ARR/Tariff Proposals of APTRANSCO for FY2005-06. Objections/Suggestions by Er. K.Raghu 28.02.2005. Consideration of Issues Raised During Public Hearings. Several important issues are raised during public hearings- in addition to those raised in the original petitions
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It appears that the Government has already decided to allocate PPAs to Discoms (OPTION-1)ignoring other options
Factors affecting Allocation:
If surcharge from OA consumer does not fully compensate for the loss of cross subsidy ( as per draft guidelines of MOP/Report of Task force on Power sector investments and Reforms), then Discoms with better consumer mix would suffer…as their present BST is kept high, taking existing favourable Consumer mix into consideration.
In view of the above I request the Commission to re-examine the whole issue of separation of Trading function from Transco.
Excess payments to SPECTRUM:
‘ the Board ( ie APTRANSCO) shall pay for the actual generation and notional generation above the threshold level of a PLF of 68.49% an incentive in the nature of increased ROE in accordance with the following formula
PLF < 68.5% 0.4% increase in ROE for every 1% increase in PLF above 68.5%
80.5 < PLF< 85.5 0.5% increase in ROE for every 1% increase in PLF above 68.5%
PLF>85.5% 0.6% increase in ROE for every 1% increase in PLF above 68.5%
Incentive Payable at 85% PLF:
=0.5% increase in ROE for every 1% increase in PLF above 68.5%
(85-68.5) X 0.5/100 X ROE
EQITY = Rs 117.92 Crore ( As per ARR of APTRANSCO- Page 69)
ROE allowable as per PPA = 16% on Equity ROE = (16/100) X 117.92 = Rs 18.86 crores
Therefore Incentive Payable to Spectrum at 85% PLF
= 16.5 x (0.5/100)x 18.86 crore = Rs 1.55 crore
NO SCOPE FOR ANY AMBIGUITY:
In fact there is no scope for ambiguity in the application of incentive provision as ROE is clearly defined in the PPA.
Excess Payments to GVK Project:
Total excess payments =Rs30.38 cr
New NCE Projects/capacities:
In view of the above I request the Commission to
Non-Collection of Liquidated Damages:
Issues involved in the recent order: