In the matter of CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for Truing up and determination of transmission tariff for “Combined Asset under System Strengthening XIX scheme” in the Southern Region – EQ
Summary:
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#### **1. Subject of the Petition**
– **Petitioner:** Power Grid Corporation of India Limited (PGCL).
– **Asset:** Combined Asset under **”System Strengthening XIX Scheme”** in the **Southern Region**, comprising:
1. **LILO of existing Kolar–Sriperumbudur 400 kV line at Thiruvalam.**
2. **Kurnool–Thiruvalam 765 kV D/C line** (charged at 400 kV).
3. **Upgradation of Thiruvalam substation to 765/400 kV** with transformers.
4. **Associated bays and reactors.**
– **Purpose:**
– Truing up of transmission tariff for **2019–24** under the **2019 Tariff Regulations**.
– Determination of transmission tariff for **2024–29** under the **2024 Tariff Regulations**.
#### **2. Key Determinations**
**A. Trued-Up Tariffs for 2019–24:**
– **Approved Annual Fixed Charges (AFC)** (in ₹ lakh):
– 2019–20: **29,791.50**
– 2020–21: **28,863.17**
– 2021–22: **28,161.79**
– 2022–23: **27,562.73**
– 2023–24: **26,955.09**
– **Components allowed:**
– **Depreciation:** As per weighted average rate.
– **Interest on Loan:** Based on actual loan portfolio.
– **Return on Equity:** Grossed up using MAT rate of **17.472%**.
– **O&M Expenses:** As per normative rates.
– **Interest on Working Capital:** Calculated as per regulations.
**B. Determined Tariffs for 2024–29:**
– **Approved AFC** (in ₹ lakh):
– 2024–25: **25,260.81**
– 2025–26: **24,494.29**
– 2026–27: **23,710.39**
– 2027–28: **15,884.71**
– 2028–29: **15,804.68**
– **Note:** Lower charges in 2027–28 and 2028–29 due to reduced depreciation after asset life completion.
#### **3. Key Regulatory Approvals**
– **Capital Cost:** ₹182,824.41 lakh as of March 31, 2024.
– **Additional Capital Expenditure (ACE):** ₹1,119.13 lakh allowed for 2019–24; **no ACE claimed** for 2024–29.
– **Debt-Equity Ratio:** Maintained at **70:30**.
– **Return on Equity:** Base rate of **15.50%**, grossed up to **18.78%** using MAT rate.
– **O&M Expenses:** Allowed as per normative rates under 2024 Regulations.
– **Working Capital Interest:** Rate of **11.90%** applied.
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