NATIONAL HYDROELECTRIC POWER CORPORATION LIMITED Vs. WEST BENGAL STATE ELECTRICITY BOARD
LAWS(ET)-2006-9-3
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on September 29,2006

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) THIS review petition has been filed by the petitioner, National Hydroelectric Power Corporation Ltd, (NHPC), a generating company, for review of order dated 9.5.2006, passed by the Commission in Petition No. 175/2004, determining the tariff in respect of Rangit Hydroelectric Project, for the period 1.4.2004 to 31.3.2009.
(2.) The petitioner has contended that there are certain fundamental errors in the said order dated 9.5.2006 and accordingly has sought review thereof. According to the petitioner, the order needs to be reviewed on account of the following errors present therein: (a) Treatment of depreciation when it exceeds the repayment of loan, (b) Computation of the balance useful life of the assets for the purpose of determining depreciation, (c) Computation of Advance Against Depreciation based on repayment of loan, (d) Computation of O&M Expenses, incurred during 1998-99 to 2002-03, (e) Computation of interest on Working Capital, and (f) Reimbursement of filing fee and expenditure incurred on publication of notices. Heard the representative of the petitioner, on admission. Admit application for review on grounds (a), (c), (d), (e) and (f) above
(3.) AS regards para 2(b) above, the petitioner has contended that the average useful life of a hydroelectric generating station should be taken as 35 years as per the prevailing practice and the balance useful life be considered accordingly for tariff purpose. It has been submitted that based on the methodology adopted by the Commission, the life of the generating station is susceptible to change whenever there is addition/deletion of some other capital asset. According to the petitioner, the methodology adopted by the Commission is erroneous as the useful life of the assets can never be 'variable'. The petitioner has also submitted that CEA always considers the useful life of a hydroelectric generating station as 35 years while considering the commercial viability of a hydro scheme.;


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