Multi-Year Tariff Petition for FY 2013-14 to FY 2015-16 - UERC

PETITION FOR TRUE-UP OF FY 2004 TO FY 2011-12 &MYT PETITION FOR THE CONTROL PERIOD FY 2013-14 TO FY 2015-16Financial YearTransmission LossFY 2011-12 1.88%It is submitted that the transmission losses depend on:• real power loading of the lines - which depends on the extent of over-drawal by UPCL - which isrecorded by the UI charges payable by the state of Uttarakhand - losses increase as a square ofreal power loading of its transmission lines;• reactive power that the lines carry - which is beyond the discretionary control of PTCUL becausethe same depends on the nature of demand drawn by UPCLPTCUL proposes to continue to maintain low transmission loss levels i.e. below 2% during the controlperiod as also indicated in the Business Plan. However, it is submitted that the loss reduction beyond thecurrent level depends entirely on the users of the transmission network.4.2.3 OPENING GROSS FIXED ASSETSIn the preceding Chapter 2 “Final true-up for FY 2004-05 to FY 2009-10 and provisional true-up for FY2011-12”, the approach for arriving at the opening GFA of Rs 263.17 Cr. has been elaborated by thePetitioner which was the amount of assets transferred to PTCUL post the bifurcation as per notificationno. 87/1/2004-06(3)/259/2003 dated May 31, 2004.In the FY 2005-06 Tariff Order dated 25.04.2005, the Hon‟ble Commission had fixed the opening value ofGFA transferred to PTCUL based on the total asset base of Rs. 508 Crore for UPCL as on November 9,2001 instead of provisional value of Rs. 1058.18 Crore taken by UPCL in its accounts. Accordingly onpro-rata basis, the Commission had considered the value of old transmission assets transferred toPetitioner from transmission assets of UPCL as Rs. 108.26 Crore.The Commission had further allowed additional capitalizations upto 31.3.2003 such that the original valueof the GFA as on 31.3.2003 was fixed at Rs. 126.34 Crore for PTCUL against the value of Rs. 263.17Crore assigned in the provisional transfer scheme. Further, the UERC in all the tariff orders upto FY 2012-13 has consistently directed PTCUL to approach the UERC for suitable adjustment in the opening valueof GFA upon finalisation of the Transfer Scheme.On 27 th April 2012 vide an order No. 117/I(2)/2011-05/19/2002, the Govt of Uttarakhand has approved thevalue of GFA of Rs. 1058.18 Crore taken by UPCL in its accounts as on November 9, 2001. (The copy ofthe same has been endorsed to Hon‟ble UERC by the GoU).Further, the Hon‟ble Commission in its order dated 06.04.2010 had also directed PTCUL to get thescheme wise audit of the transmission assets done in order to reconcile the executed works whichPower Transmission Corporation of Uttarakhand Ltd. Page 27