Petition of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for “POWERGRID works associated with additional System Strengthening Scheme for Chhattisgarh IPPs (Part-B)” in the Western Region – EQ

Summary:

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## **1. Case Overview**

| **Parameter** | **Details** |
| — | — |
| **Petitioner** | Power Grid Corporation of India Limited (PGCIL) |
| **Respondents** | Madhya Pradesh Power Management Company Limited (MPPMCL) and others (including Raipur-Rajnandgaon-Warora Transmission Limited – RRWTL) |
| **Subject** | Approval for truing up of transmission tariff for 2014–19 period (under Tariff Regulations 2014) and determination of tariff for 2019–24 period (under Tariff Regulations 2019) |
| **Assets Covered** | 2 nos. of **765 kV line bays** at **765/400 kV Raipur Pooling Station (POWERGRID)** for Raipur PS (POWERGRID) – Rajnandgaon (TBCB) 765 kV D/C line |
| **Scheme Name** | “POWERGRID works associated with additional System Strengthening Scheme for Chhattisgarh IPPs (Part-B)” – Western Region |
| **Hearing Date** | 19 March 2026 |
| **Status** | **Reserved for order** after hearing arguments |

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## **2. Key Business & Regulatory Implications**

### **2.1 Dual Tariff Periods Involved**
– **2014–19 period**: Truing up of tariff under **CERC Tariff Regulations 2014** – meaning adjustment of actual vs. allowed capital expenditure, return on equity, interest, O&M, etc.
– **2019–24 period**: Determination of fresh tariff under **CERC Tariff Regulations 2019** for the same assets.

### **2.2 Parties & Interests**
– **PGCIL** (Petitioner): Owns and operates the Raipur pooling station – seeks tariff approval to recover revenue.
– **RRWTL** (Respondent No. 12): A **TBCB (Tariff-Based Competitive Bidding)** transmission company – likely the operator of the Rajnandgaon line. Its revenue/cost recovery may be impacted by how PGCIL’s bay charges are allocated.
– **State DISCOMs (MPPMCL, CSPDCL)**: Concerned about increase in transmission charges passed through to power purchase cost.

### **2.3 Arguments & Next Steps**
– Both PGCIL and RRWTL concluded oral arguments and have already filed written submissions.
– CERC directed them to file **short written submissions, if any, within one week**.
– Matter then **reserved for order** – final ruling awaited.

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## **3. Strategic Business Takeaways**

| **Aspect** | **Impact / Insight** |
| — | — |
| **Transmission tariff certainty for past periods** | Truing up under 2014 regulations resolves legacy regulatory asset / over-recovery issues – important for PGCIL’s booked income. |
| **New tariff under 2019 regulations** | Sets benchmark for similar line bay expansions – affects DISCOM payouts and project financing for future TBCB schemes. |
| **TBCB vs. Regulated Tariff interface** | RRWTL’s involvement indicates how charges for common assets (pooling station bays) are shared between PGCIL (regulated) and a private TBCB entity – key precedent for hybrid transmission models. |
| **Chhattisgarh IPP system strengthening** | Underlying scheme supports evacuation from independent power producers (IPPs) in Chhattisgarh – impacts regional power flow and grid reliability. |
| **Time lag** | Petition filed in 2021, hearing in 2026 – shows regulatory delays; interim tariff/cash flow management critical for transmission utilities. |

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## **4. Recommended Action for Stakeholders**

– **For PGCIL**:
– Ensure compliance with CERC’s direction for short submissions.
– Use this order to clarify treatment of line bays under hybrid regulated + TBCB models.

– **For RRWTL & other TBCB entities**:
– Monitor how bay tariff is allocated – affects their open access and transmission charges to users.

– **For DISCOMs (MPPMCL, CSPDCL, others)**:
– Challenge any inefficient capital expenditure or double-recovery between PGCIL and RRWTL.

– **For IPPs in Chhattisgarh**:
– Lower transmission tariff benefits their power offtake competitiveness.

– **For investors in transmission assets**:
– The case highlights **regulatory risk** (long resolution time) but also **certainty once order is passed** under established CERC norms.

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