6.21

Talcher Thermal Power Station (TTPS)

6.21.1

Fixed cost

6.21.1.1

GRIDCO has submitted that NTPC has filed a petition before the CERC to approve TTPS tariff for FY 2001 to 2005 where the fixed cost for FY 02 is calculated at Rs.189.28 Crore which has been calculated for a capital cost of Rs.431.83 Crore based on the audited figure of 1999-00. In the application NTPC has also sought approval for increase in the fixed cost at the rate of Rs.1.88 lakhs per month for additional capitalisation of Rs.1.00 Crore. The application is pending before the CERC.

6.21.1.2

GRIDCO has submitted that as per existing PPA and the MOU the tariff has to undergo a revision on year to year basis, taking into account the capitalisation on account of R&M or otherwise. As per this provision NTPC has claimed fixed charges of Rs.13.62 Crore per month from April 2000 due to additional capitalisation of Rs.92.08 Crore during FY 2001. The expenditure on R&M during FY 2002 is likely to be Rs.34.27 Crore.

6.21.1.3

GRIDCO has calculated the fixed cost @ Rs.13.62 Crore per month for the full year based on bills presented by TTPS and additional fixed cost due to R&M of Rs.34.27 Crore @ Rs.1.7 lakhs per month per Crore of investment which aggregates to Rs.170.45 Crore per annum. As the proposal of GRIDCO is in conformity with the terms of PPA and the Minutes of Meeting dt.23/24.09.1996 we accept the fixed cost as proposed by GRIDCO. Therefore, for calculating the cost of power, the Commission approves the fixed cost at Rs.170.45 Crore for the year 2001-02.

6.21.1.4

In its ARR application for 2002-03,GRIDCO has considered the same Rs.170.45 Crore as fixed cost and has requested to allow recovery of additional cost as surcharge if the cost allowed by CERC is higher than the cost considered for ARR application from the date the CERC order is made effective. Pending finalisation of PPA the Commission approves the fixed cost as Rs.170.45 Crore for FY 2002-03 in line with the observation made in the preceding paragraph.

6.21.2

Variable Charges

6.21.2.1

GRIDCO has stated that in its tariff computation, NTPC indicated the variable cost as 55.66 paise/unit, based on revised station parameters. The significant change is the increase of Station Heat Rate from 3200 kCal/kWh to 3300 kCal/kWh and of Auxiliary Consumption from 11.75% to 12%.

6.21.2.2

GRIDCO has disputed the change in station parameters applied for in NTPC’s petition to CERC. NTPC, however, has insisted that the station parameters signed in its earlier PPA could not be achieved, and now proposes a realistic target.

6.21.2.3

GRIDCO has proposed variable charges which includes FPA for TTPS at 65.97 paise/unit for FY 02 based on average of costs of coal and oil for FY 01 and its calorific value with an escalation of 10%.

6.21.2.4

Commission has based its calculation of variable cost taking into consideration the cost of fuel and the calorific value which has been averaged for a period of eleven months taken out from the bills served by TTPS for the FY 2001-02 upto February, 2002. Accordingly, the Commission approves a variable charge of 66.30 paise/unit as against 65.97 paise/unit proposed by GRIDCO.

6.21.2.5

For 2002-03, GRIDCO has proposed the same 65.97 paise/unit as variable charge. The Commission considers it reasonable to give an escalation of 4% towards change in price of oil and coal for the FY 2002-03 over the variable charges of 2001-02 and accordingly, approves variable charges of 67.43 paise/unit for FY 2002-03.

6.21.3

Year End Charges

6.21.3.1

GRIDCO in its application for FY 2001-02 has submitted that the year end charges of TTPS include cess on water, water charges, electricity duty and income tax. Considering the claim of 2000-01 as the base year GRIDCO in its BST application estimates a total requirement of Rs.29.81 Crore for the FY 2001-02. On 30.3.2002, GRIDCO has in its calculation said that year end charges would be 26.24 paise/unit. The Commission examined the claims and has approved the following projections as year end adjustment for the FY 2001-02. Water cess and water charges of Rs.0.39 Crore, Electricity duty calculated @ 12 paise/unit on an auxiliary consumption on normative level of generation is estimated at Rs.3.57 Crore, Income tax of Rs.38.55 crore based on advance income tax bill raised by NTPC for April, 2001 to December, 2001 and prorated to 12 months. GRIDCO has also claimed Rs.1.93 Crore towards income tax paid of the year 1997-98. However, it is felt that the arrear income tax paid for 1997-98 is not justifiable as a pass through in 2001-02 in the absence of audited accounts and, therefore, is not allowed. The total year end charges approved for the year 2001-02 is thus Rs.42.50 Crore as against Rs.57.99 Crore proposed by GRIDCO on 30.3.2002.

6.21.3.2

For the year 2002-03, GRIDCO has proposed year end charges of Rs.28.11 Crore towards income tax, electricity duty, water charges and FPA adjustment. Commission approves a figure of Rs.42.50 Crore towards year end charges i.e. at the same level as that the year 2001-02.

6.21.4

Orissa Power Generation Corporation (OPGC)

6.21.4.1

Fixed cost: OPGC as reported by GRIDCO has submitted its tariff calculation for FY 02 claiming a fixed cost of Rs.248.777 Crore. The tariff calculation as agreed to between OPGC and GRIDCO has been submitted in (ED-4 of volume 3) where the fixed cost is accepted as Rs.247.928 Crore.

6.21.4.2

After checking calculations, the Commission approves the fixed cost as Rs.247.93 Crore. The same figure has been proposed by GRIDCO in its ARR application for 2002-03, which is provisionally accepted.

6.21.4.3

Variable charges : The variable charges as proposed by OPGC is 51.93 paise/unit both for 2001-02 and 2002-03. This figure has been checked at the Commission’s end and the Commission accepts the figure of 51.93 paise/unit.

6.21.4.4

FPA : In FY 2002 & FY 2003 application the FPA has been claimed @4.39 paise/unit assuming an escalation of 10% on the average cost of fuel and its calorific value for the year 2000-01.

6.21.4.5

The Commission does not consider the rate of escalation proposed at 10% to be appropriate and reasonable as the rate of inflation is hovering around 4%. Therefore after considering an escalation of 4% on the FPA of 2000-01 calculation the Commission arrives at a figure of 4.15 paise/unit for 2001-02. For 2002-03 the Commission considers it appropriate to give an escalation of 4% on the estimated FPA of 2001-02 and accordingly, approves 4.32 paise/unit for the year 2002-03.

6.21.4.6

Year end charges: GRIDCO has proposed year end charges of Rs.30.05 Crore on account of charges for land tax, water cess, electricity duty and incentive based on actual bills of OPGC for FY 2001. On 30.3.2002, GRIDCO has submitted that total year end charges would be Rs.27.98 Crore. This has been examined at the Commission’s end and income tax is approved at Rs.11.75 Crore and water cess and land tax & rate at Rs.0.14 Crore based on the bills given by OPGC and electricity duty at Rs.2.87 Crore calculated @12 paise/unit on the auxiliary consumption for the year 2001-02. The total year end charges approved for 2001-02 is Rs.14.77 Crore. No incentive has been given as the generation is kept at normative level. For the year 2002-03, income tax and water cess, rent, land tax, electricity duty have been kept at the same level. Accordingly, Commission approves Rs.14.77 Crore for FY 2002-03.

6.21.4.7

Captive Power Plants (CPP) : GRIDCO in its application for FY 2001-02 and 2002-03 has stated that the procurement cost for energy receipt from CPP is Rs.93.76 paise/unit comprising of 77 paise/unit as the base rate and 16.76 paise/unit towards escalation on account of increasing of fuel cost. The Commission has taken this rate into consideration for determining the cost of power purchase from the CPP.

6.21.5

Central Power Stations

6.21.5.1

Transmission Loss : The constituents of the eastern region share the losses occurring in the central transmission system. For the year 2001-02 based on the figure of the global account for the last 11 months the loss works out to 3.84%. The charges payable to the central generation and transmission system are adjusted to account for the losses in the central transmission system. This rate percentage has also been considered for determination of loss for the FY 2002-03 as this is based on the data on the past 11 months as stated earlier.

6.21.5.2

Transmission Charge for PGCIL Lines : GRIDCO has stated that Government of India Notification dtd. 04 December, 1998, 11 May, 1999, 14 May, 1999 together notified tariffs of Farakka, Kahalgaon, Talcher and Chukha transmission system as well as Rangit/Melli and Rangit/Raman lines. The CERC has passed interim orders for payment of 80%, 88% and 80% of the fixed cost indicated by PGCIL in their application for Dehri-Karmanasha, Jeypore-Gazuwaka and Budhipadar-Korba transmission lines. PGCIL has submitted application to CERC for tariff fixation for Rangit-Siliguri and Malda-Bongaigaon transmission system. As per CERC order dated 22.6.99, tariff for Rs.5.0917 Crore is paid for FY 2002 towards Rangit-Siliguri transmission system and order dated 17.11.2000 tariff of Rs.22.843 Crore is paid for FY 2002 towards Malda-Bongaigaon transmission system.

6.21.5.2.1

In this BST application, GRIDCO has considered the annual fixed charges of Rs.262.366 Crore for all the above, based on the application.

6.21.5.2.2

PGCIL is eligible for incentive for availability above 95%. In this application, an availability level of 99% is assumed for computation of incentive and the amount of Rs.4.48 Crore is considered which is based on the actual for FY 2001.

6.21.5.2.3

The amount of income tax for the ensuing year is based on the actual advance income tax paid by PGCIL in FY 01 i.e. Rs.8.14 Crore.

6.21.5.2.4

PGCIL has raised an additional charge to recover annual maintenance cost (AMC) of the special type energy meters installed at interface points. For the ensuing year, Rs.5.00 lakh is taken, which is as per actual bills of FY 2001.

6.21.5.2.5

PGCIL has billed separately towards Foreign Exchange Rate Variation (FERV) of Rs.4.8 Crore, backed by a Government of India notification, in FY 2001. The same amount is considered for FY 02.

6.21.5.2.6

The calculation furnished by GRIDCO in form DF18 has been checked up at the Commission’s end wherein GRIDCO has shown the figure as Rs.237.43 Crore and year end charges of Rs.15.22 Crore, total being Rs.252.65 Crore. However, in the application as stated above GRIDCO has considered the annual tariff as claimed by PGCIL of Rs.279.83 Crore. Taking the CERC order into consideration we feel that it is reasonable to take the estimate of Rs.252.65 Crore as fixed cost of PGCIL transmission system charges for the FY 2001-02 and as well as FY 2002-03. The energy billed in the EREB system has been taken as 19469.93 MU based on global accounts for the months April, 2001 to February,2002 and prorated for the month of March 2002. As such it is estimated that the transmission charge including central transmission loss to be 13.50 paise/unit for the year 2001-02. This rate is also considered for the year 2002-03.

6.21.5.3

Chukka : GRIDCO in its application of FY 02 has stated that the procurement cost from Chukka is taken as per the Government of India notification dated 26.08.99 as per the details below.

• 100 paise/unit for the period June to September

• 150 paise/unit for balance period (April to May and October to March)

• A further five paise/unit is added to the above rates based on PGCIL letter dated 19 November 1999 to the Eastern Region beneficiaries, levied for the Power Trading Corporation (PTC). In addition to this, GRIDCO has to bear the Central Transmission losses on the PGCIL net work and also has to pay for the transmission charges. GRIDCO has proposed a rate of 163.06 paise/unit for 2001-02 and 151.40 paise/unit for 2002-03.

6.21.5.3.1

Based on the actual drawl from this power station taken from the global account of EREB upto February, 2002 and projection for March, 2002 it is observed that the average rate per unit of this power station works out to Rs.150.66 paise/unit inclusive of central transmission loss and transmission charges.

6.21.5.3.2

For the year 2002-03, it is expected that GRIDCO would have full drawl of our share from the Chukha power station. It is estimated that the rate per unit from this power station inclusive of central transmission loss and PGCIl transmission charges will be 143.59 paise/unit. The estimated higher rate for the year 2001-02 is on account of non-drawal of Orissa share particularly during the monsoon period.

6.21.5.4

Central Thermal Power Station : Under ERC Act, the tariff in respect of the Central Power Stations will be determined by the Central Electricity Regulatory Commission from 15.5.99 onwards.

6.21.5.4.1

The Ministry of Power, Government of India have notified the tariff in respect of the Talcher Super Thermal Power Station Kaniha (Orissa), Farakka Super Thermal Power Station (West Bengal), Kahalgaon Super Thermal Power Station (Bihar) under Section 43(A) of The Act, 1948 prior to 15.5.99. This tariff is, therefore, current and has not been replaced as yet.

6.21.5.4.2

The Commission has analysed the various parameters for calculation of tariff payable by GRIDCO for drawal of power from Central Thermal Stations.

Table : 20
Energy sent out ESO
(Figures In MU)

* DF-12, 13 & 14

6.21.5.4.3

The forecast of energy sent out from the various Central Thermal Stations are provided by GRIDCO in form DF12, 13 & 14 of BST 2002 filing. The Commission examined the generation figures of these stations from the global account of energy prepared by the EREB for the period of April 2001 to February, 2002 and thereafter took into consideration the generation projection by EREB for the months of March, 2002 and arrived at the estimated energy sent out for the FY 2001-02.

6.21.5.4.4

For the FY 2002-03 the figures of ESO proposed by GRIDCO has not been substantiated by any evidential document to justify the departure and as such the Commission estimates that the same level of generation as approved by Commission for 2001-02 will be same for the FY 2002-03.

6.21.5.5

Fixed Cost: The fixed cost of various central thermal stations based on Government of India notification is given in Table : 21.

Table : 21
Fixed Cost

6.21.5.5.1

GRIDCO in its BST filing of 2001-02 in para 2.5.8.1 has stated that GRIDCO has made fixed cost calculation based on the recent petition filed by NTPC to CERC for approval of revised fixed charge due to additional capitalisation and foreign exchange rate variation for the years 1997-98 to 2000-01 in respect of the generating station.

6.21.5.5.2

GRIDCO has stated that the fixed cost calculated as per the aforesaid NTPC filing comes to Rs.713.458 Crore for FSTPS, Rs.660.636 Crore for TSTPS and Rs.504.215 Crore for Kahalgaon. The revised schedule of charges is yet to be finalised by CERC. For the projected generation, the effective per unit cost for year 2001-0-2 including adjustment for Central Sector line loss is 129.24 paise/unit for Talcher STPS, 80.80 paise/unit for Farakka STPS and 97.87 paise/unit for Kahalgaon TPS. If the projected generation is not achieved the fixed cost per unit as proposed will go up proportionately.

6.21.5.5.3

The proposal of GRIDCO was examined at Commission’s end. In the absence of order by CERC the Commission has calculated the fixed cost as per the existing GOI notification subject to final order by CERC. Incidentally it may be mentioned that GRIDCO is being billed on the basis of the Government of India notification as indicated in para 6.21.5.5. Accordingly, the fixed cost as proposed by GRIDCO and estimated by Commission for the purpose of calculation for the year 2001-02 is given in Table : 22.

Table : 22
Fixed Cost
(Rs. in Crore)

6.21.5.5.4

GRIDCO has proposed the same fixed cost for 2002-03 as proposed in 2001-02. The fixed cost estimated by the Commission for the FY 2001-02 will also apply in respect of the FY 2002-03 pending finalisation of order by CERC.

6.21.5.6

Variable charges: GRIDCO in para 2.5.8.2 of the BST application FY 2001-02 and ARR application FY 2002-03 have furnished the calculation of variable charges prepared in accordance with the GoI notification.

Table : 23

6.21.5.6.1

The Commission has accepted the rates as provided in Government of India notification as outlined above. The rates stated above been applied for the FY 2002-03.

6.21.5.6.2

The rate of variable charge inclusive of adjustment of central line loss proposed by GRIDCO (Central line loss of 4%) and estimated by Commission (Central line loss of 3.55%) is given in Table : 24. This rate has also been accepted for the purpose of calculation of variable charges for the FY 2002-03.

Table : 24
(Paise/unit)

6.21.5.7

Fuel Price Adjustment : FPA has been calculated by GRIDCO on the basis of actual bills for the period April to August, 2001 with an escalation of 10%. GRIDCO estimates the FPA for FY 2002 including Central line losses at 7.40 paise/unit for TSTPS, 55.24 paise/unit for FSTPS and 49.83 paise for KhSTPS in para 2.5.8.3 of the BST application for the FY 2001-02. GRIDCO in its ARR application of 2002-03 has considered the same base i.e. the average of cost of fuel and calorific value for the months of April to August, 2001 with an escalation to 10%. They have calculated the FPA as 7.39 paise/unit, for TSTPS 55.13 paise/unit for FSTPS, 49.85 paise/unit for KhSTPS inclusive of Central line losses. The Commission took into consideration the cost of fuel and calorific value on the basis of the data available for the period of April 2001 to February 2002. Since the calculation is being done on the billing figures for past eleven months for the year 2002, no escalation on these figures is considered for 2001-02. While calculating for 2002-03, an escalation of 10% as has been proposed by GRIDCO has been taken into consideration over the base figure of 2001-02.

6.21.5.7.1

The rates of FPA as proposed by GRIDCO and as estimated by the Commission inclusive of central transmission loss for the year 2001-02 is given in Table: 25.

Table : 25
(Paise/unit)

6.21.5.8

Miscellaneous Charges (Income Tax, Incentive, Water Cess and Water Charges): GRIDCO has projected the year-end charges for FY 2002 at par with the actual bills claimed by NTPC for FY 1999-00 upto February 2000 and annualize the figures. It has said that all charges except incentive are based on actual dues of NTPC. It has proposed year-end charges adjusting for central line losses is 31.94 paise/unit for TSTPS, 22.82 paise/unit for FSTPS and 27.20 paise/unit for KhSTPS. On 30.03.2002 GRIDCO has submitted the year-end charges for various Central Thermal Stations based on the following parameters.

1. Income tax has been calculated on the basis of claim from 4/2001 to 12/2001 and has been projected for the months of January to March 2002.

2. Water cess claimed on basis of amount paid from 4/2001 to 6/2001 has been projected for the months of July 2001 to March 2002.

3. Electricity duty has been assessed only in respect of TSTPS based on the assessment of FY 2000-01.

4. Incentive in respect of all the three stations has been assessed on the basis of estimates of the FY 2000-01.

6.21.5.8.1

The Commission has checked the proposal and based on following parameters has calculated the year-end charges.

1. Income Tax has been calculated on the basis of advance income tax bill claimed by NTPC for the months of April, 2001 to December, 2001 and prorated for 12 months.

2. Water cess based on bills raised on GRIDCO for 1999-00.

3. Electricity duty for TSTPS based on the auxiliary consumption for 2001-02 has been calculated @ 12 paise/unit.

4. Incentive has been given as per actual E.S.O. achieved for year 2001-02.

6.21.5.8.2

Accordingly, the year end adjustment approved by the Commission inclusive of central transmission loss is given in Table : 26.

Table : 26
Year End Charges (FY 2001-02)
(Paise/unit)

6.21.5.8.3

For the year 2002-03, GRIDCO has proposed year-end charges at par with the actual bills claimed by NTPC for 1999-00 and annualized. Accordingly, the year end charges adjusted for the Central line losses is given in Table : 26. The Commission feels it reasonable to adopt the year end charges similar to that of FY 2001-02. Accordingly, the Commission’s estimate is also given in Table : 27.

Table : 27
Year End Charges (FY 2002-03)
(Paise/unit)

6.21.5.8.4

GRIDCO’s proposed cost of power from various generating stations and Commission’s approval of such cost have been given in Table : 28 for 2001-02 and in Table 29 for 2002-03.

Table : 28
Comparison of Power Purchase Costs for 2001-02
GRIDCO’s Proposal

Note : (Central transmission loss of 4% for central stations included)

Commission’s Approval

Note : Central Transmission Loss of 3.84% for central sector stations included.

Table : 29
Comparison of Power Purchase Costs for 2002-03
GRIDCO’s Proposal

Note : (Central transmission loss of 4.00% for central stations included)

Commission’s Approval

Note : Central Transmission Loss of 3.84% for central sector stations included.

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