2.1 pre4,vke - hpseb 2.1 pre4,vke 8 3.1 power purchase cost 10 3.2 transmission and distribution...

For

True-Up from Fy12 to FY14

Submitted to

HIMACHAL PRADESH ELECTRICITY REGULATORY

COMMISSION, SHIMLA

chwf Engines. (G07' Ykdrte

HIMACHAL PRADESH STATE ELECTRICITY BOARD ITSSHIMLA

True-up Petition for second control period FY 2012-14

Distribution Business - HPSEBL

TABLE OF CONTENTS .—.----'_--z

UST OF TABLES

-- 3

1. NrnooucruOm 5

1.2

CONTENTS OF THIS pEnmow .................................................................................................... 6

2. SALES.... — 8

2.1

PRE4,VKE 8

3.1 POWER PURCHASE COST 10

3.2 TRANSMISSION AND DISTRIBUTION LOSSES 18

3.3 ENERGY BALANCE 19

4.1 opomrmwuMAINTENANCE EXPENSES 24

4.2 REPAIRS AND MAINTENANCE COSTS 24

4.3 EMPLOYEE EXPENSES 24

5. DEPRECIATION "_ 28

5.1 DEPRECIATION 28

6 .1 WORKING CAPITAL REQUIREMENT 29

6.2

INTEREST EXPENSES .................................................................................................. 30

6.3 PROVISION FOR BAD AND DOUBTFUL DEBT 32

8 .1 NON-TARIFF INCOME 33

8.2 RETURN ON EQUITY 34

9 .1

REVENUE FROM SALE OF POWER ................................................................................. 39

9.2

REVENUE GAP ...........

............................................................................................. 40

11. CAPITAL INVESTMENT AND CAPITALISATION FOR 2ND

CONTROL PERIOD 41

12. DEPRECIATION poe2NDCONTROL PERIOD 42

13. FUNDING AND INTEREST FOR2"'

PERIOD 44

14. RETURN ON EQUITY FOR2''

psmuxm.--' 49

15. ACTUAL GAP FOR 2ND

CONTROL PERIOD '_---._-- 51

Engirt....

Page 12

P

1',. f

g ". True-up Petition for second control period FY 2012-14


LIST OF TABLES

TABLE 1: APPROVED SALES FOR FINANCIAL YEAR 2013-14 IN 2"D MYT CONTROL PERIOD {M U) 8

TABLE 2: RE-ESTIMATED CATEGORY WISE SALES (MUS) FOR FY 2013-14 IN APR FOR FY 14 9

TABLE 3: ACTUAL SALES AND REVENUE FOR FY 2013-14 AS PER AUDITED ACCOUNTS 9

TABLE 4: APPROVED POWER PURCHASE COST FOR FY 2013-14 11

TABLE 5: ACTUAL POWER PURCHASE COST FOR FY 2013-14 14

TABLE 6: DETAILS OF RPPO COMPLIANCE (NON-SOLAR) BY HPSEBL 17

T4B! E 7: DETAILS OF RPPO COMPLIANCE (SOLAR) BY HPSEBL 18

TABLE 8: T&D LOSS APPROVED BY COMMISSION IN 2ND MYT ORDER FROM FY 12 TO FY 14 18

TAs.:E 9. APPROVED & ACTUAL T&D Loss TRAJECTORY FOR FY 2013-14 19

T?.5LE 10: ENERGY BALANCE APPROVED BY HPERC IN 2"° MYT ORDER FOR FY 2013-14 20

TABLE 11: ENERGY BALANCE APPROVED BY HPERC IN APR FOR FY 2013-14 22

TABLE 12: ENERGY BALANCE 23

TABLE 13: R&M EXPENSES FOR 2ND CONTROL PERIOD (Rs. CRS) 24

TABLE 14: ACTUAL R&M EXPENSES FOR FY 2013-14 24

TABLE 15: EMPLOYEE COST APPROVED FOR FY 2013-14 IN

MYT ORDER (Rs. CRS) 25

TABLE 16: APPROVED EMPLOYEE COST FOR FY 2013-14 IN APR 25

TABLE 17: ACTUAL EMPLOYEE EXPENSES FOR FY 2013-14 26

TABLE 18: APPROVED A&G EXPENSES FOR 2"O MYT CONTROL PERIOD (Rs. CRS.) 27

TABLE 19: ACTUAL A&G EXPENSES FOR FY 2013-14 27

TABLE 20: COMPARISON OF O&M EXPENSES APPROVED VERSUS ACTUAL FOR FY 2013-14 (Rs. CRORES) 28

TABLE 21: APPROVED DEPRECIATION IN 2" MYT ORDER (Rs. CRS.) 28

TABLE 22: ACTUAL DEPRECIATION FOR FY 13-14 (R5. CRS.) 29

TABLE 23: WORKING CAPITAL FOR 2"° MYT CONTROL PERIOD (Rs. CRS) 29

TABLE 24: ACTUAL WORKING CAPITAL FOR FY 2013-14 (Rs. CRS) 30

TABLE 25: DETAILS OF LOAN REPAYMENT APPROVED BY HPERC FOR 2"D MYT CONTROL PERIOD (Rs. CRS.) 30

TABLE 26: APPROVED INTEREST AND FINANCIAL CHARGES FOR 2" MYT CONTROL PERIOD (RS. CRS.) 31

TABLE 27: ACTUAL INTEREST AND FINANCIAL CHARGES FOR FY 2013-14 32

TABLE 28: NET PRIOR PERIOD EXPENSES AS REFLECTED IN THE ACCOUNTS OF FY 2013-14 (Rs CR.) 33

TABLE 29: NON-TARIFF INCOME APPROVED BY HPERC FOR 2" MYT CONTROL PERIOD (Rs. CR5.) 33

TABLE 30: NON-TARIFF INCOME APPROVED FOR FY 2013-14 IN APR ORDER (Rs. CRS.) 34

TABLE 31: ACTUAL NON-TARIFF INCOME FOR FY 2013-14 34

TABLE 32: ACTUAL RETURN ON EQUITY FOR FY 2013-14 (Rs. CRS.) 35

TABLE 33: COMPARISON OF APPROVED ROE VERSUS ACTUAL FOR FY 2013-14 (Rs. CRORE) 35

TABLE 34: ANNUAL REVENUE REQUIREMENT FOR FY 2013-14 (Rs. CRS.) 35

TABLE 35: COMPARISON OF APPROVED ARR VERSUS ACTUAL FOR FY 2013-14 36

TABLE 36: BASIS FOR ARR ALLOCATION 37

TABLE 37: RETAIL & WHEELING ARR FOR FY 2013-14 (Rs. CRS) 37

TABLE 38: REVENUE FROM SALE OF POWER WITHIN HP FOR FY 2013-14 (Rs. CRORE) 39

TABLE 39: REVENUE FROM SALE OF POWER FOR FY 2013-14 (OUTSIDE HP) (Rs. CRORES) 39

TABLE 40: REVENUE FROM SALE OF BANKING POWER FOR FY 2013-14 (Rs. CRORES) 39

TABLE 41: REVENUE SURPLUS/ GAP FOR FY 2013-14 (Rs. CRS) 40

TABLE 42: ACTUAL CAPITAL EXPENDITURE OF EACH YEAR FOR THE 2" CONTROL PERIOD (Rs CR.) 41

TABLE 43: CAPITALIZATION SCHEDULE FOR THE 2"D CONTROL PERIOD (Rs CR) 41

TABLE 44: APPROVED CWIP FOR THE 2"D CONTROL PERIOD (Rs CR) 42

TABLE 45: ACTUAL CAPITALIZATION FOR 2"° CONTROL PERIOD (Rs CR.) 42

TABLE 46: APPROVED DEPRECIATION FOR 2"D CONTROL PERIOD (Rs CR.) 42

TABLE 47: ACTUAL DEPRECIATION FOR FY 2011-12 (Rs CR.) 43

TABLE 48: ACTUAL DEPRECIATION FOR 2012-13 43........................................................................................

TABLE 49: ACTUAL DEPRECIATION (GENERATION) FOR FY 2013-14 43

TABLE 50: ACTUAL DEPRECIATION FOR FY 2011-12, FY 2012-13 & FY 2013-14 44

TABLE 51: ACTUAL DEPRECIATION VS APPROVED DEPRECIATION FOR FY 2011-12, FY 2012-13 & FY 2013-14 44

TABLE 52: MEANS OF FINANCE APPROVED BY THE COMMISSION FOR 2"° CONTROL PERIOD (Rs CR) 44

TABLE 53: ACTUAL FUNDING IN 2"D CONTROL PERIOD (Rs CR.) 44

TABLE 54: LOAN SCHEDULE APPROVED FOR DISTRIBUTION BUSINESS FOR THE 2"° CONTROL PERIOD (Rs CR) 45

TABLE 55: INTEREST CHARGES APPROVED FOR THE 2"D CONTROL PERIOD (Rs CR) 46

Page 1 3Chief en4

(Corn :nerd*HPSE -!. ;. L ., Vii) Lit Bhewen.Shim' - 1''1004

True-up Petition for second control period FY 2012-14Distribution Business - HPSEBL

TABLE 56: ACTUAL INTEREST AND FINANCIAL CHARGES FOR FY 2011-12, FY 2012-13 (Rs CR.) 46

TABLE 57: ACTUAL INTEREST AND FINANCIAL CHARGES (GENERATION) FOR FY 2013-14 (Rs CR.) 48

TABLE 58: COMPARISON OF APPROVED VERSUS ACTUAL INTEREST AND FINANCIAL CHARGES FOR FY 2011-12 (Rs CR.) 48



TABLE 60: DIFFERENCES APPROVED VERSUS ACTUAL INTEREST AND FINANCIAL CHARGES FOR FY 2013-14 (Rs CR.) 48

TABLE 61: APPROVED ROE FOR 2" CONTROL PERIOD (Rs CR.) 49

TABLE 62: ACTUAL RETURN ON EQUITY FOR FY 2011-12 (Rs CR.) 49



TABLE 65: COMPARISON OF APPROVED VERSUS ACTUAL RETURN ON EQUITY FOR FY 2011-12, FY 2012-13 & FY 2013-14 (Rs CR.)

50

TABLE 66: ACTUAL GAP FOR SECOND CONTROL PERIOD FY 2012-14 (Rs CR.) 51

Page ^ 4

T

tyiyialeoC'7dizi 1

lI

True-up Petition for second control period FY 2012-14HPSEBL

1.

INTRODUCTION

1.1

Provisions of Law

1.1.1 Regulation 11 of the HPERC (Terms and Conditions for Determination of Wheeling

Tariff and Retail Supply Tariff) Regulations, 2011 (amendment 2) provides for

procedure of True up for control period and Aggregate Revenue Requirement and

tariff filings during the control period. The relevant extract is reproduced below:

"11. True Up

(1) The true up across various parameters shall be conducted by the Commission, for theprevious years for which the actual/ audited accounts are made available by thedistribution licensee, at the times and as per principles stated below:-(A) at the times -(i)for the previous years of the previous control period for which true-up has not beencarried out and/or for the previous control period:- true up shall be done along with theMYT/APR petition(s) filed for/during the control period;(ii)for the previous years of the control period:- true up shall be done along with theannual performance reviews (APRs) filed during the control period;(iii)for the control period and/or for the years of the control period for which true-up isnot carried out during the control periodtrue up shall be done along with the MYT/APRpetition(s) filed for/during the next control period;Provided that the Commission may entertain true up proposals even prior to the abovetimes if the accounts of the licensee are finalized;(B) as per principles -(a)Variation in revenue / expenditure on account of uncontrollable sales and powerpurchase shall be trued up every year. Truing-up shall be carried out based on theactual/audited information and prudence check by the Commission:

Provided that if such variations are large, and it is not feasible to recover in one yearalone, the Commission may take a view to create a regulatory asset, as per the guidelinesprovided in clause 8.2.2 of the National Tariff Policy:Provided further that under business as usual conditions, the Commission, to ensure tariffstability, may include the opening balances of uncovered gap / trued-up costs in thesubsequent control period's ARR instead of including in the year succeeding the relevantyear of the control period after providing for transition financing arrangement or capitalrestructuring;(b)for controllable parameters -(1) any surplus or deficit on account of the O&M expenses shall be to the account of thelicensee and shall not be trued up in ARR unless such is treated as uncontrollable by theCommission in accordance with these regulations;(II) any surplus or deficit on account of the distribution losses shall be shared between thelicensee and the consumers in accordance with these regulations;(Ill) during mid-term performance review and during the end of the control period true up

(i) O&M expenses treated as uncontrollable may be trued-up on the basis ofy '/'

tual/audited information and prudence check by the Commission;

i ^,^a^ ^ctay dalf any surplus or deficit on account of variations in the costs and targets ofc^,r J.^µa distribution losses treated as uncontrollable, may be trued-up on the basis of

,^oc`,

yPdJ \^F'^ '

P

actual/ audited information and prudence check by the Commission and shall be

Chief ix irmsr (Convnwroirxl)HP.. .,Ltd., Vidyut Bttewen.*biro' - 17'1014

Page 1 5


shared between the licensee and the consumers in accordance with these

regulations;

(iii)the Commission shall review the actual capital investment vis-a-vis approved

capital investment;

(iv) depreciation and financing cost, which includes cost of debt including working

capital (interest), cost of equity (return) shall be trued up on the basis of actual/

audited information and prudence check by the Commission.

(2) The distribution licensee, for the approved true-up of any year over and above that

approved in the Tariff Order for that year, shall be entitled to a carrying cost at the Base

Rate of State Bank of India plus 350 basis points and for any true-up resulting in less than

that approved in the Tariff Order for that year, the carrying cost shall be recovered at the

same rate.

(3) Notwithstanding anything contained in these regulations, the gains or losses in the

controllable items of ARR on account of force majeure, change in law and change in taxes

and duties after adjusting for proceeds from any insurance scheme, if any, shall be passed

on as an additional charge or rebate in ARR over such period as may be mentioned in the

order of the Commission.

1.1.2 HPSEBL is hereby filing the Petition for true up of second control period FY 2012-

14 based on provision of MYT Regulation 2011.

1.2

Contents of this Petition

1.2.1 HPSEBL submits that present petition covers the true up of uncontrollable

parameters of FY 2013-14 and controllable parameters of second MYT control

period w.e.f FY 2012-14 as per the provision provided in the MYT Regulation,

2011.

1.2.2 HPSEBL submits that the present Petition covers the basis, assumptions and

projections of individual elements constituting the actual truing up of annual

revenue requirement for financial year 2013-14. The elements covered in the

present Petition for true-up for financial year 2013-14 are as follows:

• Energy Sales & Revenues (Category wise) at existing tariffs

• T&D Losses and Energy Requirement

• Power Purchase from Own Stations and various other sources to meet the

Energy Requirement

• Fixed Costs

• Gap between Revenue at existing Tariff & Costs

• Segregation of Aggregate Revenue Requirement for Distribution Businesses of

the HPSEBL

• Computation of wheeling tariff

1.2.3 Determination of Fixed Costs for each year of the control period by forecasting the

following costs, other income & returns:

J.‘&.

P

• Employee CostPdvoo

^flV1kas

Y351A F^^ a te' ^, -a 0.P

Chief

mar (Commercial)HPS :,Ltd., Vidyut Bhawan,

1"10.4

Pb-Tl• Operations and Maintenance Cost consisting of

51an1 Icta^Y p^'^.

Repairs & Maintenance Cost

o Admin & General Cost

Page 16

I t4.. ,


• Interest Cost including other finance charges

• Interest on Working Capital

• Depreciation

• Provision for Bad and Doubtful Debts

• Return on Equity

• Non-Tariff Income

1.2.4 The present petition also covers the true-up of controllable parameters of second

control period MYT FY 2012-14 as per the provision of MYT Regulation 2011 with

amendment.

• Capital investment and Capitalisation

• Depreciation

• Funding & Interest

• Return on Equity

1.2.5 The present petition also covers the true-up for generation business as per . HPERC

(terms and conditions for determination of Hydro generation tariff 2007 and as

amended from time to time.

pin

Page ^ 7Chia Etr r (Corr arci&!)HI?SE3:,Ltd., vidy 't ihewen,1M*i+w' - 1 '1 O 4


True-up for FY 2013-14

2.

SALES

2.1

Preamble

2.1.1 This section outlines the actual sales of HPSEBL (Distribution Business) for financial

year 2013-14.

2.2

Approach for Sales Projection

2.2.1 Hon'ble Commission has approved the sales for financial year 2013-14 by taking

into account the category-wise actual trend of past sales. The Commission has

made use of statistical tools such as time trend analysis which helps in forecasting

future values of a variable by fitting a trend line over past values of that variable,

and Compounded Annual Growth Rate (CAGR) which gives the . smoothed

annualized growth rate of a parameter like energy sales in order to capture

fluctuations in the value of that parameter over a period of time.

2.2.2 The approved sales by Hon'ble HPERC for financial year 2013-14 in its MYT order

for second MYT control period is as follows:-

Table 1: Approved Sales for Financial Year 2013-14 in 2nd MYT Control Period (MU)

FY 2013-14Category

Petition Approved

Antodaya/BPL 0.54 0.61

Domestic Supply 1410.00 1422.70

Non-Domestic Non Commercial 114.00 113.56

Commercial Supply 427.00 446.65

Small and Medium Industrial Power 224.00 227.76

Large Industrial Power Supply 4751.00 4858.43

Water Pumping Supply 532.00 519.88

Street Lighting Supply 20.00 13.98

Bulk Supply 422.00 394.07

Temporary Metered Supply 31.00 24.38

Total 7931.00 8022.02

2.2.3 The Hon'ble Commission revised the sales figure for financial year 2013-14 on the

basis, of the actual trend of past sales and estimated sales for the FY 2012-13 of

HPSEBL.

2.2.4 While calculating the CAGR for various periods, sales till FY12 was considered as

the actual sales figures were available till FY 2011-12 and the Commission did not

find merit in including FY 2012-13 figures for working out the various CAGR for

estimating sales for FY 2013-14.

2.2.5 Depending on the specific characteristics of each category, a particular CAGR was

chosen as the basis of sales projection for that category. The category wise actual

i5ionthly sales for the year FY 2013-14 as approved in the APR are as follows:

Page 18


Table 2: Re-estimated category wise Sales (MUs) for FY 2013-14 in APR for FY 14

Part i cularsFY14 Approved sales as

a % of totalPetition Approved

IDomestic Supply 1734.97 1755.62 22.00%

Non-Domestic Non Commercial 114.47 115.46 1.00%

Commercial Supply 463.85 447.58 6.00%

Temporary Supply 27.93 25.16 0.30%

Small & Medium Industrial Power 216.36 216.07 3.00%

Large Industrial Power Supply 4759.23 4731.71 59.00%

Water Pumping and Irrigation Supply 524.67 538.74 7.00%

Street Lighting Supply 14.26 13.94 0.20%

Bulk Supply 170.20 163.38 2.00%

Total 8025.94 8007.66 100%

2.2.6 The actual sales for financial year 2013-14 as per actual accounts of financial year

2013-14 are as follows:-

Table 3: Actual sales and revenue for FY 2013-14 as per Audited Accounts

APR Actual

Consumer CategorySales (MUs)

Revenue(INR Cr)

Sales(MUs)

Revenue(INR Cr)

Domestic 1755.62 713.30 1774 703.87

Commercial 447.58 266.40 451 256.48

Small Supply216.07 115.50

59 31.86

144 95.00Medium Supply

Large Supply 4731.71 2604.90 4288 2434.83

Agriculture/Irrigation538. 74 2 72.00

41 25.24

471 310.18Other (Water Works and Sewerage)

Public Lighting 13.94 7.30 12 5.64

Bulk and Grid Supply 163.38 100.90 151 104.02

NDNC 115.46 68.10 118 72.17

Temporary Metered Supply 25.16 19.50 27 16.29

TOTAL 8007.66 4167.20 7536 4055.58

^.hda( Engir.r (ConyrnQrcial)PSE8., Ltd., Yidy+ut &hewen,Shun' - 17'1814

Page ^ 9


3.

POWER PROCUREMENT

3.1

Power Purchase cost

3.1.1 Hon 'ble Commission had estimated net energy available to the HPSEBL and its

cost for FY 2013-14 of the second MYT Control Period by considering generation

as average of last three years generation. The Commission had also considered

the auxiliary consumption of these plants as per the HPERC Generation

Regulations, 2011 and as mentioned in the corresponding Generation ARR.

3.1.2 The Commission had derived annual fixed charges for central generating stations

(in proportion to HPSEBL 's share) applicable for financial year 2013-14 from the

relevant Tariff Orders issued by CERC. Further, the fixed cost of the plant had been

linked to the projected availability of the plant, in line with the methodology laid

down in the CERC (Terms & Conditions of Tariff) Regulations, 2009. The said

regulations mandate that capacity charges be calculated in such a way that

thermal power stations achieving a plant availability factor higher (or lower) than

the normative availability factor are given a suitable incentive (or disincentive) by

being allowed capacity charge proportionately pro-rated based on their actual

availability factor.

3.1.3 The variable cost including Fuel Price Adjustment (FPA) of central generating

stations for FY 2013-14 was based upon the actual variable cost incurred up to

December 2012 by HPSEBL, and an escalation of 8% (in view of the high coal cost

at present) has been applied on the same to arrive at the projected variable cost

for FY14.

3.1.4 For NHPC hydro stations, annual fixed charges (AFC) as specified in the respective

CERC tariff orders has been considered. In line with the CERC (Terms & Conditions

of Tariff) Regulations, 2009, the annual charges for each station was bifurcated

into two components – a fixed capacity charge equivalent to 50% of the specified

AFC (after deducting the free share of power, if any) and energy charges

calculated by dividing the remaining 50% of the AFC by the design energy of the

plant.

3.1.5 The rate of free power approved was 292 paise/unit has been taken in line with

the Commission's order on Free Power for FY 2013-14 issued.

3.1.6 The Commission had also estimated the cost of power from all stations taking the

composite share (firm share plus unallocated quota, in line with the actual share

received in the past three years) and hence the rate shown of unallocated power

is a weighted average of the rates of the respective stations.

ATTE

V.K. SabflaniAdvocate cum Nctary Pubs

Yash Bhvawun Vikas Naga:Shimla .p

Ghle¢ Ent;

(Con'ir'saarcttaf)'<PSEa,Ltd., Vtay .+r

sn,

Page 110


3.1.7 Based on actual power purchase cost for FY 2011-12 and till January 2013

submitted to Hon 'ble Commission, Hon ' ble Commission while approving Annual

Performance Review for FY 2013-14, had considered a quantum of 1023.72 MU

for banking purposes, and has maintained a contingency buffer of 300 MU which,

in the event of not coming into use for supply within state, is taken as interstate

sale at an average rate of Rs 2.50/unit. This sale rate was deemed as realistic since

sale of contingency buffer would be a last resort sale for the utility, on a day-

ahead basis. Over and above this contingency buffer, the Commission also

estimated an additional surplus of 248.69 MU in view of increased availability of

power from HPSEBL stations of HPSEBL and increased quantum of Free Power as

conveyed by GoHP to HPSEBL. The sale rate for this quantum had been considered

to be Rs 3.00/unit.

3.1.8 The comparison of power Purchase cost approved by Hon'ble Commission in its

2nd MYT order in its APR order for financial year 2013-14 is as follows:-

Table 4: Approved Power Purchase Cost for FY 2013-14

2013-14

Station

MYT Order for FY 2013-14

Approved for APR 2013-14

Quantum(MU)

Cost(Rs Cr)

Quantu

(MU)

Cost(Rs Cr)

Rate(P/unit)

NTPC

Anta GPP 102.86 35.04 90.60 36.37 401.37

Auriga GPP 153.01 49.47 134.08 55.96 417.37

Dadri GPP 172.60 55.23 155.57 63.62 408.91

Unchahar-1 59.23 16.52 51.37 18.69 363.76

Unchahar-II 111.32 31.99 86.85 31.80 366.19

Unchahar-111 71.40 23.34 56.80 24.21 426.22

Rihand-1 STPS 313.92 64.69 251.98 53.74 213.28

Rihand-2 STPS 314.98 54.94 256.34 51.05 199.16

Singrauli STPS 100.13 18.92

Kahelgaon - II 129.31 46.81 122.68 42.91 349.76

NPCIL

NAPS 61.01 12.45 55.61 16.82 302.51

RAPS 83.02 25.10 95.54 35.09 367.30

NHPC

Salal 30.27 2.80 30.87 3.06 99.00

Tanakpur 16.56 3.83 18.05 4.30 238.06

Chamera I 63.08 6.61 63.84 12.64 198.00

Chamera II 61.16 17.66 51.71 14.94 288.89

Uri 78.17 10.44 76.32 12.29 161.01

Dhauliganga 46.59 13.03 39.91 12.12 303.62

Dulhasti 14.27 7.13

HPSEBL

Bhaba 618.09 20.27 614.59 23.66 38.49

Bassi 297.90 21.29 340.00 21.19 62.31

Giri 231.87 13.85 231.87 12.49 53.87

Andhra 55.56 5.82 55.62 4.80 86.32

COMA!), 61.59 7.63 58.02 6.20 106.80

•sE@1fi : 32.69 7.97 34.58 6.27 181.19

Gaj 32.16 7.61 32.82 7.05 214.90

Binwa 27.41 3.95 29.65 3.99 134.61

ATT E

V.K. SaAdvocate cum NeYash Bba,^ m VikiShim .la

1


2013-14

Station

MYT Order for FY 2013-Approved for APR 2013-14

14

Quantum(MU)

Cost(Rs Cr)

Quanta

(MU)

Cost(Rs Cr)

Rate(P/unit)

Thirot 8.07 4.27 8.88 2.94 331.34

Gamma 4.97 2.26 2.52 1.29 509.82

Holt 9.34 2.27 8.25 1.67 202.69

Larji 556.38 132.68 569.17 140.33 246.55

Khauli 33.97 8.47 36.22 7.31 201.92

Nogli 6.69 2.14 7.31 1.61 220.59

Chaba 7.56 1.39 8.10 1.43 176.83

Rukti 0.67 0.57 0.54 0.31 570.67

Rongtong 1.60 1.12, 1.49 0.67 448.54

Chamba 0.25 0.36 0.24 0.19 792.75

Killar1

0.69 0.83 0.54 0.61 1131.55

Sal-II 4.65 0.88 3.96 0.58 145.88

Bhabha Augmentation 23.00 6.79 295.00

THDC

Tehri 89.26 37.08 98.72 46.97 475.79

BBMB

BBMB Old 43.80 3.22 43.80 3.46 79.00

BBMB New 102.84 4.41 342.25 18.11 52.92

Dehar 78.84 4.90 180.68 12.29 68.00

Pong 44.42 1.34 30.25

Shared Stations

Shanan 5.26 0.21 5.26 0.21 40.00

Shanan Ext 45.00 1.80 45.00 1.80 40.00

Yamuna 365.17 21.53 373.51 24.36 65.22

Khara 62.87 2.33 65.88 2.78 42.25

SJVNL

Nathpa Jhakri (SOR) 186.52 66.85 167.14 42.64 255.12

IPPs

Baspa - II 1050.06 251.69 1050.05 267.04 254.31

Baspa-II Secondary Energy 155.00 48.90 315.48

Patikari 68.66 15.45

Private SHPs

Old PPA 594.59 151.62

New PPA 302.92 77.24

REC Mechanism 70.10 15.63

SHPs - Above 5 MW 148.39 39.47 266.00

SHPs - Up to 5 MW (PreferentialTariff)

863.32 249.50 289.00

SHPs - Up to 25 MW (REC Tariff) 50.57 11.13 220.00

Free Power

Baira Siul 31.98 9.47 34.85 10.18 292.00

Chamera-1 80.51 23.83 81.48 23.79 292.00

Chamera-II 54.34 16.09 55.77 16.29 292.00

Shanan Share 1.52 0.45 2.63 0.77 292.00

Ranjeet Sagar Dam Share 28.91 8.56 79.66 23.26 292.00

Malang $ 12.86 3.81 51.98 15.18 292.00

aR,a

,l 39.03 11.55 143.17 41.81 292.00

' 11,'SNtgri 4.26 1.26

Nathpa Jhakri 274.27 81.18 812.01 237.11 292.00

Ghanvi 3.92 1.16 7.91 2.31 292.00

All

f1.Gvoc tt.

N .tL i ^' iiYa , h EE h .4

..^l'" V

Page ^ 12

Chief En J1

%,MPSE$.

3:. vidt+K 2a ;r.'•1rt

- 1:'10+4


2013-14

MYT Order for FY 2013-Approved for APR 2013-14Approved

14

Quantum(MU)

Cost(Rs Cr)

Quantu

(MV)

Cost(Rs Cr)

Rate(P/unit)

Baner 1.61 0.48 4.72 1.38 292.00

Gaj 1.94 0.57 4.47 .1.31 292.00

Larji 26.87 7.95 77.61 22.66 292.00

Khauli 1.72 0.51 4.94 1.44 292.00

Allian Duhangan 29.94 8.86 16.59 4.84 292.00

Budhil 12.18 3.61 12.18 3.56 292.00

Kol Dam 139.24 41.22

Parbati-II 0.00 0.00

Parbati-ill 67.64 20.02 71.65 20.92 292.00

Chamera-1H 40.21 11.90 40.21 11.74 292.00

Rampur project 96.28 28.50

Karcham Wangtoo 166.33 49.24 166.33 48.57 292.00

Sawra Kuddu 12.97 3.84

Uhl-III 16.63 4.92

Ghanvi II 2.19 0.65

Malang II 11.56 3.42 11.56 3.38 292.00

Kashang I 11.29 3.34

Kashang II & III 0.00 0.00

Private Micros 37.40 10.92 292.00

New Projects

Rihand-3 Units-1,2 214.91 67.70 188.05 82.78 440.21

Barh I & II 91.23 28.74 35.03 15.76 450.00

Koldam 554.17 193.96

Chamera III 160.02 56.01 39.27 17.67 450.00

Parbatti II 0.00 0.00

Parbatti III 100.06 35.02 44.18 19.88 450.00

Uri H 17.29 6.05 10.55 4.75 450.00

Koteshwar 39.18 13.71 42.98 19.16 445.74

Uhl-Ill 342.73 119.96

Ghanvi II 34.34 12.02

Sawra Kuddu 38.04 13.32

Kashang I 89.11 31.19

Kashang II & III 0.00 0.00

Rampur 19.82 6.94

Unallocated Power 424.73 124.38 292.84

Banking purchase 1023.72 358.30 350.00

Less: Return of Banking Power 1023.72 358.30 350.00

Singrauli bundled Solar 16.48 7.42 450.00

Bilateral

Bilateral 957.27 335.05

Grand Total 10869.28 2607.56 9857.89 2304.18 233.74

ATT E

V.K.S(lanl

Y Advocate cum Nctary Pub.Yaimla Q n Vikas Naha.,H .1)

Chief !n

d ^^r^ecYwr^t,: s,KPsE .,Ltd., VI4lyi+t i

s4a -17'1814

Page 1 13


V.K. SzcIaniAdvocate cum NYash Bhd v ,n VihShir.la H.P

3.1.9 The actual Power Purchase Cost for the financial year 2013-14 is as follows:

Table 5: Actual Power Purchase Cost for FY 2013-14

StationQuantum

(MU)Cost

(Rs Cr)Rate

(Plunk)

HPSEBBhabha 534.17 32.02 0.60

Bassi 227.85 28.35 1.24

Giri 231.15 19.40 0.84

Andhra 77.66 8.46 1.09

Ghanvi 66.90 10.75 1.61

Ghanvi-II 3.28 7.78 23.73

Bauer 37.44 10.78 2.88

Gaj 40.91 12.21 2.99

Binwa 19.25 5.26 2.73

Thirot 13.85 5.53 3.99

Gumma -0.01 2.26 -3429.96

Holi 8.29 2.81 3.39

Larji 525.84 210.36 4.00

Khauli 39.84 12.32 3.09

Bhabha Augmentation 0.91 20.29 223.96

Nogli 5.92 2.58 4.35

Rongtong 0.65 1.17 18.01

Sal-II 6.65 1.11 1.67

Chaba 4.78 1.82 3.82

Rukti 0.56 0.59 10.58

Chamba 1.49 0.41 2.78

Killar 0.39 0.97 25.04

Total - HPSEB Stations 1847.76 397.24 2.15

Shared StationsShanan (PSEB) 5.26 0.21 0.40

Shanan Ext (PSEB) 45.00 0.93 0.21

Yamuna 481.64 33.62 0.70

Khara 56.86 2.10 0.37

Bhakra Common Pool 43.80 3.77 0.86

Bhakra share(7.19%) 395.50 18.72 0.47

Dehar 178.65 13.44 0.75

Pong 51.89 2.13 0.41

Total - Shared Stations 1258.60 74.92 0.60

IPP - Long Term

Baspa-ll 1050.06 0.00

Baspa-ll Secondary Energy 120.95 0.00 0.00

Total 1171.01 321.01 2.74

Nuclear - NPCILNAPP 94.42 23.50 2.49

RAPP (V & VI) 155.75 53.50 3.43

Total- NPC/L 250.17 77.00 3.08

Thermal - NTPC

Rihand-2 SIPS 230.60 55.17 2.39

Rihand= l STPS 244.85 56.57 2.31

Singrauli 49.69 8.39 1.69

Kahalgaon-II 143.19 58.04 , 4.05

Unchahar-I 44.66 17.28 3.87

Unchahar-II 86.43 33.01 3.82

',tA 82.71 34.29 4.15 ;

0.06 0.06 10.85

Dadri (G) 105.13 47.32 4.50

Dadri (RF) 0.09 0.10 11.49

Auraiya (G) 58.17 30.12 5.18

Page 1 14

Chief EI''

,Ltd.,

40.t.it.7mrv ,


Auriya 0.20 0.25 12.30Unchahar-Itl 51.07 22.43 4.39Dadri II TPS 22.67 11.60 5.12Rihat►d ill 114.98 39.23 3.41.ihaj

STPS 36.57 19.95 5.46Total-HIM 1271.07 433.80 3.41E

Sabi 32.02 5.71 1.78Uri 68.10 15.38 2.26Chamera i 66.19 11.55 1.74Tanakpur 12.12 3.06 2.53Chamera II 60.93 18.97 3.11Dhauliganga 13.58 3.82 2.82Uri It

1.39 0.53 3.82Chamera a III

35.86 15.96 4.45Dhulhasti 14.01 9.56 6.82Sewa 4.11 2.19 5.34Parbati 111 0.28 0.20 7:25Total - NHPC 308.59 86.95 2.82

SJVNLNathpa lhakri 0.00 0.00THDC

Koteshwar 43.59 14.39 3.30Tehri 127.22 51.95 4.08Total 170.81 66.34 3.88

Free PowerBaira Siul 29.59 8.63 2.92Chamera-1 84.93 24.77 2.92Chamera-II 86.35 25.20 2.92Shanan Share 2.63 0.77 2.93Ranjeet Sagar Dam Share 67.84 19.80 2.92Malana 57.65 16.83 2.92Baspa-It 159.68 46.62 2.92Nathpa lhakri 688.56 200.98 2.92Ghanvi 9.12 2.66 2.92Ghanvi-ll 0.44 0.13 2.92Bauer 5.11 1.49 2.92Gaj 5.58 1.63 2.92Larji 71.71 20.94 2.92Khauli 5.45 1.59 2.92Budhil 3.47 1.01 2.91Allian Duhangan(ADHPL) 9.31 2.71 2.91Parbati-III 0.00 0.00Karcham Wangtoo 80.17 23.37 2.91Chamera III 26.31 7.68 2.92Malana II 3.93 1.15 2.92Prior Period Expense 2012-13 29.68Other Prior Expenses 6.66Tangling 0.37 0.11 2.92Rukti-11 0.66 0.19 2.92Sach 0.13 0.04 2.92Suman Sarwari 0.59 0.17 2.92Binwa-IV :0.54 0.16 2.92Patikari 8.85 2.58 2.92Toss 7.06 2.06 2.92Sarbari-II 3.83 1.12 2.92

430ioloiner7 2.99 0.87 2.92lf^ez 5.43 1.58 2.92

Beaskund 3.45i, 0.98 2.92Neogal 3.83 1.12 2.92

ATT E

V.K. Sa la n iAdvocate c+,m NcYash gh avw+n ViktShim la N p

Chia


Kurmi 0.03 0.01 2.92

Jongini 0.00 0.00 2.92

Total - Free Power 1435.48 455.28 3.17

NJPC Equity PowerNathpa Jhakri 0.00 0.00 0.00

SOR Share 200.99 56.84 2.83

22% equity share(PTC) 189.67 98.38 5.19

Total 390.66 155.22 3.97

Market purchase1EX(At NRR Periphery) 113.32 33.40 2.95

Total 113.32 33.40 2.95

GROSS TOTAL POWER PURCHASEPOWER PURCHASE COST 8217.46 2101.17 2.56

POP from PGCIL 263.87

UI Payable by Malana and GoHP 12.57

UI payable by HPSEBL 225.29 24.96

Wheeling charges payable to HPTCL 11.92

POP from IPPS upto 5MW 1161.89 307.70 2.65

POP relates to prior period -0.10

Power purchased in previous years 90.60

Reactive Energy from various CPUs/SEB 3.53

Sub Total - Power Purchase Expenses 9604.64 2816.23 2.93

ULOC Charges (Including POSCO) 1.12

System/ Marketing operation charges Power System (op) Ltd. 1.48

ST Open Access - PTC 52.17

Sub Total - Other Charges 54.77

Total Power Purchase Cost 9604.64 2871.00 2.99

ATTES

VA. Sak niAdvocate cum Nctafy

Pub*Yash Bh,;,wsir,

Shim la N.Pkits Naga,

c rn4m;: rciai, Vidyut Bhawen,

1:'104

Page 116


3.1.10 Actual power purchase cost from BBMB power stations is Rs. 38.06 crores. Due to

netting off power purchase cost against revenue from sale of HP's share of

electricity, the net amount paid for power purchase cost is Rs. 18.92 crores which

is also reflected in actual profit and loss account for FY 2013-14. This also includes

the shanan and shanan ext.

3.1.11 Banking-purchase cost is not included in the power purchase cost. Banking power

purchase worth Rs. 658.99 crores shown in the profit and loss statement has not

been included in the power purchase cost in table above. Banking return has also

not been considered as a part of revenue from sale of power.

3.1.12 Actual power purchase cost from NHPC is Rs. 86.95 crore against 308.59 MUs.

However, in the actual profit and loss the power purchase cost from NHPC is given

as Rs 92.90 cr. The actual amount of Rs 92.90 Cr. also included Rs 5.95 Cr. of past

arrear.

3.1.13 The audited power purchase cost from free power sources for FY 2013-14 is Rs.

455.28 crore. However, the power purchase cost against free power sources for FY

2013-14 in actual profit and loss account is mentioned as Rs. 438.24 crore. The

differences have been of Rs 17.05 Cr has been adjusted/accounted in the next

financial year FY 2014-15 on the sheet of past bill.

3.1.14 The actual power purchase cost from IEX for FY 2013-14 is Rs. 33.40 crore.

However, audtied P&L account reflects Rs. 17 crore. The difference for Rs 16.4 Cr.

is due to the payment of power purchased from IEX platform has been made

directly from settlement account which has not been accounted for during the

year FY 2013-14.

3.1.15 The power purchase cost from remaining sources i.e. IPPs stands at Rs. 307.70

crore. The actual PGCIL charges for FY 2013-14 stands at Rs. 259.88 crore though

in actual account the amount is Rs 263.18, the difference of Rs 3.30 cr. is due to

amount receivable to HPSEB which have been accountable in financial year FY

2014-15. The total UI charges paid for FY 2013-14 is Rs. 37.53 crore.

3.1.16 Power purchase cost from Bhabha augmentation has been considered similar to

that of cost approved by Hon'ble Commission for Bhabha plant. Also, Power

purchase cost from Ghanvi-ll has been considered similar to that of cost approved

by Hon'ble Commission for Ghanvi power plant.

3.1.17 Renewable Power Purchase Obligation (RPPO) has been met by HPSEBL

considering 10% of the total power procured at HP state periphery for sale within

the state.

Table 6: Details of RPPO Compliance (non-solar) by HPSEBL

Sr. No. Particulars Quantum

1 Financial Year 2013-14

2. Energy Sales 7535.83

3. T&D Loss 12.36%

4. Total energy procured for supply 8598.99

Page 117

Chief Mpl r (Commercial)td.. V'd4ut &h wan,

"him'

1004

ArTE

a^

'arjt

The detailed calculations of compliance of RPPO for non-solar are as follows:-Advocate Cum

Notary

ATT


5. Renewable Purchase Obligation (%) 10.00%

6. Renewable Purchase Obligation (MU) 859.90

7. Total R.E. purchased on tariff u/s 62 & 64

a) HPSEBL 's own generation from 25 MW & below projects 328.75

b) Power Purchase from IPP (25 MW & below) 1008.89

c) Free power of GoHP from IPP less than 25 MW 37.66

d) Free power of GoHP from own generation 25.70

Total R.E. purchased 1400.99

8. R.E. sold outside its area of supply 0

9. Total R.E. purchased for supply 1400.99

10. Total surplus RE eligible for REC 541.09

The detailed calculations of compliance of RPPO for non-solar are as follows:-

Table 7: Details of RPPO Compliance (solar) by HPSEBL

Sr. No. Particulars Quantum (MUs)

1. Financial Year 2013-14

2. Energy Sales 7535.83

3. T&D Loss 12.36%

4. Total energy procured for supply within the state 8598.99

5. Renewable Purchase obligation (%)- Solar 0.25%

6. Renewable Purchase Obligation (MUs) 21.50

7. Total Solar purchased on tariff u/s 62 & 64 3.00

8. Total Surplus (+)/ Deficit (-) -18.50

3.1.18 Commission had directed to meet the Shortfall of RPPO- Solar for FY12 and FY13

during FY16 and FY17 respectively, However HPSEBL submits that the surplus Solar

Power projected to be available in FY 16, as filed in APR for FY16 and ARR for FY17,

alone would be able to meet the unmet solar obligation for FY 12 and FY 13.

Further for FY14 Hon'ble Commission has already levied a penalty of FY 17.23 Cr

vide its order dated 10.11.2014

3.2

Transmission and Distribution Losses

3.2.1 The estimates of energy requirement at distribution periphery for the Control

Period are based on the sales and T&D loss reduction trajectory approved by the

Commission. The Commission 's estimated for trajectory of Transmission and

distribution loss as approved in MYT order for second control period is tabulated

as follows:-

lta$ Halo/

Losses (%)FY12 FY13 FY14

Petition Approved Petition Approved Petition Approved

T&D Loss (%) 14.00% 14.00% 13.80% 13.50% 13.60% 12.50%

V.K. SAdvoca

a to ift

Yash eh, cum Nc

Table 8: T&D Loss Approved by Commission in 2nd MYT Order from FY 12 to FY 14Puts..Shirnia

FIPn Vi.

Chief !I rt i

*Mu' - f:`1904'.f

rhra^amisoM6 WAAli m .?,

Page 118


3.2.2 The Commission revised the T&D loss trajectory in the 1st APR Order dated 24

April 2012, laying down a loss reduction target of 0.11% during FY 2011-12, 0.15%

during FY 2012-13 and 0.40% during FY 2013-14, to ensure that the Board reaches

a T&D loss level of 12.00% by the end of the second Control Period. The revised

T&D loss trajectory now approved by the Commission and the actual T&D losses

are as under:

Table 9: Approved & Actual T&D Loss Trajectory for FY 2013-14

2011-12 2012-13 2013-14

MYT APR Actual MYT APR Actual MYT APR Actual

14.00% 12.55% 13.43% 13.80% 12.40% 13.62% 12.50% 12.00% 12.36%

3.3

Energy balance

3.3.1 The Commission 's estimates of energy requirement at distribution periphery for

the Control Period based on the sales and T&D loss reduction trajectory approved

by the Commission in the MYT order for second MYT control period. The

Commission 's estimates for power requirement are tabulated as follows:-

ATT ES

V.K. Sakn1Advocate

Yash gh ^curn Ncta.,yPub..shim la

H ' VihaaName.

Chief En4ir (Commercial)• ' ^EB.,Ltd., Vidyiit 8hwPn,Shim' - 1:1004

True-up Petition for Financial year 2013-14Distribution Business - HPSEBL

Table 10: Energy Balance Approved by HPERC in 2"d MYT Order for FY 2013-14

2013-14 Total Apr May Jun Jul Aug Sep Oct Nov Oec Jan Feb Mar

Power Purchase from Outside 4562.65 328.91 377.88 421.80 481.33 478.28 464.18 479.58 335.87 311.86 296.62 267.40 318.94

Deficit Power Purchase 1029.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 72.35 216.98 302.12 287.40 150.47

Total Purchase outside State 5591.98 328.91 377.88 421.80 481.33 478.28 464.18 479.58 408.22 528.84 598.74 554.80 469.41

Less: PGCIL Losses 202.10 12.01 13.73 15.20 17.27 17.27 16.73 17.36 14.83 19.12 21.53 19.94 17.09

Net Purchased for State 4180.68 328.47 355.89 323.25 229.94 126.31 60.51 196.29 408.22 528.84 598.74 554.80 469.41

Power Sold Outside State 1411.29 0.43 21.99 98.55 251.38 351.97 403.67 283.29 0.00 0.00 0.00 0.00 0.00

Balance Available 2769.39 316.46 342.16 308.04 212.67 109.04 43.78 178.92 393.39 509.72 577.21 534.86 452.32

Power Purchase within State 5349.35 392.42 398.45 444.87 548.62 659.15 721.33 596.39 359.33 262.89 233.69 278.94 453.27

Total Power Available at State Periphery 8118.74 708.88 740.61 752.92 761.29 768.19 765.11 775.31 752.73 772.61 810.90 813.81 905.58

^3hy

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Page 120

True-up Petition for Financial year 2013-14Distribution Business - HPSEBL

3.3.2 While approving energy balance for FY 2013-14 during Annual Performance

Review, Hon'ble Commission had made conservative estimates of availability of

power from various sources, particularly from own generation, shared generation,

BBMB projects, etc. and considering very heavy snowfall during the winter of FY

2012-13 and with forecast of normal monsoon in FY 2013-14, hydel generation

may be more than estimated and 75% of HPSEBL's availability is from hydel

stations. Therefore, the conservative surplus of 548.69 MU may go up. Hence,

Hon'ble Commission projected to avoid purchase of costly power during summer

and monsoon seasons from Central Govt. Generating Stations.

3.3.3 The energy balance approved by Hon'ble Commission in the annual performance

review for FY 2013-14 is as follows:-

Chief !now ( nr iai)HP B.,Ltd., Vidyutrwari,dies' 1"10x4

Page 121

True-up Petition for Financial year 201344Distribution Business - HPSEBL

Table 11: Energy Balance Approved by HPERC in APR for FY 2013-14

Particulars Total Apr May June July Aug Sept Oct Nov Dec Jan Feb March

A Power Purchase from Outside 6406.65 507.77 596.29 641.60 678.59 644.87 631.72 523.58 455.75 426,02 404.84 390.27 505.36

B Deficit/Banking Power Purchase 1023.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 97.17 205.85 276.18 293.52 150.99

C = A+B Total Purchase outside state 7430.37 507.77 596.29 641.60 678.59 644.87 631.72 523.58 552.92 631.87 681.02 683.79 656.35

D Less: PGCIL Losses 209.59 16.59 15.23 14.35 11.13 10.78 11.42 15.93 19.74 22.52 24.24 24.29 23.37

E = C-D Net Purchased for state 7220.78 491.18 581.06 627.25 667.46 634.09 620.30 507.65 533.18 609.35 656.78 659.50 632.98

F Power Sold Outside State 1572.41 44.92 171.95 241.88 371.32 347.48 315.70 79.16 0.00 0.00 0.00 0.00 0.00

G = E-F Balance Available 5648.38 446.26 409.11 385.37 296.13 286.61 304.60 428.50 533.18 609.35 656.78 659.50 632.98

H Power Purchase within state 3451.24 245.27 313.37 349.12 446.52 462.77 441.78 327.83 201.12 144.35 134.27 134.39 250.44

I = C+H Total Power Purchase Ex-Bus 10881.61 753.04 909.66 990.72 1125.11 1107.64 1073.50 851.42 754.04 776.22 815.29 818.18 906.79

J = G+HPower Available at TranscoPeriphery 9099.61 691.53 722.48 734.49 742.66 749.39 746.38 756.33 734.30 753.70 791.05 793.89 883.42

K Less: Intra State TransmissionLosses

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

L = J-K Net Available for sale 9099.61 691.53 722.48 734.49 742.66 749.39 746.38 756.33 734.30 753.70 791.05 793.89 883.42

41,7 .

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Page 1 22


The actual energy balance as per actual figures for financial year 2013-14 is as follows:-

Table 12: Energy Balance

2013-14

Power procurement Total

MUs

Own sources 1847.76

Interstate 5159.50

Banking 1221.68

IPP up to 5 MW 913.53

IPP (5MW-25MW) 248.36

Free Power from IPP (0 MW < X <25 MW) 37.66

Free Power from Own Generation 97.41

Free Power Others 1300.42

Inter-state transmission losses 227.75

Total availability at HPSEBL periphery 10598.58

Sales - within the state 7535.83

T & D losses 12.36%

Power required at HPSEBL periphery for intra state sales 8598.99

Banking sale / return at discom periphery 1311.51

Interstate sales at periphery 688.08

Total power required at HPSEBL periphery 10598.58

Page 123Chief

moor (Commercial)ffP 8., Ltd., Vldyit "''swam,1116+rM' - 1?'1M8


4.

OPERATIONS AND MAINTENANCE EXPENDITURE

4.1

Operation & Maintenance Expenses

4.1.1 Operations and Maintenance (O&M) Expenses of the Company consists of the following

elements:

Repairs and Maintenance Costs

• • Employee Expenses

Administrative and General Expenses

4.2

•

Repairs and Maintenance Costs

4.2.1 The Hon'ble Commission approved K-factor of 0.89% being the average of last 3 years

R&M expenses as a percentage of opening GFA. Accordingly the R&M expenditure

approved for the 2nd MYT period is as under:-

Table 13: R&M expenses for 2nd Control Period (Rs. Crs)

Particulars FY12 FY13 FY14

GFA 3455.27 3681.25 4087.32

K Factor 0.89% 0.89% 0.89%

R&M Expenses 30.81

The actual

(Opening)

R&M expenses for the financial year FY 13-14 is as follows:

32.83 36.45

Table 14: Actual R&M expenses for FY 2013-14

Repair & Maintenance Cost (Rs. Cr) .

Particu lars2013-14

Distribution Generation Total

Plant & Machinery 0.00 12.49 12.49

Buildings 1.86 1.75 3.61Civil Works 0.47 5.07 5.54

Hydraulic Works 0.01 2.42 2.43

Lines, Cables Networks 42.47 1.33 43.80Vehicles 18.63 2.18 20.81Furniture & Fixtures 0.12 0.06 0.18Office Equipments 2.00 0.01 2.01

R&M Cost - Total 65.56 25.31 90.87Any other Items (Reallocated to Capital Works) 2.26 0.00 2.26R&M Costs after Capitalisation 63.30 25.31 88.61Less: Cost Reallocated to Employee Cost & A&G Expenses 12.88 0.00 12.88

Less: Cost Reallocated to Depreciation & Recovery of costof vehicle from O&M and other units

21.80 4.07 25.87

Net R&M Expenses 28.62 21.24 49.86

4.3

Employee Expenses

4.3.1 The summary of employee expenses approved by Hon'ble Commission for financial year

2013-14 in its 2nd MYT order is as follows:-

YKavoe

3^a'h `.Y j,.

ts.p

I/1 chid plow - (Got

ciao

-1:'110


Table 15: Employee Cost Approved for FY 2013-14 in 2nd MYT Order (Rs. Crs)

Particulars FY11 FY12 FY13 FY14

Total Salary Cost (excluding terminal benefits) 596.31 639.69 683.70 728.30

Terminal Benefits 217.44 228.31 239.73 251.71

Less: Effect of Net Attrition - 22.91 51.62 84.04

Less: Capitalisation 49.28 29.41 86.39 62.75

ti

Net Employee Cost approved 764.50 815.68 785.39 833.25

4.3.2 Hon'ble Commission revised the employee cost in its APR order after considering the

base salary cost, base terminal benefits and arrears of pay & terminal benefits paid out

in FY 2011-12, and then used the following methodology.

4.3.3 Employee cost pertaining to the Generation function was reduced from the overall

employee cost for FY 2011-12. The base salary cost allocated to Distribution function

was increased @ 3% per annum.

4.3.4 Increase in Dearness Allowance (as a percentage of basic salary and grade pay) was

taken @ 7% every 6 months, with the hikes being implemented in July and then January

of each financial year. Other costs (grade pay, overtime, bonus, LTA, medical & other

allowances) were pegged to the basic salary (including grade pay) and projected in the

same proportion to basic salary and grade pay as the actual proportion observed in

FY12.

4.3.5 Base terminal benefits were increased at the rate of 5% p.a. considering the deletions in

the list of pensioners. Addition to terminal benefits on account of attrition of employees

and their consequent pension liability was considered in the form of 50% of the impact

of employee attrition in the respective year.

4.3.6 Arrears of terminal benefits and Pay Commission were also considered by Hon'ble

Commission in FY 2013- 14. Impacts of employee attrition in terms of reduction in

employee cost were also considered. Capitalization of employee expenses was

calculated in the same percentage of gross employee cost (without terminal benefits

and arrears) as observed in FY 2011-12.

4.3.7 The revised employee cost approved by Hon'ble Commission in APR for financial year

2013-14 is as follows:-

Table 16: Approved Employee cost for FY 2013-14 in APR

5. No. Employee Cost (Rs. Cr) FY 2013-14

A Break up of Gross Employee Cost for Distribution function

--.( Salaries (Basic) + Dearness Pay 334.26

^VU.,;:y az̀t, ' '3?`

Sit►+t ` - .i '1 *! 4


S. No. Employee Cost (Rs. Cr) FY 2013-14

2 Grade pay 73.31

3 DA 327.00

4 Other Allowances 27.14

5 Overtime and Bonus 2.30

6 Other Staff Cost 49.70

A-Total Gross Employee Cost for Distribution - Total 813.71

B Break up of Terminal Benefits

Base Terminal Benefits 285.32

Addition on account of employee attrition 28.96

Arrears of Terminal Benefits 0.00

B-Total Terminal Benefits - Total 314.28

C-Total Pay Commission - Arrears 0.00

A+B+C Gross Employee Cost for Distribution 1127.98

Less: Employee Cost Capitalization 45.00

Less: Employee Attrition Impact 57.92

Net Employee Cost for Distribution Function 1025.06

4.3.8 The actual employee cost for financial year 2013-14 as per actual accounts is as

follows:-

Table 17: Actual Employee expenses for FY 2013-14

Employee Cost (Rs. Cr)Employee

Particu lars2013-14

Distribution Generation TotalSalaries & AllowancesSalaries (Basic) + Dearness Pay 292.76 31.69 324.45

Merger of DA with Basic (Proposed) 0.00 0.00 0

Grade pay 60.11 6.60 66.71

DA 296.51 30.25 326.76

Employee Arrears - 5th Pay Commission 0.00 0.00 0

Other Allowances 31.64 2.61 34.25Overtime 3.32 1.71 5.03Bonus 0.19 0.07 0.26Salaries - Total 684.53 72.93 757.46Other Staff CostMedical Expense Reimbursement 8.96 1.02 9.98Fee & Honorarium 0.07 0.00 0.07Earned Leave Encashment 69.28 4.98 74.26Salary/Wages of Outsouced/Contractor. 5.19 0.07 5.26Leave Salary Contribution 0.00 0.00 0Payment under Workmen's Compensation 1.31 0.02 1.33LTC 0.11 0.02 0.13Staff Welfare Expenses/ employee contribution towards CPS 0.71 0.00 0.71Other Staff Cost - Total 85.63 6.11 91.74Terminal BenefitsProvident Fund Contribution 0.00 0.00 0Pension - Base 318.97 0.00 318.97Pension - 5th Pay Commission Arrears 0.00 0.00 0

Gratuity 124.57 0.18 124.75Any other Items (MRC to pensioners, benovelant fund and

DLI)9,50

0.55 10.05Terminal Benefits - Total 453.04 0.73 453.77Gross E,ppJoyee Cost

A 1,223.20 79.77 1,302.97

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Employee Cost (Rs. Cr)

Particulars2013-14


Less : Employee Cost Capitalisation 45.65 1.87 47.52

Less : Employee Attrition Impact 0.00 0.00 0

Add: Prior period expenses 9.69 1.30 10.99

Net Employee Cost 1,187.24 79.20 1,266.44

4.4

Administrative and General Expenses

4.4.1 The Commission had determined the A&G expenses for the Control Period using the

methodology detailed in the MYT Regulations, 2011. The A&G expenses for the nth year

of the Control Period (A&Gn) shall be determined using the A&G expenses for the (n-

1)th year (i.e. A&Gn-1) and the average increase in the Wholesale Price Index (WPI) for

immediately preceding three years before the base year in 2"d MYT order.

4.4.2 The summary of A&G expenses approved by the Commission for the Control Period is

shown as follows:-

Table 18: Approved A&G Expenses for 2"d MYT Control Period (Rs. Crs.)


Average increase in WPI - 1.07 1.07 1.07

Total A&G Cost Approved 33.97 36.26 38.71 41.33

Less: Capitalisation 3.05 1.98 5.61 3.08

Net A&G Cost approved 30.92 34.28 33.11 39.24

and R& M for expenses for financial yearand General Expenses4.4.3 Administrative 2013-14

had not been revised by Hon'ble Commission in Annual Performance Review. The actual

A & G cost for financial year 2013-14 as per actual accounts is as follows:-

Table 19: Actual A&G expenses for FY 2013-14

Administrative & General Expenses(Rs. Cr)

P articu lars2013-14

Distribution Generation TotalAdministration ChargesRent, Rates & Taxes 1.33 0.02 1.35Telephone, Postage & Telegrams 2.48 0.21 2.69Consultancy Charges 1.16 0.09 1.25Conveyance & Travel 16.31 1.14 17.45

Regulatory Expenses 0.98 0.00 0.98

Income Tax Updating Charges 0.05 0.01 0.06

Consumer Redressal Forum 0.66 0.00 0.66Insurance 0.02 0.00 0.02Purchase Related Expenses & Other Charges 1.21 0.00 1.21IT and other Initiatives 0.00 0.00 0Administration Charges - Total 24.20 1.47 25.67Other ChargesFees & Subscriptions, Books & Periodicals 0.18 0.01 0.19Printing & Stationery 1.68 0.14 1.82Advertisement Expenses 0.42 0.01 0.43Electricity Charges 3.69 0.11 3.80Water Charges / Cold weather expenses 0.30 0.02 0.32

Miscellaneous Expenses 0.39 0.00 0.39

Legal Charges 0.61 0.06 0.67Audit Fee 0.27 0.00 0.27

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Administrative & General Expenses(Rs. Cr)

Particulars2013-14

Distribution Generation TotalFreight Material related Expenses 0.06 0.00 0.06

Entertainment Charges 0.06 0.00 0.06

Training to Staff 0.14 0.00 0.14

Public Interaction Program 0.21 0.00 0.21

Public Expenses / Other professinal charges 1.85 0.00 1.85

Electricity Charges 3.80 0.00 3.8GIS / GPS expenses related to High level Committee 0.63 0.00 0.63Exp. On proving Cost Free CFL Bulb to D/S consumer 0.00 0.00 0Transaction Charges to SCAB for collecton of energy bills 0.42 0.00 0.42

Statatutory Audit Fee 0.02 0.00 0.02

Internal Audit Fee 0.00 0.00 0

TA/DA Statutory Auditor 0.08 0.00 0.08

DSM Program 0.00 0.00 0

A&G - Total 39.01 1.82 40.83Less: Capitalisation 1.58 0.01 1.59Add: Prior period adjustment 13.08 0.14 13.22Net A&G Costs 50.51 1.95 52.46

The comparison of 0 & M expenses approved in MYT order, APR and as per actual is as follows:-

Table 20: Comparison of O&M Expenses Approved versus Actual for FY 2013-14 (Rs. Crores)

Particulars APR FY14 Actual

Employee expenses (Gross) 1127.98 1223.20

Less: Impact of employee attrition 57.92

R&M expenses 36.45 28.62

A&G expenses (Gross) 42.33 39.01

Total O&M Expenses (Gross) 1148.84 1290.83

Net Prior Period Expenses 22.77

Less: Capitalization on account of employee cost and A&G cost 48.05 47.23

Total O&M expenses (Net) 1100.79 1266.37

5.

DEPRECIATION

5.1

Depreciation

5.1.1 Hon'ble Commission had calculated the depreciation for 2nd MYT control period

@2.50% in line with the practice followed in the previous tariff orders.

Table 21: Approved Depreciation in 2nd MYT Order (Rs. Crs.)

ParticularsParticulars FY11FY11 FY12FY12 FY13FY13 FY14FY14

Opening GFA 3247.01 3455.27 3681.25 4087.32

Addition 407.34 225.98 406.08 547.25

Reduction 199.08 0 0 0

Closing GFA 3455.27 3681.25 4087.32 4634.58

Depreciation Rate 2.50% 2.50% 2.50% 2.50%

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FY14Particulars FY13FY12FY11

89.21 97.11 109.02Depreciation

86.27

5.1.2 Hon'ble Commission had not revised the figures of depreciation in its Annual

Performance Review.

5.1.3 The actual depreciation for financial year 2013-14 as per actual accounts is as follows:-

Table 22: Actual Depreciation for FY 13-14 (Rs. Crs.)

Asset Depreciation Generation Total

Land & Land Rights 0.02 0.02 0.04

Buildings 2.91 3.26 6.17

Hydraulic Works 0.62 64.11 64.73

Other Civil Works 4.62 3.60 8.22

Plant & Machinery 52.40 50.37 102.77

Lines & Cable Net 36.23 12.11 48.34

Vehicles 0.52 0.03 0.55

Furniture & Fixtures 0.44 0.08 0.52

Office Equipments 2.18 0.10 2.28

Data Processing Equipments 0.00 0.02 0.02

Assets not Belonging to the Board 0.00 3.26 3.26

Total 99.94 133.67 233.61

6.

INTEREST AND FINANCIAL CHARGES

6.1

Working Capital Requirement

6.1.1 The interest on working capital was calculated based on the normative working formula

prescribed by HPERC MYT Tariff Regulations. Based on the approved O&M Expenses,

expected receivables and consumer security deposits, the Commission approved the

working capital requirement for the Control Period provided in the table as follows:-

Table 23: Working capital for 2nd MYT Control Period (Rs. Crs)


R&M expenses 30.81 32.83 36.45

A&G expenses 36.26 38.71 42.33

Employee expenses 845.09 871.78 896.00

Total O&M expenses 912.17 943.32 974.77

1/12th of total O&M Expenses 76.01 78.61 81.23

Receivables equivalent to 2 months average billing 511.45 526.06 617.99

Maintenance Spares 40% of the R&M expense for one month 1.03 1.09 1.21

Less: Consumer Security Deposit 284.09 326.70 375.70

Power Purchase Expenses (including transmission cost) 2270.58 2434.24 2797.71

Less: One Month Power Purchase 189.21 202.85 233.14

Working Capital Requirement 115.19 76.22 91.58

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6.1.2 Based on the actual computation of O&M expenses, receivables and other parameters,

the working capital requirement for financial year 2013-14 is given in the table below:-

Table 24: Actual Working capital for FY 2013-14 (Rs. Crs)

Interest on Working Capital for Retail Business FY 2013-14

1/12th of total O&M Expenses 2.16

Receivables equivalent to 2 months average billing 705.04

Maintenance Spares 40% of the R&M expense for one month 0.10

Less: Consumer Security Deposit 267.63

Less: One Month Power Purchase 211.41

Working Capital Requirement 228.25

1 interest on Working Capital @ 14.45% per Annum 32.98

Interest on Working Capital for wheeling Business FY 2013-14

1/12th of total O&M Expenses 5.23

Receivables equivalent to 2 months of wheeling charges 19.97

Maintenance Spares 40% of the R&M expense for one month 0.86

Less: Consumer Security Deposit

Working Capital Requirement 26.05

Interest on Working Capital @ 14.45% per Annum 3.76

Total Interest on Working Capital 36.75

6.2

Interest Expenses

6.2.1 HPERC had approved the details of loan and corresponding interest and financial

charges on the basis of approved gross fixed asset addition along with the inclusion of

capitalization schedule based on approved capital expenditure plan.

6.2.2 The approved details of loan for financial year 2013-14 is as follows:-

Table 25: Details of Loan Repayment Approved by HPERC for 2nd MYT Control Period (Rs. Crs.)(Rs. Crs.)

Loan FY11 FY12 FY13 FY14

LIC

Opening Balance 4.69 2.95 1.20 0.00

Addition 0.00 0.00 0.00 0.00

Repayments 1.74 1.74 1.20 0.00

Closing Balance 2.95 1.20 0.00 0.00

PFC

Opening Balance 27.67 17.90 8.13 7.45

Addition 0.00 0.00 0.00

Repayments 9.77 9.77 0.68 0.68

Closing Balance 17.90 8.13 7.45 6.77

REC

Opening Balance 134.12 114.56 82.96 51.36

Addition 0.00 0.00 0.00

Repayments 19.57 31.60 31.60 31.60

Closing Balance 114.56 82.96 51.36 19.76

RGGY


Addition 0.00 0.00 0.00 0.00

Repayments 0.07 0.07 0.07 0.07TT

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Page ^ 30


Loan FY11 FY12 FY13 FY14


Bank Loan


Addition 0.00 0.00 0.00 0.00

Repayments 0.00 4.00 0.00 0.00


Non MLR Bonds

Opening Balance 201.97 114.21 79.95 45.69

Addition 0.00 0.00 0.00 0.00

Repayments 87.76 34.26 34.26 45.69

Closing Balance 114.21 79.95 45.69 0.00

State Govt Loans

Opening Balance 16.30 15.25 14.03 12.81

Addition 0.00 0.00 0.00 0.00

Repayments 1.05 1.22 1.22 1.67

Closing Balance 15.25 14.03 12.81 11.14

Market Bonds

Opening Balance 10.00 5.50 0.00 0.00

Addition 0.00 0.00 0.00 0.00

Repayments 4.50 5.50 0.00 0.00


New loans for CAPEX (FY09-11)

Opening Balance 139.40 363.81 302.90 252.18

Addition 285.32 0.00 0.00 0.00

Repayments 60.91 60.91 50.72 39.02

Closing Balance 363.81 302.90 252.18 213.15

New loans for CAPEX (FY12-14)

Opening Balance 0.00 0.00 155.54 376.76

Addition 0.00 172.82 265.00 493.73

Repayments 0.00 17.28 43.78 93.56

Closing Balance 0.00 155.54 376.76 780.94

Total (Closing)

Opening Balance 538.75 638.70 645.16 736.43

Addition 285.32 172.82 265.00 497.73

Repayments 185.38 166.36 163.54 212.28

Closing Balance 638.70 645.16 746.62 1032.06

6.2.3 The approved details of interest and financial charges for financial year 2013-14 is as

follows:-

Table 26: Approved Interest and Financial Charges for 2nd MYT Control Period (Rs. Crs.)


LIC 0.19 0.05 0

PFC 0.32 0.19 0.18

REC 9.69 6.59 3.49

Banks 0.18 0

Non SLR Bonds 10.09 6.53 2.37

State Govt Loans 1.7 1.56 1.39

Market Bonds 0.33 0

Other Short Term

Interest on New loans for capex (FY09-11) 34.17 28.45 23.85

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interest on New loans for capex (FY12-14) 9.33 31.94 69.46

interest on Consumer Deposit 6.59 7.58 8.71

Interest on Working Capital 15.26 10.1 12.13

1 Total Interest Charges 87.85 92.98 121.59

Less: Interest Charges on Loans transferred for HPPTCL assets 0.66 0.51 0.39

Net Interest and Finance Charges 87.19 92.47 121.19

6.2.4 The details computation of actual interest and financial charges for financial year 2013-

14 is as follows:-

Table 27: Actual Interest and Financial Charges for FY 2013-14

Interests & Financing Cost (Rs. Cr)

Part icu lars2013-14

Distribution Generation TotalRGGVY 0.00 0LIC 0.00 11.91 11.91REC 82.45 9.43 91.88PFC 50.72 32.41 83.13Bonds 21.32 6.15 27.47Bank Loans 28.86 28.41 57.27Interest on State Govt. Loan 0.00 0 0Non SLR Bonds 0.00 0 0Other Negotiated Loan 89.76 0 89.76Interest on Overdraft 130.72 0 130.72Interest on GPF & CPF 42.39 0 42.39Cost of Raising Finances 6.76 0 6.76Other Charges 107.85 0 107.85Interest on Consumer Security Deposits 16.84 0 16.84Charges payable to CTU / NLDC 0.00 0 0Rebate allowed for Timely Payment 0.00 0 0Interest & Finance Charges - Total 577.67 88.31 665.98Additional Debt Infusion due to Capitalization 0.00 0 0Interest on Debt 0.00 0 0Cummulative Interest 0.00 0 0Interest & Finance Charges 577.67 88.31 665.98Less: Interest Capitalisation 119.49 0.32 119.81Add: Prior Period Expenses 50.26 0 50.26Net Interest & Financing Costs 508.44 87.99 596.43

6.2.5 The actual interest and financial charges for FY 2013-14 is Rs. 596.44 Crore. This amount

includes interest on working capital.

6.3

Provision for Bad and Doubtful Debt

6.3.1 Bad debt for the financial year 2013-14 is INR 0.87 Cr. HPSEBL requests the Hon'ble

Commission to approve the same.

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7.

NET PRIOR PERIOD CHARGES

The actual net-prior expenses for FY 2013-14 are as follows:-

Table 28: Net Prior Period Expenses as Reflected in the Accounts of FY 2013-14 (Rs Cr.)

FY 2013-14

Particulars Total Distt Gen

Operating expenses of previous years 0.43 -0.10 0.53_

Depreciation under provided for previous years 1.61 1.57 0.04

Other charges relating to prior periods 0.00 0

Sub- Total 2.04 1.47 0.57

HPSEBL submits that the net prior period expense as mentioned in the computation of power

purchase cost, Interest and Financial charges and employee cost are other prior period

expenses and these expenses are not included in the table above.

8.

NON TARIFF INCOME

8.1

Non-Tariff Income

8.1.1 Non-Tariff income approved by Hon ' ble Commission for FY 2013-14 in 2nd MYT order is

as follows:-

Table 29: Non-Tariff Income Approved by HPERC for 2"d MYT Control Period (Rs. Crs.)


Interest Income from Investments 10.54 11.06 11.62

Interest on loans and Advances to staff 0.61 0.64 0.67

Interest on Advances to Suppliers / Contractors 0.19 0.20 0.21

Income from Trading (other than Electricity) 1.22 1.28 1.35

Income/Fee/Collection against staff welfare activities 0.07 0.07 0.07

Miscellaneous receipts 38.88 40.82 42.86

Delayed payment charges from consumers 12.16 12.77 13.41

Meter Rent 41.92 44.02 46.22

Recovery from theft of energy 32.13 33.73 35.42

Wheeling charges 42.70 44.83 47.08

Misc. charges from consumers 4.17 4.38 4.59

Investigation fees reimbursement 100.00 150.00 50.00

O&M Charges from HPPTCL 4.70 5.18 5.69

Total NTI 289.29 349.00 259.20

8.1.2 The non-tariff income approved by the Commission for FY14 was kept at the same level

as approved in the second MYT Order (FY12 to FY14), with an additional Rs. 50 Crores

being added to the utility's expected Non-Tariff Income, which was 50% of the amount

that was recoverable from various agencies in FY12 for survey & investigation activities.

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8.1.3 The revised non-tariff income approved by Hon'ble Commission in the Annual

Performance Review is as follows:-

Table 30: Non-Tariff Income Approved for FY 2013-14 in APR Order (Rs. Crs.)

Particulars FY 2013-14

interest

from Investments 11.62

Interest on loans and Advances 0.67

Suppliers / ContractorsInterest on Advances to SuppliersAdvances 0.21

Trading (otherthan Electricity) 1.35

Income/Fee/Collectionagainst staff welfare activities 0.07

Miscellaneous receipts 42.86

Delayed payment charges from consumers 13.41

Meter Rent 46.22

Recovery from theft of energy 35.42

Wheeling charges

Table

to

31:

staff

Actual Non-Tariff Income for FY 2013-14

8.1.4

Actual

income

Non-Tariff Income for the financial year 2013-14 is mentioned below:

47.08

Misc. charges from consumers 4.59

Survey & Investigation cost reimbursement 50.00

O&M Charges from HPPTCL 5.69

Sub Total 259.20

Add: 50% of survey & investigation cost reimbursement recoverable in FY12 50.00

Total NTI 309.20

Non Tariff Income (Rs. Cr)

Particulars2013-14


a) Meter Rent/Service Line Rentals 45.52 0.00 45.52

b) Recovery for theft of Power / Malpractices 0.05 0.00 0.05

c) Wheeling Charges Recovery 119.79 0.00 119.79d )Peak Load Vialotion Charges 0.42 0.00 0.42

d) Miscellaneous Charges from Consumers 9.96 0.00 9.96Non Tariff Income - Total 175.74 0.00 175.74Other Incomea) Interest on Staff loans & Advances 0.54 0.00 0.54

b) Income from Investments 4.20 0.00 4.20c) Interest on Loans & Advances to Licensees 0.00 0.00 0.00d) Delayed Payment Charges from Consumers 54.22 0.00 54.22e) Interest on Advances to Suppliers / Contractors 1.37 0.00 1.37f) Interest on Banks (other than on Fixed Deposits) 0.00 0.00 0.00g) Income from Trading 2.15 0.49 2.64h) Income fee collected against Staff Welfare Activities 0.06 0.02 0.08

i) Miscellaneous Receipts 30.18 0.98 31.16

j) O&M Charges Recovery from HPPTCL 0.00 0.00 0.00

k) Recovery of Investigation & Survey Charges 0.00 0.00 0.00

Prior period Income 51.61 0.90 52.51Other Income - Total 144.33 2.39 146.72Total Non Tariff Income & Other Income 320.07 2.39 322.46

8.2

Return on Equity

8.2.1 As per HPERC (Terms and Conditions for Determination of Wheeling Tariff and Retail

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Supply Tariff) Regulations, 2011 read along with Amendment 1, 2011 and Amendment

2, 2013, the Return on equity for the distribution licensee (sum of return on equity for

wheeling business and return on retail supply business) shall be computed on the paid

up equity capital and shall be 16% per annum (post tax)

8.2.2 Accordingly, HPSEBL has computed the Return on Equity considering a rate of return at

16%. HPSEBL submits that for the computation purpose the average equity is considered

since equity infused during the year shall be during the year not from the beginning of

the year.

8.2.3 The Hon'ble Commission didn't finalize the equity infusion in the second control period

and had mentioned in the MYT Order of Second Control Period that it shall true-up the

funding and financing approved at the end of the Second Control Period.

8.2.4 Equity of distribution business was INR 242.96 Cr at the end of FY 2012-13 and INR 44.15

Cr was added in the year FY 2013-14. Following table summarizes the actual return on

equity of HPSEBL for FY 2013-14:

Table 32: Actual Return on Equity for FY 2013-14 (Rs. Crs.)

ROE: FY 2013-14

Generation Distribution

Opening Equity 203.68 242.96

Equity Infusion 107.46 44.15

Closing Equity 203.68 287.11

Rate of return 15.5% 16%

ROE 39.90 42.41

Total ROE 82.30

The comparison of RoE approved in MYT order, APR and as per actual is as follows:-

Table 33: Comparison of Approved RoE versus Actual for FY 2013-14 (Rs. Crore)

Particulars MYT APR Actual

RoE 30.24 30.24 42.41

8.3

Aggregate Revenue Requirement

8.3.1 As discussed in above paragraphs and various expenses heads, table below summarizes

the actual Aggregate Revenue Requirement for FY 2013-14:-

Table 34: Annual Revenue Requirement for FY 2013-14 (Rs. Crs.)

Particulars 2013-14

Distribution Generation

Power Purchase Expenses 2536.91

PGCIL Charges 263.87

HPPTCL Charge

A11.92

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Sub-Total Power Purchase Expense 2867.47

Employee Cost 1223.20 79.77

R&M Cost 28.62 21.24

A&G Cost 39.01 1.95

Interest & Financing Charges508 .44 87.99Interest on Working Capital

Depreciation 99.94 133.67

Return on Equity 42.41 39.90

Less: Non-Tariff Income 320.07 2.39

Less: Capitalisation of Expenses 47.23 1.88

Add: Bad Debt 0.87

Add: Consumer Contribution towards RPPO Compensation Fund (asper HPERC order dated 10th November 2014)

5

Net Prior Period Expenses 2.04 1.44

Aggregate Revenue Requirement 4443.14 365.96

The Comparison of ARR approved versus actual for FY 2013-14 is as follows:-

Table 35: Comparison of Approved ARR versus Actual for FY 2013-14

2013-14Particulars

MYT APR Actual Difference

Power Purchase Expenses 2607.56 2311.50 2534.66 223.16

PGCIL Charges 178.23

,eng

ULDC and other charges

54.77

199.24 259.88 60.64

HPPTCL Charges 11.92 11.92 11.92 0.00

Total Power- Purchase Cost 2797.71 2522.66 2806.46 283.8

Operation & Maintenance Costs 974.77 1148.84 1290.83 141.91

Employee Cost 896.00 1070.06 1223.20 153.14

R&M Cost 36.45 36.45 28.62 -7.83

A&G Cost 42.33 42.33 39.01 -3.32

Interest & Financing Charges 109.06 109.06 508.44 399.38

Interest on Working Capital 12.13 12.13 36.77 24.64

Depreciation 109.02 109.02 99.94 -9.08

Return on Equity 30.24 30.24 42.41 12.17

Less: Non-Tariff Income 259.20 309.20 320.07 10.87

Less: Capitalisation of Expenses 65.83 48.05 47.23 -0.82

ADD: Bad Debt 0.87 0.87

Add: Consumer Contribution towardsRPPO Compensation Fund (as per HPERCorder dated 10th November 2014)

5.00 5.00


Aggregate Revenue Requirement 3707.91 3574.71 4425.47 850.76

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Generation

2013-14

MYT Actual Difference

Operation & Maintenance Costs 86.97 106.9 19.93

interest & Financing Charges 29.6987.99 50 .25

interest on Working Capital 8.05

Depredation 83.78 133.67 49.89

Return on Equity 37.12 39.90 2.78

Less: Capitalisation of Expenses 1.88 1.88


Aggregate Revenue Requirement 245.61 369.9 124.29

8.3.2 Allocation of ARR into wheeling and retail supply

The total ARR for HPSEBL has been divided into wheeling ARR and retail supply ARR based on

the approach adopted by the Hon' HPERC in its Tariff Order for the 2nd MYT Control Period.

Table 36: Basis for ARR allocation

Particulars Wheeling Retail Supply

Power Purchase Expenses 0% 100%

PGCIL Charges 0% 100%

HPPTCL Charges 0% 100%

Employee Expenses 70% 30%

R&M Expenses 90% 10%

A&G Expenses 60% 40%

Interest & Financing Charges (other than interest on working capital) 100% 0%

Depreciation 100%_ 0%

Return on Equity on Wheeling Business 100% 0%

Public Interaction Program 0% 100%

Non-Tariff Income (excluding wheeling charges received from other states) 0% 100%

Wheeling charges received from other states 100% 0%

Based on the above allocation rationale, the following table gives the break-up of the ARR into

wheeling and retail supply.

Table 37: Retail & Wheeling ARR for FY 2013-14 (Rs. Crs)

Particu lars2013-14

Wheeling Retail Supply

Power Purchase Expenses 0.00 2534.66

PGCIL Charges 0.00 259.87

HPPTCL Charges 0.00 11.92

ULDC and other charges 0.00 54.46

Employee Cost 6.65 2.85

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Page J 37

Distribution Business - HPSEBL(WI

2013-14Particulars

Wheeling Retail Supply

25.76 2.86R&M Cost

30.31 20.20A&G Cost

471.67 0.00Interest & Financing Charges

3.76 33.01Interest on Working Capital

99.94 0.00Depreciation

42.41 0.00Return on Equity

0.00 0.00Public Interaction Program

0.00 320.07Less: Non-Tariff Income

0.87Add: Bad Debt

Add: Consumer Contribution towards RPPO 5.00Compensation Fund (as per HPERC order dated 10th

November 2014)

1.61 0.43Net Prior Period Expenses

682.10 2606.07Aggregate Revenue Requirement

V. S ,aAdKOcaniYash sil CU,n Nctshi:nfa

N n Vike Ns a'3R,

Page ^ 38Ct f P^'̂ i wr (Gorrvnarci&t4PSE3.,Ltd., VWyut chewer:,*omi s - 1 i'1e14


9.

REVENUE FROM SALE OF POWER

9.1

Revenue from Sale of Power

9.1.1 Revenue from Sale of Power within HP

9.1.1.1

Revenue from sale of electricity approved in APR for FY 2013-14 and as per actual

for FY 2013-14 as per provisional true-up is given below:-

Table 38: Revenue from Sale of Power within HP for FY 2013-14 (Rs. Crore)

Category APR Actual Difference

C Domestic 713.30 703.87 -9.43

NDNCS 68.10 72.17 4.07

Commercial Supply 266.40 256.48 -9.92

Small and Medium Supply 115.50 126.86 11.36

Large Industrial Power Supply 2604.90 2434.83 -170.07

Water and Irrigation Pumping 272.00 335.42 63.42

Street Lighting 7.30 5.64 -1.66

Bulk Supply 100.90 104.02 3.12

Temporary Supply 19.50 16.29 -3.21

Total 4167.20 4055.58 -111.62

9.1.2 Revenue from Sale of Power (Inter-state)

9.1.2.1

Revenue from sale of electricity outside HP for FY 2013-14 and as per actual true-up

is given below:-

Table 39: Revenue from Sale of Power for FY 2013-14 (outside HP) (Rs. Gores)

Particulars 2013-14

Total Inter State Sale of Power

Consumers Deviation of Malana. 0.00

Reactive Energy from various CPU's/SEBs 4.81

UI Charges /Sale of Power NREB Through PGCIL. 34.67

M/S Indian Energy Exchange & Power exc. Of India 135.16

Revenue from SOP-Others (by BVPCL) 0.00

Sub-Total(A) 174.63

9.1.2.2

Revenue from Banking of power for FY 2013-14 as reflected in the actual accounts is

as follows:-

Table 40: Revenue from sale of Banking Power for FY 2013-14 (Rs. Gores)

Particulars 2013-14

Revenue from Sale of Banking Power

UPSEB (Banking) 93.89

Through Banking-BRPL/BYPL 238.38

AT1 C'

5f

cV lani

Aduoca :eYash ct: , cum" Nctaa^,, Pubs,

r' Vikwe weer,'

Chief En)i

r (Comae: ciai;HrSEB., td., Vidlyut Wigwam

Page 139


Particulars 2013-14

Through Banking-Haryana Power Corp. Ltd. 127.47

Through Banking-P.S.E.B 199.25

Sub-Total 658.99

HPSEBL submits that banking sale of power and banking purchase is cashless transaction.

Although, it has been considered as material financial transaction within the profit and loss

account for FY 2013-14, however, HPSEBL has not considered Banking-purchase and Banking-

sale of power as a part of ARR, in the present up true up petition.

9.2

Revenue Gap

9.2.1.1

Following table provides Revenue Gap for FY 2013-14 based on the actual accounts

of the distribution business of HPSEBL:

Table 41: Revenue Surplus/ Gap for FY 2013-14 (Rs. Crs)

Parameters APR Actual

Aggregate Revenue Requirement 3574.71 4449.70

Revenue From Sale of Power within State 4167.81 4055.38

Revenue from sale of power outside State 149.61 174.63

Revenue Surplus/(Gap) 742.71 -219.48

:nw+ En (Conunarciai)^. ^ Ltd., VidyUt PhIlrOW1,

Mkris' - 17'tSS4

PageI 40


10.

True up of 2nd Control Period (FY 2012-14)

10.1.1.1 The HPERC MYT Regulations, 2011 along with amendment, stipulates the following

with respect to true up

(b) for controllable parameters -

(I) any surplus or deficit on account of the O&M expenses shall be to the account

of the licensee and shall not be trued up in ARR unless such is treated as

uncontrollable by the Commission in accordance with these regulations;

(11) any surplus or deficit on account of the distribution losses shall be shared

between the licensee and the consumers in accordance with these regulations;

(Ill) during mid-term performance review and during the end of the control period

true up

(i) O&M expenses treated as uncontrollable may be trued-up on the basis of

actual/audited information and prudence check by the Commission;

(ii) any surplus or deficit on account of variations in the costs and targets of

distribution losses treated as uncontrollable, may be trued-up on the basis of

actual/ audited information and prudence check by the Commission and shall be

shared between the licensee and the consumers in accordance with these

regulations;

(iii)the Commission shall review the actual capital investment vis-d-vis approved

capital investment;

(iv) depreciation and financing cost, which includes cost of debt including working

capital (interest), cost of equity (return) shall be trued up on the basis of actual/

audited information and prudence check by the Commission.

10.1.1.2 Accordingly, HPSEBL is now submitting actual accounts of controllable parameters

capital investment, capitalisation, depreciation, interest cost and return on equity

for each year of the second control period of MYT Period (FY12—FY14) as per MYT

Regulation 2011 as amended from time to time, which were not trued up in earlier

orders of by Hon'ble commission.

11.

Capital Investment and Capitalisation for 2nd control period

11.1.1.1 The Commission in its MYT Order had approved the capital expenditure of Rs

1485.50 Cr. for the second control period (FY12-14).

11.1.1.2 The actual capital expenditure for each year of the second control period of HPSEBL

is below:

Table 42: Actual Capital Expenditure of each year for the 2nd control period (Rs Cr.)

FY 14FY 13FY 12Particular

616.02555.43476.11Capital Expenditure

The Commission in its MYT Order for the second control period (FY12-14) had approved the

following capital investment schedule and CWIP for each year of the second control period.

Table 43: Capitalization Schedule for the 2nd Control Period (Rs Cr)

FY 14FY12InvestmentParticulars FY 13

554.91New Investment 138.73138.73110.98

ATTE

V.K. S la Hi

YaAdvocate Cum Notary Pub*,Yai

Ph Birdman Vikas NagmrH:P

^.

Chief Er (near (Commercial)HPSfi ,Ltd., VI ut Miswan.Mme! 1715


of FY12

New

Investment

of FY13

761.78 0.00 152.36 190.44

New

investment

of FY14

515.44 0.00 0.00 103.09

Capitalisation

of

Investment

prior

to FY12

344.98 114.99 114.99 114.99

Total

Capitalisation

225.98 406.08 547.25

Table 44: Approved CWIP for the 2nd Control Period (Rs Cr)

Particulars FY 11 FY 12 FY 13 FY 14

CWIP (opening) 442.78 344.98 673.92 1029.62

Capital Investment 309.55 554.91 761.78 515.44

Base Expenditure 223.27 499.00 592.00 394.50

Establishment

Expenses

58.60 31.39 92.00 65.84

IDC 27.68 24.52 77.77 55.11

Capitalisation 407.34 225.98 406.08 547.25

CWIP (closing) 344.98 673.92 1029.62 997.80

11.1.1.3 HPSEBL is submitting the year-wise detail of assets capitalization (Rs Cr.) which is

tabulated as under:-

Table 45: Actual Capitalization for 2nd control period (Rs Cr.)

Capitalization

Particulars FY12

1045.57

FY13

784.51

FY14

320.68

11.1.1.4 HPSEBL requests the Hon'ble Commission to approve the actual/capex and its

capitalisation, in line with the relevant provisions in the MYT regulation.

12.

Depreciation for 2"`' control period

12.1.1 The Commission in its MYT Order for the second control period (FY12-14) had approved

the following GFA and depreciation for each year of the second control period @2.50%

in line with the practice followed in the previous tariff orders.

Table 46: Approved Depreciation for 2nd control period (Rs Cr.)


Opening GFA 3247.01 3455.27 3681.25 4087.32

Addition 407.34 225.98 406.08 547.25

Reduction 199.08 0 0 0

Closing GFA 3455.27 3681.25 4087.32 4634.58

Depreciation Rate 2.50% 2.50% 2.50% 2.50%

Depreciation 86.27 89.21 97.11 109.02

V.K.

laniAdvocate corn Notary P ibe;Yash lane

Cts iR

r (Cornm4rciat;eNx1n VikAR Na ,,,

`fY iC^; Lirf., V+dyut ►I^.r'^+^n$ttirn.la,--esviss - 17 ' 1004

ATTE^

Page ^ 42

12.1.2 HPSEBL has calculated Depreciation by taking into consideration the opening balance of

assets in the beginning of the year and the projected capitalization. Assets funded

through grants have been excluded in the calculation of depreciation. The Depreciation


rates used as per the HPERC MYT Tariff regulations.

12.1.3 The actual depreciation for the financial year 2011-12 as per audited accounts is as

follows:-

Table 47: Actual depreciation for FY 2011-12 (Rs Cr.)

Asset Depreciation

Land & Land Rights 0.20 _

Buildings 8.44

Hydraulic Works 65.00

Other Civil Works 14.83

Plant & Machinery 58.18

Lines & Cable Net 49.61

Vehicles 10.16

Furniture & Fixtures 1.00

Office Equipments 1.13

Assets not Belonging to the Board 4.44

Total 213.00


follows:-

Table 48: Actual Depreciation for 2012-13

Asset Depreciation

Land & Land Rights 0.31

Buildings 5.24





Vehicles 1.32




Asset transfer Inward -0.07

Total 209.36


follows:-

Table 49: Actual depreciation (Generation) for FY 2013-14

Asset Depreciation

Land & Land Rights 0.02

Buildings 3.26





Vehicles 0.03



rte.

VVK. S

.;,. i

Advocate CUrn Nct6,ry Put),.Vasil

(it F,

7-

.0

t{fy^'.

-^ ., Vkhfut stn"; t it?.


Asset Depreciation


Asset transfer Inward3.26

Total133.67

12.1.6

Particulars

Below is the sumFYmary

2011

of

-12

actual depreciation

FY

for

2012-13

financial year FY 2011-

FY

12, FY

2013-14

2012-13 &

2012-13.

Table 50:

Final

Actual

True

Actual

depreciation for

MYT

FY 2011-12, FY

Actual

2012-13 & FY

MYT

2013-14

Actual

up Approved Approved

1 Generation 89.21 213.00 97.11 109.02209 .36 233 .61

Distribution 88.86 89.57 83.78

Total

Depreciation 178.07 213.00 186.68 209.36 192.8 233.61

12.1.7 Accordingly the summary of actual vs approved depreciation for FY 2011-12, FY 2012-13

& FY 2013-14 is as per table below

Table 51: Actual depreciation vs approved depreciation for FY 2011-12, FY 2012-13 & FY 2013-14

Year Approved Actual Difference

FY 2011-12 178.09 213.00 34.91

FY 2012-13 186.68 209.36 22.68

FY 2013-14 192.80 307.26 40.81

HPSEBL requests the Hon'ble commission to approve the above depreciation in line with MYT

regulation.

13.

Funding and Interest for 2"d control period

13.1.1 The Commission had approved the following funding requirement and funding for each

year of the second control period FY 2012-14

Table 52: Means of Finance approved by the Commission for 2nd Control Period (Rs Cr)

Particulars FY 12 FY 13 FY 14

Funding Requirement 225.98 406.08 547.25

Less: Consumer Contribution 6.67 17.35 30.05

Less: Grant 46.48 123.73 19.47

Balance Remaining 172.82 265.00 497.73

Funding through debt 172.82 265.00 497.73

Funding through Equity 0.00 0.00 0.00

13.1.2 The actual funding for each year of 2nd control period is below

Table 53: Actual Funding in 2nd control Period (Rs Cr.)

Particular

Funding

FY12

1492.88

FY 13

1110.63

FY14

1181.10

ATTEST

V.K. Sa Ian'

Advocate cum Ncta y Pup.,Yash F3h avwun Vikas Maw.Shim la H,p

Chid E. • near (Commercial)l$PSE:.,Ltd., Vklyut 10hawwnSaes' - 17'1004

(VI


13.1.3 The summary of the loans approved (source wise) by the Commission for the2nd Control

Period is shown in the table as follows:

Table 54: Loan Schedule approved for distribution business for the 2"d Control Period (Rs Cr)

Closing Balance FY 11 FY 12 FY 13 FY 14

{ LIC


Addition 0.00 0.00 0.00 0.00

Repayments 1.74 1.74 1.20 0.00


PFC

Opening balance 27.67 17.90 8.13 7.45

Addition 0.00 0.00 0.00

Repayments 9.77 9.77 0.68 0.68

Closing Balance 17.90 8.13 7.45 6.77

REC

Opening balance 134.12 114.56 82.96 51.36

Addition 0.00 0.00 0.00

Repayments 19.57 31.60 31.60 31.60

Closing Balance 114.56 82.96 51.36 19.76

RGGY


Addition 0.00 0.00 0.00 0.00

Repayments 0.07 0.07 0.07 0.07


Bank Loan


Addition 0.00 0.00 0.00 0.00

Repayments 0.00 4.00 0.00 0.00


Non NSLR Bond

Opening Balance 201.97 114.21 79.95 45.69

Addition 0.00 0.00 0.00 0.00

Repayments 87.76 34.26 34.26 45.69

Closing Balance 114.21 79.95 45.69 0.00

State Govt. Loan

Opening Balance 16.30 15.25 14.03 12.81

Addition 0.00 0.00 0.00 0.00

Repayments 1.05 1.22 1.22 1.67

Closing Balance 15.25 14.03 12.81 11.14

Market Bonds

Opening Balance 10.00 5.50 0.00 0.00

Addition 0.00 0.00 0.00 0.00

Repayments 4.50 5.50 0.00 0.00


New Loan for Capex

( FY 09-11)

Opening Balance 139.40 363.81 302.90 252.18

Addition 285.32 0.00 0.00 0.00

Repayments 60.91 60.91 50.72 39.02

ATTE T

V.K. S

Advocate cum Nctatry PdtAYYash

sh Ph..,,Shimla

ash

,,un Vikas Nays.HP _-

lhi+r' - f :' 1 MMS

Page 145


Closing Balance 363.81 302.90 252.18 213.15

New Loan for Capex

(FY 12-14)

Opening Balance 0.00 0.00 155.54 376.76

Addition 0.00 172.82 265.00 493.73

Repayments 0.00 17.28 43.78 93.56

Closing Balance 0.00 155.54 376.76 780.94

Total (dosing)

Opening Balance 538.75 638.70 645.16 736.43

Addition 28532 172.82 265.00 497.73

Repayments 185.38 166.36 163.54 212.28

Closing Balance 638.70 645.16 746.62 1032.06

13.1.4 The summary of the Interest Charges approved by the Commission for the 2nd Control

Period is shown in the table as follows:

Table 55: Interest Charges approved for the 2nd Control Period (Rs Cr)

Particulars FY 12 FY 13 FY 14

LIC 0.19 0.05 0.00

RFC 0.32 0.19 0.18

REC 9.69 6.59 3.49

Banks 0.18 0.00

Non SLR Bond 10.09 6.53 2.37

State Govt. Loans 1.70 1.56 1.39

Market Bonds 0.33 0.00

Other Short Term

Interest on New loans for

capex (FY09-11)

34.17 28.45 23.85

Interest on New loans for

capex (FY12-14)

9.33 31.94 69.46

Interest

on

Consumer

Deposit

6.59 7.58 8.71

Interest

on

Working

Capital

15.26 10.10 12.13

Total Interest Charges 87.85 92.98 121.59

Less: Interest Charges on

Loans

transferred

for

HPPTCL assets

0.66 0.51 0.39

Net Interest and Finance

Charges

87.19 92.47 121.19

13.1.5 The details computation of actual interest and financial charges for financial year FY

2011-12, FY 2012-13 & 2013-14 is as follows:-

Table 56: Actual Interest and Financial Charges for FY 2011-12, FY 2012-13 (Rs Cr.)

Particulars 2011-12 2012-13

Interest on State Government Loans. 1.62 1.54

Interest on Bonds 0.44 0.00

Sub-Total 2.06 1.54

AT EPage i 46

V.K. aJ21 ^, silAdvocate ci,m' Nctary P,,n.Yash F?h;,,,w,^7 Vl ,**_ iata .

Lhirs-

., x

+a tL..^s, i 's:;

VI) Distribution Business - HPSEBL

Interest on loans from LIC 15.98 13.72

Interest on loans from REC 54.65 83.81

and other loans etc. 0.00 0.00

Other Negotiated loan

Interest on stock other loan 50.05 80.62

Interest on PFC Loan 41.80 53.70

Interest on stock PNB loan 7.37 4.03

interest on stock canara Bank loan 9.39 4.69

Interest on stock Punjab & Sind Bank Loan 0.00 2.45

Interst on SIDBI 0.00 0.00

Interest on Private Bonds 17.26 13.64

Interest on UCO Bank Loan 7.20 0.00

Interest on loans from Bank of Maharashtra 1.23 0.00

Interest on loans from ADB against clean energy 0.00 28.29

Interest on loans from State Bank of India. 22.24 0.00

Interest on loans from RAPDRP Part-B PFC 10.00 0.00

Interst on loan from Vijay Bank 34.47 21.86

Interst on loan from Central Bank of India 6.21 11.28

Sub-Total 277.85 318.08

Penal interest 0.00 0.00

Interest to consumers (securities) 13.39 16.02

Sub-Total 13.39 16.02

Total interest on capital liabilities 293.30 335.64

Interest on borrowing For working capital. 110.31 121.63

Sub-Total 110.31 121.63

Other interest and Finance charges. 0.00 0.00

Discount to consumers For timely payment of Bills. 0.00 0.01

Rebate allowed for timely payment to Inter-state SOP

BulkSupply under bilateral agreement

0.60 1.84

Sub-Total 0.60 1.85

INTEREST TO SUPPLIERS/CONTRACTORS.

Interest on GPF 0.00 0.00

Interest on Contributory Pension Fund.0.24

1.48

Cost of raising finance. 0.01 0.12

Discount/ redumption premium on Bound 0.00 0.00

Other charges. 0.74 15.50

Interest on LC Charges 0.40 0.00

Sub-Total 1.39 17.10

Total 405.60 476.22

Less: Interest capitalised 144.49 46.75

Total 261.11 429.46

Page 147V.K. S 'klan iAdvocate cum' Notate Pub..Yash Bhawan Akio Na.pe„Shim.la H,P

Chief E

r (Con U rCial)

HP

.,Ltd., Vidyut irMtwata,Meas . 1"1x/4


Table 57: Actual Interest and Financial Charges (Generation) for FY 2013-14 (Rs Cr.)

ParticularsGeneration

RGGVYLIC 11.91REC 9.43PFC 32.41

Bonds 6.15

Bank Loans 28.41

Interest on State Govt. Loan 0

Non SLR Bonds 0Other Negotiated Loan 0Interest on Overdraft 0Interest on GPF & CPF 0Cost of Raising Finances 0Other Charges 0Interest on Consumer Security Deposits 0Charges payable to CTU / NLDC 0Rebate allowed for Timely Payment 0

Interest & Finance Charges - Total 88.31

Additional Debt Infusion due to Capitalization 0

Interest on Debt 0

Cummulative Interest 0Interest & Finance Charges 88.31Less: Interest Capitalisation 0.32Add: Prior Period Expenses 0Net Interest & Financing Costs 87.99

13.1.6 Comparison of approved versus actual Interest and Financing charges for each year of

control period is tabulated below

Table 58: Comparison of approved versus actual Interest and Financial Charges for FY 2011-12 (Rs Cr.)

Particulars Approved in true-up Actual Difference

Distribution Business 111.4

261.11

87.69

Generation Business 62.2

Total 173.42 261.11 87.69

actual Interest and Financial Charges for FY 2012-13Comparison of approved versusTable 59: (Rs Cr.)

Particulars Approved in true-up Actual Difference

Distribution Business 48.69429 46. 288 30.

Generation Business 92.47

Total 141.16 429.46 288.30

Table 60: Comparison of approved versus actual Interest and Financial Charges for FY 2013-14 (Rs Cr.)

Particulars Approved in MYT Actual Difference

BusinessDistribution 37.74 508.44 470.7

Generation Business 121.19 87.99 -33.20

Total 158.93 596.43 437.50

andnd Financial Chargessummary of difference of actual vs approved Interest13.1.7 Final for FY

2011-12, FY 2012-13 & FY 2013-14

Table 61: Differences approved versus actual Interest and Financial Charges for FY 2013-14 (Rs Cr.)

Particulars FY 2011-12 FY 2012-13 FY 2013-14 Total

Interest

&

Financial

Charges- Distribution & ,

Generation Business

87.69 288.30 437.50 813.50

AflE

V.K. Sakian iAdvocateYashAdvocate

cum Nctafy Pub*.

Shim la ,,i,^P n Vike^s Na ,.m

Chief tin (Cora ato.4iai)HPSE,Lt:f., Vaiyut 011 mat.rimeas' - :1004


13.1.8 HPSEBL requests to Hon'ble Commission to consider and approve the actual Interest &

Financial charges submitted above, in line with the provision of MYT regulation as

amended from time to time.

14.

Return on Equity for 2"d control period

14.1.1 As per HPERC (Terms and Conditions for Determination of Wheeling Tariff and Retail

Supply Tariff) Regulations, 2011 read along with Amendment 1, 2011 and Amendment

2, 2013, the Return on equity for the distribution licensee (sum of return on equity for

wheeling business and return on retail supply business) shall be computed on the paid

up equity capital and shall be 16% per annum (post tax)

14.1.2 Accordingly, HPSEBL has computed the Return on Equity considering a rate of return at

16% for the year 2011-12, 2012-13 and 2013-14. HPSEBL submits that for the

computation purpose the average equity is considered since equity infused during the

year shall be during the year not from the beginning of the year.

14.1.3 The Hon'ble Commission didn't finalize the equity infusion in the second control period

and had mentioned in the MYT Order of Second Control Period that it shall true-up the

funding and financing approved at the end of the Second Control Period.

Table 62: Approved ROE for 2nd Control Period (Rs Cr.)


Distribution Equity 189.00 189.00 189.00

Rate 16.00% 16.00% 16.00%

Approved Equity 30.24 30.24 30.24

14.1.4 HPSEBL is now submitting the actual return of equity for each financial year of the

second control period.

Table 63: Actual Return on Equity for FY 2011-12 (Rs Cr.)

Particulars Generation Distribution


Equity Infusion 0 0


ROE 30.02 32.47

Total ROE 62.49




Equity Infusion 10 40


ROE 30.80 35.67

Total ROE 66.47

Page 149V .K. Sa icon;Acivo ate c^^m Neta r P^, A.Yash Pt:^vw^

v, ik.^r€^ Reef,:5himfa

Chief E , r (Comnjal;}t^ :.,Ltd., Vidyut W+awrirn,shies' . 4?'tM^4





Equity Infusion 107.46 44.15


38.24 42.41ROE

Total ROE

80.76

Table 66: Comparison of approved versus actual Return on Equity for FY 2011-12, FY 2012-13

& FY 2013-14 (Rs Cr.)

FY 2011-12 FY 2012-13 FY 2013-14Particular

Distribution

Approved 30.24 30.24 30.24

Actual 32.47 35.67 42.41

Generation

Approved 37.12 37.12 37.12

Actual 30.02 30.80 38.24

Total Difference (Distribution + -4.87 -0.89 13.29

Generation)

14.1.5 The HPSEBL requests the Hon'ble Commission to approve the actual equity and ROE, as

brought out above, in line with the MYT regulation.

AYa.shdvocate

Sh m Rh N°wrirVka*tallN Pc,

p – Nair.

Ch1 ,:r^Nei

.^ ,..ttl.r ;

Camni,rciatj

1 :''1004''' btitwim,

Page 150


15.

Actual Gap for 2nd control period

HPSEBL requests the Hon'ble Commission to approve the gap of Rs. 789.33 Cores, as tabulated

in table below, for the second control period FY 2012-14 along with the carrying cost as per the

provisions of clause (2) of regulation 11 as amended by Himachal Pradesh Electricity Regulatory

Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply

Tariff) (Second Amendment) Regulations, 2013 and as per HPERC Terms and conditions for

determination of Hydro Generation tariff regulation, 204 1 as mended from time to time.

Particulars Amount (Rs Cr.)Revenue Gap of true-up for FY 14 219.48

Depreciation* 107.41Interest & Financing Charges* 342.79Return on Equity* -4.64Generation business Gap for control period (FY- i 4) 124.29

Total 789.33Note:

*Amount corresponds to Generation Business from FY12 to FY14 plus Distribution Business from

FY12 to FY13.

Table 67: Actual Gap for Second Control Pen Y 2012-14 (Rs Cr.)

' ''''W'\.=

ATT

V.K.Advo

ian!Yash fah • cum" NcShirt<< H iii Vika a ,

Page 151

Chief

.r ns r (Comm rcial)tti^• B.,Ltd„ V dyut Ute,

' -11'1106


16.

PRAYER

HPSEBL respectfully prays to the Hon'ble Commission:

a) To examine the proposal submitted by HPSEBL for a favourable dispensation as detailed

in the above petition

b) To true up the uncontrollable parameters as per the true up details for FY 2013-14;

c) To true up the controllable expenses incurred in second control period of MYT (FY 12-

14), as per the provisions of the MYT regulation;

d) To favourably consider the proposals for meeting the gap in this true-up petition;

e) To Condone any inadvertent omission, errors, shortcomings and permit HPSEBL to

add/change/modify/a lter this filing and make further submissions as may be required at

a future date;

f) To treat the filing as complete in view of substantial compliance as also the specific

requests for waivers with justification placed on record;

g) To pass such other and further orders as are deemed fit and proper in the facts and

circumstances of the case.

V. K.Advor.atHti'ash t;t, CL,:n f cta•ry Pt*.

Shirn.la H

%iKei6 Nape,

Chief

row (Commercial'HPS B.,Ltd., V dyutl NN' • 12'1M1

Page 152

BEFORE THE HON'BLE HIMACHAL PRADESH ELECTRICITY REGULATORYCOMMISSION

Filing No

Case No

IN THE MA'TER OF:

Final True-Up for FY 201344 and end of control periodtrue-up for 2nd Control Period (FY 2011-12 to FY 2013-14)under Section 62, 64 and 86 of the Electricity Act, 2003

AND

Himachal Pradesh State Electricity Board Limited

(hereinafter referred to as "HPSEBL " or "The HPSEBL" or

"HPSEB Limited") Vidyut Bhawan Shimla - 171004Applicant

AFFIDAVIT

I, Er. Mahesh Sirkek, son of Sh. J.N. Sirkek, aged about 56 years, resident of

C-5, Friends Apartment, Annadale, Shimla-171003, occupation Chief Engineer

(Commercial), Vidyut Bhawan, HPSEB Limited, Shimla-171004, do hereby solemnly affirm

and declare that I have gone through the contents of the accompanying petition and that

the contents of the same are true and correct to the best of my personal knowledge as

I EB7i~

derived from the official record.

mist e. .1

(Comme rcial)MPSEB.,Ltd., Vidyut Mww.n.

at+oirdeclaredbefore me on oa

^y o

of; ....2

the d1St pct

by Sh.

,

/ %

....

/Identiwa dU y iaffida At are

^ f•,:

v:,now the depoWont,

thereof tX 'r pg

and correct. Affidavit

r

hereby ti+i's: -:d

V4^ / 16

IN THE MATTER OF:

I further solemnly affirm and verify that the contents of this affidavit are true

v.;. rtiAdvocate cum'N

p,r'ect to the best of my personal knowledge, no part of it is false and nothing

Yash Btay n Vikee'hernia, t..r

material has been concealed therein.

Verified and signed at Shimla on this ?i.* day of January, 2016.

1.

2.

\. Chief f

"Engineer (SERCIT)

V/o Chief Engineer (Commercial)

Boi

wan.Hp B Ltd. VidYut

004 (H.P.)

2.1 pre4,vke - hpseb 2.1 pre4,vke 8 3.1 power purchase cost 10 3.2 transmission and distribution...

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