In the matter of APERC for True-down of Transmission Business for 4th Control Period – EQ
Summary:
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## **1. APTRANSCO’s Claim**
APTRANSCO claimed a **true-down amount of ₹902.94 crore**, representing a **revenue surplus** over the approved Aggregate Revenue Requirement (ARR) for the 4th Control Period. Additionally, it claimed an **extra ₹156.81 crore** due to **depreciation accounting differences** between the **Companies Act** and **APERC Regulations**.
– **Total claimed by APTRANSCO:** **₹1,059.75 crore**
– This surplus was to be **reimbursed to DISCOMs** as per allocation ratios (APEPDCL: 36.22%, APSPDCL: 40.44%, APCPDCL: 23.34%).
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## **2. Stakeholder Objections**
Several stakeholders, including consumer advocates and research organizations, raised objections on:
– **Inflated financial projections** and **unfair regulatory practices**
– **Massive capital expenditure (CapEx) shortfall** – approved vs. actual asset creation
– **Unexplained overspending** in O&M despite under-capitalisation
– **Delayed project execution** and lack of transparency
– **Pension liability burden** passed to consumers
– **True-down timing issue** – surplus returned only at the end of the control period, not annually
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## **3. APTRANSCO’s Defense**
– Attributed shortfalls to **COVID-19 pandemic** (lockdowns, labour shortages)
– Argued that **non-completion of projects did not affect power supply**
– Defended **O&M increases** due to **pension trust contributions** and **pay revision**
– Corrected **typographical errors** in revenue figures
– Claimed **compliance with regulations** regarding tariff filings and website disclosures
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## **4. Commission’s Analysis and Decisions**
### **A. O&M Costs**
– **Approved normative O&M:** ₹4,253.27 crore
– **Actual O&M (audited):** ₹6,010.52 crore
– **Excess:** ₹1,757.25 crore
**Commission allowed:**
– **Pension trust deposits** of ₹1,472.27 crore (treated as uncontrollable)
– **Disallowed:** ₹449.67 crore (unexplained excess)
**Final approved O&M:** **₹5,725.52 crore**
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## **5. Commission’s Final Ruling**
– Petition **disposed of** with the above adjustments
– **True-down practice:** Commission noted it has introduced **annual true-up/true-down** in new regulations to avoid delay in passing benefits to consumers
– **Pension liability:** Treated as **uncontrollable**, but only actual trust deposits allowed
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## **6. Annexures**
– **Annexure-I:** List of objectors
– **Annexure-II:** APTRANSCO’s detailed filings
– **Annexure-III:** Commission’s detailed computations
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