Petition for the determination of tariff / ATC of the 41 Nos. ISTL / system connecting two states (40 ISTS lines between Telangana and Andhra Pradesh and 1 ISTS line between Telangana and Karnataka) – EQ

Summary:

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**1. Parties Involved**
– **Petitioner:** Transmission Corporation of Telangana Limited (TSTRANSCO).
– **Respondents:** Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) and others, including **Karnataka Power Transmission Corporation Limited (KPTCL)** as Respondent No. 5.
– **Regulatory Body:** Central Electricity Regulatory Commission (CERC).

+– The petition seeks the determination of transmission tariff / Annual Transmission Charges for **41 Inter-State Transmission System (ISTS) lines** for the tariff period **FY 2024-25 to FY 2028-29**.
– **Asset Composition:**
– **40 ISTS lines** connecting **Telangana and Andhra Pradesh**.
– **1 ISTS line** connecting **Telangana and Karnataka**.
– **Basis for Tariff Determination:** The petition is filed in accordance with the **Commission’s order dated September 5, 2018, in Petition No. 7/SM/2017**, which likely established the framework for tariff determination for these specific assets.

**3. Hearing Summary**
– The matter was heard through a **virtual hearing**.
– The learned counsel for the Petitioner (TSTRANSCO) outlined the purpose of the petition as seeking tariff determination for the specified assets for the upcoming tariff period (2024-29).
– The counsel for **Respondent No. 5 (KPTCL)** accepted notice and requested liberty to file a reply.

**4. Commission’s Directions**
After hearing the parties, the Commission issued the following directions:

| Direction | Details |
| :— | :— |
| **Notice to Respondents** | Issue notice to all Respondent(s). |
| **Information Sought from Petitioner** | The Petitioner (TSTRANSCO) was directed to furnish the following information on an **affidavit within two weeks**, with an advance copy to all Respondents: <br><br> a) **Single Line Diagram** for all transmission lines.<br> b) **Latest Line Availability Certificate** for the transmission assets.<br> c) **Justification for ACE** claimed for Asset-9(b), Asset-26(B), and Asset-31(B), along with the relevant Regulations under which it has been claimed.<br> d) **IDC Computation Sheets** for each transmission asset, indicating drawals, repayments, interest rates, and the computation in Excel format with proper linkages.<br> e) **Date-wise interest rate statement** issued by the concerned bank / financial institution for IDC computation.<br> f) **Computation of Form-9C** for all transmission assets, indicating all deployed loans, along with the computation of the Weighted Average Rate of Interest in accordance with the **2024 Tariff Regulations**.<br> g) **Auditor’s Certificates** for cumulative depreciation and cumulative repayment of loans claimed in tariff up to **31.3.2024** for the transmission assets.<br> h) For the **MAT Rate / Effective Tax Rate** claimed for the 2024-29 tariff period, submit supporting documents for **FY 2023-24** (Income Tax Returns / Assessment Orders, if any) **in a sealed cover**. |
| **Next Hearing Date** | The matter was listed for further hearing on **May 14, 2026**. |

**5. Key Observations & Implications**
– **Pending Tariff Determination:** The petition is at an early stage. The Commission has not yet determined the tariff but has sought extensive additional information to enable a prudence check.
– **Focus on Detailed Documentation:** The Commission’s directions indicate a thorough scrutiny of the claimed tariff components, particularly:
– **ACE (Additional Capital Expenditure):** Specific justification required for certain assets.
– **IDC (Interest During Construction):** Detailed computation with bank statements and Excel sheets.
– **WAROI (Weighted Average Rate of Interest):** To be computed as per the 2024 Tariff Regulations using Form-9C.
– **Tax Rate:** Supporting tax documents to be submitted in a sealed cover for verification.
– **Multiple Stakeholders:** The presence of APTRANSCO and KPTCL as respondents highlights that the tariff for these interstate lines will be shared among the beneficiary states.
– **Regulatory Compliance:** The reference to the **2024 Tariff Regulations** (as opposed to the 2019 Regulations) confirms that the tariff for this period will be governed by the new regulatory framework.

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