- (1.) This petition has been filed by the petitioner, NHPC for revision of annual fixed charges of Rangit Hydroelectric Power Station (3 x 20 MW) (hereinafter referred to as "the generating station") for the period 2009 -14 in terms of Regulation 6(1) of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 ("the 2009 Tariff Regulations") and for determination of tariff for the period 2014 -19 in terms of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 ("the 2014 Tariff Regulations").
(2.) The generating station located in the State of Sikkim comprises of three units of 20 MW capacity each and was declared under commercial operation on 15.2.2000. The tariff for the generating station for the period from 1.4.2004 to 31.3.2009 was approved by the Commission vide order dated 9.5.2006 in Petition No. 175/2004. Against the said order, the petitioner filed appeal (Appeal No. 138/2006) before the Appellate Tribunal for Electricity (the Tribunal) challenging amongst others, the (i) computation of correct amount of O&M expenses and (ii) computation of correct amount of maintenance spares. During the pendency of this appeal, the Commission by order dated 12.10.2009 in Petition No. 40/2009 revised the annual fixed charges for the generating station after considering the impact on account of additional capitalization/de -capitalization during the years 2004 -05 and 2005 -06. Thereafter, the Tribunal by its judgment dated 23.12.2009 allowed the prayers of the petitioner as regards the Computation of O&M expenses and Maintenance spares. With regard to O&M expenses, the Tribunal directed that the O&M expenses shall be allowed in terms of the decision of the Commission dated 28.7.2008 in R.P. No. 22/2008 (in Petition No. 107/2006) in respect of Dhauliganga HEP. The relevant portion of the judgment is extracted as under: "8. This issue has been decided by the Commission in its review order dated July, 28, 2008 in respect of Dhauli Ganga Hydroelectric Project. The decision of the Commission is set out hereunder: xxxxxx 12. In the order dated December 13, 2007, the Commission in para 51 of the order observed as under: "51. We observe that the petitioner has claimed the O&M expenses @ 1.5% of the admitted capital cost as on the date of commercial operation as pr the Tariff Regulations, 2004. However, for the year 2006 -07, the O&M expenses have been escalated @ 4% for the full year instead of considering pro rata escalation after completion of one year of DOCO. After considering pro rata escalation during 2006 -07, the O&M expenses allowed for calculation of tariff for the tariff period are as under: xxxxxxx It is thus seen that there has not been adequate discussion on the statutory provisions made in the 2004 regulations and their effect before arriving at the conclusion as per para 51, reproduced above. This prima facie, in our opinion amounts to an error of law, apparent on the face of record. Therefore, we allow review of the order dated December 13, 2007 as regards computation of O&M expenses." 9. The above decision of the Commission in DhauliGanga squarely applies to the issue in hand in this Appeal. Accordingly we direct the Commission to allow the O&M expenses as per the approach followed in its review order dated July 28, 2008."
(3.) With regard to computation of Maintenance spares for working capital, the Tribunal in its judgment held as under: "11. The issue lies in a narrow compass. The station has been commissioned on February 15, 2000. An escalation @ 6% per annum is provided for as per Clause (v) (a)(ii) of Regulation 38 of the 2004 Regulations. Regulations provide for escalation @ 6% for the full year. As the unit has been commissioned during the year 1999 -2000 on February 15, 2000, effect of pro rata escalation @ 6% can be given by considering pro rata escalation for the period February 16, 2000 to March 31, 2000 and then allowing 6% escalation in the following full year i.e. from April 01, 2000 to March 31, 2001. In this regard Sub Sec. 4 of Sec. 62 of The Electricity Act, 2003 requires that "No tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year except in respect of any changes expressly permitted in the terms of any fuel surcharge formula as may be specified". In view of this requirement of the Act it is not prudent to give effect to the annual escalation only after period of one year is completed as it would result in revision of the tariff in the middle of the tariff year. We, therefore, consider that pro rata escalation at the stipulated rate of 6% may be allowed for the period February 16, 2000 to March 31, 2000. With effect from April 01, 2000 a further escalation @ 6% per annum is payable. We order accordingly.";