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Petition for the determination of tariff for AEGCL connecting with other States and intervening transmission lines incidental to inter-State transmission of electricity – EQ

Petition for the determination of tariff for AEGCL connecting with other States and intervening transmission lines incidental to inter-State transmission of electricity – EQ

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Summary:

## Detailed Business & Regulatory Summary – CERC ROP (AEGCL Transmission Tariff)

* **Regulatory Authority**

* The proceedings were conducted before the **Central Electricity Regulatory Commission (CERC), New Delhi**, India’s apex regulator for inter-State transmission and tariff matters.

* **Petitions Covered**

* **Petition No. 285/TT/2023**

* Tariff determination for **FY 2014–15 to FY 2018–19**.
* **Petition No. 287/TT/2023**

* Tariff determination for **FY 2019–20 to FY 2023–24**.
* Both petitions relate to **AEGCL-owned transmission lines/systems** connected with other States and **intervening transmission lines** used for inter-State electricity transmission.

* **Commercial Objective**

* Inclusion of AEGCL’s eligible transmission assets into the **Point of Connection (PoC) transmission charges mechanism**.
* This inclusion would enable **cost recovery through national transmission charges**, rather than limiting recovery to intra-State mechanisms.

* **Respondents**

* **Power Grid Corporation of India Limited (PGCIL)** and six other respondents.
* No representatives appeared on behalf of the respondents during the hearing, despite due notice.

* **Submissions by the Petitioner**

* AEGCL confirmed that:

* Detailed **capital cost data** for the concerned transmission lines has been submitted.
* **Regional Power Committee (RPC) Certificates** confirming inter-State power flow on non-ISTS lines were placed on record.
* These documents were filed through an **affidavit dated 24 July 2024** in both petitions.
* The submissions aim to establish that the transmission lines qualify as **intervening transmission systems** eligible for PoC tariff treatment.

* **Regulatory Importance**

* RPC certification is a critical requirement for:

* Demonstrating actual inter-State power usage.
* Enabling non-ISTS assets to be treated as part of the **inter-State transmission framework**.
* Acceptance of these assets would set a precedent for **State-owned transmission utilities** seeking PoC recovery.

* **Commission’s Action**

* After hearing the petitioner’s representatives and noting the absence of respondents:

* **CERC reserved its order** in both petitions.
* No interim directions were issued at this stage.

* **Business & Financial Implications**

* A favourable order would allow AEGCL to:

* Recover transmission costs for nearly a **decade-long period (FY 2014–15 to FY 2023–24)**.
* Improve cash flows by accessing **PoC-based transmission revenue**.
* Reduce financial burden on Assam’s intra-State consumers.
* For the national grid:

* Inclusion supports **cost socialisation** of inter-State transmission infrastructure.

* **Sector-Level Significance**

* Reinforces the role of State transmission utilities in supporting inter-State power flows.
* Highlights regulatory reliance on **documented power flow evidence** rather than ownership alone.
* Signals that non-ISTS assets can be monetised under PoC if regulatory conditions are met.

* **Current Status**

* Matter is **awaiting final order** from CERC.
* Outcome will determine tariff approval and PoC inclusion for the relevant control periods.

For more information please see below link:

Anand Gupta Editor - EQ Int'l Media Network