MYT PETITION FOR THIRD CONTROL PERIOD FY 2014-15 TO FY 2018-19 For Business Submitted to HIMACHAL PRADESH ELECTRICITY GULATORY COMMISSION, SHIMLA By HIMACHAL PRADESH STATE ELECTRICITY BOARD LIMITED, SHIMLA
ABBVIATIONS AND ACRONYM LIST Sr. No Abbreviations Descriptions 1. A&G Administrative and General 2. AC Auxiliary Consumption 3. APR Annual Performance Review 4. ARR Aggregate Revenue Requirement 5. AS Accounting Standard 6. CAGR Compound Annual Growth Rate 7. CAPEX Capital Expenditure 8. CERC Central Electricity Regulatory Commission 9. CGS Central Generating Station 10. CoS Cost of Supply/ Service 11. CPPs Captive Power Plants 12. Crs Crores 13. CWIP Capital Work in Progress 14. DF Distribution Franchisee 15. Discom Distribution Companies 16. DPS Delayed Payment Surcharge 17. DS Domestic Service 18. DSM Demand Side Management 19. DTC Distribution Transformer 20. EA/The Act The Electricity Act 2003 21. F&A Finance & Accounts 22. FY Financial Year 23. GFA Gross Fixed Assets 24. G.O. Government Order 25. GoI Government of India 26. GoHP Government of Himachal Pradesh 27. HP Himachal Pradesh 28. HR Human Resource 29. HRA House Rent Allowance 30. HT High Tension 31. HEP Hydro Electric Power 32. IPP Independent Power Producers 33. KV Kilo Volt 34. kva Kilo Volt Ampere 35. kvah Kilo Volt Ampere Hour 36. kw Kilo Watt 37. kwh Kilo Watt Hour 38. LF Load Factor 39. LT Low Tension 40. MD Maximum Demand 41. MOD Merit Order Despatch 42. MoP Ministry of Power 43. MOU Memorandum of Understanding 44. MU Million Units (Million kwh) 45. MVA Mega Volt Ampere 46. MW Mega Watt Feb 2014 Page 1
Sr. No Abbreviations Descriptions 47. MYT Multi Year Tariff 48. NEP National Electricity Policy 49. NTP National Tariff Policy 50. NTPC National Thermal Power Corporation 51. O&M Operation & Maintenance 52. PAF Plant Availability Factor 53. PF Provident Fund 54. PFC Power finance Corporation 55. PLF Plant Load Factor 56. PLR Prime Lending Rate 57. PPA Power Purchase Agreement 58. PSD Power Service Division 59. C Rural Electrification Corporation 60. R&M Repair and Maintenance 61. ROE Return on Equity 62. RPO Renewable Purchase Obligation 63. Rs Rupees 64. SBI State Bank of India 65. SLM Straight Line Method 66. SHR Station Heat Rate 67. T&D Transmission and Distribution 68. HPSEBL Himachal Pradesh State Electricity Board Limited 69. HPERC Himachal Pradesh Electricity Regulatory Commission 70. w.e.f With effect from 71. Y-o-Y Year on Year Feb 2014 Page 2
TABLE OF CONTENTS MYT Petition for 3 rd (FY 2014-15 to FY 2018-19), Business HPSEBL 1. INTRODUCTION... 7 1.1. ABOUT HPSEBL... 7 1.2. OBJECTIVE OF THE DOCUMENT... 7 2. OWN GENERATION DETAILS... 9 2.1. HISTORICAL GENERATION FROM OWN PLANTS... 9 2.2. GENERATION PROJECTIONS FROM OWN GENERATING STATIONS IN THE 3RD MYT PERIOD... 10 3. DETERMINATION OF ANNUAL FIXED CHARGES... 12 3.1. ANNUAL FIXED CHARGES FOR BHABA HEP... 13 3.2. ANNUAL FIXED CHARGES FOR CHABA HEP... 14 3.3. ANNUAL FIXED CHARGES FOR NOGLI HEP... 16 3.4. ANNUAL FIXED CHARGES FOR RONGTONG HEP... 17 3.5. ANNUAL FIXED CHARGES FOR RUKTI HEP... 18 3.6. ANNUAL FIXED CHARGES FOR ANDHRA HEP... 20 3.7. ANNUAL FIXED CHARGES FOR GIRI HEP... 21 3.8. ANNUAL FIXED CHARGES FOR BANER HEP... 23 3.9. ANNUAL FIXED CHARGES FOR BASSI HEP... 24 3.10. ANNUAL FIXED CHARGES FOR BINWA HEP... 26 3.11. ANNUAL FIXED CHARGES FOR BS CHAMBA HEP... 27 3.12. ANNUAL FIXED CHARGES FOR GAJ HEP... 28 3.13. ANNUAL FIXED CHARGES FOR LARJI HEP... 30 3.14. ANNUAL FIXED CHARGES FOR GHANVI II HEP... 31 3.15. TARIFFS APPROVED BY HPERC FOR 8 SMALL HEPS... 32 4. SPONSE TO COMMISSION S OBSERVATIONS... 34 5. PRAYER... 35 List of Tables Table 1: Past Years' till 2nd MYT period... 9 Table 2: restated energy availability of hydro plants...10 Table 3: 3rd MYT Period Projections for...11 Table 4: Calculation of WPI and CPI factors...12 Table 5: GFA details of Bhaba...13 Table 6: AFC for bhaba...14 Table 7: GFA Details of Chaba...15 Table 8: AFC for Chaba...15 Table 9: GFA Details of Nogli...16 Table 10: AFC for Nogli...16 Table 11: GFA Details of RongTong...18 Table 12: AFC for RongTong...18 Table 13: GFA Details for Rukti...19 Table 14: AFC for Rukti HEP...19 Table 15: GFA Details of Andhra...20 Table 16: AFC for Andhra...21 Table 17: GFA Details of Giri...22 Feb 2014 Page 3
Table 18: AFC for GIRI...22 Table 19: GFA Details of Baner...23 Table 20: AFC for Baner...23 Table 21: GFA Details of Bassi...25 Table 22: Outstanding loan details of Bassi...25 Table 23: AFC for Bassi...25 Table 24: GFA Details of Binwa...26 Table 25: AFC for Binwa...26 Table 26: GFA details for BS Chamba...27 Table 27: AFC for BS Chamba...28 Table 28: GFA Details of Gaj...29 Table 29: AFC of GAJ...29 Table 30: GFA Details of Larji...30 Table 31: Outstanding Loans of Larji...30 Table 32: AFC for Larji...31 Table 33: GFA Details of Ghanvi II...31 Table 34: Outstanding Loan Deails of Ghanvi II...32 Table 35: AFC for Ghanvi II...32 Table 36: Approved tariff for Small HEPs...32 Feb 2014 Page 4
BEFO THE HIMACHAL PRADESH ELECTRICITY GULATORY COMMISSION SHIMLA Filling No.. Case No. IN THE MATTER OF: Filing of the Aggregate Revenue Requirement (ARR) of own generation for the Third (FY 2014-15 to FY 2018-19) under Section 62, 64 and 86 of the Electricity Act, 2003 AND IN THE MATTER OF Himachal Pradesh State Electricity Board Limited (hereinafter referred to as "HPSEBL" or "The HPSEBL") Vidyut Bhawan Shimla 171004 - Applicant AFFIDAVIT I, Son of Shri aged about XX years, Resident of, working as, do hereby solemnly affirm and declare that I have gone through the contents of accompanying application/tariff petition and that the contents of the same are true and correct to the best of my personal knowledge as derived from the official record. I further solemnly affirm and verify that the contents of this affidavit are true and correct to the best of my personal knowledge, no part of it is false and nothing material has been concealed therein. Verified and signed at Shimla on 15 th February, 2014 1 2 Witness DEPONENT Feb 2014 Page 5
BEFO THE HIMACHAL PRADESH ELECTRICITY GULATORY COMMISSION SHIMLA Filing No Case No IN THE MATTER OF: Filing of the Aggregate Revenue Requirement (ARR) of own generation for the Third (FY 2014-15 to FY 2018-19) under Section 62, 64 and 86 of the Electricity Act, 2003 AND IN THE MATTER OF Himachal Pradesh State Electricity Board Limited (hereinafter referred to as "HPSEBL" or "The HPSEBL") Vidyut Bhawan Shimla 171004 - Applicant The Applicant respectfully submits as under: 1. The Himachal Pradesh State Electricity Board was constituted on 1st September, 1971 in accordance with the provisions of Electricity Supply Act (1948). It functioned as Distribution, as well as Transmission licensee for the state of Himachal Pradesh up to 10th June, 2010, when the Government of Himachal Pradesh, in exercise of the power conferred to it, by Section 131 (2), 132, 133 and other applicable provisions of the Electricity Act 2003, vide the Himachal Pradesh Power Sector Reforms transfer Scheme, 2010 transferred the functions of generation, distribution and trading of electricity to Himachal Pradesh State Electricity Board Limited (HPSEBL). The Board at present is engaged in electricity generation, distribution and related activities in the state of Himachal Pradesh. 2. Consequent to the enactment of the Electricity Act, 2003 (hereinafter referred to as the Act ), the process of approval of proposed tariffs is vested with the State Commission. Pursuant to the provisions of Section 61, 62 and 64 of the Act, HPSEBL is filing the current petition, in order to meet its financial requirements for the various hydro generation plants being operated by it. 3. The present petition is filed with the Hon ble HPERC for submission of the ARR of HPSEBL s own generation plants, for the Third Control period (FY 2014-15 to FY 2018-19) as per the provisions of HPERC (Terms and Conditions for Determination of Hydro Supply Tariff) Regulations, 2011, read along with First Amendment, 2011 and Second Amendment, 2013. HPSEBL along with this petition is submitting the regulatory formats with data & information to an extent applicable and would make available any further information/ additional data required by the Hon ble Commission during the course of MYT & tariff determination process. Feb 2014 Page 6
1. INTRODUCTION 1.1. ABOUT HPSEBL 1. The Himachal Pradesh State Electricity Board was constituted on 1st September, 1971 in accordance with the provisions of Electricity Supply Act (1948). It functioned as Distribution, as well as Transmission licensee for the state of Himachal Pradesh up to 10th June, 2010, when the Government of Himachal Pradesh, in exercise of the power conferred to it, by Section 131 (2), 132, 133 and other applicable provisions of the Electricity Act 2003, vide the Himachal Pradesh Power Sector Reforms transfer Scheme, 2010 transferred the functions of generation, distribution and trading of electricity to Himachal Pradesh State Electricity Board Limited (HPSEBL) 2. Himachal Pradesh State Electricity Board Limited (HPSEBL), having its registered office at Vidyut Bhawan, Shimla, is responsible for generation and supply of uninterrupted & quality power to all categories of consumers in Himachal Pradesh at the most economical rates. 1.2. OBJECTIVE OF THE DOCUMENT 1. The Himachal Pradesh Electricity Regulatory Commission (HPERC), in exercise of the powers conferred on it by section 181 of the Electricity Act 2003 (Act 36 of 2003) and all other powers, has issued HPERC (Terms and Conditions for Determination of Hydro Tariff) Regulations, 2011 along with Amendment 1, 2011 and Amendment 2, 2013, hereinafter referred to as MYT Regulations 2. Based on the MYT Regulations, HPSEBL is filing this MYT petition for the third control period (FY 14-15 to FY 18-19) for 14 Nos. of hydro generation plants out of the total 22 Nos. of own generation plants. The petition does not include the rest 8 Nos. of small plants (listed below) as their respective tariffs had already been fixed by the Commission as per the HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013.. These 8 Nos. of small plants are given below: a. Ghanvi b. Khauli c. Thirot d. Bhaba Augmentation e. Gumma f. Holi g. Sal II h. Killar 3. HPSEBL has prepared the petition as per MYT Regulations, 2011 and its subsequent amendments 1 & 2. HPSEBL submits that there are certain data sets that cannot be Feb 2014 Page 7
made available in the prescribed MYT formats due to the inherent complexity and is not attributable to the efficiency of HPSEBL. 4. HPSEBL is filing this petition covering revised estimates (R.E.) for FY 13-14 and ARR for FY 14-15 to FY 18-19 as per HPERC Regulations on Terms and Conditions for Determination of Multi Year Tariff, 2011 and subsequent amendments 1 & 2. Feb 2014 Page 8
2. OWN GENERATION DETAILS 2.1. HISTORICAL GENERATION FROM OWN PLANTS The generation (MUs) from FY 2011 to FY 2013 is given as per the actual records of HPSEBL. The revised estimates of FY 2014 generation (MUs) are based on 8 months actual generation (Apr Nov) and the rest 4 months (Dec Mar) projections on the basis of energy availability approved by HPERC or revised design energy proposed by HPSEBL, whichever is applicable. The design and energy of the plants varies a lot during the winters and summers. Hence, monthly projections of the generation (MUs) during the last 4 months are done using the historical trends of these 4 months only instead of simple extrapolation. Out of a total number of 22 plants as mentioned in Table 1, GoHP has a share of 12% in Ghanvi, Baner, Gaj, Larji, Uhl III and Ghanvi II. Hence, HPSEBL receives 88% of the overall generation from all of these plants. The balance is received as free power. Based on the above operational parameters, the actual generation for the past 3 years, the revised estimates for 2013-14 of the net generation are given in the following table: TABLE 1: PAST YEARS' GENERATION TILL 2ND MYT PERIOD Stations Yearly Power Availability (MUs) Power Availability (MUs) from HPSEBL Stations Actual Actual Actual FY 10-11 FY 11-12 FY 12-13 1 Bhaba 642 588 364 537 2 Bassi 192 155 246 240 3 Giri 230 214 196 224 4 Andhra 63 72 65 81 5 Ghanvi 53 61 65 71 6 Baner 37 40 38 40 7 Gaj 31 37 34 39 8 Larji 585 612 573 523 9 Khauli 37 44 41 40 10 Binwa 30 34 29 22 11 Thirot 9 10 13 16 12 Gumma 0 7 4 0 13 Holi 9 5 10 9 14 Bhaba Aug 0 6 10 4 15 Nogli 8 7 6 6 16 Rongtong 1 2 1 2 17 Sal-II 4 4 4 7 18 Chaba 10 9 8 5 FY 13-14 Feb 2014 Page 9
Stations Yearly Power Availability (MUs) Power Availability (MUs) from HPSEBL Stations Actual Actual Actual FY 10-11 FY 11-12 FY 12-13 19 Rukti 0 1 1 3 20 Chamba 0 0 1 2 21 Killar 0 0 0 1 22 Uhl III - BVPCL 0 0 0 0 23 Ghanvi II 0 0 0 0 FY 13-14 Total 1941 1908 1708 1872 2.2. GENERATION PROJECTIONS FROM OWN GENERATING STATIONS IN THE 3RD MYT PERIOD For the purpose of generation projections in 3 rd control period, the HPERC approved numbers for energy availability and net saleable energy for 17 No. small hydro plants as per the HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013. As per the same order, out of 17 Nos., the tariff for 8 Nos. of these plants was fixed by the Commission for the 3 rd control period and no separate petition is being filed for them. The petition for the rest 9 Nos. small hydro plants along with the 5 No. large plants is prepared in the later sections of the petition. The details of the energy available (small hydro plants) approved by the Commission are given below: TABLE 2: STATED ENERGY AVAILABILITY OF HYDRO PLANTS S N Plant Energy Availability (MU) 1. Andhra 87.30 2. Baner 60.67 3. Gaj 38.31 4. Binwa 29.25 5. Nogli 9.85 6. Chaba 7.67 7. RongTong 7.64 8. Rukti 6.54 9. Chamba 1.77 10. Ghanvi 93.34 11. Khauli 49.95 12. Thirot 17.74 13. Bhaba Augmentation 17.74 14. Gumma 11.83 15. Holi 11.83 16. Sal II 7.88 17. Killar 1.16 The 5 No. plants which are not covered under the above mentioned (HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013) are Larji, Ghanvi II, Bassi, Bhaba and Feb 2014 Page 10
Giri. For these 5 No. plants the revised energy estimates as per Memorandum for the Proposal for revision of Design Energy of existing Hydro Electric Plants of HPSEB Ltd submitted by HPSEBL have been considered for projections. TABLE 3: 3RD MYT PERIOD PROJECTIONS FOR GENERATION Yearly Power Availability (MUs) Power Availability (MUs) from HPSEBL Stations Proj. Proj. Proj. Proj. Proj. Stations FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 1 Bhaba 540 540 540 540 540 2 Bassi 345 345 345 345 345 3 Giri 219 219 219 219 219 4 Andhra 86 86 86 86 86 5 Ghanvi 81 81 81 81 81 6 Baner 53 53 53 53 53 7 Gaj 33 33 33 33 33 8 Larji 501 501 501 501 501 9 Khauli 40 40 40 40 40 10 Binwa 29 29 29 29 29 11 Thirot 18 18 18 18 18 12 Gumma 12 12 12 12 12 13 Holi 12 12 12 12 12 14 Bhaba Aug 18 18 18 18 18 15 Nogli 10 10 10 10 10 16 Rongtong 8 8 8 8 8 17 Sal-II 8 8 8 8 8 18 Chaba 8 8 8 8 8 19 Rukti 6 6 6 6 6 20 Chamba 2 2 2 2 2 21 Killar 1 1 1 1 1 22 Uhl III - BVPCL 0 343 343 343 343 23 Ghanvi II 46 46 46 46 46 Total 2074 2417 2417 2417 2417 In this petition, preliminary estimates of Annual Fixed Charges for three large (above 25 MW) HEPs viz. Bhaba, Giri and Bassi are enclosed. Detailed petition of these plants as required by HPERC s order dated 15 th Jan, 2014 in petition no. 54 of 2013. will be subsequently submitted to the Hon ble HPERC. No separate petitions for Larji, Khauli and Bhaba Augmentation would be required as there has been no additional capitalization in Larji while the tariffs for Khauli and Bhaba Augmentation have already been fixed by Hon ble HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013. Feb 2014 Page 11
3. DETERMINATION OF ANNUAL FIXED CHARGES 1. Components of Annual Fixed Charge HPSEBL, for the purpose of determination of Annual Fixed Charge and the tariff for sale of electricity from the generating station, has considered the following elements as specified by the HPERC (Terms and Conditions for Determination of Hydro Tariff) Regulations, 2011: i. Operation and Maintenance Expenses (O&M) j. Depreciation k. Interest on Loans l. Interest on Working Capital; and m. Return on Equity (RoE) 2. Other assumptions for the determination of Annual Fixed Charge HPSEBL has estimated the AFC charges for the individual own generating plants based on the norms as per HPERC (Terms and Conditions for Determination of Hydro Tariff), 2011 along with Amendments 1 and 2 and the historical numbers. HPSEBL has considered the following for determination of AFC: a. The completed costs of projects have been taken as considered by the commission as per the MYT order for FY 12 to FY 14 dated 19th July 2011. b. The ROE has been considered @ 15.50% as per the commission s Hydro Tariff Regulations 2011 and subsequent amendments 1 & 2, except for Larji HEP wherein pre - tax ROE @ 19.38% has been approved by commission in tariff order 2011. c. The O&M expenses have been escalated as per the Amendment 2 of HPERC (Terms and Conditions for Determination of Hydro Tariff), 2011. The WPI and CPI considered for this purpose are 8.61% and 9.76% respectively, calculated as below: TABLE 4: CALCULATION OF WPI AND CPI FACTORS FY WPI Index Growth (WPI) CPI Index Growth in CPI 2009-2010 130.81 162.75 2010-2011 143.32 9.56 179.75 10.45 2011-2012 156.13 8.94 194.83 8.39 2012-2013 167.62 7.36 215.17 10.44 Avg 8.61% 9.76% Feb 2014 Page 12
i. For the purpose of projecting R&M cost, the historical R&M cost as a percentage of the historical GFA has been escalated by the WPI factor 8.61% each year. ii. The employee cost has been projected by escalating the historical employee cost by the CPI factor 9.76%. It was further escalated by the year on year growth rate in the employee number. iii. For the purpose of projecting A&G cost, the historical A&G has been escalated by the WPI factor 8.61% each year. d. A depreciation rate of 5.28% has been considered for the first 12 years of capitaliziation. Thereafter, the balance net asset value is equally spread over the useful life of the plant, as per the Tariff conditions issued by Hon HPERC. e. The GoHP has 12% share in the generation of power from plants Gaj, Baner, Ghanvi, Khauli, Ghanvi II and Larji. The same has been reduced from total generation to arrive at the net saleable energy from these plants to recover the AFC. 3.1. ANNUAL FIXED CHARGES FOR BHABA HEP Bhaba HEP is a 120 MW (3 x 40 MW) project commissioned in the year 1989. It is a peaking, storage project with underground power station and static excitation. HPSEBL, in its letter dated 17 th April 2008, had submitted a capital cost of INR 239.78Cr, against which, the Commission, in both, 1 st MYT tariff order, May 2008 and the 2 nd MYT tariff order, July 2011 had approved a cost of INR 222.19 Cr. The Hon HPERC had considered 100% debt funding for the plant with no outstanding loans. During the 2 nd, there has been an additional capitalization of INR 2.24 Cr and the same has been added to the gross fixed assets (GFA) from FY 2011 2012 onwards. Apart from the opening GFA for FY 2015 of INR 224.43 Cr (INR 222.19 Cr + INR 2.24 Cr) a capital expenditure of INR 73.86 Cr is envisaged to be capitalized in the 3 rd MYT control period out of which INR 56.69 Cr worth of capital expenditure is intended to be funded through PFC loans, INR 3 Cr through short term borrowings and INR 14.17 Cr through equity. The complete list of the proposed works under the capital expenditure plan is given in the form F 13 enclosed with the MYT petition. The GFA details along with the depreciation expense for the 3 rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 5: GFA DETAILS OF BHABA GFA Particulars - Bhaba HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Feb 2014 Page 13
Original GFA as approved by HPERC 222.19 222.19 222.19 222.19 222.19 222.19 Depreciation 4.88 4.88 4.88 4.88 4.88 4.88 New GFA (planned in 3rd MYT period) 12.24 38.16 0.50 23.55 1.35 0.70 Accumulated New GFA 12.24 50.40 50.90 74.45 75.80 76.50 Depreciation on New GFA 0.32 1.65 2.67 3.31 3.97 4.02 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 236.67 274.83 275.33 298.88 300.23 300.93 Annual Depreciation 5.20 6.53 7.55 8.19 8.85 8.90 A detailed petition would be filed for Bhaba HEP as required by the HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013. As per the enclosed petition, the preliminary estimates of AFC determined for Bhaba HEP are given in the below table. TABLE 6: AFC FOR BHABA S. No. A Particulars - Bhaba HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1 Gross (Design Energy) (MU) 540.00 540.00 540.00 540.00 540.00 540.00 2 Total Auxiliary (MU) 0.03 0.03 0.02 0.02 0.02 0.02 3 Net at Bus (MU) 537.30 539.97 539.98 539.98 539.98 539.98 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 537.30 539.97 539.98 539.98 539.98 539.98 6 O&M expenses (INR Cr) 20.71 22.94 26.01 28.48 31.83 34.88 7 Depreciation @ 5.28% (INR Cr) 5.20 6.53 7.55 8.19 8.85 8.90 8 Interest & Finance Charges (INR Cr) 0.20 1.71 4.66 4.69 6.39 5.75 9 Return on Equity (INR Cr) 0.35 1.45 1.46 2.14 2.18 2.20 10 Interest on Working Capital (INR Cr) 1.26 1.47 1.73 1.89 2.13 2.28 11 Annual Fixed Charges (INR Cr) 27.72 34.10 41.41 45.39 51.37 54.01 12 Capacity Charges (INR Cr) 13.86 17.05 20.71 22.69 25.69 27.00 13 Fixed Charges (INR Cr) 13.86 17.05 20.71 22.69 25.69 27.00 3.2. ANNUAL FIXED CHARGES FOR CHABA HEP Chaba HEP is a 1.75 MW (2 x 0.5 MW + 3 x 0.25 MW) project commissioned in the year 1913-14. It is a non peaking run of the river project with surface water station and static excitation. The project was initially executed with a capital cost of INR 1.21 Cr and was funded through 100% debt. The same cost was proposed by HPSEBL and approved by the Commission in both 1 st MYT tariff order, May 2008 as well as the 2 nd MYT tariff order, July 2011. There was 100% debt funding for the plant with no outstanding loans. During the 2 nd, No additional capitalization had been added to the gross fixed Feb 2014 Page 14
assets (GFA). Since it is a 94 year old plant, the initial cost of INR 1.21 Cr was completely depreciated. Apart from the opening GFA for FY 2015 of INR 1.21 Cr, a total capital expenditure of INR 0.96 Cr is envisaged to be capitalized in the 3 rd MYT control period and all of it is intended to be funded through short term borrowings. The details of the proposed works under the capital expenditure plan are given in the form F 13 enclosed with the MYT petition. The GFA details along with the depreciation expense for the 3 rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 7: GFA DETAILS OF CHABA GFA Particulars - Chaba HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 1.21 1.21 1.21 1.21 1.21 1.21 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 New GFA (planned in 3rd MYT period) 0.00 0.96 0.00 0.00 0.00 0.00 Accumulated New GFA 0.00 0.96 0.96 0.96 0.96 0.96 Depreciation on New GFA 0.00 0.03 0.05 0.05 0.05 0.05 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 1.21 2.17 2.17 2.17 2.17 2.17 Annual Depreciation 0.00 0.03 0.05 0.05 0.05 0.05 The AFC determined for Chaba HEP is shown as follows: TABLE 8: AFC FOR CHABA S. No. A Particulars - Chaba HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1 Gross (Design Energy) (MU) 5.03 7.67 7.67 7.67 7.67 7.67 2 Total Auxiliary (MU) 0.01 0.08 0.08 0.08 0.08 0.08 3 Net at Bus (MU) 5.03 7.59 7.59 7.59 7.59 7.59 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 5.03 7.59 7.59 7.59 7.59 7.59 6 O&M expenses (INR Cr) 1.78 1.99 2.55 2.79 3.05 3.34 7 Depreciation @ 5.28% (INR Cr) 0.00 0.03 0.05 0.05 0.05 0.05 8 Interest & Finance Charges (INR Cr) 0.03 0.07 0.09 0.08 0.07 0.06 9 Return on Equity (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 10 Interest on Working Capital (INR Cr) 0.10 0.11 0.14 0.15 0.17 0.18 11 Annual Fixed Charges (INR Cr) 1.91 2.19 2.83 3.07 3.34 3.63 12 Capacity Charges (INR Cr) 0.95 1.10 1.42 1.54 1.67 1.81 Feb 2014 Page 15
13 Fixed Charges (INR Cr) 0.95 1.10 1.42 1.54 1.67 1.81 3.3. ANNUAL FIXED CHARGES FOR NOGLI HEP Nogli HEP is a 2.50 MW (2 x 0.25 + 4 x 0.50 MW) project commissioned in the years 1963, 1970 and 1974. It is a non peaking, run of the river project with surface power station and static excitation. The project was executed with a capital cost of Rs 11.81 Cr which was proposed by HPSEBL and the same was approved by HPERC in both the 1 st and 2 nd MYT tariff order. It is a completely depreciated plant with no outstanding loan. The plant was executed with 100% debt (no equity) with no outstanding loan. No additional capitalization (after COD) was proposed by HPSEBL under this plant before the current year. Apart from the opening GFA for FY 2015 of INR 11.81 Cr, a total capital expenditure of INR 5.20 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and all of it is intended to be funded through PFC loans. The details of the proposed works under the capital expenditure plan are given in the form F 13 enclosed with the MYT petition. The GFA details along with the depreciation expense for the 3 rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 9: GFA DETAILS OF NOGLI GFA Particulars - Nogli HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 11.81 11.81 11.81 11.81 11.81 11.81 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 New GFA (planned in 3rd MYT period) 0.00 1.20 0.00 4.50 0.00 0.00 Accumulated New GFA 0.00 1.20 1.20 5.70 5.70 5.70 Depreciation on New GFA 0.00 0.03 0.06 0.18 0.30 0.30 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 11.81 13.01 13.01 17.51 17.51 17.51 Annual Depreciation 0.00 0.03 0.06 0.18 0.30 0.30 The AFC determined for Nogli HEP is shown as follows: TABLE 10: AFC FOR NOGLI S. No. Particulars - Nogli HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Feb 2014 Page 16
A 1 Gross (Design Energy) (MU) 6.47 9.85 9.85 9.85 9.85 9.85 2 Total Auxiliary (MU) 0.01 0.10 0.10 0.10 0.10 0.10 3 Net at Bus (MU) 6.46 9.75 9.75 9.75 9.75 9.75 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 6.46 9.75 9.75 9.75 9.75 9.75 6 O&M expenses (INR Cr) 2.22 2.43 2.75 2.88 3.56 3.89 7 Depreciation @ 5.28% (INR Cr) 0.00 0.03 0.06 0.18 0.30 0.30 8 Interest & Finance Charges (INR Cr) 0.00 0.06 0.14 0.18 0.50 0.47 9 Return on Equity (INR Cr) 0.00 0.04 0.04 0.16 0.16 0.16 10 Interest on Working Capital (INR Cr) 0.12 0.13 0.15 0.17 0.22 0.23 11 Annual Fixed Charges (INR Cr) 2.34 2.69 3.14 3.57 4.74 5.05 12 Capacity Charges (INR Cr) 1.17 1.35 1.57 1.79 2.37 2.53 13 Fixed Charges (INR Cr) 1.17 1.35 1.57 1.79 2.37 2.53 3.4. ANNUAL FIXED CHARGES FOR RONGTONG HEP Rong Tong HEP is a 2 MW (4 x 0.50 MW) project commissioned in the year 1986-87. The project was executed with a capital cost of Rs 16.39 Cr which was proposed by HPSEBL and the same was approved by HPERC in both the 1 st and 2 nd MYT tariff order. The plant was executed with 100% debt (no equity) with no outstanding loan. There is an additional capitalization of INR 0.04 Cr (after COD) under this plant and added to the gross fixed assets from FY 2011 2012 onwards. Apart from the opening GFA for FY 2015 of INR 16.43 Cr (INR 16.39 Cr + 0.04 Cr) a total capital expenditure of INR 6.75 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and all of it is intended to be funded through MN Grants. These grants were allocated as per the 13 th Finance Commission Grant for strengthening of electricity infrastructure in Border Blocks of HP. Since this amount of INR 6.75 Cr is treated as a grant, no depreciation, Interest and finance charges and ROE have been charged on this amount. The details of the proposed works under the capital expenditure plan are given in the form F 13 enclosed with the MYT petition. The generation from FY 2014-2015 onwards is the same as approved by the commission as per the HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. Feb 2014 Page 17
TABLE 11: GFA DETAILS OF RONGTONG GFA Particulars - RongTong HEP 2013-14 2014-15 2015-16 2016-17 2017-18 Original GFA as approved by HPERC 16.39 16.39 16.39 16.39 16.39 16.39 Depreciation 0.35 0.35 0.35 0.35 0.35 0.35 New GFA (planned in 3rd MYT period) 0.00 6.75 0.00 0.00 0.00 0.00 Accumulated New GFA 0.00 6.75 6.75 6.75 6.75 6.75 Depreciation on New GFA 0.00 0.00 0.00 0.00 0.00 0.00 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 16.43 23.18 23.18 23.18 23.18 23.18 Annual Depreciation 0.35 0.35 0.35 0.35 0.35 0.35 The AFC determined for Rong Tong HEP is shown as follows: TABLE 12: AFC FOR RONGTONG 2018-19 S. No. A 1 Particulars : RongTong HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Gross (Design Energy) (MU) 2.12 7.64 7.64 7.64 7.64 7.64 2 Total Auxiliary (MU) 0.00 0.08 0.08 0.08 0.08 0.08 3 Net at Bus (MU) 2.11 7.56 7.56 7.56 7.56 7.56 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 2.11 7.56 7.56 7.56 7.56 7.56 6 O&M expenses (INR Cr) 1.33 1.45 1.71 1.87 2.05 2.25 7 Depreciation @ 5.28% (INR Cr) 0.35 0.35 0.35 0.35 0.35 0.35 8 Interest & Finance Charges (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 9 Return on Equity (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 10 Interest on Working Capital (INR Cr) 0.08 0.09 0.10 0.11 0.12 0.13 11 Annual Fixed Charges (INR Cr) 1.76 1.89 2.17 2.34 2.53 2.73 12 Capacity Charges (INR Cr) 0.88 0.95 1.08 1.17 1.26 1.37 13 Fixed Charges (INR Cr) 0.88 0.95 1.08 1.17 1.26 1.37 3.5. ANNUAL FIXED CHARGES FOR RUKTI HEP Rukti HEP is a 1.50 MW (3 x 0.50 MW) project commissioned in the year 1979 and 1980. It is a non peaking plant run of the river and project with surface power station and static excitation. The project was executed with a capital cost of Rs 1.59 Cr which was proposed by HPSEBL and the same was approved by HPERC in both the 1 st and 2 nd MYT tariff order. Feb 2014 Page 18
The plant was executed with 100% debt (no equity) with no outstanding loan. No additional capitalization (after COD) was proposed by HPSEBL under this plant. Apart from the opening GFA for FY 2015 of INR 1.59 Cr, a total capital expenditure of INR 6.57 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and all of it is intended to be funded through MN Grants. These grants were allocated as per the 13 th Finance Commission Grant for strengthening of electricity infrastructure in Border Blocks of HP. Since this amount of INR 6.57 Cr is treated as a grant, no depreciation, Interest and finance charges and ROE have been charged on this amount. The details of the proposed works under the capital expenditure plan are given in the form F 13 enclosed with the MYT petition. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 13: GFA DETAILS FOR RUKTI GFA Particulars - Rukti HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 1.59 1.59 1.59 1.59 1.59 1.59 Depreciation 0.03 0.03 0.03 0.03 0.03 0.03 New GFA (planned in 3rd MYT period) 0.00 6.57 0.00 0.00 0.00 0.00 Accumulated New GFA 0.00 6.57 6.57 6.57 6.57 6.57 Depreciation on New GFA 0.00 0.00 0.00 0.00 0.00 0.00 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 1.59 8.16 8.16 8.16 8.16 8.16 Annual Depreciation 0.03 0.03 0.03 0.03 0.03 0.03 The AFC determined for Rukti HEP is shown as follows: TABLE 14: AFC FOR RUKTI HEP S. No. A Particulars - Rukti HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1 Gross (Design Energy) (MU) 2.63 6.54 6.54 6.54 6.54 6.54 2 Total Auxiliary (MU) 0.01 0.07 0.07 0.07 0.07 0.07 3 Net at Bus (MU) 2.62 6.47 6.47 6.47 6.47 6.47 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 2.62 6.47 6.47 6.47 6.47 6.47 6 O&M expenses (INR Cr) 0.55 0.60 0.98 1.07 1.17 1.27 7 Depreciation @ 5.28% (INR Cr) 0.03 0.03 0.03 0.03 0.03 0.03 8 Interest & Finance Charges (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 Feb 2014 Page 19
S. No. A Particulars - Rukti HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 9 Return on Equity (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 10 Interest on Working Capital (INR Cr) 0.03 0.03 0.05 0.06 0.06 0.07 11 Annual Fixed Charges (INR Cr) 0.61 0.67 1.06 1.16 1.26 1.38 12 Capacity Charges (INR Cr) 0.31 0.33 0.53 0.58 0.63 0.69 13 Fixed Charges (INR Cr) 0.31 0.33 0.53 0.58 0.63 0.69 3.6. ANNUAL FIXED CHARGES FOR ANDHRA HEP Andhra HEP is a 16.95 MW (3 x 5.65 MW) project commissioned by the HPSEBL in the year 1987. It is a peaking, storage project with surface power station and static excitation. The project was executed with a capital cost of Rs 57.61 Cr which was proposed by HPSEBL and the same was approved by HPERC in both the 1 st and 2 nd MYT tariff order. The plant was executed with 100% debt (no equity) with no outstanding loan. No additional capitalization (after COD) had happened in the 1 st and 2 nd MYT period under this plant. Apart from the opening GFA for FY 2015 of INR 57.61 Cr, a total capital expenditure of INR 26.08 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and out of it, INR 19.44 Cr is intended to be funded through PFC loans, INR 4.86 Cr through equity and INR 1.78 Cr through short term borrowings. The complete details of the proposed works under the capital expenditure plan of Andhra plant are given in the form F 13 enclosed with the MYT petition. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 15: GFA DETAILS OF ANDHRA GFA Particulars - Andhra HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 57.61 57.61 57.61 57.61 57.61 57.61 Depreciation 1.23 1.23 1.23 1.23 1.23 1.23 New GFA (planned in 3rd MYT period) 0.00 1.65 0.35 25.89 0.00 1.50 Accumulated New GFA 0.00 1.65 2.00 27.89 27.89 29.39 Depreciation on New GFA 0.00 0.04 0.10 0.79 1.47 1.51 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 57.61 59.26 59.61 85.50 85.50 87.00 Feb 2014 Page 20
GFA Particulars - Andhra HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Annual Depreciation 1.23 1.28 1.33 2.02 2.71 2.75 The AFC determined for Andhra HEP is shown as follows: TABLE 16: AFC FOR ANDHRA S. No. A Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1 Gross (Design Energy) (MU) 81.04 87.30 87.30 87.30 87.30 87.30 2 Total Auxiliary (MU) 0.16 0.87 0.87 0.87 0.87 0.87 3 Net at Bus (MU) 80.88 86.43 86.43 86.43 86.43 86.43 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 80.88 86.43 86.43 86.43 86.43 86.43 6 O&M expenses (INR Cr) 6.44 7.05 7.76 8.51 10.02 10.97 7 Depreciation @ 5.28% (INR Cr) 1.23 1.28 1.33 2.02 2.71 2.75 8 Interest & Finance Charges (INR Cr) 0.05 0.20 0.40 0.61 2.36 2.26 9 Return on Equity (INR Cr) 0.00 0.05 0.06 0.71 0.71 0.75 10 Interest on Working Capital (INR Cr) 0.38 0.42 0.46 0.54 0.68 0.73 11 Annual Fixed Charges (INR Cr) 8.10 8.99 10.01 12.39 16.47 17.45 12 Capacity Charges (INR Cr) 4.05 4.50 5.01 6.20 8.23 8.72 13 Fixed Charges (INR Cr) 4.05 4.50 5.01 6.20 8.23 8.72 3.7. ANNUAL FIXED CHARGES FOR GIRI HEP Giri HEP is a 60 MW (2 x 30 MW) project commissioned in the year 1978. It is a non peaking run of the river project with semi underground power station and rotating excitation. HPSEBL, in its letter dated 17 th April 2008, had submitted a capital cost of INR 40.02Cr, against which, the Commission, in its 1 st MYT tariff order, May 2008 and 2 nd MYT tariff order, July 2011 had approved a cost of INR 36.22 Cr. The Hon HPERC had considered 100% debt funding for the plant with no outstanding loans. During the 2 nd Control Period, there has been an additional capitalization of INR 5.28 Cr and the same has been added to the gross fixed assets (GFA) from FY 2011 2012 onwards. Apart from the opening GFA for FY 2015 of INR 41.50 Cr (INR 36.22 Cr + 5.28 Cr) a total capital expenditure of INR 57.95 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and out of it, INR 44.72 Cr is intended to be funded through PFC loans, INR 13.23 Cr through equity and INR 2.05 Cr through short Feb 2014 Page 21
term borrowings. The complete details of the proposed works under the capital expenditure plan of Giri plant are given in the form F 13 enclosed with the MYT petition. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 17: GFA DETAILS OF GIRI GFA Particulars - Giri HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 36.22 36.22 36.22 36.22 36.22 36.22 Depreciation 1.05 1.05 1.05 1.05 1.05 1.05 New GFA (planned in 3rd MYT period) 0.00 1.40 3.80 59.42 0.00 1.25 Accumulated New GFA 0.00 1.40 5.20 64.62 64.62 65.87 Depreciation on New GFA 0.00 0.04 0.17 1.84 3.41 3.44 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 41.50 42.90 46.70 106.12 106.12 107.37 Annual Depreciation 1.05 1.09 1.23 2.90 4.47 4.50 A detailed petition would be filed for Giri HEP as required by the HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013. As per the enclosed petition, the preliminary estimates of AFC determined for Giri HEP are given in the below table. TABLE 18: AFC FOR GIRI S. No. A Particulars - Giri HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1 Gross (Design Energy) (MU) 225.50 220.00 220.00 220.00 220.00 220.00 2 Total Auxiliary (MU) 1.13 1.10 1.10 1.10 1.10 1.10 3 Net at Bus (MU) 224.37 218.90 218.90 218.90 218.90 218.90 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 224.37 218.90 218.90 218.90 218.90 218.90 6 O&M expenses (INR Cr) 19.38 20.84 22.10 24.97 41.05 44.77 7 Depreciation @ 5.28% (INR Cr) 1.05 1.09 1.23 2.90 4.47 4.50 8 Interest & Finance Charges (INR Cr) 0.02 0.25 0.86 1.63 5.44 5.09 9 Return on Equity (INR Cr) 0.00 0.04 0.16 1.70 1.70 1.73 10 Interest on Working Capital (INR Cr) 1.08 1.17 1.25 1.50 2.50 2.69 11 Annual Fixed Charges (INR Cr) 21.54 23.39 25.59 32.69 55.14 58.78 12 Capacity Charges (INR Cr) 10.77 11.70 12.80 16.35 27.57 29.39 13 Fixed Charges (INR Cr) 10.77 11.70 12.80 16.35 27.57 29.39 Feb 2014 Page 22
3.8. ANNUAL FIXED CHARGES FOR BANER HEP Baner HEP is a 12 MW (3 x 4 MW) project commissioned by the HPSEBL in the year 1996. HPSEBL had submitted a capital cost of INR 68.79Cr, against which, the Commission, in its 1 st MYT tariff order, May 2008 and 2 nd MYT tariff order, July 2011 had approved a cost of INR 55.67 Cr. The financing of the capital cost of INR 55.67 Cr is through PFC, LIC and GoHP loan of INR 34.66 Cr along with a of the GOHP equity of INR 15 Cr on which an ROE @15.50% has been calculated as per the HPERC Regulations, 2011. During the 2 nd, there has been an additional capitalization of INR 0.20 Cr and the same has been added to the gross fixed assets (GFA) from FY 2011 2012 onwards. Apart from the opening GFA for FY 2015 of INR 55.87 Cr (INR 55.67 Cr+ 0.20 Cr) a total capital expenditure of INR 2.90 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and out of it, INR.1.45 Cr is intended to be funded through PFC loans, INR 0.30 Cr through equity and INR 1.15 Cr through short term borrowings. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 19: GFA DETAILS OF BANER GFA Particulars - Baner HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 55.67 55.67 55.67 55.67 55.67 55.67 Depreciation 1.20 1.20 1.20 1.20 1.20 1.20 New GFA (planned in 3rd MYT period) 0.00 1.75 0.70 0.15 0.10 0.20 Accumulated New GFA 0.00 1.75 2.45 2.60 2.70 2.90 Depreciation on New GFA 0.00 0.05 0.11 0.13 0.14 0.15 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 55.87 57.62 58.32 58.47 58.57 58.77 Annual Depreciation 1.20 1.25 1.31 1.34 1.34 1.35 The AFC for Baner in the 3 rd control period is given below: TABLE 20: AFC FOR BANER S. No. Particulars - Baner HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 A 1 Gross (Design Energy) (MU) 46.37 60.67 60.67 60.67 60.67 60.67 Feb 2014 Page 23
S. No. Particulars - Baner HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 A 2 Total Auxiliary (MU) 0.95 0.61 0.61 0.61 0.61 0.61 3 Net at Bus (MU) 39.97 60.06 60.06 60.06 60.06 60.06 4 Less: Free Power to GOHP @ 12% (MU) 4.80 7.21 7.21 7.21 7.21 7.21 5 Energy Available for Sale (MU) 35.17 52.85 52.85 52.85 52.85 52.85 6 O&M expenses (INR Cr) 4.59 5.03 5.53 6.07 6.66 7.30 7 Depreciation @ 5.28% (INR Cr) 1.20 1.25 1.31 1.34 1.34 1.35 8 Interest & Finance Charges (INR Cr) 0.00 0.09 0.21 0.25 0.24 0.23 9 Return on Equity (INR Cr) 2.33 2.36 2.37 2.37 2.38 2.38 10 Interest on Working Capital (INR Cr) 0.33 0.36 0.39 0.42 0.45 0.49 11 Annual Fixed Charges (INR Cr) 8.44 9.08 9.81 10.45 11.07 11.75 12 Capacity Charges (INR Cr) 4.22 4.54 4.91 5.22 5.54 5.87 13 Fixed Charges (INR Cr) 4.22 4.54 4.91 5.22 5.54 5.87 3.9. ANNUAL FIXED CHARGES FOR BASSI HEP Bassi HEP is a 60 MW (4 x 15 MW) project commissioned in the year 1970, 1971 and 1981. It is a peaking, storage project with surface power station and rotating exciters. The Commission in the 1 st MYT tariff order had approved a capital cost of INR 31.26 Cr as the original cost of the project, funded through 100% debt with no outstanding loan. In the 2 nd MYT tariff order, the Commission had also considered an additional capitalization of INR 109.98 Cr, scaling up the GFA for FY 2012 to INR 141.24 Cr, for which PFC loan of INR 80 Cr had been considered with the rest of the amount of INR 29.98 being assumed to be met by state plan. A cumulative additional capitalization till FY 2014 for INR 155.42 Cr pertaining to a RMU scheme (including INR 109.98 Cr above) has been added to the original GFA of INR 31.26 Cr, scaling up the opening GFA of FY 2015 to 186.67 Cr. Apart from the opening GFA, a total capital expenditure of INR 13.77 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and out of it, INR. 10.98 Cr is intended to be funded through PFC loans, INR 2.20 Cr through equity and INR 2.79 Cr through short term borrowings. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. Feb 2014 Page 24
TABLE 21: GFA DETAILS OF BASSI GFA Particulars - Bassi HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 31.26 31.26 31.26 31.26 31.26 31.26 Depreciation 3.25 3.33 3.33 3.33 3.33 3.33 New GFA (planned in 3rd MYT period) 0.00 10.06 1.52 1.35 0.92 0.30 Accumulated New GFA 0.00 10.06 11.58 12.93 13.85 14.15 Depreciation on New GFA 0.00 0.27 0.57 0.65 0.71 0.74 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 186.68 196.74 198.26 199.61 200.53 200.83 Annual Depreciation 3.25 3.60 3.90 3.98 4.04 4.07 There are loans outstanding for Bassi and the table below shows the yearwise principal repayment and interest in the 3 rd MY control period: TABLE 22: OUTSTANDING LOAN DETAILS OF BASSI Loan Schedule - Bassi 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Principal Repayments INR Crores 4.52 4.52 4.52 4.52 4.52 4.52 Interest Charges INR Crores 7.27 6.76 6.26 5.75 5.24 4.73 A detailed petition would be filed for Bassi HEP as required by the HPERC order dated 15 th Jan, 2014 in petition no. 54 of 2013. As per the enclosed petition, the preliminary estimates of AFC determined for Bassi HEP are given in the below table. TABLE 23: AFC FOR BASSI S. Particulars - Bassi HEP 2013-14 2014-15 2015-16 2016-17 2017-18 No. 2018-19 A 1 Gross (Design Energy) (MU) 240.35 346.00 346.00 346.00 346.00 346.00 2 Total Auxiliary (MU) 0.48 0.69 0.69 0.69 0.69 0.69 3 Net at Bus (MU) 239.87 345.31 345.31 345.31 345.31 345.31 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 239.87 345.31 345.31 345.31 345.31 345.31 6 O&M expenses (INR Cr) 15.00 16.13 17.97 19.70 21.59 23.65 7 Depreciation @ 5.28% (INR Cr) 3.25 3.60 3.90 3.98 4.04 4.07 8 Interest & Finance Charges (INR Cr) 13.00 12.90 12.78 11.79 10.70 9.52 9 Return on Equity (INR Cr) 0.00 0.29 0.33 0.37 0.40 0.41 10 Interest on Working Capital (INR Cr) 1.18 1.26 1.36 1.44 1.52 1.60 11 Annual Fixed Charges (INR Cr) 32.43 34.17 36.35 37.28 38.25 39.25 12 Capacity Charges (INR Cr) 16.22 17.08 18.18 18.64 19.13 19.62 13 Fixed Charges (INR Cr) 16.22 17.08 18.18 18.64 19.13 19.62 Feb 2014 Page 25
3.10. ANNUAL FIXED CHARGES FOR BINWA HEP Binwa HEP is a 6 MW (2 x 3 MW) project commissioned in the year 1984. The project was executed with a capital cost of Rs 17.44 Cr which was proposed by HPSEBL and the same was approved by HPERC in both the 1 st and 2 nd MYT tariff order. The plant was executed with 100% debt (no equity) with no outstanding loan. An additional capitalization (after COD) of INR 0.08 Cr was proposed by HPSEBL under this plant in the 2 nd MYT period. Apart from the opening GFA for FY 2015 of INR 17.52 Cr (INR 17.44 Cr+ 0.08 Cr) a total capital expenditure of INR 15.50 Cr is envisaged to be capitalized and added to the gross fixed assets in the 3 rd MYT control period and out of it, INR 11.60 Cr is intended to be funded through PFC loans, INR 2.90 Cr through equity and INR 1 Cr through short term borrowings. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 24: GFA DETAILS OF BINWA GFA Particulars - Binwa HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 17.44 17.44 17.44 17.44 17.44 17.44 Depreciation 0.38 0.38 0.38 0.38 0.38 0.38 New GFA (planned in 3rd MYT period) 3.00 0.55 12.29 0.20 0.15 0.00 Accumulated New GFA 3.00 3.55 15.84 16.04 16.19 16.19 Depreciation on New GFA 0.08 0.17 0.51 0.84 0.85 0.85 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 20.52 21.07 33.36 33.56 33.71 33.71 Annual Depreciation 0.46 0.55 0.89 1.22 1.23 1.23 The AFC determined for Binwa HEP is shown as follows: TABLE 25: AFC FOR BINWA S. Particulars - Binwa HEP 2013-14 2014-15 2015-16 2016-17 2017-18 No. 2018-19 A 1 Gross (Design Energy) (MU) 21.63 29.25 29.25 29.25 29.25 29.25 2 Total Auxiliary (MU) 0.04 0.20 0.20 0.20 0.20 0.20 3 Net at Bus (MU) 21.59 29.05 29.05 29.05 29.05 29.05 Feb 2014 Page 26
S. Particulars - Binwa HEP 2013-14 2014-15 2015-16 2016-17 2017-18 No. 2018-19 A 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 21.59 29.05 29.05 29.05 29.05 29.05 6 O&M expenses (INR Cr) 4.19 4.70 5.18 6.22 6.82 7.47 7 Depreciation @ 5.28% (INR Cr) 0.46 0.55 0.89 1.22 1.23 1.23 8 Interest & Finance Charges (INR Cr) 0.15 0.34 0.51 1.48 1.44 1.34 9 Return on Equity (INR Cr) 0.09 0.10 0.44 0.45 0.45 0.45 10 Interest on Working Capital (INR Cr) 0.24 0.28 0.32 0.41 0.44 0.47 11 Annual Fixed Charges (INR Cr) 5.12 5.97 7.33 9.77 10.38 10.97 12 Capacity Charges (INR Cr) 2.56 2.99 3.67 4.88 5.19 5.48 13 Fixed Charges (INR Cr) 2.56 2.99 3.67 4.88 5.19 5.48 3.11. ANNUAL FIXED CHARGES FOR BS CHAMBA HEP Chamba HEP is a 0.45 MW (3 X 0.15 MW) project commissioned in the years 1938, 1957 and 1985. It is a non peaking run of the river project with surface power station and rotating exciters. The project was executed with a capital cost of Rs 0.50 Cr which was proposed by HPSEBL and the same was approved by HPERC in both the 1 st and 2 nd MYT tariff order. The plant was executed with 100% debt (no equity) with no outstanding loan. No additional capitalization (after COD) was proposed by HPSEBL under this plant. As far as the future expenditure of BS Chamba is concerned, INR 2 Cr are planned to be spent on maintenance of the plant. A contracting agency named M/S ASG Transectors have been appointed for the purpose and as per their contract, all future expenditure would be done by the agency. The GFA details along with the depreciation expense for the 3rd are presented in the following table. The depreciation expenses for the existing GFA and the proposed additions to the GFA have been separately calculated. TABLE 26: GFA DETAILS FOR BS CHAMBA GFA Particulars - BS HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Original GFA as approved by HPERC 0.50 0.50 0.50 0.50 0.50 0.50 Depreciation 0.01 0.01 0.00 0.00 0.00 0.00 New GFA (planned in 3rd MYT period) 0.00 0.00 0.00 0.00 0.00 0.00 Accumulated New GFA 0.00 0.00 0.00 0.00 0.00 0.00 Depreciation on New GFA 0.00 0.00 0.00 0.00 0.00 0.00 Feb 2014 Page 27
GFA Particulars - BS HEP 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Total GFA (actual till 2nd MYT period + Planned in 3rd MYT period) 0.50 0.50 0.50 0.50 0.50 0.50 Annual Depreciation 0.01 0.01 0.00 0.00 0.00 0.00 The AFC determined for Chamba HEP is shown as follows: TABLE 27: AFC FOR BS CHAMBA S. Particulars: Chamba HEP 2013-14 2014-15 2015-16 2016-17 2017-18 No. 2018-19 A 1 Gross (Design Energy) (MU) 1.73 1.77 1.77 1.77 1.77 1.77 2 Total Auxiliary (MU) 0.02 0.02 0.02 0.02 0.02 0.02 3 Net at Bus (MU) 1.71 1.75 1.75 1.75 1.75 1.75 4 Less: Free Power to GOHP (MU) 0.00 0.00 0.00 0.00 0.00 0.00 5 Energy Available for Sale (MU) 1.71 1.75 1.75 1.75 1.75 1.75 6 O&M expenses (INR Cr) 0.33 0.36 0.39 0.43 0.47 0.51 7 Depreciation @ 5.28% (INR Cr) 0.01 0.01 0.00 0.00 0.00 0.00 8 Interest & Finance Charges (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 9 Return on Equity (INR Cr) 0.00 0.00 0.00 0.00 0.00 0.00 10 Interest on Working Capital (INR Cr) 0.02 0.02 0.02 0.02 0.03 0.03 11 Annual Fixed Charges (INR Cr) 0.36 0.39 0.41 0.45 0.49 0.54 12 Capacity Charges (INR Cr) 0.18 0.19 0.21 0.23 0.25 0.27 13 Fixed Charges (INR Cr) 0.18 0.19 0.21 0.23 0.25 0.27 3.12. ANNUAL FIXED CHARGES FOR GAJ HEP Gaj HEP is a 10.50 MW (3 x 3.50 MW) project commissioned by the HPSEBL in the year 1996. HPSEBL had submitted a capital cost for Gaj HEP of INR 75.49 Cr, against which, the Commission, in its 1 st MYT tariff order, May 2008 and 2 nd MYT tariff order, July 2011 had approved a cost of INR 60.58 Cr. The sources of funding for the capital cost of INR 60.58 Cr were considered to be PFC, LIC and GoHP loan of INR 37.31 Cr along with GoHP equity of INR 15 Cr on which an ROE @15.50% has been calculated as per the HPERC Regulations, 2011. During the 2 nd, there has been an additional capitalization of INR 1.06 Cr and the same has been added to the gross fixed assets (GFA) from FY 2011 2012 onwards. Apart from the opening GFA for FY 2015 of INR 61.64 Cr (INR 60.58 Cr+ 1.06 Cr) a total capital expenditure of INR 3.96 Cr is envisaged to be capitalized and added to the gross Feb 2014 Page 28