ORDER
1. The application has been made by petitioner, NTPC Ltd. for approval of provisional tariff of Unit-I of Kahalgaon Super Thermal Power Station, Stage-II (hereinafter referred to as “the generating station”) from the date of its commercial operation to 31.3.2009 based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 (herein after referred to as “the 2004 regulations”).
2. The power generated from the generating station is to be supplied to the beneficiaries in the Eastern, Western and Northern Regions, the respondents herein. Stage – II of the generating station comprises two units of 500 MW each in Phase – I and one unit of 500 MW in Phase -II. Unit I of Stage-II was synchronized on 31.3.2007 and the same is expected to be declared under commercial operation in the current month. The Commission vide its order dated 22.11.2006 in PetitionNo. 69/2006 had allowed tariff for sale of infirm power @ 130.15 paise/kWh with FPA for Phase – I, from the date of synchronization of Unit-I.
3. The petitioner has considered the capital cost of Rs. 159238 lakh based on audited accounts as on 31.3.2007. Accordingly, the petitioner has claimed the following provisional Annual Fixed Charges:
(Rs. in lakh)
2007-08
2008-09
Depreciation
5806
5806
Interest on Loan
8437
7897
Return on equity
6688
6688
Advance Against Depreciation
2660
0
Interest on Working Capital
2295
2243
O&M Expenses
5260
5475
Total
31146
28109
4. In addition, the petitioner has claimed energy charges @ 120.81 piase/kWh.
5. The petitioner’s accounts are maintained on accrual basis. Therefore, the petitioner was directed to furnish details of actual expenditure based on cash outflow. The petitioner has submitted vide its affidavit dated 30.11.2007 that actual cash expenditure as on 31.8.2007 was Rs. 144679 lakh as against the amount of Rs. 159238 lakh claimed in the application. It is seen that more than 90% of the capital cost claimed by the petitioner has actually been incurred in the form of cash outflow. Without going into the details of the prudence or otherwise of the capital expenditure at this stage, which the Commission will consider in accordance with law at the time of final determination of tariff, we allow the following provisional Annual Fixed Charges, which represent 90% of the Annual Fixed Charges claimed by the petitioner and are subject to adjustment after the tariff is finally determined by the Commission:
(Rs. in lakh)
2007-08
2008-09
Annual Fixed Charges
28031
25298
6. The Annual Fixed Charges for part of the year shall be payable on pro rata basis.
7. The petitioner has claimed energy charges of 120.81 paise/kWh based on the following operational norms contained in the 2004 regulations and weighted average prices and GCVs of coal for the preceding three months i.e. Jan to Mar 2007. Sp. Oil consumption Ml/kWh 2 Auxiliary consumption % 7.5 Heat Rate K Cal/KWh 2450
Sp. Oil consumption
Ml/kWh
2
Auxiliary consumption
%
7.5
Heat Rate
K Cal/KWh
2450
8. The computation of the energy charges by the petitioner based on the above norms are found to be in order. Accordingly, provisional energy charges are awarded at the rate of 120.81 paise/kWh as per the following details:
Description
Unit
Capacity
MW
500
Operational hours at PLF corresponding
to availability of 80%
80.00%
7027.20
Gross Station Heat Rate
Kcal/kWh
2450.00
Specific Fuel Oil Consumption
Ml/kWh
2.00
Aux. Energy Consumption
%
7.50
Weighted Average GCV of Oil
KCal/l
9954.00
Weighted Average GCV of Coal
KCal/Kg
3026.00
Weighted Average Price of Oil
Rs./KL
21125.28
Weighted Average Price of Coal
Rs./MT
1338.89
Heat contributed from SFO
Kcal/kWh
19.91
Heat contributed form Coal
Kcal/kWh
2430.09
Specific Coal consumption
Kg/kWh
0.80
Rate of energy charge ex-bus per kWh
sent
Paise/kWh
120.81
9. The above provisional energy charges shall be subject to Fuel Price Adjustment (FPA) for variation in GCV and prices of fuels on month to month basis and also the final tariff to be approved. In order to arrive at the price of secondary fuel oil for a particular month for the purpose of application of FPA, the weighted average price (in case of more than one type of secondary fuel oil) shall be computed on “as on consumed basis” and not on “as on procured basis” during that month. The price so calculated shall be applied to the normative secondary fuel oil consumption.
10. The petitioner shall file the petition for approval of final tariff latest by 31.10.2008.
11. With the above, the petition stands disposed of.