Petition for Truing up and determination of transmission tariff of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for SPTL – EQ

Summary:

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### Key Directives and Information Required from SPTL

#### 1. **Compliance and Procedural Directives**
– **Amended Petition:** SPTL must file an amended petition aligning with a consequential order dated 29.12.2025 in Petition No. 108/TT/2016, which itself was based on an APTEL judgment dated 25.3.2025.
– **Notice to Respondents:** After filing the amended petition, notice must be issued to the respondents, allowing them two weeks to file replies. SPTL will then have one week to file rejoinders.

#### 2. **Scrutiny of Additional Capital Expenditure (ACE) for 2019-24**
The Commission is scrutinizing specific ACE claims made by SPTL for the 2019-24 period, requiring strong justification and evidence:

– **Stores Establishment:** SPTL has claimed ACE for establishing stores. The Commission notes that a separate petition (No. 267/MP/2024) is already pending for in-principle approval of this, seeking clarification on why it’s being claimed here.
– **Civil Works:** Clarification is needed on why expenses under “Civil works” are being claimed as a separate ACE under specific regulations, implying they might typically be covered under broader heads.
– **Professional & Legal Charges:** The Commission has pointed out that these charges do not fall within the scope of “Additional Capital Expenditure” as per the 2019 Tariff Regulations. SPTL must clarify the basis for this claim.
– **Right of Way (RoW) Compensation:** SPTL must provide supporting documents, court orders, and payment details for compensation claims related to Right of Way.
– **IT Equipment Replacement:** A claim of ₹39.80 lakhs for replacing IT equipment due to “technological obsolescence” requires a recommendation from the Original Equipment Manufacturer (OEM).
– **Miscellaneous Assets:** A significant claim of ₹126.28 lakhs under “Miscellaneous assets” needs to be broken down with details and supporting documents for each asset.
– **Capital Spares:** Details and supporting documents for capital spares claimed during this period are required.
– **APTEL Appeal:** The Commission wants an update on the status of Appeal No. 297 of 2023, which SPTL has pending before APTEL.

#### 3. **Scrutiny of Projected ACE for 2024-29**
For the future tariff period, the Commission is questioning the justification and basis for projected capital expenses:

– **Emergency Restoration System:** A large projection of **₹3217.70 lakhs** for an “Emergency Restoration system” needs to be justified with a clear basis for the estimated cost and supporting documents.
– **Pile Foundation & Protection Works:** A projection of **₹1240.01 lakhs** for “pile foundation and protection of river crossing and hilly towers” is being questioned. The Commission notes these appear to be rectification works, which may not be covered under the regulation for asset replacement.
– **RPC/OCC Recommendation:** For the above pile foundation works, the Commission wants to know if the expense has been recommended by any Regional Power Committee (RPC) or Operating Committee (OCC), given they are linked to operational issues.
– **Additional Earthing System:** A projection for “installation of additional earthing system” requires clarification under the relevant regulation, along with a cost-benefit analysis to justify the investment.

#### 4. **Other Financial and Operational Information**
– **Liability Flow Statement:** A statement showing the flow of liabilities for both the 2019-24 and 2024-29 periods is required.
– **Security Expenses (Audited):** SPTL must provide audited, year-wise actual security expenses for the 2019-24 period, including cost breakup and manpower deployment details. This was originally directed in an order dated 18.7.2023.
– **Future Security Plan:** Details of the security assessment and planned deployment for the 2024-29 period.
– **Capital Spares for 2024-29:** Details of capital spares projected for the 2024-29 period.
– **Revised Tariff Forms:** SPTL must submit revised tariff forms for the true-up (2019-24) and determination (2024-29), aligning with the revised capital cost as per the Commission’s order in Petition No. 108/TT/2016.
– **Interest Rate Proof:** Supporting documents (like loan agreements, bank certificates) to verify the Weighted Average Rate of Interest claimed in Form-9C for the 2019-24 period.

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