BEFORE THE HON BLE T AMIL NADU ELECT RI CIT Y … Petition/2017/TANTRANSCO-ARR … · 3. APTEL Appellate Tribunal 4. ARR Annual Revenue Requirement 5. AS Accounting Standard 6. AT&C

BEFORE THE

HON’BLE T AMIL NADU ELECT RI CIT Y REGULATORY COMMI SSI ON

AT CHENNAI

Filing No :

Case No : M.P.No of 2017

IN THE MATTER OF : Praying for Approval of Aggregate Revenue

Requirement (ARR) for the financial year

2016-17 to 2018-19.

Tamil Nadu Transmission Corporation Ltd., (TANTRANSCO),

N.P.K.R.R Malaigai, 144, Anna Salai, Chennai -2.

……. Petitioner

Versus

NIL ---- Respondent

The petitioner named above respectfully showeth as under:

1. It is submitted that as per section 64 (1) of the Electricity Act,

2003 and Tariff Regulation 5 of the TNERC (Terms and Conditions

of Determination of Tariff) Regulations, 2005, the licensee

(TANTRANSCO) shall file Aggregate Revenue Requirement (ARR)

before the Hon’ble TNERC on or before 30th November of each

year.

2. It is respectfully submitted that a Miscellaneous Petition has

already been filed by this petitioner before this Hon’ble Commission

praying to grant time extension for filing ARR upto 31st January

2017 for the reason that the TANTRANSCO was in the process of

preparing the ARR which involves of voluminous data from the field

in respect of schemewise capital expenditure and other relevant data

required for filing the ARR.

3. It is respectfully submitted that the Aggregate Revenue

Requirement for the control period 2016-17 to 2018-19 is being

filed alongwith this petition without any tariff revision for the

forthcoming financial year 2017-18 before this Hon’ble Commission

for approval.

4. It is respectfully submitted that in view of the reasons submitted

above, it is prayed that this Hon’ble Commission may be pleased

“To approve the Aggregate Revenue Requirement (ARR) for the

financial year 2016-17 to 2018-19 and pass any other order as the

Hon’ble Commission may deem fit.

Petitioner

BEFORE THE HON’BLE

TAMIL NADU ELECTRICITY REGULATORY COMMISSION,

PETITION

FOR

FINAL TRUE-UP FOR FY 2011-12 TO FY 2015-16,

&

AGGREGATE REVENUE REQUIREMENT

FOR THE

FY 2016-17 TO FY 2018-19

BY TAMIL NADU TRANSMISSION CORPORATION LTD

CHENNAI

Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19

January 2017 Page II

Table of Contents

1. INTRODUCTION ............................................................................................................................................. 1

1.1 PREAMBLE ................................................................................................................................................ 1

1.2 BACKGROUND ........................................................................................................................................... 1

1.3 FINAL TRANSFER SCHEME ............................................................................................................................ 2

2. OVERALL APPROACH FOR PRESENT FILING .................................................................................................... 4

2.1 PRESENT APPROACH................................................................................................................................... 4

2.2 DATA/INFORMATION FOR ARR-APR ............................................................................................................ 5

2.3 REGULATORY FRAMEWORK .......................................................................................................................... 5

2.4 SUMMARY OF ASSUMPTIONS ....................................................................................................................... 5

3. FINAL TRUE UP FOR FY 2011-12 TO FY 2015-16 ............................................................................................. 7

3.1 BACKGROUND ........................................................................................................................................... 7

3.2 OPERATION & MAINTENANCE EXPENSES ........................................................................................................ 7

3.3 CAPEX AND CAPITALISATION ..................................................................................................................... 10

3.4 GFA AND DEPRECIATION .......................................................................................................................... 12

3.5 INTEREST CALCULATIONS ........................................................................................................................... 13

3.6 WORKING CAPITAL AND INTEREST ON WORKING CAPITAL ............................................................................... 14

3.7 REASONABLE RATE OF RETURN ON EQUITY ................................................................................................... 15

3.8 OTHER INCOME ....................................................................................................................................... 16

3.9 OTHER DEBITS, CAPITALISED EXPENSES, EXTRA-ORDINARY ITEMS & PRIOR PERIOD EXPENSES................................ 17

3.10 INCENTIVE .............................................................................................................................................. 18

3.11 REVENUE FROM TRANSMISSION CHARGES .................................................................................................... 18

3.12 AGGREGATE REVENUE REQUIREMENT AND REVENUE GAP ............................................................................... 19

4. ANNUAL REVENUE REQUIREMENT FOR FY 2016-17 TO FY 2018-19 ............................................................. 20

4.1 BACKGROUND ......................................................................................................................................... 20

4.2 OPERATION & MAINTENANCE EXPENSES ...................................................................................................... 20

4.3 CAPITALISATION OF REVENUE EXPENSES ....................................................................................................... 23

4.4 CAPITAL EXPENDITURE AND CAPITALISATION ................................................................................................. 23

4.5 GFA AND DEPRECIATION .......................................................................................................................... 26

4.6 INTEREST CALCULATION ............................................................................................................................ 27

4.7 WORKING CAPITAL AND INTEREST ON WORKING CAPITAL ............................................................................... 28

4.8 REASONABLE RETURN ON EQUITY ............................................................................................................... 28

4.9 OTHER DEBITS AND PRIOR PERIOD ITEMS ...................................................................................................... 29

4.10 INCENTIVES ............................................................................................................................................. 29

4.11 INSURANCE ............................................................................................................................................. 29

4.12 OTHER INCOME ....................................................................................................................................... 30

4.13 OTHER DEBITS AND PRIOR PERIOD INCOME .................................................................................................. 31

4.14 ANNUAL REVENUE REQUIREMENT ............................................................................................................... 31

5. PRAYER TO THE PETITION ............................................................................................................................ 32


January 2017 Page III

LIST OF TABLES

Table 1: Employee Expenses for FY 2011-12 to 2015-16 - Rs. Crs ................................................................ 8

Table 2: A&G Expense for FY 2011-12 to FY 2015-16 – Rs. Crs ..................................................................... 9

Table 3: R&M Expense for FY 2011-12 to FY 2015-16 – Rs. Crs .................................................................... 9

Table 4: R&M Expenses as compare to GFA – Rs. Crs ................................................................................ 10

Table 5: O&M Expenditure for FY 2011-12 to FY 2015-16 – Rs. Crs ........................................................... 10

Table 6: Capital Expenditure and Capitalisation from the FY 2011-12 to FY 2015-16 – Rs. Crs ................. 11

Table 7: Transmission Capacity – Lines and Substation Commissioned ..................................................... 12

Table 8: Enhancement of Power Transformers .......................................................................................... 12

Table 9: GFA and Depreciation for FY 2011-12 to FY 2015-16 – Rs. Crs ..................................................... 12

Table 10: Interest and Finance Charges for FY 2011-12 to FY 2015-16 – Rs. Crs ....................................... 14

Table 11: Interest on Working Capital for FY 2011-12 to FY 2015-16 – Rs. Crs .......................................... 15

Table 12: RoE for FY 2011-12 to FY 2015-16 – Rs. Crs ................................................................................ 16

Table 13: Other Income for FY 2011-12 to FY 2015-16 – Rs. Crs ................................................................ 16

Table 14: Other Debits, Capitalised Expenses, Extra Ordinary Items & Prior Period Expenses – Rs. Crs ... 18

Table 15: Incentive for FY 2011-12 to FY 2015-16 - Rs. Crs ........................................................................ 18

Table 16: Revenue from FY 2011-12 to FY 2015-16 – Rs. Crs ..................................................................... 18

Table 17: Aggregate Revenue Requirement for FY 2011-12 to FY 2015-16 – Rs. Crs ................................. 19

Table 18: Employee Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs....................................................... 21

Table 19: A&G Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs ............................................................... 22

Table 20: R&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs .............................................................. 22

Table 21: O&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs .............................................................. 23

Table 22: Capitalisation of expenses for FY 2016-17 to FY 2018-19 – Rs. Crs ............................................ 23

Table 23: Summary of schemewise CAPEX and Capitalisation for FY 2016-17 to FY 2018-19 – Rs. Crs ..... 24

Table 24: Sources of funding of CAPEX – Rs. Crs ........................................................................................ 24

Table 25: GFA and Depreciation for FY 2016-17 to FY 2018-19 – Rs. Crs ................................................... 27

Table 26: Interest and Finance Charges for FY 2016-17 to FY 2018-19 - Crs .............................................. 28

Table 27: Interest on Working Capital for FY 2016-17 to FY 2018-19 – Rs. Crs .......................................... 28

Table 28: RoE for FY 2016-17 to FY 2018-19 – Rs. Crs ................................................................................ 29

Table 29: Impact of CERC order for 5 Inter-State Transmission Lines – Rs. Crs.......................................... 30

Table 30: Other Income from FY 2016-17 to FY 2018-19 – Rs. Crs ............................................................. 30

Table 31: Annual Revenue Requirement for FY 2016-17 to FY 2018-19 – Rs. Crs ...................................... 31

List of Annexure

Annexure 1: Final Transfer Scheme notification dated August 2015

Annexure 2: Audited Balance Sheet of TANTRANSCO for 5 years (FY 12 to FY 16)


January 2017 Page IV

List of Abbreviations

Sr.

No Abbreviations Descriptions

1. A&G Administration and General Expenses

2. APR Annual Performance Review

3. APTEL Appellate Tribunal

4. ARR Annual Revenue Requirement

5. AS Accounting Standard

6. AT&C Aggregate Technical & Commercial

7. CAG Comptroller Auditor General

8. CAPEX Capital Expenditure

9. CERC Central Electricity Regulatory Commission

10. Ckt Km Circuit Km

11. CPS Contributory Pension Scheme

12. Crs Crores

13. CTU Central Transmission Utility

14. DA Dearness Allowance

15. EA Electricity Act 2003

16. FY Financial Year

17. GFA Gross Fixed Assets

18. GoTN Government of Tamil Nadu

19. Hr Hour

20. HTLS High Temperature Low Sag

21. IPP Independent Power Producer

22. JICA Japan International Cooperation Agency

23. KERC Karnataka Electricity Regulatory Commission

24. KPTCL Karanataka Power Transmission Corporation Limited

25. kV kilo Vatt

26. LL Line Loss

27. MERC Maharashtra Electricity Regulatory Commission

28. MoP Ministry of Power


January 2017 Page V

Sr.

No Abbreviations Descriptions

29. MoU Memorandum of Understanding

30. MPP Merchant Power Plant

31. MVA Mega Volt Ampere

32. MW Megawatt

33. MYT Multi-Year Tariff

34. NCES Non-Conventional Energy Sources

35. Nos Numbers

36. O&M Operation & Maintenance

37. PFC Power Finance Corporation

38. R&M Repairs & Maintenance

39. R-APDRP Restructured Accelerated Power Development and

Reforms Programme

40. REC Rural Electrification Corporation

41. RoE Return on Equity

42. RoW Right of Way

43. SLDC State Load Despatch Centre

44. SS Substation

45. STOA Short Term Open Access

46. STU State Transmission Utility

47. TANGEDCO Tamil Nadu Generation and Distribution Corporation Ltd

48. TANTRANSCO Tamil Nadu Transmission Corporation Ltd

49. TNEB Tamil Nadu Electricity Board

50. TNERC Tamil Nadu Electricity Regulatory Commission

51. TPC Tata Power Company

52. UG Underground


January 2017 Page 1

1. INTRODUCTION

1.1 Preamble

1.1.1 This section presents the background and reasons for filing of this Petition.

1.2 Background

1.2.1 Tamil Nadu Electricity Board (TNEB) came into existence on 1st July 1957 and has

been in the business of generation, transmission and distribution of electricity in

the state of Tamil Nadu. The Electricity Act 2003 mandates unbundling of State

Electricity Boards under section 131.

1.2.2 Over the last few decades, there has been significant interest in opening the

Electricity sector to competition and, by extension, interest in designing

electricity markets to push the sector toward more efficient outcomes.

Accordingly, the Electricity Act, 2003 (“the Act” or “EA 2003”) was enacted with

effect from June 10, 2003 which requires the State Governments to initiate major

changes in the Industry Structure and Operations of the state power sector. The

objective of the enactment was to make competition feasible or desirable in a

sector that has been vertically integrated and highly regulated and State owned.

1.2.3 In line with the Electricity Act 2003, Sections 131 to 134 mandates reorganisation

of the State Electricity Boards into functional entities and corporatisation of the

same. Regardless of the design of the electricity sector reforms, the ultimate goal

of reforms is to make the sector more efficient. Therefore, in order to meet the

requirements under the Act and to become more efficient and competitive, the

Government of Tamil Nadu (GoTN) and the Tamil Nadu Electricity Board (TNEB)

proposed to restructure the state power sector.

1.2.4 In accordance with the above mandate the Government of Tamil Nadu (GOTN)

has given in principle approval for the re-organization of TNEB by the

establishment of a holding company, named TNEB Ltd and two subsidiary

companies, namely Tamil Nadu Transmission Corporation Limited (TANTRANSCO)

and Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO)

vide G.O.Ms.No.114 Energy (B2) Department dated 8th Oct 2008 with the

stipulation that the aforementioned companies shall be fully owned by

Government.

1.2.5 Based on the approval of Memorandum of Association and Articles of Association

of TANTRANSCO by the Government of Tamil Nadu vide G.O.Ms.No.38 Energy

(B2) Department dated 21st May 2009, Tamil Nadu Transmission Corporation Ltd

(TANTRANSCO) was incorporated on 15th June 2009 with an authorized share

capital of Rs. 5.00 Crores. The Certificate of commencement of business has been

obtained for the TANTRANSCO on 11th Dec 2009 and started functioning with

effect from 14th Jan 2010 onwards.


January 2017 Page 2

1.2.6 The proposal for Assets Transfer and Employee transfer called as Tamil Nadu

Electricity Board (Reorganization and Reforms) Transfer Scheme 2010 has been

notified by Government of Tamil Nadu vide G.O. (Ms).No.100 Energy (B2)

Department dated 19th Oct 2010 with the effective date of implementation as 1st

Nov 2010. Based on the above notification TNEB has been unbundled and re-

organized from 1st Nov 2010.

1.2.7 As per the Transfer Scheme the Provisional period for transfer of Assets is 1 year

and for transfer of employees is 3 years. From 1st Nov 2010 onwards all the

employees of the erstwhile TNEB shall stand transferred to and absorbed in

TANGEDCO on a provisional basis and assigned to the services of the relevant

transferee viz., TANTRANSCO and TNEB Ltd., on deputation on “as-is-where-is”

basis until further notice for permanent absorption into respective entities.

1.2.8 Subsequently, as per the request of TNEB Limited, the second provisional transfer

scheme was notified by the State Government vide G.O. (Ms.) No.2, Energy (B2)

department, dated 2ndJanuary 2012 with amendment in the restructuring of

Balance Sheet of TNEB for the successor entities i.e. TANGEDCO and

TANTRANSCO, considering the audited balance sheet of TNEB for FY 2009-10 and

have extended the provisional time for final transfer of assets and liabilities to

the successor entities of erstwhile TNEB upto 31st Oct 2012.

1.2.9 Subsequently, the audited balance sheet as on 31.10.2010 was ready and as a

result final transfer scheme was notified by the Government of Tamilnadu vide

G.O.Ms No.49, Energy (B1) department, dated 13th August 2015, which is the final

amendment to the earlier transfer scheme (G.O. (Ms).No.100 Energy (B2)

Department dated 19th Oct 2010 and G.O. (Ms.) No.2, Energy (B2) department,

dated 2nd January 2012) which gave effect to the transfer of assets and liabilities

to successor entities of erstwhile TNEB as on 01.11.2010.

1.2.10 Post restructuring, TANTRANSCO as per the notification was provided with the

function of transmission of electricity in the State of Tamil Nadu.

1.2.11 Also, TANTRANSCO has been notified as an State Transmission Utility under

section 39 of the Electricity Act 2003 and TANTRANSCO is acting as a State

Transmission Utility and a Transmission Licensee also and has to comply with the

duties specified in section 39 and 40 of the Electricity Act 2003.

1.2.12 The enactment of the Electricity Act, 2003 has opened up the power sector for

competition in all spheres of activities. TANTRANSCO as the State Transmission

Utility is entrusted with the duty of transmitting the power generated in the state

from the generating stations to the destination or the load centres.

1.3 Final Transfer Scheme

1.3.1 In terms of the Transfer Scheme notification dated 13th August 2015, the

Government of Tamil Nadu had assigned the Assets and Liabilities (as on


January 2017 Page 3

31.10.2010) to TANTRANSCO on a final basis. The notified copy of Transfer

Scheme is attached as per Annexure 1.

1.3.2 Impact of Final Balance Sheet:

The transfer value of the Fixed Assets forming part of Schedules A, B and C of

the respective Transferees have been done at book valuesexcluding the land,

buildings, plant and machineries, lines, cables and network, whichare revalued

based on the guideline value resulting into Revaluation Reserve ofRs.7164

Crores for TANTRANSCO.

For the Purpose of Return on Equity, Equity Capital of Rs. 1506.15 Crores

has been considered as per the final transfer scheme.

Long Term Loan has been considered as Rs. 12695 Crores in line with the

notified balance sheet and interest is calculated on the actual basis which

was accrued from 1st November 2010 to 31st March 2011 and the

differential treatment between provisional and final transfer scheme has

been adjusted in FY 2015-16. Some of the generic loans such as bonds,

loan from HUDCO, LIC, Tamil Nadu Powerfin and Medium Term Loan is

availed by erstwhile TNEB and has been considered as the long term loan

of TANTRANSCO.

The allocation of fixed assets and Loans are similar and has been

transferred under the Final Transfer scheme resulting in additional burden

of the debt obligation on TANTRANSCO. It is requested to the Hon’ble

Commission to consider the fund flow issues resulted due to such

arrangement.

The transfer value of the fixed assets are determined based on revenue

potentials of the asset and in line with the provisions of the Act.

The Opening balance sheet of TANTRANSCO includes assets and liabilities

of SLDC

TANTRANSCO submits that the opening balance sheet as per final transfer

scheme has been considered for the calculation of ARR in the given

petition.

It is submitted that the impact of the final transfer scheme has been

carried out under prior period item in FY 2015-16.

TANTRANSCO request the Hon’ble Commission to allow the variation in

expenses with respect to Final transfer scheme and allow the same to

adjust in the ARR in the current petition.


January 2017 Page 4

2. OVERALL APPROACH FOR PRESENT FILING

2.1 Present Approach

2.1.1 As per the TNERC (Terms and Conditions for Determination of Tariff) Regulations,

2005, the licensee has to file the Aggregate Revenue Requirement (ARR) on or

before 30th November of each year in the format prescribed, containing the

details of the expected aggregate revenue that the licensee is permitted to

recover at the prevailing tariff and the estimated expenditure. In line with

the same, TANTRANSCO is filing the petition for determination of ARR for

consideration of the Hon’ble Commission in the formats laid down for providing

information relating to past, current and future performance.

2.1.2 Further, as per TNERC (Terms and Conditions for Determination of Tariff)

Regulations, 2005 and its subsequent amendments, the application for

determination of ARR for Transmission Licensee shall be accompanied by

information in the formats provided by the Hon’ble Commission for the previous

years, current year and ensuing years. Thus, TANTRANSCO is filing the petition for

its transmission businesses alongwith the required formats.

2.1.3 As per the Amendment to Tamil Nadu Electricity Regulatory Commission Terms

and conditions for determination of tariff for intra state transmission /

Distribution of Electricity under MYT framework Regulations 2009 dated 28th

November 2012, the control period is defined as:

“(i) Control Period: The control period under the MYT framework shall be for a duration

of 3 years. The year preceding the first year of the control period shall be the base

year.;”.

Based on the above amendment, the control period for TANTRANSCO will be

from FY 2013-14 to FY 2015-16 and then from FY 2016-17 to FY 2018-19.

2.1.4 In line with the same, TANTRANSCO filed its MYT Petition for the Control Period

(FY 2013-14 to FY 2015-16) and Tariff Determination for consideration of the

Hon’ble Commission. Based on this petition and after considering views of the

State AdvisoryCommittee and the public, Tamil Nadu Electricity Regulatory

Commission passed the second Order on 20-06-2013.

2.1.5 The Commission initiated suo-motu proceedings for tariff determination

inaccordance with section 62 and 64 of the Act and determined the ARR for FY

2014-15 in its order dated 11.12.2014.

2.1.6 In accordance with section 62 of the Electricity Act 2003 and Regulation 5 of the

TNERC (Terms and Conditions for Determination of Tariff) Regulations, 2005,

TANTRANSCO is now filing this present petition for approval of the True-up from

FY 2011-12 to FY 2015-16 based on the audited annual accounts. This Petition

also includes the determination of Aggregate Revenue Requirement (ARR) for FY

2016-17 to FY 2018-19.


January 2017 Page 5

2.1.7 The approved figures considered for FY 2011-12 to FY2014-15 are in line with

suo-moto order dated 11th December 2014 and for FY 2015-16, the reference

considered is in line with the tariff order dated 20thJune 2013.

2.2 Data/Information for ARR-APR

2.2.1 This petition contains the truing-up of the ARR of FY 2011-12 to FY 2015-16,

figures of which are based upon the audited annual accounts which is annexed to

this petition as per Annexure 2. The ARR for FY 2016-17 to FY 2018-19 has been

projected based on the past performance and expected growth in each of the

cost element and revenue for the ensuing year. TANTRANSCO has studied the

past trends and other internal and external developments to estimate the

projections for FY 2016-17 to FY 2018-19.

2.2.2 The ARR indicated in the above Para, is inclusive of Foreign Exchange Rate

Variation (applicable to JICA and KFW Loans) and exclusive of any statutory taxes,

levies, duties, cess, filing fees or any other kind of imposition(s) and/ or other

surcharges etc. whatsoever imposed/ charged by any Government

(Central/State) and/ or any other local bodies/ authorities/regulatory authorities

in relation to transmission of electricity, environmental protection, and/ or in

respect of any of its installation associated with the Transmission system and the

same shall be borne and additionally paid by the beneficiaries to the applicant

and the same shall be charged in the monthly bills raised by the petitioner on the

beneficiaries. The applicant shall also claim the filing fee in the same manner.

2.2.3 The current Petition filed by TANTRANSCO is for the approval of Annual Revenue

Requirement from FY 2011-12 to FY 2018-19.

2.3 Regulatory Framework

2.3.1 TANTRANSCO has considered Norms as specified by TNERC Tariff Regulations

2005, TNERC MYT Regulations 2009 and its subsequent amendment. However

certain deviation has been considered with a justification for the purpose of this

Petition and request the Hon’ble Commission to approve the same.

2.4 Summary of Assumptions

2.4.1 TANTRANSCO has premised its ARR petition while projecting its revenue

requirements on the following:

a. The figures of FY 2015-16have been considered for creation of baseline data

against various heads.

b. Escalation Factors have been considered for projecting certain expenses on a

realistic basis.


January 2017 Page 6

c. In the tariff order dated 20th June 2013, the Hon’ble Commission has

undertaken true-up for FY 2010-11 and therefore the same has not been

considered in the submission.

d. The impact of the final transfer scheme has been considered in FY 2015-16 as

the final transfer scheme was issued in FY 2015-16. The adjustment of the

revenue expenditure has been undertaken in the prior period items in line

with the accounting standard.

e. Considering the debt profile allotted to TANTRANSCO, it has claimed the total

actual interest in line with the accounts. However, the debt repayment is

much higher than the depreciation amount claimed in the petition resulting in

a major cash flow issue for TANTRANSCO.

f. Under the final transfer scheme, the clean balance sheet was provided to the

successor entities resulting in the revaluation of the assets. TANTRANSCO has

claimed the depreciation on the total book value of the assets and has not

claimed any depreciation on the revalued assets.


January 2017 Page 7

3. FINAL TRUE UP FOR FY 2011-12 TO FY 2015-16

3.1 Background

3.1.1 TANTRANSCO in its previous petitions had submitted the provisional figures of

ARR for the year FY 2011-12 onwards. Now, TANTRANSCO in this chapter submits

the actual performance based on the audited accounts for true up from FY 2011-

12 to FY 2015-16 whereby the impact of the final transfer scheme has been

considered in FY 2015-16. This chapter summarizes each of the components of

Annual Transmission Charges for FY 2011-12 to FY 2015-16 and requests the

Hon’ble Commission to true - up the Annual Revenue Requirement.

3.1.2 The approved figures considered for FY 2011-12 to FY2014-15 are in line with

suo-moto order dated 11th December 2014 and for FY 2015-16, the reference

considered is in line with the tariff order dated 20th June 2013.

3.1.3 A comparison of the figures approved by the Hon’ble Commission and figures

based on audited accounts are shown in the table under relevant sections

discussed herein:

3.2 Operation &Maintenance Expenses

3.2.1 Operation & Maintenance Expenses consists of three elements viz Employee

Expenses, A&G Expense and R&M Expense:

Employee expenses comprise of salaries, dearness allowance, bonus, terminal

benefits in the form of pension & gratuity, leave encashment and staff welfare

expenses;

Administrative expenses mainly comprise of rents, telephone and other

communication expenses, professional charges, conveyance and travelling

allowances and other debits;

Repairs and Maintenance Expenses go towards the day to day upkeep of the

transmission network of the Company and form an integral part of the

Company’s efforts towards reliable and quality power supply as also in the

reduction of losses in the system.

3.2.2 Employee Expense:

3.2.2.1 As stated in the paragraph above, Employee Expense consists of Basic Salary,

Dearness Allowance, Bonuses, Medical expense reimbursement and Terminal

Benefits etc.The Employee Expenses for TANTRANSCO for the year FY 2011-

12to FY 15-16is outlined in the table below:


January 2017 Page 8

Table 1: Employee Expenses for FY 2011-12 to 2015-16- Rs. Crs

Particulars Approved Audited Approved Audited Approved Actual Approved Actual Approved Actual

Salary 190.94 182.92 198.58 185.95 206.52 209.27 218.34 229.74 223.38 257.04

Dearness Allowance 106.11 103.72 143.47 132.41 185.87 184.90 241.31 234.66 245.45 299.43

Other Allowances 14.96 14.88 15.56 14.37 16.19 16.66 17.11 16.71 17.51 18.51

Overtime Wages 3.14 5.37 3.27 1.31 3.40 1.68 3.59 6.67 3.67 12.38

Bonus 6.28 5.47 6.53 6.16 6.79 6.96 7.18 7.07 7.35 7.76

Leave Travel Assistance - 0.05 - 0.03 - 0.02 - 0.02 - 0.04

Earned Leave Encashment - 19.86 - 20.15 - 23.45 - 26.71 - 33.84

Medical Expense reimbursement - 0.37 - 0.33 - 0.53 - 0.39 - 0.23

Payment Under Workman'S

Compensation And Gratuity - - - - - 2.92 - 4.79 - 4.70

Board's Contribution to CPS - 5.91 - 4.61 - 7.24 - 9.09 - 13.25

Staff Welfare Expenses - 0.20 - 0.11 - 0.18 - 0.60 - 0.41

Terminal Benefits 230.52 22.06 239.74 214.46 249.33 246.19 263.59 293.63 269.67 317.40

Other Expenses 24.77 - 25.76 - 26.79 - 28.32 - 28.97 -

Grand Total 576.72 360.81 632.91 579.89 694.89 700.01 779.44 830.08 796.00 964.99

FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13

3.2.2.2 The basic reasons for deviation in Employee expenses is increase in Terminal

benefits and Dearness allowance. Also, While finalising the Accounts for the

FY 2012-13 it was decided to share the total terminal benefits that was totally

incurred by TANGEDCO in the ratio of 6.:1 between TANGEDCO and

TANTRANSCO and accordingly the 1/7 of the total terminal benefits was

accounted under Employees cost in the account of TANTRANSCO. For the FY

2011-12 the respecive share amount was accounted under prior period

expenses.

3.2.3 A&G Expenses:

3.2.3.1 Administration and General Expenses consists of expenses pertaining to Rent,

Rates, Taxes, Telephone and Postage, Printing and Stationary, Electricity and

Water Charges, Advertisements Expenses etc. Actual A&G Expense for the FY

2011-12 to FY 2015-16 is as shown below:-


January 2017 Page 9

Table 2: A&G Expense for FY 2011-12 to FY 2015-16 – Rs. Crs


Rent, Rates & Taxes 0.44 0.88 0.70 0.67 0.81

Telephone, Postage & Telegrams 0.89 1.16 1.09 1.05 1.12

Consultancy Charges 0.10 0.55 2.64 0.26 -

Conveyance & Travel 8.74 10.95 10.28 12.67 13.83

Registrar of Companies 1.97 0.29 0.02 - -

Insurance 0.04 0.07 0.07 0.04 0.08

Fees & Subscriptions 0.22 0.02 0.01 0.00 0.01

Books & Periodicals 0.01 0.00 0.00 0.00 0.01

Printing & Stationery 0.61 0.52 0.42 0.41 0.41

Advertisement Expenses 0.08 0.07 0.08 0.12 0.20

Petty Office Maintenance Expense 0.70 0.67 0.15 0.15 0.23

Electricity Charges 0.36 0.47 1.28 0.90 1.02

Water Charges / Cold weather expenses 0.23 0.14 0.20 0.20 0.22

Miscellaneous Expenses 0.59 0.28 0.82 1.16 0.94

Legal Charges 0.13 0.65 1.01 0.24 1.11

Audit Fee/Statutory Audit Fee 0.04 0.05 0.06 0.07 0.07

Technical Fees - 0.03 0.06 0.06 0.08

Freight Material related Expenses 0.92 1.27 1.86 1.72 2.49

Other Purchase Related Expenses 0.14 0.14 0.41 0.17 0.16

Entertainment Charges 0.04 - - - -

Training Expense 0.20 0.03 0.08 0.26 0.15

Public Expenses / Other professinal charges 0.03 0.03 0.06 0.00 0.00

Watch and Ward Expense 3.15 5.01 5.33 6.19 7.63

Honororium (Food Allwo.) for SO in Chennai - - - - 0.03

Total Admin and General Expenses 17.40 19.62 19.45 23.27 20.23 26.62 21.38 26.34 21.88 30.61

FY 2015-16FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15

3.2.3.2 TANTRANSCO request the Hon’ble Commission to approve the actual A&G

cost as per the audited balance sheets.

3.2.4 Repair & Maintenance Expenses:

3.2.4.1 R&M Expenses are generally incurred on maintaining the transmission assets

in order to ensure uninterrupted operations. TANTRANSCO would like to

submit that the current infrastructure of transmission system is old and the

majority of the assets has already lapsed their life. To maintain the assets in a

more efficient way, TANTRANSCO has been carrying out the repair and

maintenance activities. The R&M expense for the year FY 2011-12to FY 2015-

16 is shown below:

Table 3: R&M Expense for FY 2011-12 to FY 2015-16 – Rs. Crs

Details


Plant & Machinery 3.73 3.64 3.88 5.21 4.03 8.30 4.26 6.63 4.36 8.76

Buildings 0.08 0.08 0.09 0.02 0.09 0.47 0.10 0.53 0.10 0.16

Civil Works 0.26 0.29 0.27 0.19 0.28 0.24 0.30 0.61 0.31 0.43

Lines, Cables Networks & DTR Repair 3.45 3.42 3.59 1.64 3.74 2.80 3.95 2.51 4.04 3.38

Vehicles 0.37 0.37 0.38 0.31 0.40 0.42 0.42 0.44 0.43 0.49

Office Equipments 0.15 0.16 0.16 0.17 0.17 0.32 0.18 0.30 0.18 0.31

Furniture & Fixtures 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01

Total Expenses 8.05 7.98 8.38 7.53 8.71 12.55 9.21 11.02 9.42 13.53

FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13


January 2017 Page 10

3.2.4.2 It is submitted that the R&M expenses as compare to GFA is under 1% which

is far below than the approach adopted by the Hon’ble Commission in its last

suo-moto tariff order for consideration of 3.3% of GFA. The same is

highlighted in the table below:

Table 4: R&M Expenses as compare to GFA – Rs. Crs

Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

R&M Expenses 7.98 7.53 12.55 11.02 13.53

Average GFA 4,558 4,859 5,741 8,114 10,854

% of R&M Expenses 0.18% 0.16% 0.22% 0.14% 0.12%

3.2.4.3 TANTRANSCO request the Hon’ble Commission to approve the actual R&M

cost as per the audited balance sheets.

3.2.5 Operation and Maintenance Expenses

3.2.5.1 Based on the above tables, the actual performance related to O&M Expenses

(Pre-capitalisaiton) for the year FY 2011-12to FY 2015-16is outlined in the

table below:

Table 5: O&M Expenditure for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual

Employee Expense 576.72 360.81 632.91 579.89 694.89 700.01 779.44 830.08 796.00 964.99

Administration & General Expense 17.40 19.62 19.45 23.27 20.23 26.62 21.38 26.34 21.88 30.61

Repair & Maintenance Expense 8.05 7.98 8.38 7.53 8.71 12.55 9.21 11.02 9.42 13.53

Total 602.17 388.41 660.74 610.69 723.83 739.18 810.03 867.44 827.30 1,009.13

FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13

3.2.5.2 As seen from the above table, the actual O&M expense for the year FY 2011-

12 was Rs.388.41 Crs and FY 2012-13 was Rs.610.69 Crs which is lower than

the cost as approved by the Hon’ble Commission. Also, for the year FY 2013-

14 was Rs. 739.18Crs, for FY 2014-15 was Rs.867.44 Crs and for FY 2015-16

was Rs.1009.13 Crs.Therefore, TANTRANSCO requests the Hon’ble

Commission to approve the same.

3.2.5.3 TANTRANSCO submits that the staff transfer scheme is not yet been finalised

and employees are working on a deputation basis on “As is where is basis”.

TANTRANSCO request Hon’ble Commission to consider such additional cost

post final staff transfer as and when arises.

3.3 CAPEX and Capitalisation

3.3.1 Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v)of the Tariff

Regulation under MYT framework specifies that the licensee shall get the capital

investment plan approved by the Commission before filing of ARR and

Application for determination of Tariff. In line with the direction of APTEL Order

in Appeal No 197 of 2013 dated 18th October 2014, TANTRANSCO has submitted

the actual scheme-wise details of asset additions during the FY 2013-14 and the

application for Capital Investment Plan for FY 2014-15 and 2015-16 in the



requisite formats to the State Commission for approval as per the Tariff

Regulation. The Hon’ble Commission has approved the capital expenditure and

capitalisation for the FY 2014-15 and FY 2015-16.

3.3.2 TANTRANSCO submits that the expenditure incurred in each of the operational

circles is on account of regular need based repairs and maintenance works like

replacement of worn-out apparatus, damaged equipments, transformers, repairs

on account of overhead transmission lines etc which are necessary works to be

carried out for efficient working of the transmission system.

3.3.3 The capitalization for FY 2011-12 to FY 2015-16 is on account of the following

reasons

o Improvement in Tail End Voltage Levels;

o Avoidance of System Overloading;

o To provide load relief and to meet out the load growth in particular

area;

o To evacuate Power from various sources;

o Reduction in Line Loss;

3.3.4 It is submitted that TANTRANSCO had spent significant amount of capital

expenditure for construction of transmission lines and sub-stations during the

said financial years. TANTRANSCO has incurred capital expenditure and

undertaken capitalisaiton as detailed below:

Table 6: Capital Expenditure and Capitalisation from the FY 2011-12 to FY 2015-16 – Rs. Crs

Description FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

Capital Expenditure 1044.60 1412.17 2204.55 3200.04 2133.63

Net Capitalization 171.49 430.97 1331.92 3414.11 2065.29

3.3.5 Based on the above CAPEX and capitalisation, the following lines and substation

were commissioned from FY 2011-12 to FY 2015-16:



Table 7: Transmission Capacity – Lines and Substation Commissioned

Details

Rating of SS Nos. MVA Nos. MVA Nos. MVA Nos. MVA Nos. MVA

400 KV 1 630 -- -- -- -- 2 1460 0 0

230 KV -- -- 2 300 4 580 4 700 9 1800

110 KV 13 232 18 297 43 615 40 657 35 605

66 KV -- -- -- -- -- -- -- -- -- 0

Total 14 862 20 597 47 1195 46 2817 44 2405

400 KV OH Line

230 KV OH Line

/UG Cable

230 KV cable

110 KV OH line

110 KV cable

Total 691.00 1267.86 1436.39 2634.15 1987.68

971.48 1059.26

10.74

915.72

2.78

155.04 95.97 391.33

20.3412.37

462.00

15.00

252.59

752.09

2.12

16.00 261.06 297.50 1468.18 657.53

198.00

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

Substations

Lines - Ckt km

3.3.6 TANTRANSCO submits that in addition to above, works for enhancement of

power transformer was also undertaken. The details are as follows:

Table 8: Enhancement of Power Transformers

No. MVA No. MVA

400 KV 3 715

230 KV 20 1270 6 360

110 KV 268 3131 89 1100

66 KV 1 7.5

Total 291 5116 96 1467.5

FY 2011-12 to FY

2014-15FY 2015-16

Rating of SS

3.3.7 It is submitted to the Hon’ble Commission to allow the actual CAPEX and

capitlaisation incurred during FY 2011-12 to FY 2015-16.

3.4 GFA and Depreciation

3.4.1 The actual depreciation charge as per the audited accounts for the year FY 2011-

12to FY 2013-14 is lower than the cost as approved by the Hon’ble Commission.

Table 9: GFA and Depreciation for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual

Opening Gross Block 9,515.43 4,472.49 9,688.96 4,643.97 10,122.47 5,074.94 11,457.61 6,406.86 21,183.64 9,820.97

Closing Gross Block 9,688.96 4,643.97 10,122.47 5,074.94 11,457.61 6,406.86 9,820.97 11,886.26

Depreciation during the year 297.17 289.27 302.45 299.50 315.62 311.27 356.20 566.34 649.89 487.61

Rate of Depreciation 3.09% 6.35% 3.05% 6.16% 2.93% 5.42% 3.11% 6.98% 3.07% 4.49%

FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13

3.4.2 The GFA considered in the petition from FY 2011-12 is based on the final transfer

scheme without considering any impact of revaluation of assets. However, the

depreciation as considered is in line with the books of accounts which till FY

2014-15 was calculated based on the provisional transfer scheme. However, the

net impact on depreciation considering the effect from FY 2010-11 onwards has

been reflected in FY 2015-16 audited accounts under the head “Prior Period

Item” based on the final transfer scheme.



3.4.3 It is submitted that major capitalisation was undertaken in past few years which

has resulted into increase in depreciation cost as compared to the cost as

approved by the Hon’ble Commission.

3.4.4 The Hon’ble Commission is requested to approve the depreciation as per the

audited accounts for FY 2011-12 to FY 2015-16.

3.5 Interest Calculations

3.5.1 In the current Petition, TANTRANSCO has claimed the interest expenses

corresponding to the loans provided to the Utilities in lieu of transfer scheme.

The opening balance of loans as on 1st November 2010 for

TANTRANSCO,considered in its Petition is based on the provisional transfer

schemenotified as on 2nd January 2012. However the adjustment related to the

final transfer scheme has been carried out in FY 2015-16.

3.5.2 It is submitted that the operational / revenue expenses are met by the utilities

from the transmission charges collected from the operation. However,

TANTRANSCO is borrowing loans for repayment of loans allocated to it through

provisional and final transfer scheme whereby it is still finding it difficult to

service the debt as provided in the transfer scheme. Also, in line with section 131

of the Electricity Act 2003, while issuing the tariff order, the Hon’ble commission

will be guided by the transfer scheme which is stated below:

Section 131 of Electricity Act 2003: “Vesting of Property of Board in State Government”

states as under:

(3) Notwithstanding anything contained in this section, where,-

(b) a transaction of any description is effected in pursuance of a transfer scheme, it

shall be binding on all persons including third parties and even if such persons or third

parties have not consented to it.” Emphasis Supplied

3.5.3 This approach was already adopted by the Hon’ble Commission in its earlier tariff

order and has also been accepted by the Hon’ble APTEL in its order on Appeal No

102 of 2012 dated 4th February 2013.

3.5.4 TANTRANSCO in its audited accounts has included interest on GPF, guarantee and

commitment charges under other finance charges, however, TANTRANSCO is not

claiming any interest on GPF in the submission.

3.5.5 TANTRANSCO would like to submit that the interest liability calculated and

accrued during the period of FY 2011-12to FY 2015-16 are on actual basis which

are calculated based on the loans of erstwhile TNEB. Since the same has been in

the books of the TANTRANSCO, it is an obligation of TANTRANSCO to service the

debt.

3.5.6 The interest calculation for the year FY 2011-12 to FY 2015-16is shown in the

table below:



Table 10: Interest and Finance Charges for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars

Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual

Op. Loan 13,938.70 11,952.99 11,641.91 9,656.20 9,739.43 8,253.72 10,823.85 8,838.13 18,926.22 10,210.10

Loan Additions during the year 1,026.78 526.78 699.43 699.43 2,370.58 1,870.58 3,312.87 2,181.87 3,462.39 5,175.19

Repayment during the year 3,323.57 2,823.57 2,601.91 2,101.91 1,286.16 1,286.16 1,651.95 809.90 2,361.39 4,536.90

Cl. Balance 11,641.91 9,656.20 9,739.43 8,253.72 10,823.85 8,838.13 12,484.77 10,210.10 20,027.22 10,848.38

Average Loan 12,790.31 10,804.59 10,690.67 8,954.96 10,281.64 8,545.93 11,654.31 9,524.12 19,476.72 10,529.24

Interest on Loan 1,367.89 1,313.94 1,297.18 1,278.11 1,247.55 658.27 1,414.10 845.53 2,050.38 1,256.27

Less: Interest Capitalized 240.95 240.95 271.69 271.69 455.46 223.92 410.04 291.35 271.37 319.53

Net Interest on Loan 1,126.94 1,072.99 1,025.49 1,006.42 792.09 434.35 1,004.06 554.18 1,779.01 936.74

Interest & Finance Charges 2.62 2.63 5.46 12.96 5.40 17.51 5.24 18.69 3.79 27.56

Total 1,129.56 1,075.62 1,030.95 1,019.38 797.49 451.86 1,009.30 572.87 1,782.80 964.30

Average Interest Rate 10.69% 12.16% 12.13% 14.27% 12.13% 7.70% 12.13% 8.88% 10.53% 11.93%

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

3.5.7 The Hon’ble Commission is requested to approve Interest on Loan and Interest &

Finance charges as well as interest capitalised for FY 2011-12 to FY 2015-16.

3.6 Working Capital and Interest on Working Capital

3.6.1 TANTRANSCO has claimed interest on working capital based on norms specified

in the TNERC Tariff Regulations, 2005.

3.6.2 In last orders, TANTRANSCO has not included interest expenses for short term

borrowings in long term loans and claimed interest on working capital separately

as per norms in line with approach adopted by the Hon’ble Commission.

3.6.3 Similar approach has been adopted in the current petition, whereby it is

submitted that TANTRANSCO would like to submit that though there is NIL

amount as interest on working capital, in the petition the same has been claimed

on the normative basis. It is submitted that TANTRANSCO has employed internal

sources to meet the demand of revenue expenditure for working capital and the

internal sources also carry cost. It is further submitted that such funds employed

elsewhere would have carried interest income. Also, the spares required for day

to day operations of Sub-Station and line are also met through working capital

3.6.4 As per APTEL Order No. 111 of 2008 dated 28th May 2009, it states as follows:

“It is true that internal funds also deserve interest in as much as the internal fund when

employed as working capital loses the interest it could have earned by investment

elsewhere. Further the licensee can never have any funds which has no cost. The internal

accruals are not like some reserve which does not carry any cost. Internal accruals could

have been inter corporate deposits, as suggested on behalf of the appellant. In that case the

same would also carry the cost of interest.

……………………………..Emphasis added”.

3.6.5 Further, the Tariff Regulations stipulates that rate of interest on working capital

shall be considered on normative basis and shall be equal to the short-term

Prime Lending Rate of State Bank of India as on 1st April of relevant year.

3.6.6 Based on the above order, TANTRANSCO is entitled on the interest on working

capital as shown in the table below:



Table 11: Interest on Working Capital for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars


O&M expenses for 1 Month 43.16 25.23 49.93 43.55 54.70 51.60 61.23 60.81 62.54 71.34

Maintenance Spares 95.16 49.14 96.89 53.55 101.22 67.15 114.58 102.08 211.84 124.76

Receivables 284.51 284.51 512.67 396.85 269.38 460.82 379.68 296.01 662.75 384.21

Total Working Capital 422.83 358.88 659.49 493.95 425.30 579.57 555.49 458.90 937.13 580.30

Rate of Interest on Working Capital 13.00% 13.00% 14.75% 14.75% 14.45% 14.75% 14.75%

Total Interest on Working Capital 54.97 46.65 97.27 72.86 61.46 83.75 80.27 67.69 135.41 85.59

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

3.6.7 TANTRANSCO request the Hon’ble Commission to approve the interest on

working capital as submitted in the petition.

3.7 Reasonable Rate of Return on Equity

3.7.1 Return on Equity for TANTRANSCO for the year FY 2011-12to FY 2012-13 has

been calculated based on the average equity for the corresponding year. This has

been done in line with the TNERC Regulations. The Normative Rate of Equity has

been taken at 14%.

3.7.2 TANTRANSCO would like to submit that the opening equity as on 31.3.2011 is

considered to be zero in line with the Tariff Order as issued by the Hon’ble

Commission on Suo-Moto Order dated 11th December 2014.However it is

submitted that the matter is still pending with Hon’ble Supreme Court and is

subjuidice. Therefore, TANTRANSCO reserves it’s rightto claim the RoE based on

the order of the Supreme court in future.

3.7.3 The Hon’ble Commission in its tariff order disallowed Opening Return on Equity

on the grounds that loan borrowing is more than the capital expenditure

incurred. However, TANTRANSCO would like to submit that a utility is entitled for

Return on Equity as the RoE earned is invested every year to carry out future

capacity additions. The relevant extracts of TNERC (Terms & Conditions of Tariff)

Regulation 2005 is reproduced herein:

21. Debt-Equity Ratio

For the purpose of determination of tariff, debt-equity ratio as on the date of commercial

operation of Generating Station and transmission projects, sub-station, distribution lines or

capacity expanded after the notification of these Regulations shall be 70:30. Where equity

employed is more than 30% the amount of equity shall be limited to 30% and the balance

amount shall be considered as loans, advanced at the weighted average rate of interest and

for weighted average tenor of the long term debt component of the investment”

“Provided that in case of a Generating Company or other licensees, where actual equity

employed is less than 30%, the actual debt and equity shall be considered for determination

of return on equity in tariff computation.” (Emphasis Added)

3.7.4 TANTRANSCO would like to submit that Return on Equity is a surplus generated

which entitles a utility to safeguard itself against any uneven contingencies or a

force majeure event in future. Also, clause 5.3(a) of the National Tariff Policy

states that:



“Balance needs to be maintained between the interests of consumers and the need for

investments while laying down rate of return. Return should attract investments at par with,

if not in preference to, other sectors so that the electricity sector is able to create adequate

capacity. The rate of return should be such that it allows generation of reasonable surplus

for growth of the sector. (Emphasis Added)”

3.7.5 Also, APTEL order in case no. Appeal No. 84 of 2006 dated 29th August 2006, the

case for KPTCL v/s. KERC, states as follows:

The Appellate Tribunal observed that merely because there is no notification or allocation

indicating the capital or investment or such other sum cannot be reason enough to deny

return of equity.

3.7.6 Based on the above submission, TANTRANSCO is entitled on RoE on the opening

balance of equity as per the second transfer scheme.

3.7.7 The Reasonable Rate of Return on equity infused during FY 2011-12 to FY 2015-

16 is shown in the table below:

Table 12: RoE for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars


Opening Equity - - 406.46 406.46 913.37 913.37 1,082.34 1,082.34 3,887.25 1,953.45

Additions during the year 406.46 406.46 506.91 506.91 168.97 168.97 872.23 871.10 751.50 254.54

Closing Equity 406.46 406.46 913.37 913.37 1,082.34 1,082.34 1,954.57 1,953.45 4,638.75 2,207.98

Average Equity 203.23 203.23 659.92 659.92 997.86 997.86 1,518.46 1,517.89 4,263.00 2,080.71

Total 28.45 28.45 92.39 92.39 139.70 139.70 212.58 212.51 596.82 291.30

FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13

3.7.8 The RoE claimed for FY 2011-12 to FY 2015-16 is in line with the actual equity as

reflected in the audited accounts. Based on the foregoing paragraphs,

TANTRANSCO requests the Hon’ble Commission to approve the Reasonable Rate

of Return on Equity for FY 2011-12to FY 2015-16.

3.8 Other Income

3.8.1 TANTRANSCO submits that the other income includes interest on staff loans,

income from investment, interest from banks, income from short term open

access consumers in the form of operations and maintenance charges collected

from Wind Energy Generators and Captive Power Producers, etc. The total

income is highlighted as below:

Table 13: Other Income for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars

Approved Actual Approved Actual Approved Actual Approved Actual Approved Actual

Other Income 37.80 37.80 33.85 33.85 112.16 112.16 115.58 160.15 106.84 201.84

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

3.8.2 Based on the foregoing paragraphs, TANTRANSCO requests the Hon’ble

Commission to approve the Other Income for FY 2011-12 to FY 2015-16.



3.9 Other Debits, Capitalised Expenses, Extra-Ordinary Items & Prior Period

Expenses

3.9.1 TANTRANSCO submits that Other Debits, Capitalised expenses, Extra-Ordinary

Items & Prior Period items incurred by TANTRANSCO for the yearfor FY 2011-12

to FY 2015-16 are claimed as per Audited accounts. It is submitted that the

adjustment related to final transfer scheme has also been reflected in FY 2015-16

in line with the accounting standard. The expenses capitalised are undertaken in

line with the company policy and the details of Other debits and Prior period

expenses are highlighted as below:

Details of Prior Period Expenses

Description for FY 2015-16 Rs. in Crs.

Prior period Expenses Interest & Finance charges: Interest on some generic loans (viz. Bonds, LIC, HUDCO & PFC) of the

erstwhile TNEB originally allotted to TANGEDCO subsequently transferred to TANTRANSCO and accounting of interest for such loans from 2010-11 to 2014-15.

1462.96

Insurance Reserve: Increase in 1% Insurance reserve due to increase in value of Net assets from 2010-11 to 2014-15 as per Final Transfer scheme.

404.99

Transmission charges excess accounted in the year 2014-15 Rs. 75.74 Crs. withdrawn during the year 2015-16

75.75

Prior period Income

Interest & Finance charges: Interest on Bank Term Loan which was previously accounted in TANTRANSCO now withdrawn due to FRP

836.35

Depreciation on Book Value of assets: The difference in depreciation on book value of the assets between the assets as per Provisional Transfer Scheme and Final Transfer Scheme – Rs. 807.78 Crs. withdrawn

807.78

Interest During Construction: Due to incorporation of revised Loan as per Final Transfer Scheme and consequent to increased interest, the interest during construction from 2010-11 to 2014-15 revised and difference accounted for

154.60

Excess GPF & CPS Interest provided in the Year 2014-15 withdrawn 9.03

Fixed charges of TANTRANSCO owned assets (Transformers) at Sriperumbudur and Salem utilized by M/s. PGCIL for evacuating power from NLC to Southern Region constituents including TANGEDCO

7.95

Other debits:

Other Debits – FY 2012-13 Rs. Crs

1. M/s. Lumino Industries / Kolkatta An amount of Rs.1.35 Crs is paid towards the principal amount due (Amount withheld for already supplied “Zebra Conductor” under the RCTR No.1679/10.05.2007) along with simple interest.

1.35

2. M/s. Laser Cables / Kolkatta An amount of Rs.1.09 Crs was paid towards the principal amount due withheld for already supplied control cables vide P.O.No. 1790, 1791, 1792 and 1793 along with simple interest.

1.09

3. M/s. Karuna Cables / Hyderabad An amount of Rs.3.83 was paid towards the supply of ‘Panther ACSR Conductor’ along with interest.

3.83

3.9.2 Based on the above submission, the approved and actual expenses are

highlighted as below:



Table 14: Other Debits, Capitalised Expenses, Extra Ordinary Items & Prior Period Expenses – Rs. Crs

Particulars


Other Debits 0.39 0.15 0.43 6.27 0.48 0.04 0.52 - 0.58 0.49

Prior Period Expense 1.56 3.74 - 291.95 -171.71 -11.23 145.83

Extra-Ordinary Item 2.32

Expenses Capitalised -84.31 -85.65 -61.61 -88.08 -67.38 -119.97 -75.26 -137.72 -76.87 -153.02

Total -82.36 -79.44 -61.18 210.14 -66.90 -291.64 -74.74 -148.95 -76.29 -6.69

FY 2011-12 FY 2012-13 FY 2014-15 FY 2015-16FY 2013-14

3.9.3 TANTRANSCO requests the Hon’ble Commission to approve other debits and

prior period expenses as showcased in the above table for the year FY 2011-12 to

FY 2015-16.

3.10 Incentive

3.10.1 As per TNERC (Terms & Conditions for determination of tariff) Regulations 2005,

a transmission licensee is entitled for an incentive at 1% of equity for each

percentage point of increase in annual availability beyond the target availability

i.e. 98%.

3.10.2 The incentive computation based on the actual availability is as under:

Table 15: Incentive for FY 2011-12 to FY 2015-16- Rs. Crs

Rs. Crs

S.no Particulars


1 Equtiy 203.23 203.23 659.92 659.92 997.86 997.86 3,043.20 1517.89 4,263.00 2080.71

2 Annual Availability Achieved 99.54% 99.75% 99.54% 99.76% 98.95% 99.07% 99.54% 98.71% 99.54% 98.85%

3 Target Availability 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00%

4 Carrying cost 1.54

5 Incentive 3.13 3.56 10.16 11.61 7.94 10.72 46.87 10.81 65.65 17.63

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

3.10.3 TANTRANSCO request the Hon’ble Commission to approve the said cost in line

with the submission made by TANTRANSCO

3.11 Revenue from Transmission Charges

3.11.1 TANTRANSCO has considered the revenue from transmission charges for FY 2011-

12 to FY 2015-16 as per audited accounts after statutory audit as this is the actual

revenue received by the utility during the concerned years.

Table 16: Revenue from FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars


Revenue from transmission charges 1,707.06 1,707.06 3,075.99 2,381.10 1,616.28 2,764.95 1,943.72 1,776.07 3,976.50 2,305.24

FY 2014-15 FY 2015-16FY 2013-14FY 2012-13FY 2011-12

3.11.2 Therefore, TANTRANSCO requests the Hon’ble Commission to approve the

Revenue from transmission charges as per the audited accounts.



3.12 Aggregate Revenue Requirement and Revenue Gap

3.12.1 Based on the foregoing paragraphs, the Aggregate Revenue Requirement of

TANTRANSCO for the year FY 2011-12to FY 2015-16is shown in the table below:

Table 17: Aggregate Revenue Requirement for FY 2011-12 to FY 2015-16 – Rs. Crs

Particulars


O&M Expense 602.17 388.41 660.74 610.69 723.83 739.18 810.03 867.44 827.30 1,009.13

Employee Expense 576.72 360.81 632.91 579.89 694.89 700.01 779.44 830.08 796.00 964.99

Administration & General Expense 17.40 19.62 19.45 23.27 20.23 26.62 21.38 26.34 21.88 30.61

Repair & Maintenance Expense 8.05 7.98 8.38 7.53 8.71 12.55 9.21 11.02 9.42 13.53

Other Debits 0.39 0.15 0.43 6.27 0.48 0.04 0.52 - 0.58 0.49

Depreciation 297.17 289.27 302.45 299.50 315.62 311.27 356.20 566.34 649.89 487.61

Net Interest & Finance Charges 1,129.56 1,075.62 1,030.95 1,019.38 797.49 451.86 1,009.30 572.87 1,782.80 964.30

Interest on working capital 54.97 46.65 97.27 72.86 61.46 83.75 80.27 67.69 135.41 85.59

Other expenses capitalised -84.31 -85.65 -61.61 -88.08 -67.38 -119.97 -75.26 -137.72 -76.87 -153.02

Extraordinary Items - 2.32 - - - - - - - -

Prior Period Expenses 1.56 3.74 - 291.95 - -171.71 - -11.23 - 145.83

Incentive 3.13 3.56 10.16 11.61 7.94 10.72 46.87 10.81 65.65 17.63

Insurance 46.50

Total Expenditure 2,004.64 1,724.07 2,040.39 2,224.19 1,885.94 1,305.13 2,227.93 1,936.21 3,384.76 2,557.57

Return on Equity 28.45 28.45 92.39 92.39 139.70 139.70 212.58 212.51 596.82 291.30

Other Income 37.80 37.80 33.85 33.85 112.16 112.16 115.58 160.15 106.84 201.84

Gap of True-up of FY 2010-11 allowed to be

recovered in FY 2014-15 90.01 90.01

Aggregare Revenue Requirement 1,995.29 1,714.73 2,098.93 2,282.73 1,913.48 1,332.67 2,414.94 2,078.57 3,874.74 2,647.03

Revenue Recovered 1,707.06 1,707.06 3,075.99 2,381.10 1,616.28 2,764.95 1,943.72 1,776.07 3,976.50 2,305.24

Revenue Gap (+Deficit/ -Surplus) 288.23 7.67 -977.06 -98.37 297.20 -1,432.28 471.22 302.51 -101.76 341.79

FY 2015-16FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15

3.12.2 TANTRANSCO submits that the recovery of gap of Rs. 90 Crs against the final true-

up of FY 2010-11 has been allowed to be recovered in FY 2014-15 as per tariff

order dated 26th June 2013 and accordingly has been claimed in the Petition.

3.12.3 TANTRANSCO requests the Hon’ble Commission to consider the justification

given by TANTRANSCO and approve the ARR and Gap for FY 2011-12to FY 2015-

16 as shown in the table above.



4. AGGREGATE REVENUE REQUIREMENT FOR FY 2016-17 TO FY 2018-19

4.1 Background

4.1.1 This section deals with the determination ofARR of TANTRANSCO for the year FY

2016-17 to FY 2018-19 based on the projections made for the current year over

the previous year i.e. FY 2015-16.

4.1.2 It is necessary that all the costs are allowed so as to ensure the financial viability

of TANTRANSCO. Even stranded costs, if any, resulting from intra state

transmission, needs to be recovered so that the financial viability of the

TANTRANSCO is established.

4.1.3 TANTRANSCO also requires generating adequate amount of profit from its

operations so that it can maintain the system properly and simultaneously take

up R&M projects to upgrade its transmission system. It also needs to incur capital

expenditure for creating capacities which are required to cater to the future

needs of the system.

4.1.4 In the circumstances mentioned above, it will be just and proper that the

Aggregate Revenue Requirement as proposed by TANTRANSCO in this petition to

be allowed. The petitioner submits that the enclosures may please be treated as

an integral part of this petition.

4.2 Operation & Maintenance Expenses

4.2.1 O&M expenses comprises of employee expense, A&G expense and R&M

expense. As per clause 25 of the TNERC (Terms & Conditions for determination of

tariff) Regulations 2005 and MYT Regulations 2009 and its subsequent

amendments, O&M expenses are to be derived on the basis of actual O&M

expenses for past 5 years based on the audited accounts. Accordingly, O&M

Expenses for FY 2016-17 to FY 2018-19 have been arrived at on the basis of

escalation of 5.72% over the O&M expense of average audited cost of past 5

years,TANTRANSCO has considered escalation rates as per TNERC Regulations.

4.2.2 It is submitted that the employees cost are more in the nature of standard costs

of the TANTRANSCO and it does not retain much control over the same.

TANTRANSCO has taken all reasonable steps to ensure that the employees cost

are not high.

4.2.3 Employee Expenses

4.2.3.1 Employee Expense consists of Basic Salary, Dearness Allowance, Bonuses,

Medical expense reimbursement and Terminal Benefits etc. TANTRANSCO has



not considered the actual impact of 7th pay commission and will approach the

Hon’ble Commission for approval at the time of true-up.

4.2.3.2 FurtherDA has been considered equivalent to FY 2015-16 and any variation

will be claimed at the time of true-up based on the revisions duly declared by

the Government of Tamil Nadu during the respective years.

4.2.3.3 Thus, the projected Employee Expense of TANTRANSCO for the year FY 2016-

17to FY 2018-19 is shown as under:

Table 18: Employee Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs

Details FY 2016-17 FY 2017-18 FY 2018-19

Projected Projected Projected

Salary 225.17 238.05 251.66

Dearness Allowance 299.43 299.43 299.43

Other Allowances 17.15 18.13 19.17

Overtime Wages 5.80 6.13 6.48

Bonus 7.07 7.47 7.90

Leave Travel Assistance 0.03 0.03 0.04

Earned Leave Encashment 26.22 27.72 29.31

Medical Expense reimbursement 0.39 0.41 0.44

Payment Under Workman'S

Compensation And Gratuity 2.62 2.77 2.93

Board's Contribution to CPS 8.48 8.96 9.48

Staff Welfare Expenses 0.32 0.33 0.35

Terminal Benefits 231.26 244.49 258.47

Grand Total 823.94 853.94 885.66

4.2.4 Administration & General Expenses:

4.2.4.1 Administration and General Expenses consists of expenses pertaining to Rent,

Rates, Taxes, Telephone and Postage, Printing and Stationary, Electricity and

Water Charges, Advertisements Expenses etc. The A&G expenses projected

are in line with the Regulations with esclation of 5.72% p.a.

4.2.5 The A&G expense for the year FY 2016-17 to FY 2018-19 is as follows:



Table 19: A&G Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs

Details FY 2016-17 FY 2017-18 FY 2018-19

Estimate Estimate Estimate

Rent, Rates & Taxes 0.74 0.78 0.82

Telephone, Postage & Telegrams 1.12 1.19 1.25

Consultancy Charges 0.75 0.79 0.84

Conveyance & Travel 11.94 12.62 13.34

Registrar of Companies 0.48 0.51 0.54

Insurance 0.06 0.07 0.07

Fees & Subscriptions 0.05 0.06 0.06

Books & Periodicals 0.01 0.01 0.01

Printing & Stationery 0.50 0.53 0.56

Advertisement Expenses 0.12 0.12 0.13

Petty Office Maintenance Expense 0.40 0.43 0.45

Electricity Charges 0.85 0.90 0.95

Water Charges / Cold weather expenses 0.21 0.22 0.23

Miscellaneous Expenses 0.80 0.85 0.90

Legal Charges 0.66 0.70 0.74

Audit Fee/Statutory Audit Fee 0.06 0.06 0.07

Technical Fees 0.05 0.05 0.05

Freight Material related Expenses 1.75 1.85 1.95

Other Purchase Related Expenses 0.22 0.23 0.24

Training Expense 0.15 0.16 0.17

Public Expenses / Other professinal charges 0.03 0.03 0.03

Watch and Ward Expense 5.78 6.11 6.46

Honororium (Food Allwo.) for SO in Chennai 0.01 0.01 0.01

A&G - Total 26.74 28.27 29.88

4.2.6 Repairs & Maintenance Expenses

4.2.6.1 Repair and Maintenance expenses depend upon the population of the

substation, age of the transmission lines. R&M expenses are generally

incurred in order to ensure the maintenance of the transmission

lines/systems. The major components of Repairs and Maintenance cost are

Substation equipment and transformer maintenance cost, line maintenance

cost, auxiliary consumption charges, substation maintenance (O&M) charges

and general civil maintenance of substation infrastructure and buildings. For

R&M expenses, the escalation has been considered at 5.72% which is in line

with the TNERC (Terms & Conditions for determination of Tariff) Regulations.

The R&M expenses for the year FY 2016-17 to FY 2018-19 is shown in the

table below:

Table 20: R&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs

Details FY 2016-17 FY 2017-18 FY 2018-19

Estimate Estimate Estimate

Plant & Machinery 6.88 7.28 7.69

Buildings 0.27 0.28 0.30

Civil Works 0.37 0.39 0.41

Hydraulic Works 0.00 0.00 0.00

Lines, Cables Networks & DTR Repair 2.91 3.07 3.25

Vehicles 0.43 0.46 0.48

Furniture & Fixtures 0.00 0.00 0.00

Office Equipments 0.26 0.28 0.30

R&M Cost - Total 11.13 11.76 12.43



4.2.7 The breakup of O&M expenses for the year FY 2016-17 to FY 2018-19 is shown as

under:

Table 21: O&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs

Particulars FY 2016-17 FY 2017-18 FY 2018-19

Projections Projections Projections

Employee Expense 823.94 853.94 885.66

Administration & General Expense 26.74 28.27 29.88

Repair & Maintenance Expense 11.13 11.76 12.43

Total 861.80 893.97 927.98

4.2.8 It is requested to the Hon’ble Commission to approve the O&M expenses as

showcased in the above table which has been estimated in line with the MYT

Regulations.

4.3 Capitalisation of Revenue Expenses

4.3.1 TANTRANSCO submits that in the usual course of business and as reflected in the

previous audited financial statements, the revenue expenditure which are

capitalised are for the account heads which includes employee expenses, A&G

expenses, R&M expenses, Fabrication charges added to the stock and other

debits. Based on the policy of the company, certain % of the capital works are

capitalised in the said expenditure accounts. However, in the said petition,

TANTRANSCO is claiming capitalisaiton of expenses limited to O&M expenses

only i.e. Employee cost, R&M cost and A&G Cost. The details of which are as

follows:

Table 22: Capitalisation of expenses for FY 2016-17 to FY 2018-19 – Rs. Crs



Employee cost capitalised 83.16 86.19 89.39

A&G capitalised 4.85 5.13 5.43

R&M capitalised 3.12 3.30 3.48

Total 91.14 94.62 98.30

4.3.2 TANTRANSCO request the Hon’ble Commission to allow the said capitalised

expenses for the FY 2016-17 to FY 2018-19.

4.4 Capital Expenditure and Capitalisation

4.4.1 Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v)of the Tariff

Regulation under MYT framework specifies that the licensee shall get the capital

investment plan approved by the Commission before filing ARR and Application

for determination of Tariff. Accordingly, TANTRANSCO has submitted the

application for approval of provisional Capital investment and capitalisation from

FY 2016-17 to FY 2018-19 for approval of the Hon’ble Commission and the same

has been taken into consideration in this petition.



Table 23: Summary of schemewise CAPEX and Capitalisation for FY 2016-17 to FY 2018-19 – Rs. Crs

Sr. No Schemes

FY 2016-17 FY 2017-18 FY 2018-19 FY 2016-17 FY 2017-18 FY 2018-19

I. Sub station works

765 kV Sub Stations 100.00 375.00 1,030.00 - 212.15 424.29

400 kV Sub Stations 385.00 410.00 1,200.00 990.80 974.91 1,099.94

230 kV Sub Stations 253.00 694.00 605.00 59.25 206.59 791.03

110 kV Sub Stations 415.50 327.00 310.00 159.59 372.39 239.08

Sub Total 1,153.50 1,806.00 3,145.00 1,209.64 1,766.03 2,554.35

II. Transmission Line works

Link Lines - 400 KV, 230 KV 5.00 - - 83.10 242.92 154.76

Power Evacuation Lines - 400 KV, 230 KV and 110 KV 64.90 115.00 100.00 159.50 91.41 20.84

Improvement Lines - 230 KV, 110 KV 220.00 100.00 150.00 164.64 163.15 132.12

Sub Total 289.90 215.00 250.00 407.24 497.48 307.72

III. OTHERS

Enhancement / Additional Power Transformers 150.00 150.00 150.00 150.00 150.00 150.00

TANTRANSCO Building 10.00 5.00 - - 16.00 4.00

Capacitor Bank 20.00 - 16.00 4.00

JICA Scheme 600.00 300.00 300.00 600.00 300.00 300.00

KfW Schemes 600.00 450.00 100.00 - 263.70 513.09

SubTotal 1,380.00 905.00 550.00 766.00 733.70 967.09

Total 2,823.40 2,926.00 3,945.00 2,382.88 2,997.21 3,829.16

CAPEX CAPITALISATION

4.4.2 Based on the above estimated CAPEX, the sources of funding is outlined as below

whereby it is the debt:equity funding at present considered is in the ratio of

90:10.

Table 24: Sources of funding of CAPEX – Rs. Crs


Provisional Provisional Provisional

CAPEX 2,823.40 2,926.00 3,945.00

Capitalisation 2,382.88 2,997.21 3,829.16

Grant from GOI for KFW

German loan funded project 326.70 - -

10% - Equity 205.62 299.72 382.92

90% - Debt 1,850.56 2,697.49 3,446.24

Funded by

JICA Loan 500.00 728.00 376.00

KFW Loan 258.21 246.00 -

NABARD 80.00 113.00 -

PFC, REC Bond, Bank term

loan etc 1,012.35 1,610.49 3,070.24

Sources of funding of capitalisaiton

4.4.3 The loan from JICA and KFW are through the State Government and therefore

has been considered under State Government Loan.

4.4.4 It is submitted that TANTRANSCO is planning to incur the above CAPEX on various

projects considering the growth in demand within the State and the need of

evacuation system for upcoming renewable and thermal power plants. The

details of the same are as provided below:

A. Power Evacuation from the proposed Thermal projects:

Total four Thermal projects with an installed capacity of 3440 MW are getting

commissioned in North Chennai area resulting into a generation hub. It is

proposed to evacuate this bulk power at 765 kV and administrative approval has

been accorded for 765 kV GIS pooling station at North Chennai with connectivity



to the already sanctioned Ariyalur 765 kV AIS SS and Pulianthope 400 kV GIS SS.

Estimate is under preparation for 765 kV North Chennai Pooling Station and it is

programmed to complete the substation by 2019-20. Tender has been opened

and under process for Pulianthope 400 KV GIS substation.

Ariyalur 765 kV substation is proposed to effectively distribute the generated

power and sourced from other States, with connectivity to Thiruvalam PGCIL 765

kV substation. Tender is being floated for Ariyalur 765 KV Substation and tender

is under process for 765 kV line from Thiruvalam to Ariyalur. Ariyalur 765 kV

substation is expected to be completed by 2018-19.

Another 765 kV substation is proposed at Coimbatore area with connectivity to

North Chennai and the proposed Udangudi 765 KV switchyard. Land is being

identified for establishment of 765 kV SS at Coimbatore. Udangudi 765 kV

switchyard is proposed for evacuation of about 1980 MW from Udangudi STPP (2

X 660 MW) and Udangudi Stage –II (1 X 660 MW ) and will be commissioned

matching with the commissioning of the project.

Thus a 765 kV network is being formed with establishment of 4 nos. 765 kV

substations at North Chennai, Ariyalur, Coimbatore and Udangudi with

associated 765 kV lines for transfer of bulk power from generating stations and

for transfer of interstate power with downstream connectivity for effective

distribution of generated power.

Further, for evacuating power of about 730 MW from private generators in

Gummudipoondi area, a 400 kV SS is proposed at Thervaikandigai with

connectivity to the proposed Manali and Korattur 400 kV substations.

Thervaikandigai 400 kV SS is back charged at 230 kV level on 15.04.16 whereby

400 kV line works are under progress and the substation at 400 kV is

programmed to be completed by 2016-17.

B. Power evacuation from Renewable Energy sources

Tamil Nadu being a pioneer of promoting Renewable energy owing to its huge

potential of wind and solar along with other forms of renewable energy, has planned

its transmission infrastructure to match with the ambitious Green Energy capacity

addition. The estimated renewable energy addition in the next three years will be

around 4000 MW. This program has been briefly explained below:

a. Wind power evacuation

For evacuation of about 3000 MW wind power in Theni and Udumalpet districts,

overall 3 numbers of new 400 kV substations at Thappagundu, Anikadavu and

Rasipalayam with associated 400 kV lines of 788 ckt. kms are proposed. Works

are under progress for these substations. Also, 400 kV line works from

Thappagundu to Anikadavu and Anikadavu to Rasipalayam have been

completed. 400 kV line works from Rasipalayam to Dharmapuri (Palavadi) 400 kV

SS are under progress. This transmission system will be commissioned during

2016-17.

Further 2 nos. substations are proposed at Kanarpatty and Thennampatty for

evacuation of wind power in Tirunelveli area. Kanarpatty substation has been

commissioned. Works are under progress for Thennampatty 400 kV SS and will

be commissioned during 2017-18.



The above substations and lines which are mainly evolved for evacuation of wind

energy will be used beneficially for load transfer in both directions i.e. during

wind & non wind seasons.

Erection of second 400 kV DC line from Rasipalayam 400 KV SS – Dharmapuri

(Palavadi) 400 kV SS is also proposed under KfW funding and works are under

progress. These two double circuit 400 kV lines will enable power flow to load

centres of Coimbatore, Salem and Vellore regions throughout the year

effectively. LILO of one ckt of Thappagundu - Anaikadavu 400 KV DC line at

Udumalpet 400/230 KV PGCIL SS will also be beneficial for Coimbatore region.

Tender is under process for above line work.

b. Solar power evacuation

For evacuation of about 3000 MW of solar power in Ramnad, Pudukkottai and

Virudhunagar districts, establishment of 400 kV SS at Kamudhi and 230 kV SS at

Muthuramalingapuram are proposed. Also, Kamudhi 400 kV SS has been

commissioned and Works are under progress for Muthuramalingapuram 230 kV

SS and this substation is also programmed to be completed by 2016-17.

A 400 kV substation at Vellalaviduthi is also proposed for solar power evacuation

in Pudukkottai district and is expected to be commissioned in 2018-19.

Considering the already proposed and future expected addition of renewable

energy generation in Tamil Nadu network, it has been proposed to establish 400

kV substations viz., Samugarengapuram in Tirunelveli area, Ottapidaram in

Tuticorin area for evacuation of wind/solar energy in addition to the private

power generation at Ottapidaram.

As major portion of the capacity addition of renewable energy generation is

proposed near Kamudhi, Rameshwaram - Ramnad / Thiruchuli-Virudunagar /

Pudukkottai area in case of solar and wind in Tirunelveli area, it has been

decided to establish a 765 kV substation near Virudunagar for pooling all the

above generation and transferring to load centres.

4.5 GFA and Depreciation

4.5.1 The depreciation rate considered in the petition are in line with the rates

specified in the Tariff Regulations. The total depreciation is calculated on the

opening balance of the Gross Fixed Assets (GFA).

4.5.2 The depreciation rate considered are in line with the Amendment to the Terms

and Conditions for determination of Tariff Regulations 2005 dated 13th March

2014.

4.5.3 The depreciation and the opening GFA for the year FY 2016-17 to FY 2018-19

works out to be as follows whereby the depreciation is calculated on the book

value of the Assets.



Table 25: GFA and Depreciation for FY 2016-17 to FY 2018-19 – Rs. Crs



Opening Gross Block 11,886.26 14,269.14 17,266.34

Closing Gross Block 14,269.14 17,266.34 21,095.49

Depreciation during the year 598.18 718.10 868.93

Rate of Depreciation 4.57% 4.55% 4.53%

4.5.4 The Hon’ble Commission is requested to approve the depreciation as projected

by TANTRANSCO for the year FY 2016-17 to FY 2018-19.

4.6 Interest Calculation

4.6.1 Interest calculations have been estimated based on the heads viz Interest on

Loan and Interest & Finance charges.

4.6.2 As per norms specified in Tariff Regulations 2005, TANTRANSCO has determined

interest expenses corresponding to long term loans and interest on working

capital separately.

4.6.3 The interest on the loan has been calculated considering the loans allocated to

TANTRANSCO at the time of segregation of erstwhile TNEB and based on such

notified final transfer scheme, it is an obligation of TANTRANSCO to service such

debts and repay the debt alongwith the interest.

4.6.4 For determination of interest expenses, following approach has been considered

by TANTRANSCO:

Closing loan of FY 2015-16 audited balance sheet has been considered as a base.

Repayment and interest obligation of existing loan is considered as per

projection.

90% of the capitalisaiton has been considered as debt whereby PFC / REC loan /

Bonds / Bank Term Loan, etc is funded @11.25% p.a. in FY 2016-17 and 10% in

FY 2017-18 onwards, NABARD @10.75% p.a. and JICA/KFW loan @8.19%

included in State Government loan and also includes the impact of FERV in line

with FY 2015-16 rate

Moratorium period of 3 years has been considered for new loan

IDC is considered in the similar prorata ratio of FY 2015-16

Finance charges has been considered with 10% escalation considering FY 2015-

16 as base for calculation for the next 3 years.

Interest on General provident fund has not been considered in line with the

observation considered by the Hon’ble Commission

4.6.5 The interest calculation for the year FY 2016-17 to FY 2018-19 is shown in the

table below:



Table 26: Interest and Finance Charges for FY 2016-17 to FY 2018-19 - Crs


Provisional Provisional Provisional

Op. Loan 10,848.38 11,697.18 13,054.37

Loan Additiona during the year 1,850.56 2,697.49 3,446.24

Repayment during the year 1,001.77 1,340.30 1,202.92

Cl. Balance 11,697.18 13,054.37 15,297.69

Average Loan 11,272.78 12,375.77 14,176.03

Interest on Loan 1,232.69 1,367.07 1,515.66

Less: Interest Capitalized 311.79 339.94 366.68

Net Interest on Loan 920.90 1,027.13 1,148.98

Interest & Finance Charges 30.31 30.31 36.68

Total 951.22 1,057.44 1,185.66

Average Interest Rate 10.94% 11.05% 10.69%

4.6.6 The Hon’ble Commission is requested to approve the Interest on Loan and

Interest & Finance charge as projected for the year FY 2016-17 to FY 2018-19.

4.7 Working Capital and Interest on Working Capital

4.7.1 TANTRANSCO would like to submit that interest on working capital in the petition

has been claimed on the normative basis.

4.7.2 In line with norms, the Revenue has been considered for 2 months based on

expected revenue from existing tariff for FY 2016-17 and For FY 2017-18 to FY

2018-19, it is based on the total ARR to be recovered in the ensuing year.

4.7.3 Further, the Tariff Regulations stipulates that rate of interest on working capital

shall be considered on normative basis and shall be equal to the short-term

Prime Lending Rate of State Bank of India as on the date on which the application

for determination of tariff is made.

4.7.4 Based on the above Regulations, TANTRANSCO is entitled on the interest on

working capital as shown in the table below:

Table 27: Interest on Working Capital for FY 2016-17 to FY 2018-19 – Rs. Crs



O&M expenses 64.22 66.61 69.14

Maintenance Spares 149.82 181.23 221.31

Receivables 348.22 454.68 506.40

Total Working Capital 562.26 702.52 796.86

Rate of Interest on Working Capital 14.05% 14.05% 14.05%

Total Interest on Working Capital 79.00 98.70 111.96

4.8 Reasonable Return on Equity

4.8.1 TANTRANSCO has calculated Return on Equity for the year FY 2016-17 to FY

2018-19 on the basis on the average equity for the corresponding year

considering infusion of Equity @10% of the total capitalised amount of the



respective year. This has been done in line with the TNERC Regulations. The

Normative Rate of Equity has been taken at 14%.

4.8.2 The Reasonable Rate of Return on equity of TANTRANSCO for the year FY 2016-

17 to FY 2018-19 is shown in the table below:

Table 28: RoE for FY 2016-17 to FY 2018-19 – Rs. Crs



Opening Equity 2,207.98 2,413.60 2,713.32

Additions during the year 205.62 299.72 382.92

Closing Equity 2,413.60 2,713.32 3,096.24

Average Equity 2,310.79 2,563.46 2,904.78

Total 323.51 358.88 406.67

4.8.3 Based on the foregoing paragraphs, TANTRANSCO requests the Hon’ble

Commission to approve the Reasonable Rate of return on Equity for FY 2016-17

to FY 2018-19.

4.9 Other debits and prior period items

4.9.1 TANTRANSCO submits that other debits and prior period items has not been

considered in estimated ARR and reserves the right to claim the same at the time

of true-up of the respective financial year in the next petition.

4.10 Incentives

4.10.1 TNERC Tariff Regulations 2005, which entitles the transmission licensee for an

incentive at 1% of equity for each percentage point of increase in annual

availability beyond the target availability i.e. 98%. However, APTEL Judgement

dated 18th October 2014 on Appeal No. 197 of 2013 has directed that “The

incentive is to be determined post facto after annual availability achieved is

computed after the completion of the Financial Year”.

4.10.2 TANTRANSCO taking this direction into cognisance of the Hon’ble APTEL and

TANTRANSCO has not claimed any incentive for FY 2016-17 to FY 2018-19 but

reserves its right to claim during the true-up petition.

4.11 Insurance

4.11.1 As per the terms of the amended Tariff Regulations dated April 9th 2014, the

provision for insurance has been removed from FY 2014-15 and hence the same

has not been claimed in FY 2016-17 to FY 2018-19.



4.12 Other Income

4.12.1 TANTRANSCO submits that it had filed a petition for approval of Transmission

charges under PoC regime for connecting the neighbouring states before the

Hon’ble CERC for five lines owned by it and considered as the deemed inter-state

lines:

i. Chitoor – Tniruvalam 230 kV SC line

ii. Sulurpet – Gummidipoondi 230 kV SC line

iii. Yeerandahalli – Hosur 230 kV SC line

iv. Mooziyar – Theni 230 kV SC line

v. Iduki – Udumalpet 230 kV SC line

4.12.2 Accordingly, CERC has issued an order dated 28th September 2015 approving the

tariff from FY 2011-12 to FY 2013-14. TANTRANSCO in the said petition has

considered the similar revenue of FY 2013-14 for FY 2014-15 to FY 2018-19. The

Revenue from the said 5 inter-state line has been considered in other income

whereby from FY 2011-12 to FY 2016-17 income has been highlighted in FY 2016-

17. The details of the same are outlined below:

Table 29: Impact of CERC order for 5 Inter-State Transmission Lines – Rs. Crs

Sr. No. Particulars Total Gap

Impact of CERC Order as per Order dated 28th September 2015 for 5 Transmission lines

1 For FY 2011-12 limited to 5 months 6.61

2 For FY 2012-13 11.66

3 For FY 2013-14 12.16

4 For FY 2014-15 (as per FY 2013-14) 12.16

5 For FY 2015-16 (as per FY 2013-14) 12.16

6 For FY 2016-17 (as per FY 2013-14) 12.16

7 Total income considered in FY 2016-17 66.93

8 For FY 2017-18 (as per FY 2013-14) 12.16

9 For FY 2018-19 (as per FY 2013-14) 12.16

10 Total Charges to be recovered from Inter-State Consumers 91.26

4.12.3 TANTRANSCO submits that apart from income from Inter-State Transmission

lines, the Other Income also includes interest on staff loans, income from

investment, income from trading, interest from banks, income from short term

open access, etc. The amount of Other Income for the year FY 2016-17 to FY

2018-19 is arrived at based on the past trends.

Table 30: Other Income from FY 2016-17 to FY 2018-19 – Rs. Crs



Other Income 309.66 304.41 364.48

4.12.4 TANTRANSCO request the Hon’ble Commission to approve the same.



4.13 Other Debits and Prior Period Income

4.13.1 For the year FY 2016-17 to FY 2018-19, TANTRANSCO does not envisage any Prior

Period Income; hence it has not considered any prior period income.

4.14 Aggregate Revenue Requirement

4.14.1 Based on the category-wise expenses as described above, the Actual Aggregate

Revenue Requirement for FY 2016-17 to FY 2018-19 for TANTRANSCO has been

summarised in the table given below for the approval of the Hon’ble Commission.

Table 31: Aggregate Revenue Requirement for FY 2016-17 to FY 2018-19 – Rs. Crs


Projected Projected Projected

O&M Expense 770.67 799.35 829.68

Employee Expenses 823.94 853.94 885.66

R&M Expenses 11.13 11.76 12.43

A&G Expense 26.74 28.27 29.88

Revenue Expenses Capitalised excl. Interest -91.14 -94.62 -98.30

Depreciation 598.18 718.10 868.93

Interest & Finance Charges 1,263.01 1,397.38 1,552.34

Interest Expenses capitalised -311.79 -339.94 -366.68

Interest on working capital 79.00 98.70 111.96

Return on Equity 323.51 358.88 406.67

Total Expenditure 2,722.57 3,032.48 3,402.90

Other Income 309.66 304.41 364.48

Aggregate Revenue Requirement 2,412.92 2,728.07 3,038.42

4.14.2 TANTRANSCO request the Hon’ble Commission to approve the said proposed

Annual Revenue Requirement for FY 2016-17 to FY 2018-19.



5. PRAYER TO THE PETITION

TANTRANSCO respectfully prays to the Hon'ble Commission:

1. To admit the said petition as per the provisions of the Tariff Regulations 2005

and MYT Regulations 2009;

2. To condone the delay in filing the present petition for which application for

time extension up to 31st January have been submitted to this Hon’ble

Commission;

3. To approve the total Aggregate Revenue Requirement FY 2011-12 to FY 2018-

19 along with other claims as proposed by TANTRANSCO;

4. To approve capital expenditure as proposed in the petition;

5. To grant any other relief as the Hon'ble Commission may consider

appropriate. The petitioner craves leave of the Hon'ble Commission to allow

further submissions, addition and alteration to this Petition as may be

necessary from time to time;

6. To condone any error/omission and to give opportunity to rectify the same;

7. Pass any other order as the Hon’ble Commission may deem fit.

sd/-

PETITIONER

TAMIL NADU TRANSMISSION CORPORATION LIMITED


ARR FOR THE FY 2016-17 TO FY 2018-19

Form 1: Summary Sheet

73% 18% 18% 17% -10% 4% (Rs. Crs)

SL.

No.Details Reference FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19

Audited Audited Audited Audited Audited Estimates Projections Projections

1 Operation & Maintenance Expenses 302.76 522.61 619.20 729.73 856.11 770.67 799.35 829.68

1.1 Employee Cost Form 5 360.81 579.89 700.01 830.08 964.99 823.94 853.94 885.66

1.2 Repair & Maintenance Form 4 7.98 7.53 12.55 11.02 13.53 11.13 11.76 12.43

1.3 Administration & General Charges Form 6 19.62 23.27 26.62 26.34 30.61 26.74 28.27 29.88

1.4 Revenue Expenses Capitalised excl. Interest Form 7A (85.65) (88.08) (119.97) (137.72) (153.02) (91.14) (94.62) (98.30)

2 Depreciation Form 3 289.27 299.50 311.27 566.34 487.61 598.18 718.10 868.93

3 Other Interest and Finance Charges Form 2 1,316.57 1,291.08 675.77 864.22 1,283.83 1,263.01 1,397.38 1,552.34

4 Interest on Working Capital Form 10 46.65 72.86 83.75 67.69 85.59 79.00 98.70 111.96

5 Return on Equity Form 8 28.45 92.39 139.70 212.51 291.30 323.51 358.88 406.67

6 Other Debits Form 9 0.15 6.27 0.04 - 0.49 - - -

7 Incentive Form 11 3.56 11.61 10.72 10.81 17.63 - - -

8 Total Fixed Costs 1,987.41 2,296.32 1,840.46 2,451.30 3,022.57 3,034.36 3,372.42 3,769.58

9 Less: Other Income 37.80 33.85 112.16 160.15 201.84 309.66 304.41 364.48

10 Less: Interest Expenses Capitalized 240.95 271.69 223.92 291.35 319.53 311.79 339.94 366.68

11 Add: Net Prior Period Credit / Income 3.74 291.95 (171.71) (11.23) 145.83 - - -

12 Add: Extra - Ordinary Items 2.32

13 Gap of True-up of FY 2010-11 90.01

14 Net Transmission Charges 1,714.73 2,282.73 1,332.67 2,078.57 2,647.03 2,412.92 2,728.07 3,038.42

15Revenue from Tx Charges / Annual Tx

Charges1,707.06 2,381.10 2,764.95 1,776.07 2,305.24 2,089.31 2,183.00 -

16 GAP (7.67) 98.37 1,432.28 (302.51) (341.79) (323.61) (545.08)

SL. No. Institution

Outstanding

at the start

of the year

Borrowings Repayment

Outstanding at

the end of the

year

Interest RateInterest

payable

Outstandin

g at the

start of the

year

Borrowing

s

Repaymen

t

Outstanding at

the end of the

year


payable

A Interest on Loans

1 Public Loan TNEB Bonds 1,635.72 - 221.53 1,414.19 13.02% 139.64 1,414.19 0.00 0.00 1,414.19 13% 130.02

2 Loan from Life Insurance Corpn. 472.17 - 65.99 406.18 9.05% 37.81 406.18 - 60.32 345.86 9% 32.26

3 Loan from Rural Elecn.Corpn. 1,864.60 459.16 142.15 2,181.62 11.65% 182.94 2,181.62 284.56 313.35 2,152.83 12% 248.09

4 Power Finance Corporation 655.82 - 269.28 386.54 11.00% 24.72 386.54 295.07 21.26 660.34 11% 34.70

5 Loan Tamil Nadu POWERFIN 2,888.27 67.62 871.02 2,084.87 10.65% 228.69 2,084.87 119.81 673.59 1,531.09 11% 217.43

6 Medium Term Loan 3,864.89 - 1,154.32 2,710.58 10.50% 580.77 2,710.58 - 950.15 1,760.43 11% 489.80

7 HUDCO 571.52 - 99.30 472.23 10.25% 119.36 472.23 - 83.25 388.98 10% 114.49

8 Penal Interest in respect of capital liabiltiies - - - - 0.00% - - - - - 0% 11.32

9 JICA Loan - - - - 0.00% - - - - - 0% -

Subtotal 11,952.99 526.78 2,823.57 9,656.20 1,313.94 9,656.20 699.43 2,101.91 8,253.72 1,278.11

B Interest & Finance Charge

Interest on General provident Fund - -

Other Interest 2.51 3.81

Cost of raising finance 0.06 -

Other Bank Charges/Penal int for E.tax 0.05 0.04

Guarantee commission to State Government - 9.12

Subtotal 2.63 12.96

Total 1,316.57 1,291.08

Less: Interest Expense Capitalized 240.95 271.69

Net Interest & Finance charges 1,075.62 1,019.38

Previous Year 2012-13 - AuditedPrevious Year 2011-12 Audited


Form 2: Interest Calculations


SL. No. Institution

A Interest on Loans

1 Public Loan TNEB Bonds

2 Loan from Life Insurance Corpn.

3 Loan from Rural Elecn.Corpn.

4 Power Finance Corporation

5 Loan Tamil Nadu POWERFIN

6 Medium Term Loan

7 HUDCO

8 Penal Interest in respect of capital liabiltiies

9 JICA Loan

Subtotal

B Interest & Finance Charge

Interest on General provident Fund

Other Interest

Cost of raising finance

Other Bank Charges/Penal int for E.tax

Guarantee commission to State Government

Subtotal

Total

Less: Interest Expense Capitalized

Net Interest & Finance charges




Outstanding at

the start of the

year


Outstandin

g at the end

of the year


payable

Outstanding at

the start of the

year


Outstanding at

the end of the

year

Interest

Rate

Interest

payable

1,414.19 - 60.28 1,353.91 13% 127.47 1,353.91 - 74.78 1,279.13 13.02% 120.72

345.86 - 56.65 289.20 9% 26.91 289.20 - 46.90 242.30 9.05% 20.99

2,152.83 1,425.78 479.74 3,098.87 12% 292.18 3,098.87 1,464.43 241.86 4,321.44 11.65% 492.72

660.34 389.69 0.78 1,049.26 11% 19.72 1,049.26 589.42 4.62 1,634.06 11.00% 88.18

1,531.09 55.11 606.89 979.31 11% 89.19 979.31 - 380.99 598.32 10.65% 39.29

1,760.43 - - 1,760.43 11% - 1,760.43 - - 1,760.43 10.50% -

388.98 - 81.82 307.16 10% 96.73 307.16 - 60.74 246.41 10.25% 70.34

- - - - 0% 6.06 - - - - 0.00% 13.16

- - - - 0% - - 128.01 - 128.01 0.19% 0.12

8,253.72 1,870.58 1,286.16 8,838.13 658.27 8,838.13 2,181.87 809.90 10,210.10 845.53

- -

5.17 6.97

3.64 3.68

0.04 0.05

8.67 7.99

17.51 18.69

675.77 864.22

223.92 291.35

451.86 572.87

Previous Year 2014-15 - AuditedPrevious Year 2013-14 - Audited







SL. No. Institution

Outstanding

at the start

of the year


Outstanding at

the end of the

year


payable

Outstandin

g at the

start of the

year

Borrowing

s

Repaymen

t

Outstanding at

the end of the

year


payable

1 Public Loan TNEB Bonds 1,279.13 1,198.84 692.41 1,785.55 8.60% 170.73 1,785.55 - - 1,785.55 8.60% 153.62

2 Loan from Life Insurance Corpn. 242.30 386.35 187.48 441.17 11.15% 51.99 441.17 - 66.60 374.57 12.07% 49.21

3 Loan from Rural Elecn.Corpn. 4,321.44 1,051.07 409.79 4,962.72 11.25% 590.46 4,962.72 - 689.36 4,273.37 12.50% 577.18

7 Power Finance Corporation 1,634.06 489.72 538.60 1,585.17 11.25% 155.91 1,585.17 - 54.11 1,531.06 10.00% 155.88

8 Loan Tamil Nadu POWERFIN 598.32 320.79 845.45 73.66 10.65% 15.32 73.66 - 44.27 29.39 10.84% 5.58

10 Medium Term Loan 1,760.43 1,760.43 - 0.00% - - - - - -

11 HUDCO 246.41 961.06 102.73 1,104.74 12.17% 189.42 1,104.74 - 147.43 957.31 12.39% 127.75

13 NABARD 45.48 - 45.48 10.75% 0.13 45.48 80.00 - 125.48 10.75% 9.19

14 PFC and REC Additional loan - - - 0.00% - - 1,012.35 - 1,012.35 11.25% 56.94

15 Penal Interest in respect of capital liabiltiies - - - - 0.00% 12.58 - - - - -

16 JICA Loan 128.01 (128.01) - - 0.00% 2.43 - - - - -

17 State Govt Loan 849.90 - 849.90 7.92% 67.31 849.90 758.21 - 1,608.11 7.92% 97.33

Subtotal 10,210.10 5,175.19 4,536.90 10,848.38 1,256.27 10,848.38 1,850.56 1,001.77 11,697.18 1,232.69

B Interest on Finance Charge

Interest on General provident Fund - -

Other Interest 12.27 13.49

Cost of raising finance 3.75 4.13

Other Bank Charges/Penal int for E.tax 0.06 0.06

Guarantee commission to State Government 11.48 12.63

Subtotal 27.56 30.31

Total 1,283.83 1,263.01

Less: Interest Expense Capitalized 319.53 311.79

Net Interest & Finance charges 964.30 951.22

Current Year 2016-17 - EstimatesPrevious Year 2015-16 - Audited




SL. No. Institution

1 Public Loan TNEB Bonds

2 Loan from Life Insurance Corpn.

3 Loan from Rural Elecn.Corpn.

7 Power Finance Corporation

8 Loan Tamil Nadu POWERFIN

10 Medium Term Loan

11 HUDCO

13 NABARD

14 PFC and REC Additional loan

15 Penal Interest in respect of capital liabiltiies

16 JICA Loan

17 State Govt Loan

Subtotal

B Interest on Finance Charge

Interest on General provident Fund

Other Interest

Cost of raising finance

Other Bank Charges/Penal int for E.tax

Guarantee commission to State Government

Subtotal

Total

Less: Interest Expense Capitalized

Net Interest & Finance charges




Outstanding at

the start of the

year


Outstandin

g at the end

of the year


payable

Outstanding at

the start of the

year


Outstanding at

the end of the

year

Interest

Rate

Interest

payable

1,785.55 - 665.50 1,120.05 9.27% 134.67 1,120.05 - 480.00 640.05 8.93% 78.60

374.57 - 66.60 307.97 12.92% 44.08 307.97 - 66.60 241.37 13.39% 36.78

4,273.37 - 339.42 3,933.94 13.32% 546.64 3,933.94 - 423.55 3,510.39 13.30% 494.87

1,531.06 - 100.00 1,431.06 11.02% 163.17 1,431.06 - 93.41 1,337.64 10.95% 151.59

29.39 - 25.75 3.64 10.12% 1.67 3.64 - 3.64 0.00 5.34% 0.10

- - - - - - - - - -

957.31 - 143.02 814.28 12.37% 109.60 814.28 - 135.71 678.57 12.45% 92.93

125.48 113.00 - 238.48 10.75% 19.56 238.48 - - 238.48 10.75% 25.64

1,012.35 1,610.49 - 2,622.84 10.00% 181.76 2,622.84 3,070.24 - 5,693.08 10.00% 415.80

- - - - - - - - - -

- - - - - - - - - -

1,608.11 974.00 - 2,582.11 7.92% 165.92 2,582.11 376.00 - 2,958.11 7.92% 219.37

11,697.18 2,697.49 1,340.30 13,054.37 1,367.07 13,054.37 3,446.24 1,202.92 15,297.69 1,515.66

- -

14.84 16.33

4.54 5.00

0.07 0.07

13.89 15.28

30.31 36.68

1,397.38 1,552.34

339.94 366.68

1,057.44 1,185.66

Ensuing Year 2017-18 - Projections Ensuing Year 2018-19 - Projections

FY 2011-12

SL. No. Name of AssetRate of

depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 291.18 0.12 - 291.30 -

2 Building & civil works 269.41 11.42 0.01 280.82 5.64

3 Other Civil works 2.74 - 0.00 2.74 1.91

4 Hydraulic Works 145.24 5.31 0.03 150.51 0.05

5 Line Cable Networking etc 2,018.82 84.11 1.93 2,100.99 137.74

6 Plants & Mechainery 1,722.58 72.47 0.01 1,795.03 138.99

7 Vehicles 1.84 0.10 0.04 1.90 (0.03)

8 Furniture Fixture 4.13 0.01 0.01 4.14 1.26

9 Office equipments incl intangibles 16.49 - 0.01 16.47 3.72

10 Assets not belonging to the Board 0.06 - - 0.06 0.00

Total 4,472.49 173.53 2.04 4,643.97 289.27


Form 3: Calculation of depreciation


Gross Block




FY 2012-13


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 291.30 11.11 - 302.41 -


3 Other Civil works 2.74 0.02 - 2.75 2.10

4 Hydraulic Works 150.51 3.37 0.08 153.81 0.06



7 Vehicles 1.90 0.00 0.00 1.90 1.82


9 Office equipments incl intangibles 16.47 0.16 0.00 16.63 3.64

10 Assets not belonging to the Board 0.06 - 0.06 -

Total 4,643.97 432.24 1.27 5,074.94 299.50

Gross Block




FY 2013-14


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 302.41 5.31 - 307.73 -



4 Hydraulic Works 153.81 95.37 0.49 248.69 0.06



7 Vehicles 1.90 0.17 0.22 1.85 1.79



10 Assets not belonging to the Board 0.06 - - 0.06 -

Total 5,074.94 1,335.13 3.21 6,406.86 311.27

Gross Block




FY 2014-15


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 307.73 24.21 - 331.94 0.00

2 Building & civil works 309.82 72.70 - 382.52 11.84


4 Hydraulic Works 248.69 127.29 0.07 375.92 0.11


6 Plants & Mechainery 2,667.59 2,551.45 0.06 5,218.97 248.39

7 Vehicles 1.85 0.01 0.16 1.70 0.86



10 Assets not belonging to the Board 0.06 - 0.06 -

Total 6,406.86 3,416.41 2.30 9,820.97 566.34

Gross Block




FY 2015-16


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 331.94 46.56 378.50 -

2 Building & civil works 382.52 117.69 500.20 12.80

3 Other Civil works 2.78 - 2.78 0.15

4 Hydraulic Works 375.92 72.96 448.87 12.56

5 Line Cable Networking etc 3,484.36 391.12 3,875.47 184.49

6 Plants & Mechainery 5,218.97 1,435.66 6,654.63 275.57

7 Vehicles 1.70 0.12 1.82 0.19

8 Furniture Fixture 4.82 0.48 5.30 0.31

9 Office equipments incl intangibles 17.91 0.72 18.63 1.56

10 Assets not belonging to the Board 0.06 0.06 -

Total 9,820.97 2,065.29 - 11,886.26 487.61

Gross Block




FY 2016-17


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 378.50 75.88 454.38 0.00% -

2 Building & civil works 500.20 100.28 600.48 3.34% 16.71

3 Other Civil works 2.78 0.56 3.33 3.34% 0.09

4 Hydraulic Works 448.87 89.99 538.86 5.28% 23.70

5 Line Cable Networking etc 3,875.47 776.93 4,652.40 5.28% 204.62

6 Plants & Mechainery 6,654.63 1,334.08 7,988.71 5.28% 351.36

7 Vehicles 1.82 0.36 2.18 9.50% 0.17

8 Furniture Fixture 5.30 1.06 6.36 6.33% 0.34

9 Office equipments incl intangibles 18.63 3.73 22.36 6.33% 1.18

10 Assets not belonging to the Board 0.06 0.01 0.08 5.28% 0.00

Total 11,886.26 2,382.88 - 14,269.14 598.18

Gross Block




FY 2017-18


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land & Land Rights 454.38 95.44 - 549.82 0.00% -

2 Building & civil works 600.48 126.13 - 726.61 3.34% 20.06

3 Other Civil works 3.33 0.70 - 4.04 3.34% 0.11

4 Hydraulic Works 538.86 113.19 - 652.05 5.28% 28.45

5 Line Cable Networking etc 4,652.40 977.23 - 5,629.63 5.28% 245.65

6 Plants & Mechainery 7,988.71 1,678.02 - 9,666.73 5.28% 421.80

7 Vehicles 2.18 0.46 - 2.64 9.50% 0.21

8 Furniture Fixture 6.36 1.34 - 7.69 6.33% 0.40

9 Office equipments incl intangibles 22.36 4.70 - 27.06 6.33% 1.42

10 Assets not belonging to the Board 0.08 - - 0.08 5.28% 0.00

Total 14,269.14 2,997.21 - 17,266.34 718.10

Gross Block




FY 2018-19


depreciationAt the

beginning of the

year

Additions

during the

year

Deductions /

Adjustment

At the end of

the year%

Depreciation on

Assets

1 2 3 4 5 6 7 8

1 Land and Land rights 549.82 121.93 - 671.75 0.00% -

2 Buildings 726.61 161.14 - 887.75 3.34% 24.27

3 Hydraulic works 4.04 0.89 - 4.93 3.34% 0.13

4 Other civil works 652.05 144.61 - 796.65 5.28% 34.43

5 Plant & machinery 5,629.63 1,248.48 - 6,878.11 5.28% 297.24

6 Lines & cables Network 9,666.73 2,143.79 - 11,810.52 5.28% 510.40

7 Vehicles 2.64 0.59 - 3.23 9.50% 0.25

8 Furnitures & Fixtures 7.69 1.71 - 9.40 6.33% 0.49

9 Office equipment 27.06 6.00 - 33.06 6.33% 1.71

10 capital spare at generating stations 0.08 0.02 - 0.09 5.28% 0.00

Total 17,266.34 3,829.16 - 21,095.49 868.93

Gross Block

Rs. CrsForm 3: Operation & Maintenance Expenses - R&M Expenses

SL.

No.Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19

Audited Audited Audited Audited Audited Projections Projections Projections

1 2 4 5 6 7 8 9 10 10

1 Plant & Machinery 3.64 5.21 8.30 6.63 8.76 6.88 7.28 7.69

2 Building 0.08 0.02 0.47 0.53 0.16 0.27 0.28 0.30

3 Civil Works 0.29 0.19 0.24 0.61 0.43 0.37 0.39 0.41

4 Hydraulic work - 0.00 - - 0.00 0.00 0.00 0.00

5 Lines & Cable network 3.42 1.64 2.80 2.51 3.38 2.91 3.07 3.25

6 Vehicles 0.37 0.31 0.42 0.44 0.49 0.43 0.46 0.48

7 Furniture & Fixtures 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00

8 Office equipments 0.16 0.17 0.32 0.30 0.31 0.26 0.28 0.30

9 Total Expenses 7.98 7.53 12.55 11.02 13.53 11.13 11.76 12.43



Rs. CrsForm 3: Operation & Maintenance Expenses - Employee Cost

SL.

No.Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 2 4 5 6 7 8 9 10 10

1 Salaries (Basic) 182.92 185.95 209.27 229.74 257.04 225.17 238.05 251.66

2 DA 103.72 132.41 184.90 234.66 299.43 299.43 299.43 299.43

3 Other Allowances 14.88 14.37 16.66 16.71 18.51 17.15 18.13 19.17

4 Overtime 5.37 1.31 1.68 6.67 12.38 5.80 6.13 6.48

5 Bonus 5.47 6.16 6.96 7.07 7.76 7.07 7.47 7.90

Subtotal 1 312.36 340.19 419.48 494.85 595.12 554.61 569.21 584.64

6 Leave Travel Assistance 0.05 0.03 0.02 0.02 0.04 0.03 0.03 0.04

7 Earned Leave Encashment 19.86 20.15 23.45 26.71 33.84 26.22 27.72 29.31

8 Medical Expense Re-Imbursement 0.37 0.33 0.53 0.39 0.23 0.39 0.41 0.44

9Payment Under Workman'S Compensation

And Gratuity- - 2.92 4.79 4.70 2.62 2.77 2.93

10 Board's Contribution to CPS 5.91 4.61 7.24 9.09 13.25 8.48 8.96 9.48

11 Staff Welfare Expenses 0.20 0.11 0.18 0.60 0.41 0.32 0.33 0.35

12 Terminal Benefits 22.06 214.46 246.19 293.63 317.40 231.26 244.49 258.47

13 Grand Total 360.81 579.89 700.01 830.08 964.99 823.94 853.94 885.66



Form 6: Operation & Maintenance Expenses - A&G Expenses

SL.

No.Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17

FY 2017-

18FY 2018-19


1 2 4 5 6 7 8 9 10 10

1 Rent, Rates & Taxes 0.44 0.88 0.70 0.67 0.81 0.74 0.78 0.82

2 Telephone, Postage & Telegrams 0.89 1.16 1.09 1.05 1.12 1.12 1.19 1.25

3 Consultancy Charges 0.10 0.55 2.64 0.26 - 0.75 0.79 0.84

4 Conveyance & Travel 8.74 10.95 10.28 12.67 13.83 11.94 12.62 13.34

5 Registrar of Companies 1.97 0.29 0.02 - - 0.48 0.51 0.54

6 Insurance 0.04 0.07 0.07 0.04 0.08 0.06 0.07 0.07

7 Insurance (1% on Net Fixed Assets) - - - - -

8 Fees & Subscriptions 0.22 0.02 0.01 0.00 0.01 0.05 0.06 0.06

9 Books & Periodicals 0.01 0.00 0.00 0.00 0.01 0.01 0.01 0.01

10 Printing & Stationery 0.61 0.52 0.42 0.41 0.41 0.50 0.53 0.56

11 Advertisement Expenses 0.08 0.07 0.08 0.12 0.20 0.12 0.12 0.13

12 Petty Office Maintenance Expense 0.70 0.67 0.15 0.15 0.23 0.40 0.43 0.45

13 Electricity Charges 0.36 0.47 1.28 0.90 1.02 0.85 0.90 0.95

14 Water Charges / Cold weather expenses 0.23 0.14 0.20 0.20 0.22 0.21 0.22 0.23

15 Miscellaneous Expenses 0.59 0.28 0.82 1.16 0.94 0.80 0.85 0.90

16 Legal Charges 0.13 0.65 1.01 0.24 1.11 0.66 0.70 0.74

17 Audit Fee/Statutory Audit Fee 0.04 0.05 0.06 0.07 0.07 0.06 0.06 0.07

18 Technical Fees - 0.03 0.06 0.06 0.08 0.05 0.05 0.05

19 Freight Material related Expenses 0.92 1.27 1.86 1.72 2.49 1.75 1.85 1.95

20 Other Purchase Related Expenses 0.14 0.14 0.41 0.17 0.16 0.22 0.23 0.24

21 Entertainment Charges 0.04 - - - - 0.01 0.01 0.01

22 Training Expense 0.20 0.03 0.08 0.26 0.15 0.15 0.16 0.17

23 Public Expenses / Other professinal charges 0.03 0.03 0.06 0.00 0.00 0.03 0.03 0.03

24 Watch and Ward Expense 3.15 5.01 5.33 6.19 7.63 5.78 6.11 6.46

25 Honororium (Food Allwo.) for SO in Chennai - - - - 0.03 0.01 0.01 0.01

26 Total Admin and General Expenses 19.62 23.27 26.62 26.34 30.61 26.74 28.27 29.88



Rs. CrsForm 7: Operation & Maintenance Expenses - Summary

SL. No. Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 2 4 5 6 7 8 9 10 11

1 Repair & Maintenance Expenses 7.98 7.53 12.55 11.02 13.53 11.13 11.76 12.43

2 Employees Cost 360.81 579.89 700.01 830.08 964.99 823.94 853.94 885.66

3 Admn. & General Expneses 19.62 23.27 26.62 26.34 30.61 26.74 28.27 29.88

4 Total Operation and Maintenance expenses 388.41 610.69 739.18 867.44 1,009.13 861.80 893.97 927.98



Rs. CrsForm 7A- Expenses Capitalised

SL. No. Details FY 2011-12FY 2012-13FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 2 4 5 6 7 8 9 10 11

1 Employee Cost Capitalised 69.33 65.71 78.47 89.56 97.40 83.16 86.19 89.39

2 A&G Cost Capitalised 13.61 21.57 39.12 46.56 50.59 4.85 5.13 5.43

3 R&M Cost Capitalised 1.34 0.63 2.27 1.46 3.79 3.12 3.30 3.48

4 Fabrication charges added to the stock 0.00 - 0.01 0.00 0.01 - - -

5 Other debits capitalised 1.38 0.17 0.11 0.13 1.23 - - -

6 Total Operation and Maintenanceexpenses 85.65 88.08 119.97 137.72 153.02 91.14 94.62 98.30



Form 8: Reasonable Return / Return on Equity Rs. Crs

SL.

No.Details Units FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 2 4 5 6 7 8 9 10 11

1 Opening Balance of Equity Rs. Crs - 406.46 913.37 1,082.34 1,953.45 2,207.98 2,413.60 2,713.32

2 Additions during the year Rs. Crs 406.46 506.91 168.97 871.10 254.54 205.62 299.72 382.92

3 Closing Balance of Equity Rs. Crs 406.46 913.37 1,082.34 1,953.45 2,207.98 2,413.60 2,713.32 3,096.24

4 Average Equity Rs. Crs 203.23 659.92 997.86 1,517.89 2,080.71 2,310.79 2,563.46 2,904.78

5 Return on Equity @ 14% 14% 28.45 92.39 139.70 212.51 291.30 323.51 358.88 406.67



Rs. CrsForm 9: Other Debits

SL. No. Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 2 4 5 6 7 8 9 10 11

4 Miscellaneous losses and write off 0.15 6.27 0.04 - 0.49 - - -

Total Other Debits 0.15 6.27 0.04 - 0.49 - - -



Rs crs

SL. No. Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19Audited Audited Audited Audited Audited Projections Projections Projections

1 2 4 5 6 7 8 9 10 11

I Income relating to previous year

1.1 Fuel related gains - - - - - - - -

1.2 Receipts from consumers 0.03 3.74 18.31 2.92 0.13 - - -

1.3 Interest Income 1.07 0.06 - - 0.00 - - -

1.4 Excess provision for I.T. 0.15 0.03 0.01 0.03 - - - -

1.5 Excess provision for Depreciation 0.99 - - - 807.78 - - -

1.6 Excess provn. for Int.& Fin.charges 1.99 9.14 2.07 8.16 839.46 - - -

1.7 Other excess provision 0.76 1.53 18.30 10.90 186.65 - - -

1.8 Other income 2.27 10.16 212.99 24.94 19.74 - - -

Total Income 7.26 24.67 251.68 46.96 1,853.76 - - -

II Prior Period Expenses/losses

2.1 Operating expenses - 0.00 0.04 - - - - -

2.2 Material related expenses - 0.00 0.00 6.93 - - - -

2.3 Employees cost 9.49 290.06 61.13 24.00 5.56 - - -

2.4 Depreciation under provided 0.20 - - - - - - -

2.5 Interest &Finance charges 0.04 13.46 1.17 0.02 1,491.28 - - -

2.6 Other charges 1.27 13.09 17.62 4.78 502.74 - - -

Total Expenses 11.00 316.62 79.97 35.73 1,999.59 - - -

III Total Net Prior Period Credit / Charges 3.74 291.95 (171.71) (11.23) 145.83 - - -



Form 10: Prior Period Income

Form 11: Available Capacity of Transmission System

S. No. Particulars FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

% % % % %

1 400 KV Lines 99.80% 99.78% 99.07% 98.24% 98.98%

2 230 KV Lines 99.63% 99.58% 99.07% 98.85% 98.86%

3 110 KV Lines 99.62% 99.68% 98.93% 98.91% 98.00%

4 66 KV Lines 99.96% 100.00% 99.23% 98.86% 99.55%

7 Annual Availability achieved 99.75% 99.76% 99.07% 98.71% 98.85%

Incentive

SL. No. Particulars FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

% % % % %

1 Equity (@ 1%) 203.23 659.92 997.86 1517.89 2080.71

2 Annual Availability achieved 99.75% 99.76% 99.07% 98.71% 98.85%

3 Target Availability 98% 98% 98% 98% 98%

4 Incentive 3.56 11.61 10.72 10.81 17.63



S. No. Voltage FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

Audited Audited Audited Audited Audited

1 230 KV 0.76% 0.80% 0.84% 0.75% 0.83%

2 110 KV 3.48% 3.34% 3.25% 3.34% 3.28%

Total 4.25% 4.15% 4.09% 4.09% 4.11%


Form 12: Details of Transmission Loss

Rs. Crs

SL. No. Particulars Reference FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 O & M expenses Form 2 (One Month) 25.23 43.55 51.60 60.81 71.34 64.22 66.61 69.14

2 Maintenance Spares 1% of Historic Cost of Transmission

Assets Escalated @ 6%49.14 53.55 67.15 102.08 124.76 149.82 181.23 221.31

3 Receivables Form 1 (Two Month Receivable) 284.51 396.85 460.82 296.01 384.21 348.22 454.68 506.40

4 Total Working Capital 358.88 493.95 579.57 458.90 580.30 562.26 702.52 796.85

5 Rate of Interest on Working Capital 13.00% 14.75% 14.45% 14.75% 14.75% 14.05% 14.05% 14.05%

6 Interest on Working Capital 46.65 72.86 83.75 67.69 85.59 79.00 98.70 111.96


Form 13: Interest on Working Capital


Rs. Crs

S. No. Head of income FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19


1 Interest on Staff loans & Advances 0.71 0.76 0.75 1.07 1.82 2.01 2.21 2.43

2 Delayed Payment Charges from Consumers - - 0.03 0.01 - - - -

3 Interest on Advances to Suppliers / Contractors 2.75 - - 0.00 0.00 0.00 0.00 0.00

4 Interest on Banks (other than on Fixed Deposits) - - - 0.02 0.03 0.03 0.03 0.04

5 Income from Trading 6.45 4.61 4.47 1.45 1.81 2.90 4.64 7.43

6 Income fee collected against Staff Welfare Activities 0.02 0.02 0.01 0.02 0.02 0.02 0.02 0.02

7 Miscellaneous Receipts 27.88 28.47 106.86 157.52 198.13 237.75 285.30 342.36

8 Income from Inter State Lines - - - - - 66.91 12.16 12.16

9 Recovery from Staff for Transport Fare - - 0.03 0.06 0.03 0.04 0.04 0.04

Total 37.80 33.85 112.16 160.15 201.84 309.66 304.41 364.48

Form 16: Details of Other Income



Loading of TANTRANSCO System

SL. No. Generating Station FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19

1 Enore TPS 375 373 377 273 267 269 269 269

2 Tuticorin TPS 966 966 965 964 964 961 961 961

3 Mettur TPS I 771 770 769 768 769 769 769 769

4 NCTPS 577 577 571 571 573 576 576 576

5 Mettur TPS Stage -2 - - 549 556 562 547 547 547

6 North Chennai TPS Stage -2 UI

- - - 557 1,114 1,100 1,100 1,100

7 North Chennai TPS Stage -2 UII

- - - 557 - - - -

8 ETPS Supercritical Expansion

Project - - - - - - - 561

Total Thermal 2,689 2,686 3,231 4,246 4,248 4,221 4,221 4,782

Gas Stations

1 KGTPS 94 95 94 92 93 91 91 91

2 BBGTPS 119 119 119 94 113 113 113 113

3 TKGTPS 101 102 99 97 98 96 96 96

4 VGTPS -I 89 89 89 89 90 88 88 88

5 VGTPS -II 86 86 86 86 - 85 85 85

Total Gas 490 491 487 459 393 472 472 472



Hydro

1 Erode 452 451 489 493 490 490 490 490

2 Kadamparai 592 591 593 591 591 591 591 591

3 Kundah 830 823 830 830 829 829 829 829

4 Tirunelveli 351 351 360 361 364 366 366 366

Total Hydro 2,224 2,216 2,272 2,274 2,274 2,276 2,276 2,276

Wind

1 Tirunelveli and Udumalpet 17 17 17 17 17 17 17 17

Total TANGEDCO Stations 5,420 5,411 6,007 6,996 6,932 6,987 6,987 7,548

Central Generating Stations

1 NLC - TS - I 418 418 475 475 475 475 475 475

2 NLC - TS - II (Stage -I) 171 171 174 169 166 166 166 166

3 NLC - TS - II (Stage -II) 256 256 259 252 248 248 248 248

4 NLC - TS - I (Expansion) 205 205 205 199 202 202 202 202

5 NTPC SR (I & II) 504 505 508 494 479 479 479 479

6 NTPC SR (III) 127 127 128 124 121 121 121 121

7 NTPC - ER 50 50 35 34 35 35 35 35

8 NTPC - Talcher - II 469 469 466 449 448 448 448 448

9 Kayankulam - - - - - - - -

10 MAPS 331 296 297 287 287 287 287 287

11 KAIGA 228 204 209 205 198 198 198 198



12 Simahddri (Stage -II) 17 34 212 204 206 206 206 206

13Kudankulam(U1-COD on

31.12.2014)- - - 500 503 1,005 1,005 1,005

14NLC - TS - II (Expansion) U1+U2

- - - - 236 236 236 236

15 MAPS (Additional) - - - - - - 138 138

16 NTPC - TNEB - JV Vallur (3x500

MW) (U1+U2+U3)- 351 669 978 975 975 975 975

17 NLC - TNEB - JV at Tuticorin

(2x500 MW) (U1+U2)- - - - 381 381 381 381

18Unscheduled Interchange/ Power

Purchase from Pool- - - - - - - -

19Special Allocation during peak hrs.

75 75 75 - - - - -

20 Kudgi STPP ( 3x800 MW) - - - - - 89 267 267

21Neyveli New TPP at Neyveli

(2x500 MW)- - - - - - 290 579

Total Central Generating Station 2,850 3,160 3,712 4,370 4,960 5,551 6,156 6,446



IPP's

1 GMR 190 190 190 190 - - - -

2 Samalpatti 101 101 101 101 - - - -

3 PPN 321 321 321 321 321 321 321 321

4 Madurai 102 102 102 102 102 102 102 102

5 ST-CMS (TAQA) 226 226 226 226 226 226 226 226

6 ABAN(LANCO) 113 113 113 113 113 113 113 113

7 Penna (Pioneer) 53 53 53 53 53 53 53 53

Total IPP's 1,106 1,106 1,106 1,106 814 814 814 814

NCE

1 CPP 151 75 75 75 74 74 74 74

2 Solar 15 20 88 92 1,075 1,412 1,553 1,708

3 Wind (Non REC) 7,065 6,909 7,201 7,417 7,553 7,937 8,176 8,421

4 Cogeneration 617 659 659 659 659 659 659 659

5 Cogeneration - State 15 155 155 155

6 Biomass (Non REC) 75 171 176 223 218 218 218 218

Total NCE 7,923 7,835 8,198 8,467 9,594 10,456 10,835 11,235

Total Loading 17,300 17,512 19,023 20,940 22,301 23,807 24,792 26,043

Sl.No FY 16-17 FY 17-18I.a. 1,671.52 1,735.68 b. 258.34 272.91 c. 9.88 9.88 II.a. 0.07 0.07 b. 84.87 93.36 c. 48.63 53.50 III. 16.00 17.60

2,089.31 2,183.00

Particulars Units FY 2016-17 FY 2017-18

Existing LTOA Transmission Charges Rs./MW/Day 2903 2903FOR TANGEDCOWind Energy MW 2015 2015BioMass Energy MW 218 218Co-Generation MW 659 659Solar MW 1412 1412Others MW 14041 14646Total Capacity 18345 18951Revenue as per Existing Tariff Wind Energy - 40% Rs. Crs 85.41 85.41 BioMass Energy - 50% Rs. Crs 11.55 11.55 Co-Generation - 60% Rs. Crs 41.90 41.90 Solar - 30% Rs. Crs 44.88 44.88 Others - 100% Rs. Crs 1,487.78 1,551.93 Total Rs. Crs 1,671.52 1,735.68

FOR OTHER LONG TERM USERSWind Energy MW 5040 5278BioMass Energy MW 0 0Co-Generation MW 0 0Solar MW 0 141Others MW 422 422Total Capacity 5462 5841Revenue as per Existing Tariff Wind Energy - 40% Rs. Crs 213.62 223.71 BioMass Energy - 50% Rs. Crs - - Co-Generation - 60% Rs. Crs - - Solar - 30% Rs. Crs - 4.48 Others - 100% Rs. Crs 44.71 44.71 Total Rs. Crs 258.34 272.91



Calcualtion of Exisitng Revenue

Calculation of Existing Revenue

Details of Transmission Charges and other

charges INR in CrDescription

Transmission ChargesFor TANGEDCO

Reactive Energy ChargesTotal

Other Long Term Open Access Consumers Short Term Open Access consumers Scheduling & System Operation ChargesFor TANGEDCOOther Long Term Open Access Consumers Short Term Open Access consumers

Sl. No. Particulars Total Gap (Rs. Crs.)

A

1 True-up Revenue Gap of FY 2011-12 (7.67)

2 True-up Revenue Gap of FY 2012-13 98.37

3 True-up Revenue Gap of FY 2013-14 1,432.28



6 Estimated Revenue Gap of FY 2016-17 (323.61)

7TOTAL DEFICIT (-)/ SURPLUS (+) OF THE PAST YEAR

ADJUSTED IN ENSUING YEAR555.07

Total Past Gap



Total Gap to be recovered

Total Gap

FY 2017-18

1 Net Annual Revenue Requirement Rs. Crores 2,728.07

2Less: Revenue from Scheduling & Operating

ChargesRs. Crores (146.93)

3 Less: Revenue from Reactive Energy Charges Rs. Crores (17.60)

4 Gap of Past Years to be recovered Equally Rs. Crores 555.07

5 Total Proposed Revenue Requirement Rs. Crores 2,008.47

6

a Wind Energy MW 7,293.56

b BioMass Energy MW 218.00

c Co-Generation MW 659.00

d Solar MW 1,553.00

e Others MW 15,068.46

f Total Allotted Capacity MW 24,792.20

7 No. of Days No. 365

8 Transmission Charges Rs./MW/Day 2,902.83

9 Transmission Tariff for Short Term open access (Rs./MW/Hr) 120.95


Allotted capacity


Proposed Revenue

UnitParticularsSl. No.

FORM – 2

BEFORE THE HON’BLE TAMIL NADU ELECTRICITY REGULATORY COMMISSION,

CHENNAI

Filing No :

Case No

: M.P.No

of 2017

IN THE MATTER OF : Praying for Approval of Aggregate Revenue Requirement (ARR) for the financial year 2016- 17 to 2018-19.

Tamil Nadu Transmission Corporation Ltd., (TANTRANSCO),

N.P.K.R.R Maaligai, 144, Anna Salai, Chennai -2. ……. Petitioner

Versus

NIL ---- Respondent

Affidavit verifying the petition

I, S.Shanmugam, aged about 54 years S/o M.Sivanu, serving as the

Managing Director/TANTRANSCO, Tamil Nadu Transmission Corporation

Limited (TANTRANSCO) having office at No. 144, Anna Salai, Chennai–

600002, do hereby solemnly affirm and sincerely state as follows:

1. I am the Managing Director of TANTRANSCO, the petitioner herein, as

such I am well acquainted with the facts of the case and authorized

to file the present petition.

2. I solemnly affirm on this the 30th day of January 2017 that the

contents of the above petition are true to my knowledge and I believe

that no part of it is false and no material has been concealed there

from.

Deponent

Verification

I, the above signed petitioner do hereby solemnly affirm at Chennai on this

day of 30 th January 2017 that the contents of the above petition are true and correct to

the best of my knowledge and no material has concealed there from.

Deponent

Signed before me at Chennai on this 30th day of January 2017

Documents

BEFORE THE HON BLE T AMIL NADU ELECT RI CIT Y … Petition/2017/TANTRANSCO-ARR … · 3. APTEL Appellate Tribunal 4. ARR Annual Revenue Requirement 5. AS Accounting Standard 6. AT&C