N.V.RAMANA, J. - (1.) The present appeal arises out of the decisions of the Central Electricity Regulatory Commission, New Delhi ["CERC"] wherein an issue relating to capitalization of Foreign Exchange Rate Variation ["FERV"] was determined by the Commission and thereafter affirmed in a review petition, vide orders dated 30.06.2003 and 04.12.2003 respectively. On appeal, the Appellate Tribunal for Electricity, New Delhi vide judgment dated 04.10.2006 in Appeal Nos. 135-140 of 2005, approved the methodology for ascertaining the FERV; however, with respect to apportionment of the FERV, the appeal was allowed and FERV was directed to be apportioned only in respect of debt liability. It is this judgment of the Appellate Tribunal for Electricity, New Delhi which is in challenge before us.
(2.) The appellant is a transmission company which plans, executes and makes available transmission systems for conveyance of power from one place to another. The tariff which it charges for the conveyance is fixed by the CERC. FERV is a pass through which is kept to ensure that any liability or gain by virtue of fluctuation in foreign exchange rates passes to the beneficiary in a staggered manner.
(3.) The limited issue before us is apportionment of FERV into debt and equity after FERV has been calculated and added to capital cost.;