Petition for the determination of transmission tariff for Establishment of Sub-station at Kurnool-III under “Transmission System for Kurnool Wind Energy Zone / Solar Energy Zone (AP)- Part-A & Part-B” in the Southern Region – EQ
Summary:
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### **1. Basic Case Information**
* **Petition No.:** 877/TT/2025
* **Date of Hearing:** December 3, 2025
* **Coram (Bench):** Shri Jishnu Barua (Chairperson), Shri Ramesh Babu V., Shri Harish Dudani, Shri Ravinder Singh Dhillon (Members)
* **Petitioner:** **Power Grid Corporation of India Limited (PGCIL)** – The central transmission utility executing the project.
* **Key Respondents:** 15 entities, primarily beneficiary state utilities like **Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO)** and the **Central Transmission Utility of India Limited (CTUIL)**. Only CTUIL was present.
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### **2. Subject Matter of the Petition**
PGCIL has filed a petition for the **determination of the transmission tariff** for a specific, large-scale transmission project for the **tariff period 2024-29**.
* **Project:** “Establishment of 765/400/220 kV Sub-station at Kurnool-III, Extension of 765 kV Kurnool (New) D/C Line.”
* **Purpose:** This is part of the larger **”Transmission System for Kurnool Wind Energy Zone / Solar Energy Zone (AP)- Part-A & Part-B”** in the Southern Region.
* **Core Ask:** PGCIL is seeking CERC’s approval to fix the annual revenue requirement and per-unit tariff it can charge for using this transmission infrastructure, which is critical for evacuating renewable energy.
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### **3. Proceedings & Key Issues Raised**
* **Hearing Format:** Virtual hearing.
* **Attendance:** Only PGCIL (Petitioner) and CTUIL (Respondent No. 15) were present. Other state utility respondents were absent despite notice.
* **PGCIL’s Submission:** Simply stated the petition’s purpose (tariff determination for 2024-29).
**The Commission did not delve into merits but identified significant information gaps and issued specific directions to both PGCIL and CTUIL to file detailed affidavits.**
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### **4. Commission’s Detailed Directions**
#### **A. To CTUIL (Within 2 Weeks):**
1. **Scheme Classification:** Confirm if this transmission system is part of the **Assured Transmission Service (ATS)** or **Collective Transmission Service (CTS)** scheme. This determines the tariff sharing mechanism.
2. **RE Generator Liability (if CTS):** If CTS, clarify whether Renewable Energy (RE) generators must pay charges for any mismatch between their generation and the Commercial Operation Date (COD) of this transmission system.
3. **Generator Connectivity Data:** Provide a list of RE generators that have applied for/granted connectivity for the **additional 4.5 GW RE capacity** this scheme is meant to integrate. Include their connectivity start dates.
4. **Asset Interdependency:** Clarify if the transmission assets (substation) can be functional without the commissioning of the associated **765 kV Kurnool-III PS – Maheswaram (PG) line**.
5. **Bay-Generator Mapping:** For the **26 Nos. of 220 kV line bays** covered, confirm which RE generators they are associated with and their connectivity dates.
6. **Generation Commissioning Status:** Provide the current commissioning status of the RE generation projects meant to use this transmission system.
#### **B. To PGCIL (Within 2 Weeks):**
1. **Cost Mapping:** Map the transmission assets/costs as per the **Investment Approval (IA)** against the Ministry of Power’s (MoP) Office Memorandum dated 22.02.2023 (likely on cost norms).
2. **Capital Cost Justification:** Justify the capital cost being claimed in comparison to the **awarded cost** mentioned in the **Letter of Award (LoA)**.
3. **Complete Form-5:** Submit a complete **Form-5** (a standard form for project cost and technical details) with estimated cost and quantity, which was missing in the original submission.
4. **Project Commissioning Details:** Confirm the commissioning status and provide **CODs of individual elements** approved under the IA dated 07.03.2023.
5. **Form-12 Submission:** Submit **Form-12**, which details the transmission assets for tariff computation.
6. **Cost Reconciliation:** Reconcile the **Plant & Machinery (P&M) Cost** mentioned in the Auditor’s Certificate with the details in the complete Form-5.
#### **C. General Procedural Directions:**
* **Notices:** Issue fresh notices to all absent Respondents.
* **Reply Schedule:** Respondents get **2 weeks** to file replies; PGCIL gets **1 week** thereafter to file a rejoinder.
* **Next Hearing:** The case is adjourned to **January 15, 2026**.
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