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    TARIFF ORDER

    OF THE

    WEST BENGAL ELECTRICITY REGULATORY COMMISSION

    FOR THE YEAR 2010 2011

    IN

    CASE NO: TP 36 / 08 - 09

    IN RE THE TARIFF APPLICATION OF THE WEST BENGAL

    STATE ELECTRICITY TRANSMISSION COMPANY LIMITED

    FOR THE YEARS 2008-2009, 2009-10 AND 2010-11

    UNDER SECTION 64(3)(a) READ WITH

    SECTION 62(1) OF THE ELECTRICITY ACT, 2003

    DATE: 29.07.2010

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    Tariff Order of WBSETCL for the year 2010 2011

    CHAPTER - 1

    INTRODUCTION

    West Bengal Electricity Regulatory Commission 2

    1.1 The West Bengal Electricity Regulatory Commission (hereinafter referred to as

    the Commission) was constituted by the Government of West Bengal in the

    year 1999 in terms of section 17 of the Electricity Regulatory Commissions Act,

    1998 (hereinafter referred to as the 1998 Act). The 1998 Act, along with two

    other Acts, was repealed by section 185 of the Electricity Act, 2003 (hereinafter

    referred to as the Act) which came into force with effect from 10 June, 2003.

    The first proviso to section 82(1) of the Act ensured continuity of the

    Commission along with that of all other State Electricity Regulatory

    Commissions by laying down that the State Electricity Regulatory

    Commission, established by a State Government under section 17 of the 1998

    Act (and some other enactments) and functioning as such immediately before

    coming into force of the Act, shall be the State Commission for the purposes of

    the Act.

    1.2 The functions of a State Commission are laid down in section 86 of the Act. Of

    its many functions, a State Commission has to discharge the function of

    determination of tariff for generation, supply, transmission and wheeling of

    electricity, wholesale, bulk or retail, as the case may be, within the State.

    Further, section 62(1) of the Act also requires the Appropriate Commission to

    determine the tariff in accordance with the provisions of the Act for supply of

    electricity by a generating company to a distribution licensee, for transmission

    of electricity, for wheeling of electricity as well as for retail sale of electricity.

    1.3 The Commission, therefore, has all the authority under the Act to determine the

    tariff as laid down in the Act and these powers and authority are in continuationof similar powers and authority that were enjoyed by the Commissions under

    section 29 of the 1998 Act.

    1.4 In accordance with the provisions of Part XIII of the Act, the Government of

    West Bengal reorganized West Bengal State Electricity Board (in short

    WBSEB), a State Electricity Board constituted under section 5 of the

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    West Bengal Electricity Regulatory Commission 3

    Electricity (Supply) Act, 1948 (since repealed), and replaced it by two

    Government companies viz. West Bengal State Electricity Distribution

    Company Limited (in short WBSEDCL) and West Bengal State Electricity

    Transmission Company Limited (in short WBSETCL) with effect from

    1.4.2007. In terms of the provisions of the aforesaid Part of the Act, the assets

    and liabilities of the erstwhile WBSEB, which were vested in the Government of

    West Bengal due to reorganization of WBSEB, were redetermined by the

    Government of West Bengal after financial restructuring and transferred witheffect from 1.4.2007 to WBSEDCL and WBSETCL depending on their

    functions. While WBSETCL now owns the redetermined assets and performs

    the functions of the erstwhile WBSEB relating to transmission of electricity and

    State Load Despatch Centre (in short SLDC), the redetermined assets relating

    to distribution of electricity and hydro-generating stations of the erstwhile

    WBSEB now belong to WBSEDCL and it is performing the function of

    distribution of electricity in the area of supply of the erstwhile WBSEB as also

    operating and maintaining the hydro-generating stations of the erstwhile

    WBSEB. Similarly, the redetermined liabilities of the erstwhile WBSEB for its

    transmission system and SLDC are at the credit of WBSETCL and that for its

    distribution system and hydro-generating stations are at the credit of

    WBSEDCL. As WBSETCL is a successor entity of the erstwhile WBSEB for

    transmission of electricity throughout the State of West Bengal, WBSETCL is a

    deemed transmission licensee in terms of the fifth proviso to section 14 of the

    Act.

    1.5 In terms of the provisions of the Act, therefore, the Commission is fully

    empowered to determine the tariff of WBSETCL.

    1.6 The Commission had, in the past, passed tariff orders determining the tariffs of

    the erstwhile WBSEB for seven consecutive years starting from 2000 - 2001.

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    West Bengal Electricity Regulatory Commission 4

    The Commission also passed tariff order determining the tariffs of WBSETCL

    for 2007 2008.

    1.7 A generating company or a licensee , whose tariff is to be determined by the

    Commission as per the provisions of the Act, is required to prepare the

    application for determination of tariffs for each year of a control period under

    the multi-year tariff framework complying with the provisions of the West

    Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff )

    Regulations, 2007, as amended (hereinafter referred to as the Tariff

    Regulations) and submit the same to the Commission within the specified

    date. Though as per the Tariff Regulations the last date for submission of the

    application to the Commission by a generating company or a licensee for

    determination of tariffs for each year of the control period comprising three

    years from 2008 2009 to 2010 2011 (hereinafter referred to as the second

    control period) was 1 March, 2008, the Commission, after considering the

    prayers of the licensees and the generating company, whose tariffs are

    determined by the Commission, for extension of last date for submission of the

    aforesaid application to the Commission, extended the last date for the purpose

    upto 31 May, 2008. Since, however, 31 May, 2008 and 1 June, 2008 were

    holidays, in terms of the provision contained in the West Bengal Electricity

    Regulatory Commission (Conduct of Business) Regulations, 2007, a

    generating company or a licensee was at liberty to submit the aforesaid

    application for determination of tariff to the Commission by 2 June, 2008.

    1.8 Accordingly, WBSETCL, complying with the provisions of the Tariff

    Regulations, prepared the application for the determination of its tariffs for each

    year of the second control period and submitted the same to the Commission

    on 26 May, 2008. This tariff application was admitted by the Commission and

    numbered as TP-36/08-09.

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    West Bengal Electricity Regulatory Commission 5

    1.9 WBSETCL was thereafter directed to publish, as required under section 64(2)

    of the Act, the gist of the tariff application, as approved by the Commission, in

    at least four daily newspapers having wide circulation, at least 1 (one) of such

    newspapers being in Bengali and English. The gist was, accordingly, published

    simultaneously on 9 June, 2008 in Ananda Bazar Patrika, Ganasakti, Sanmarg

    and The Times of India. The publication invited the attention of all interested

    parties, stake holders and the members of the public to the application for

    determination of tariffs of WBSETCL for each year of the second controlperiod and requested for submission of objections, comments etc., if any, on

    the tariff application to the Commission by 14 July, 2008 at the latest.

    Opportunities were also afforded to all to inspect the tariff application and take

    copies thereof.

    1.10 Only one set of objections, comments, etc. was received by the Commission

    within the due date, i.e., 14 July, 2008. Those objections, comments, etc. came

    from M/s Bharat Chamber of Commerce (in short BCC). As required under the

    Act, the Commission has duly considered the objections, comments, etc. of

    BCC while dealing with the application of WBSETCL.

    1.11 The Commission thereafter, in accordance with the provisions of the Act and

    Tariff Regulations, determined the Aggregate Revenue Requirement (in short

    ARR) of WBSETCL separately for each of the 3 years of the second control

    period. It also determined the tariffs of WBSETCL for 2008 2009. The tariff of

    WBSETCL for the year 2009 2010 was also determined subsequently

    carrying out adjustments to the amount of ARR for that year as wereconsidered necessary based on the Annual Performance Review (in short

    APR) for the year 2007 2008 and on ascertaining the amount recoverable

    through tariff. The analyses and findings, for such determination of ARRs for

    the control period and of the amount recoverable through tariffs for 2009

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    Tariff Order of WBSETCL for the year 2010 2011

    West Bengal Electricity Regulatory Commission 6

    2010 were recorded in Commissions orders dated 23 September, 2008 and 28

    July, 2009 respectively in case no. TP-36/08-09.

    1.12 The Commission now proceeds to determine the revenue recoverable through

    tariffs by WBSETCL during 2010 2011 as also the tariffs for it for the same

    year after carrying out adjustments to the amount of ARR for that year as were

    considered necessary based on the APR for the year 2008 2009. Those may

    be found in subsequent chapters.

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    Tariff Order of WBSETCL for the year 2010 2011

    CHAPTER 2SUMMARISED STATEMENT OF AGGREGATE REVENUE

    REQUIREMENT & REVENUE RECOVERABLETHROUGH TARIFF FOR THE YEAR 2010 2011

    West Bengal Electricity Regulatory Commission 7

    2.1 As stated in the preceding chapter, the Commission determined the ARR of

    WBSETCL separately for each of the three years of the second control period

    covering the years 2008 2009, 2009 2010 and 2010 2011 in the tariff order

    for 2008 2009 based on the analyses and findings recorded in that order. Such

    summarized statement of ARR for 2010 2011 is given in Annexure-2A. As may

    be seen therein, the amount of ARR determined for the referred year was Rs.

    62052.75 lakh.

    2.2 In terms of West Bengal State Electricity Transmission Company Limited

    (Revision of Pay and Allowances) Rules, 2009, WBSETCL revised the pay and

    allowances including gratuity and LTA of all the categories of its employees

    including retired employees with financial effect from 01.04.2007, resulting in

    considerable increase in the total amount of employee cost as was considered

    while determining the amount of ARR for the year 2010 2011 (vide the amount

    against Sl. No. 1 in the referred statement at annexure 2A). The regulation 2.5.1

    (XVII) of the Tariff Regulations of the Commission provides for the revision of the

    amount of ARR determined for the ensuing year under the Multi Year Tariff (in

    short MYT) approach to the extent of such increase. WBSETCL made an

    application on 7 May, 2010 for such revision on this account submitting the

    relevant documents / data. The referred application was registered under case

    no. OA-78/10-11. On viewing the same, the Commission admitted to allow an

    additional amount of Rs. 3462.45 lakh (Rs. 12691.45 lakh Rs. 9229.00 lakh)

    towards employee cost and to revise the amount of ARR to that extent. The

    Commissions order dated 30 June, 2010 in case no. OA-78/10-11 may be

    referred to in this regard. No other revision is required on any of the items of

    Annexure 2A except employee cost. The revised statement of ARR for the

    year 2010 2011 with a total of Rs. 65515.20 lakh is thus as shown in Annexure

    2B. The Annual Performance Review (in short APR) for the aforesaid year, as

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    and when due, will, therefore, be done on the basis of this revised amount of

    ARR as shown in Annexure 2B.

    2.3 The Commission in its order dated 16.01.2009 in Case No. OA-48/08-09, on an

    application made by the West Bengal Power Development Corporation Limited

    (hereinafter referred to as WBPDCL) for approval to the completion cost of the

    Bakreswar Transmission System (hereinafter referred to as the project) and for

    recovery of the balance fixed charges, considered provisionally Rs. 29909.32

    lakh as the completion cost of the project and accordingly allowed recovery of an

    additional amount of Rs. 17691.49 lakh against fixed charges comprising

    depreciations, interest/finance charges and returns on equity for the period from

    2001 2002 to 2005 2006. Detailed calculation for arriving at the aforesaid

    figure of Rs. 17691.49 lakh allowed to be recovered by WBPDCL against fixed

    charges relating to capital employed for the project was also shown in the

    aforesaid order of the Commission. It was also mentioned in the aforesaid order

    of the Commission that if the completion cost of the project subsequently gets

    approval of the Central Electricity Authority (in short CEA) or any other

    communication from CEA on the issue is received, then WBPDCL shall

    immediately bring such fact to the notice of the Commission and accordingly

    adjustment will be done by the Commission from the tariff in due course and that

    the methodology for recovery of such additional amount of Rs. 17691.49 lakh

    through tariff will be mentioned in the tariff order for 2009 2010. The

    Commission, accordingly, decided and mentioned in the tariff order dated 28

    July, 2009 for the year 2009 2010 that the aforesaid additional fixed cost

    amounting to Rs. 17691.49 lakh would be recovered by WBSETCL through tariff

    and pay the aforesaid amount to WBPDCL in 120 (one hundred and twenty)

    equal monthly instalments @ Rs. 147.429 lakh per month starting from the billing

    month of / pertaining to August, 2009. Based on the decision of the Commission

    mentioned above, WBSETCL was allowed to recover Rs. 1179.43 lakh

    (Rs. 147.429 lakh x 8) through tariff from its system users during 2009 2010

    and to reimburse the same to WBPDCL during 2009 - 2010. Twelve monthly

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    West Bengal Electricity Regulatory Commission 9

    instalments at the rate mentioned above totaling to Rs. 1769.15 lakh (Rs.

    147.429 lakh x 12) are recoverable by WBSETCL during 2010 2011 and

    positive adjustment with the ARR of WBSETCL for 2010- 2011 is to be made to

    determine the total revenue recoverable through tariff by WBSETCL during 2010

    2011. The amount of Rs. 1769.15 lakh is to be reimbursed to WBPDCL by

    WBSETCL during the year 2010 2011.

    2.4 In terms of order dated 14 July, 2010 in Case No. OA-96 /10-11, the Commission

    approved the total of net expenditure in SLDC budget as Rs. 1468.00 lakh which

    necessitates revision of SLDC charges in the ARR for 2010 2011 (as revised).

    The Commission has also ordered vide order dated 14 July, 2010 in Case No.

    SM-03/10-11 directing the WBSETCL to use the SLDC-UI Fund amounting to

    Rs. 1468.00 lakh to meet the total of net expenditure of SLDC during 2010

    2011 which is required to be adjusted against the gross ARR for 2010 2011 (as

    revised).

    2.5 No separate SLDC charge is, therefore, required to be realized by SLDC from

    the system users during the year 2010 2011 and the Commission does notallow the same.

    2.6 WBSETCL is directed to submit the statement showing the actual net of total

    expenditure of SLDC for the year 2010 2011 duly allocated amongst the

    constituents based on actual energy transmitted and proposing the respective

    constituent wise amount to be adjusted against the SLDC-UI Fund for the

    approval of the Commission. The income and expenditure on account of SLDC

    shall be reflected in the audited account of WBSETCL for the year 2010 2011.

    2.7 In terms of the Tariff Regulations, the Commission is to ascertain the amount of

    revenue recoverable through tariff by WBSETCL for the year 2010 2011 after

    carrying out, at its discretion, any positive or negative adjustment of the

    recoverable or refundable amount determined on APR for the year 2008 2009

    taking into consideration the admissible fixed costs determined in APR and the

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    Tariff Order of WBSETCL for the year 2010 2011

    West Bengal Electricity Regulatory Commission 10

    revenue realized by WBSETCL from its system users during that year with the

    revised ARR of WBSETCL for 2010 - 2011. The Commission in its order dated

    26 July, 2010 in Case No. APR-13/09-10 has determined the net amount of Rs.

    4049.34 lakh recoverable by WBSETCL from its system users for the year 2008

    2009 and the transmission charges realized by WBSETCL from its system

    users during that year. The Commission has decided not to make positive

    adjustment of any portion of the aforesaid net recoverable amount of Rs.

    4049.34 lakh, determined on APR for 2008 2009, with the ARR of WBSETCL

    for 2010 2011 to determine the revenue recoverable through tariff by

    WBSETCL during 2010 2011 and to keep the same as regulatory asset this

    year to contain tariff hike in 2010 2011. Accordingly, the total amount of

    revenue recoverable through tariff by WBSETCL during 2010 2011 works out

    as under:

    REVENUE RECOVERABLE THROUGH TARIFF IN 2010 - 2011Sl.

    No.Particulars

    Amount in

    Rs. in Lakh

    1Aggregate Revenue Requirement for 2010 2011(as revised vide Annexure 2B)

    65515.20

    2Positive adjustment for recovery of additional fixedcost for Bakreswar Transmission System. (videparagraph 2.3)

    1769.15

    3 Total Revenue Recoverable through tariff [3=1+2] 67284.35

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    Tariff Order of WBSETCL for the year 2010 2011

    ANNEXURE - 2A

    SUMMARISED STATEMENT OF AGGREGATEREVENUE REQUIREMENT FOR 2010 2011

    (DETERMINED EARLIER UNDER MYT APPROACH)

    West Bengal Electricity Regulatory Commission 11

    Sl No Particulars As admitted bythe Commission

    1 Employee cost 9229.00

    2 Repairs & Maintenance 1717.00

    3 Administration & General charges

    (a) Rent, Rates & Taxes(b) Legal charges

    (c ) Audit fees / Expenses

    (d) Others

    1472.31

    4 SLDC (Handling Charges) 2300.00

    5. Interest and Finance Charges

    (a) On capital borrowings 15515.00

    (b) On Bonds for Terminal benefits to employees 2295.00

    (c) on working capital 0.00

    (d ) Other Finance charges 132.00

    6 Depreciation 14033.007 Advance against depreciation 2687.00

    8 Cost of capital payable to other agencies 3246.44

    9. Taxes payable under Income Tax Act 1195.00

    10 Write off of deferred Revenue Exp. 40.00

    11 Special Allocation 0.00

    12 Reserve for unforeseen exigencies 1061.00

    13 Returns 10080.00

    14. Gross Revenue Requirement (1 to 13) 65002.75

    15Income from other non-tariff sources 650.0016. SLDC-(Handling Charges) 2300.00

    17. Aggregate Revenue Requirement for the year (14-15-16) 62052.75

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    Tariff Order of WBSETCL for the year 2010 2011

    ANNEXURE 2B

    SUMMARISED STATEMENT OF AGGREGATEREVENUE REQUIREMENT FOR 2010 2011(AS REVISED)

    West Bengal Electricity Regulatory Commission 12

    SlNo

    Particulars As admitted bythe Commission

    1 Employee cost 12691.45

    2 Repairs & Maintenance 1717.00

    3 Administration & General charges

    (a) Rent, Rates & Taxes

    (b) Legal charges

    (c ) Audit fees / Expenses

    (d) Others

    1472.31

    4 SLDC Expenses 1468.00

    5. Interest and Finance Charges

    (a) On capital borrowings 15515.00

    (b) On Bonds for Terminal benefits to employees 2295.00

    (c) on working capital 0.00

    (d ) Other Finance charges 132.00

    6 Depreciation 14033.00

    7 Advance against depreciation 2687.00

    8 Cost of capital payable to other agencies 3246.44

    9. Taxes payable under Income Tax Act 1195.00

    10 Write off of deferred Revenue Exp. 40.00

    11 Special Allocation 0.00

    12 Reserve for unforeseen exigencies 1061.00

    13 Returns 10080.00

    14. Gross Revenue Requirement (1 to 13) 67633.20

    15 Less: Income from other non-tariff sources 650.00

    16. Less: Amount transferred from SLDC-UI Fund 1468.00

    17. Aggregate Revenue Requirement for the year (14-15-16) 65515.20

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    Tariff Order of WBSETCL for the year 2010 2011

    CHAPTER - 3TARIFF ORDER

    West Bengal Electricity Regulatory Commission 13

    DETERMINATION OF THE RATE FOR RECOVERY OFTRANSMISSION CHARGES FOR THE YEAR 2010 2011.

    3.1 In the previous chapter, the Commission has determined the revenue

    recoverable through tariff by WBSETCL during 2010 2011 from the users of its

    transmission system as determined in APR for 2008 2009. The commission is

    now to fix the rate for recovery of the transmission charges from thetransmission system users of WBSETCL in accordance with the provisions of

    paragraph 6 of the Schedule-3 of the Tariff Regulations. The rate at which the

    transmission charges will be recovered by WBSETCL from its system users will

    include all the three components of the transmission tariff i.e., charges for use of

    the transmission network, system operation charges and reactive energy

    charges. It is, however, to mention here that WBSETCL has got no variable cost

    to recover from its system users besides the fixed charges as admitted by the

    Commission.

    3.2 As per the submissions of WBSETCL in its tariff application for the second

    control period, at present WBSEDCL is the sole long-term user of its

    transmission network and some other agencies use the same on short term

    basis on casual requirements. The projected quantum of energy that has been

    considered to be conveyed through its system is, thus, based on the projected

    quantum of power purchase by WBSEDCL from all the State and Central sector

    generating stations as well as the sent out energy from its hydel power stations

    and Purulia Pumped Storage Project. The evacuation system of the sent out

    power from the referred generating stations of WBSEDCL are also connected

    with the transmission system of WBSETCL.

    3.3 In regard to the transmission charges payable by the licensees or the open

    access customers, the computations are to be based on the capacity allocated

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    West Bengal Electricity Regulatory Commission 14

    to each beneficiary based on average of daily peak demand on annual basis.The allocated transmission capacity during the year 2010 2011 has been

    projected by WBSETCL as 4205.42 MW. The Commission considers to arrive at

    the unit rate of recovery of transmission charges taking into account the figure of

    4205.42 MW, as projected by WBSETCL. Such recoverable transmission

    charges are to be expressed in Rs./MW/month for the long-term customers and

    in Rs./MW/day for short-term customers on the basis of MW to be served by the

    system. The unit rate of recovery of transmission charges during 2010 2011

    from the transmission system users, thus, works out as under:

    i) Revenue Recoverable through Tariff Rs. 67284.35 lakh

    ii)Average System Demand on the basisof average of the daily peak

    4205.42 MW

    iii) Rate for long-term users

    Rs. 67284.35 lakh / (4205.42x12) =Rs. 1,33,329/MW/month, subject toadjustment as per clause 9.2 ofschedule 3 to West BengalElectricity Regulatory Commission(Terms and Conditions of Tariff)

    Regulations, 2007, as amended.

    iv) Rate for short-term usersRs. (1,33,329 x 0.25)/30 = Rs.1111.08/MW/day.

    v)Rate payable by short-term users in case of uncongested transmissionnetwork, shall be as under:-

    (a) Upto 6 Hours in a day in one block1/4th of the rate for short-termcustomers.

    (b) More than 6 Hours and upto 12Hours in a day in one block

    of the rate for short-termcustomers.

    (c) More than 12 Hours and upto 24Hours in a day in one block Full rate for short-term customers:

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    West Bengal Electricity Regulatory Commission 15

    Provided that the rates as mentioned in (v) above will not be applicable to thoseshort-term customers who have their drawal point within the State of West Bengal

    and injection point outside the State.

    Provided also that the rate for payment of transmission charges payable by a

    short-term customer, where capacity has been reserved through bidding process,

    shall be in terms of regulation 10.5 of the Commissions Open Access

    Regulations, 2007.

    3.4 In terms of regulation 8.2.1 of the Commissions Co-generation and Generation

    of Electricity from Renewable Sources of Energy Regulations, 2008, the

    transmission charges payable for open access to be availed of by such

    generators, shall be two-third of the rate of such charges applicable for long-term

    and short-term users as the case may be.

    3.5 For Bakreswar Transmission System of WBPDCL, WBSETCL shall pay the

    following amounts to WBPDCL during 2010 2011 in 8 (eight) equal monthly

    instalments starting from the month of August, 2010:-

    (a) Rs. 3246.44 lakh payable in 2010 2011 as referred to in paragraph 5.13 of

    the Tariff Order of WBSETCL for 2008 - 2009; and

    (b) Rs. 1769.15 lakh towards additional fixed cost as mentioned in paragraph 2.3

    of this order.

    3.6 This tariff shall be applicable from 01.04.2010. Adjustments, if any, for over-

    recovery / under recovery for the period from 01.04.2010 to 31.07.2010 shall be

    made in 8 (eight) equal monthly installments starting from the billing month of

    August, 2010.

    3.7 The realizations of the revenue from its transmission system users are supposed

    to meet the revenue recoverable through tariff of WBSETCL for 2010 2011.

    The recovery of such revenue over the concerned year on piecemeal basis, may

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    West Bengal Electricity Regulatory Commission 16

    result in under or over recovery of the total amount of fixed charges. It is,therefore, stipulated that the amount of any such under or over recovery will be

    dealt with suitably in APR for 2010 2011.

    3.8 It is directed that where there is any difference between the amounts appearing

    in the audited annual accounts and the amounts appearing in the application for

    determination of tariff or in the application for APR under any head, due to

    adjustments, for any reason whatsoever, a reconciliation statement is to be

    furnished along with such application for determination of tariff or APR, as the

    case may be, in respect of each of such heads.

    3.9 It is directed to submit the audited annual accounts of SLDC for the year 2010

    2011 by October, 2011 along with a statement showing item and head of

    account wise budget vis--vis actual for the year 2010 2011. The statement

    will also to be submitted along with the application for APR of WBSETCL for

    2010 2011.

    3.10 A set of Commissions directives to be complied with by the WBSETCL is given

    in Annexure 3A.

    3.11 WBSETCL shall present to the Commission a gist of the Order along with the

    names of at least four leading daily newspapers (at least one of which shall be in

    English, and one in Bengali) within three working days from the date of receipt of

    this Order for approval of the Commission and on receipt of the approval shall

    publish the approved gist in those newspapers within four working days from the

    date of receipt of the approval of the Commission.

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    ANNEXURE 3A

    DIRECTIVES TO WBSETCL ASSOCIATEDWITH TARIFF ORDER FOR THE YEAR 2010-11

    West Bengal Electricity Regulatory Commission 17

    1.0 The Commission hereby gives certain directives to WBSETCL as noted in

    following paragraphs. These directives are to be complied with and intimated to

    the Commission within the dates / periods mentioned therein.

    2.0 Investment approval was accorded in February 2009 by the Commission on

    different schemes formulated by WBSETCL with specified completion time

    against each. The same is short-listed in following paragraph.

    2.1 (i) Construction of three numbers 400 KV sub-station with associatedtransmission system.

    (ii) Construction of two numbers 220 KV sub-station with associatedtransmission system.

    (iii) Construction of three numbers 132 KV sub-station with associatedtransmission system.

    (iv) Construction of 132 KV line in different places.

    (v) Construction of one number 400 KV line bay etc. at power grid sub-

    station, Parulia.

    (vi) Installation of capacitive compensation devices in different 132 KV sub-stations.

    2.2 All the schemes mentioned above have got specific time frame after placement

    of order. WBSETCL is directed to intimate whether orders have meanwhile been

    placed indicating date of order in each case.

    2.3 While furnishing status report as on paragraph 2.2, the status on acquisition of

    land, where required, is to be mentioned separately.

    2.4 The reports as desired in paragraphs 2.2 & 2.3 are to be submitted by WBSETCL

    within one month from the date of issue of tariff order for 2010-11.

    3.0 WBSETCL is directed to submit a report indicating the penalty imposed on it

    since 1st April, 2007, payment of compensation, fine, cess etc., if any, by any

    order of any statutory authority under Electricity Act, 2003 or Environment

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    Protection Act, 1986 or Income Tax Act, 1961 or any other law for the time being

    in force or Rules or Regulations made thereunder. The amount of compensation,

    fine, cess, etc., paid by WBSETCL in pursuance of such order of the statutory

    authority referred to above, the head of account under which such compensation,

    fine, cess etc., paid has been booked in the Annual Accounts of WBSETCL and

    reasons for payment of such compensation, fines, cess, etc. shall be mentioned

    in the report. WBSETCL shall also mention in the report subsequent remedial

    measures it has undertaken to avoid the recurrence of payment of such

    compensation, fine, cess etc. WBSETCL shall submit the report within two

    months from the date of this order. Such reports shall form a part of the tariff

    applications and applications for APR of WBSETCL henceforward.

    4.0 Bus differential relays and other devices suitable for protection of EHV bus bar of

    all voltage classes are to be updated / installed / provided in all existing and

    proposed EHV sub-stations. The protection should be full-proof and in case of

    existing sub-stations, the scheme is to be adopted in phases in order of priority.

    4.1 WBSETCL is directed to furnish the programme of work specified in precedingparagraph 5.0 within three months from the date of issue of tariff order 2010-11

    indicating expected completion period in each case.

    5.0 Studies of RLA on important equipments at EHV sub-stations and taking action

    on the study report are vital matters particularly for aged machineries.

    WBSETCL is directed to furnish the highlights of the study report and action

    taken thereon in respect of areas (sub-stations) already covered, within two

    months from the issuance of tariff order 2010-11.

    5.1 WBSETCL is also directed to prepare and finalise future programme on such job

    (as mentioned in 6.0) in respect of areas not covered, with expected period of

    completion against each. This report is to be submitted to the Commission within

    30th November, 2010.

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    6.0 WBSETCL is directed to confirm whether real time display of gross generation

    and ex-bus generation of all the generating stations of the State are available at

    SLDC. If not, the details of default showing name of the plant, date of

    synchronization (not test synchronization) and date of commercial operation are

    to be furnished to the Commission within one month from the date of issue of

    tariff order 2010-11.

    7.0 The Commission hereby directs WBSETCL to intimate preparedness of SLDC for

    black start operation indicating actions taken on this issue along with awareness

    campaign upto 31.3.2010, and future similar programme also involving the state

    constituents in the year 2010-11.

    7.1 SLDC is to conduct periodic testing of the D.G. set installed at SLDC towards its

    satisfactory operation including auto change-over.

    7.2 The actions taken as stated in paragraphs 7.0 & 7.1 are to be intimated to the

    Commission by WBSETCL within three months from the date of issue of tariff

    order 2010-11.

    7.3 WBSETCL is also directed to ensure that test run of the above mentioned D.G.

    set as stated in paragraph 7.1 is conducted at SLDC twice a year. Results

    recorded thereon are to be submitted to the Commission within one month.

    8.0 WBSETCL is directed to establish new website exclusively for SLDC within 31st

    December, 2010. Infrastructure required for running the site will have to be

    made ready beforehands. Performance report of the website will have to be sent

    to the Commission within 31st March, 2011.

    9.0 WBSETCL shall henceforth show in the tariff application as well as in its

    application for APR, the amount of capital expenditure done during every

    financial year against which investment approval has been accorded as per

    regulation 2.8.1.4 of the West Bengal Electricity Regulatory Commission (Terms

    and Conditions of Tariff) Regulations, 2007, as mended and the actual

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    expenditure incurred up to end of that financial year along with completion date

    as per following table:

    Rs. in Lakh

    STATEMENT SHOWING APPROVED CAPITAL EXPENDITURE UPTO THE END OF 31ST MARCH OF THE YEARFOR WHICH APPLICATION FOR APR IS FURNISHED

    SlNo

    Approval

    obtained videCommissions

    Order andDate

    Cost

    approvedby the

    Commission

    Actual costincurred up tothe end of the

    financial yearfor which

    APR isfurnished asper auditedaccounts

    EstimatedCost of theResidual

    Work

    Total Cost of

    the work oncompletion

    (Actual /Projected)

    Whetherapproval forenhanced

    expenditure,if any, has

    beenobtainedfrom the

    Commission

    ApprovedTarget

    CompletionDate

    Projected /Actual Date

    ofCompletion

    1 2 3 4 5 6 = (4+5) 7 8 9

    Sd/- 29.07.2010 Sd/- 29.07.2010 Sd/- 29.07.2010

    (R. P. SAMADDAR) (PURNENDU GUPTA) (PRASADRANJAN RAY)(MEMBER) (MEMBER) (CHAIRPERSON)

    DATE: 29.07.2010