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TECHNOPARK ARR-ERC: 2017-18 (THIRD YEAR OF

FIRST CONTROL PERIOD)

ARR-ERC: MYT 2017-18

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Electronics Technology Parks – Kerala (Technopark)

Electricity Distribution Business

AGGREGATE REVENUE REQUIREMENT

&

EXPECTED REVENUE FROM CHARGES

FOR THE

FINANCIAL YEAR

2017-18


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BEFORE THE HON’BLE KERALA STATE ELECTRICITY REGULATORY COMMISSION

C.V.Raman Pillai Road, Vellayambalam, Thiruvananthapuram-695010

Date : 22-02-2017 Filing No. : 01/2017

Case No.

IN THE MATTER OF :

Filing of ARR & ERC for the FY 2017-18 ie. the third control

period of the Multiyear i.e 2015-16 to 2017-18.

And

IN THE MATTER OF :

Electronics Technology Parks – Kerala (Technopark) Park Centre, Technopark Campus, Thiruvananthapuram -695581

Applicant

Hrishikesh R Nair Chief Executive Officer

Park Centre, Technopark Campus, Thiruvananthapuram - 695581


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BEFORE THE HON’BLE KERALA STATE ELECTRICITY REGULATORY COMMISSION

C.V.Raman Pillai Road, Vellayambalam,Thiruvananthapuram-695010

Date : 22-02-2017 IN THE MATTER OF : Application for approval of projected Aggregate Revenue

Requirement and Expected Revenue from Charges (ARR &

ERC) for the FY 2017-18 the third control period of the

Multiyear i.e 2015-16 to 2017-18.

AND

IN THE MATTER OF: Electronics Technology Parks – Kerala (Technopark)

Park Centre, Technopark Campus,

Thiruvananthapuram -695581

The petitioner named above respectfully submits as under:

1. This application for approval of the Aggregate Revenue Requirement (ARR) and

the Expected Revenue from Charges (ERC) for the financial year 2017-18 is filed

before the Hon’ble Kerala State Electricity Regulatory Commission, (hereinafter

referred as Commission), in accordance with the provisions of the Electricity Act,

2003.

2. This application has been prepared in accordance with the Kerala State Electricity

Regulatory Commission (Conduct of Business) regulations 2003, Kerala State

Electricity Regulatory Commission (Conduct of Business) Amendment

Regulations, 2010 and Fees Amendment Regulations 2014 and terms and

conditions of the Kerala State Electricity Regulatory Commission (Tariff)

Regulations w.e.f 14-11-2014 and the KSERC tariff order dated 14-08-2014. The

relevant provisions of Electricity Act 2003, were also taken into consideration

while preparing this petition.

Applicant

Hrishikesh R Nair Chief Executive Officer

Park Centre, Technopark Campus, Date: 22-02-2017 Thiruvananthapuram - 695581


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Table of Contents

Chapter No: Title Page No:

01 Introduction 6

02 Projects Proposed during the Third Year of the Control Period 9

2.1 Projects proposed in Technopark Phase-I campus 10

2.2 Projects proposed in Technopark Phase-III campus 14

2.3 Projects proposed in Technocity campus (Phase-IV) 18

2.4 Projects proposed in Technopark Kollam campus (Phase-V) 18

03 Demand Side Management Activities Proposed in FY 2017-18 20

04 AT&C Losses 21

05 Consumer Mix Estimated for FY 2017-18 23

06 Consumer Category wise Energy Requirement for 2017-18 25

07 Purchase of Power 28

08 O&M Expenses 31

09 Depreciation 33

10 Interest & Finance Charges 34

11 Return on Equity 35

12 Summary of ARR 36

13 Expected Revenue from charges 37

14 Per Unit Realization 40

15 Non –Tariff Income 41

16 Summary of Gross Expected Revenue 41

17 ARR-ERC Comparison 42

18 Revenue Gap &Treatment of Revenue Gap 43

19 Prayer 44

Annexure (Data Forms )


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1. Introduction : Structure of Technopark :

In July 1990, the Government of Kerala conceptualized Technopark as a

facility to foster the development of high-technology industries in the state.

Technopark is an acronym for Electronics Technology Parks – Kerala an

autonomous society under the Department of Information Technology,

Government of Kerala. Technopark's aim is to create infrastructure and

provide support required for the development of high-technology companies.

Its stated mission is to "Provide, Viably, Superior Environment and Services

with Assured Quality of Service to make Technology Businesses Intrinsically

Competitive and Successful, and Promote Regional Development through

Synergistic Linkages between Industry, Government and Academia, based on

Continuous Improvement and Innovation".

Electronics Technology Parks – Kerala (TECHNOPARK) is registered under the

Travancore-Cochin Literary and Scientific Charitable Societies Act 1990

providing infrastructure and support services to IT/ITES companies in the

state. The Government of Kerala as per GO (P) No. 19/99/PD dated

12.7.1999 granted Licensee status to M/s. Electronics Technology Parks-

Kerala (TECHNOPARK), Technopark campus, Thiruvananthapuram 695 581

(Electrical License 1/1999) for supplying electrical energy to various

establishments within the TECHNOPARK campus. Technopark is an

autonomous society of Govt. of Kerala providing employment to over 30,000

professionals. Electricity is the main requirement of the IT industry.

Technopark is the IT hub of the State of Kerala, and based in Trivandrum

which can rightfully claim to be the knowledge capital of the region.

Technopark provides world class, robust and failsafe physical, power and

datacom infrastructure, offering a no compromise yet low cost enabling

environment for IT industry that is leveraged by its occupant companies for a

competitive advantage. Technopark aims to provide all the infrastructure and

support facilities needed for IT/ITES and electronics companies to function. In

addition to built-up office space, it also provides all utilities as well as the data

connectivity. This is done either directly or through private partners. In

addition, Technopark provides business incubation facilities for start-up firms

as well as some social infrastructure for the personnel working in the park.

http://en.wikipedia.org/wiki/Business_incubator

http://en.wikipedia.org/wiki/Personnel


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Technopark is the first CMMI Level 4 assessed Technology Park. Spread over

156 acres (Technopark Phase-I campus), and about 4.5 million sq.ft. of built-

up space, Technopark hosts over 225 IT and ITES companies, including 6

CMMI Level 5, 2 CMMI Level 3 and several ISO 9000 certified companies,

employing over 30,000 IT Professionals. The select list of companies working

at Technopark include TCS, Infosys Technologies ,Oracle India Pvt Ltd, Ernst

& Young, Allianz Cornhill ,UST Global, IBS, Suntec, NeSt, RR

Donnelley&Co.,ICON, Collabora, RMESI, Alamy Images, Saudi Engineering

Group, Toonz Animation, HCL, Speridian Technologies, Satmetrix,

Revenuemed, Accentia, Tata Elxsi etc.

Technopark has the best of nature's environment complemented by the most

modern man-made facilities. Quality environment, international standard

infrastructure, a comprehensive umbrella of support services, a significant

cost advantage, and easy access to excellent human resources and

remarkable ease of starting up make Technopark, Trivandrum India's most

promising IT destination.

Technopark is currently on an expansion mode by adding another 93 Acres as

part of Phase III expansion, 40 acres as Technopark Kollam and 450 acres as

Technocity—an integrated IT township near Pallippuram. The policy of

economic liberalization initiated by the government of India in 1991 and the

rapid growth of the global software industry during the 1990s substantially

contributed to the growth of Technopark.

The units in Technopark include domestic firms, joint ventures and

subsidiaries of foreign companies engaged in a wide variety of activities,

which include embedded software development, smart card technology,

enterprise resource planning (ERP), process control software design,

engineering and computer-aided design software development, IT Enabled

Services (ITES), process re-engineering, animation and e-business.

Technopark is owned and administered by the Government of Kerala and is

headed by a Chief Executive Officer. In addition to this, it has a Governing

Council and a Project Implementation Board, both of which include top

officials of the government. Administrative offices, including that of the CEO,

are housed in the Park Centre building.

http://en.wikipedia.org/wiki/Technocity,_Thiruvananthapuram

http://en.wikipedia.org/wiki/Economic_reforms_in_India

http://en.wikipedia.org/wiki/Economic_reforms_in_India

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Embedded_software

http://en.wikipedia.org/wiki/Smart_card

http://en.wikipedia.org/wiki/Enterprise_resource_planning

http://en.wikipedia.org/wiki/Engineering

http://en.wikipedia.org/wiki/Computer-aided_design

http://en.wikipedia.org/wiki/IT_Enabled_Services

http://en.wikipedia.org/wiki/IT_Enabled_Services

http://en.wikipedia.org/wiki/Animation

http://en.wikipedia.org/wiki/Electronic_business

http://en.wikipedia.org/wiki/Government_of_Kerala

http://en.wikipedia.org/wiki/Chief_executive_officer


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Technopark Phase-II campus is leased out to M/s UST Global and M/s Infosys

Technologies Ltd. M/s Infosys has already started their operation from this

campus.

Technopark Phase-III campus is adjacent to Technopark Phase-I campus.

Technopark has already constructed a 1 million sqft IT building in this

campus, operation of IT/ITES clients had already been commenced from this

building.

As a hub and spoke model of development, Technopark is developing a

separate IT campus in the neighboring district Kollam. This campus has an

area of about 44 Acres and is known as Technopark Kollam. Technopark has

already constructed a 1lakh sqft IT building in this campus and operations has

been started.

Technopark is constructing the Technocity project which is around 5kms north

of the present campus. This campus is envisaged as an integrated township

consisting of IT/ITES industries and will be the largest development project

undertaken by Technopark. The total area of the campus will be around 450

Acres.

This is the thirteenth ARR-ERC petition filed by Technopark and is the third

petition under the multi-year tariff scheme.


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2. Projects Proposed during the Third Year of the Control

Period. (Capital Investment Plan for the Third Year of the

Control Period)

Technopark was granted electricity distribution licensee status by the Govt. of

Kerala during 1999 for the main campus of Technopark ie. Technopark Phase-

I campus. The licensee status was extended to the Technopark Phase-II & III

campuses which is adjacent to the main campus of Technopark by Hon’ble

Commission during the year 2008. Extension of the licence area to Technocity

campus (Technopark Phase-IV) at Pallipuram was granted by Hon’ble Kerala

State Electricity Regulatory Commission during the year 2009. Technopark

Kollam campus situated at Mulavana village in Kollam district was also

granted distribution licensee status during the year 2010 by Hon’ble

Commission.

In all the campuses of Technopark as mentioned above, the power

infrastructure required for the distribution of electricity to the consumers is

implemented by Technopark and the operation and maintenance of the

installations are also carried out by Technopark. Technopark Phase-I campus

is fully developed and contains over 700 consumers. In order to facilitate the

growth of IT/ITES industry in the neighboring campuses viz. Phase-II/III/IV

and V, Technopark need to make investment and implement projects in a

proactive manner to benefit the prospective industries.

Hon’ble Commission please consider the following projects as the capital

investment plan of the licensee during the second control period. Some of the

projects mentioned were also featured in the previous ARR-ERC’s filed by the

licensee but has not been started yet.


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2.1 Projects proposed in Technopark Phase-I campus.

Technopark Phase-I campus is spread over 156 Acres. There is a well-

established power distribution system for supply of power to various

consumers in the campus. Presently, Technopark has a power purchase

agreement with KSEB for a contract demand of 15 MVA and the recorded

power demand is around 15 MVA. Technopark receives electricity through

four 11 kV feeders from 110 kV substation for distribution within the

Technopark campus. The substation is operated and maintained by Kerala

State Electricity Board (KSEB).

2.1.1 Augmentation of existing power transmission system of KSEBL for

catering the additional power requirements of Technopark

Campuses.

Presently, Technopark has a power purchase agreement with KSEB for a contract

demand of 15 MVA for phase-I and 5 MVA for phase-II & III campuses

respectively. At present the recorded power demand of phase-I campus is

around 15 MVA and for phase-II & III campuses is around 1.5 MVA. Technopark

phase-I campus avails power from KSEBL through 4 No’s 11kV feeders and

metering point is at EHT side. Technopark phase-III substation avails power at

110 kV voltage level from the Kazhakoottam – TERLS overhead line passing

through the phase-III campus.

Technopark phase-I campus is undergoing a final expansion stage.

Co-developers like TCS, TATA ELSXI, Leela Infopark, IBS, Amstor, M-squared

building etc. are expanding their campuses. All these expansion works inside

Technopark phase-I campus requires additional power during it’s operational

phase. The existing contract demand with KSEBL for Phase-I campus is not

sufficient to cater the additional power requirement. Hence we have approached

KSEBL for enhancing the contract demand by 3 MVA, in order to meet the

immediate requirement. As a result of various meetings and persistent follow up

with KSEBL, board has considered our request and accorded in principle approval

for 3 MVA power allocation to phase-I campus subjected to the condition that

the existing transmission system to the 110 kV substation Kazhakoottam need to

be strengthened.


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Technopark phase-II & III campuses are also in a rapid expansion mode.

Considering the current expansion of projects in Technopark Phase-II & III

campuses, we had requested KSEBL to enhance the existing power demand of

110 kV substations at Technopark phase-III campuses from 5 MVA to 8 MVA for

meeting the power requirement in future.

Considering our request KSEBL has informed that in order to allocate additional

power demand for Technopark, strengthening of incoming feeder from 220 kV

substation Pothecode to 110 kV substation Kazhakoottam is required because the

existing overhead line didn’t have the sufficient capacity to cater the additional

power demand of Technopark so as to satisfy the redundancy criterion as

informed by KSEBL. Therefore KSEBL proposed laying of new 110 kV UG cable

from Pothecode substation to Kazhakoottam substation as a dedicated feeder for

meeting the additional power requirement of Technopark campuses. For

Technopark phase-II & III campuses, KSEB proposed laying of 110 kV UG cable

from Kazhakoottam substation to Technopark phase-III substation since the

existing Kazhakoottam – TERLS overhead in which the Technopark phase-III

substation is connected presently will not have sufficient capacity to cater the

additional power demand of phase-III substation, for the new projects in phase-

II&III campuses.

The upcoming development in Technopark Phase-I, II & III campuses require

additional power. The present average power demand of Technopark campuses

are as follows

Sl. No: Campus Existing contract

demand with

KSEBL

Average demand

observed in this

financial year

01 Technopark Phase-I

campus

15000 kVA 15224 kVA

02 Technopark Phase-II&III

campuses

5000 kVA 3206 kVA

The maximum demand of Technopark Phase-I campus has exceeded the

contract demand executed with KSEB. Due to the expansion activities happening

in these campuses, the power demand is expected to rise. Also as informed by


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KSEBL, the power connection for Technopark Phase-III 110kV substation is

provided on a temporary basis. KSEBL has directed to execute the work in order

to regularize the connection and for enhancement of power demand.

We have requested KSEB to prepare and submit a detailed estimate for the

augmentation of existing power transmission system of KSEB for catering the

additional power requirement of Technopark Campuses. Accordingly KSEB has

furnished the estimate and agreed to carry out the works under work deposit

scheme. The total amount estimated by KSEBL comes to Rs. 58.17 crores. The

main project scope is as follows.

Laying of 6.5 km, 110 kV UG cable in 4 runs from 220 kV substation

Pothecode to 110 kV substation Kazhakoottam including its take off

arrangement at Pothecode substation.

Construction of four feeder bays at 110 kV substationKazhakoottam,

construction of single bus with sectionalizer for feeding four feeder bays

with future transformer bays in the newly acquired land of 1.77 acres.

Laying 3.5 km of 110 kV single circuit UG cable from 110 kV substation

Kazhakoottam to 110 kV substation Technopark phase-III including its

take off arrangements at Kazhakoottam substation.

Interlinking of newly constructed bay with existing transfer bus at 110 kV

substation Kazhakoottam and capacity enhancement of 2 x 12.5 MVA

transformer to 2 x 20 MVA.

Technopark has requested KSEBL vide letter dt: 08th December 2015 to revise

the estimate considering the following.

1. Service tax component to be imposed for labor portion of the work alone.

2. Reducing the size of 110kV UG cable from 630sqmm to 500sqmm as the

630sqmm would be oversized considering our power demand.

3. Deleting additional run (fourth run) of 110kV UG cable from the estimate.


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4. Cost of land need not be included in the estimate.

KSEBL had revised and reworked the estimate and the estimate amount came to

Rs. 60.90 Crores.

Present status of the work/ project:

Technopark had remitted the entire amount to KSEBL for carrying out this work

under the work deposit scheme. The entire amount for this project was met

through Govt. Grant.

2.1.2 Replacement of EHT metering equipment at 110kV Substation

Kazhakuttom for facilitating open access.

Technopark plans to replace the existing metering system at 110kV substation

Kazhakuttom from which the power supply for Technopark Phase-I campus is

obtained. The ABT (availability based tariff) metering system is a pre requisite

for procurement of power through power exchanges and also for sourcing

renewable energy for meeting the renewable purchase obligation. The estimated

cost of the work would be around Rs. 20.00 lakhs. The work is proposed to be

carried out through KSEBL under the work deposit scheme. Hon’ble Commission

may please accord approval for carrying out this work.

2.1.3 Purchase of Insulation resistance tester (Megger).

An Insulation Resistance Tester (Megger) is proposed to be purchased for testing

the IR values of various electrical equipment. The cost of the instrument

proposed to be purchased would be Rs. 3 lakhs. The testing equipment would be

highly useful for identifying faults in HV cables and other equipment. Approval

may please be accorded for the purchase.

2.1.4 Purchase of electrical live cable locator.

An underground electrical live cable locator is proposed to be purchased for

maintenance works. The cable locator will be able to identify the presence of

buried HV cables upto a depth of 5 feet. The cable locator will be of great utility

to the maintenance department of Technopark. Damages caused to the live

cables during excavation works could be avoided by using the cable detector.

Hon’ble Commission may please accord approval for the purchase.


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2.2 Projects proposed in Technopark Phase-III campus

Technopark Phase-III Expansion is one of the ambitious projects of

Technopark. 93Acres of land adjacent to the existing Technopark Phase-I

campus is being developed. Special Economic Zone status has already been

obtained for 26 Acres of land. Technopark has already constructed a 1 million

sq.ft IT building in 9 Acres SEZ land. The total capital outlay of the project is

around Rs. 260 crores and the funding for the project is through a consortium

of three banks. The Total power requirement of IT building constructed by

Technopark will be around 6MVA.

SEZ/ Non SEZ plots of varying acreage is allotted/ being allotted to IT/ITES

co-developers. Technopark has implemented 11kV Ring Main distribution

network in the campus which will supply power to various IT/ITES companies

including the IT building constructed by Technopark. The power for all

establishments inside the campus will be supplied from the 110kV substation

Technopark Phase-III.

2.2.1 Civil works for augmentation of 110kV substation in Technopark Phase-III.

The existing 110kV substation Technopark phase-3 building needs to be

expanded in order to install the additional 11kV HT panels for expansion of the

power distribution system to the south and south east side of the campus. This

work is a prerequisite for the capital work as mentioned below in 2.2.3. The total

cost of this work is Rs. 19.69 lakhs. We request Hon’ble Commission to approve

this work.

2.2.2 11kV Power Distribution System at the South and South East side of

Technopark Phase-III campus.

Technopark Phase-III is having a total land area of around 95 Acres. The total

land area is subdivided into various SEZ and Non SEZ land parcels. A 11kV power

distribution system has already been established in the North Eastern side of the

campus which is operational at present. The Ganga/ Yamuna IT building is

connected with this system. The power distribution system for the land having

area around 48 acres in the south and south east side of the Technopark phase-

3 campus was not implemented at the initial stage as the demarcation of plots

was not done. Now, this stretch of land is divided to eight SEZ and five Non SEZ


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plots and will be allocated to the various stake holders. In order to provide a

reliable and uninterrupted power source to these land parcels a 11kV power

distribution system is required.

Ring main distribution system is proposed having N-1 reliability level in an open

ring configuration. Ring Main Units (RMU’s) will be installed near the plots from

which the consumers can draw power to their premises. Single core aluminum

conductor cables having an area of cross section of 500 sqmm will be used for

conveying power from the 110KV substation Phase-III to individual ring main

units.

Justification for the project and estimated cost:

The land development works for the south east portion of Technopark Phase-III

campus will be commenced soon. The allotment of land parcels to stakeholders

is also progressing. Power distribution system need to be implemented for

commencing the activities of the IT/ITES stake holders and in the marketing

point of view for leasing out of the land parcels. The estimated cost of

constructing two ring feeder circuits which will feed to seven extensible type

RMU’s comes to Rs. 2.65 crores. This project is expected to be tendered during

the financial year 2017-18. We request Hon’ble Commission to accord approval

for this project.


The e-tendering for the above project is proposed to be carried out during the financial year 2017-18.

2.2.3 SITC of HT panels at 110kV Substation Technopark Phase-III campus.

The supply installation testing and commissioning of 11kV panels is an integral

part of the 11kV Power Distribution System at the South and South East side of

Technopark Phase-III campus project. The addition of 11kV panels to the

existing 11kV panels need to be carried out initially for connecting the 11kV

power distribution system. Spare 11kV feeders in the panel are exhausted and

the existing consumers viz. M/s Infosys Technologies and M/s UST Global are


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expanding. The IT/ITES stake holders will require additional 11kV feeders for

meeting their power requirement in future.


1. For providing power supply source for 11kV ring main power distribution

system which is proposed to be set up at the South and South East side of

Technopark Phase-III campus.

2. For providing spare 11kV outlets for supplying power to IT/ITES stake

holders in Technopark phase-II campus.

The estimated cost of this project is Rs. 41.30 lakhs.


This project has been tendered through the e-tendering portal of the Govt. of

Kerala. The e-tender has been opened and is under evaluation stage. This work

is expected to be awarded to the technically qualified lowest bidder during the

financial year 2017-18.

2.2.4 Grid Connected Solar Photo Voltaic Plant at Technopark Phase-III campus.

A Grid Connected Solar Photo Voltaic Plant is proposed to be constructed at

Technopark Phase-III campus. The project is conceived as an initiative to meet

the renewable purchase obligation and as a green initiative of Technopark. The

capacity of the plant proposed is 200kWp and the plant is proposed to be set up

jointly through Anert. The total capacity of 200kW has been reached by adding

two separate PV Power Plants of 100kW each at the roof-tops of the Ganga/

Yamuna IT buildings in Technopark Phase-III campus. M/s ANERT has already

completed the pre-feasibility study for the project and submitted us the project

details as follows.

1. Type : On-Grid Solar Photovoltaic Power

Plant

2. Total PV module capacity : 200kWp (100kWp+100kWp)


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3. Estimated annual energy generation : 325.6 MWh/year

4. Specific production expected : 1632kWh/kWp/Year

5. Available shade free roof top area : 2000 sqm

6. Type of solar PV module : Crystalline Silicon (C-Si)

7. Inverter/ PCU : On-Grid


1. The energy generated from the solar photovoltaic power plant will be

utilized for meeting the renewable purchase obligation of Technopark.

2. The project will provide impetus to the green initiatives of Technopark.

3. The dependence on the KSEB power will be reduced.

4. The project will be helpful to earn LEED points for green building rating

system.

The estimated cost of the project including the consultancy charges for M/s

ANERT based on the MNRE norms comes to Rs. 1.7 Crores. We request Hon’ble

Commission to accord approval for implementation of this project.


This project has been tendered through the e-tendering portal of the Govt. of

Kerala. The e-tender has been opened and is under evaluation stage. This work

is expected to be awarded to the technically qualified lowest bidder during the

financial year 2017-18.

2.2.5 Replacement of EHT metering equipment at 110kV Substation Technopark

phase-III for facilitating open access.

Technopark plans to replace the existing metering system at 110kV substation

Technopark Phase-III from which the power supply for Technopark Phase-III

campus is obtained. The ABT (availability based tariff) metering system is a pre

requisite for procurement of power through power exchanges and also for

sourcing renewable energy for meeting the renewable purchase obligation. The

estimated cost of the work would be around Rs. 20.00 lakhs. The work is


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proposed to be carried out through KSEBL under the work deposit scheme.

Hon’ble Commission may please accord approval for carrying out this work.

2.3 Projects proposed in Technopark Kollam (Technopark Phase-V) campus

Kerala State Electricity Regulatory Commission has extended the electricity

distribution license for Technopark, Kollam.Technopark as part of the hub and

spoke model of development is expanding its activities to Kundra, Kollam,

which is 63 km away from the TechnoparkTrivandrum Campus. This is to tap

the Kerala's unique advantage of uniform talent distribution, Infrastructure

and supporting IT platforms, e.g. telecom, datacom and digital exchanges,

excellent infrastructure availability and back-up support. Technopark Kollam is

located in 44.46 acres of prime land beside scenic Kanjirode Lake. This park is

being developed as a Special Economic Zone.

A receiving substation of 12.5 MVA capacity is set up in the campus. Power

will be drawn from the Kundara substation of KSEB at 110 KV and will be

stepped down to 11 KV. Technopark also ensures 100% back up power

arrangement.

Power for IT/ITES companies inside the campus will be supplied from the

110kV substation. The power will be conveyed to the 110kV substation

through 110kV EHV UG Cables. No projects are proposed in the third year of

the control period at Technopark Kollam campus.

2.4 Projects proposed in Technocity (Technopark Phase-IV) campus

The Technocity project which is purported to be the State's biggest IT

infrastructure project was officially launched on 05thJune 2010. Technocity is

proposed to be developed as an integrated township on 451 acres, and will

encompass IT, ITeS infrastructure as well as residential, commercial facilities

in addition to public service and educational institutions.

The creation of the integrated facilities would entail a capital outlay of Rs

5,000-8,000 crore spread over 7-10 years. This development has been

planned in the public-private partnership (PPP) model in association with

technically and financially competent private developers. There would be

multiple partnerships in association with developers of varying financial


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capabilities for various parcels of land within the 451-acre campus. The entire

project will be implemented through multiple special purpose vehicles in

conjunction with leading developers.

2.4.1 Construction of 110kV Air Insulated Substation for Technocity

The initial power demand in Technocity campus is proposed to be met by setting

up an EHV main receiving substation. Instead of the conventional 110/33 kV or

110/11 kV substation 110/33/11 kV Substation is proposed due to the following

reasons.

The land parcels proposed by stakeholders of Technocity varies from

large to small land parcels which calls for varied power demand which

ranges from 11kV to 33kV.

As per the Kerala Electricity Supply Code, up to 3 MVA, power shall be

given at 11kV voltage level and beyond 3MVA up to 12MVA power shall

be given at 33kV voltage level. Therefore, the distribution of power

inside Technocity is to be done at 11kV and 33kV voltage levels.

The Substation will be equipped with 1 Nos. of 110/33kV, ONAN power

transformer of capacity 20MVA and 1 No. 110/11kV; ONAN power transformer

of capacity 20MVA. The total estimated cost for the construction of 110kV Air

Insulated Substation for Technocity is Rs. 16.11 Crores.

Justification for the project:

1. This substation will be the main receiving substation for the Technocity

campus.

2. The construction of substation and laying of EHV UG cables from KSEB

substation at Pothencode need to be completed for providing power supply

to IT/ITES clients in the campus.

3. The substation needs to be established in order to commence the

construction activities of various stakeholders in the campus.


Page | 20

3. Demand Side Management Activities Proposed during FY 2017-18

Demand side management provides a range of technical, organizational and

behavioral solutions to cut or decrease electricity consumption and demand

side management is necessitated due to the steep rise in power consumption

during peak hours, to improve the quality and reliability of power supply and

to mitigate the impact of rising tariffs. Technopark aims to improve final

electricity-using systems, reduce consumption, while preserving the same

level of service and comfort.

3.1 Replacement of existing CFL street lights with LED street lights and

Installation of new LED street lights in Technopark Phase-I campus.

The internal roads in the Technopark Phase-I campus spans over 4.5 km.

Most of the existing street lights in the campus are CFL/ Metal halide/ Mercury

vapor type. The street lighting load will be added to the system during the

peak usage hours and continues through the off peak hours till dawn. By

changing the conventional luminaires having high power consumption with

low power consuming LED luminaires with same or better luminous efficacy,

the street lighting power demand during the peak hours could be reduced and

energy consumption could be achieved. Technopark has taken steps to

convert the existing conventional luminaires with low power consuming LED

luminaires for better demand side management.

3.2 Conducting awareness programmes for minimizing the energy wastage.

Awareness programme are planned to be conducted in the coming financial

year for educating the consumers in order to minimize energy wastage in the

customer’s premises. Leaflets will be distributed explaining various measures

like usage of star rated equipment, proper energy usage practices etc.

Through these activities we aim to alert the consumers about the energy

wastage occurring in their office premises and providing solutions to avoid

energy wastage.


Page | 21

4. AT&C LOSSES

The aggregate losses of the system are subdivided into technical and

commercial losses. The technical losses consists of the losses in the

transmission and distribution network, losses in transformer and other

electrical equipment whereas commercial losses includes losses due to

incorrect metering, billing errors, tampering of meters, sluggish meters etc.

All the electromagnetic type energy meters fitted in EB feeders in Technopark

phase-I campus are replaced with more accurate electronic energy meters/

Trivector meters for accurate measurement of energy consumption.

Technopark has 5 No’s power transformers in 110kV substations and over 60

distribution transformers in service inside the campus which are installed by

Technopark/ other co-developers. Considerable amount of energy losses

occurs in these transformers. Also losses occur in UG cables and other LT

cables, switchgear equipment etc. however it is low compared with the

transformation losses. True losses in percentage for different years are given

below.

Hon’ble Commission may please note that the T&D losses has been estimated

realistically based on the actual losses observed in the campuses of

Technopark. A reduced T&D loss target may be practically unachievable due

to various system constraints.

A technical team has been constituted with officials from Electrical

inspectorate, Energy Management Center, Certified Energy Auditor and

resident engineers of licensee concerned for a fresh study on revision of limit

of the quantum of transmission loss allowable to the distribution licensees in

the state. Based on the study a meeting was held by Secretary (Power) on

06-08-2015 to discuss about the limit of transmission loss allowable to the

distribution licensees. The losses allowable to Technopark were fixed at

6.17% based on the technical study conducted.

Year 2013-14 2014-15 2015-16 2016-17 2017-18

% A T & C Losses

6.54 5.79 5.76 3.83 3.83

Table -1


Page | 22

Year 2012-13 Actual

2012-13 Approved

2013-14 Actual

2013-14 Approved

2014-15 Actual

% A T & C Losses

5.79

4.00

6.54

3.8

6.12

The chart indicating the distribution losses during the control period is shown

below.

Chart-1

As seen from the chart given above the distribution losses is showing a

decreasing trend. The AT&C loss projected for FY 2017-18 is only 3.83% which is

lower than the distribution loss in the previous years. Hon’ble Commission may

please approve the distribution losses projected by Technopark for the FY

2017-18.

6.54

5.79 5.76

3.83 3.83

0

1

2

3

4

5

6

7

2013-14 2014-15 2015-16 2016-17 2017-18

Distribution loss

Distribution loss


Page | 23

Consumer Mix Estimated for FY 2017-18

The consumer mix proposed for FY 2016-17 and 2017-18 and as per the

latest schedule of tariff is as follows which indicates percentage share of each

category and the details are given below.

Tariff Category FY 2016-17 FY 2017-18

No's % No's %

LT IV A (Industrial) 34 4.67 34 4.28

LT IVA (Industrial) 10kW<CL<20kW

2 0.27 2 0.25

LT IV A CL> 20 kW 5 0.69 8 1.01

LT IV B IT/ITES CL< 10kW 133 18.27 161 20.25

LT IVB IT/ITES 10kW<CL<20kW 50 6.87 64 8.05

LT IV B IT/ITES CL > 20 kW IT & ITES

204 28.02 211 26.54

LT VI A General 1 0.14 1 0.13

LT VI B General 9 1.24 9 1.13

LT VI C General 1 Phase or 3 Phase

36 4.95 36 4.53

LT VI F General 1 Phase 38 5.22 38 4.78

LT VI F General 3 Phase 38 5.22 38 4.78

LT VII A Commercial (1 ph) 63 8.65 71 8.93

LT VII A Commercial (3 ph) 75 10.30 82 10.31

LT VII B Commercial 15 2.06 15 1.89

HT-IB IT/ITES 17 2.34 17 2.14

HT-II Non Industrial/ Non Commercial

1 0.14 1 0.13

HT-IV Commercial 1 0.14 1 0.13

Self-Consumption 3 0.41 3 0.38

Street Lighting 3 0.41 3 0.38

Table -3

It may be noted that the maximum number of consumers are from the LT

industrial IT/ITES category, these consumers along with the IT/ ITES consumers

under the HT category are the mainstay of the licensee. Consumers coming

under self-consumption are Technopark phase-I campus, 110kV substation

Technopark phase-III and Technopark Kollam campus. The total share of non IT

consumers in the consumer base is 47%. The consumer mix proposed for FY

2017-18 is graphically depicted below.


Page | 24

34

2 8

161

64

211

1 9

36

38

38

71

82

15

17

1 1

3

3

Consumer Mix (FY 2017-18) LT IV A (Industrial)

LT IVA (Industrial)

10kW<CL<20kW

LT IV A CL> 20 kW

LT IV B IT/ITES CL< 10kW

LT IVB IT/ITES 10kW<CL<20kW

LT IV B IT/ITES CL > 20 kW IT &

ITES

LT VI A General

LT VI B General

LT VI C General 1 Phase or 3

Phase

LT VI F General 1 Phase

LT VI F General 3 Phase

LT VII A Commercial (1 ph)

LT VII A Commercial ( 3 ph )

LT VII B Commercial

HT-IB IT/ITES

HT-II Non Industrial/ Non

Commercial

HT-IV Commercial

Self-Consumption

Street Lighting


Page | 25

5. Consumer Category wise Energy Requirement for 2017-18

Projection of consumption and demand is made taking into consideration the

increase in power consumption due to the existing consumers and power

consumption expected due to the addition of new consumers. The

Technopark Phase-I Campus is almost saturated so new consumers expected

for FY 2017-18 is less. Consumer growth is happening in IT buildings inside

Technopark Phase-I Campus like leela Infopark building. TATA consultancy

services is setting up their software development centre in 25 Acres of SEZ

land in Technopark Phase-I campus. The construction works of TCS campus is

expected to be completed in financial year 2018-19. Only a part of the final

demand projected for TCS campus is considered to project their consumption.

The 1 million sqft IT building constructed by Technopark in phase-III campus

is almost fully occupied. This IT building is a multi-tenant facility. Over sixty

IT/ITES consumers have already started their operations from the building.

The power consumption of new consumers expected in this building is also

considered for projecting the energy requirement. The construction of 1-lakh

sqft IT building in Technopark Kollam was also completed. IT/ITES consumers

have already started operations from this building.

The expected consumption of consumers from various categories is tabulated

as follows. Majority of the consumers and energy consumption is happening

in the LT category of consumers. The consumer strength of HT consumer

category is very less when compared with the LT consumer category,

however around one third of the overall energy consumption is from these

category of consumers. 96.31% of energy in the HT category is consumed by

IT/ITES industrial consumers. Consumption of Non-Industrial/ Commercial HT

categories is less.

More than 90% of the consumption in the LT category is by IT/ITES industrial

consumers, out of this 80% of the consumption are by consumers having

power demand over 20kW. Self-consumption/ Auxiliary consumption of the

licensee is only 1 % of the total consumption of LT consumers.


Page | 26

The consumer categories have diversified as per the new tariff schedule. For

the LT IT/ITES consumers TOD tariff is considered for the consumers having

a connected load of 20kW or above.

The estimated load growths of different categories of consumers in different

phases are given in table below.

Load in kVA 2016-17 2017-18

LT HT LT HT

Phase I

123 - 190 500

Phase II

- - - 500

Phase III

125 - 192 -

Phase IV

- - - -

Phase V

96 - 168 -

Total (kVA) 344 - 550 1000

Table-4

The energy consumption during 2016-17 and the projected energy

consumption of different categories of consumers for the period 2017-18 are

as follows.


Page | 27

Category Energy Consumption

in Lakhs Units

HT 2015-16 (Actuals)

2016-17 (Estimated)

2017-18 (Projected)

HT I (IT & TES 295.72 362.92 373.81

HT -2( Non-Industrial Non Commercial)

3.09 3.09 3.19

HT -4 ( Commercial) 7.44 7.44 7.68

HT Sub Total 306.24 373.45 384.68

LT IV A (Industrial) 0.05 1.82 1.91

LT IVA (Industrial) 10kW<CL<20kW 0.20 0.25 0.26

LT IV A CL> 20 kW (Industrial) 4.40 4.35 4.57

LT IV B IT/ITES CL< 10kW 9.04 11.21 12.34

LT IVB IT/ITES 10kW<CL<20kW 15.28 20.76 22.84

LT IV B IT/ITES CL > 20 kW IT & ITES 392.94 413.68 455.05

LT VI A General 0.12 0.15 0.16

LT VI B General 1.25 1.23 1.29

LT VI C General 1 Phase or 3 Phase 2.55 2.87 3.02

LT VI F General 1 Phase 0.77 1.04 1.09


LT VII A Commercial (1 ph ) 1.08 1.03 1.13

LT VII A Commercial (3 ph) 8.10 8.53 9.38

LT VII B Commercial 0.18 0.16 0.17

Self-Consumption 2.53 2.52 2.64

Street Lighting 2.79 3.42 3.59

LT Sub Total 451.66 476.49 523.09

Total 757.90 849.94 907.77

Table-5


Page | 28

6. Purchase of Power

The power demand and energy requirement for different years are projected

based of the previous year consumption, the growth in consumption of

existing consumers and the estimated consumption of new consumers. The

forecasted values are as follows.

Period Power

Demand in kVA

Energy in

Lakhs kWh

Demand

charges rate :

Rs/kVA

Demand

charges : Rs in

Lakhs

Energy

Charges Rs /kWh

Energy

Charges Rs in

Lakhs

Total Cost

Rs in Lakhs

2015-16 240396 804.00 300 680.12 4.85 3899.37 4598.96

2016-17 (Revised)

256359

884.00

300

846.00

4.85

4332.82

5178.81

2017-18 (Projected)

274664

947.00

300

906.39

4.85

4746.91

5653.30

Table – 6

It may be noted that Hon’ble Commission had approved the PPA between

Technopark and KSEBL for availing power to the extent of 1.6 MVA for

Technopark Kollam Campus. Therefore, it is assumed that the operation of

110kV substation will commence from the start of next financial year onwards

and the present bulk supply tariff is applied for estimating the power

purchase requirement for Technopark Kollam campus.

Hon’ble Commission has informed the renewable purchase obligation target to

be achieved by Technopark and other. Technopark plans to achieve this in a

stage wise manner. The total requirement of Non-Solar REC’s for meeting the

RPO for the FY 2015-16 was 3031 No’s. Technopark had purchased the Non-

Solar REC’s for fulfilling the Non-Solar renewable purchase obligation for FY

2015-16 and forwarded the same to Hon’ble Commission. The actual cost

incurred for purchasing the Non-Solar REC’s for FY 2015-16 to meet the

obligation is accounted under the power purchase expenses for 2016-17 as

the purchase is made during the FY 2016-17. The estimated RPO for

Technopark for FY 2016-17 would be 38.24 lakh units out of which 3.82 lakh

units would be Solar RPO and 34.42 lakh units would be non-solar RPO. The

cost of meeting the RPO for FY 2016-17 through purchase of REC’s is

estimated to be Rs. 64.27 lakhs and the purchase of certificates is planned in

the financial year 2017-18.


Page | 29

The phase wise power purchase expenses are given in the table below.

Phase wise power purchase expenses for FY 2016-17

The tariff used for estimation of power purchase expenses during FY 2016-17

is bulk supply tariff of Technopark ie. Rs. 4.85/unit and Rs. 300/kVA for

Technopark Phase-I/II and III campuses and Rs. 5.9/Unit which is the

average of HT-IB IT/ITES and HT II (B) General for Technopark Kollam.

Financial Year 2016-17

Campus

Max.

Demand (In

kVA)

Energy

Received

(In lakhs

Units)

Total

annual fixed

charges

(Rs. Lakhs)

Total

Variable

Charges

(Rs. Lakhs)

Total cost of

energy

received (Rs.

Lakhs)

Technopark Phase-I 183897.00 662.03 606.86 3210.82 3817.68

Technopark Phase-II 0 0 0 0 0

Technopark Phase -III 55973.50 216.67 184.71 1050.82 1235.53

Technopark Phase -IV (Technocity) 0 0 0 0 0

Technopark Phase-V (Technopark Kollam) 16489.13 5.09 54.41 24.67 79.09

Procurement of Non-Solar REC’s 0 0 0 46.51 46.51

Total 256359.63 883.78 845.99 4332.82 5178.81

Table – 7


Page | 30

Phase wise power purchase expenses for FY 2017-18

The tariff used for estimation of power purchase expenses during FY 2016-17

is bulk supply tariff of Technoparkie. Rs. 4.85/unit and Rs. 300/kVA for

Technopark Phase-I/II/III and phase-V campuses.

Financial Year 2017-18

Campus

Max. Demand

(In kVA)

Energy

Received

(In lakhs

Units)

Total

annual fixed

charges

(Rs. Lakhs)

Total

Variable

Charges

(Rs. Lakhs)

Total cost of

energy

received (Rs.

Lakhs)

Technopark Phase-I 197027.25 709.29 650.19 3440.07 4090.26

Technopark Phase-II 0 0 0 0 0

Technopark Phase-III 59970.01 232.13 197.90 959.82 1157.72

Technopark Phase-IV (Technocity) 0 0 0 0 0

Technopark Phase-V (Technopark Kollam) 17666.46 2.48 5380 282.75 345.05

Procurement of REC’s 0 0 0 64.27 64.27

Total 274663.71 946.88 906.39 4746.91 5653.30

Table – 8 An amount of Rs. 64.27 lakhs is earmarked for the purchase of renewable energy

certificate for the FY 2016-17 during FY 2017-18. Hon’ble Commission may

please approve the power purchase expenses projected by Technopark.


Page | 31

7. O & M Expenses

O&M expenses comprises of employee cost, repairs and maintenance cost

and administration and general expenses. The normative values specified in

the regulation on the Terms and Conditions for Determination of Tariff

(dated 14-11-2014) are lower than the estimation based on previous year

actual values and hence we have taken the estimated values in the revised

ARR. There is a major increase in the O&M expenses during the FY 2017-18

when compared to the previous year. It is mainly due to the increase in

contract labour cost of operating and maintenance staff of substation and

distribution network and due to the increase in A&G expenses. The details for

every component of the O & M are given below.

Rs. In Lakhs.

O & M 2015-16 (Actual)

2016-17 (Approved)

2016-17 (Normative)

2017-18 (ARR)

Employee Cost

34.19

20.99

141.80

39.20

A & G Expenses

157.10

51.62

20.99

200.61

R& M Expenses

211.35

106.40

165.52

337.01

Total 402.64 179.01 328.31 576.82

Table-9

8.1 Employee Cost:

The employee cost worked out for the FY 2017-18 is higher than the

approved figures for 2016-17 however it is much lower than the normative

values specified for Technopark in the Terms and conditions for determination

of tariff regulations 2014.

1. The contracted labour cost for the operation and maintenance of the

power distribution system in the Technopark campuses ie. the

outsourced labour cost was previously included under the head

employee cost. Hon’ble Commission had clarified that with regard to a

person engaged on contract basis against a sanctioned post, the cost

incurred can be accounted under the head ‘employee cost’ whereas the


Page | 32

labour engaged on contract basis for repair and maintenance purposes

will form a part of ‘Repair and maintenance cost’ only and cannot be

included under employee cost.

2. Technopark had projected the employee cast for FY 2017-18 based on

the cost apportioned for the employees engaged on contract basis

against a sanctioned post. The details are shown below.

Designation No. of posts Apportionment %

Chief Executive Officer 01 10

General Manager (Projects) 01 50

Chief Finance Officer 01 20

Asst. General Manager (Projects) 02 30

Manager (Finance) 01 20

Finance Officer 01 20

Asst. Manager (Electrical) 02 50

Asst. Manager (Electrical) 01 100

Executive (Finance) 01 50

Junior Officer (Finance) 01 20

The above staff pattern is taken for projecting the employee cost for FY

2017-18. Hon’ble Commission may please approve the employee cost

projected for the ensuing financial year.

7.2 Administration and General Expenses:

The A & G expenses for the previous, present and ensuing year are given in

table-9. There has been a substantial increase in the A&G expenses over the

figures approved by Hon’ble Commission. The major cost drivers for the

administrative and general expenses are security arrangements and section

3(1) duty. Security arrangements are required for the security of the power

distribution system, substations etc. and section 3(1) duty is paid by

Technopark to Government. Hon’ble Commission may please allow the 3(1)

duty paid by Technopark to Government. We request Hon’ble Commission to

approve the administrative and general expenses projected for 2017-18.


Page | 33

7.3 Repairs and Maintenance Cost:

In the ARR for 2016-17, the outsourced employee costs were not added to

the repairs and maintenance cost. Taking into consideration of the comments

of Commission, the cost incurred for the operation and maintenance of the

substations and power distribution system is also added to the repair and

maintenance cost. Hence the cost had increased much higher than the

approved/ normative repair and maintenance cost. Operation and

maintenance cost for outsourced agencies is the major component in the

repair and maintenance cost. The agencies are selected through a competitive

open tendering process and Technopark have little control over the tendered

value of work. The cost claimed is solely for the O&M of the power

distribution system and the O&M of water/ telecom system is not included in

this. The details of O&M expenses incurred for various campuses and the

projected amount for 2017-18 is tabulated below. Hon’ble Commission may

please approve the R&M expenses projected for F 2017-18.

Table-10

8. Depreciation

The depreciation for various years is estimated as per CERC and KSERC

regulations. The capitalization is not considered by the hon. Commission

during 2014-15. But the estimation of depreciation for the multiyear is done

after adding the cost of substation equipment and lines those have already


Page | 34

commissioned during 2014-15.The details are shown in the concerned forms.

The projected values of depreciation for different years are given in table-11.

We have spent Rs. 149 lakhs for the laying of cables for 11kV power

distribution system in Technopark phase-3 campus and the project was

commissioned during 2012-13. An amount of Rs. 199.72 was spent towards

building a main receiving substation in Technopark Phase-I campus. And Rs.

20 lakhs included under other civil works is the expenses incurred for the

expansion of the existing 110kV substation at Technopark Phase-III. These

expenses were shown in previous ARR and ERC petitions. The depreciation

component due the capital expenses is included in the year 2017-18 and

hence the depreciation in 2017-18 is slightly increased.

Rs. In Lakhs

Depreciation Rs in Lakhs

2015-16 Previous year

2016-17 Present year

2017-18 Ensuing year

Depreciation On GFA

155.26

177.36

196.44

Grants & Consumer contribution

28.06

28.06

28.06

Allowable Depreciation

127.20

149.30

168.38

Table-11

9. Interest & Finance Charges

Interest on different loans and the financial charges for different years are

given in the following table. Projections were done based on the actual

payments made. The loan component for electricity distribution portion is

apportioned from the total loan taken for infrastructure development. Hon’ble

Commission may please approve the interest and finance charges.

Interest & Finance Charges (Rs. Lakhs)

2015-16 Actuals

2016-17 Estimated

2017-18 Projected

194.92

196.77

184.88

Table -12


Page | 35

10. Return on Equity

As per the KSERC regulation on terms and conditions for determination of tariff

dated 14-11-2014 the returns can be calculated based on the Equity portion of the

capital expenses, or on the basis of net fixed assets if the equity portion is not

clearly identifiable the permitted value of returns is 3 percentage of the net Fixed

Asset as on the first day of the concerned financial year. In this petition the returns

are estimated on this principle and the values in different years of the control period

are given in table.

RONFA 2013-14 Actual

2014-15 Actual

2015-16 Actual

2016-17 Estimated

2017-18 Projected.

Net Fixed Asset at the beginning of the year (Rs. Lakhs)

1682.36

2089.89

1937.85

2178.9

2003.79

Returns 3% (Rs. Lakhs)

50.47

62.70

89.92

66.60

61.28

Table-13

M/S Technopark has no expenses in the way of transmission charges or RLDC

charges or interest on bonds or interest on working capital (No short term

loan is taken for working capital) or taxes of ROE etc.


Page | 36

12. Summary of Aggregate Revenue Requirement

The aggregate revenue requirement for different years and projected for 2017-18, third year of the first control period is shown in the table below.

Aggregate Revenue Requirement: Rs. in Lakhs

2015-16 2016-17 2017-18

Actual

Provisional (April to

Nov 2016)

Projected for the

whole year

Projected

in MYT Revised Projection

Cost of own power purchase 4598.96 2961.54 5178.81 5518.63 5653.30

Transmission Charges 0.00 0.00 0.00 0.00 0.00

NLDC/RLDC/SLDC Charges 0.00 0.00 0.00 0.00 0.00

Operation & Maintenance Expenses 435.07 338.80 508.20 506.77 576.82

Employee Expenses 66.62 27.18 40.77 313.76 39.20

Annual Contribution for Terminal Liabilities based

on actuarial valuation 0.00 0.00 0.00 0.00 0.00

Administration & General Expenses 157.10 120.19 180.29 180.34 200.61

Repair & Maintenance Expenses 211.35 191.43 287.15 12.67 337.01

Depreciation 127.20 99.53 149.30 149.30 168.38

Interest and finance charges on long term loans 194.92 131.18 196.77 142.00 184.88

Interest on Bonds to meet Terminal Liabilities 0.00 0.00 0.00 0.00 0.00

Interest on Working Capital 0.00 0.00 0.00 0.00 0.00

Interest on consumer security deposits and deposits from Users of the distribution system

66.62 53.29 79.94 79.94 95.93

Any other item (to be specified) 0.00 0.00 0.00 0.00 0.00

Contribution to contingency reserves 0.00 0.00 0.00 0.00 0.00

Provisioning for Bad debts, if any 0.00 0.00 0.00 0.00 0.00

Adjustment for profit/loss on account of controllable/uncontrollable factors

0.00 0.00 0.00 0.00 0.00

Total Revenue Expenditure 5422.76 3923.15 6113.02 6285.04 6679.31

Return on Equity /Net Fixed Assets 89.92 44.40 66.60 66.60 61.28

Tax on ROE 0.00 0.00 0.00 0.00 0.00

Aggregate Revenue Requirement

5512.68 3133.49 6179.62 6351.64 6740.59

Less: Non-Tariff Income 47.28 38.81 58.21 49.53 64.03

Less: Income from wheeling charges 0.00 0.00 0.00 0.00 0.00

Less: Receipt on account of Cross Subsidy

Surcharge on wheeling charges 0.00 0.00 0.00 0.00 0.00

Less: Receipt on account of additional surcharge on charge of wheeling

0.00 0.00 0.00 0.00 0.00

Aggregate Revenue Requirement from Retail Tariff

5645.40 3928.74 6121.41 6302.11 6676.56

Table-14


Page | 37

13. Expected Revenue from charges

Consumption of various categories of consumers are given the following table

Category

Energy Consumption

in Lakhs Units


2016-17 (Estimated)

2017-18 (Projected)

HT I (IT & TES 295.72 362.92 373.81

HT -2( Non-Industrial Non Commercial)

3.09 3.09 3.19

HT -4 ( Commercial) 7.44 7.44 7.68

HT Sub Total 306.24 373.45 384.68

















LT Sub Total 451.66 476.49 523.09

Total 757.90 849.94 907.77

Table 15


Page | 38

The ERC of various categories of consumers are given the following table

Category Revenue (In Rs. Lakhs)


2016-17 (Estimated)

2017-18 (Projected)

HT I (IT & TES 2063.89 2179.77 2245.17

HT -2 (Non-Industrial Non Commercial) 20.89 21.25 21.95

HT -4 ( Commercial) 61.86 60.21 62.19

HT Sub Total 2146.63 2261.23 2329.31

















LT Sub Total 3279.53 3456.96 3794.63

Total 5426.16 5718.19 6123.93


Page | 39

The revenue from sale of power is estimated based on the existing tariff on the

projected billing demand and annual energy consumption of different categories

of consumers. State levies are not included in the ERC.

EXPECTED REVENUE FROM CHARGES: Rs. In Lakhs

2015-16 2016-17 2017-18

Actual Estimated Projected

Revenue from Tariff 5426.16 5718.19 6123.93

Table -16


Page | 40

14. Per Unit Realization from various tariff categories.

PER UNIT REALISATION

Category 2015-16 Actual

2016-17 Estimated

2017-18 Projected

Rs/kWh Rs/kWh Rs/kWh

LT Categories









LT VI C General (1 Phase or 3 Phase) 10.02 10.15 10.15

LT VI F General (1 Phase) 8.41 8.48 8.48

LT VI F General (3 Phase) 9.64 9.42 9.42






LT Average 7.48 7.45 7.25

HT Categories

HT -I Industrial 6.98 6.01 6.01

HT -II Non Industrial 6.76 6.88 6.88

HT- IV Commercial 8.32 8.10 8.10

HT Average 7.35 6.99 6.06

Overall 7.41 6.90 6.65

Table-1


Page | 41

15. Non-Tariff Income

The estimated non-tariff income for the years is given in table.

Rs in Lakhs

Non-tariff Income

2015-16 Actuals

2016-17 Estimated

2017-18 Projected

47.28 58.21 64.03

Table-18

16. Summary of Gross Expected Revenue.

The summary of gross expected revenue is shown in the table below.

Rs. In Lakhs 2015-16 (Actual) 2016-17 (Estimated) 2017-18 (Projected)

Total Expenditure 5512.68 6179.62 6740.59

Income from sale of power

5426.16 5718.19 6123.93

Non-Tariff Income 47.28 58.21 64.03

Total Income 5473.44 5776.40 6187.96

Revenue Gap -39.23 -403.22 -552.63

Table -19


Page | 42

17. ARR-ERC Comparison

ARR, ERC and the Revenue Gap for different years without considering the non-

tariff income are given below.

ARR, ERC & ERC

2015-16 Actual 2016-17 Estimated

2017-18 Projected

ARR 5465.40 6121.41 6676.56

ERC 5426.16 5718.19 6123.93

Revenue Gap -39.23 -403.22 -552.63

Table -20

-1000.00

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

8000.00

ARR ERC Revenue Gap

ARR ,ERC & ERC 2015-16Actual

ARR ,ERC & ERC 2016-17Estimated

ARR ,ERC & ERC 2017-18Projected


Page | 43

18. Revenue Gap & Treatment of Revenue Gap

The estimated revenue Gap for the year 2017-18 and previous years are shown

in table below.

REVENUE GAP 2015-16 2016-17 2017-18

Provisional Provisional Projected

Profit/Loss in Rs. Lakhs -39.23 -403.22 -552.63

Table -22

Treatment of Revenue Gap

Revenue gap may be adjusted by revising the tariff of power supply to

Technopark consumers or by reducing the rate of bulk power supply. Separate

tariff petition will be filed after fixing the revenue gap by the Honorable

Commission.


Page | 44

19. PRAYER:

Technopark therefore prays before the Hon’ble Kerala State

Electricity Regulatory Commission to

1. Approve the projected ARR/ERC for the third year of the

control period ie. Financial year 2017-18.

2. Technopark may be permitted to file the tariff petition after

fixing the revenue gap by the Hon. Commission.

Encl: All relevant data forms.

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technopark arr-erc: 2017-18 y ocms.technopark.org/zcmspg/zupload/5363/dnl_categ...technopark is an...

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