AVAILABILITY BASED TARIFF ABT IS A BALANCING MECHANISM BETWEEN DEMAND AND GENERATION. ABT CONSISTS OF THREE PARTS- 1. CAPACITY CHARGE FOR SENT OUT AVAILABILITY. 2. ENERGY CHARGE FOR SCHEDULED GENERATION/DRAWAL. 3. UNSCHEDULED INTERCHANGE (UI). *THE VARIATION OF SCHEDULED GENERATION (SG) TO ACTUAL GENERATION (AG) =SG-AG *THE VARIATION OF SCHEDULED DRAWAL (SD) TO ACTUAL DRAWAL (AD) =SD-AD WHY ABT? INDISCIPLINE BY GENERATOR BY GENERATING MORE DURING HIGH FREQUENCY AND LESS DURING LOW FREQUENCY THAN SCHEDULE. INDISCIPLINE BY CONSTITUENTS BY DRAWING MORE DURING LOW FREQUENCY AND LESS DURING HIGH FREQUENCY THAN SCHEDULE. BOTH ARE INJURIOUS TO THE GRID. CONCEPT ABT CAPACITY ALLOCATIONS FROM GENERATING STATION TO EACH CONSTITUENT WILL BE OWNED BY THAT CONSTITUENT. CONSTITUENT HAS TO PAY FULL FIXED CHARGES FOR THE ALLOCATED POWER. CONSTITUENT CAN TRADE THE CAPACITY ALLOCATED. CONSTITUENT CAN SCHEDULE THE ENERGY FROM EACH GENERATOR AS PER REQUIREMENT AND MERIT ORDER AND CAN SAVE COST OF POWER PURCHASED.

CERC/SERC WILL FIX TARGET AVAILABILITY AT WHICH FIXED CHARGES CAN BE RECOVERED IN FULL. GENERATOR GENERATES AS PER REQUIREMENTS OF CONSTITUENTS SUBJECT TO TECHNICAL LIMITATIONS. GENERATOR GETS INCENTIVES FOR BETTER PERFORMANCE. GENERATOR RECEIVES VARIALE CHARGES AS PER SCHEDULED GENERATION. COMPONENTS OF ABT 1. CAPACITY CHARGES BASED ON DECLARED AVAILABILITY. EACH GENERATING STATION RECEIVES CAPACITY CHARGE (CC) =AFC*AVAILABILITY% TARGET AVAILABILITY% 2. ENERGY CHARGES FOR THE SCHEDULED ENERGY. 3. UNSCHEDULED INTERCHANGE (UI) CHARGE LINKED TO FREQUENCY THIS TARIFF IS COMMON TO ALL GENERATORS AND CONSTITUENTS. RECEIPTS BY THE GENERATOR A. CAPACITY CHARGE BASED ON DECLARED GENERATION

AVAILABILITY. B. ENERGY CHARGES FOR THE ENERGY SCHEDULED BY THE

CONSTITUENTS. C. UI CHARGES IF AG>SG, THE GENERATOR WILL RECEIVE AND

VICE VERSA. THIS WILL BE WORKED OUT FOR EACH TIME BLOCK RECEIPTS = A+B+C+INCENTIVE.

PAYMENT BY THE CONSTITUENTS

A. CAPACITY CHARGE IN PROPORTION TO THE SHARES OF THE DECLARED AVAILABILITY. B.ENERGY CHARGES FOR THE ENERGY SCHEDULED C UI CHARGE IF AD>SD, THE CONSTITUENT WIILL PAY.FOR AD<SD, THE CONSTITUENT RECEIVE.THIS WILL BE WORKED OUT FOR EACH TIME BLOCK. UI RATE 745ps 345ps------- 210PS 150PS 0 49 49.5 49.8 50 50.5 hz

PER STEP OF 0.02HZ 16 PAISE FROM 49.5 HZ TO 49 HZ PER STEP OF 0.02HZ 09PAISE FROM 49.8HZ TO 49.5 HZ PER STEP OF 0.02HZ 06 PAISE FROM 49.8HZ TO 50.5HZ COMPONENTS ANNUAL FIXED CHARGE (AFC) O&M COST, ROE, INTEREST ON CAPITAL LOAN AND WORKIMG CAPITAL, TAX, INSURANCE PREMIUM, DEPRECIATION COMPONENTS OF ENERGY CHARGE FUEL CHARGE INCLUDING FREIGHT, WATER CESS, ASH EVACUATON EXPENDITURES 100% AFC WILL BE RECOVERED AT TARGET AVAILABILITY AND AT LOWER AVAILABILITY AFC WILL BE RECOVERED ON PRORATA BASIS.

BILLING AND PAYMENT UI .UI CHARGE INHERENT PART TARIFF—NOT PENALTY .UI CHARGE IS SETTLED FROM SEM WEEKLY BASIS. .THE NET UI CHARGES IS BILLED BY RPC. IMPACT OF ABT VARIALE COST PAID IN RELATION TO ENERGY DRAWN CAN BE TRADED. MERIT DESPATCH. CONSTITUENT CAN RUN EMBEDDED GENERATION ECONOMICALLY. POSSIBILITY OF A CONSTITUENT BY MANIPULATION OF GENETRATION AND DRAWAL TO GET MAX.BENEFIT IN TERMS OF UI. SCHEDULE AND DESPATCH . BY 10AM EVERYDAY ALL ISGS SHALL ADVISE RLDC ON AVAILABILITY FOR 00-24HRS OF NEXT DAY. .RLDC WILL ADVISE BENEFICIARIES BY 11AM. .SLDCS SHALL REVIEW FORESEEN LOAD PATTERN,THEIR OWN GENERATING CAPABILITY AND ADVISE RLDC BY 3PM THEIR DRAWAL SCHEDULE TO EACH ISGS IN WHICH THEY HAVE SHARES. .BY 5PM EACH DAY RLDC WILL CONVEY GENERATON SCHEDULES AND DRAWAL SCHEDULES TO ISGS AND BENEFICIARIES RESPECTIVELY. . SLDCS/ISGS MAY INFORM ANY MODOFOCATION BY 10PM AND A FINAL DRAWAL SCHEDULE WILL BE DRAWN UP BY RLDC BY 11PM. ECONOMIC OPERATION OF POWER SYSTEM IMPLEMENTING MERIT ORDER DISPATCH REDUCES POWER COSTS

PRICING FOR REACTIVE POWER. ALL REACTIVE POWER EXCHANGES TO BE COMPENSATED TO AVAIL ISTS LINES CARRYING REACTIVE POWER. EVERY BENEFICIARY .PAYS FOR VAR DRAWAL WHEN VOLTAGE AT THE METERING POINT IS BELOW 97%. .GETS PAID FOR VAR RETURN WHEN VOLTAGE AT THE METERING POINT IS BELOW 97%. .PAYS FOR VAR RETURNS WHEN VOLTAGE AT THE METERING POINT IS ABOVE 103%. .GETS PAID FOR DRAWAL WHEN VOLTAGE AT THE METERING POINT IS ABOVE 103%. GENERATOR IS NOT COMPENSATED FOR REACTIVE POWER.

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