Petition for Approval of tariff with other States in the CERC (Sharing of Inter-State Transmission Charges and Losses) (Terms and Conditions of Tariff) and (Conduct of Business) Regulations – EQ

Summary:

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### **Subject of Tariff Approval**
Five **natural inter-State transmission lines** owned by PTCUL that are incidental to inter-State transmission. Tariff approval is required for:
– Operation & Maintenance (O&M) expenses
– Inclusion in POC charges (so that users across states share the cost)

### **Hearing Details**
– **Date of Hearing:** 19 March 2026 (conducted via video conferencing)
– **Coram:** Chairperson and three Members of CERC
– **Petitioner’s Representative:** Shri Illa Chandra (PTCUL)

### **Directions Issued by CERC**

| Direction | Timeline |
|———–|———-|
| Implead NRPC, NRLDC, and CTUIL as respondents | Within 1 week |
| File revised memo of parties | Within 1 week |
| Issue notice to all respondents (including newly added) | Immediately |
| Respondents to file replies (with copy to petitioner) | Within 2 weeks |
| Petitioner to file rejoinder (if any) | Within 1 week after replies |
| Petitioner to submit on affidavit: (i) amended memo, (ii) single line diagram of transmission lines, (iii) purpose of construction | Within 2 weeks |
| Next hearing date | **14 May 2026** |

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## **Key Business Points**

### 1. **Tariff Approval for Inter-State Transmission Lines**
– PTCUL owns transmission lines that cross state boundaries (Uttarakhand to other states).
– These lines are **incidental to inter-State transmission**, so their cost must be recovered through **POC charges** (shared by all beneficiaries in the region).

### 2. **O&M Expenses for 2024–29 Tariff Period**
– The petition specifically seeks approval of **Operation & Maintenance expenses** – a key revenue component for PTCUL.
– Once approved, these costs will be included in the **inter-State transmission tariff** and recovered from users.

### 3. **Information Gaps to be Filled**
– CERC has asked for:
– **Single Line Diagram (SLD)** – to confirm network configuration
– **Purpose of construction** – to verify if lines are truly incidental to inter-State transmission
– Failure to provide satisfactory answers may lead to **rejection or modification** of tariff claim.

### 4. **Next Hearing on 14 May 2026**
– Final tariff approval will not occur before this date.
– Bidders/contractors relying on these tariffs for project viability should factor in regulatory uncertainty.

### 5. **Implications for Power Procurement & Bidding**
– If PTCUL’s transmission lines are not included in POC charges, **inter-State power procurement** for Uttarakhand may face **higher delivered costs**.
– Conversely, approval will make Uttarakhand-based generation (including renewable energy) more competitive in inter-State markets.

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