- (1.) THE review applicant, Tamil Nadu Electricity Board has made this application seeking review of the order of the Commission dated 23.3.2007 in Petition No. 5/2002 determining the tariff in respect of THErmal Power Station-II of the Neyveli Lignite Corporation Ltd for the period 1.4.2001 to 31.3.2004. Review of the order has been sought on the following grounds: (a) Award of reimbursement of FERV based on actuals in addition to capitalization in respective years. (b) Non-deduction of 1/5th of the value of the mandatory spares capitalized from the value of spares considered for working capital requirement. (c) Revision of target availability after considering the additional mine capacity. (d) Station Heat Rate. (e) O & M expenses in respect of Mine-I Expansion & Mine-I (A). (f) Gross block in respect of Mine-I Expansion & Mine-II, Stage-I.
(2.) We have heard the representative of the review applicant. Review petition is admitted on the grounds mentioned in sub-paras (a) and (d) of Para 1 above. We do not find any merit in other grounds for the reasons recorded in the succeeding paragraphs. Non- deduction of 1/5th of value of Spares for working capital requirement In accordance with the provisions of Central Electricity Regulatory Commission (Terms & Conditions of Tariff) Regulations, 2001 (hereinafter referred to as "the tariff regulations, 2001"), maintenance spares at actual subject to a maximum of 1% of the capital cost but not exceeding one year's requirement less value of 1/5th of initial spares already capitalized for the first five years is permissible. Since the generating station was more than five years old, the Commission had, without deducting 1/5th of initial spares, allowed actual spare consumption/one year requirement of maintenance spares restricted to 1% of the capital cost as on 1.4.2001.
(3.) THE review applicant has submitted that the decision of the Central Commission for not considering 1/5th of the initial spares while calculating the maintenance spares is not in conformity with the provisions of Tariff Regulations, 2001 which needs to be rectified in review.;