Petition for Truing-up and determination of transmission tariff for Kahalgaon Transmission System in the Eastern Region – EQ

Summary:

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The directive was issued during a hearing on **March 19, 2026**, in **Petition No. 515/TT/2025**, which seeks approval for transmission tariff true-up for the **2019–24 period** and determination for the **2024–29 period**.

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### Case Details

| Parameter | Details |
|———–|———|
| **Petition No.** | 515/TT/2025 |
| **Petitioner** | Power Grid Corporation of India Limited (PGCIL) |
| **Respondents** | Bihar State Power (Holding) Company Limited and 5 others |
| **Subject** | True-up of transmission tariff for 2019–24 period and determination for 2024–29 period for assets under “400 kV Kahalgaon Transmission System” in Eastern Region |
| **Date of Hearing** | March 19, 2026 |
| **Next Hearing** | May 14, 2026 at 2:30 PM |
| **Coram** | Shri Ramesh Babu V., Member; Shri Harish Dudani, Member |

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### Key Developments

#### De-capitalization of ICTs
– PGCIL informed the Commission that **two 315 MVA ICTs (Interconnecting Transformers) at Maithon Sub-station** have been **de-capitalized due to ageing**.
– The de-capitalization was approved by the **Eastern Regional Power Committee (ERPC)** on **November 27, 2024**.
– PGCIL has submitted an affidavit dated **February 6, 2026**, regarding the de-capitalization.
– These ICTs will be **excluded from the capital cost claim** in the petition.

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### Commission’s Directives

Following the March 19, 2026 hearing, the CERC issued the following directives:

| Directive | Details | Timeline |
|———–|———|———-|
| **Submit Form-6** | Form-6 filings for **2014–19, 2019–24, and 2024–29 tariff periods** | Within **2 weeks** |
| **Justify ACE Spill-Over** | Provide justification for spill-over of approved ACE from **2019–24 to 2024–29 tariff period** | Within **2 weeks** |
| **Respondents to File Replies** | Respondents may file replies to the petition, if any, with copy to Petitioner | Within **2 weeks** |
| **Petitioner to File Rejoinder** | PGCIL may file rejoinder after receiving replies | Within **1 week** thereafter |

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### Key Observations

– **No Respondent Replies:** The Commission noted that none of the Respondents had filed replies despite receiving notice.
– **Virtual Hearing:** The matter was conducted through virtual hearing proceedings.
– **De-capitalization Impact:** The removal of two aged ICTs from the asset base will affect the capital cost computation and, consequently, the transmission tariff.

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### Business Points

1. **Asset De-capitalization Affects Tariff:** The de-capitalization of two 315 MVA ICTs at Maithon substation, approved by ERPC, removes these assets from the capital cost claim. This will reduce the tariff base for the 2024–29 period compared to earlier projections.

2. **Form-6 Submission Critical:** Form-6 is the prescribed format for furnishing details of transmission assets and their actual capital expenditure. The Commission’s request for Form-6 across **three tariff periods (2014–19, 2019–24, and 2024–29)** indicates a comprehensive review of capital expenditure history and asset capitalization.

3. **ACE Spill-Over Scrutiny:** The directive to justify spill-over of approved Additional Capital Expenditure (ACE) from the 2019–24 period into the 2024–29 period suggests the Commission is closely examining whether capital expenditures approved in the previous tariff period were actually incurred and whether they should continue to be part of the rate base.

4. **Two-Week Compliance Timeline:** PGCIL has **two weeks** from March 19, 2026, to submit both the Form-6 filings and the ACE spill-over justification, ensuring the matter is ready for the next hearing on May 14, 2026.

5. **Respondent Participation Opportunity:** The Commission has explicitly allowed Respondents two weeks to file replies, signaling that stakeholder input will be considered before final tariff determination.

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