Petition for the determination of RRVPN-owned transmission lines/system connecting with the other States and inter-State transmission of electricity – EQ

Summary:

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### 1. Key Regulatory Context

– **Forum:** Central Electricity Regulatory Commission (CERC)
– **Petition No.:** 820/TT/2025
– **Petitioner:** Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) – the state transmission utility (STU) of Rajasthan.
– **Respondents:** Power Grid Corporation of India Limited (PGCIL), Uttar Pradesh Power Corporation Limited (UPPCL), and 12 others (likely other state utilities, regional load despatch centers, and the Central Transmission Utility).

– **Purpose:** Determination of tariff for RRVPNL-owned transmission assets that are part of the inter-state transmission system (ISTS). Inclusion in the **POC transmission charges mechanism** is critical, as it allows the assets to be covered under the central tariff framework, with charges pooled and allocated to beneficiaries across regions.

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### 2. Nature of the Assets & Business Implication

| Asset Category | Description | Business Relevance |
| :— | :— | :— |
| **RRVPNL-owned transmission lines/system** | Transmission assets owned by the Rajasthan state utility that connect with other states. | These assets facilitate inter-state power flow, particularly from Rajasthan’s generation-rich zones (renewable energy) to neighboring states. |
| **Intervening transmission lines** | Lines that are incidental to inter-state transmission but may not be part of the central transmission utility (CTU) network. | Inclusion in POC charges allows RRVPNL to recover costs from a broader pool of beneficiaries, not just Rajasthan. |

**Key Business Implications:**
– **Revenue for RRVPNL:** Tariff determination under CERC regulations establishes the annual transmission charges that RRVPNL can recover. Inclusion in the POC mechanism ensures that costs are shared across multiple states that benefit from the transmission infrastructure.
– **Cost for Beneficiaries:** For respondents like UPPCL and other state utilities, the outcome determines their share of transmission charges for power flowing through Rajasthan’s network.
– **Renewable Energy Integration:** Rajasthan is a major renewable energy hub. The tariff determination for these transmission assets supports the evacuation of solar and wind power to other states, aligning with national renewable energy targets.

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### 3. Procedural Status & Key Developments

| Date of Hearing | 19th March 2026 |
| :— | :— |
| **Coram** | Chairperson and three Members of CERC |
| **Petitioner’s Counsel** | Appeared and confirmed that NRPC (Northern Regional Power Committee), NRLDC (Northern Regional Load Despatch Centre), and CTUIL (Central Transmission Utility of India Limited) have been impleaded as respondents as per prior directions. |
| **Respondents’ Status** | **None of the 14 respondents filed replies** despite notices being issued. |
| **Commission’s Directions** | |
| – **To NRLDC** | File an affidavit within two weeks detailing: (a) installation details of interface meters for the 13 transmission assets, and whether meters exist on both ends; (b) drawal patterns recorded for energy treatment. |
| – **To All Respondents** | Granted a **final one-week opportunity** to file replies. |
| – **To Petitioner** | May file rejoinder within one week of receiving replies. |
| **Final Disposition** | Subject to compliance, the matter is **reserved for order**. |

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### 4. Key Business & Strategic Points

1. **Metering Data is Critical:** The Commission’s specific direction to NRLDC regarding interface meters is highly significant. The **installation of meters at both ends** and the **drawal patterns** directly impact:
– **Energy accounting:** Determining how much power flows through each asset.
– **Transmission charge allocation:** The POC mechanism relies on accurate metering to allocate charges based on actual usage patterns.
– **Asset utilization:** Under-utilized assets may face lower allowed returns.

NRLDC’s affidavit will be a key input for the Commission’s final order.

2. **Lack of Respondent Participation:** None of the 14 respondents (including PGCIL and major state utilities) filed replies despite notices. This is unusual for a tariff petition involving multiple beneficiaries. Possible reasons include:
– Agreement with the petitioner’s claims.
– Resource constraints or oversight.
– Strategic non-participation to avoid delays.

However, the Commission has now granted a **final one-week opportunity**. Non-compliance after this may result in the Commission proceeding with the tariff determination solely on RRVPNL’s submissions.

3. **Final Opportunity Granted:** The Commission explicitly stated that this is the **”last opportunity”** for respondents to file replies. This signals that further delays will not be entertained, and the matter will be decided on the available record.

4. **Reserved for Order:** With the matter reserved for order, the Commission will now deliberate and issue a formal tariff order after receiving the NRLDC affidavit and any last-minute respondent replies. This order will determine:
– The capital cost base for the 13 transmission assets.
– The allowable return on equity (ROE), depreciation, O&M expenses, and interest on loans.
– The inclusion of these assets in the POC transmission charges pool.

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