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BEFORE THE
HON’BLE T AMIL NADU ELECT RI CIT Y REGULATORY COMMI SSI ON
AT CHENNAI
Filing No :
Case No : M.P.No of 2017
IN THE MATTER OF : Praying for Approval of Aggregate Revenue
Requirement (ARR) for the financial year
2016-17 to 2018-19.
Tamil Nadu Transmission Corporation Ltd., (TANTRANSCO),
N.P.K.R.R Malaigai, 144, Anna Salai, Chennai -2.
……. Petitioner
Versus
NIL ---- Respondent
The petitioner named above respectfully showeth as under:
1. It is submitted that as per section 64 (1) of the Electricity Act,
2003 and Tariff Regulation 5 of the TNERC (Terms and Conditions
of Determination of Tariff) Regulations, 2005, the licensee
(TANTRANSCO) shall file Aggregate Revenue Requirement (ARR)
before the Hon’ble TNERC on or before 30th November of each
year.
2. It is respectfully submitted that a Miscellaneous Petition has
already been filed by this petitioner before this Hon’ble Commission
praying to grant time extension for filing ARR upto 31st January
2017 for the reason that the TANTRANSCO was in the process of
preparing the ARR which involves of voluminous data from the field
in respect of schemewise capital expenditure and other relevant data
required for filing the ARR.
3. It is respectfully submitted that the Aggregate Revenue
Requirement for the control period 2016-17 to 2018-19 is being
filed alongwith this petition without any tariff revision for the
forthcoming financial year 2017-18 before this Hon’ble Commission
for approval.
4. It is respectfully submitted that in view of the reasons submitted
above, it is prayed that this Hon’ble Commission may be pleased
“To approve the Aggregate Revenue Requirement (ARR) for the
financial year 2016-17 to 2018-19 and pass any other order as the
Hon’ble Commission may deem fit.
Petitioner
BEFORE THE HON’BLE
TAMIL NADU ELECTRICITY REGULATORY COMMISSION,
PETITION
FOR
FINAL TRUE-UP FOR FY 2011-12 TO FY 2015-16,
&
AGGREGATE REVENUE REQUIREMENT
FOR THE
FY 2016-17 TO FY 2018-19
BY TAMIL NADU TRANSMISSION CORPORATION LTD
CHENNAI
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page II
Table of Contents
1. INTRODUCTION ............................................................................................................................................. 1
1.1 PREAMBLE ................................................................................................................................................ 1
1.2 BACKGROUND ........................................................................................................................................... 1
1.3 FINAL TRANSFER SCHEME ............................................................................................................................ 2
2. OVERALL APPROACH FOR PRESENT FILING .................................................................................................... 4
2.1 PRESENT APPROACH................................................................................................................................... 4
2.2 DATA/INFORMATION FOR ARR-APR ............................................................................................................ 5
2.3 REGULATORY FRAMEWORK .......................................................................................................................... 5
2.4 SUMMARY OF ASSUMPTIONS ....................................................................................................................... 5
3. FINAL TRUE UP FOR FY 2011-12 TO FY 2015-16 ............................................................................................. 7
3.1 BACKGROUND ........................................................................................................................................... 7
3.2 OPERATION & MAINTENANCE EXPENSES ........................................................................................................ 7
3.3 CAPEX AND CAPITALISATION ..................................................................................................................... 10
3.4 GFA AND DEPRECIATION .......................................................................................................................... 12
3.5 INTEREST CALCULATIONS ........................................................................................................................... 13
3.6 WORKING CAPITAL AND INTEREST ON WORKING CAPITAL ............................................................................... 14
3.7 REASONABLE RATE OF RETURN ON EQUITY ................................................................................................... 15
3.8 OTHER INCOME ....................................................................................................................................... 16
3.9 OTHER DEBITS, CAPITALISED EXPENSES, EXTRA-ORDINARY ITEMS & PRIOR PERIOD EXPENSES................................ 17
3.10 INCENTIVE .............................................................................................................................................. 18
3.11 REVENUE FROM TRANSMISSION CHARGES .................................................................................................... 18
3.12 AGGREGATE REVENUE REQUIREMENT AND REVENUE GAP ............................................................................... 19
4. ANNUAL REVENUE REQUIREMENT FOR FY 2016-17 TO FY 2018-19 ............................................................. 20
4.1 BACKGROUND ......................................................................................................................................... 20
4.2 OPERATION & MAINTENANCE EXPENSES ...................................................................................................... 20
4.3 CAPITALISATION OF REVENUE EXPENSES ....................................................................................................... 23
4.4 CAPITAL EXPENDITURE AND CAPITALISATION ................................................................................................. 23
4.5 GFA AND DEPRECIATION .......................................................................................................................... 26
4.6 INTEREST CALCULATION ............................................................................................................................ 27
4.7 WORKING CAPITAL AND INTEREST ON WORKING CAPITAL ............................................................................... 28
4.8 REASONABLE RETURN ON EQUITY ............................................................................................................... 28
4.9 OTHER DEBITS AND PRIOR PERIOD ITEMS ...................................................................................................... 29
4.10 INCENTIVES ............................................................................................................................................. 29
4.11 INSURANCE ............................................................................................................................................. 29
4.12 OTHER INCOME ....................................................................................................................................... 30
4.13 OTHER DEBITS AND PRIOR PERIOD INCOME .................................................................................................. 31
4.14 ANNUAL REVENUE REQUIREMENT ............................................................................................................... 31
5. PRAYER TO THE PETITION ............................................................................................................................ 32
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page III
LIST OF TABLES
Table 1: Employee Expenses for FY 2011-12 to 2015-16 - Rs. Crs ................................................................ 8
Table 2: A&G Expense for FY 2011-12 to FY 2015-16 – Rs. Crs ..................................................................... 9
Table 3: R&M Expense for FY 2011-12 to FY 2015-16 – Rs. Crs .................................................................... 9
Table 4: R&M Expenses as compare to GFA – Rs. Crs ................................................................................ 10
Table 5: O&M Expenditure for FY 2011-12 to FY 2015-16 – Rs. Crs ........................................................... 10
Table 6: Capital Expenditure and Capitalisation from the FY 2011-12 to FY 2015-16 – Rs. Crs ................. 11
Table 7: Transmission Capacity – Lines and Substation Commissioned ..................................................... 12
Table 8: Enhancement of Power Transformers .......................................................................................... 12
Table 9: GFA and Depreciation for FY 2011-12 to FY 2015-16 – Rs. Crs ..................................................... 12
Table 10: Interest and Finance Charges for FY 2011-12 to FY 2015-16 – Rs. Crs ....................................... 14
Table 11: Interest on Working Capital for FY 2011-12 to FY 2015-16 – Rs. Crs .......................................... 15
Table 12: RoE for FY 2011-12 to FY 2015-16 – Rs. Crs ................................................................................ 16
Table 13: Other Income for FY 2011-12 to FY 2015-16 – Rs. Crs ................................................................ 16
Table 14: Other Debits, Capitalised Expenses, Extra Ordinary Items & Prior Period Expenses – Rs. Crs ... 18
Table 15: Incentive for FY 2011-12 to FY 2015-16 - Rs. Crs ........................................................................ 18
Table 16: Revenue from FY 2011-12 to FY 2015-16 – Rs. Crs ..................................................................... 18
Table 17: Aggregate Revenue Requirement for FY 2011-12 to FY 2015-16 – Rs. Crs ................................. 19
Table 18: Employee Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs....................................................... 21
Table 19: A&G Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs ............................................................... 22
Table 20: R&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs .............................................................. 22
Table 21: O&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs .............................................................. 23
Table 22: Capitalisation of expenses for FY 2016-17 to FY 2018-19 – Rs. Crs ............................................ 23
Table 23: Summary of schemewise CAPEX and Capitalisation for FY 2016-17 to FY 2018-19 – Rs. Crs ..... 24
Table 24: Sources of funding of CAPEX – Rs. Crs ........................................................................................ 24
Table 25: GFA and Depreciation for FY 2016-17 to FY 2018-19 – Rs. Crs ................................................... 27
Table 26: Interest and Finance Charges for FY 2016-17 to FY 2018-19 - Crs .............................................. 28
Table 27: Interest on Working Capital for FY 2016-17 to FY 2018-19 – Rs. Crs .......................................... 28
Table 28: RoE for FY 2016-17 to FY 2018-19 – Rs. Crs ................................................................................ 29
Table 29: Impact of CERC order for 5 Inter-State Transmission Lines – Rs. Crs.......................................... 30
Table 30: Other Income from FY 2016-17 to FY 2018-19 – Rs. Crs ............................................................. 30
Table 31: Annual Revenue Requirement for FY 2016-17 to FY 2018-19 – Rs. Crs ...................................... 31
List of Annexure
Annexure 1: Final Transfer Scheme notification dated August 2015
Annexure 2: Audited Balance Sheet of TANTRANSCO for 5 years (FY 12 to FY 16)
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page IV
List of Abbreviations
Sr.
No Abbreviations Descriptions
1. A&G Administration and General Expenses
2. APR Annual Performance Review
3. APTEL Appellate Tribunal
4. ARR Annual Revenue Requirement
5. AS Accounting Standard
6. AT&C Aggregate Technical & Commercial
7. CAG Comptroller Auditor General
8. CAPEX Capital Expenditure
9. CERC Central Electricity Regulatory Commission
10. Ckt Km Circuit Km
11. CPS Contributory Pension Scheme
12. Crs Crores
13. CTU Central Transmission Utility
14. DA Dearness Allowance
15. EA Electricity Act 2003
16. FY Financial Year
17. GFA Gross Fixed Assets
18. GoTN Government of Tamil Nadu
19. Hr Hour
20. HTLS High Temperature Low Sag
21. IPP Independent Power Producer
22. JICA Japan International Cooperation Agency
23. KERC Karnataka Electricity Regulatory Commission
24. KPTCL Karanataka Power Transmission Corporation Limited
25. kV kilo Vatt
26. LL Line Loss
27. MERC Maharashtra Electricity Regulatory Commission
28. MoP Ministry of Power
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page V
Sr.
No Abbreviations Descriptions
29. MoU Memorandum of Understanding
30. MPP Merchant Power Plant
31. MVA Mega Volt Ampere
32. MW Megawatt
33. MYT Multi-Year Tariff
34. NCES Non-Conventional Energy Sources
35. Nos Numbers
36. O&M Operation & Maintenance
37. PFC Power Finance Corporation
38. R&M Repairs & Maintenance
39. R-APDRP Restructured Accelerated Power Development and
Reforms Programme
40. REC Rural Electrification Corporation
41. RoE Return on Equity
42. RoW Right of Way
43. SLDC State Load Despatch Centre
44. SS Substation
45. STOA Short Term Open Access
46. STU State Transmission Utility
47. TANGEDCO Tamil Nadu Generation and Distribution Corporation Ltd
48. TANTRANSCO Tamil Nadu Transmission Corporation Ltd
49. TNEB Tamil Nadu Electricity Board
50. TNERC Tamil Nadu Electricity Regulatory Commission
51. TPC Tata Power Company
52. UG Underground
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 1
1. INTRODUCTION
1.1 Preamble
1.1.1 This section presents the background and reasons for filing of this Petition.
1.2 Background
1.2.1 Tamil Nadu Electricity Board (TNEB) came into existence on 1st July 1957 and has
been in the business of generation, transmission and distribution of electricity in
the state of Tamil Nadu. The Electricity Act 2003 mandates unbundling of State
Electricity Boards under section 131.
1.2.2 Over the last few decades, there has been significant interest in opening the
Electricity sector to competition and, by extension, interest in designing
electricity markets to push the sector toward more efficient outcomes.
Accordingly, the Electricity Act, 2003 (“the Act” or “EA 2003”) was enacted with
effect from June 10, 2003 which requires the State Governments to initiate major
changes in the Industry Structure and Operations of the state power sector. The
objective of the enactment was to make competition feasible or desirable in a
sector that has been vertically integrated and highly regulated and State owned.
1.2.3 In line with the Electricity Act 2003, Sections 131 to 134 mandates reorganisation
of the State Electricity Boards into functional entities and corporatisation of the
same. Regardless of the design of the electricity sector reforms, the ultimate goal
of reforms is to make the sector more efficient. Therefore, in order to meet the
requirements under the Act and to become more efficient and competitive, the
Government of Tamil Nadu (GoTN) and the Tamil Nadu Electricity Board (TNEB)
proposed to restructure the state power sector.
1.2.4 In accordance with the above mandate the Government of Tamil Nadu (GOTN)
has given in principle approval for the re-organization of TNEB by the
establishment of a holding company, named TNEB Ltd and two subsidiary
companies, namely Tamil Nadu Transmission Corporation Limited (TANTRANSCO)
and Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO)
vide G.O.Ms.No.114 Energy (B2) Department dated 8th Oct 2008 with the
stipulation that the aforementioned companies shall be fully owned by
Government.
1.2.5 Based on the approval of Memorandum of Association and Articles of Association
of TANTRANSCO by the Government of Tamil Nadu vide G.O.Ms.No.38 Energy
(B2) Department dated 21st May 2009, Tamil Nadu Transmission Corporation Ltd
(TANTRANSCO) was incorporated on 15th June 2009 with an authorized share
capital of Rs. 5.00 Crores. The Certificate of commencement of business has been
obtained for the TANTRANSCO on 11th Dec 2009 and started functioning with
effect from 14th Jan 2010 onwards.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 2
1.2.6 The proposal for Assets Transfer and Employee transfer called as Tamil Nadu
Electricity Board (Reorganization and Reforms) Transfer Scheme 2010 has been
notified by Government of Tamil Nadu vide G.O. (Ms).No.100 Energy (B2)
Department dated 19th Oct 2010 with the effective date of implementation as 1st
Nov 2010. Based on the above notification TNEB has been unbundled and re-
organized from 1st Nov 2010.
1.2.7 As per the Transfer Scheme the Provisional period for transfer of Assets is 1 year
and for transfer of employees is 3 years. From 1st Nov 2010 onwards all the
employees of the erstwhile TNEB shall stand transferred to and absorbed in
TANGEDCO on a provisional basis and assigned to the services of the relevant
transferee viz., TANTRANSCO and TNEB Ltd., on deputation on “as-is-where-is”
basis until further notice for permanent absorption into respective entities.
1.2.8 Subsequently, as per the request of TNEB Limited, the second provisional transfer
scheme was notified by the State Government vide G.O. (Ms.) No.2, Energy (B2)
department, dated 2ndJanuary 2012 with amendment in the restructuring of
Balance Sheet of TNEB for the successor entities i.e. TANGEDCO and
TANTRANSCO, considering the audited balance sheet of TNEB for FY 2009-10 and
have extended the provisional time for final transfer of assets and liabilities to
the successor entities of erstwhile TNEB upto 31st Oct 2012.
1.2.9 Subsequently, the audited balance sheet as on 31.10.2010 was ready and as a
result final transfer scheme was notified by the Government of Tamilnadu vide
G.O.Ms No.49, Energy (B1) department, dated 13th August 2015, which is the final
amendment to the earlier transfer scheme (G.O. (Ms).No.100 Energy (B2)
Department dated 19th Oct 2010 and G.O. (Ms.) No.2, Energy (B2) department,
dated 2nd January 2012) which gave effect to the transfer of assets and liabilities
to successor entities of erstwhile TNEB as on 01.11.2010.
1.2.10 Post restructuring, TANTRANSCO as per the notification was provided with the
function of transmission of electricity in the State of Tamil Nadu.
1.2.11 Also, TANTRANSCO has been notified as an State Transmission Utility under
section 39 of the Electricity Act 2003 and TANTRANSCO is acting as a State
Transmission Utility and a Transmission Licensee also and has to comply with the
duties specified in section 39 and 40 of the Electricity Act 2003.
1.2.12 The enactment of the Electricity Act, 2003 has opened up the power sector for
competition in all spheres of activities. TANTRANSCO as the State Transmission
Utility is entrusted with the duty of transmitting the power generated in the state
from the generating stations to the destination or the load centres.
1.3 Final Transfer Scheme
1.3.1 In terms of the Transfer Scheme notification dated 13th August 2015, the
Government of Tamil Nadu had assigned the Assets and Liabilities (as on
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 3
31.10.2010) to TANTRANSCO on a final basis. The notified copy of Transfer
Scheme is attached as per Annexure 1.
1.3.2 Impact of Final Balance Sheet:
The transfer value of the Fixed Assets forming part of Schedules A, B and C of
the respective Transferees have been done at book valuesexcluding the land,
buildings, plant and machineries, lines, cables and network, whichare revalued
based on the guideline value resulting into Revaluation Reserve ofRs.7164
Crores for TANTRANSCO.
For the Purpose of Return on Equity, Equity Capital of Rs. 1506.15 Crores
has been considered as per the final transfer scheme.
Long Term Loan has been considered as Rs. 12695 Crores in line with the
notified balance sheet and interest is calculated on the actual basis which
was accrued from 1st November 2010 to 31st March 2011 and the
differential treatment between provisional and final transfer scheme has
been adjusted in FY 2015-16. Some of the generic loans such as bonds,
loan from HUDCO, LIC, Tamil Nadu Powerfin and Medium Term Loan is
availed by erstwhile TNEB and has been considered as the long term loan
of TANTRANSCO.
The allocation of fixed assets and Loans are similar and has been
transferred under the Final Transfer scheme resulting in additional burden
of the debt obligation on TANTRANSCO. It is requested to the Hon’ble
Commission to consider the fund flow issues resulted due to such
arrangement.
The transfer value of the fixed assets are determined based on revenue
potentials of the asset and in line with the provisions of the Act.
The Opening balance sheet of TANTRANSCO includes assets and liabilities
of SLDC
TANTRANSCO submits that the opening balance sheet as per final transfer
scheme has been considered for the calculation of ARR in the given
petition.
It is submitted that the impact of the final transfer scheme has been
carried out under prior period item in FY 2015-16.
TANTRANSCO request the Hon’ble Commission to allow the variation in
expenses with respect to Final transfer scheme and allow the same to
adjust in the ARR in the current petition.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 4
2. OVERALL APPROACH FOR PRESENT FILING
2.1 Present Approach
2.1.1 As per the TNERC (Terms and Conditions for Determination of Tariff) Regulations,
2005, the licensee has to file the Aggregate Revenue Requirement (ARR) on or
before 30th November of each year in the format prescribed, containing the
details of the expected aggregate revenue that the licensee is permitted to
recover at the prevailing tariff and the estimated expenditure. In line with
the same, TANTRANSCO is filing the petition for determination of ARR for
consideration of the Hon’ble Commission in the formats laid down for providing
information relating to past, current and future performance.
2.1.2 Further, as per TNERC (Terms and Conditions for Determination of Tariff)
Regulations, 2005 and its subsequent amendments, the application for
determination of ARR for Transmission Licensee shall be accompanied by
information in the formats provided by the Hon’ble Commission for the previous
years, current year and ensuing years. Thus, TANTRANSCO is filing the petition for
its transmission businesses alongwith the required formats.
2.1.3 As per the Amendment to Tamil Nadu Electricity Regulatory Commission Terms
and conditions for determination of tariff for intra state transmission /
Distribution of Electricity under MYT framework Regulations 2009 dated 28th
November 2012, the control period is defined as:
“(i) Control Period: The control period under the MYT framework shall be for a duration
of 3 years. The year preceding the first year of the control period shall be the base
year.;”.
Based on the above amendment, the control period for TANTRANSCO will be
from FY 2013-14 to FY 2015-16 and then from FY 2016-17 to FY 2018-19.
2.1.4 In line with the same, TANTRANSCO filed its MYT Petition for the Control Period
(FY 2013-14 to FY 2015-16) and Tariff Determination for consideration of the
Hon’ble Commission. Based on this petition and after considering views of the
State AdvisoryCommittee and the public, Tamil Nadu Electricity Regulatory
Commission passed the second Order on 20-06-2013.
2.1.5 The Commission initiated suo-motu proceedings for tariff determination
inaccordance with section 62 and 64 of the Act and determined the ARR for FY
2014-15 in its order dated 11.12.2014.
2.1.6 In accordance with section 62 of the Electricity Act 2003 and Regulation 5 of the
TNERC (Terms and Conditions for Determination of Tariff) Regulations, 2005,
TANTRANSCO is now filing this present petition for approval of the True-up from
FY 2011-12 to FY 2015-16 based on the audited annual accounts. This Petition
also includes the determination of Aggregate Revenue Requirement (ARR) for FY
2016-17 to FY 2018-19.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 5
2.1.7 The approved figures considered for FY 2011-12 to FY2014-15 are in line with
suo-moto order dated 11th December 2014 and for FY 2015-16, the reference
considered is in line with the tariff order dated 20thJune 2013.
2.2 Data/Information for ARR-APR
2.2.1 This petition contains the truing-up of the ARR of FY 2011-12 to FY 2015-16,
figures of which are based upon the audited annual accounts which is annexed to
this petition as per Annexure 2. The ARR for FY 2016-17 to FY 2018-19 has been
projected based on the past performance and expected growth in each of the
cost element and revenue for the ensuing year. TANTRANSCO has studied the
past trends and other internal and external developments to estimate the
projections for FY 2016-17 to FY 2018-19.
2.2.2 The ARR indicated in the above Para, is inclusive of Foreign Exchange Rate
Variation (applicable to JICA and KFW Loans) and exclusive of any statutory taxes,
levies, duties, cess, filing fees or any other kind of imposition(s) and/ or other
surcharges etc. whatsoever imposed/ charged by any Government
(Central/State) and/ or any other local bodies/ authorities/regulatory authorities
in relation to transmission of electricity, environmental protection, and/ or in
respect of any of its installation associated with the Transmission system and the
same shall be borne and additionally paid by the beneficiaries to the applicant
and the same shall be charged in the monthly bills raised by the petitioner on the
beneficiaries. The applicant shall also claim the filing fee in the same manner.
2.2.3 The current Petition filed by TANTRANSCO is for the approval of Annual Revenue
Requirement from FY 2011-12 to FY 2018-19.
2.3 Regulatory Framework
2.3.1 TANTRANSCO has considered Norms as specified by TNERC Tariff Regulations
2005, TNERC MYT Regulations 2009 and its subsequent amendment. However
certain deviation has been considered with a justification for the purpose of this
Petition and request the Hon’ble Commission to approve the same.
2.4 Summary of Assumptions
2.4.1 TANTRANSCO has premised its ARR petition while projecting its revenue
requirements on the following:
a. The figures of FY 2015-16have been considered for creation of baseline data
against various heads.
b. Escalation Factors have been considered for projecting certain expenses on a
realistic basis.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 6
c. In the tariff order dated 20th June 2013, the Hon’ble Commission has
undertaken true-up for FY 2010-11 and therefore the same has not been
considered in the submission.
d. The impact of the final transfer scheme has been considered in FY 2015-16 as
the final transfer scheme was issued in FY 2015-16. The adjustment of the
revenue expenditure has been undertaken in the prior period items in line
with the accounting standard.
e. Considering the debt profile allotted to TANTRANSCO, it has claimed the total
actual interest in line with the accounts. However, the debt repayment is
much higher than the depreciation amount claimed in the petition resulting in
a major cash flow issue for TANTRANSCO.
f. Under the final transfer scheme, the clean balance sheet was provided to the
successor entities resulting in the revaluation of the assets. TANTRANSCO has
claimed the depreciation on the total book value of the assets and has not
claimed any depreciation on the revalued assets.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 7
3. FINAL TRUE UP FOR FY 2011-12 TO FY 2015-16
3.1 Background
3.1.1 TANTRANSCO in its previous petitions had submitted the provisional figures of
ARR for the year FY 2011-12 onwards. Now, TANTRANSCO in this chapter submits
the actual performance based on the audited accounts for true up from FY 2011-
12 to FY 2015-16 whereby the impact of the final transfer scheme has been
considered in FY 2015-16. This chapter summarizes each of the components of
Annual Transmission Charges for FY 2011-12 to FY 2015-16 and requests the
Hon’ble Commission to true - up the Annual Revenue Requirement.
3.1.2 The approved figures considered for FY 2011-12 to FY2014-15 are in line with
suo-moto order dated 11th December 2014 and for FY 2015-16, the reference
considered is in line with the tariff order dated 20th June 2013.
3.1.3 A comparison of the figures approved by the Hon’ble Commission and figures
based on audited accounts are shown in the table under relevant sections
discussed herein:
3.2 Operation &Maintenance Expenses
3.2.1 Operation & Maintenance Expenses consists of three elements viz Employee
Expenses, A&G Expense and R&M Expense:
Employee expenses comprise of salaries, dearness allowance, bonus, terminal
benefits in the form of pension & gratuity, leave encashment and staff welfare
expenses;
Administrative expenses mainly comprise of rents, telephone and other
communication expenses, professional charges, conveyance and travelling
allowances and other debits;
Repairs and Maintenance Expenses go towards the day to day upkeep of the
transmission network of the Company and form an integral part of the
Company’s efforts towards reliable and quality power supply as also in the
reduction of losses in the system.
3.2.2 Employee Expense:
3.2.2.1 As stated in the paragraph above, Employee Expense consists of Basic Salary,
Dearness Allowance, Bonuses, Medical expense reimbursement and Terminal
Benefits etc.The Employee Expenses for TANTRANSCO for the year FY 2011-
12to FY 15-16is outlined in the table below:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 8
Table 1: Employee Expenses for FY 2011-12 to 2015-16- Rs. Crs
Particulars Approved Audited Approved Audited Approved Actual Approved Actual Approved Actual
Salary 190.94 182.92 198.58 185.95 206.52 209.27 218.34 229.74 223.38 257.04
Dearness Allowance 106.11 103.72 143.47 132.41 185.87 184.90 241.31 234.66 245.45 299.43
Other Allowances 14.96 14.88 15.56 14.37 16.19 16.66 17.11 16.71 17.51 18.51
Overtime Wages 3.14 5.37 3.27 1.31 3.40 1.68 3.59 6.67 3.67 12.38
Bonus 6.28 5.47 6.53 6.16 6.79 6.96 7.18 7.07 7.35 7.76
Leave Travel Assistance - 0.05 - 0.03 - 0.02 - 0.02 - 0.04
Earned Leave Encashment - 19.86 - 20.15 - 23.45 - 26.71 - 33.84
Medical Expense reimbursement - 0.37 - 0.33 - 0.53 - 0.39 - 0.23
Payment Under Workman'S
Compensation And Gratuity - - - - - 2.92 - 4.79 - 4.70
Board's Contribution to CPS - 5.91 - 4.61 - 7.24 - 9.09 - 13.25
Staff Welfare Expenses - 0.20 - 0.11 - 0.18 - 0.60 - 0.41
Terminal Benefits 230.52 22.06 239.74 214.46 249.33 246.19 263.59 293.63 269.67 317.40
Other Expenses 24.77 - 25.76 - 26.79 - 28.32 - 28.97 -
Grand Total 576.72 360.81 632.91 579.89 694.89 700.01 779.44 830.08 796.00 964.99
FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13
3.2.2.2 The basic reasons for deviation in Employee expenses is increase in Terminal
benefits and Dearness allowance. Also, While finalising the Accounts for the
FY 2012-13 it was decided to share the total terminal benefits that was totally
incurred by TANGEDCO in the ratio of 6.:1 between TANGEDCO and
TANTRANSCO and accordingly the 1/7 of the total terminal benefits was
accounted under Employees cost in the account of TANTRANSCO. For the FY
2011-12 the respecive share amount was accounted under prior period
expenses.
3.2.3 A&G Expenses:
3.2.3.1 Administration and General Expenses consists of expenses pertaining to Rent,
Rates, Taxes, Telephone and Postage, Printing and Stationary, Electricity and
Water Charges, Advertisements Expenses etc. Actual A&G Expense for the FY
2011-12 to FY 2015-16 is as shown below:-
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 9
Table 2: A&G Expense for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars Approved Audited Approved Audited Approved Actual Approved Actual Approved Actual
Rent, Rates & Taxes 0.44 0.88 0.70 0.67 0.81
Telephone, Postage & Telegrams 0.89 1.16 1.09 1.05 1.12
Consultancy Charges 0.10 0.55 2.64 0.26 -
Conveyance & Travel 8.74 10.95 10.28 12.67 13.83
Registrar of Companies 1.97 0.29 0.02 - -
Insurance 0.04 0.07 0.07 0.04 0.08
Fees & Subscriptions 0.22 0.02 0.01 0.00 0.01
Books & Periodicals 0.01 0.00 0.00 0.00 0.01
Printing & Stationery 0.61 0.52 0.42 0.41 0.41
Advertisement Expenses 0.08 0.07 0.08 0.12 0.20
Petty Office Maintenance Expense 0.70 0.67 0.15 0.15 0.23
Electricity Charges 0.36 0.47 1.28 0.90 1.02
Water Charges / Cold weather expenses 0.23 0.14 0.20 0.20 0.22
Miscellaneous Expenses 0.59 0.28 0.82 1.16 0.94
Legal Charges 0.13 0.65 1.01 0.24 1.11
Audit Fee/Statutory Audit Fee 0.04 0.05 0.06 0.07 0.07
Technical Fees - 0.03 0.06 0.06 0.08
Freight Material related Expenses 0.92 1.27 1.86 1.72 2.49
Other Purchase Related Expenses 0.14 0.14 0.41 0.17 0.16
Entertainment Charges 0.04 - - - -
Training Expense 0.20 0.03 0.08 0.26 0.15
Public Expenses / Other professinal charges 0.03 0.03 0.06 0.00 0.00
Watch and Ward Expense 3.15 5.01 5.33 6.19 7.63
Honororium (Food Allwo.) for SO in Chennai - - - - 0.03
Total Admin and General Expenses 17.40 19.62 19.45 23.27 20.23 26.62 21.38 26.34 21.88 30.61
FY 2015-16FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15
3.2.3.2 TANTRANSCO request the Hon’ble Commission to approve the actual A&G
cost as per the audited balance sheets.
3.2.4 Repair & Maintenance Expenses:
3.2.4.1 R&M Expenses are generally incurred on maintaining the transmission assets
in order to ensure uninterrupted operations. TANTRANSCO would like to
submit that the current infrastructure of transmission system is old and the
majority of the assets has already lapsed their life. To maintain the assets in a
more efficient way, TANTRANSCO has been carrying out the repair and
maintenance activities. The R&M expense for the year FY 2011-12to FY 2015-
16 is shown below:
Table 3: R&M Expense for FY 2011-12 to FY 2015-16 – Rs. Crs
Details
Particulars Approved Audited Approved Audited Approved Actual Approved Actual Approved Actual
Plant & Machinery 3.73 3.64 3.88 5.21 4.03 8.30 4.26 6.63 4.36 8.76
Buildings 0.08 0.08 0.09 0.02 0.09 0.47 0.10 0.53 0.10 0.16
Civil Works 0.26 0.29 0.27 0.19 0.28 0.24 0.30 0.61 0.31 0.43
Lines, Cables Networks & DTR Repair 3.45 3.42 3.59 1.64 3.74 2.80 3.95 2.51 4.04 3.38
Vehicles 0.37 0.37 0.38 0.31 0.40 0.42 0.42 0.44 0.43 0.49
Office Equipments 0.15 0.16 0.16 0.17 0.17 0.32 0.18 0.30 0.18 0.31
Furniture & Fixtures 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01
Total Expenses 8.05 7.98 8.38 7.53 8.71 12.55 9.21 11.02 9.42 13.53
FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 10
3.2.4.2 It is submitted that the R&M expenses as compare to GFA is under 1% which
is far below than the approach adopted by the Hon’ble Commission in its last
suo-moto tariff order for consideration of 3.3% of GFA. The same is
highlighted in the table below:
Table 4: R&M Expenses as compare to GFA – Rs. Crs
Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
R&M Expenses 7.98 7.53 12.55 11.02 13.53
Average GFA 4,558 4,859 5,741 8,114 10,854
% of R&M Expenses 0.18% 0.16% 0.22% 0.14% 0.12%
3.2.4.3 TANTRANSCO request the Hon’ble Commission to approve the actual R&M
cost as per the audited balance sheets.
3.2.5 Operation and Maintenance Expenses
3.2.5.1 Based on the above tables, the actual performance related to O&M Expenses
(Pre-capitalisaiton) for the year FY 2011-12to FY 2015-16is outlined in the
table below:
Table 5: O&M Expenditure for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
Employee Expense 576.72 360.81 632.91 579.89 694.89 700.01 779.44 830.08 796.00 964.99
Administration & General Expense 17.40 19.62 19.45 23.27 20.23 26.62 21.38 26.34 21.88 30.61
Repair & Maintenance Expense 8.05 7.98 8.38 7.53 8.71 12.55 9.21 11.02 9.42 13.53
Total 602.17 388.41 660.74 610.69 723.83 739.18 810.03 867.44 827.30 1,009.13
FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13
3.2.5.2 As seen from the above table, the actual O&M expense for the year FY 2011-
12 was Rs.388.41 Crs and FY 2012-13 was Rs.610.69 Crs which is lower than
the cost as approved by the Hon’ble Commission. Also, for the year FY 2013-
14 was Rs. 739.18Crs, for FY 2014-15 was Rs.867.44 Crs and for FY 2015-16
was Rs.1009.13 Crs.Therefore, TANTRANSCO requests the Hon’ble
Commission to approve the same.
3.2.5.3 TANTRANSCO submits that the staff transfer scheme is not yet been finalised
and employees are working on a deputation basis on “As is where is basis”.
TANTRANSCO request Hon’ble Commission to consider such additional cost
post final staff transfer as and when arises.
3.3 CAPEX and Capitalisation
3.3.1 Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v)of the Tariff
Regulation under MYT framework specifies that the licensee shall get the capital
investment plan approved by the Commission before filing of ARR and
Application for determination of Tariff. In line with the direction of APTEL Order
in Appeal No 197 of 2013 dated 18th October 2014, TANTRANSCO has submitted
the actual scheme-wise details of asset additions during the FY 2013-14 and the
application for Capital Investment Plan for FY 2014-15 and 2015-16 in the
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 11
requisite formats to the State Commission for approval as per the Tariff
Regulation. The Hon’ble Commission has approved the capital expenditure and
capitalisation for the FY 2014-15 and FY 2015-16.
3.3.2 TANTRANSCO submits that the expenditure incurred in each of the operational
circles is on account of regular need based repairs and maintenance works like
replacement of worn-out apparatus, damaged equipments, transformers, repairs
on account of overhead transmission lines etc which are necessary works to be
carried out for efficient working of the transmission system.
3.3.3 The capitalization for FY 2011-12 to FY 2015-16 is on account of the following
reasons
o Improvement in Tail End Voltage Levels;
o Avoidance of System Overloading;
o To provide load relief and to meet out the load growth in particular
area;
o To evacuate Power from various sources;
o Reduction in Line Loss;
3.3.4 It is submitted that TANTRANSCO had spent significant amount of capital
expenditure for construction of transmission lines and sub-stations during the
said financial years. TANTRANSCO has incurred capital expenditure and
undertaken capitalisaiton as detailed below:
Table 6: Capital Expenditure and Capitalisation from the FY 2011-12 to FY 2015-16 – Rs. Crs
Description FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Capital Expenditure 1044.60 1412.17 2204.55 3200.04 2133.63
Net Capitalization 171.49 430.97 1331.92 3414.11 2065.29
3.3.5 Based on the above CAPEX and capitalisation, the following lines and substation
were commissioned from FY 2011-12 to FY 2015-16:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 12
Table 7: Transmission Capacity – Lines and Substation Commissioned
Details
Rating of SS Nos. MVA Nos. MVA Nos. MVA Nos. MVA Nos. MVA
400 KV 1 630 -- -- -- -- 2 1460 0 0
230 KV -- -- 2 300 4 580 4 700 9 1800
110 KV 13 232 18 297 43 615 40 657 35 605
66 KV -- -- -- -- -- -- -- -- -- 0
Total 14 862 20 597 47 1195 46 2817 44 2405
400 KV OH Line
230 KV OH Line
/UG Cable
230 KV cable
110 KV OH line
110 KV cable
Total 691.00 1267.86 1436.39 2634.15 1987.68
971.48 1059.26
10.74
915.72
2.78
155.04 95.97 391.33
20.3412.37
462.00
15.00
252.59
752.09
2.12
16.00 261.06 297.50 1468.18 657.53
198.00
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Substations
Lines - Ckt km
3.3.6 TANTRANSCO submits that in addition to above, works for enhancement of
power transformer was also undertaken. The details are as follows:
Table 8: Enhancement of Power Transformers
No. MVA No. MVA
400 KV 3 715
230 KV 20 1270 6 360
110 KV 268 3131 89 1100
66 KV 1 7.5
Total 291 5116 96 1467.5
FY 2011-12 to FY
2014-15FY 2015-16
Rating of SS
3.3.7 It is submitted to the Hon’ble Commission to allow the actual CAPEX and
capitlaisation incurred during FY 2011-12 to FY 2015-16.
3.4 GFA and Depreciation
3.4.1 The actual depreciation charge as per the audited accounts for the year FY 2011-
12to FY 2013-14 is lower than the cost as approved by the Hon’ble Commission.
Table 9: GFA and Depreciation for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
Opening Gross Block 9,515.43 4,472.49 9,688.96 4,643.97 10,122.47 5,074.94 11,457.61 6,406.86 21,183.64 9,820.97
Closing Gross Block 9,688.96 4,643.97 10,122.47 5,074.94 11,457.61 6,406.86 9,820.97 11,886.26
Depreciation during the year 297.17 289.27 302.45 299.50 315.62 311.27 356.20 566.34 649.89 487.61
Rate of Depreciation 3.09% 6.35% 3.05% 6.16% 2.93% 5.42% 3.11% 6.98% 3.07% 4.49%
FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13
3.4.2 The GFA considered in the petition from FY 2011-12 is based on the final transfer
scheme without considering any impact of revaluation of assets. However, the
depreciation as considered is in line with the books of accounts which till FY
2014-15 was calculated based on the provisional transfer scheme. However, the
net impact on depreciation considering the effect from FY 2010-11 onwards has
been reflected in FY 2015-16 audited accounts under the head “Prior Period
Item” based on the final transfer scheme.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 13
3.4.3 It is submitted that major capitalisation was undertaken in past few years which
has resulted into increase in depreciation cost as compared to the cost as
approved by the Hon’ble Commission.
3.4.4 The Hon’ble Commission is requested to approve the depreciation as per the
audited accounts for FY 2011-12 to FY 2015-16.
3.5 Interest Calculations
3.5.1 In the current Petition, TANTRANSCO has claimed the interest expenses
corresponding to the loans provided to the Utilities in lieu of transfer scheme.
The opening balance of loans as on 1st November 2010 for
TANTRANSCO,considered in its Petition is based on the provisional transfer
schemenotified as on 2nd January 2012. However the adjustment related to the
final transfer scheme has been carried out in FY 2015-16.
3.5.2 It is submitted that the operational / revenue expenses are met by the utilities
from the transmission charges collected from the operation. However,
TANTRANSCO is borrowing loans for repayment of loans allocated to it through
provisional and final transfer scheme whereby it is still finding it difficult to
service the debt as provided in the transfer scheme. Also, in line with section 131
of the Electricity Act 2003, while issuing the tariff order, the Hon’ble commission
will be guided by the transfer scheme which is stated below:
Section 131 of Electricity Act 2003: “Vesting of Property of Board in State Government”
states as under:
(3) Notwithstanding anything contained in this section, where,-
(b) a transaction of any description is effected in pursuance of a transfer scheme, it
shall be binding on all persons including third parties and even if such persons or third
parties have not consented to it.” Emphasis Supplied
3.5.3 This approach was already adopted by the Hon’ble Commission in its earlier tariff
order and has also been accepted by the Hon’ble APTEL in its order on Appeal No
102 of 2012 dated 4th February 2013.
3.5.4 TANTRANSCO in its audited accounts has included interest on GPF, guarantee and
commitment charges under other finance charges, however, TANTRANSCO is not
claiming any interest on GPF in the submission.
3.5.5 TANTRANSCO would like to submit that the interest liability calculated and
accrued during the period of FY 2011-12to FY 2015-16 are on actual basis which
are calculated based on the loans of erstwhile TNEB. Since the same has been in
the books of the TANTRANSCO, it is an obligation of TANTRANSCO to service the
debt.
3.5.6 The interest calculation for the year FY 2011-12 to FY 2015-16is shown in the
table below:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 14
Table 10: Interest and Finance Charges for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars
Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
Op. Loan 13,938.70 11,952.99 11,641.91 9,656.20 9,739.43 8,253.72 10,823.85 8,838.13 18,926.22 10,210.10
Loan Additions during the year 1,026.78 526.78 699.43 699.43 2,370.58 1,870.58 3,312.87 2,181.87 3,462.39 5,175.19
Repayment during the year 3,323.57 2,823.57 2,601.91 2,101.91 1,286.16 1,286.16 1,651.95 809.90 2,361.39 4,536.90
Cl. Balance 11,641.91 9,656.20 9,739.43 8,253.72 10,823.85 8,838.13 12,484.77 10,210.10 20,027.22 10,848.38
Average Loan 12,790.31 10,804.59 10,690.67 8,954.96 10,281.64 8,545.93 11,654.31 9,524.12 19,476.72 10,529.24
Interest on Loan 1,367.89 1,313.94 1,297.18 1,278.11 1,247.55 658.27 1,414.10 845.53 2,050.38 1,256.27
Less: Interest Capitalized 240.95 240.95 271.69 271.69 455.46 223.92 410.04 291.35 271.37 319.53
Net Interest on Loan 1,126.94 1,072.99 1,025.49 1,006.42 792.09 434.35 1,004.06 554.18 1,779.01 936.74
Interest & Finance Charges 2.62 2.63 5.46 12.96 5.40 17.51 5.24 18.69 3.79 27.56
Total 1,129.56 1,075.62 1,030.95 1,019.38 797.49 451.86 1,009.30 572.87 1,782.80 964.30
Average Interest Rate 10.69% 12.16% 12.13% 14.27% 12.13% 7.70% 12.13% 8.88% 10.53% 11.93%
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
3.5.7 The Hon’ble Commission is requested to approve Interest on Loan and Interest &
Finance charges as well as interest capitalised for FY 2011-12 to FY 2015-16.
3.6 Working Capital and Interest on Working Capital
3.6.1 TANTRANSCO has claimed interest on working capital based on norms specified
in the TNERC Tariff Regulations, 2005.
3.6.2 In last orders, TANTRANSCO has not included interest expenses for short term
borrowings in long term loans and claimed interest on working capital separately
as per norms in line with approach adopted by the Hon’ble Commission.
3.6.3 Similar approach has been adopted in the current petition, whereby it is
submitted that TANTRANSCO would like to submit that though there is NIL
amount as interest on working capital, in the petition the same has been claimed
on the normative basis. It is submitted that TANTRANSCO has employed internal
sources to meet the demand of revenue expenditure for working capital and the
internal sources also carry cost. It is further submitted that such funds employed
elsewhere would have carried interest income. Also, the spares required for day
to day operations of Sub-Station and line are also met through working capital
3.6.4 As per APTEL Order No. 111 of 2008 dated 28th May 2009, it states as follows:
“It is true that internal funds also deserve interest in as much as the internal fund when
employed as working capital loses the interest it could have earned by investment
elsewhere. Further the licensee can never have any funds which has no cost. The internal
accruals are not like some reserve which does not carry any cost. Internal accruals could
have been inter corporate deposits, as suggested on behalf of the appellant. In that case the
same would also carry the cost of interest.
……………………………..Emphasis added”.
3.6.5 Further, the Tariff Regulations stipulates that rate of interest on working capital
shall be considered on normative basis and shall be equal to the short-term
Prime Lending Rate of State Bank of India as on 1st April of relevant year.
3.6.6 Based on the above order, TANTRANSCO is entitled on the interest on working
capital as shown in the table below:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 15
Table 11: Interest on Working Capital for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars
Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
O&M expenses for 1 Month 43.16 25.23 49.93 43.55 54.70 51.60 61.23 60.81 62.54 71.34
Maintenance Spares 95.16 49.14 96.89 53.55 101.22 67.15 114.58 102.08 211.84 124.76
Receivables 284.51 284.51 512.67 396.85 269.38 460.82 379.68 296.01 662.75 384.21
Total Working Capital 422.83 358.88 659.49 493.95 425.30 579.57 555.49 458.90 937.13 580.30
Rate of Interest on Working Capital 13.00% 13.00% 14.75% 14.75% 14.45% 14.75% 14.75%
Total Interest on Working Capital 54.97 46.65 97.27 72.86 61.46 83.75 80.27 67.69 135.41 85.59
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
3.6.7 TANTRANSCO request the Hon’ble Commission to approve the interest on
working capital as submitted in the petition.
3.7 Reasonable Rate of Return on Equity
3.7.1 Return on Equity for TANTRANSCO for the year FY 2011-12to FY 2012-13 has
been calculated based on the average equity for the corresponding year. This has
been done in line with the TNERC Regulations. The Normative Rate of Equity has
been taken at 14%.
3.7.2 TANTRANSCO would like to submit that the opening equity as on 31.3.2011 is
considered to be zero in line with the Tariff Order as issued by the Hon’ble
Commission on Suo-Moto Order dated 11th December 2014.However it is
submitted that the matter is still pending with Hon’ble Supreme Court and is
subjuidice. Therefore, TANTRANSCO reserves it’s rightto claim the RoE based on
the order of the Supreme court in future.
3.7.3 The Hon’ble Commission in its tariff order disallowed Opening Return on Equity
on the grounds that loan borrowing is more than the capital expenditure
incurred. However, TANTRANSCO would like to submit that a utility is entitled for
Return on Equity as the RoE earned is invested every year to carry out future
capacity additions. The relevant extracts of TNERC (Terms & Conditions of Tariff)
Regulation 2005 is reproduced herein:
21. Debt-Equity Ratio
For the purpose of determination of tariff, debt-equity ratio as on the date of commercial
operation of Generating Station and transmission projects, sub-station, distribution lines or
capacity expanded after the notification of these Regulations shall be 70:30. Where equity
employed is more than 30% the amount of equity shall be limited to 30% and the balance
amount shall be considered as loans, advanced at the weighted average rate of interest and
for weighted average tenor of the long term debt component of the investment”
“Provided that in case of a Generating Company or other licensees, where actual equity
employed is less than 30%, the actual debt and equity shall be considered for determination
of return on equity in tariff computation.” (Emphasis Added)
3.7.4 TANTRANSCO would like to submit that Return on Equity is a surplus generated
which entitles a utility to safeguard itself against any uneven contingencies or a
force majeure event in future. Also, clause 5.3(a) of the National Tariff Policy
states that:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 16
“Balance needs to be maintained between the interests of consumers and the need for
investments while laying down rate of return. Return should attract investments at par with,
if not in preference to, other sectors so that the electricity sector is able to create adequate
capacity. The rate of return should be such that it allows generation of reasonable surplus
for growth of the sector. (Emphasis Added)”
3.7.5 Also, APTEL order in case no. Appeal No. 84 of 2006 dated 29th August 2006, the
case for KPTCL v/s. KERC, states as follows:
The Appellate Tribunal observed that merely because there is no notification or allocation
indicating the capital or investment or such other sum cannot be reason enough to deny
return of equity.
3.7.6 Based on the above submission, TANTRANSCO is entitled on RoE on the opening
balance of equity as per the second transfer scheme.
3.7.7 The Reasonable Rate of Return on equity infused during FY 2011-12 to FY 2015-
16 is shown in the table below:
Table 12: RoE for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars
Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
Opening Equity - - 406.46 406.46 913.37 913.37 1,082.34 1,082.34 3,887.25 1,953.45
Additions during the year 406.46 406.46 506.91 506.91 168.97 168.97 872.23 871.10 751.50 254.54
Closing Equity 406.46 406.46 913.37 913.37 1,082.34 1,082.34 1,954.57 1,953.45 4,638.75 2,207.98
Average Equity 203.23 203.23 659.92 659.92 997.86 997.86 1,518.46 1,517.89 4,263.00 2,080.71
Total 28.45 28.45 92.39 92.39 139.70 139.70 212.58 212.51 596.82 291.30
FY 2013-14 FY 2014-15 FY 2015-16FY 2011-12 FY 2012-13
3.7.8 The RoE claimed for FY 2011-12 to FY 2015-16 is in line with the actual equity as
reflected in the audited accounts. Based on the foregoing paragraphs,
TANTRANSCO requests the Hon’ble Commission to approve the Reasonable Rate
of Return on Equity for FY 2011-12to FY 2015-16.
3.8 Other Income
3.8.1 TANTRANSCO submits that the other income includes interest on staff loans,
income from investment, interest from banks, income from short term open
access consumers in the form of operations and maintenance charges collected
from Wind Energy Generators and Captive Power Producers, etc. The total
income is highlighted as below:
Table 13: Other Income for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars
Approved Actual Approved Actual Approved Actual Approved Actual Approved Actual
Other Income 37.80 37.80 33.85 33.85 112.16 112.16 115.58 160.15 106.84 201.84
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
3.8.2 Based on the foregoing paragraphs, TANTRANSCO requests the Hon’ble
Commission to approve the Other Income for FY 2011-12 to FY 2015-16.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 17
3.9 Other Debits, Capitalised Expenses, Extra-Ordinary Items & Prior Period
Expenses
3.9.1 TANTRANSCO submits that Other Debits, Capitalised expenses, Extra-Ordinary
Items & Prior Period items incurred by TANTRANSCO for the yearfor FY 2011-12
to FY 2015-16 are claimed as per Audited accounts. It is submitted that the
adjustment related to final transfer scheme has also been reflected in FY 2015-16
in line with the accounting standard. The expenses capitalised are undertaken in
line with the company policy and the details of Other debits and Prior period
expenses are highlighted as below:
Details of Prior Period Expenses
Description for FY 2015-16 Rs. in Crs.
Prior period Expenses Interest & Finance charges: Interest on some generic loans (viz. Bonds, LIC, HUDCO & PFC) of the
erstwhile TNEB originally allotted to TANGEDCO subsequently transferred to TANTRANSCO and accounting of interest for such loans from 2010-11 to 2014-15.
1462.96
Insurance Reserve: Increase in 1% Insurance reserve due to increase in value of Net assets from 2010-11 to 2014-15 as per Final Transfer scheme.
404.99
Transmission charges excess accounted in the year 2014-15 Rs. 75.74 Crs. withdrawn during the year 2015-16
75.75
Prior period Income
Interest & Finance charges: Interest on Bank Term Loan which was previously accounted in TANTRANSCO now withdrawn due to FRP
836.35
Depreciation on Book Value of assets: The difference in depreciation on book value of the assets between the assets as per Provisional Transfer Scheme and Final Transfer Scheme – Rs. 807.78 Crs. withdrawn
807.78
Interest During Construction: Due to incorporation of revised Loan as per Final Transfer Scheme and consequent to increased interest, the interest during construction from 2010-11 to 2014-15 revised and difference accounted for
154.60
Excess GPF & CPS Interest provided in the Year 2014-15 withdrawn 9.03
Fixed charges of TANTRANSCO owned assets (Transformers) at Sriperumbudur and Salem utilized by M/s. PGCIL for evacuating power from NLC to Southern Region constituents including TANGEDCO
7.95
Other debits:
Other Debits – FY 2012-13 Rs. Crs
1. M/s. Lumino Industries / Kolkatta An amount of Rs.1.35 Crs is paid towards the principal amount due (Amount withheld for already supplied “Zebra Conductor” under the RCTR No.1679/10.05.2007) along with simple interest.
1.35
2. M/s. Laser Cables / Kolkatta An amount of Rs.1.09 Crs was paid towards the principal amount due withheld for already supplied control cables vide P.O.No. 1790, 1791, 1792 and 1793 along with simple interest.
1.09
3. M/s. Karuna Cables / Hyderabad An amount of Rs.3.83 was paid towards the supply of ‘Panther ACSR Conductor’ along with interest.
3.83
3.9.2 Based on the above submission, the approved and actual expenses are
highlighted as below:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 18
Table 14: Other Debits, Capitalised Expenses, Extra Ordinary Items & Prior Period Expenses – Rs. Crs
Particulars
Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
Other Debits 0.39 0.15 0.43 6.27 0.48 0.04 0.52 - 0.58 0.49
Prior Period Expense 1.56 3.74 - 291.95 -171.71 -11.23 145.83
Extra-Ordinary Item 2.32
Expenses Capitalised -84.31 -85.65 -61.61 -88.08 -67.38 -119.97 -75.26 -137.72 -76.87 -153.02
Total -82.36 -79.44 -61.18 210.14 -66.90 -291.64 -74.74 -148.95 -76.29 -6.69
FY 2011-12 FY 2012-13 FY 2014-15 FY 2015-16FY 2013-14
3.9.3 TANTRANSCO requests the Hon’ble Commission to approve other debits and
prior period expenses as showcased in the above table for the year FY 2011-12 to
FY 2015-16.
3.10 Incentive
3.10.1 As per TNERC (Terms & Conditions for determination of tariff) Regulations 2005,
a transmission licensee is entitled for an incentive at 1% of equity for each
percentage point of increase in annual availability beyond the target availability
i.e. 98%.
3.10.2 The incentive computation based on the actual availability is as under:
Table 15: Incentive for FY 2011-12 to FY 2015-16- Rs. Crs
Rs. Crs
S.no Particulars
Approved Actual Approved Actual Approved Actual Approved Actual Approved Actual
1 Equtiy 203.23 203.23 659.92 659.92 997.86 997.86 3,043.20 1517.89 4,263.00 2080.71
2 Annual Availability Achieved 99.54% 99.75% 99.54% 99.76% 98.95% 99.07% 99.54% 98.71% 99.54% 98.85%
3 Target Availability 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00%
4 Carrying cost 1.54
5 Incentive 3.13 3.56 10.16 11.61 7.94 10.72 46.87 10.81 65.65 17.63
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
3.10.3 TANTRANSCO request the Hon’ble Commission to approve the said cost in line
with the submission made by TANTRANSCO
3.11 Revenue from Transmission Charges
3.11.1 TANTRANSCO has considered the revenue from transmission charges for FY 2011-
12 to FY 2015-16 as per audited accounts after statutory audit as this is the actual
revenue received by the utility during the concerned years.
Table 16: Revenue from FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars
Approved Actual Approved Actual Approved Actual Approved Actual Approved Actual
Revenue from transmission charges 1,707.06 1,707.06 3,075.99 2,381.10 1,616.28 2,764.95 1,943.72 1,776.07 3,976.50 2,305.24
FY 2014-15 FY 2015-16FY 2013-14FY 2012-13FY 2011-12
3.11.2 Therefore, TANTRANSCO requests the Hon’ble Commission to approve the
Revenue from transmission charges as per the audited accounts.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 19
3.12 Aggregate Revenue Requirement and Revenue Gap
3.12.1 Based on the foregoing paragraphs, the Aggregate Revenue Requirement of
TANTRANSCO for the year FY 2011-12to FY 2015-16is shown in the table below:
Table 17: Aggregate Revenue Requirement for FY 2011-12 to FY 2015-16 – Rs. Crs
Particulars
Approved Actuals Approved Actuals Approved Actual Approved Actual Approved Actual
O&M Expense 602.17 388.41 660.74 610.69 723.83 739.18 810.03 867.44 827.30 1,009.13
Employee Expense 576.72 360.81 632.91 579.89 694.89 700.01 779.44 830.08 796.00 964.99
Administration & General Expense 17.40 19.62 19.45 23.27 20.23 26.62 21.38 26.34 21.88 30.61
Repair & Maintenance Expense 8.05 7.98 8.38 7.53 8.71 12.55 9.21 11.02 9.42 13.53
Other Debits 0.39 0.15 0.43 6.27 0.48 0.04 0.52 - 0.58 0.49
Depreciation 297.17 289.27 302.45 299.50 315.62 311.27 356.20 566.34 649.89 487.61
Net Interest & Finance Charges 1,129.56 1,075.62 1,030.95 1,019.38 797.49 451.86 1,009.30 572.87 1,782.80 964.30
Interest on working capital 54.97 46.65 97.27 72.86 61.46 83.75 80.27 67.69 135.41 85.59
Other expenses capitalised -84.31 -85.65 -61.61 -88.08 -67.38 -119.97 -75.26 -137.72 -76.87 -153.02
Extraordinary Items - 2.32 - - - - - - - -
Prior Period Expenses 1.56 3.74 - 291.95 - -171.71 - -11.23 - 145.83
Incentive 3.13 3.56 10.16 11.61 7.94 10.72 46.87 10.81 65.65 17.63
Insurance 46.50
Total Expenditure 2,004.64 1,724.07 2,040.39 2,224.19 1,885.94 1,305.13 2,227.93 1,936.21 3,384.76 2,557.57
Return on Equity 28.45 28.45 92.39 92.39 139.70 139.70 212.58 212.51 596.82 291.30
Other Income 37.80 37.80 33.85 33.85 112.16 112.16 115.58 160.15 106.84 201.84
Gap of True-up of FY 2010-11 allowed to be
recovered in FY 2014-15 90.01 90.01
Aggregare Revenue Requirement 1,995.29 1,714.73 2,098.93 2,282.73 1,913.48 1,332.67 2,414.94 2,078.57 3,874.74 2,647.03
Revenue Recovered 1,707.06 1,707.06 3,075.99 2,381.10 1,616.28 2,764.95 1,943.72 1,776.07 3,976.50 2,305.24
Revenue Gap (+Deficit/ -Surplus) 288.23 7.67 -977.06 -98.37 297.20 -1,432.28 471.22 302.51 -101.76 341.79
FY 2015-16FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15
3.12.2 TANTRANSCO submits that the recovery of gap of Rs. 90 Crs against the final true-
up of FY 2010-11 has been allowed to be recovered in FY 2014-15 as per tariff
order dated 26th June 2013 and accordingly has been claimed in the Petition.
3.12.3 TANTRANSCO requests the Hon’ble Commission to consider the justification
given by TANTRANSCO and approve the ARR and Gap for FY 2011-12to FY 2015-
16 as shown in the table above.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 20
4. AGGREGATE REVENUE REQUIREMENT FOR FY 2016-17 TO FY 2018-19
4.1 Background
4.1.1 This section deals with the determination ofARR of TANTRANSCO for the year FY
2016-17 to FY 2018-19 based on the projections made for the current year over
the previous year i.e. FY 2015-16.
4.1.2 It is necessary that all the costs are allowed so as to ensure the financial viability
of TANTRANSCO. Even stranded costs, if any, resulting from intra state
transmission, needs to be recovered so that the financial viability of the
TANTRANSCO is established.
4.1.3 TANTRANSCO also requires generating adequate amount of profit from its
operations so that it can maintain the system properly and simultaneously take
up R&M projects to upgrade its transmission system. It also needs to incur capital
expenditure for creating capacities which are required to cater to the future
needs of the system.
4.1.4 In the circumstances mentioned above, it will be just and proper that the
Aggregate Revenue Requirement as proposed by TANTRANSCO in this petition to
be allowed. The petitioner submits that the enclosures may please be treated as
an integral part of this petition.
4.2 Operation & Maintenance Expenses
4.2.1 O&M expenses comprises of employee expense, A&G expense and R&M
expense. As per clause 25 of the TNERC (Terms & Conditions for determination of
tariff) Regulations 2005 and MYT Regulations 2009 and its subsequent
amendments, O&M expenses are to be derived on the basis of actual O&M
expenses for past 5 years based on the audited accounts. Accordingly, O&M
Expenses for FY 2016-17 to FY 2018-19 have been arrived at on the basis of
escalation of 5.72% over the O&M expense of average audited cost of past 5
years,TANTRANSCO has considered escalation rates as per TNERC Regulations.
4.2.2 It is submitted that the employees cost are more in the nature of standard costs
of the TANTRANSCO and it does not retain much control over the same.
TANTRANSCO has taken all reasonable steps to ensure that the employees cost
are not high.
4.2.3 Employee Expenses
4.2.3.1 Employee Expense consists of Basic Salary, Dearness Allowance, Bonuses,
Medical expense reimbursement and Terminal Benefits etc. TANTRANSCO has
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 21
not considered the actual impact of 7th pay commission and will approach the
Hon’ble Commission for approval at the time of true-up.
4.2.3.2 FurtherDA has been considered equivalent to FY 2015-16 and any variation
will be claimed at the time of true-up based on the revisions duly declared by
the Government of Tamil Nadu during the respective years.
4.2.3.3 Thus, the projected Employee Expense of TANTRANSCO for the year FY 2016-
17to FY 2018-19 is shown as under:
Table 18: Employee Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs
Details FY 2016-17 FY 2017-18 FY 2018-19
Projected Projected Projected
Salary 225.17 238.05 251.66
Dearness Allowance 299.43 299.43 299.43
Other Allowances 17.15 18.13 19.17
Overtime Wages 5.80 6.13 6.48
Bonus 7.07 7.47 7.90
Leave Travel Assistance 0.03 0.03 0.04
Earned Leave Encashment 26.22 27.72 29.31
Medical Expense reimbursement 0.39 0.41 0.44
Payment Under Workman'S
Compensation And Gratuity 2.62 2.77 2.93
Board's Contribution to CPS 8.48 8.96 9.48
Staff Welfare Expenses 0.32 0.33 0.35
Terminal Benefits 231.26 244.49 258.47
Grand Total 823.94 853.94 885.66
4.2.4 Administration & General Expenses:
4.2.4.1 Administration and General Expenses consists of expenses pertaining to Rent,
Rates, Taxes, Telephone and Postage, Printing and Stationary, Electricity and
Water Charges, Advertisements Expenses etc. The A&G expenses projected
are in line with the Regulations with esclation of 5.72% p.a.
4.2.5 The A&G expense for the year FY 2016-17 to FY 2018-19 is as follows:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 22
Table 19: A&G Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs
Details FY 2016-17 FY 2017-18 FY 2018-19
Estimate Estimate Estimate
Rent, Rates & Taxes 0.74 0.78 0.82
Telephone, Postage & Telegrams 1.12 1.19 1.25
Consultancy Charges 0.75 0.79 0.84
Conveyance & Travel 11.94 12.62 13.34
Registrar of Companies 0.48 0.51 0.54
Insurance 0.06 0.07 0.07
Fees & Subscriptions 0.05 0.06 0.06
Books & Periodicals 0.01 0.01 0.01
Printing & Stationery 0.50 0.53 0.56
Advertisement Expenses 0.12 0.12 0.13
Petty Office Maintenance Expense 0.40 0.43 0.45
Electricity Charges 0.85 0.90 0.95
Water Charges / Cold weather expenses 0.21 0.22 0.23
Miscellaneous Expenses 0.80 0.85 0.90
Legal Charges 0.66 0.70 0.74
Audit Fee/Statutory Audit Fee 0.06 0.06 0.07
Technical Fees 0.05 0.05 0.05
Freight Material related Expenses 1.75 1.85 1.95
Other Purchase Related Expenses 0.22 0.23 0.24
Training Expense 0.15 0.16 0.17
Public Expenses / Other professinal charges 0.03 0.03 0.03
Watch and Ward Expense 5.78 6.11 6.46
Honororium (Food Allwo.) for SO in Chennai 0.01 0.01 0.01
A&G - Total 26.74 28.27 29.88
4.2.6 Repairs & Maintenance Expenses
4.2.6.1 Repair and Maintenance expenses depend upon the population of the
substation, age of the transmission lines. R&M expenses are generally
incurred in order to ensure the maintenance of the transmission
lines/systems. The major components of Repairs and Maintenance cost are
Substation equipment and transformer maintenance cost, line maintenance
cost, auxiliary consumption charges, substation maintenance (O&M) charges
and general civil maintenance of substation infrastructure and buildings. For
R&M expenses, the escalation has been considered at 5.72% which is in line
with the TNERC (Terms & Conditions for determination of Tariff) Regulations.
The R&M expenses for the year FY 2016-17 to FY 2018-19 is shown in the
table below:
Table 20: R&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs
Details FY 2016-17 FY 2017-18 FY 2018-19
Estimate Estimate Estimate
Plant & Machinery 6.88 7.28 7.69
Buildings 0.27 0.28 0.30
Civil Works 0.37 0.39 0.41
Hydraulic Works 0.00 0.00 0.00
Lines, Cables Networks & DTR Repair 2.91 3.07 3.25
Vehicles 0.43 0.46 0.48
Furniture & Fixtures 0.00 0.00 0.00
Office Equipments 0.26 0.28 0.30
R&M Cost - Total 11.13 11.76 12.43
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 23
4.2.7 The breakup of O&M expenses for the year FY 2016-17 to FY 2018-19 is shown as
under:
Table 21: O&M Expenses for FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projections Projections Projections
Employee Expense 823.94 853.94 885.66
Administration & General Expense 26.74 28.27 29.88
Repair & Maintenance Expense 11.13 11.76 12.43
Total 861.80 893.97 927.98
4.2.8 It is requested to the Hon’ble Commission to approve the O&M expenses as
showcased in the above table which has been estimated in line with the MYT
Regulations.
4.3 Capitalisation of Revenue Expenses
4.3.1 TANTRANSCO submits that in the usual course of business and as reflected in the
previous audited financial statements, the revenue expenditure which are
capitalised are for the account heads which includes employee expenses, A&G
expenses, R&M expenses, Fabrication charges added to the stock and other
debits. Based on the policy of the company, certain % of the capital works are
capitalised in the said expenditure accounts. However, in the said petition,
TANTRANSCO is claiming capitalisaiton of expenses limited to O&M expenses
only i.e. Employee cost, R&M cost and A&G Cost. The details of which are as
follows:
Table 22: Capitalisation of expenses for FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projections Projections Projections
Employee cost capitalised 83.16 86.19 89.39
A&G capitalised 4.85 5.13 5.43
R&M capitalised 3.12 3.30 3.48
Total 91.14 94.62 98.30
4.3.2 TANTRANSCO request the Hon’ble Commission to allow the said capitalised
expenses for the FY 2016-17 to FY 2018-19.
4.4 Capital Expenditure and Capitalisation
4.4.1 Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v)of the Tariff
Regulation under MYT framework specifies that the licensee shall get the capital
investment plan approved by the Commission before filing ARR and Application
for determination of Tariff. Accordingly, TANTRANSCO has submitted the
application for approval of provisional Capital investment and capitalisation from
FY 2016-17 to FY 2018-19 for approval of the Hon’ble Commission and the same
has been taken into consideration in this petition.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 24
Table 23: Summary of schemewise CAPEX and Capitalisation for FY 2016-17 to FY 2018-19 – Rs. Crs
Sr. No Schemes
FY 2016-17 FY 2017-18 FY 2018-19 FY 2016-17 FY 2017-18 FY 2018-19
I. Sub station works
765 kV Sub Stations 100.00 375.00 1,030.00 - 212.15 424.29
400 kV Sub Stations 385.00 410.00 1,200.00 990.80 974.91 1,099.94
230 kV Sub Stations 253.00 694.00 605.00 59.25 206.59 791.03
110 kV Sub Stations 415.50 327.00 310.00 159.59 372.39 239.08
Sub Total 1,153.50 1,806.00 3,145.00 1,209.64 1,766.03 2,554.35
II. Transmission Line works
Link Lines - 400 KV, 230 KV 5.00 - - 83.10 242.92 154.76
Power Evacuation Lines - 400 KV, 230 KV and 110 KV 64.90 115.00 100.00 159.50 91.41 20.84
Improvement Lines - 230 KV, 110 KV 220.00 100.00 150.00 164.64 163.15 132.12
Sub Total 289.90 215.00 250.00 407.24 497.48 307.72
III. OTHERS
Enhancement / Additional Power Transformers 150.00 150.00 150.00 150.00 150.00 150.00
TANTRANSCO Building 10.00 5.00 - - 16.00 4.00
Capacitor Bank 20.00 - 16.00 4.00
JICA Scheme 600.00 300.00 300.00 600.00 300.00 300.00
KfW Schemes 600.00 450.00 100.00 - 263.70 513.09
SubTotal 1,380.00 905.00 550.00 766.00 733.70 967.09
Total 2,823.40 2,926.00 3,945.00 2,382.88 2,997.21 3,829.16
CAPEX CAPITALISATION
4.4.2 Based on the above estimated CAPEX, the sources of funding is outlined as below
whereby it is the debt:equity funding at present considered is in the ratio of
90:10.
Table 24: Sources of funding of CAPEX – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Provisional Provisional Provisional
CAPEX 2,823.40 2,926.00 3,945.00
Capitalisation 2,382.88 2,997.21 3,829.16
Grant from GOI for KFW
German loan funded project 326.70 - -
10% - Equity 205.62 299.72 382.92
90% - Debt 1,850.56 2,697.49 3,446.24
Funded by
JICA Loan 500.00 728.00 376.00
KFW Loan 258.21 246.00 -
NABARD 80.00 113.00 -
PFC, REC Bond, Bank term
loan etc 1,012.35 1,610.49 3,070.24
Sources of funding of capitalisaiton
4.4.3 The loan from JICA and KFW are through the State Government and therefore
has been considered under State Government Loan.
4.4.4 It is submitted that TANTRANSCO is planning to incur the above CAPEX on various
projects considering the growth in demand within the State and the need of
evacuation system for upcoming renewable and thermal power plants. The
details of the same are as provided below:
A. Power Evacuation from the proposed Thermal projects:
Total four Thermal projects with an installed capacity of 3440 MW are getting
commissioned in North Chennai area resulting into a generation hub. It is
proposed to evacuate this bulk power at 765 kV and administrative approval has
been accorded for 765 kV GIS pooling station at North Chennai with connectivity
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 25
to the already sanctioned Ariyalur 765 kV AIS SS and Pulianthope 400 kV GIS SS.
Estimate is under preparation for 765 kV North Chennai Pooling Station and it is
programmed to complete the substation by 2019-20. Tender has been opened
and under process for Pulianthope 400 KV GIS substation.
Ariyalur 765 kV substation is proposed to effectively distribute the generated
power and sourced from other States, with connectivity to Thiruvalam PGCIL 765
kV substation. Tender is being floated for Ariyalur 765 KV Substation and tender
is under process for 765 kV line from Thiruvalam to Ariyalur. Ariyalur 765 kV
substation is expected to be completed by 2018-19.
Another 765 kV substation is proposed at Coimbatore area with connectivity to
North Chennai and the proposed Udangudi 765 KV switchyard. Land is being
identified for establishment of 765 kV SS at Coimbatore. Udangudi 765 kV
switchyard is proposed for evacuation of about 1980 MW from Udangudi STPP (2
X 660 MW) and Udangudi Stage –II (1 X 660 MW ) and will be commissioned
matching with the commissioning of the project.
Thus a 765 kV network is being formed with establishment of 4 nos. 765 kV
substations at North Chennai, Ariyalur, Coimbatore and Udangudi with
associated 765 kV lines for transfer of bulk power from generating stations and
for transfer of interstate power with downstream connectivity for effective
distribution of generated power.
Further, for evacuating power of about 730 MW from private generators in
Gummudipoondi area, a 400 kV SS is proposed at Thervaikandigai with
connectivity to the proposed Manali and Korattur 400 kV substations.
Thervaikandigai 400 kV SS is back charged at 230 kV level on 15.04.16 whereby
400 kV line works are under progress and the substation at 400 kV is
programmed to be completed by 2016-17.
B. Power evacuation from Renewable Energy sources
Tamil Nadu being a pioneer of promoting Renewable energy owing to its huge
potential of wind and solar along with other forms of renewable energy, has planned
its transmission infrastructure to match with the ambitious Green Energy capacity
addition. The estimated renewable energy addition in the next three years will be
around 4000 MW. This program has been briefly explained below:
a. Wind power evacuation
For evacuation of about 3000 MW wind power in Theni and Udumalpet districts,
overall 3 numbers of new 400 kV substations at Thappagundu, Anikadavu and
Rasipalayam with associated 400 kV lines of 788 ckt. kms are proposed. Works
are under progress for these substations. Also, 400 kV line works from
Thappagundu to Anikadavu and Anikadavu to Rasipalayam have been
completed. 400 kV line works from Rasipalayam to Dharmapuri (Palavadi) 400 kV
SS are under progress. This transmission system will be commissioned during
2016-17.
Further 2 nos. substations are proposed at Kanarpatty and Thennampatty for
evacuation of wind power in Tirunelveli area. Kanarpatty substation has been
commissioned. Works are under progress for Thennampatty 400 kV SS and will
be commissioned during 2017-18.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 26
The above substations and lines which are mainly evolved for evacuation of wind
energy will be used beneficially for load transfer in both directions i.e. during
wind & non wind seasons.
Erection of second 400 kV DC line from Rasipalayam 400 KV SS – Dharmapuri
(Palavadi) 400 kV SS is also proposed under KfW funding and works are under
progress. These two double circuit 400 kV lines will enable power flow to load
centres of Coimbatore, Salem and Vellore regions throughout the year
effectively. LILO of one ckt of Thappagundu - Anaikadavu 400 KV DC line at
Udumalpet 400/230 KV PGCIL SS will also be beneficial for Coimbatore region.
Tender is under process for above line work.
b. Solar power evacuation
For evacuation of about 3000 MW of solar power in Ramnad, Pudukkottai and
Virudhunagar districts, establishment of 400 kV SS at Kamudhi and 230 kV SS at
Muthuramalingapuram are proposed. Also, Kamudhi 400 kV SS has been
commissioned and Works are under progress for Muthuramalingapuram 230 kV
SS and this substation is also programmed to be completed by 2016-17.
A 400 kV substation at Vellalaviduthi is also proposed for solar power evacuation
in Pudukkottai district and is expected to be commissioned in 2018-19.
Considering the already proposed and future expected addition of renewable
energy generation in Tamil Nadu network, it has been proposed to establish 400
kV substations viz., Samugarengapuram in Tirunelveli area, Ottapidaram in
Tuticorin area for evacuation of wind/solar energy in addition to the private
power generation at Ottapidaram.
As major portion of the capacity addition of renewable energy generation is
proposed near Kamudhi, Rameshwaram - Ramnad / Thiruchuli-Virudunagar /
Pudukkottai area in case of solar and wind in Tirunelveli area, it has been
decided to establish a 765 kV substation near Virudunagar for pooling all the
above generation and transferring to load centres.
4.5 GFA and Depreciation
4.5.1 The depreciation rate considered in the petition are in line with the rates
specified in the Tariff Regulations. The total depreciation is calculated on the
opening balance of the Gross Fixed Assets (GFA).
4.5.2 The depreciation rate considered are in line with the Amendment to the Terms
and Conditions for determination of Tariff Regulations 2005 dated 13th March
2014.
4.5.3 The depreciation and the opening GFA for the year FY 2016-17 to FY 2018-19
works out to be as follows whereby the depreciation is calculated on the book
value of the Assets.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 27
Table 25: GFA and Depreciation for FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projections Projections Projections
Opening Gross Block 11,886.26 14,269.14 17,266.34
Closing Gross Block 14,269.14 17,266.34 21,095.49
Depreciation during the year 598.18 718.10 868.93
Rate of Depreciation 4.57% 4.55% 4.53%
4.5.4 The Hon’ble Commission is requested to approve the depreciation as projected
by TANTRANSCO for the year FY 2016-17 to FY 2018-19.
4.6 Interest Calculation
4.6.1 Interest calculations have been estimated based on the heads viz Interest on
Loan and Interest & Finance charges.
4.6.2 As per norms specified in Tariff Regulations 2005, TANTRANSCO has determined
interest expenses corresponding to long term loans and interest on working
capital separately.
4.6.3 The interest on the loan has been calculated considering the loans allocated to
TANTRANSCO at the time of segregation of erstwhile TNEB and based on such
notified final transfer scheme, it is an obligation of TANTRANSCO to service such
debts and repay the debt alongwith the interest.
4.6.4 For determination of interest expenses, following approach has been considered
by TANTRANSCO:
Closing loan of FY 2015-16 audited balance sheet has been considered as a base.
Repayment and interest obligation of existing loan is considered as per
projection.
90% of the capitalisaiton has been considered as debt whereby PFC / REC loan /
Bonds / Bank Term Loan, etc is funded @11.25% p.a. in FY 2016-17 and 10% in
FY 2017-18 onwards, NABARD @10.75% p.a. and JICA/KFW loan @8.19%
included in State Government loan and also includes the impact of FERV in line
with FY 2015-16 rate
Moratorium period of 3 years has been considered for new loan
IDC is considered in the similar prorata ratio of FY 2015-16
Finance charges has been considered with 10% escalation considering FY 2015-
16 as base for calculation for the next 3 years.
Interest on General provident fund has not been considered in line with the
observation considered by the Hon’ble Commission
4.6.5 The interest calculation for the year FY 2016-17 to FY 2018-19 is shown in the
table below:
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 28
Table 26: Interest and Finance Charges for FY 2016-17 to FY 2018-19 - Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Provisional Provisional Provisional
Op. Loan 10,848.38 11,697.18 13,054.37
Loan Additiona during the year 1,850.56 2,697.49 3,446.24
Repayment during the year 1,001.77 1,340.30 1,202.92
Cl. Balance 11,697.18 13,054.37 15,297.69
Average Loan 11,272.78 12,375.77 14,176.03
Interest on Loan 1,232.69 1,367.07 1,515.66
Less: Interest Capitalized 311.79 339.94 366.68
Net Interest on Loan 920.90 1,027.13 1,148.98
Interest & Finance Charges 30.31 30.31 36.68
Total 951.22 1,057.44 1,185.66
Average Interest Rate 10.94% 11.05% 10.69%
4.6.6 The Hon’ble Commission is requested to approve the Interest on Loan and
Interest & Finance charge as projected for the year FY 2016-17 to FY 2018-19.
4.7 Working Capital and Interest on Working Capital
4.7.1 TANTRANSCO would like to submit that interest on working capital in the petition
has been claimed on the normative basis.
4.7.2 In line with norms, the Revenue has been considered for 2 months based on
expected revenue from existing tariff for FY 2016-17 and For FY 2017-18 to FY
2018-19, it is based on the total ARR to be recovered in the ensuing year.
4.7.3 Further, the Tariff Regulations stipulates that rate of interest on working capital
shall be considered on normative basis and shall be equal to the short-term
Prime Lending Rate of State Bank of India as on the date on which the application
for determination of tariff is made.
4.7.4 Based on the above Regulations, TANTRANSCO is entitled on the interest on
working capital as shown in the table below:
Table 27: Interest on Working Capital for FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projections Projections Projections
O&M expenses 64.22 66.61 69.14
Maintenance Spares 149.82 181.23 221.31
Receivables 348.22 454.68 506.40
Total Working Capital 562.26 702.52 796.86
Rate of Interest on Working Capital 14.05% 14.05% 14.05%
Total Interest on Working Capital 79.00 98.70 111.96
4.8 Reasonable Return on Equity
4.8.1 TANTRANSCO has calculated Return on Equity for the year FY 2016-17 to FY
2018-19 on the basis on the average equity for the corresponding year
considering infusion of Equity @10% of the total capitalised amount of the
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 29
respective year. This has been done in line with the TNERC Regulations. The
Normative Rate of Equity has been taken at 14%.
4.8.2 The Reasonable Rate of Return on equity of TANTRANSCO for the year FY 2016-
17 to FY 2018-19 is shown in the table below:
Table 28: RoE for FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projections Projections Projections
Opening Equity 2,207.98 2,413.60 2,713.32
Additions during the year 205.62 299.72 382.92
Closing Equity 2,413.60 2,713.32 3,096.24
Average Equity 2,310.79 2,563.46 2,904.78
Total 323.51 358.88 406.67
4.8.3 Based on the foregoing paragraphs, TANTRANSCO requests the Hon’ble
Commission to approve the Reasonable Rate of return on Equity for FY 2016-17
to FY 2018-19.
4.9 Other debits and prior period items
4.9.1 TANTRANSCO submits that other debits and prior period items has not been
considered in estimated ARR and reserves the right to claim the same at the time
of true-up of the respective financial year in the next petition.
4.10 Incentives
4.10.1 TNERC Tariff Regulations 2005, which entitles the transmission licensee for an
incentive at 1% of equity for each percentage point of increase in annual
availability beyond the target availability i.e. 98%. However, APTEL Judgement
dated 18th October 2014 on Appeal No. 197 of 2013 has directed that “The
incentive is to be determined post facto after annual availability achieved is
computed after the completion of the Financial Year”.
4.10.2 TANTRANSCO taking this direction into cognisance of the Hon’ble APTEL and
TANTRANSCO has not claimed any incentive for FY 2016-17 to FY 2018-19 but
reserves its right to claim during the true-up petition.
4.11 Insurance
4.11.1 As per the terms of the amended Tariff Regulations dated April 9th 2014, the
provision for insurance has been removed from FY 2014-15 and hence the same
has not been claimed in FY 2016-17 to FY 2018-19.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 30
4.12 Other Income
4.12.1 TANTRANSCO submits that it had filed a petition for approval of Transmission
charges under PoC regime for connecting the neighbouring states before the
Hon’ble CERC for five lines owned by it and considered as the deemed inter-state
lines:
i. Chitoor – Tniruvalam 230 kV SC line
ii. Sulurpet – Gummidipoondi 230 kV SC line
iii. Yeerandahalli – Hosur 230 kV SC line
iv. Mooziyar – Theni 230 kV SC line
v. Iduki – Udumalpet 230 kV SC line
4.12.2 Accordingly, CERC has issued an order dated 28th September 2015 approving the
tariff from FY 2011-12 to FY 2013-14. TANTRANSCO in the said petition has
considered the similar revenue of FY 2013-14 for FY 2014-15 to FY 2018-19. The
Revenue from the said 5 inter-state line has been considered in other income
whereby from FY 2011-12 to FY 2016-17 income has been highlighted in FY 2016-
17. The details of the same are outlined below:
Table 29: Impact of CERC order for 5 Inter-State Transmission Lines – Rs. Crs
Sr. No. Particulars Total Gap
Impact of CERC Order as per Order dated 28th September 2015 for 5 Transmission lines
1 For FY 2011-12 limited to 5 months 6.61
2 For FY 2012-13 11.66
3 For FY 2013-14 12.16
4 For FY 2014-15 (as per FY 2013-14) 12.16
5 For FY 2015-16 (as per FY 2013-14) 12.16
6 For FY 2016-17 (as per FY 2013-14) 12.16
7 Total income considered in FY 2016-17 66.93
8 For FY 2017-18 (as per FY 2013-14) 12.16
9 For FY 2018-19 (as per FY 2013-14) 12.16
10 Total Charges to be recovered from Inter-State Consumers 91.26
4.12.3 TANTRANSCO submits that apart from income from Inter-State Transmission
lines, the Other Income also includes interest on staff loans, income from
investment, income from trading, interest from banks, income from short term
open access, etc. The amount of Other Income for the year FY 2016-17 to FY
2018-19 is arrived at based on the past trends.
Table 30: Other Income from FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projections Projections Projections
Other Income 309.66 304.41 364.48
4.12.4 TANTRANSCO request the Hon’ble Commission to approve the same.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 31
4.13 Other Debits and Prior Period Income
4.13.1 For the year FY 2016-17 to FY 2018-19, TANTRANSCO does not envisage any Prior
Period Income; hence it has not considered any prior period income.
4.14 Aggregate Revenue Requirement
4.14.1 Based on the category-wise expenses as described above, the Actual Aggregate
Revenue Requirement for FY 2016-17 to FY 2018-19 for TANTRANSCO has been
summarised in the table given below for the approval of the Hon’ble Commission.
Table 31: Aggregate Revenue Requirement for FY 2016-17 to FY 2018-19 – Rs. Crs
Particulars FY 2016-17 FY 2017-18 FY 2018-19
Projected Projected Projected
O&M Expense 770.67 799.35 829.68
Employee Expenses 823.94 853.94 885.66
R&M Expenses 11.13 11.76 12.43
A&G Expense 26.74 28.27 29.88
Revenue Expenses Capitalised excl. Interest -91.14 -94.62 -98.30
Depreciation 598.18 718.10 868.93
Interest & Finance Charges 1,263.01 1,397.38 1,552.34
Interest Expenses capitalised -311.79 -339.94 -366.68
Interest on working capital 79.00 98.70 111.96
Return on Equity 323.51 358.88 406.67
Total Expenditure 2,722.57 3,032.48 3,402.90
Other Income 309.66 304.41 364.48
Aggregate Revenue Requirement 2,412.92 2,728.07 3,038.42
4.14.2 TANTRANSCO request the Hon’ble Commission to approve the said proposed
Annual Revenue Requirement for FY 2016-17 to FY 2018-19.
Petition for Final True-up for FY 12 to FY 16, ARR for FY 17-FY 19
January 2017 Page 32
5. PRAYER TO THE PETITION
TANTRANSCO respectfully prays to the Hon'ble Commission:
1. To admit the said petition as per the provisions of the Tariff Regulations 2005
and MYT Regulations 2009;
2. To condone the delay in filing the present petition for which application for
time extension up to 31st January have been submitted to this Hon’ble
Commission;
3. To approve the total Aggregate Revenue Requirement FY 2011-12 to FY 2018-
19 along with other claims as proposed by TANTRANSCO;
4. To approve capital expenditure as proposed in the petition;
5. To grant any other relief as the Hon'ble Commission may consider
appropriate. The petitioner craves leave of the Hon'ble Commission to allow
further submissions, addition and alteration to this Petition as may be
necessary from time to time;
6. To condone any error/omission and to give opportunity to rectify the same;
7. Pass any other order as the Hon’ble Commission may deem fit.
sd/-
PETITIONER
TAMIL NADU TRANSMISSION CORPORATION LIMITED
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 1: Summary Sheet
73% 18% 18% 17% -10% 4% (Rs. Crs)
SL.
No.Details Reference FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Estimates Projections Projections
1 Operation & Maintenance Expenses 302.76 522.61 619.20 729.73 856.11 770.67 799.35 829.68
1.1 Employee Cost Form 5 360.81 579.89 700.01 830.08 964.99 823.94 853.94 885.66
1.2 Repair & Maintenance Form 4 7.98 7.53 12.55 11.02 13.53 11.13 11.76 12.43
1.3 Administration & General Charges Form 6 19.62 23.27 26.62 26.34 30.61 26.74 28.27 29.88
1.4 Revenue Expenses Capitalised excl. Interest Form 7A (85.65) (88.08) (119.97) (137.72) (153.02) (91.14) (94.62) (98.30)
2 Depreciation Form 3 289.27 299.50 311.27 566.34 487.61 598.18 718.10 868.93
3 Other Interest and Finance Charges Form 2 1,316.57 1,291.08 675.77 864.22 1,283.83 1,263.01 1,397.38 1,552.34
4 Interest on Working Capital Form 10 46.65 72.86 83.75 67.69 85.59 79.00 98.70 111.96
5 Return on Equity Form 8 28.45 92.39 139.70 212.51 291.30 323.51 358.88 406.67
6 Other Debits Form 9 0.15 6.27 0.04 - 0.49 - - -
7 Incentive Form 11 3.56 11.61 10.72 10.81 17.63 - - -
8 Total Fixed Costs 1,987.41 2,296.32 1,840.46 2,451.30 3,022.57 3,034.36 3,372.42 3,769.58
9 Less: Other Income 37.80 33.85 112.16 160.15 201.84 309.66 304.41 364.48
10 Less: Interest Expenses Capitalized 240.95 271.69 223.92 291.35 319.53 311.79 339.94 366.68
11 Add: Net Prior Period Credit / Income 3.74 291.95 (171.71) (11.23) 145.83 - - -
12 Add: Extra - Ordinary Items 2.32
13 Gap of True-up of FY 2010-11 90.01
14 Net Transmission Charges 1,714.73 2,282.73 1,332.67 2,078.57 2,647.03 2,412.92 2,728.07 3,038.42
15Revenue from Tx Charges / Annual Tx
Charges1,707.06 2,381.10 2,764.95 1,776.07 2,305.24 2,089.31 2,183.00 -
16 GAP (7.67) 98.37 1,432.28 (302.51) (341.79) (323.61) (545.08)
SL. No. Institution
Outstanding
at the start
of the year
Borrowings Repayment
Outstanding at
the end of the
year
Interest RateInterest
payable
Outstandin
g at the
start of the
year
Borrowing
s
Repaymen
t
Outstanding at
the end of the
year
Interest RateInterest
payable
A Interest on Loans
1 Public Loan TNEB Bonds 1,635.72 - 221.53 1,414.19 13.02% 139.64 1,414.19 0.00 0.00 1,414.19 13% 130.02
2 Loan from Life Insurance Corpn. 472.17 - 65.99 406.18 9.05% 37.81 406.18 - 60.32 345.86 9% 32.26
3 Loan from Rural Elecn.Corpn. 1,864.60 459.16 142.15 2,181.62 11.65% 182.94 2,181.62 284.56 313.35 2,152.83 12% 248.09
4 Power Finance Corporation 655.82 - 269.28 386.54 11.00% 24.72 386.54 295.07 21.26 660.34 11% 34.70
5 Loan Tamil Nadu POWERFIN 2,888.27 67.62 871.02 2,084.87 10.65% 228.69 2,084.87 119.81 673.59 1,531.09 11% 217.43
6 Medium Term Loan 3,864.89 - 1,154.32 2,710.58 10.50% 580.77 2,710.58 - 950.15 1,760.43 11% 489.80
7 HUDCO 571.52 - 99.30 472.23 10.25% 119.36 472.23 - 83.25 388.98 10% 114.49
8 Penal Interest in respect of capital liabiltiies - - - - 0.00% - - - - - 0% 11.32
9 JICA Loan - - - - 0.00% - - - - - 0% -
Subtotal 11,952.99 526.78 2,823.57 9,656.20 1,313.94 9,656.20 699.43 2,101.91 8,253.72 1,278.11
B Interest & Finance Charge
Interest on General provident Fund - -
Other Interest 2.51 3.81
Cost of raising finance 0.06 -
Other Bank Charges/Penal int for E.tax 0.05 0.04
Guarantee commission to State Government - 9.12
Subtotal 2.63 12.96
Total 1,316.57 1,291.08
Less: Interest Expense Capitalized 240.95 271.69
Net Interest & Finance charges 1,075.62 1,019.38
Previous Year 2012-13 - AuditedPrevious Year 2011-12 Audited
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 2: Interest Calculations
TAMIL NADU TRANSMISSION CORPORATION LIMITED
SL. No. Institution
A Interest on Loans
1 Public Loan TNEB Bonds
2 Loan from Life Insurance Corpn.
3 Loan from Rural Elecn.Corpn.
4 Power Finance Corporation
5 Loan Tamil Nadu POWERFIN
6 Medium Term Loan
7 HUDCO
8 Penal Interest in respect of capital liabiltiies
9 JICA Loan
Subtotal
B Interest & Finance Charge
Interest on General provident Fund
Other Interest
Cost of raising finance
Other Bank Charges/Penal int for E.tax
Guarantee commission to State Government
Subtotal
Total
Less: Interest Expense Capitalized
Net Interest & Finance charges
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 2: Interest Calculations
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Outstanding at
the start of the
year
Borrowings Repayment
Outstandin
g at the end
of the year
Interest RateInterest
payable
Outstanding at
the start of the
year
Borrowings Repayment
Outstanding at
the end of the
year
Interest
Rate
Interest
payable
1,414.19 - 60.28 1,353.91 13% 127.47 1,353.91 - 74.78 1,279.13 13.02% 120.72
345.86 - 56.65 289.20 9% 26.91 289.20 - 46.90 242.30 9.05% 20.99
2,152.83 1,425.78 479.74 3,098.87 12% 292.18 3,098.87 1,464.43 241.86 4,321.44 11.65% 492.72
660.34 389.69 0.78 1,049.26 11% 19.72 1,049.26 589.42 4.62 1,634.06 11.00% 88.18
1,531.09 55.11 606.89 979.31 11% 89.19 979.31 - 380.99 598.32 10.65% 39.29
1,760.43 - - 1,760.43 11% - 1,760.43 - - 1,760.43 10.50% -
388.98 - 81.82 307.16 10% 96.73 307.16 - 60.74 246.41 10.25% 70.34
- - - - 0% 6.06 - - - - 0.00% 13.16
- - - - 0% - - 128.01 - 128.01 0.19% 0.12
8,253.72 1,870.58 1,286.16 8,838.13 658.27 8,838.13 2,181.87 809.90 10,210.10 845.53
- -
5.17 6.97
3.64 3.68
0.04 0.05
8.67 7.99
17.51 18.69
675.77 864.22
223.92 291.35
451.86 572.87
Previous Year 2014-15 - AuditedPrevious Year 2013-14 - Audited
Form 2: Interest Calculations
ARR FOR THE FY 2016-17 TO FY 2018-19
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 2: Interest Calculations
TAMIL NADU TRANSMISSION CORPORATION LIMITED
SL. No. Institution
Outstanding
at the start
of the year
Borrowings Repayment
Outstanding at
the end of the
year
Interest RateInterest
payable
Outstandin
g at the
start of the
year
Borrowing
s
Repaymen
t
Outstanding at
the end of the
year
Interest RateInterest
payable
1 Public Loan TNEB Bonds 1,279.13 1,198.84 692.41 1,785.55 8.60% 170.73 1,785.55 - - 1,785.55 8.60% 153.62
2 Loan from Life Insurance Corpn. 242.30 386.35 187.48 441.17 11.15% 51.99 441.17 - 66.60 374.57 12.07% 49.21
3 Loan from Rural Elecn.Corpn. 4,321.44 1,051.07 409.79 4,962.72 11.25% 590.46 4,962.72 - 689.36 4,273.37 12.50% 577.18
7 Power Finance Corporation 1,634.06 489.72 538.60 1,585.17 11.25% 155.91 1,585.17 - 54.11 1,531.06 10.00% 155.88
8 Loan Tamil Nadu POWERFIN 598.32 320.79 845.45 73.66 10.65% 15.32 73.66 - 44.27 29.39 10.84% 5.58
10 Medium Term Loan 1,760.43 1,760.43 - 0.00% - - - - - -
11 HUDCO 246.41 961.06 102.73 1,104.74 12.17% 189.42 1,104.74 - 147.43 957.31 12.39% 127.75
13 NABARD 45.48 - 45.48 10.75% 0.13 45.48 80.00 - 125.48 10.75% 9.19
14 PFC and REC Additional loan - - - 0.00% - - 1,012.35 - 1,012.35 11.25% 56.94
15 Penal Interest in respect of capital liabiltiies - - - - 0.00% 12.58 - - - - -
16 JICA Loan 128.01 (128.01) - - 0.00% 2.43 - - - - -
17 State Govt Loan 849.90 - 849.90 7.92% 67.31 849.90 758.21 - 1,608.11 7.92% 97.33
Subtotal 10,210.10 5,175.19 4,536.90 10,848.38 1,256.27 10,848.38 1,850.56 1,001.77 11,697.18 1,232.69
B Interest on Finance Charge
Interest on General provident Fund - -
Other Interest 12.27 13.49
Cost of raising finance 3.75 4.13
Other Bank Charges/Penal int for E.tax 0.06 0.06
Guarantee commission to State Government 11.48 12.63
Subtotal 27.56 30.31
Total 1,283.83 1,263.01
Less: Interest Expense Capitalized 319.53 311.79
Net Interest & Finance charges 964.30 951.22
Current Year 2016-17 - EstimatesPrevious Year 2015-16 - Audited
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 2: Interest Calculations
TAMIL NADU TRANSMISSION CORPORATION LIMITED
SL. No. Institution
1 Public Loan TNEB Bonds
2 Loan from Life Insurance Corpn.
3 Loan from Rural Elecn.Corpn.
7 Power Finance Corporation
8 Loan Tamil Nadu POWERFIN
10 Medium Term Loan
11 HUDCO
13 NABARD
14 PFC and REC Additional loan
15 Penal Interest in respect of capital liabiltiies
16 JICA Loan
17 State Govt Loan
Subtotal
B Interest on Finance Charge
Interest on General provident Fund
Other Interest
Cost of raising finance
Other Bank Charges/Penal int for E.tax
Guarantee commission to State Government
Subtotal
Total
Less: Interest Expense Capitalized
Net Interest & Finance charges
Form 2: Interest Calculations
ARR FOR THE FY 2016-17 TO FY 2018-19
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Outstanding at
the start of the
year
Borrowings Repayment
Outstandin
g at the end
of the year
Interest RateInterest
payable
Outstanding at
the start of the
year
Borrowings Repayment
Outstanding at
the end of the
year
Interest
Rate
Interest
payable
1,785.55 - 665.50 1,120.05 9.27% 134.67 1,120.05 - 480.00 640.05 8.93% 78.60
374.57 - 66.60 307.97 12.92% 44.08 307.97 - 66.60 241.37 13.39% 36.78
4,273.37 - 339.42 3,933.94 13.32% 546.64 3,933.94 - 423.55 3,510.39 13.30% 494.87
1,531.06 - 100.00 1,431.06 11.02% 163.17 1,431.06 - 93.41 1,337.64 10.95% 151.59
29.39 - 25.75 3.64 10.12% 1.67 3.64 - 3.64 0.00 5.34% 0.10
- - - - - - - - - -
957.31 - 143.02 814.28 12.37% 109.60 814.28 - 135.71 678.57 12.45% 92.93
125.48 113.00 - 238.48 10.75% 19.56 238.48 - - 238.48 10.75% 25.64
1,012.35 1,610.49 - 2,622.84 10.00% 181.76 2,622.84 3,070.24 - 5,693.08 10.00% 415.80
- - - - - - - - - -
- - - - - - - - - -
1,608.11 974.00 - 2,582.11 7.92% 165.92 2,582.11 376.00 - 2,958.11 7.92% 219.37
11,697.18 2,697.49 1,340.30 13,054.37 1,367.07 13,054.37 3,446.24 1,202.92 15,297.69 1,515.66
- -
14.84 16.33
4.54 5.00
0.07 0.07
13.89 15.28
30.31 36.68
1,397.38 1,552.34
339.94 366.68
1,057.44 1,185.66
Ensuing Year 2017-18 - Projections Ensuing Year 2018-19 - Projections
FY 2011-12
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 291.18 0.12 - 291.30 -
2 Building & civil works 269.41 11.42 0.01 280.82 5.64
3 Other Civil works 2.74 - 0.00 2.74 1.91
4 Hydraulic Works 145.24 5.31 0.03 150.51 0.05
5 Line Cable Networking etc 2,018.82 84.11 1.93 2,100.99 137.74
6 Plants & Mechainery 1,722.58 72.47 0.01 1,795.03 138.99
7 Vehicles 1.84 0.10 0.04 1.90 (0.03)
8 Furniture Fixture 4.13 0.01 0.01 4.14 1.26
9 Office equipments incl intangibles 16.49 - 0.01 16.47 3.72
10 Assets not belonging to the Board 0.06 - - 0.06 0.00
Total 4,472.49 173.53 2.04 4,643.97 289.27
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2012-13
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 291.30 11.11 - 302.41 -
2 Building & civil works 280.82 7.19 0.01 287.99 5.86
3 Other Civil works 2.74 0.02 - 2.75 2.10
4 Hydraulic Works 150.51 3.37 0.08 153.81 0.06
5 Line Cable Networking etc 2,100.99 229.14 1.16 2,328.97 139.05
6 Plants & Mechainery 1,795.03 181.21 0.01 1,976.24 145.93
7 Vehicles 1.90 0.00 0.00 1.90 1.82
8 Furniture Fixture 4.14 0.04 0.00 4.17 1.03
9 Office equipments incl intangibles 16.47 0.16 0.00 16.63 3.64
10 Assets not belonging to the Board 0.06 - 0.06 -
Total 4,643.97 432.24 1.27 5,074.94 299.50
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2013-14
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 302.41 5.31 - 307.73 -
2 Building & civil works 287.99 22.03 0.20 309.82 5.99
3 Other Civil works 2.75 0.00 - 2.75 2.16
4 Hydraulic Works 153.81 95.37 0.49 248.69 0.06
5 Line Cable Networking etc 2,328.97 518.25 1.21 2,846.01 142.89
6 Plants & Mechainery 1,976.24 692.43 1.07 2,667.59 154.14
7 Vehicles 1.90 0.17 0.22 1.85 1.79
8 Furniture Fixture 4.17 0.60 0.00 4.77 0.89
9 Office equipments incl intangibles 16.63 0.97 0.02 17.59 3.35
10 Assets not belonging to the Board 0.06 - - 0.06 -
Total 5,074.94 1,335.13 3.21 6,406.86 311.27
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2014-15
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 307.73 24.21 - 331.94 0.00
2 Building & civil works 309.82 72.70 - 382.52 11.84
3 Other Civil works 2.75 0.02 - 2.78 7.15
4 Hydraulic Works 248.69 127.29 0.07 375.92 0.11
5 Line Cable Networking etc 2,846.01 640.30 1.95 3,484.36 291.13
6 Plants & Mechainery 2,667.59 2,551.45 0.06 5,218.97 248.39
7 Vehicles 1.85 0.01 0.16 1.70 0.86
8 Furniture Fixture 4.77 0.08 0.03 4.82 0.96
9 Office equipments incl intangibles 17.59 0.35 0.03 17.91 5.91
10 Assets not belonging to the Board 0.06 - 0.06 -
Total 6,406.86 3,416.41 2.30 9,820.97 566.34
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2015-16
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 331.94 46.56 378.50 -
2 Building & civil works 382.52 117.69 500.20 12.80
3 Other Civil works 2.78 - 2.78 0.15
4 Hydraulic Works 375.92 72.96 448.87 12.56
5 Line Cable Networking etc 3,484.36 391.12 3,875.47 184.49
6 Plants & Mechainery 5,218.97 1,435.66 6,654.63 275.57
7 Vehicles 1.70 0.12 1.82 0.19
8 Furniture Fixture 4.82 0.48 5.30 0.31
9 Office equipments incl intangibles 17.91 0.72 18.63 1.56
10 Assets not belonging to the Board 0.06 0.06 -
Total 9,820.97 2,065.29 - 11,886.26 487.61
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2016-17
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 378.50 75.88 454.38 0.00% -
2 Building & civil works 500.20 100.28 600.48 3.34% 16.71
3 Other Civil works 2.78 0.56 3.33 3.34% 0.09
4 Hydraulic Works 448.87 89.99 538.86 5.28% 23.70
5 Line Cable Networking etc 3,875.47 776.93 4,652.40 5.28% 204.62
6 Plants & Mechainery 6,654.63 1,334.08 7,988.71 5.28% 351.36
7 Vehicles 1.82 0.36 2.18 9.50% 0.17
8 Furniture Fixture 5.30 1.06 6.36 6.33% 0.34
9 Office equipments incl intangibles 18.63 3.73 22.36 6.33% 1.18
10 Assets not belonging to the Board 0.06 0.01 0.08 5.28% 0.00
Total 11,886.26 2,382.88 - 14,269.14 598.18
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2017-18
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land & Land Rights 454.38 95.44 - 549.82 0.00% -
2 Building & civil works 600.48 126.13 - 726.61 3.34% 20.06
3 Other Civil works 3.33 0.70 - 4.04 3.34% 0.11
4 Hydraulic Works 538.86 113.19 - 652.05 5.28% 28.45
5 Line Cable Networking etc 4,652.40 977.23 - 5,629.63 5.28% 245.65
6 Plants & Mechainery 7,988.71 1,678.02 - 9,666.73 5.28% 421.80
7 Vehicles 2.18 0.46 - 2.64 9.50% 0.21
8 Furniture Fixture 6.36 1.34 - 7.69 6.33% 0.40
9 Office equipments incl intangibles 22.36 4.70 - 27.06 6.33% 1.42
10 Assets not belonging to the Board 0.08 - - 0.08 5.28% 0.00
Total 14,269.14 2,997.21 - 17,266.34 718.10
Gross Block
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 3: Calculation of depreciation
ARR FOR THE FY 2016-17 TO FY 2018-19
FY 2018-19
SL. No. Name of AssetRate of
depreciationAt the
beginning of the
year
Additions
during the
year
Deductions /
Adjustment
At the end of
the year%
Depreciation on
Assets
1 2 3 4 5 6 7 8
1 Land and Land rights 549.82 121.93 - 671.75 0.00% -
2 Buildings 726.61 161.14 - 887.75 3.34% 24.27
3 Hydraulic works 4.04 0.89 - 4.93 3.34% 0.13
4 Other civil works 652.05 144.61 - 796.65 5.28% 34.43
5 Plant & machinery 5,629.63 1,248.48 - 6,878.11 5.28% 297.24
6 Lines & cables Network 9,666.73 2,143.79 - 11,810.52 5.28% 510.40
7 Vehicles 2.64 0.59 - 3.23 9.50% 0.25
8 Furnitures & Fixtures 7.69 1.71 - 9.40 6.33% 0.49
9 Office equipment 27.06 6.00 - 33.06 6.33% 1.71
10 capital spare at generating stations 0.08 0.02 - 0.09 5.28% 0.00
Total 17,266.34 3,829.16 - 21,095.49 868.93
Gross Block
Rs. CrsForm 3: Operation & Maintenance Expenses - R&M Expenses
SL.
No.Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 10
1 Plant & Machinery 3.64 5.21 8.30 6.63 8.76 6.88 7.28 7.69
2 Building 0.08 0.02 0.47 0.53 0.16 0.27 0.28 0.30
3 Civil Works 0.29 0.19 0.24 0.61 0.43 0.37 0.39 0.41
4 Hydraulic work - 0.00 - - 0.00 0.00 0.00 0.00
5 Lines & Cable network 3.42 1.64 2.80 2.51 3.38 2.91 3.07 3.25
6 Vehicles 0.37 0.31 0.42 0.44 0.49 0.43 0.46 0.48
7 Furniture & Fixtures 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00
8 Office equipments 0.16 0.17 0.32 0.30 0.31 0.26 0.28 0.30
9 Total Expenses 7.98 7.53 12.55 11.02 13.53 11.13 11.76 12.43
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Rs. CrsForm 3: Operation & Maintenance Expenses - Employee Cost
SL.
No.Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 10
1 Salaries (Basic) 182.92 185.95 209.27 229.74 257.04 225.17 238.05 251.66
2 DA 103.72 132.41 184.90 234.66 299.43 299.43 299.43 299.43
3 Other Allowances 14.88 14.37 16.66 16.71 18.51 17.15 18.13 19.17
4 Overtime 5.37 1.31 1.68 6.67 12.38 5.80 6.13 6.48
5 Bonus 5.47 6.16 6.96 7.07 7.76 7.07 7.47 7.90
Subtotal 1 312.36 340.19 419.48 494.85 595.12 554.61 569.21 584.64
6 Leave Travel Assistance 0.05 0.03 0.02 0.02 0.04 0.03 0.03 0.04
7 Earned Leave Encashment 19.86 20.15 23.45 26.71 33.84 26.22 27.72 29.31
8 Medical Expense Re-Imbursement 0.37 0.33 0.53 0.39 0.23 0.39 0.41 0.44
9Payment Under Workman'S Compensation
And Gratuity- - 2.92 4.79 4.70 2.62 2.77 2.93
10 Board's Contribution to CPS 5.91 4.61 7.24 9.09 13.25 8.48 8.96 9.48
11 Staff Welfare Expenses 0.20 0.11 0.18 0.60 0.41 0.32 0.33 0.35
12 Terminal Benefits 22.06 214.46 246.19 293.63 317.40 231.26 244.49 258.47
13 Grand Total 360.81 579.89 700.01 830.08 964.99 823.94 853.94 885.66
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 6: Operation & Maintenance Expenses - A&G Expenses
SL.
No.Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17
FY 2017-
18FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 10
1 Rent, Rates & Taxes 0.44 0.88 0.70 0.67 0.81 0.74 0.78 0.82
2 Telephone, Postage & Telegrams 0.89 1.16 1.09 1.05 1.12 1.12 1.19 1.25
3 Consultancy Charges 0.10 0.55 2.64 0.26 - 0.75 0.79 0.84
4 Conveyance & Travel 8.74 10.95 10.28 12.67 13.83 11.94 12.62 13.34
5 Registrar of Companies 1.97 0.29 0.02 - - 0.48 0.51 0.54
6 Insurance 0.04 0.07 0.07 0.04 0.08 0.06 0.07 0.07
7 Insurance (1% on Net Fixed Assets) - - - - -
8 Fees & Subscriptions 0.22 0.02 0.01 0.00 0.01 0.05 0.06 0.06
9 Books & Periodicals 0.01 0.00 0.00 0.00 0.01 0.01 0.01 0.01
10 Printing & Stationery 0.61 0.52 0.42 0.41 0.41 0.50 0.53 0.56
11 Advertisement Expenses 0.08 0.07 0.08 0.12 0.20 0.12 0.12 0.13
12 Petty Office Maintenance Expense 0.70 0.67 0.15 0.15 0.23 0.40 0.43 0.45
13 Electricity Charges 0.36 0.47 1.28 0.90 1.02 0.85 0.90 0.95
14 Water Charges / Cold weather expenses 0.23 0.14 0.20 0.20 0.22 0.21 0.22 0.23
15 Miscellaneous Expenses 0.59 0.28 0.82 1.16 0.94 0.80 0.85 0.90
16 Legal Charges 0.13 0.65 1.01 0.24 1.11 0.66 0.70 0.74
17 Audit Fee/Statutory Audit Fee 0.04 0.05 0.06 0.07 0.07 0.06 0.06 0.07
18 Technical Fees - 0.03 0.06 0.06 0.08 0.05 0.05 0.05
19 Freight Material related Expenses 0.92 1.27 1.86 1.72 2.49 1.75 1.85 1.95
20 Other Purchase Related Expenses 0.14 0.14 0.41 0.17 0.16 0.22 0.23 0.24
21 Entertainment Charges 0.04 - - - - 0.01 0.01 0.01
22 Training Expense 0.20 0.03 0.08 0.26 0.15 0.15 0.16 0.17
23 Public Expenses / Other professinal charges 0.03 0.03 0.06 0.00 0.00 0.03 0.03 0.03
24 Watch and Ward Expense 3.15 5.01 5.33 6.19 7.63 5.78 6.11 6.46
25 Honororium (Food Allwo.) for SO in Chennai - - - - 0.03 0.01 0.01 0.01
26 Total Admin and General Expenses 19.62 23.27 26.62 26.34 30.61 26.74 28.27 29.88
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Rs. CrsForm 7: Operation & Maintenance Expenses - Summary
SL. No. Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 11
1 Repair & Maintenance Expenses 7.98 7.53 12.55 11.02 13.53 11.13 11.76 12.43
2 Employees Cost 360.81 579.89 700.01 830.08 964.99 823.94 853.94 885.66
3 Admn. & General Expneses 19.62 23.27 26.62 26.34 30.61 26.74 28.27 29.88
4 Total Operation and Maintenance expenses 388.41 610.69 739.18 867.44 1,009.13 861.80 893.97 927.98
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Rs. CrsForm 7A- Expenses Capitalised
SL. No. Details FY 2011-12FY 2012-13FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 11
1 Employee Cost Capitalised 69.33 65.71 78.47 89.56 97.40 83.16 86.19 89.39
2 A&G Cost Capitalised 13.61 21.57 39.12 46.56 50.59 4.85 5.13 5.43
3 R&M Cost Capitalised 1.34 0.63 2.27 1.46 3.79 3.12 3.30 3.48
4 Fabrication charges added to the stock 0.00 - 0.01 0.00 0.01 - - -
5 Other debits capitalised 1.38 0.17 0.11 0.13 1.23 - - -
6 Total Operation and Maintenanceexpenses 85.65 88.08 119.97 137.72 153.02 91.14 94.62 98.30
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 8: Reasonable Return / Return on Equity Rs. Crs
SL.
No.Details Units FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 11
1 Opening Balance of Equity Rs. Crs - 406.46 913.37 1,082.34 1,953.45 2,207.98 2,413.60 2,713.32
2 Additions during the year Rs. Crs 406.46 506.91 168.97 871.10 254.54 205.62 299.72 382.92
3 Closing Balance of Equity Rs. Crs 406.46 913.37 1,082.34 1,953.45 2,207.98 2,413.60 2,713.32 3,096.24
4 Average Equity Rs. Crs 203.23 659.92 997.86 1,517.89 2,080.71 2,310.79 2,563.46 2,904.78
5 Return on Equity @ 14% 14% 28.45 92.39 139.70 212.51 291.30 323.51 358.88 406.67
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Rs. CrsForm 9: Other Debits
SL. No. Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 11
4 Miscellaneous losses and write off 0.15 6.27 0.04 - 0.49 - - -
Total Other Debits 0.15 6.27 0.04 - 0.49 - - -
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Rs crs
SL. No. Details FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19Audited Audited Audited Audited Audited Projections Projections Projections
1 2 4 5 6 7 8 9 10 11
I Income relating to previous year
1.1 Fuel related gains - - - - - - - -
1.2 Receipts from consumers 0.03 3.74 18.31 2.92 0.13 - - -
1.3 Interest Income 1.07 0.06 - - 0.00 - - -
1.4 Excess provision for I.T. 0.15 0.03 0.01 0.03 - - - -
1.5 Excess provision for Depreciation 0.99 - - - 807.78 - - -
1.6 Excess provn. for Int.& Fin.charges 1.99 9.14 2.07 8.16 839.46 - - -
1.7 Other excess provision 0.76 1.53 18.30 10.90 186.65 - - -
1.8 Other income 2.27 10.16 212.99 24.94 19.74 - - -
Total Income 7.26 24.67 251.68 46.96 1,853.76 - - -
II Prior Period Expenses/losses
2.1 Operating expenses - 0.00 0.04 - - - - -
2.2 Material related expenses - 0.00 0.00 6.93 - - - -
2.3 Employees cost 9.49 290.06 61.13 24.00 5.56 - - -
2.4 Depreciation under provided 0.20 - - - - - - -
2.5 Interest &Finance charges 0.04 13.46 1.17 0.02 1,491.28 - - -
2.6 Other charges 1.27 13.09 17.62 4.78 502.74 - - -
Total Expenses 11.00 316.62 79.97 35.73 1,999.59 - - -
III Total Net Prior Period Credit / Charges 3.74 291.95 (171.71) (11.23) 145.83 - - -
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Form 10: Prior Period Income
Form 11: Available Capacity of Transmission System
S. No. Particulars FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
% % % % %
1 400 KV Lines 99.80% 99.78% 99.07% 98.24% 98.98%
2 230 KV Lines 99.63% 99.58% 99.07% 98.85% 98.86%
3 110 KV Lines 99.62% 99.68% 98.93% 98.91% 98.00%
4 66 KV Lines 99.96% 100.00% 99.23% 98.86% 99.55%
7 Annual Availability achieved 99.75% 99.76% 99.07% 98.71% 98.85%
Incentive
SL. No. Particulars FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
% % % % %
1 Equity (@ 1%) 203.23 659.92 997.86 1517.89 2080.71
2 Annual Availability achieved 99.75% 99.76% 99.07% 98.71% 98.85%
3 Target Availability 98% 98% 98% 98% 98%
4 Incentive 3.56 11.61 10.72 10.81 17.63
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
S. No. Voltage FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Audited Audited Audited Audited Audited
1 230 KV 0.76% 0.80% 0.84% 0.75% 0.83%
2 110 KV 3.48% 3.34% 3.25% 3.34% 3.28%
Total 4.25% 4.15% 4.09% 4.09% 4.11%
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 12: Details of Transmission Loss
Rs. Crs
SL. No. Particulars Reference FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 O & M expenses Form 2 (One Month) 25.23 43.55 51.60 60.81 71.34 64.22 66.61 69.14
2 Maintenance Spares 1% of Historic Cost of Transmission
Assets Escalated @ 6%49.14 53.55 67.15 102.08 124.76 149.82 181.23 221.31
3 Receivables Form 1 (Two Month Receivable) 284.51 396.85 460.82 296.01 384.21 348.22 454.68 506.40
4 Total Working Capital 358.88 493.95 579.57 458.90 580.30 562.26 702.52 796.85
5 Rate of Interest on Working Capital 13.00% 14.75% 14.45% 14.75% 14.75% 14.05% 14.05% 14.05%
6 Interest on Working Capital 46.65 72.86 83.75 67.69 85.59 79.00 98.70 111.96
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Form 13: Interest on Working Capital
ARR FOR THE FY 2016-17 TO FY 2018-19
Rs. Crs
S. No. Head of income FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Audited Audited Audited Audited Audited Projections Projections Projections
1 Interest on Staff loans & Advances 0.71 0.76 0.75 1.07 1.82 2.01 2.21 2.43
2 Delayed Payment Charges from Consumers - - 0.03 0.01 - - - -
3 Interest on Advances to Suppliers / Contractors 2.75 - - 0.00 0.00 0.00 0.00 0.00
4 Interest on Banks (other than on Fixed Deposits) - - - 0.02 0.03 0.03 0.03 0.04
5 Income from Trading 6.45 4.61 4.47 1.45 1.81 2.90 4.64 7.43
6 Income fee collected against Staff Welfare Activities 0.02 0.02 0.01 0.02 0.02 0.02 0.02 0.02
7 Miscellaneous Receipts 27.88 28.47 106.86 157.52 198.13 237.75 285.30 342.36
8 Income from Inter State Lines - - - - - 66.91 12.16 12.16
9 Recovery from Staff for Transport Fare - - 0.03 0.06 0.03 0.04 0.04 0.04
Total 37.80 33.85 112.16 160.15 201.84 309.66 304.41 364.48
Form 16: Details of Other Income
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Loading of TANTRANSCO System
SL. No. Generating Station FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
1 Enore TPS 375 373 377 273 267 269 269 269
2 Tuticorin TPS 966 966 965 964 964 961 961 961
3 Mettur TPS I 771 770 769 768 769 769 769 769
4 NCTPS 577 577 571 571 573 576 576 576
5 Mettur TPS Stage -2 - - 549 556 562 547 547 547
6 North Chennai TPS Stage -2 UI
- - - 557 1,114 1,100 1,100 1,100
7 North Chennai TPS Stage -2 UII
- - - 557 - - - -
8 ETPS Supercritical Expansion
Project - - - - - - - 561
Total Thermal 2,689 2,686 3,231 4,246 4,248 4,221 4,221 4,782
Gas Stations
1 KGTPS 94 95 94 92 93 91 91 91
2 BBGTPS 119 119 119 94 113 113 113 113
3 TKGTPS 101 102 99 97 98 96 96 96
4 VGTPS -I 89 89 89 89 90 88 88 88
5 VGTPS -II 86 86 86 86 - 85 85 85
Total Gas 490 491 487 459 393 472 472 472
Loading of TANTRANSCO System
SL. No. Generating Station FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Hydro
1 Erode 452 451 489 493 490 490 490 490
2 Kadamparai 592 591 593 591 591 591 591 591
3 Kundah 830 823 830 830 829 829 829 829
4 Tirunelveli 351 351 360 361 364 366 366 366
Total Hydro 2,224 2,216 2,272 2,274 2,274 2,276 2,276 2,276
Wind
1 Tirunelveli and Udumalpet 17 17 17 17 17 17 17 17
Total TANGEDCO Stations 5,420 5,411 6,007 6,996 6,932 6,987 6,987 7,548
Central Generating Stations
1 NLC - TS - I 418 418 475 475 475 475 475 475
2 NLC - TS - II (Stage -I) 171 171 174 169 166 166 166 166
3 NLC - TS - II (Stage -II) 256 256 259 252 248 248 248 248
4 NLC - TS - I (Expansion) 205 205 205 199 202 202 202 202
5 NTPC SR (I & II) 504 505 508 494 479 479 479 479
6 NTPC SR (III) 127 127 128 124 121 121 121 121
7 NTPC - ER 50 50 35 34 35 35 35 35
8 NTPC - Talcher - II 469 469 466 449 448 448 448 448
9 Kayankulam - - - - - - - -
10 MAPS 331 296 297 287 287 287 287 287
11 KAIGA 228 204 209 205 198 198 198 198
Loading of TANTRANSCO System
SL. No. Generating Station FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
12 Simahddri (Stage -II) 17 34 212 204 206 206 206 206
13Kudankulam(U1-COD on
31.12.2014)- - - 500 503 1,005 1,005 1,005
14NLC - TS - II (Expansion) U1+U2
- - - - 236 236 236 236
15 MAPS (Additional) - - - - - - 138 138
16 NTPC - TNEB - JV Vallur (3x500
MW) (U1+U2+U3)- 351 669 978 975 975 975 975
17 NLC - TNEB - JV at Tuticorin
(2x500 MW) (U1+U2)- - - - 381 381 381 381
18Unscheduled Interchange/ Power
Purchase from Pool- - - - - - - -
19Special Allocation during peak hrs.
75 75 75 - - - - -
20 Kudgi STPP ( 3x800 MW) - - - - - 89 267 267
21Neyveli New TPP at Neyveli
(2x500 MW)- - - - - - 290 579
Total Central Generating Station 2,850 3,160 3,712 4,370 4,960 5,551 6,156 6,446
Loading of TANTRANSCO System
SL. No. Generating Station FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
IPP's
1 GMR 190 190 190 190 - - - -
2 Samalpatti 101 101 101 101 - - - -
3 PPN 321 321 321 321 321 321 321 321
4 Madurai 102 102 102 102 102 102 102 102
5 ST-CMS (TAQA) 226 226 226 226 226 226 226 226
6 ABAN(LANCO) 113 113 113 113 113 113 113 113
7 Penna (Pioneer) 53 53 53 53 53 53 53 53
Total IPP's 1,106 1,106 1,106 1,106 814 814 814 814
NCE
1 CPP 151 75 75 75 74 74 74 74
2 Solar 15 20 88 92 1,075 1,412 1,553 1,708
3 Wind (Non REC) 7,065 6,909 7,201 7,417 7,553 7,937 8,176 8,421
4 Cogeneration 617 659 659 659 659 659 659 659
5 Cogeneration - State 15 155 155 155
6 Biomass (Non REC) 75 171 176 223 218 218 218 218
Total NCE 7,923 7,835 8,198 8,467 9,594 10,456 10,835 11,235
Total Loading 17,300 17,512 19,023 20,940 22,301 23,807 24,792 26,043
Sl.No FY 16-17 FY 17-18I.a. 1,671.52 1,735.68 b. 258.34 272.91 c. 9.88 9.88 II.a. 0.07 0.07 b. 84.87 93.36 c. 48.63 53.50 III. 16.00 17.60
2,089.31 2,183.00
Particulars Units FY 2016-17 FY 2017-18
Existing LTOA Transmission Charges Rs./MW/Day 2903 2903FOR TANGEDCOWind Energy MW 2015 2015BioMass Energy MW 218 218Co-Generation MW 659 659Solar MW 1412 1412Others MW 14041 14646Total Capacity 18345 18951Revenue as per Existing Tariff Wind Energy - 40% Rs. Crs 85.41 85.41 BioMass Energy - 50% Rs. Crs 11.55 11.55 Co-Generation - 60% Rs. Crs 41.90 41.90 Solar - 30% Rs. Crs 44.88 44.88 Others - 100% Rs. Crs 1,487.78 1,551.93 Total Rs. Crs 1,671.52 1,735.68
FOR OTHER LONG TERM USERSWind Energy MW 5040 5278BioMass Energy MW 0 0Co-Generation MW 0 0Solar MW 0 141Others MW 422 422Total Capacity 5462 5841Revenue as per Existing Tariff Wind Energy - 40% Rs. Crs 213.62 223.71 BioMass Energy - 50% Rs. Crs - - Co-Generation - 60% Rs. Crs - - Solar - 30% Rs. Crs - 4.48 Others - 100% Rs. Crs 44.71 44.71 Total Rs. Crs 258.34 272.91
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Calcualtion of Exisitng Revenue
Calculation of Existing Revenue
Details of Transmission Charges and other
charges INR in CrDescription
Transmission ChargesFor TANGEDCO
Reactive Energy ChargesTotal
Other Long Term Open Access Consumers Short Term Open Access consumers Scheduling & System Operation ChargesFor TANGEDCOOther Long Term Open Access Consumers Short Term Open Access consumers
Sl. No. Particulars Total Gap (Rs. Crs.)
A
1 True-up Revenue Gap of FY 2011-12 (7.67)
2 True-up Revenue Gap of FY 2012-13 98.37
3 True-up Revenue Gap of FY 2013-14 1,432.28
4 True-up Revenue Gap of FY 2014-15 (302.51)
5 True-up Revenue Gap of FY 2015-16 (341.79)
6 Estimated Revenue Gap of FY 2016-17 (323.61)
7TOTAL DEFICIT (-)/ SURPLUS (+) OF THE PAST YEAR
ADJUSTED IN ENSUING YEAR555.07
Total Past Gap
TAMIL NADU TRANSMISSION CORPORATION LIMITED
ARR FOR THE FY 2016-17 TO FY 2018-19
Total Gap to be recovered
Total Gap
FY 2017-18
1 Net Annual Revenue Requirement Rs. Crores 2,728.07
2Less: Revenue from Scheduling & Operating
ChargesRs. Crores (146.93)
3 Less: Revenue from Reactive Energy Charges Rs. Crores (17.60)
4 Gap of Past Years to be recovered Equally Rs. Crores 555.07
5 Total Proposed Revenue Requirement Rs. Crores 2,008.47
6
a Wind Energy MW 7,293.56
b BioMass Energy MW 218.00
c Co-Generation MW 659.00
d Solar MW 1,553.00
e Others MW 15,068.46
f Total Allotted Capacity MW 24,792.20
7 No. of Days No. 365
8 Transmission Charges Rs./MW/Day 2,902.83
9 Transmission Tariff for Short Term open access (Rs./MW/Hr) 120.95
TAMIL NADU TRANSMISSION CORPORATION LIMITED
Allotted capacity
ARR FOR THE FY 2016-17 TO FY 2018-19
Proposed Revenue
UnitParticularsSl. No.
FORM – 2
BEFORE THE HON’BLE TAMIL NADU ELECTRICITY REGULATORY COMMISSION,
CHENNAI
Filing No :
Case No
: M.P.No
of 2017
IN THE MATTER OF : Praying for Approval of Aggregate Revenue Requirement (ARR) for the financial year 2016- 17 to 2018-19.
Tamil Nadu Transmission Corporation Ltd., (TANTRANSCO),
N.P.K.R.R Maaligai, 144, Anna Salai, Chennai -2. ……. Petitioner
Versus
NIL ---- Respondent
Affidavit verifying the petition
I, S.Shanmugam, aged about 54 years S/o M.Sivanu, serving as the
Managing Director/TANTRANSCO, Tamil Nadu Transmission Corporation
Limited (TANTRANSCO) having office at No. 144, Anna Salai, Chennai–
600002, do hereby solemnly affirm and sincerely state as follows:
1. I am the Managing Director of TANTRANSCO, the petitioner herein, as
such I am well acquainted with the facts of the case and authorized
to file the present petition.
2. I solemnly affirm on this the 30th day of January 2017 that the
contents of the above petition are true to my knowledge and I believe
that no part of it is false and no material has been concealed there
from.
Deponent
Verification
I, the above signed petitioner do hereby solemnly affirm at Chennai on this
day of 30 th January 2017 that the contents of the above petition are true and correct to
the best of my knowledge and no material has concealed there from.
Deponent
Signed before me at Chennai on this 30th day of January 2017
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