Petition for Truing up and determination of transmission tariff under “Transmission System associated with CSA with CEPL and IBPL and IBPL LTOA Generation Projects in Tuticorin Area-Part-A” – EQ

Summary:

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### **Key Directions by CERC**

| Direction | Details |
|———–|———|
| **Filing of rejoinders** | PGCIL to file rejoinder to MPPMCL replies in Petitions 749 & 523 within 1 week |
| **Filing of replies** | All respondents (including TNPDL in Petition 490) to file replies within 1 week |
| **Information submission** | PGCIL to submit detailed information on affidavit within 2 weeks (specific to each petition – see breakdown below) |
| **Matter reserved for order** | After compliance, the Commission reserved all matters for order |

### **Specific Information Requests by Petition**

| Petition | Information Required |
|———-|———————-|
| **606/TT/2025** | Detailed computation + supporting documents for Arbitral Award Cost during FY 2024-25 |
| **415/TT/2025** | Accumulated depreciation (IT & PLCC equipment) as on 1.4.2019; item-wise ACE & De-cap for 2019-24 & 2024-29; proof of payments for ACE; revised liability flow statement |
| **749/TT/2025** | Liability Flow Statement (excel format) |
| **692/TT/2025** | Liability Flow Statement; Form-5 & Form-13; revised liability flow statement with LD recovery |
| **490/TT/2025** | Justification for ACE spill-over; item-wise ACE & De-cap for both tariff periods; proof of payments for ACE |
| **612/TT/2025** | FR approved cost; item-wise ACE & De-cap for both periods; proof of payments |
| **523/TT/2025** | Basis for estimated ACE cost + technical justification & cost-benefit analysis; accumulated depreciation (IT & PLCC); ACE variation analysis; Form 9C; interest rate calculations; break-up of ACE under Reg 25(1)(a) vs 25(1)(d); documentary evidence for arbitration compensation; item-wise ACE & De-cap |

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## **Key Business Points**

### 1. **PGCIL Seeking Tariff Truing-Up for Multiple Assets**
– **Truing-up** means adjusting previously approved tariff based on **actual vs projected** capital expenditure (CAPEX), O&M, and other costs.
– This is a **routine regulatory exercise** but critical for PGCIL’s revenue recovery.

### 2. **Two Tariff Periods Involved**
– **2019–24:** Truing-up of past tariffs – PGCIL may claim additional revenue if actual costs exceeded approved estimates, or may have to refund if lower.
– **2024–29:** Determination of future tariffs – will impact transmission charges payable by state discoms and other beneficiaries.

### 3. **Additional Capital Expenditure (ACE) is a Key Issue**
– ACE refers to **capital investments made after the original project cost approval** (e.g., replacements, upgrades, reconductoring).
– CERC Regulations (2019 & 2024) allow ACE recovery under certain conditions (e.g., Regulation 25).
– CERC is demanding **item-wise, equipment-wise, year-wise break-up** of ACE and De-cap (decommissioned assets) – indicating close scrutiny.

### 4. **Liability Flow Statements & Liquidated Damages (LD)**
– Multiple petitions require **liability flow statements** showing original liability, LD recovered, and net liability.
– This suggests CERC is verifying whether PGCIL has properly accounted for **delays and penalties** before claiming tariff.

### 5. **State Discoms as Respondents**
– Major respondents include **TANGEDCO/TNPDL (Tamil Nadu)** , **UPPCL (Uttar Pradesh)** , **MPPMCL (Madhya Pradesh)** .
– These discoms will bear the transmission charges – hence they have incentive to contest PGCIL’s claims.

### 6. **Technical Justification Required for ACE**
– Petition 523 specifically requires **technical justification and cost-benefit analysis** for ACE – a high bar.
– PGCIL must prove that the additional expenditure was **prudent and beneficial** to users.

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