Petition for Truing up and determination of transmission tariff for the Combined Asset in “Eastern Region Strengthening Scheme IX Project” in the Eastern Region – EQ

Summary:

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### Case Details

| Parameter | Details |
|———–|———|
| **Petition No.** | 355/TT/2025 |
| **Petitioner** | Power Grid Corporation of India Limited (PGCIL) |
| **Respondents** | Bihar State Power (Holding) Company Limited (BSPHCL) and 5 others |
| **Subject** | True-up of transmission tariff for 2019–24 period and determination for 2024–29 period for the Combined Asset in “Eastern Region Strengthening Scheme IX Project” |
| **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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### Background

The petition was originally reserved on **September 30, 2025**. However, the Commission determined that certain information regarding **Freehold Land** was required for deciding the **Additional Capital Expenditure (ACE)** component of the tariff, prompting the matter to be re-listed for hearing.

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### Commission’s Directives

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

| Directive | Details |
|———–|———|
| **Reconcile Freehold Land (₹74.11 lakh)** | PGCIL must reconcile this amount with reference to available supporting documents |
| **Furnish Justification (₹39.23 lakh)** | PGCIL must provide justification and supporting documents for freehold land corresponding to this amount |
| **Respondents to File Replies** | Respondents may file their respective replies within **two weeks**, with a copy to the Petitioner |
| **Petitioner to File Rejoinder** | PGCIL may file its rejoinder within **one week** after receiving replies |

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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.
– **Pending Tariff Determination:** The petition seeks both a true-up for the previous tariff period (2019–24) and tariff determination for the current period (2024–29).

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### Business Points

1. **Tariff Determination Delayed:** The original reservation of the matter on September 30, 2025, was deferred due to incomplete documentation on freehold land costs, highlighting the criticality of accurate asset capitalization records in tariff proceedings.

2. **Focus on Freehold Land Costs:** The Commission’s scrutiny of ₹1.13 crore in freehold land costs (₹74.11 lakh + ₹39.23 lakh) indicates a detailed examination of capital expenditure components, particularly for assets under the 2019–24 tariff period.

3. **Additional Capital Expenditure (ACE) Scrutiny:** The requirement for land cost documentation is specifically tied to determining ACE, which forms a key component of the transmission tariff.

4. **Compliance Deadline:** PGCIL must submit reconciled and documented land cost details within the timelines prescribed by the Commission to ensure the petition progresses to the next hearing on May 14, 2026.

5. **Respondent Participation:** 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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