BEFORE THE HIMACfIAL PRADESH ELECTRICITY REGULATORY COMMISSION, SI-llMLA

Petition for Determination of Average Pooled

Purchase Cost for FY 2017-18

May 2017

RECEIVING OF ­HPERC, Kasum

Shimla-171009

Himachal Pradesh State Electricity Board Limited

HPSEB Limited May 20 17 e)

/ .~l~

BEFORE THE HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION, SHIMLA

IN THE MATTER OF:

IN THE MAITER OF

. . s,·QI).oFt FIlmg No. uJ ......... 'Dr -):.5 ;:>

Petition No.............. .

Determination of Average Pooled Power Purchase

Cost (APPC) for FY 2017-18

AND

Himachal Pradesh State Electricity Board Limited

(hereinafter referred to as "HP$EBL" or "The

HPSEBL"), Vidyut Bhawan, Shimla -171004

- Applicant

The Applicant respectfully submits as under: ­...,.­

1. Himachal Pradesh State Electricity Board Limited (HPSEBL) is a deemed

licensee under first provision of Section 14 of the Electricity Act, 2003 for

distribution and supply of electricity in the state of Himachal Pradesh.

Consequent to the enactment of the Electricity Act, 2003 (hereinafter referred

to as the /I Act"), the process of approval of proposed tariffs is vested with the )~

1,; ... ,

State Commission. !Jt­

2. Based on the provisions of Section 62 of the Act and in compliance with the

directives of the Commission on the matter, HPSEBL is filing the current

petition, for determination of Average Pooled Power Purchase Cost for FY

2017-18.

HPSEB Limited

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Table of Contents

AI: DEFINITIONS.............................................................................................. 4

A2:; INTRODUCI10N........................ ................................ .. .............................. 5

A3: BACKGROUND .......................................................................................... 5

A4: DETERMINATION OF APPC RATE Fok FY 2017-18 .•.........•......•........ 5

PROPOSAL FOR APPC RATE FOR FY 2017-18 ............. .................................. 6

PRAYER ................................................................................................................. 10

AFFIDAVIT.................................................. ...............................................................11

List Of Tables

TABLE 1: APPC RATE FOR FY 2017-18 ... ..... ...... .. ........................................................... 7

(E r t:~~ loy (:~. . ~:;RCrr) P lo ,, ' , . " '.. \0ommerciel) J.lP ::'U:: 2-ltl . V:ci' ul 8r.awan,

HPSEB Limited May 2017

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A1: DEFINITIONS

Disbibution Licensee means a licensee authorized to operate and maintain a

distribution system for supplying electricity to the consumers in his area of

supply as defined in the Act

Renewable energy sources means renewable sources such as small hydro, wind,

solar including its integration with combined · cycle, biomass, bio fuel

cogeneration, urban or municipal waste and such other sources as recognized or

approved by MNRE; excluding the nuclear power stations and hydel power

stations of capacity above 25 MW.

Eligible entity means the entity eligible to receive the renewable energy

certificates.

Pooled Cost of Purchase means the weighted average pooled price at which the

distribution licensee has purchased the electricity including cost of self­

generation, if any, in the previous year from all the energy suppliers long-term

and short-term, but excluaing t11~based on renewable energy sources, as the

case maybe.

Preferential Tariff: The tariff fixed / approved by the H on'ble Commission for

sale of energy to a distribution licensee from a generating station based on

renewable energy sources.

\ ~~ (Er. Kr,. GUPTA) Dy. Chief Engineer (SERCm . 0 /0 C"'wf Engineer (Commerdal) HPS[f' c.:d. V1dyUI Shawan.

HPSEB Limited May 2017 Page 4

A2: INTRODUCTION

The petition pertains to determination of Average Pooled Power Purchase Cost

(APPq for the financial year 2017-18. Regulation 5(1) of the CERC (Terms arid

Conditions for recognition and issuance of Renewable Energy Certificate for

Renewable Energy Generation) Regulations, 2010 amended from time to time,

specifies that:

A generating company engaged in generation of electricity from renewable energy

sources shall be eligible to apply for registration for issuance ofand dealing in Renewable .

Energy Certificates if it fulfils inter alia the following conditions:

It sells the electricity generated either

(i) To the distribution licensee of the area in Which the eligible entity is located, at

the average pooled power purchase cost ofsuch distribu tion licensee,

(ii) To any other licensee or to an open access consumer at a mutually agreed price, .

or through power exchange at market determined price. ..,.. A3: BACKGROUND

3.1 HPSEB Limited submits that while nearly all . the components of power

purchase cost is determined by CERC & HPERC in advance, the Average

. Pooled Power Purchase Rate (APPC Rate) is being determined by HPERC

on year on year basis.

3.2 HPSEB Limited thus submits the present petition before the Hon'ble

HPERC for determination of APPC rates for FY 2017-18.

A4;: DETERMINATION OF APPC RATE FOR FY 2017-18

4.1 As per CERC (Terms and Conditions for recognition and issuance of

J~!: Renewable Energy Certificate for Renewable Energy Generation

'. .. Regulations, 2010) (amended from time to time), Average Pooled Power ~ ~Ku · ·_rS~! ~III eymNQIary ~rchase Cost means: " - 811111A!1.N....... - .~ . :t . . ,

The weighted average pooled price at which the Distribution Licensee has

purchased the electricity including cost of self generation, if any, in the

previous year from all the energy suppliers, long-tenn and short-tenn, but

\ /.""\>~ . excluding those based on renewable energy sources, as the case may be. (H ~ t 6tJ;TA) . . Dy. C ~1 Engineer (SERCm . 0/0 C ef Engineer (Commeldai) ;lPSE lrttt. Vidyut;..;B;...haWaI1.~______________________ ________

HPSEB Limited May 2017 Page 5

4.2 Thus the definition focuses on the following:

(1) The Purchase ofElectridty should be from all energy suppliers,

(i) which includes long term suppliers

(ii) which includes short term suppliers

(iii) which includes own generation

(iv) which excludes renewable energy sources

(2) The Purchase of Electridty should be in the previous year only which in

this case is FY 2016-17,

Proposal for APPC Rate for FY 2017-18

4.3 In view of the above, the Average pooled power purchase cost is

computed for FY 2017-18 considering factors mentioned below:

(1) The purchase quantum and costs for FY 2016-17 are provisional as

the details of bills from some of the ISTS sources are yet to be

received.

(2) The arrears pertaining to past periods, which were paid in FY 2016­

17, have been excluded as these are not recurring in nature.

(3) Unscheduled Interchange (UI) has also not been included in line

with the philosophy approved by the Hon' l)le Commission in APPC

order for FY 2012-13.

(4) The PGCILj Transmission Chargesj ULDCj Other Charges have

also been excluded in line with the philosophy approved by the

Hon'ble Commission in APPC order of 2012-13.

The approved rates of Own generating sta tions have been taken

from Multi Year Tariff Order for 3rd control period from FY 2014-15

to FY 2018-19 for Generation Business of HPSEBL dt. 10th June 2014.

(6) The Forward (inward) Banking at zero cost has been considered as

approved by the commission in previous order.

oy..\~ (7) HPSEBL is procuring power from Shanan HEP to the extent of 1

. ~AJ' MW, however the cost for the same has not been considered as the hfef EngiIeIW (SERCITl

Chief Engineer ~ BMd. VIdyUt BhaWaf\.

HPSEB Limited May 2017 Page 6

bills have not been accepted by HPSEBL due to purchase rate ·

dispute and no payment has been made.

Table 1: APPC Rate for FY 2017-18

Power Purchase Cost (In Crore) FY 2016-17 (Provisional)

Stations MU PIU Rs. Cr PP Cost from HPSEBL Stations (above 25 MW)

Bhabha 186.40 67 12.49 Bassi 297.00 75 22.28 Giri 140.03 76 10.64 Larji 537.47 237 127.38 Total 1160.90 148.84 17279

PP Cost from BBMB Stations FY 2016-171Provisional)

I Stations MU PIU Rs. Cr BBMBOld 43.80 113.71 4.98 BBMBNew 320.63 Dehar 221.16 34.98 20.34 Pong 39.68 Total 625.27 40.50 I 25.32

-PP Co~m~TPC Stations FY 2016-17 (Provisional)

Stations MU P.fU Rs. Cr Anta(GF) 43.58 424.44 18.50 Anta(LF) 0.07 880.65 0.06 Anta (~) 0.03 2131.59 0.06 Auraiya(GF) 35.80 553.17 19.80 Auraiya(LF) 0.27 838.83 0.22

I

Auraiya(RF) ,

0.38 639.85 · . 0.24 Dadri(GF) 113.46 360.91 40.95 Dadri(LF) 0.13 830.83 0.10 J Dadri(RF) 0.32 550.47 0.17

Unchahar-I 92.76 337.19 31.28 Unchahar-II

, I 138.74 343.30 47.63

, .L ;:!it,chahar-III 82.21 382.76 31.47'-'

::~ Rihand-l STPS 228.88 253.01 57.91

: --,d-2STPS 248.16 243.42 60.41

"" ~~. STPS 228.64 319.57 73.07- .:.. KahaIgoan II 166.89 332.52 55.49 Singrauli STPP 54.76 184.46 10.10 Dadri II TPS 45.78 361.48 16.55

Jhajiar STPS 0.02 332.10 0.01 KoldamHEP 464.55 464.15 215.62 Total 1945.42 349.36 679.65

PP Cost from NHPC Stations I FY 2016-17 (Provisional)-

Stations \ MU PIU Rs. Cr

HPSEB Limited May 2017 Page7\ ~~ -~~r. K.L.•:T.:' •• ~ II

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m18 (H.P.)

· Power Purchase Cost (In Crore) FY 2016-17 (Provisional)

I Stations MU P.;u Rs.Cr Chamera-I 55.45 206.13 11.43 I

I Chamera-II 46.07 225.36 10.38 Salal 32.01 200.56 6.42 Tanakpur 10.63 394.13 I 4.19 Uri 74.06 193.81 14.35 -

Dhauli Ganga 32.84 317.42 10.42 Total 251.06 227.83 57.20

PP Cost from other Stations FY 2016-17JProvisionall

Stations MU P.;u Rs. Cr NAPP 96.51 257.92 24.89 RAPP 84.70 353.78 29.97 Nathpa Jhakri SoR 171.53 298.50 51.20 Nathpa Jhakri Equity 1535.92 301.13 II 462.52 Shanan (1 MW) 5.26 0.00 0.00 Shanan Extn (45 MU) 45.00 18.11 0.81 Yamuna (UJVNL) 356.23 101.71 36.23

· Khara 53.93 71.90 3.88

I Ba!?£a-II 1168.36 161.23 188.37 Rarnpur HEP SOR Share 47.81 386.86 18.49 Rampur HEP 26.10% Equity: Shar~_ - 499.18 361.41 180.41 KasangHEP 50.34 292.00 14.70 Total 4114.76 245.82 1011.47 I

PP Cost ofGoHP Free Power II FY 2016-17 (Provisional)

Stations MU Baira Sui! 6.13 Chamera-I 22.14 Charnera -II , 13.72

· Chamera-III 8.72 . Parbati-III 5.92 KoldamHEP

, 9.11

Shanan Share 3.53 Ranjeet Sagar Darn 55.65 Malana - I 69.92 Baspa - II 159.32

_Nathpa Jha~i 67.27 ~mpurHEP 7.65 ·J(al';anu HEP 7.59 tFWYitWlMicros (Upto 5 MW) 8.55 l'TlVate Micros (Above 5 MW) 66.97 Ghanvi ! 10.19-'

Baner . 3.91 Gaj 3.98 Khauli 4.18 Larji 72.46 Ghanvi-II

, 4.73 Total 611.65

P.;u 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00 292.00

Rs.Cr 1.79 6.47 4.01 2.55 I

1.73 266 1.03

16.25 20.42 46.52 19.64 2.23 2.22 2.50

19.55 I

2.97 1.14 1.16 1.22 21.16 1.38

178.60

I

HPSEB Limited May 2017 Page8 \ p~~--'\I, ."~·500~~ ,~ Chief EnginE* (CQmmetd

J.4psE8 l11td•Vk!yUt BI\aW8f).

• Power Purchase Cost (In Crore) FY 2016-17 (Provisional)

Stations MU Rs; CrP./U PP Cost of REC Projects

FY 2016-17 (Provisional) Stations MU P./U Rs.Cr Upto 25 MW_(REC Tariff) 306.20 250.00 76.55 Total

r 306.20 250.00 . 76.55II

PP Cost ofMarket and Bilateral Purchase I, FY 2016-17 (Provisional) I MUStations

Forward Banking 64.90 0.00Bilateral Purchase -,

172.57lEX Purchase Total 237.47 Grand Total 9252.71 Proposed APPC RateJin Paisefunit)

Rs.CrP./U 0.00 0.00 0.00 0.00

281.79 48.63 204.77 48.63 243.19 2250.21

243.19

4.4 In view of the above, HPSEBL would like to request the Hon'ble .

Commission to:

Approve the APPC Rate of 243.19 paise per unit for FY 2017-18 ",-­

\Er. ~it,Oy. Chief Engineer (SERCIT) . 0/0 Chief Engineer (Commercllll) HPSEB ~. Vldyut Bhawatl.

HPSEB Limited May 2017 Page 9

r PRAYER

4.5 HPSEBL requests the Hon'ble Commission to:

a) Approve the APPC Rates as proposed.

b) To make the APPC rates applicable with effect from Olst April 2017.

c) To condone any inadvertent omissions/ errors/ shortcomings and

permit the Petitioner to add / change/ modify/alter this filing and

make further submissions as may be required at a future date

d) To allow further submissions, addition and alteration to this Petition

as may be necessitating from time to time.

e) Treat the filing as complete in view of substdntial compliance as also

the specific requests for waivers withjustification placed on record;

f) And pass such other and further orders as are deemed fit and proper

in the facts and circumstances of the case.- ....- ­

B~T (Er: K.L.GUPTAT . -~-. .. Oy. Chief Engineer (SERcm 0/0 Chief Engineer (Comm&ldal) HPSEB ~. Vid)l\ll Bhawan.

HPSEB Limited May 2017 Page 10

I " BEFORE THE HIMACHAL PRADESH ELECfRICITY REGULATORY ~

COMMISSION, SHIMLA Filing No ............ , .... .

Petition No .............. .

IN THE MA TIER OF: Determination of Average Pooled Power Purchase

Cost (APPC) for FY 2017-18

AND

IN THE MATIER OF Himachal Pradesh State Electricity Board Limited

(hereinafter referred to as "HPSEBL" or "The

HPSEBL"), Vidyut Bhawan, Shimla -171004

- Applicant

AFFIDAVIT

I, Er. K. L. Gupta, son of Lt., Sh. D.R Gupta, aged about 55 years,

resident of Set No. II, Top Floor, Ganga Bhawan, Shankli, Shimla-171001,

occupation Dy. Chief 'Engine~' (SERe/ Tariff), % Chief Engineer

(Commercial), Vidyut Bhawan, I-fl>SEB Limited, Shimla-171 004, do hereby

solemnly affirm and declare that I have gone through the contents of the

accompanying petition and that the contents of the same are true and correct to

the best of my personal knowledge as derived from the official record.

I further solemnly affirm and verify that the contents of this affidavit

are true and correct to the best of my personal knowledge, no part of it is false

and nothing material has beenconcealed therein.

Verified and signed at Shimla on this ... .I.9t::-J.ay of May, 2017.

\-r;~))~

2.

HPSEB Limited

(Ef."K.CGUPTAr , - ,-'-v~

Dy, Chief Engineer (SERCm 0/0 Chief Engineer (Commercial) HPS[B :":d, Vldyul Bhawan.