Petition for Truing up and determination of the transmission tariff for Srinagar-Baramwari line to Khandukhal (Srinagar) Sub-station] under UITP Scheme in the Northern Region – EQ

Summary:

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**Objective:** This is a regulatory proceeding before the CERC where PTCUL is seeking approval for the transmission tariff of a specific 220 kV line. The tariff determines the revenue PTCUL can earn from this asset, which directly impacts its financial health and the transmission charges paid by its customers and other stakeholders.

**Key Business Implications:**

1. **Revenue Determination for PTCUL:** The core of the proceeding is to finalize the capital cost of the transmission asset, which is the foundation for calculating the tariff PTCUL can charge for the 2024-29 period. A higher approved cost leads to higher potential revenue.
2. **Impact of Data Accuracy:** The case highlights the critical importance of accurate financial submissions to the regulator. PTCUL had to revise its submissions due to an inadvertent error (including forest clearance costs in the wrong head), demonstrating that regulatory scrutiny is intense and errors can delay approval.
3. **Regulatory Compliance:** PTCUL is required to provide detailed financial documentation, including a reconciled Liability Flow Statement and specific loan documents from PFC. Failure to provide these on affidavit could delay the tariff order and, consequently, the realization of revenue.
4. **Stakeholder Involvement:** Major industry players like Power Grid Corporation of India Limited (PGCIL) are respondents in this case, meaning the outcome of the tariff determination affects the charges they pay for using the inter-state transmission system (ISTS).

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### Detailed Technical Summary

This document is a “Record of Proceedings” (RoP), which is an official summary of what transpired during a court hearing.

#### 1. Background and Subject
– The petition concerns the determination of tariff for the 2024-29 period for the 220 kV Srinagar-Baramwari transmission line.
– This line serves as the Point of Inter-connection for the Singoli-Bhatwari Hydro Electric Project (HEP) to the grid and is considered a deemed Inter-State Transmission System (ISTS) line under the UITP Scheme.

#### 2. Key Submissions by the Petitioner (PTCUL)
During the hearing, PTCUL’s counsel made two primary submissions to correct and update their petition:
– **Correction of Capital Cost:** PTCUL admitted to an error where expenses related to forest clearance and land compensation were inadvertently included under “IEDC” (Incidental Expenditure During Construction). They have now filed revised Auditor’s Certificates and tariff forms to correct this, ensuring the capital cost is accurately represented.
– **Re-apportionment of Costs:** Following a previous CERC directive (dated 20.1.2024 in Petition No. 478/TT/2020), PTCUL has re-apportioned the capital cost between the main transmission asset and balance work on a pro-rata basis. This ensures that only the costs attributable to the asset in question are considered for its tariff.

#### 3. Directives from the Commission (CERC)
The Commission did not grant immediate approval. Instead, it issued the following directions:

– **To Respondents (PGCIL & Others):** They were given a final opportunity of **two weeks** to file any remaining replies or objections to PTCUL’s revised submission.
– **To Petitioner (PTCUL):** PTCUL was directed to file additional information on affidavit within **two weeks**:
1. To reconcile the “Liability Flow Statement” with the “ACE” (Allowable Capital Expenditure) claimed for the previous 2019-24 tariff period. This ensures consistency in financial reporting.
2. To submit the original PFC (Power Finance Corporation) loan document that details the interest rates used in the IDC (Interest During Construction) calculation.

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