POWER GRID CORPORATION OF INDIA LIMITED Vs. BIHAR STATE ELECTRICITY BOARD
LAWS(ET)-2005-12-15
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on December 21,2005

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) THE petition has been filed for approval for transmission charges for Chukha Transmission System (the transmission system) in Eastern Region for the period from 1.4.2004 to 31.3.2009, based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004, (hereinafter referred to as "the 2004 regulations"). THE petitioner has also prayed that it be permitted to continue the billing of transmission charges on the same basis as charged on 31.3.2004, pending determination of tariff in the present petition. THE petitioner seeks recovery of abnormal O & M expenses towards deployment of additional security forces based on statutory auditor's certification after closing of annual accounts, by direct billing on the respondents.
(2.) The approval for the revised cost estimated of Rs. 139.09 crore, including IDC of Rs. 8.24 crore for the transmission system was accorded by the Central Government in Ministry of Power vide letter dated 4.9.1998. The tariff for the period up to 31.3.2001 was notified by the Central Government under its notification dated 14.5.1999 at the cost of Rs. 138.74 crore. The annual transmission charges for the period from 1.4.2001 to 31.3.2004 were decided by the Commission in its order dated 30.6.2003 in petition No. 11/2002. The scope of the work included in the transmission system and the date of commercial operation of the respective transmission assets are stated below: -------------------------------------------------------------------------------- S. Name of the transmission line Date of commercial Line length No. operation ckt-km (For O&M) -------------------------------------------------------------------------------- (i) Malda-Farakka 400 kV D/C 1.10.1986 Ckt-I 220 kV 80 transmission line 1.9.1991 Ckt-II 400 kV (Charged to 400 kV on 1.5.2002) (ii) Malda-Dalkhola 220 kV D/C 1.12.1986 232 transmission line (iii) Dalkhola-Purnea 220 kV D/C transmission line 1.12.1986 82 . (iv) Dalkhola-Siliguri 220 kV D/C transmission line 1.12.1986 238 (v) Siliguri-Birpara 220 kV D/C transmission line 1.10.1986 172 (vi) Birpara -Salakati 220 kV D/C transmission line 1.4.1987 322 (vii) Birpara-Puntsholing 220 kV D/C transmission line 1.10.1986 72 (viii) Birpara-Puntsholing-III 220 kV S/C transmission line 1.11.1990 38 (ix) Salakati-BTPS 220 kV S/C transmission line 1.7.1987 3 -------------------------------------------------------------------------------- Total 1239 -------------------------------------------------------------------------------- The petitioner has claimed the transmission charges as under: (Rs. In lakh) ------------------------------------------------------------------------------ 2004-05 2005-06 2006-07 2007-08 2008-09 ------------------------------------------------------------------------------ Depreciation 279.85 279.85 279.85 279.85 279.85 Interest on Loan 0.00 0.00 0.00 0.00 0.00 Return on Equity 738.08 738.08 738.08 738.08 738.08 Advance against Depreciation 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 93.31 97.11 101.13 105.31 109.78 O&M Expenses 1406.05 1462.40 1521.59 1581.15 1645.57 ------------------------------------------------------------------------------ Total 2517.29 2577.45 2640.66 2704.39 2773.28 ------------------------------------------------------------------------------
(3.) THE details submitted by the petitioner in support of its claim for interest on working capital are given hereunder: (Rs. in lakh) ----------------------------------------------------------------------------- 2004-05 2005-06 2006-07 2007-08 2008-09 ----------------------------------------------------------------------------- Maintenance Spares 373.60 396.01 419.77 444.96 471.66 O&M expenses 117.17 121.87 126.80 131.76 137.13 Receivables 419.55 429.57 440.11 450.73 462.21 Total 910.32 947.45 986.68 1027.45 1071.00 Rate of Interest 10.25% 10.25% 10.25% 10.25% 10.25% Interest 93.31 97.11 101.13 105.31 109.78 ----------------------------------------------------------------------------- ;


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