POWER GRID CORPORATION OF INDIA LIMITED Vs. RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LIMITED
LAWS(ET)-2005-11-7
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on November 23,2005

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) THE petition has been filed for approval for transmission charges for transmission system associated with Uri Hydroelectric Project ( the transmission system) in Northern 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 had 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, and for recovery of abnormal O &M expenses for deployment of additional security forces at Wagoora substation based on statutory auditors certification after closing of annual accounts by way of direct billing on the respondents. No other specific relief is prayed for.
(2.) The petitioner has claimed the transmission charges as under: (Rs. In lakh) 2004-05 2005-06 2006-07 2007-08 2008-09 Depreciation 513.33 513.33 513.33 513.33 513.33 Interest on Loan 0.00 0.00 0.00 0.00 0.00 Return on Equity 1297.24 1297.24 1297.24 1297.24 1297.24 Advance against Depreciation 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 74.64 77.09 79.68 82.42 85.32 O & M Expenses 272.76 283.69 295.16 306.73 319.21 Total 2157.97 2171.35 2185.41 2199.72 2215.10 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 345.82 366.59 388.58 411.89 436.61 O & M expenses 22.73 23.64 24.60 25.56 26.60 Receivables 359.66 361.89 364.24 366.62 369.18 Total 728.21 752.12 777.42 804.07 832.39 Rate of Interest 10.25% 10.25% 10.25% 10.25% 10.25% Interest 74.64 77.09 79.69 82.42 85.32
(3.) APPROVAL of the Central Government for setting up the transmission system was accorded vide Ministry of Power, letter dated 30.6.1989, for a total capital investment of Rs. 8610.00 lakh including an IDC of RS. 915.00 lakh. Subsequently, Ministry of Power vide letter dated 4.9.1998 approved Revised Cost Estimate (RCE) of the transmission system for an amount of Rs. 25017.00 lakh, including IDC of Rs. 2220.00 lakh. The approved scope of work covered under the transmission system included 400 kV D/C Uri-Wagoora transmission line (189.98 ckt-km), 220 kV D/C Wagoora-Pampore transmission line (20.58 ckt-km), and 400/220 kV sub-station at Wagoora which have been completed and put in commercial operation between 1.4.1997 to 1.2.1998, matching with completion of generating station. The annual transmission charges for the period from 1.4.2001 to 31.3.2004 were decided by the Commission in its order dated 5.8.2003 in petition No 18/2002, and for the period up to 31.3.2001 by the Central Government under its notification dated 16.11.1998 which was revised by notification dated 7.5.1999.;


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