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

4.3 ANNUAL TRANSMISSION CHARGES OF UITP SCHEMESPETITION FOR TRUE-UP OF FY 2004 TO FY 2011-12 &MYT PETITION FOR THE CONTROL PERIOD FY 2013-14 TO FY 2015-164.3.1 ABOUT THE UTTARAKHAND INTEGRATED TRANSMISSION PROJECTUttarakhand has a huge hydro power potential. Currently, approximately 2100 MW is under developmentby IPPs, 7300 MW by CPSUs and approximately 2500 MW by UJVNL. Further to improve power securityof the state and improve hydro-thermal mix, UJVNL has signed an MOU with GAIL to set up 300-500 MWgas based plants at Kashipur and Haridwar. Beyond the above capacities under execution/planning, thestate has the second largest potential (first being Himachal Pradesh) amongst the Indian states for smallhydro (< 25 MW) - which according to Ministry of New and Renewable Energy, Government of India isapproximately 1577 MW (as on 31.1.2011). Such huge development of Hydro Power Plants needs to beencouraged through a transmission pricing mechanism which allows the generators to have seamlessaccess to the pan-India market. This can be facilitated by adapting the Point of Connection (PoC)mechanism at the state level. This is critical for states like Uttarakhand because:i. The mechanism allows sharing of burden of transmission charges between generators andbeneficiaries – both inter-state and intra-state.ii.The Hydro power plant development in a basin happens in stages, whereas the transmissioninvestment is made taking the future development into consideration . Hence there is a needto adopt a mechanism which obviates the burden of transmission charges on initial investorsin generation.To facilitate the Hon‟ble Commission, PTCUL has instituted a study of alternative PoC mechanisms thatcan be adopted at the level of the state and yet be integrated with the mechanism adopted by CERC.Further, the PoC mechanism adopted by CERC requires identification of state-owned lines which arebeing utilized for transfer of inter-state power. The charges for such lines will be reimbursed by the CTUafter PTCUL signs Revenue Sharing Agreement (RSA) – which has been approved by CERC- with theCTU. However, for this purpose the ARR of the assets being used for transfer of inter-state power needsto be approved by the Hon‟ble Commission. Such an approval will allow PTCUL to charge for the intrastatelines being used by generators for inter-state transfer of power.PTCUL will submit the computations of PoC mechanisms for consideration by Hon‟ble Commission alongwith proposed regulations on the subject. In this section, the PTCUL has computed the ARR for suchlines and associated transmission system which will facilitate PTCUL to charge for the intra-state linesbeing used by generators for inter-state transfer of power and to charge for the use of these lines to interstateconsumers through CTU in accordance with the PoC mechanism adopted by the Hon‟ble CERC.Power Transmission Corporation of Uttarakhand Ltd. Page 43