - - Nov-13 - - - - - - - - - Dec-13 - - - - - - - - - Jan-14 - - - - - - - - - Feb-14 - - - - - - - - - Mar-14 - - - - - - - - - Entry Tax 120.693 54.24 174.93 TOTAL 2229.74 58380 1301.71 758.03 78720 596.72 2987.77 63540.11 1898.43 Note:- The Secondary Fuel Oil (F.O. + LDO) has been procured in the month of Sept 13 only. 106
It can be seen that the Secondary Fuel oil (Furnace Oil + LDO) at ATPS Chachai, are not being regularly procured on monthly basis. The Secondary Oil at ATPS was procured only in the month of Sept 13 in FY 2013-14 based on its requirement as Oil companies do not supply part racks. MONTH STPS Sarni Table No. 4.8.1.2 Quantity (KL) STPS Sarni (FY 2013-14) FURNACE OIL H.S.D. SECONDARY OIL RATE Rs./KL Amount in Rs. Lakhs Quantity (KL) RATE Rs./KL Amount in Rs. Lakhs Quantity (KL) RATE Rs./KL Amount in Rs. Lakhs Apr-13 2939.04 45838 1347.19 1571.99 61002 958.94 4511.03 51122 2306.13 May-13 2939.17 52742 1550.17 445.90 58437 260.57 3385.07 53492 1810.74 Jun-13 2759.01 49414 1363.34 751.19 61571 462.51 3510.20 52016 1825.85 Jul-13 11696.38 52636 6156.50 863.35 65635 566.66 12559.73 53529 6723.16 Aug-13 14683.78 52645 7730.24 1001.86 68265 683.92 15685.64 53642 8414.15 Sep-13 - - - 973.88 72635 707.38 973.88 72635 707.38 Oct-13 2938.20 55231 1622.80 1203.54 70575 849.39 4141.74 59690 2472.19 Nov-13 2936.08 54688 1605.68 1145.82 69859 800.46 4081.90 58946 2406.14 Dec-13 2930.19 54224 1588.86 131.35 70508 92.61 3061.54 54922 1681.47 Jan-14 - - 190.67 - - - - - 190.67 Feb-14 2934.73 55248 1621.38 - - - 2934.73 55248 1621.38 Mar-14-4.00 - - - - - -4.00 0 0.00 Entry Tax Inclusive Not Appl. 0.00 TOTAL 46752.58 52996 24776.82 8088.85 66541 5382.43 54841.43 54994 30159.25 Note: - The Furnace Oil has not been procured in the month of Sept 13, Jan 14 & Mar 14, similarly HSD has not been procured in the months of Jan 14, Feb 14 & Mar 14. The Furnace Oil for STPS Sarni has not been procured in the month of Sep 13, Jan 14 & Mar 14, similarly the HSD Oil has not been purchased for the month of Jan 14, Feb 14 & Mar 14. However there is an adjustment entry in cost towards payment of Entry Tax for Furnace oil in Jan 14 and in quantity in Mar 14. 107
Accordingly the weighted Average landed price of Secondary Fuel Oil has been calculated. MONTH SGTPS Birsinghpur Table No. 4.8.1.3 Quantity (KL) SGTPS BIRSINGHPUR (FY 2013-14) FURNACE OIL L.D.O. SECONDARY OIL Amount Amount RATE in Quantity RATE in Quantity RATE Rs./KL Rs. (KL) Rs./KL Rs. (KL) Rs./KL Lakhs Lakhs Apr-13 - - - - - - - - - May-13 - - - - - - - - - Jun-13 - - - - - - - - - Amount in Rs. Lakhs Jul-13 1524.24 45635 695.59 1453.34 58622 851.98 2977.58 51974 1547.57 Aug-13 - - - - - - - - - Sep-13 - - - - - - - - - Oct-13 2054.19 52573 1079.94 947.55 71303 675.63 3001.74 58485 1755.58 Nov-13 - - - - - - - - - Dec-13 - - - - - - - - - Jan-14 1230.51 52844 650.26 1835.36 67848 1245.25 3065.87 61826 1895.51 Feb-14 - - - - - - - - - Mar-14 - - - - - - - - - Entry Tax 248.97 286.01 534.98 TOTAL 4808.94 55621 2674.76 4236.25 72207 3058.88 9045.19 63389 5733.64 Note:- The Secondary Fuel Oil (F.O. + LDO) has been procured in the month of Jul 13, Oct 13 and Jan 14 only. The Secondary Fuel Oil for SGTPS Birsinghpur has not been procured in the month of Apr 13, May 13, Jun 13, Aug 13, Sep 13, Nov 13, Dec 13, Feb 14 and Mar 14. Accordingly the weighted Average landed price of Secondary Fuel Oil has been calculated. 108
4.8.2. Accordingly the power station wise actual weighted average landed Table No.4.8.2.1 price and rate of Secondary Fuel Oil for the Trued up period is detailed below:- Particulars ATPS Chachai STPS Sarni SGTPS Birsinghpur 1 Cost of Furnace Oil Rs. Lakhs 1301.71 24776.82 2674.76 2 Secondary LDO / HSD Rs. Lakhs 596.72 5382.43 3058.88 3 Oil Total Rs. Lakhs 1898.43 30159.25 5733.64 4 Furnace Oil kl 2229.74 46752.58 4808.94 5 Purchased Quantity LDO / HSD kl 758.03 8088.85 4236.25 6 Total kl 2987.77 54841.43 9045.19 7 Rate of Furnace Oil Rs/kL 58380 52996 55621 8 Secondary LDO / HSD Rs/kL 78720 66541 72207 9 Oil FY- 14 Total Rs/kL 63540 54994 63389 4.8.3. The rates of Secondary Fuel Oil for FY 2013-14, as approved by Hon ble Commission for the thermal power stations of MPPGCL through tariff order are detailed below:- Table No.4.8.3.1 Name of Thermal Power Stations Ref. Order in Petition No. Page No. Rates approved by MPERC in Rs./kL ATPS PH-2 Chachai 02/2013 68 46876 ATPS PH-3 Chachai 02/2013 68 46876 STPS Sarni 02/2013 68 47483 SGTPS PH-1&2 Birsinghpur 02/2013 68 52851 SGTPS PH-3 Birsinghpur 02/2013 68 52851 109
4.8.4. The power station wise details of actual weighted average rate of Secondary Fuel Oil vis-à-vis the approved rate as mentioned above:- Table No.4.8.4.1 Rate in Rs./kL Name of Thermal Power Stations As per MPERC Order As per Actual Diff. ATPS PH-2 Chachai 46876 63540 16664 ATPS PH-3 Chachai 46876 63540 16664 STPS Sarni 47483 54994 7511 SGTPS PH-1&2 Birsinghpur 52851 63389 10538 SGTPS PH-3 Birsinghpur 52851 63389 10538 The documentary evidence in respect of Secondary Oil procured during FY 2013-14 at Thermal Power Stations is annexed as Annexure-22 as Additional Supporting Documents being submitted before Hon ble Commission separately. 4.8.5. The calorific value of secondary oil is practically constant, about 10000 Kcal/Litre and therefore contribution of each ml of specific secondary oil consumption in heat rate is considered as 10 Kcal/Unit. After considering the decommissioning of Unit No. 1,2 & 4 of STPS PH-1 during the year and based on the Wt. Average Rate of Secondary Fuel Oil as indicated in the table above, the power station wise cost of Secondary fuel Oil (normative) works out be :- 110
Table No.4.8.5.1 ATPS PH-2, Chachai FY 2013-14 Particulars Unit As per MPERC Order MPPGCL as per Norms & Actual Rate Installed Capacity MW 240 240 NAPAF % 65.00% 65.00% Gross Gen. MU 1366.56 1366.56 Sp. Oil Consumption Normative ml/kwh 2.00 2.00 Quantity of Oil required KL 2733 2733 Wt. Avg. Price of Sec. fuel Rs. 46876.0 63540.1 16664 Cost of Secondary Fuel Oil Rs. Crores 12.81 17.37 4.55 Diff. Table No.4.8.5.2 ATPS PH-3, Chachai FY 2013-14 Particulars Unit As per MPERC Order MPPGCL as per Norms & Actual Rate Installed Capacity MW 210 210 NAPAF % 85.00% 85.00% Gross Gen. MU 1563.66 1563.66 Sp. Oil Consumption - Normative ml/kwh 1.00 1.00 Quantity of Oil required KL 1564 1564 Diff. Wt. Avg. Price of Sec. fuel Rs. 46876.0 63540.1 16664 Cost of Secondary Fuel Oil Rs. Crores 7.33 9.94 2.61 Table No.4.8.5.3 STPS Complex, Sarni FY 2013-14 Particulars Unit MPPGCL as As per per Norms MPERC & Actual Order Rate Installed Capacity MW 1080 1017.5 NAPAF % 76.37% 70.01% Gross Gen. MU 7224.99 6385.50 Sp. Oil Consumption - Normative ml/kwh 2.02 1.90 Quantity of Oil required KL 12962 12107 Wt. Avg. Price of Sec. fuel Rs. 47483.0 54994 7510.57 Cost of Secondary Fuel Oil Rs. Crores 69.42 66.58-2.84 Diff. 111
Table No.4.8.5.4 SGTPS PH-1&2, Birsinghpur FY 2013-14 Particulars Unit As per MPERC Order MPPGCL as per Norms & Actual Rate Installed Capacity MW 840 840 NAPAF % 80.00% 80.00% Gross Gen. MU 5886.72 5886.72 Sp. Oil Consumption - Normative ml/kwh 1.15 1.15 Quantity of Oil required KL 6770 6770 Wt. Avg. Price of Sec. fuel Rs. 52851 63389 10537.79 Cost of Secondary Fuel Oil Rs. Crores 35.78 42.91 7.13 Diff. Table No.4.8.5.5 SGTPS PH-3, Birsinghpur FY 2013-14 Particulars Unit As per MPERC Order MPPGCL as per Norms & Actual Rate Installed Capacity MW 500 500 NAPAF % 85.00% 85.00% Gross Gen. MU 3723.00 3723.00 Sp. Oil Consumption ml/kwh 1.00 1.00 Quantity of Oil required KL 3723 3723 Diff. Wt. Avg. Price of Sec. Fuel Rs. 52851 63389 10537.79 Sec. Oil Cost Rs. Crores 19.68 23.60 3.92 4.8.6. Based on the actual weighted average rate of Secondary Fuel Oil, the power station wise true up amount before applying Actual Availability works out to be:- 112
Table No. 4.8.6.1 in Rs. Crores S. No. Station As per MPERC Order As considered by MPPGCL on Norms Diff. 1 ATPS PH-2 12.81 17.37 4.55 2 ATPS PH-3 7.33 9.94 2.61 3 STPS 69.42 66.58-2.84 4 SGTPS PH-1&2 35.78 42.91 7.13 5 SGTPS PH-3 19.68 23.60 3.92 6 Total Thermal 145.02 160.39 15.38 4.8.7. The power station wise true up amount Secondary Fuel Oil after applying Actual Availability works out as under:- Table No. 4.8.7.1 in Rs. Crores S.No. Station As per MPERC Order As considered by MPPGCL on Norms Diff. 1 ATPS PH-2 12.81 16.06 3.25 2 ATPS PH-3 7.33 10.56 3.23 3 STPS 69.42 48.25-21.17 4 SGTPS PH-1&2 35.78 40.16 4.38 5 SGTPS PH-3 19.68 25.37 5.69 6 Total Thermal 145.02 140.40-4.62 4.8.8. MPPGCL humbly request Hon ble Commission to permit the same. 113
4.9 Non Tariff Income 4.9.1. The Hon ble Commission in (Terms and conditions for determination of Generation Tariff) (Revision-II) Regulations, 2012, MPERC has prescribed for Non- Tariff Income, as per proviso 31(a) & 31 (b) Any income being incidental to the business of the Generating Company derived from sources other than income from sale of energy shall constitute the non tariff income. 4.9.2. The Power Station wise Non Tariff Income as per the audited books of accounts for FY 2013-14 factored to 100% for the elements mentioned in proviso 31 (a) have been worked out and detailed in the table below:- Table No. 4.9.2.1 in Rs. Crores S.No. Station Non Tariff Income 1 ATPS PH-2 1.77 2 ATPS PH-3 1.55 3 STPS 18.27 4 SGTPS PH-1&2 5.12 5 SGTPS PH-3 85.77 6 Total Thermal 112.48 7 Gandhi Sagar 1.39 8 Pench 0.82 9 Rajghat 0.33 10 Bargi 1.90 11 Bansagar 1,2&3 1.48 12 Birsinghpur 0.01 13 Madhikheda 0.19 14 Total Hydro 6.13 Total 118.60 4.9.3. The above Non-Tariff Income includes amount towards Liquidity Damages (LD) deducted at SGTPS PH-3 (500MW) amounting to Rs. 82.72 Crores. 4.9.4. The detailed working in this regard is annexed as Annexure-23 as Additional Supporting Documents being submitted before Hon ble Commission separately. 114
4.10 Transfer of Assets towards settlement of water Charges with WRD, GoMP 4.10.1. The matter relating to payment of water charges to WRD, GoMP was long pending since period of erstwhile MPEB i.e. before bifurcation of the state of Madhya Pradesh, for want of the methodology on which water consumption shall be measured, the applicable rates & other various reconciliations.due to the above issues, the agreement for use of water could not be settled and signed between the two Organizations. 4.10.2. MPPGCL took initiative to get the above bottlenecks/ issues resolved & formalized the mechanism of the use of water & payment of charges thereof to WRD, GoMP. In this process, various round of meetings at various level took place & following important decision related to subject queries were involved :- a) Various works of the Bansagar Project were undertaken both by WRD-GoMP and MPPGCL (erstwhile MPEB / MPSEB) and accordingly the expenditures were incurred by each of the Organizations during the span of years. The original Project Cost of the works jointly undertaken was rupees Rs. 1190.50 Crores. This cost got subsequently revised to Rs. 1309.46 Crores in March 2003. The expenditures on these works were to be shared in proportion in accordance with various predefined Ratios. b) However, both the organizations were making expenditures as per requirement of the works and excess spend by any of two organization was recoverable from the other based on reconciliation. c) The process of reconciliation could not take place in past, therefore erstwhile MPEB has regularly capitalized the works done by it in the Bansagar project in its Books of Account. d) MPPGCL took initiative to resolve the aforesaid issues and get the reconciliation done. In this process a high level meeting was held with WRD officials on 12.07.2013 at Rewa, MP. The copy of minutes of said meeting is enclosed herewith for kind reference 115
pleases (Annexure-24) submitted separately as additional supporting documents. In this meeting, both the Organization had reconciled there figures & raised their claims so as to defend their interest. It was also agreed that the final numbers can be decided when a final view is taken by Government of MP in the matter. The following fact are to be kindly noted:- i. MPPGCL started its independent functioning w.e.f. 01.06.2005 and the figures of excess expenditure made by erstwhile MPEB/MPSEB were available on the Year End basis, therefore the figures of March 2005 were considered as the Base figures of excess expenditure amounting to Rs. 143.34 Crores. ii. Thus, MPPGCL (erstwhile MPEB/MPSEB) had spent Rs 143.34 Crores in excess to its share. The statement of this reconciliation has been signed by both the parties is annexed as Annexure-25 submitted separately as additional supporting documents. e) It is obvious that erstwhile MPSEB had capitalized the excess amount in the project due to non availability of the reconciliation at that point of time. Due to this, the asset amounting of Rs.143.34 Crores has been de-capitalized by MPPGCL from its Books of Account with effect from 01.06.2005. The asset amounting of Rs.143.34 Crores was therefore transferred WRD-GoMP. f) In the subsequent years, the expenditure on the project was being done primarily by WRD and till March 2013, they had spent Rs 55.70 Crores on the behalf of MPPGCL. After setting off Rs. 55.70 Crores from Rs. 143.34 Crores, the net payable amount of Rs.87.65 Crores still remained payable by WRD to MPPGCL. The expenditure was done by WRD on capital account and has been shown in their books accordingly. 116
g) Thus, it is obvious that MPPGCL has undercapitalized Rs.55.70 Crores in its Books of Accounts and therefore the same was to be capitalized in the Books of Accounts w.e.f 01.06.2005, accordingly. h) Considering these reconciliations, final decision in the matter was taken in the very high level meeting held between Principal Secretary (WRD), GoMP and Principal Secretary (Energy), GoMP on 30.07.2013. The copy of the minutes of said meeting is enclosed as Annexure-26 submitted separately as additional supporting documents. 4.10.3. Based on the above, it was agreed that the excess amount paid by MPPGCL amounts to Rs.143.34 Crores as on 01.06.2005. Following clarification in this regard is to be made:- a) Total Asset value as on 01.06.2005 of Bansagar PH-1,2&3 transferred through Final Opening Balance Sheet and admitted by Hon ble Commission vide MPERC True up order for FY 2007-08 dated 24.01.2011 was Rs.1243.92 Crores. b) The funding towards the same was considered as : Pariculars Amount (Rs.Crores) Remarks i Equity allocated to As per MPERC True Up 426.48 Bansagar PH-1,2 & 3. Order dated 24.01.2011. ii PFC Loan 1 92.00 Loan No.20102004 iii PFC Loan 2 93.00 Loan No.20102005 iv REC Loan 336.00 Allocated through Final Opening Balance Sheet v Total 947.48 (Rs. 1243.92 Crores vi Un-bridged Gap 296.44 Rs.947.48 Crores) c) It may be seen that an un-bridged amount of Rs. 296.44 Crores was funded by erstwhile MPEB/MPSEB from its own resources and had contributed the expenditure part on 117
behalf of WRD, GoMP. Thus, now the excess amount of Rs. 143.34 Crores spent by erstwhile MPEB/MPSEB is to be considered as part of this unabridged gap funding by its own resources. The Hon ble Commission is humbly requested not to adjust any part of Rs.143.34 Crores from the Equity of MPPGCL. As such, the Depreciation permitted by Hon ble Commission from FY 06(10M) to FY 2012-13 for these assets amounting to Rs. 143.34 Crores needs to be withdrawn from Bansagar PH-1, 2 & 3. The same has been worked out based on MPERC s Rates of Depreciation as per MPERC s Regulations, 2005 and Regulations, 2009 & 2012 as Rs. -41.29 Crores. The detailed working in this regard is annexed as Annexure-27 being submitted separately as additional supporting documents. d) It is pertinent to mention here that the portion of Assets added subsequently at Bansagar PH-1,2 &3 amounting to Rs.55.70 Crores has been made from own resources i.e. against receivables from WRD-GoMP. The Depreciation on these assets from FY 06(10M) to FY 2012-13 based on MPERC s Rates of Depreciation as per MPERC s Regulations,2005, Regulations,2009 & Regulation 2012 as Rs.15.61 Crores. The detailed working in this regard is annexed as Annexure-28 being submitted separately as additional supporting documents. e) Further, the Return on Equity & Interest on Excess Equity in reference to said addition been funded from internal resources has also been worked out in accordance to MPERC s Regulations,2005,Regulations,2009 & Regulation 2012 as Rs.19.33 Crores &Rs.30.32 Crores respectively. The detailed working in this regard is annexed as Annexure-29 being submitted separately as additional supporting documents. 4.10.4. Considering above the total amount of Depreciation, RoE & Interest on excess Equity from FY 06 to FY 13 is tabulated hereunder: 118
Table No.4.9.4.1 Rs. Crores Particulars Amount 1 Depreciation (a) to be reversed -41.29 (b) to be claimed 15.61 2 Net amount -25.69 3 Return on Equity 19.33 4 Interest on Excess Equity 30.32 Total 23.96 4.10.5. Regarding adjustment of dues, it is here to mention that after settlement MPPGCL would pay to WRD Rs. 24.30 Crores in 24 equal installments w.e.f. 01.08.2013. The above decision settles and resolves all pending claims, liabilities and Bills etc. of WRD and power companies of Government of MP as on 13.07.2013. The detailed working of dues amounting to Rs. 24.30 Crores is annexed as Annexure-30 being submitted separately as additional supporting documents 4.10.6. The copies of signed Agreement for supply of water to Thermal Power Stations are annexed as Annexure-31 being submitted separately as additional supporting documents. 4.10.7. It is humbly prayed before Hon ble Commission to kindly permit Rs.23.96 Crores separately towards Additional Depreciation, RoE and Interest on Excess Equity in view of settlement of assets of Bansagar PH- 1, 2 & 3 between WRD-GoMP for the period FY-06(10M) to FY-13. 119
5. Requirement for True up FY 2013-14:- 5.1.1. The instant true up is based on the Annual Statement of Audited accounts for FY 2013-14. The Power Station wise breakup of the elements of Profit & Loss Account of MPPGCL is annexed as Annexure-32 in Additional Supporting Documents being submitted before Hon ble Commission separately. The Element wise breakup of difference in amount as per MPERC orders v/s Norms is given below. Table No. 5.1.1.1 (Amount in Rs. Crores) Particulars Fixed Cost Elements Elements Annual Fixed Cost FY 2013-14 As per MPERC Orders MPPGCL as per norms Diff. O & M Expenses 629.18 603.90-25.29 Compensation Allowance 11.63 11.63 0.00 Special Allowance 18.75 72.23 53.48 Interest on Loan + Exc. Equity 188.07 221.29 33.22 Interest on W/C 240.18 240.18 0.00 Depreciation 344.48 349.84 5.36 RoE 335.07 346.41 11.34 Cost of Sec Oil (Normative) 145.02 160.39 15.38 Less Non Tariff Income 0.00 118.60-118.60 Total 1912.38 1887.27-25.11 5.1.2. Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on R&M, Cost of Chemical & Consumable, Publication expenses and SLDC Charges incurred by MPPGCL and as per audited Annual Statement of Accounts for FY 2013-14 on 100% basis as detailed as hereunder:- Table No. 5.1.2.1 Amount in Rs. Crores S. No. Particulars Total 1 Rent, Rates & Taxes 0.56 2 Entry Tax 2.20 3 Water Charges 57.16 4 Cost of Chemicals 4.69 5 Cost of Consumables + Publications 6.48 6 MPERC Fee 1.16 7 SLDC Charges 0.61 Total 72.87 120
5.1.3. Station wise breakup of difference in amount as per MPERC orders v/s Norms is given below:- Table No. 5.1.3.1 Amount in Rs. Crores S.No. Station As per MPERC Orders MPPGCL as per norms Diff. 1 ATPS PH-2 107.94 124.34 16.40 2 ATPS PH-3 206.50 231.79 25.30 3 STPS 420.34 413.43-6.91 4 SGTPS PH-1&2 467.93 448.83-19.11 5 SGTPS PH-3 429.64 385.93-43.71 6 Thermal 1632.35 1604.32-28.03 7 Gandhi Sagar 14.35 12.84-1.52 8 Pench 25.08 24.72-0.36 9 Rajghat 13.39 12.68-0.71 10 Bargi 17.84 15.04-2.80 11 Bansagar 1,2&3 167.79 174.99 7.20 12 Birsinghpur 6.56 7.27 0.71 13 Madhikheda 35.02 35.41 0.39 14 Hydro 280.04 282.96 2.92 Total 1912.38 1887.27-25.11 5.1.4. The difference between Annual Fixed Charges approved by the Hon ble Commission for FY 2013-14 in its MPERC orders vis-à-vis the true up requirement after applying Actual Availability on fixed cost elements of thermal power stations and actual Availability applicable on capacity charges for Hydro Power Stations based on 100% capacity of the plants operated by MPPGCL worked out is tabulated below:- 121
Table No. 5.1.4.1 Particulars Fixed Cost Elements True Up Requirement for FY 2013-14 Elements Amount in Rs. Crores Annual Fixed Cost FY 2013-14 As per MPERC Orders MPPGCL as per norms Diff. O & M Expenses 629.18 544.46-84.73 Compensation Allowance 11.63 9.39-2.24 Special Allowance 18.75 52.34 33.59 Interest on Loan + Exc. Equity 188.07 233.08 45.01 Interest on W/C 240.18 219.19-20.99 Depreciation 344.48 350.12 5.64 RoE 335.07 336.70 1.63 Cost of Sec Oil (Normative) 145.02 140.40-4.62 Less Non Tariff Income 0.00 118.60-118.60 Total 1912.38 1767.07-145.31 5.1.5. Other Charges comprising of MPERC Fees, Water Charges, Rent, Rates& taxes, Entry Tax on R&M, Cost of Chemical & Consumable, Publication expenses and SLDC Charges incurred by MPPGCL and as per audited Annual Statement of Accounts for FY 2013-14 on 100% basis as detailed as hereunder:- Table No. 5.1.5.1 Amount in Rs. Crores S. No. Particulars Total 1 Rent, Rates & Taxes 0.56 2 Entry Tax 2.20 3 Water Charges 57.16 4 Cost of Chemicals 4.69 5 Cost of Consumables + Publications 6.48 6 MPERC Fee 1.16 7 SLDC Charges 0.61 Total 72.87 122
5.1.6. The Power station wise break up of true up amount after applying actual Availability on fixed cost elements of thermal power stations and actual Availability on capacity charges for Hydro Power Stations and considering Other Charges incurred by the petitioner is worked out as under:- Table No. 5.1.6.1 S.No. True Up Requirement for FY 2013-14 Station As per MPERC Orders Amount in Rs. Crores MPPGCL as per norms Diff. 1 ATPS PH-2 107.94 114.87 6.93 2 ATPS PH-3 206.50 246.48 39.98 3 STPS 420.34 294.57-125.77 4 SGTPS PH-1&2 467.93 419.66-48.27 5 SGTPS PH-3 429.64 421.33-8.30 6 Thermal 1632.35 1496.91-135.44 7 Gandhi Sagar 14.35 13.49-0.87 8 Pench 25.08 24.98-0.09 9 Rajghat 13.39 7.66-5.74 10 Bargi 17.84 15.55-2.29 11 Bansagar 1,2&3 167.79 171.22 3.43 12 Birsinghpur 6.56 7.29 0.73 13 Madhikheda 35.02 29.98-5.04 14 Hydro 280.04 270.17-9.87 Total 1912.38 1767.07-145.31 123
ANNEXURE COPY OF DEMAND DRAFT TOWARDS MPERC FEE FOR TRUEUP FY14 124