- (1.) THIS petition has been filed for revision of transmission tariff for additional capital expenditure incurred during 2006-07 (2nd additional capitalization) for 400 kV D/C Kaiga-Narendra transmission line (Asset-I) and 400/220 kV sub-station at Narendra with 1x315 MVA transformer (Asset-II) for the period from 1.4.2006 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 sought approval for transmission charges for 2nd 315 MVA Auto Transformer at Narendra sub-station associated with Kaiga-Narendra transmission system (Asset-III) (part of Asset-II) for the period from 1.9.2006 to 31.3.2009, after accounting for additional capitalization of Rs. 35.10 lakh during 2006-07, also based on the 2004 regulations. The petitioner has also prayed for reimbursement of expenditure from the beneficiaries incurred towards publishing of notices in newspapers and the petition filing fee.
(2.) The details of transmission assets and their dates of commercial operation as indicated by the petitioner are as under: JUDGEMENT_360_TLET0_20080.htm 3. The transmission charges for Asset-I and Asset-II were approved by the Commission in its order dated 15.3.2007 in Petition No. 128/2006 after accounting for additional capitalization for the period up to 31.3.2006. The provisional transmission charges for Asset-III were approved vide order dated 29.1.2007 in Petition No. 149/2007. The administrative approval and expenditure sanction for Kaiga-Narendra Transmission System, which primarily relates to Asset-I was accorded by the Board of Directors of the petitioner company vide Memorandum dated 27.4.2000 at an estimated cost of Rs 7599 lakh (2nd quarter, 1999 price level), which included IDC of Rs. 912 lakh. Subsequently, revised cost estimate for Asset-I was approved by Board of Directors of the petitioner company vide Memorandum dated 30.8.2005 at an estimated cost of Rs 18161 lakh (1st quarter, 2005 price level), including IDC of Rs. 3131 lakh. The administrative approval and expenditure sanction for Asset-II, which also covered Asset-III was accorded by the Board of Directors of the petitioner company vide Memorandum dated 27.2.2003 at an estimated cost of Rs 6051 lakh, which includes IDC of Rs. 487 lakh. Subsequently, revised cost estimate for Asset-II and Asset-III was approved by Board of Directors of the petitioner company vide Memorandum dated 26.2.2008 at an estimated cost of Rs 6231 lakh, including IDC of Rs. 223 lakh.
(3.) ALL the three assets form part of Kaiga-Narendra Transmission System, though investment approvals for Asset-I and Asset-II & Asset-III (combined) was accorded separately. During the hearing, the issue of separate approvals was raised. The representative of the petitioner explained that the decision to construct Asset-II and Asset-III was taken at a later stage in view of Ministry of Power letter dated 16.12.2002, and accordingly the approval was accorded separately. We find that though the approvals are different, the assets are the components of same transmission system. For the purpose of tariff, we have considered them together. The relevant details of the approved cost and completion cost of the assets noted at para 2 above are as under: JUDGEMENT_360_TLET0_20081.htm JUDGEMENT_360_TLET0_20082.htm 6. The petitioner has claimed the transmission charges as under: JUDGEMENT_360_TLET0_20081.htm JUDGEMENT_360_TLET0_20083.htm 7. The details submitted by the petitioner in support of its claim for interest on working capital are given hereunder: JUDGEMENT_360_TLET0_20081.htm JUDGEMENT_360_TLET0_20084.htm 8. The reply to the petition has been filed by Tamil Nadu Electricity Board. In response to the public notices published by the petitioner in accordance with the procedure specified by the Commission, no comments have been received from the general public. CAPITAL COST;