Petition to Hon’ble Jharkhand State Electricity Regulatory

Submitted to Jharkhand State Electricity Regulatory Commission,Jharkhand State Electricity Regulatory Commission,Jharkhand State Electricity Regulatory Commission,Jharkhand State Electricity Regulatory Commission,

Ranchi

By

License Area – Saraikela - Kharasawan

JAMSHEDPUR UTILITIES & SERVICES COMPANY LIMITED

JAMSHEDPUR

November 11

Petition to

Hon’ble Jharkhand State Electricity Regulatory Commission for

Filing of Aggregate Revenue Requirement (“ARR”)

and

Determination of Tariff for 2012-13

of

Jamshedpur Utilities & Services Company Limited

TARIFF PETITION & FORMATS

I

Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13

BEFORE THE JHARKHAND STATE ELECTRICITY REGULATORY COMMISSION, RANCHI

Filing No…………

Case No…………

IN THE MATTER OF: Filing of the Aggregate Revenue Requirement (ARR) and

Determination of Tariff for FY 2012-13 for the Licensee

under Section 45, 46, 61, 62 and 86 of the Electricity Act,

2003 and as per the regulations of Jharkhand State

Electricity Regulatory Commission (JSERC) (Terms And

Conditions For Distribution Tariff) Regulation, 2010.

AND

IN THE MATTER Of: Jamshedpur Utilities and Service Company Limited

(hereinafter referred to as "JUSCO" which shall mean for

the purpose of this petition the Licensee), a company

incorporated under the provisions of the Companies Act,

1956 and having its main office at Jamshedpur - Petitioner

The Petitioner respectfully submits as under: -

1. Jamshedpur Utilities and Services Company Limited (JUSCO) is a company

incorporated in August 2003 under the provisions of The Companies Act, 1956

and is a wholly owned subsidiary of Tata Steel Limited.

2. JUSCO is the second power distribution licensee in Saraikela-Kharasawan area.

3. Pursuant to the enactment of the Electricity Act, 2003, JUSCO is required to

submit its ARR and Tariff Petitions as per procedures outlined in section 61, 62

and 64, of EA 2003, and the governing regulations thereof.

4. JUSCO had filed its last petition in January 2011 for approval of the ARR for FY

2009-10 and FY 2010-11 and determination of ARR & distribution tariff for FY

2011-12. The Hon’ble Commission issued its order on the same in August 2011.

The new tariff was applicable from 1st

September 2011.

II


5. The present petition is filed with the Hon’ble Commission for truing up of

Aggregate Revenue Requirement (ARR) for the FY 2010-11; Review of the revised

estimated ARR for FY 2011-12; approval for the projected ARR of FY 2012-13 for

JUSCO as per the Electricity Act, 2003, as per the provisions of the regulations

issued by the Hon’ble Jharkhand State Electricity Regulatory Commission (JSERC)

(Terms and Conditions For Distribution Tariff) Regulations, 2004, and JSERC

(Terms and Conditions for Determination of Distribution Tariff) Regulations,

2010, for the area under its operation.

6. This application has been prepared in accordance with Section 61, 62 of the

Electricity act 2003 and has taken into consideration the provisions of the JSERC

(Terms and Conditions for Distribution Tariff) Regulations, 2004 and JSERC

(Terms and Conditions for Distribution Tariff) Regulations, 2010, as notified by

Hon’ble Jharkhand State Electricity Regulatory Commission.

7. JUSCO has made best efforts to provide the necessary data in the prescribed

formats. Along with this petition, JUSCO is also submitting the statutory formats

with data and information to the extent available and would make available any

additional data required by the Hon’ble Commission from time to time.

Prayers to the Commission:

The petitioner respectfully prays that the Hon’ble Commission may:

� Examine the proposal submitted by the petitioner as detailed in the enclosed

proposal for a favourable dispensation;

Pass suitable orders with respect of the net ARR for FY 2012-13 as proposed by

JUSCO in this petition amounting to 14,409 Lacs along with the relevant

operational and financial parameters as proposed in the petition;

� Pass suitable orders with respect to the ARR for FY 2010-11 and FY 2011-12 for

the expenses already incurred by JUSCO for serving its consumers and approve

treatment of the gap as proposed by JUSCO;

� Accordingly, permit the petitioner to recover the unrecovered gap of FY 2010-11,

2011-12 and the likely gap for FY 2012-13;

III


� JUSCO may also be permitted to propose suitable changes to the respective ARRs

and the mechanism of meeting the revenue on further analysis, prior to the final

approval by the Hon’ble Commission;

� Condone delay in submission of the petition and Hon’ble Commission is

requested to accept the same for further processing;

� Condone any inadvertent omissions/errors/shortcomings and permit JUSCO to

add/change/modify/alter this filing and make further submissions as may be

required at a future date;

� Pass such further order, as the Hon’ble Commission may deem fit and

appropriate keeping in view the facts and circumstances of the case.

Jamshedpur Utilities and Service Company Ltd.

Petitioner

Jamshedpur

Dated: 10th

November 2011

IV


TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE

Chapter 1. Introduction ______________________________________________ 1-1

Chapter 2. Overall approach for present filing ____________________________ 2-3

Chapter 3. Truing up for FY 2010-11 ___________________________________ 3-11

Chapter 4. Review of Performance in FY 2011-12 _________________________ 4-29

Chapter 5. ARR Determination for FY 2012-13 ___________________________ 5-52

Chapter 6. Proposed Tariff Schedule ___________________________________ 6-71

Chapter 7. Compliance to Directives ___________________________________ 7-85

V


LIST OF TABLES

TABLE DESCRIPTION PAGE

Table 1: Assumptions for Allocation of Assets and Costs ................................................. 2-5

Table 2: Assumptions with Rationale for APR FY2011-12 & ARR FY2012-13 ................... 2-8

Table 3: Energy Balance for FY 2010-11 .........................................................................3-11

Table 4: Power Purchase Cost FY 2010-11 ......................................................................3-12

Table 5: Operation and Maintenance Expenses for FY 2010-11 .....................................3-14

Table 6: Comparison of per Unit O&M Costs ..................................................................3-15

Table 7: Interest during Construction Calculation ..........................................................3-16

Table 8: CWIP, GFA and Depreciation for FY 2010-11 ....................................................3-17

Table 9: Gross Fixed Assets for FY 2010-11 .....................................................................3-18

Table 10: Depreciation Breakup for FY 2010-11 .............................................................3-19

Table 11: Interest on Normative Loan – FY 2010-11 ......................................................3-20

Table 12: Interest and Finance Charges for FY 2010-11 .................................................3-21

Table 13: Reasonable Rate of Return for FY 2010-11 .....................................................3-21

Table 14: Income Tax for FY 2010-11 ..............................................................................3-22

Table 15: Non-Tariff Income ...........................................................................................3-22

Table 16: Calculation of Sharing of Gains for FY 2010-11 ..............................................3-25

Table 17: Distribution Losses of Other Utilities ...............................................................3-26

Table 18: Past Recoveries & Other Gaps till FY 2009-10 .................................................3-27

Table 19: Summarised ARR and Revenue Gap for FY 2010-11 .......................................3-28

Table 20: Number of Consumers - FY 2011-12 (H1 + H2) ...............................................4-30

Table 21: Connected Load/Contract Demand for FY 2011-12 (H1 + H2) ........................4-31

Table 22: Average Load Factor FY 2011-12 ....................................................................4-32

Table 23: Energy Sales in FY 2011-12 (H1 + H2) .............................................................4-32

Table 24: Energy Sales in FY 2011-12 (Approved & Revised Projections) .......................4-33

Table 25: Energy Balance for FY 2011-12 .......................................................................4-34

Table 26: Power Purchase Cost for FY 2011-12 ..............................................................4-35

Table 27: Inflation Rate ...................................................................................................4-37

Table 28: Employee Cost for FY 2011-12 ........................................................................4-38

Table 29: Breakup of Employee Cost for FY 2011-12 (H1 + H2) ......................................4-39

Table 30: A & G Expenses for FY 2011-12 .......................................................................4-40

Table 31: Break up of A & G Expenses for FY 2011-12 (H1 + H2)....................................4-41

Table 32: O&M Expenses for FY 2011-12 ........................................................................4-42

Table 33: CWIP, GFA and Depreciation for FY 2011-12 ..................................................4-43

Table 34: GFA for FY 2011-12 .........................................................................................4-43

Table 35: Net Depreciation for FY 2011-12 .....................................................................4-44

VI


Table 36: Normative Loans & Interest Cost for FY 2011-12 ............................................4-46

Table 37: Normative Equity & Return on Equity for FY 2011-12 ....................................4-47

Table 38: Revenue from Existing Tariff for FY 2011-12 – H1 ..........................................4-49

Table 39: Revenue from Existing Tariff for FY 2011-12 – H2 ..........................................4-49

Table 40: Revenue from Existing Tariff for FY 2011-12 – (H1 + H2)................................4-50

Table 41: Revised ARR for FY 2011-12 ............................................................................4-51

Table 42: Revenue Gap / (Surplus) for FY 2011-12 .........................................................4-51

Table 43: Calculation of Number of Consumers - FY 2012-13 ........................................5-52

Table 44: Connected Load - FY 2012-13 ..........................................................................5-53

Table 45: Average Load Factor - FY 2012-13 ..................................................................5-54

Table 46: Energy Sales - FY 2012-13 ...............................................................................5-55

Table 47: Energy Balance - FY 2012-13 ...........................................................................5-56

Table 48: RPO for JUSCO .................................................................................................5-58

Table 49: Power Purchase from Renewable Sources - FY 2012-13 .................................5-58

Table 50: Power Purchase Cost - FY 2012-13 ..................................................................5-59

Table 51: Employee Expenses - FY 2012-13 ....................................................................5-61

Table 52: A & G Expenses - FY 2012-13 ...........................................................................5-62

Table 53: Summary O & M Expenses - FY 2012-13 .........................................................5-62

Table 54: Capital Expenditure and Capitalization for FY 2012-13 ..................................5-64

Table 55: CWIP, GFA & Depreciation - FY 2012-13 .........................................................5-65

Table 56: Depreciation for FY 2012-13 ...........................................................................5-66

Table 57: Interest & Finance Charges for FY 2012-13 .....................................................5-67

Table 58: Return on Equity - FY 2011-12 .........................................................................5-68

Table 59: Revenue from Sale of Power at Existing Tariff - FY 2012-13 ...........................5-69

Table 60: Summary of ARR - FY 2012-13 ........................................................................5-70

Table 61: Revenue Gap / (Surplus) - FY 2012-13 .............................................................5-70

Table 62: Tariff for Different Domestic Categories .........................................................6-72

Table 63: Tariff for NDS Category ...................................................................................6-73

Table 64: Tariff for LTIS Category....................................................................................6-74

Table 65: Tariff for IAS Cagtegory ...................................................................................6-76

Table 66: Tariff for HTS Category ....................................................................................6-77

Table 67: Tariff for HTSS Category ..................................................................................6-79

Table 68: Tariff for Street Light Service ...........................................................................6-81

Table 69: Tariff for Rural Electric Co-operative/SHG ......................................................6-82

Table 70: Tariff for Military Engineering Service ............................................................6-82

Table 71: Tariff Schedule of Urban Micro Franchisee .....................................................6-83

VII


LIST OF ANNEXURES

Annexure A: Letter from TSL to Commission for Fuel Surcharge Approval .....................7-90

Annexure B : Entry Tax Gazetted Notification ................................................................7-91

Annexure C: Agreement with DVC for Bank Charges on Letter of Credit .......................7-92

Annexure D: Details of Addition of Expected Consumers in FY 2011-12.........................7-93

Annexure E: Power Purchase Bills for FY 2010-11 and FY 2011-12 H1 ...........................7-95

Annexure F : Debit/Credit Notes Raised by Tata Steel and DVC .....................................7-96

Annexure G : Annual Audited Accounts for FY 2011-12 ..................................................7-97

VIII


List of Abbreviations

Abbreviation Description

A&G Administration and General

APR Annual Performance Review

ARR Annual Revenue Requirement

AS Accounting Standard

BRPL BSES Rajdhani Power Limited

BYPL BSES Yamuna Power Limited

CAGR Compounded Average Growth Rate

CAPEX Capital Expenditure

CERC Central Electricity Regulatory Commission

CESC Calcutta Electric Supply Company

CGRF Consumer Grievance Redressal Forum

Ckt Km Circuit Kilo Meter

CPI Consumer Price Index

Crs Crores

CTU Central Transmission Utility

CWIP Capital Works In Progress

DF Distribution Franchisee

DPS Delayed Payment Surcharge

DS Domestic Service

DS HT Domestic Service High Tension

DSM Demand Side Management

DVC Damodar Valley Corporation

EA 2003 The Electricity Act 2003

F&A Finance & Accounts

FAS Financial Accounting System

FY Financial Year

GFA Gross Fixed Assets

HP Horse Power

HR Human Resources

HT High Tension

HTS High Tension Service

HTSS High Tension Special Service

IAS Irrigation & Agriculture Service

IDC Interest During Construction

ISU Industry Service - Utilities

IT Income Tax

IT Information Technology

JSERC Jharkhand State Electricity Regulatory Commission

IX


List of Abbreviations

Abbreviation Description

JTS Jamshedpur Town Services

JUSCO Jamshedpur Utilities and Service Company Limited

KV Kilo Volt

KVA Kilo Volt Ampere

KW Kilo Watt

kWh Kilo Watt Hours

LF Load Factor

LT Low Tension

LTIS Low Tension Industrial and Medium Power

MD Maximum Demand

MERC Maharashtra Electricity Regulatory Commission

MU Million Units

MVA Mega Volt Ampere

MW Megawatt

MYT Multiyear Tariff

NPCL Noida Power Corporation Limited

NDPL North Delhi Power Limited

NDS Non-Domestic Service

O&M Operation and Maintenance

PF Power Factor

PLR Prime Lending Rate

PPA Power Purchase Agreement

PSD Power Services Division

R&M Repairs and Maintenance

RoE Return on Equity

Rs. Rupees

SAP System, Application and Production

SBI State Bank of India

SERC State Electricity Regulatory Commission

SLM Straight Line Method

STU State Transmission Utility

TOD Time Of the Day

TPM Total Productivity Maintenance

TSL Tata Steel Limited

UPERC Uttar Pradesh Electricity Regulatory Commission

WPI Wholesale Price Index

w.e.f with effect from

YoY Year-on-Year

CHAPTER 1: Introduction Nov 2011 Page 1-1


Chapter 1. Introduction

1.1 Background

1.1.1 Jamshedpur Utilities and Services Company Limited (JUSCO) is a Company

incorporated on 25th

August, 2003 under the provisions of the Companies Act,

1956. JUSCO is having its registered office at Sakchi Boulevard Road, Northern

Town, Bistupur, Jamshedpur – 831001. JUSCO is a wholly owned subsidiary of

Tata Steel Limited and became operational w.e.f 1st April 2004 with the

Transfer of Town related Services and Power Business Divisions.

1.1.2 JUSCO was incorporated primarily to cater the infrastructure and utility

services to the city of Jamshedpur. The Company's services encompass Water

and Waste Water Management, Power Services, Public Health & Horticulture

Services, and Planning Engineering & Construction. JUSCO conforms to the

standards of ISO-140001 (Environmental Management System), 18001 (OHSAS)

and ISO-9001 (Quality Management System). Power Service Division of JUSCO

is engaged in distribution of electricity for the city of Jamshedpur – as a

Franchisee of Tata Steel Limited (Licensee of Jamshedpur) as well as for the

revenue district of Saraikela – Kharasawan, in the capacity of Power

Distribution Licensee. JUSCO is also a recipient of TPM excellence award given

by JIPM of Japan.

1.1.3 In line with the provisions of (JSERC) (Terms and Conditions for Distribution

Tariff) Regulation, 2004 issued by the Hon’ble Commission, the licensee has to

file with the Commission, a tariff with statements containing the expected

revenue from the tariff charges including miscellaneous charges and other

charges, if any, for the ensuing financial year. The statement should also

include the current approved tariff and charges including the miscellaneous

charges along with details and explanations of assumptions made.

1.1.4 Further the Commission in November 2010 has issued JSERC (Terms and

Conditions for Determination of Distribution Tariff) Regulations, 2010

(hereinafter referred as JSERC Tariff Regulations 2010) which is applicable for

Transition period from 1st April 2011 to 31st March 2013. The elements of ARR

such as Distribution Loss, Return of Equity, Interest on loans etc for the

transition period i.e. FY 2011-12 are to be treated / based on JSERC Tariff

Regulations 2010.

CHAPTER 1: Introduction Nov 2011 Page 1-2


1.1.5 The determination of ARR has been based on the provisions of the following

Acts and Policies of the Government of India and principles outlined in the

relevant regulations notified by the Jharkhand State Electricity Regulatory

Commission:

� Provisions of Electricity Act 2003;

� Provisions of the National Electricity Policy;

� Provisions of the National Tariff Policy;

� Principles laid down in the JSERC (Terms and Conditions for Determining

Distribution Tariff), Regulations, 2004;

� Principles laid down in the JSERC (Terms and Conditions for Determination of

Distribution Tariff) Regulations, 2010 for transition period from April 2011 to

March 2013.

CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-3


Chapter 2. Overall approach for present filing

The Hon’ble Commission has notified the regulations relating to Terms and Conditions of

Tariff Regulations, 2004 for the distribution business in September 2004 which are

applicable till FY 2010-11. Further the Commission in November 2010 has notified JSERC

Tariff Regulations 2010 which is also applicable for transition period from 1st

April 2011

to 31st

March 2013 for elements of ARR such as Distribution Loss, RoE and Interest rate

etc. In line with the same, JUSCO is filing its ARR and Tariff Petition for consideration of

the Hon’ble Commission in the formats laid down for providing information relating to

past, current and future performance. The key aspects of the approach to the filing are

discussed below:

2.1 Regulations on Terms and Conditions of Tariff:

2.1.1 The Hon’ble Commission has issued a regulation JSERC (Terms and Conditions

for Determining Distribution Tariff), Regulations, 2004, notified as on 20th

September 2004 and also as per amendment issued by Jharkhand State

Gazette Notification No.- 520 Dated - 23/09/2005, it laid down the principles to

determine the tariff to be charged to the consumers. The regulation issues

stated that:

“31.2* Application for determining the ARR (Tariff):

(i) Unless explicitly mentioned in the Tariff Order, every year, by 1st of November,

every Distribution Licensee shall file with the Commission, a tariff application with

statements containing the expected revenue from the tariff charges including

miscellaneous charges and other charges, if any, for the ensuing financial year.

The statement should also include the current approved tariff and charges

including the miscellaneous charges along with details and explanations of

assumptions made.

Provided that non-compliance of this provision shall be treated as contravention

of Regulation.

(ii) The distribution licensee should file the ARR in the format given in the

annexure.

2.1.2 The Hon’ble Commission has issued JSERC Tariff Regulations 2010 which are

notified on 1st November 2010. The Hon’ble Commission has laid down the

principles of ARR and MYT filing for the transition as well as control period.

Further the timelines specified for filing the ARR & Tariff Petition for the 1st

year under transition period i.e. FY 2011-12 in regulation 4.3, section A12 is 1st

November.



2.1.3 As per the above Regulation, Distribution Licensee needs to file a tariff

application with the Hon’ble Commission by 1st of November of every year.

However it is submitted that due to pending signed audited accounts, actual

data / information for FY2011-12 H1 and other uncontrollable factors such as

festive season, the filing of the petition got delayed. The petitioner vide letter

dated 29th October 2011 has intimated and requested the Hon’ble Commission

to allow the petitioner to file the petition by 10th November 2011 and condone

the delay. Accordingly, the Annual Revenue Requirement and Tariff filing of

the Distribution business of JUSCO based on JSERC Tariff Regulations 2010 has

been developed and is enclosed.

2.2 Data/Information for ARR

2.2.1 This petition contains the truing-up of the ARR of FY 2010-11, figures of which

are based upon the certified annual accounts which will be submitted to

Hon’ble Commission in due course of time. The APR of FY 2011-12 is based

upon six months actual data and the estimation for second half of the year. The

ARR for FY 2012-13 has been projected based on the past performance and

expected growth in each element of cost and revenue for the ensuing year.

JUSCO has studied the past trends and other internal and external

developments to estimate the projections for FY 2012-13.

2.3 Allocation of Assets and Costs

2.3.1 For the purpose of the filing, since JUSCO is an integrated service provider for

Jamshedpur, the segregation and allocation of costs is based on information

currently available with JUSCO. The cost data is captured by JUSCO through the

Financial Accounting System maintained on SAP platform and separate cost

centres that have been created in the FAS through which identification of

directly allocable expenditures has been provided for. In case of expenditures

which are of common nature either across JUSCO or across the whole Power

Service Division, apportionment has been done on logical basis keeping in view

the generally accepted accounting norms and principles which are explained at

appropriate places. The Common Cost (Allocation of Cost for Common services)

of JUSCO Utility Services is identified between Employee Cost and A&G Cost

and then apportioned to Saraikela Project of Licensee based on the allocation

ratio provided in the below table along with the type/ nature of expenses

under each of the cost element/ head to ensure a fair allocation to the

Distribution function:



Table 1: Assumptions for Allocation of Assets and Costs

Sr. Elements of ARR Expenses under each head Assumption with Rationale

a HR/ IR Recruitment, Training, Succession plan, Manpower

plan, Talent search, Wage Negotiation, Industrial

Relations Issues, Holiday plan, Retiral, Service rule,

Labour Statutes, Gate Pass , Medical card, discipline

management, performance management, annual

increment, wage revision etc

Allocation based on Number of Employees in

Saraikela Project vis-à-vis JUSCO

b IT Managing entire IT System and softwares, taking

care of new requirement, Managing maintenance of

all computers, laptop, printers etc, managing LAN etc

Allocation based on Number of PCs/laptop in


c Legal Managing all legal requirement of power services,

vetting of agreements, monitoring legal compliance,

Vetting of lease papers, Managing Court Cases etc.

Allocated Equally among all 8 segments of Services

within JUSCO and further allocating half of the PSD's

share to Saraikela Project

d GM (JTS) Secretariat Dealing with Government Administration, Dealing

with political issues etc, assisting to have new place

for new construction etc.

Allocation based on Ratio of Turnover of Saraikela

Project vis-à-vis JUSCO

e TPM Activity /

Improvement Initiatives

Organising employees participation in Total Quality

Management, TPM, Innovations, Knowledge

Management, Suggestion schemes, through several

self initiative project, events, other employee

motivational programmes including rewards and

recognition for better performing employee in these






areas.

f Accounts Managing Payroll, Vendor payment, managing fund,

Dealing with banks, preparation of MIS reports for

management, Audit of the books of a/c from the

statutory auditor, managing debtors & creditors,

dealing with tax authorities on account of sales tax,

CST, Professional tax, entry tax & income tax,

managing statutory compliances, monthly

preparation of cost reports, conducting review

meetings, preparation board notes for Board

Meeting & preparation of Audit Committee Meeting

reports



g MD Secretariat Setting of Company's Mission, vision, strategy &

values, providing leadership direction, Approvals for

the Annual Business plan, Setting Short Term and

Long Term Goals.



h Admin Managing Telephones, Fire alarm , Accommodation

& lodging, travel plans etc, dealing with Insurance

companies for insurance of company’s properties etc




i Corp Communication Advertisement, dealing with media, updation of

company’s intranet system, organising events etc.







j Business Strategy Making Business plan, exploring new opportunity,

Company Secretary jobs,approving the CAPEX

required etc.




k Security Providing 24X7 Security to the Offices, managing

patrolling for critical establishments etc




l JUSCO Sahayog,

Billing and Collection

Issuing monthly invoices to consumers, collecting

payments, managing ATP machine, Solving

customers grievances relating to billing, managing

24X7 Jusco complaints redressal system, getting

customer satisfaction survey, reporting on

complaints management and analysing the gap etc

Allocation based on Number of consumers of


m GM – PSD Office General Management of Power Distribution

Business.

Equal allocation to Saraikela & Jamshedpur License

area

n Procurement Vendor registration, collecting Purchasing

Requisitions from Departments, asking quotations

from vendors, analysing the rates and awarding

order, meeting the inventories requirements of the

depts, dealing with vendors for procurement of

goods & services in case of emergency, vendor

development, etc

Allocation based on value of procurement of




2.4 Basis & Assumptions of Present Petition

2.4.1 As mentioned earlier, the present petition has been filed based on JSERC Tariff Regulations 2004 (to the extent applicable for FY 2010-

11 truing up) and JSERC Tariff Regulations 2010 for FY 2011-12 and FY 2012-13. The various assumptions/ basis/ rationale used for

projection of each of the element of APR & ARR are discusses as under:

Table 2: Assumptions with Rationale for APR FY2011-12 & ARR FY2012-13

Sr. Elements of ARR Assumption in FY 2011-12 Assumption in FY 2012-13

1 Distribution Loss In accordance with actual distribution loss data for first half of FY

12 and expected loss during second half;

In accordance with the JSERC (Terms and Conditions for

Distribution Tariff) Regulations, 2010;

2 Power Purchase Non-Renewable: As per existing and expected new Power

Purchase Agreements and demand in the licensed area;

Renewable: Solar @0.25% and Non-Solar @1.75%

Non-Renewable: As per existing and expected new Power

Purchase Agreements and demand in the licensed area;

Renewable: Solar @0.50% and Non-Solar @2.50%;

3 O&M Cost Employee Expenses: In accordance with actual employee

expenses for first half of FY 12 and expected expenses during

second half with an escalation index (Inflation);

A&G: In accordance with actual A&G expenses for first half of FY

12 and expected expenses during second half with an escalation

index (Inflation);

R&M Expenses: In accordance with the methodology adopted by

the Commission in Tariff Order 2011-12, overall R&M expenses

considered as percentage of GFA;

Employee Expenses: The figure for previous year has been

escalated with an escalation index (inflation);

A&G: The figure for previous year has been escalated with an

escalation index (inflation);

R&M Expenses: In accordance with the methodology adopted by

the Commission in Tariff Order 2011-12, overall R&M expenses

considered as percentage of GFA;

4 Capital Expenditure As per capital expenditure plan and approval by

Commission in previous petition with certain updations on

actual basis;

As per capital expenditure planned by the petitioner and

carried forward schemes of previous year;.

5 Capitalisation As per actual for first half of FY 12 and planned In accordance with the projected expenditure on existing



Sr. Elements of ARR Assumption in FY 2011-12 Assumption in FY 2012-13

capitalisation for second half of FY 12. and new schemes.

6 Debt-Equity Ratio In the ratio of 70:30 as specified by the Hon’ble Commission

JSERC (Terms and Conditions for Distribution Tariff) Regulations,

2010;

In the ratio of 70:30 as specified by the Hon’ble Commission

JSERC (Terms and Conditions for Distribution Tariff) Regulations,

2010;

7 Depreciation As per JSERC (Terms and Conditions for Distribution Tariff)

Regulations 2010.

As per JSERC (Terms and Conditions for Distribution Tariff)

Regulations 2010.

8 Interest on Loans As specified in JSERC (Terms and Conditions for Distribution

Tariff) Regulations, 2010 & as approved by Hon’ble Commission

in Tariff order

As specified in JSERC (Terms and Conditions for Distribution

Tariff) Regulations, 2010 i.e. Interest rate to be taken as SBI PLR

as on 1st

April of the FY

9 Interest on Security

Deposit

As per specified by the Commission in ‘Jharkhand Electricity

Supply Code Regulations, 2005’.

As per specified by the Commission in ‘Jharkhand Electricity

Supply Code Regulations, 2005’.

10 Return on Equity As per JSERC (Terms and Conditions for Distribution Tariff)

Regulations, 2010 i.e. 15.5% (post tax)


Regulations, 2010 i.e. 15.5% (post tax)

12 Non Tariff Income As per JSERC (Terms and Conditions for Distribution Tariff)

Regulations, 2010, incidental to electricity business.


Regulations, 2010, incidental to electricity business.

13 Revenue Projections As per tariffs approved by Commission in FY 2011-12 T.O. In accordance with projected revenue gap for FY 13.



2.4.2 The Hon’ble Commission has issued (Renewable Purchase Obligation and its

Compliance), Regulations 2010 which is applicable till March 2013. The

minimum Renewable Purchase Obligation (RPO) to be met is provided in the

regulations.

2.4.3 The petitioner vide letter no. PBD/553/59/10 dated 3rd November 2010 had

requested Hon’ble Commission to exempt from RPO for FY 2010-11 and defer

the applicability by 1 year and accordingly make the minimum RPO applicable

for FY 2011-12 as 2%. The Commission vide letter no JSERC/12/540 dated 22nd

November 2010 had granted the same. Accordingly, the Hon’ble Commission in

the tariff order clause 7.33 has approved quantum for Solar at 0.25% and for

Non-Solar at 1.75% for FY 2011-12. The RPO for FY 2012-13 has been taken at

0.50% for Solar and 2.50% for Non-Solar.

2.4.4 DSM Regulations – The Hon’ble Commission has issued DSM Regulations 2010

aiming at distribution licensees for energy conservation. The petitioner is

taking appropriate measures for the compliance of the same.

CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-11


Chapter 3. Truing up for FY 2010-11

3.1 Background

3.1.1 JUSCO in its previous Tariff Petition had filed the provisional figures of the ARR

for FY 2010-11. The certified annual accounts of the licensee business are now

available and accordingly, the licensee wants to submit for the true up of FY

2010-11 before Hon’ble Commission. Therefore, in this chapter JUSCO

summarises each of the component of true-up for FY 2010-11 and requests the

Hon’ble Commission to true-up the ARR for FY 2010-11 and the resultant gap/

surplus for the FY 2010-11 accordingly.

3.1.2 In each of the table shown in this section, a comparison of the figures being

projected by JUSCO in its previous petition, figures approved by the Hon’ble

Commission and figures based on certified accounts have been shown.

3.2 Energy Balance

3.2.1 The Energy Balance for FY 2010-11 has been reflected in the table below. As

evident from the table, the figures of energy sales units, distribution loss and

power purchase units projected in the previous petition, approved by the

Hon’ble Commission as well as per the certified annual accounts are identical.

However, for the sake of presenting structured information with respect to the

Truing-Up of FY 2010-11 by the Hon’ble Commission, JUSCO has resubmitted

the same.

Table 3: Energy Balance for FY 2010-11

Projected Approved Audited

Energy Sales

Total Energy Sales 209.16 212.03 212.03

Overall Distribution Losses % 5.00% 1.65% 1.65%

Overall Distribution Losses 11.01 3.56 3.55

Total Energy Requirement 220.17 215.59 215.59

Power Purchase

Open Access/Others/Traders 17.15 6.27 6.27

DVC 4.97 3.39 3.39

- From Tata Steel Ltd (A)

132 kV 157.09 171.40 171.40

33 kV 38.87 33.14 33.14

6.6 kV 2.09 1.39 1.39

Total Power Purchase 220.17 215.59 215.59

Particulars 2010-11 (Million Units)

ENERGY REQUIREMENT

ENERGY Availability (MU)



3.2.2 It is requested to the Hon’ble Commission to kindly approve the energy balance

for FY 2010-11 as per actual audited accounts.

3.3 Power Purchase Cost

3.3.1 JUSCO had started its initial operation by procuring power from the only

available source i.e. Tata Steel Limited due to the proximity of its licensed area

to Jamshedpur – the licensed area of Tata Steel Limited. Tata Steel Limited has

been supplying power to JUSCO licensed area on availability basis. For FY 2010-

11, JUSCO had sourced its major portion of power requirement from Tata Steel

Limited. A small quantum of power has been sourced from DVC and through

open access for FY 2010-11.

3.3.2 The Hon’ble Commission in its 2011-12 tariff order had determined the average

power purchase rate of JUSCO as 2.95/ kWh from all three sources i.e. Tata

Steel Limited, DVC and Open Access for FY 2010-11. The average power

purchase rate of JUSCO from all sources as per audited accounts has arrived at

2.95 /kWh. The petitioner requests the Hon’ble Commission to approve the

same for FY 2010-11.

3.3.3 The power purchase cost is net of the credit/debit amount note raised by Tata

Steel and DVC received in FY2011-12, for supply of power as per Tariff Order

dated 26th August 2010. JUSCO has computed its power purchase cost for FY

2010-11 as shown in the table below:

Table 4: Power Purchase Cost FY 2010-11

Rs. in Lacs


Open Access/Others/Traders 815 245 244

DVC 200 119 119

Tata Steel Limited

132 KV 4,807 4,994 4,988

33 KV 1,189 966 964

6.6 KV 64 40 40

Total 7,076 6,364 6,356

Units Purchased (Million Units) 220.17 215.59 215.59

Cost (per kWh) 3.21 2.95 2.95

Particulars 2010-11 (Rs. in Lacs)

3.3.4 It is requested to the Hon’ble Commission to approve the Power Purchase Cost

for the FY 2010-11 at 6,356 Lacs.



3.4 Operation and Maintenance Expenses

The Operation and Maintenance (O&M) Expenses includes Employee Cost, R&M

Expenses and A&G Expenses. The O&M Expenses of JUSCO comprises of two parts:

3.4.1 Direct Costs - These costs are incurred directly in the Jusco’s licensed operation

and are taken from the cost centers in which primarily following charges are

booked.

i. Repair & Maintenance expenditures for distribution network which includes

distribution lines, power & distribution transformers, substation equipments,

civil maintenance, spares, consumables, service contracts, Complaint

management etc.

ii. Wages and salaries for officers and staffs who are directly engaged in

JUSCO’s distribution business in Seraikela-Kharasawan.

iii. A & G expenses which are directly incurred in managing the distribution

business in Seraikela-Kharasawan operations. These includes regulatory and

legal charges, Consultancy Charges, Travel expenses, printing & stationery,

press advertisement, telephone and mobile expenses, insurance premium,

training, hired vehicle expenses, rent rates & taxes etc.

3.4.2 Costs incurred by Common Services of JUSCO for Seraikela-Kharasawan

power distribution business - These costs are categorised as common costs

and include the cost of various common services as given in Table-1. It is

pertinent to note that since these services are being shared by other business

of JUSCO also, only a part of the total cost commensurate to services being

offered is charged to Seraikela-Kharasawan business as per the basis given in

Table 1.

JUSCO would like to submit to the Hon’ble Commission that all the functions

mentioned in the Table 1 are essential to run the power distribution business.

However since these relates to common services it has been organised as

centralised departments providing services to all businesses of JUSCO. Setting up

separate set-up including manpower and offices for these functions would have

resulted in significantly higher cost to power distribution business.

JSERC (Distribution License Conditions) regulations, 2005 also provides for

reasonable allocation of Joint and common costs between licensed business and

other businesses of licensee.



“16.3 The Distribution Licensee shall in respect of the licensed business and other

business:

(a) Keep such Allocation Statement as would be required, so that the

revenues, costs, assets, liabilities, reserves and provisions for, reasonably

attributable to the licensed business are separately identifiable in the

books of the distribution licensee.

(b) Adopt a fair and transparent cost allocation mechanism for the

reasonable allocation of Joint and common costs between the licensed

business and the other business.

JUSCO would like to submit that the cost for common services of JUSCO for

Seraikela-Kharasawan distribution business has been taken in line with the above

provisions of the regulations.

3.4.3 The summary of the O&M Expenses for FY 2010-11 has been depicted in table

below.

Table 5: Operation and Maintenance Expenses for FY 2010-11


O&M Expenses - Direct

Employee Cost 243 228 231

R&M Expenses 121 126 126

A&G Expenses 192 208 205

Total (A) 556 562 563

O&M Expenses - Common Cost of JUSCO


R&M Expenses - - -


Total (B) 205 239 273

Less: Expenses Capitalised

Employee Cost - 11 -

R&M Expenses - -

A&G Expenses - 10 -

Total (C) - 21 -

Net O&M Expenses (A+B-C) 761 780 835


3.4.4 It may kindly be noted from the table above that for FY 2010-11, against the

approval of Hon’ble Commission in the tariff order of 780 Lacs, the petitioner

has incurred an amount of 835 Lacs.



3.4.5 The small difference between the audited figures and approved figures of O &

M expenses is due to the fact that the approved figured were based on

estimates and projections made before completion of the year, whereas

audited figures has been taken based on actual expenditure incurred during

the full year.

3.4.6 We would like to submit to the Hon’ble Commission that Jusco’s O & M Cost

are lower than most other private and efficient utilities in the country. The

comparison of per unit O & M cost is depicted in Table No-6 below.

Table 6: Comparison of per Unit O&M Costs

Utility O&M

(Rs/kWh)

Reliance Infra 0.65

BYPL 0.59

CESC 0.49

BRPL 0.48

NDPL 0.47

JUSCO FY11 0.37

Source: T. O FY 2010-11 & FY 2009-10

3.4.7 Accordingly it is requested to Hon’ble Commission to approve the net O&M

expenses of 835 Lacs for FY 2010-11.

3.5 Capital Work in Progress, Gross Fixed Assets and Depreciation

The petitioner wants to submit that in the additional data gaps submission for previous

year tariff filing, it had provided with the Methodology for computation/ consideration

of Interest during Construction. The petitioner submits that since the Hon’ble

Commission has been approving debt-equity on Capitalisation amount and not on

Capital Expenditure amount, the petitioner is entitled for Interest during construction to

be claimed in gross fixed assets.

3.5.1 Interest during Construction (IDC) - It is submitted that Petitioner had in

advertently missed out the claim on account of Interest during construction in

its previous ARR for FY’08, FY’09, FY’10 and FY’11. The same is allowed to be

recovered in accordance with Distribution Tariff Regulations 2004 and

Distribution Tariff Regulations 2010.

As per Clause 6.10 of Distribution Tariff Regulations 2010-



6.10 The capital cost of the project shall include the following:

a) Expenditure incurred or projected to be incurred on original scope of

work, including the interest during construction and financing charges,

any gain or loss on account of foreign exchange risk variation, during

construction, on the loan – (i) being equal to 70% of the funds deployed, in

the event of the actual equity in excess of 30% of the funds deployed, by

treating the excess equity as normative loan, or (ii) being equal to the

actual amount of loan in the event of the actual equity less than 30% of

the funds deployed, - up to the date of commercial operation of the

project, as admitted by the Commission, after prudence check shall form

the basis for determination of Tariff;

Further, as per Clause 18 (note-5) of Distribution Tariff Regulations 2004, Interest

during Construction is allowed to be recovered as part of Capital Cost.

Accordingly the petitioner has calculated the IDC for FY’2008 onwards which is

tabulated below:

Table 7: Interest during Construction Calculation

Particulars 2007-08 2008-09 2009-10 2010-11

Closing CWIP 5,084.24 5,426.56 2,437.00 1,905.69

Amount Capitalised 2,921.35 4,259.84 1,851.00 805.69

Investment not Capitalised During the Year 2,162.89 1,166.72 586.00 1,100.00

Debt (70% of Investment not Capitalised) 1,514.02 816.71 410.20 770.00

Rate of Interest 11.75% 12.75% 12.75% 11.75%

Interest During Construction (Rs.Lacs) 88.95 52.06 26.15 45.24

Total IDC till 2009-10 (Rs.Lacs) 167

3.5.2 In accordance with above table the IDC, which is calculated based on the

approved CWIP figures during the year 2007-08 upto FY 2010-11, works out to

around 212 Lacs on normative basis. This amount is added into Capital WIP

and also considered while transferring assets to GFA base. The Hon’ble

Commission is requested to condone our earlier ommission and allow the IDC

for FY 2007-08, 2008-09, 2009-10 and 2010-11 as part of the capital cost.

3.5.3 The Capital Work in Progress (CWIP), Gross Fixed Assets (GFA) and the

consequent depreciation on GFA for FY 2010-11 are discussed hereunder. The

figures of CWIP and GFA have been derived from the audited accounts and the

IDC amount has been added to the same normative basis.



Table 8: CWIP, GFA and Depreciation for FY 2010-11

Projected Approved Audited*

Opening CWIP 586 586 586

Capex during the FY 1,572 1,107 1,107

Total CWIP 2,158 1,693 1,693

Add: IDC till FY 2010-11 - - 212

Total CWIP incl IDC 2,158 1,693 1,906

Less: Transferred to GFA incl IDC 255 593 806

Closing CWIP 1,903 1,100 1,100

Opening GFA 9,073 9,073 9,073

Transferred from CWIP 255 593 806

Closing GFA 9,328 9,666 9,879

Depreciation for the FY 577 579 591

Less: Depreciation on Assets created out of Consumer

Contribution

172 150 150

Net Depreciation 405 429 441

* Includes Normative IDC amount of Rs.212 Lacs till FY2010-11 in GFA additions


Capital Work in Progress (CWIP)

Gross Fixed Assets (GFA)

Depreciation

3.5.4 In FY 2010-11, the figures of closing CWIP and opening GFA are almost identical

with variation in Depreciation amount as compared to figures approved by

Hon’ble Commission in its previous Tariff Order and as per the certified annual

accounts due to change in final asset classification under various heads of fixed

assets and inclusion of normative IDC amount.

3.5.5 The details of Gross Fixed Assets and allocation of IDC amount for the FY 2010-

11 are provided in the table below:



Table 9: Gross Fixed Assets for FY 2010-11

1 Land Devlopment 13 24 1 25 38

2 Offices & Showroom 537 1 12 13 550

3 Other Buildings 20 - 0 0 20

4 Transformers 775 350 25 375 1,149

5Switchgear including cable

connections2,515 2 55 57 2,572

6 Underground CABLE 2,564 111 59 169 2,734

7 Overhead Lines < 6.6kv (LT) 104 25 3 27 132

8 Overhead Lines > 6.6kv 2,086 35 47 82 2,168

9 Meters 32 2 1 3 35

10 Self propelled vehicles 3 5 0 5 8

11 Air conditionar (Portable) 7 - 0 0 7

12 Office furniture & fittings 10 2 0 3 13

13 Office Equipments 73 1 2 3 76

14 Street Light fittings 0 - 0 0 0

15 Communication System 1 5 0 5 6

16 Data Processing Machine 22 1 0 1 23

17 Software 155 30 4 34 188

18 Other Assets 155 0 3 4 159

Total (Rs.Lacs) 9,073 593 212 806 9,879

Sl.

No.Particulars of Assets

GFA as on

01.04.2010

Additions

during FY

2010-11

IDC

Allocation

GFA as on

31.03.2011

Additions

during FY

2010-11 in IDC

3.5.6 The computation of depreciation is based on Straight Line Method of

computation as prescribed in the Tariff Regulations issued by the Hon’ble

Commission using the rates as provided in Appendix II to the Tariff Regulations.

The depreciation costs proportionate to the extent of fixed assets being funded

through Consumer Contribution, has been deducted from the total

depreciation in order to arrive at the net depreciation allowable to be charged

in the ARR.



Table 10: Depreciation Breakup for FY 2010-11

1 Land Devlopment 0.00% - -

2 Offices & Showroom 3.02% 26 16 43

3 Other Buildings 3.02% 0 1 1

4 Transformers 7.81% 106 75 181

5 Switchgear including cable connections 7.84% 295 199 494

6 Underground CABLE 5.27% 155 140 295

7 Overhead Lines < 6.6kv (LT) 7.84% 6 9 15

8 Overhead Lines > 6.6kv 5.27% 161 112 273

9 Meters 12.77% 4 4 8

10 Self propelled vehicles 33.40% 3 2 4

11 Air conditionar (Portable) 33.40% 2 2 4

12 Office furniture & fittings 12.77% 2 1 3

13 Office Equipments 12.77% 10 10 20

14 Street Light fittings 12.77% 0 0 0

15 Communication System 12.77% 0 0 1

16 Data Processing Machine 12.77% 4 3 7

17 Software 9.00% 7 15 22

18 Other Assets - 20 0 20

Total (Rs.Lacs) 800 591 1,391

Sl.No. Particulars of AssetsRate of

Depreciation

Accumulated

Depn as on

01.04.2010

Depreciation

for FY 2010-11

Accumulated

Depn as on

31.03.2011

3.5.7 Accordingly, after deducting depreciation proportionate to the fixed assets

being contributed through consumer contribution i.e. 150 Lacs, the net

depreciation allowable to be charged to the ARR of FY 2010-11 computes to

441 Lacs as against 429 Lacs allowed by the Hon’ble Commission in its

previous Tariff Order.

3.5.8 It is requested to the Hon’ble Commission to approve the net depreciation

amount of 441 Lacs for FY 2010-11.

3.6 Interest and Finance Charges

3.6.1 In the absence of any actual loan being availed by JUSCO, the normative loans

have been computed considering the Capital Investment Norm in the

Regulatory regime in which Debt-Equity Ratio has been kept at 70:30.

Therefore, deemed addition to the normative loans have been taken at 70% of

the total CWIP capitalised during the Financial Year net of Consumer

Contribution being transferred to Capital Reserve (which is proportionate to

the Fixed Assets Capitalised) reduced by the Accumulated Depreciation. The

deemed repayment has been considered equivalent of the net depreciation

cost for the FY.



3.6.2 Interest on Normative Loan - The normative interest is being computed on the

average balance of loan during the financial year. The normative interest rate

has been taken at 11.75% as approved by Commission in previous tariff order.

The interest on normative loan @11.75% on average loan balance of 4,104

Lacs works out to 482 Lacs against 493 Lacs approved by Hon’ble

Commission. The table below provides calculation of Interest on Normative

Loan for FY 2010-11:

Table 11: Interest on Normative Loan – FY 2010-11

Opening Balance 4,084

Add: Deemed Additions 481

Less: Deemed Repayments 441

Closing Balance 4,124

Average Balance 4,104

Interest Rate 11.75%

Interest on Normative Loan (A) 482

FY 2010-11

(Normative)Particulars

3.6.3 Interest on Security Deposit - The provision for Interest on Security Deposit has

been made @ 6.00% per annum. The Security deposit amount as on year end

FY 2010-11 stood at 1,939 Lacs. The corresponding Interest on Security

Deposit amount as per audited accounts & as approved by Hon’ble Commission

is 115 Lacs.

3.6.4 Bank Charges - In the previous tariff order, the Hon’ble Commission had stated

that bank charges @ 75,000 per month for Letter of Credit maintained with

bank shall be approved after JUSCO provides details of Agreement with DVC.

Accordingly, the Power Purchase Agreement with DVC is attached herewith as

Annexure C: Agreement with DVC for Bank Charges on Letter of Credit. The

bank charges compute to 1.59 Lacs for FY 2010-11 and the Hon’ble

Commission is requested to kindly approve the same.

3.6.5 Accordingly, the total Interest and Finance Charges for FY 2010-11 as computed

by JUSCO is tabulated as under:



Table 12: Interest and Finance Charges for FY 2010-11

Projected Approved Audited *

Interest on Normative Loan (A) 465 493 482

Interest on Working Capital/ Bank Finance Charges

(B)

- - 1.59

Interest on Security Deposit (C) 111 115 115

Total Interest & Finance Charges (A+B+C) 576 608 599


3.6.6 Accordingly, the Hon’ble Commission is requested to approve the total interest

and finance charge amount of 599 Lacs sought in the true-up for FY 2010-11.

3.7 Reasonable Rate of Return

3.7.1 The deemed addition to the normative equity has been taken at 30% of the

total CWIP capitalised during the FY net of Consumer Contribution being

transferred to Capital Reserve (which is proportionate to the Fixed Assets

Capitalised). The normative return on equity is being computed @ 14% on the

average balance of normative equity during the FY 2010-11.

3.7.2 The Normative Equity Capital and Return on Equity projected by JUSCO in its

previous Tariff Petition, approved by the Hon’ble Commission in its Tariff Order

and computed by JUSCO for FY 2010-11 respectively is being summarised

under the table below.

Table 13: Reasonable Rate of Return for FY 2010-11

Rs. Lacs


Normative Equity Base 1,965 2,149 2,213

Normative Average Equity Base 2,029 2,121 2,153

Rate of Return 14% 14% 14%

Return on Equity 282 297 301


3.7.3 The difference is on account of normative IDC being considered in gross fixed

assets. Accordingly, the Hon’ble Commission is requested to approve the

Return on Equity of 301 Lacs for FY 2010-11.

3.8 Income Tax

3.8.1 Based on the RoE and Depreciation computation as described in the preceding

paras, the Normative Income Tax has been recomputed in accordance with the



methodology accepted by the Hon’ble Commission. The normative income tax

liability for FY 2010-11 is computed to be 202 Lacs as against determined by

the Hon’ble Commission at 203.20 Lacs in its review petition order. The

detailed computation for FY 2010-11 has been depicted in table below.

Table 14: Income Tax for FY 2010-11


Return on Equity 282 297 301

Income Tax Rate 33.22% 33.22% 33.22%

Gross RoE 423 445 451

Depreciation as per ARR 405 429 441

Depreciation as per IT Act (741) (755) (767)

Normative Interest on Loan 465 493 482

Taxable Income 553 612 608

Income Tax 184 203 202


3.8.2 The Hon’ble Commission is requested to approve the total amount of 202

lacs under head Income Tax for FY 2010-11.

3.9 Non Tariff Income

3.9.1 Non-Tariff Income includes Meter Rent, Delayed Payment Surcharge and

Supervision Charges among others. The amount of Non-Tariff Income for FY

2010-11, as per certified annual accounts is 20 Lacs and Hon’ble Commission

is requested to approve the same as detailed in below table:

Table 15: Non-Tariff Income

Meter Rent 7

Delayed Payment Surcharge 4

Supervision Charges 7

Miscellaneous Charges 2

TOTAL 20

ParticularsFY 2010-11

(Audited)

3.10 Revenue from sale of power

3.10.1 The figure of Revenue from Sale of Power as per certified annual accounts is

9,678 Lacs as against to 9,680 Lacs approved by Hon’ble Commission for FY

2010-11.



3.10.2 Accordingly, the Commission is requested to kindly approve the actual revenue

of 9,678 Lacs for FY 2010-11.

3.11 Efficient Power Distribution Network: Sharing of Gains

3.11.1 Petitioner strongly believes and urges the Commission that it is genuinely

eligible for getting benefit arising out of achieving lower transmission and

distribution losses which is among one of the best in the Industry .

3.11.2 JUSCO would like to place that the target level specified for JUSCO has been

among the lowest as compared to other utilities not only in the state i.e. JSEB,

SAIL-Bokaro and TSL but also in the country.

3.11.3 Since its inception JUSCO has been controlling its T&D losses to the best in the

Industry. This has been achieved by deploying various technical and

management tools with tremendous sincere efforts to control the T&D losses.

3.11.4 In the last tariff order of JUSCO, Hon’ble Commission has opined that the lower

loss level achieved by the petitioner is primarily on account of favourable

consumer mix of the petitioner, which comprises mainly of HT consumers in a

small urban cluster. Hon’ble Commission has further opined that the petitioner

needs to conduct loss estimation study in order to correctly estimate the

existing loss levels as well as the impact of network upgradation on the loss

levels in future

3.11.5 JUSCO would like to place before the Hon’ble Commission that power

distribution at High Tension helps in reducing the Technical Losses in the

system. However the T&D losses in the system comprise of both Technical and

Non-Technical Losses. It is extremely important for the utility to control both

Technical as well as Non-Technical losses.

3.11.6 JUSCO would like to place before the Hon’ble Commission that It had been able

to contain the Non-Technical Losses at Zero by putting lot of hard work and

sincere efforts. These include-

• Maintenance of meter at a level of 100% working- The Staff and officers of JUSCO

continuously monitors sample energy meters at intervals which are suitably

adjusted in line with changing requirements and information received from site

on day to day basis. Informations on status of energymeters are received from

Modems installed for RMR, Installation audit by officers, information received

by meter reading group, complaint logged by JUSCO Sahyog. Any non-running

or defective or tampered meter are attended with breakdown priority on

round the clock basis. No meters are kept unattended. JUSCO has been sending

the Quarterly Report on T&D losses to the Hon’ble Commission, where such

cases are also mentioned. JUSCO would like to place to the Hon’ble

Commission that if these actions are not taken on time and with sincere



efforts, the T&D losses of JUSCO would have been much more higher that what

it is today.

• Branchwise and Distribution Transformer (DT) Wise Analysis of Losses- All the

lines at 33kV,11kV and DT for LT consumers are checked for individual losses .

Any abnormal loss levels are further analysed and corrective action is taken on

priority. People have to work beyond duty hours to check the same and

maintain the T&D loss levels at a level which is the best in the country.

• 100% compliance to energy meter sealing- 100% compliance to energymeter

sealing is maintained by the meter group to ensure that no possibility is left for

any pilferage.

• Non- Technical losses also include the theft and pilfer of energy from the system

by several means. JUSCO would like to place before the Hon’ble Commission

that across all the Utility in the country the major part of T&D losses is on

account of theft and pilfer of energy. More theft and pilfer is possible in less

time with HT power supply and therefore the risk of T&D loss going higher due

to theft and pilfer in the system are extremely higher that in case of Low

Tension Consumer. Secondly the mode of theft and pilfer in case of HT

consumer is extremely technology oriented and it becomes difficult for the

utility to detect such theft and pilfer if extra efforts are not put in by the

officers and staff of the licensee to check the same.

For example, a single HT supply with Contract Demand of 1000kVA may pilfer

and steal higher energy than 1000 numbers LT supply consumers in the same

time period. It is therefore extremely important that Licensee with higher

concentration of HT consumers should put in extra efforts and resources to

ensure that not a single energy meter, supply or line is kept/ installed in a

manner where theft and pilfer may take place. JUSCO has been able to achieve

the extremely low loss levels by putting extra efforts to ensure that not a single

point of theft and pilfer remains unattended for even a small time period.

• The design selection of network and other network items such as energy-meters,

CT/PT etc. also have been done after lot of hard work and dedicated efforts to

ensure that the possibility of energy theft is minimal.

• JUSCO would further like to draw the attention of the Hon’ble Commission that

doing 100% correct at 100% of times at 100 % of its transaction is extremely

difficult and requires a lot of efforts.

• The 80 - 20 rule also says that last 20% of work takes 80% of resource (time and

energy). The same is also applicable to T&D losses. Almost Zero non-technical

T&D losses had been achieved by JUSCO due to extra efforts that it had put-in

to do the same.



3.11.7 Since the inception of its operations, JUSCO has been committed to take the

best possible measures to minimise its distribution losses. Its efforts have been

demonstrated in the form of lower level of distribution losses in the previous

years which have been the lowest among all utilities in the country.

3.11.8 JUSCO encourage and motivate its employees to adopt the most sincere

practices while dealing with consumers. It is evident in few cases, though not

recorded officially, that fraudulent practices followed by staff members of

utilities have been one of the major source of energy loss in the country. This

loss is almost zero in JUSCO’s network.

3.11.9 JUSCO shall continue to demonstrate its total commitment towards minimising

its distribution losses to the best possible level which has already achieved its

technical limits.

3.11.10 In view of the above facts and considerations, JUSCO is genuinely

convinced that it should be allowed the sharing of Gains on account of lower

T&D loss and request the Hon’ble Commission to kindly consider the same. This

will keep the motivation of JUSCO to continuously attempt to perform at lower

T&D loss levels.

3.11.11 JUSCO has considered a sharing of 50% of total savings with the

consumers and 50% to be added in its revenue requirement. JUSCO has

calculated an amount of 112.04 Lacs for FY 2011-12 and after sharing of 50%

amount with consumers in overall savings in power purchase cost. The

calculation is as below-

Table 16: Calculation of Sharing of Gains for FY 2010-11

Particulars Units FY 2009-10

(Rs in Lacs)

2010-11 (Rs. in

Lacs)

Energy Sales MUs 126.65 212.03

Loss approved by Commission % 5.00% 5.00%

Energy Requirement at normative Loss MUs 133.32 223.19

Actual Achieved Distribution Loss % 0.96% 1.65%

Actual Energy Purchased MUs 127.88 215.59

Actual Power Purchase Cost Rs. Lacs 3,855 6,356

Actual Average Power Purchase Cost Rs/kWh 3.01 2.95

Energy Saved/ Reduction in Power Purchase MUs 5.44 7.61

Savings in Power Purchase Cost Rs. Lacs 164 224

Shared with Consumers - 50% Rs. Lacs 82 112

Entitlement of JUSCO Rs. Lacs 82 112



3.11.12 An amount of 82 Lacs had been calculated towards saving in power

purchase cost for FY 2009-10. Here it is important to mention that though

Commission had not considered this amount in previous tariff order, at the

same time the eligibility for claiming this amount was not completely ruled by

the Hon’ble Commission and the Hon’ble Commission had directed the

Petitioner to conduct loss level study in its licensed area to estimate correct

losses.

3.11.13 The Petitioner had conducted an in-house estimation of losses and found that

the loss levels which is at present less than 2% in its licensed area is actual and

is sustainable throughout two years due to adopted best technological and

management practices by Petitioner.

3.11.14 The same methodology of sharing of savings in losses has been followed by

Delhi Electricity Regulatory Commission at the time of privatisation of

distribution segment in Delhi.

3.11.15 Hence the petitioner again requests the Commission to allow this sharing in

savings. This would set examples and standard before other utilities and would

also encourage them to reduce AT&C losses. However, at the same time any

disallowance of such savings would discourage the petitioner to adopt sincere

practices to reduce losses below the levels and standards set by the

Commission.

3.11.16 Following are the losses of some private sector utilities operating in

various parts of the country.

Table 17: Distribution Losses of Other Utilities

Utility Distribution Loss (%)

BYPL 25.89%

BRPL 19.83%

NDPL 18.27%

CESC 14.75%

TPL Ahmedabad 10.25%

Reliance - Mumbai 10.25%

Noida Power 8.00%

Tata Steel 7.75%

Source: T. O FY 2010-11 & FY 2009-10



3.11.17 The above figures show that the petitioner is highly efficient in managing its

distribution losses and hence is entitled to get the above discussed benefits.

Any allowance of such losses would encourage and set examples before other

utilities and authorities to reduce their losses to become efficient.

3.11.18 Hence an amount of 194 Lacs has been proposed towards savings in power

purchase cost due to reduction/ less distribution Losses for FY 2009-10 and FY

2010-11.

3.12 Past Recoveries

3.12.1 The past recoveries and other gaps as approved by the Hon’ble Commission in

the previous tariff order are provided in the table below:

Table 18: Past Recoveries & Other Gaps till FY 2009-10



Revenue Gap/(surplus) for FY 2007-08 50 50 50



Carrying Cost on Regulatory Asset 172 14 14

Add: Past recoveries and other gaps 1,013 728 728

* Normative claim as approved in T.O.

3.13 Summarised ARR and Revenue Gap for FY 2010-11

3.13.1 The ARR and Revenue Gap for FY 2010-11 along with previous year filing and

approved figures are presented in the table below.



Table 19: Summarised ARR and Revenue Gap for FY 2010-11


Power Purchase Cost 7,076 6,364 6,356

O&M Expenses 761 780 835

Employee Costs 355 348 362



Depreciation 405 429 441

Interest & Finance Charges 576 608 599

Income Tax 184 203 202

Total Costs 9,001 8,384 8,434

Add: Reasonable Return 282 297 301

Less: Non-Tariff Income 27 20 20

Annual Revenue Requirement 9,256 8,661 8,715

Revenue at Existing Tariff 9,413 9,680 9,678

Revenue Gap/ (Surplus) for the year (157) (1,019) (963)

Add: Past recoveries and other gaps 1,013 728 728

Total Revenue Gap/ (Surplus) including

past periods

857 (292) (235)

Add: Sharing of Gains till FY 2010-11 - - 194

Total Revenue Gap/ (Surplus) including

past periods

857 (292) (41)

Energy Sales in Million Units 209 212 212

Cost of Supply 4.43 4.08 4.11

* Including normative claims


Costs

3.13.2 As can be seen from the table above the gap/ (surplus) as per Commission is

292 Lacs inclusive of previous years gaps & as per true-up submissions the

same is (235) Lacs. However the final revenue gap / (surplus) for FY 2010-11

computes to (41) Lacs which has reduced due to claim on Sharing of gains for

FY 2009-10 and FY 2010-11 as explained in preceding sections.

3.13.3 Accordingly, the Hon’ble Commission is requested to allow the revenue gap/

(surplus) of (41) Lacs and its treatment in the final computation of revenue

gap / (surplus).

CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-29


Chapter 4. Review of Performance in FY 2011-12

4.1 Performance of JUSCO FY 2011-12

4.1.1 In this section JUSCO outlines its performance for FY 2011-12 based on

provisional estimations and figures available in its records and books of

accounts for first six months (H1) of FY 2011-12. These provisional figures have

also been compared with the corresponding approval by the Hon’ble

Commission in its last Tariff Order.

4.2 Number of Consumers FY 2011-12

4.2.1 JUSCO has projected number of consumers for FY 2011-12 based on the actual

increase in number of consumers in first half of the year and also considering

the applications being processed during the balance half of the year.

4.2.2 JUSCO had planned substantial additions in LT consumers by laying distribution

network in those areas which are dominated by domestic and non-domestic

consumers and also rural consumers. It had also started laying network in

those targeted areas. However, against the expectations, consumers did not

turn up to get new connections from the petitioner. Besides, some of the poles

and wires etc., which were brought to be installed in such area, were reported

stolen from these areas. In view of this, there is deviation in number of

consumers projected in this petition for DS II, DS III and NDS II category

consumers. The other details are attached herewith as Annexure D: Details of

Addition of Expected Consumers in FY 2011-12



Table 20: Number of Consumers - FY 2011-12 (H1 + H2)

Sr.

No.

Consumer Category Unit March 2011 At the end

of FY 2011-

12 H1

Expected

Addition in

FY 2011-12

H2

FY 2011-12

A Domestic (DS)

1 DS I Nos - - - -

2 DS II Nos 13 15 20 35

3 DS III Nos 72 79 8 87

4 DSHT Nos 9 11 7 18

B Non-Domestic (NDS)

5 NDS I Nos 0 - -

6 NDS II Nos 99 117 38 155

C Low Tension (LTIS)

7 LTIS Nos 51 56 21 77

D Irrigation & Agriculture Service (IAS)

8 IAS Nos - - -

E High Tension (HTS)

9 HTS 11 kV Nos 105 106 26 132

10 HTS 33 kV Nos 13 13 2 15

E High Tension Special (HTSS)

11 HTSS 11 kV Nos 2 2 - 2

12 HTSS 33 kV Nos 1 1 1 2

Total 365 400 123 523

4.2.3 As can be seen from the above table, the actual number of consumers have

increased for last year and there is further growth expected based on

applications pending for processing. The numbers of consumers projected by

JUSCO at the end of FY 2011-12 are 523 nos.

4.3 Connected Load FY 2011-12

4.3.1 Based on the addition of new consumers in FY 2011-12 in first half and the

pending load for release, the category wise connected load is provided in the

table below for FY 2011-12.



Table 21: Connected Load/Contract Demand for FY 2011-12 (H1 + H2)

Sr.

No.

Consumer Category Unit March 2011 At the end

of FY 2011-

12 H1

Expected

Addition in

Load FY

2011-12 H2

At the End of

March 12

A Domestic (DS)

1 DS I kW - - - -

2 DS II kW 44 53 21 74

3 DS III kW 804 851 147 998

4 DSHT kVA 1229 1979 2,877 4,856

B Non-Domestic (NDS) - -

5 NDS I kW - -

6 NDS II kW 1,006 1,166 210 1,413

C Low Tension (LTIS) - -

7 LTIS HP 3,168 3,427 989 4,416

D Irrigation & Agriculture Service (IAS) - -

8 IAS HP - -

E High Tension (HTS) - -

9 HTS 11 kV kVA 27,972 29,908 5,012 34,770

10 HTS 33 kV kVA 43,726 40,666 1,967 42,633


11 HTSS 11 kV kVA 1,350 1,600 - 1,600

12 HTSS 33 kV kVA 1,500 2,500 2,000 4,500

4.3.2 The connected load now projected by JUSCO for FY 2011-12 is deviating for

categories DS II, DS III and NDS II due to reason mentioned in 4.2.2. The other

details of connected are provided in Annexure D: Details of Addition of

Expected Consumers in FY 2011-12

4.4 Energy Sales FY 2011-12

4.4.1 JUSCO has projected energy sales based on the actual consumption for the first

half of FY 2011-12 and also considering the applications received and being

processed for balance period of FY 2011-12.

4.4.2 The provisional figure of average load factor has been arrived based on actual of

H1 of FY 2011-12.

4.4.3 The sales are projected by applying category wise load factor of previous year

and the same is in line with the methodology adopted in previous filing and

approval by Commission. The category wise average load factor as considered

in current filing is as below:



Table 22: Average Load Factor FY 2011-12

Provisional

Domestic (DS)

DS I -

DS II 12.20%

DS III 12.09%

DSHT 11.24%

Non-Domestic (NDS)

NDS II 14.21%

Low Tension (LTIS)

LTIS 11.62%

High Tension (HTS)

HTS 11 kV 34.62%

HTS 33 kV 32.61%

High Tension Special (HTSS)

HTSS 11 kV 55.67%

HTSS 33 kV 21.71%

Cosnumer CategoryAverage Load

4.4.4 Based on the assumption of above load factor, the category wise sales

consumption as calculated by JUSCO for FY 2011-12 is presented in the table

below:

Table 23: Energy Sales in FY 2011-12 (H1 + H2)

H1 (Actual) H2 (Provisional) FY 2011-12

A Domestic (DS)

1 DS I - - - -

2 DS II 56,493 36,005 43,108 79,113

3 DS III 768,490 506,965 550,374 1,057,338

4 DSHT 3,064,823 1,755,240 3,029,018 4,784,258

B Non-Domestic (NDS) - - - -

5 NDS I - - - -

6 NDS II 1,205,551 861,518 898,500 1,760,018

C Low Tension (LTIS) - - - -

7 LTIS 3,684,129 2,171,579 2,326,656 4,498,235

D Irrigation & Agriculture Service (IAS) - - - -

8 IAS - - - -

E High Tension (HTS) - - - -

0 87,174,823 51,306,265 54,210,159 105,516,425

9 HTS 11 kV 104,486,580 60,596,424 61,287,204 121,883,628

10 HTS 33 kV - - - -

E High Tension Special (HTSS) 5,644,180 3,905,220 3,902,547 7,807,767

11 HTSS 11 kV 5,948,125 3,570,270 4,994,957 8,565,227

12 HTSS 33 kV - - - -

Total Units 212,033,193 124,709,486 131,242,523 255,952,009

Tota MU's 212 125 131 256

FY 2011-12Sr. No. Consumer Category FY 2010-11



4.4.5 Similarly the table below shows comparison of category-wise energy sales figure

for FY 2011-12 as approved by the Hon’ble Commission in its preceding Tariff

Petition, and the revised sales projection for FY 2011-12.

Table 24: Energy Sales in FY 2011-12 (Approved & Revised Projections)

Cosnumer Category Approved Provisional

Domestic (DS)

DS I

DS II 0.98 0.08

DS III 3.92 1.06

DSHT 3.69 4.78

Non-Domestic (NDS)

NDS I - -

NDS II 2.46 1.76

Low Tension (LTIS)

LTIS 3.97 4.50

Irrigation & Agriculture Service (IAS)

IAS - -

High Tension (HTS)

HTS 11 kV 90.11 105.52

HTS 33 kV 105.80 121.88


HTSS 11 kV 7.09 7.81

HTSS 33 kV 5.80 8.57

Total (Thousand Units) 223,820 255,952

Total MUs 223.82 255.95

Sales 2011-12 (Million Units)

4.4.6 The increase in energy sales for HTS 11 kV and HTS 33 kV is mainly attributable

to the growth in industry has been better than anticipated. The growth in the

HT Industrial category has been more encouraging than projected earlier

therefore energy sale in this category has surpassed the projections in the

preceding tariff petition and approval figures of Hon’ble Commission.

4.4.7 It is also submitted that the actual sales for first half of FY 2011-12 has been 125

MUs which also an indication for consumption growth in license area.

4.4.8 Accordingly, the petitioner requests the Commission to approve the Sales of

255.95 MUs for FY 2011-12 as per revised projections.

4.5 Energy Balance

4.5.1 The major Energy Requirement of JUSCO is presently met by supply of power

from Tata Steel Ltd at two different voltage levels namely at 132 kV at Jojobera



and 6.6 kV at S-11 source at Jamshedpur and for DVC at 33 kV level. The table

below depicts the energy balance of JUSCO for FY 2011-12 based on the revised

projections of Energy Sales, Distribution Loss % and Source-wise power

purchase approved by the Hon’ble Commission and provisional figures being

recorded now by JUSCO.

Table 25: Energy Balance for FY 2011-12

Approved Provisional

Total Energy Sales 223.82 255.95

Overall Distribution Losses % 5.00% 2.16%

Overall Distribution Losses 11.78 5.64

Total Energy Requirement 235.60 261.59


132 kV 157.09 190.12

33 kV 38.87 -

6.6 kV 2.09 1.17

- RPO Purchases (B) 5.23

Solar 0.59 0.65

Non-Solar 4.12 4.58

- From DVC at 33 kV (C) 18.43 65.07

- From Others/Traders (D) 14.40 -

Total Energy Availability (A+B) 235.59 261.59

ENERGY Availability (MU)

ParticularsFY 2011-12 (MUs)

ENERGY REQUIREMENT

4.5.2 JUSCO had projected its Distribution Loss 5% in its preceding Tariff Petition and

the same was approved by Hon’ble Commission. However due to the efforts

made by the Petitioner in controlling and reducing the T&D losses as discussed

in section 3.11 of this Petition, the loss levels projected by the Petitioner are

only 2.16%. Accordingly, at energy sales of 255.95 million units and

distribution loss levels as mentioned above the total energy requirement of the

system stood at 261.59 MUs, which would be catered through power purchase

from Tata Steel Ltd at different voltage level from the input points and from

DVC at 33 kV.

4.5.3 The entire energy requirement of JUSCO for FY 2011-12 has been sourced from

Tata Steel Limited and DVC/open access route.




4.6.1 This cost is a function of the energy requirement and price of available power

from the different source for meeting the requirement. The table below

depicts the power purchase cost for FY 2011-12 as approved by the Hon’ble

Commission in its Tariff Order for FY 2011-12 and the provisional figures based

on the books of accounts.

Table 26: Power Purchase Cost for FY 2011-12

MUsCost

(Rs Crs)

Cost

p.u.MUs

Cost

(Rs Crs)

Cost

p.u.

Tata Steel Limited

132 KV 157.09 42.27 2.69 190.12 55.51 2.92

33 KV 38.87 10.46 2.69 - - -

6.6 KV 2.09 0.56 2.68 1.17 0.34 2.92

DVC at 33 kV 18.43 6.50 3.53 65.07 24.68 3.79

Renewable Power

Solar 0.59 0.88 14.98 0.65 0.98 14.98

Non-Solar 4.12 2.06 5.00 4.58 2.29 5.00

Others/Traders 14.40 6.56 4.55 - - -

Total 235.59 69.29 2.94 261.59 83.81 3.20

FY 2011-12 (Provisional)

Particular

FY 2011-12 (Approved)

4.6.2 The Hon’ble Commission has approved the average power purchase cost for

JUSCO at 2.94 per kWh for FY 2011-12. However, presently the average cost

comes about 3.20 per kWh.

4.6.3 Tata Steel Ltd – The petitioner has projected the availability from TSL based on

actual purchase for first months. The power purchase rate considered for Tata

Steel Ltd is 2.92 /kWh which is based on approved cost of 2.69/kWh in

previous tariff order and 0.23 /kWh towards fuel surcharge for which

separate approval has been sought by Tata Steel Ltd vide letter no.

PBD/328/59/11 dated 22nd

October 2011. The letter to Commission is attached

as Annexure A: Letter from TSL to Commission for Fuel Surcharge Approval.

Subsequent to this letter from Tata Steel Ltd (TSL), it was informed to the

petitioner that Hon’ble Commission has directed TSL to file the petition for the

same.

4.6.4 DVC – It is submitted that JUSCO has been procuring power from DVC since

February 2011. It is further submitted that the power purchase cost of the



petitioner has gone upwards due to power purchase from DVC which is

required to meet increase in load growth and resultant energy sales.

4.6.5 It is further submitted by petitioner that in Oct’2011 DVC has given its approval

for further 10MVA power supply to JUSCO .. Accordingly, the power purchase

from DVC is projected for FY 2011-12 considering the additional supply.

4.6.6 The petitioner proposes to purchase above mentioned power from DVC to meet

the power demand in the area and also the power from DVC is based on

regulated tariff. It is submitted to Hon’ble Commission that if the petitioner

had relied on open market sources for short term/ immediate requirements,

the rate for such power purchase would have been more than 5 per unit.

4.6.7 The actual power purchase rate upto September 2011 on weighted average

basis computes to 3.73 /kWh. The power purchase cost from October 2011

has been considered from the latest available bill which is 3.82 /kWh.

Accordingly, the average power purchase rate for FY 2011-12 computes to

3.79 /kWh.

4.6.8 The bills of Tata Steel Ltd and DVC have been attached along with the petition in

Annexure E: Power Purchase Bills for FY 2010-11 and FY 2011-12 H1.

4.6.9 Renewable Power - As per JSERC (Renewable purchase obligation and its

compliance) Regulations, 2010 issued by Hon’ble Commission, the petitioner

has initiated the process of fulfilment of RPO requirements. An advertisement

had been issued in 2 English and 2 Hindi newspapers in this regard on 24th

October 2011; seeking participation from the bidders for providing renewable

energy and submit bids by 31st

October 2011. However there was no

participation in the bid process.

4.6.10 The purchase rates for solar and Non-Solar have been considered same as

approved by the Hon’ble Commission in previous tariff order.

4.6.11 Accordingly, the petitioner requests the Hon’ble Commission to kindly approve

the total power purchase cost of 8,381 Lacs for FY 2011-12.

4.7 Inflation Rate

4.7.1 The inflation rate in India was last reported at 9 percent in August of 2011.

Inflation rate refers to a general rise in prices measured against a standard

level of purchasing power. The most well known measures of Inflation are the



CPI which measures consumer prices, and the GDP deflator, which measures

inflation in the whole of the domestic economy. The Hon’ble Commission in

the previous tariff order for FY 2011-12 had applied the weightage of 55% and

45% for WPI-CPI rates which is applicable for Control period and not for

transition period of FY 2011-12 and FY2012-13.

4.7.2 Further the Tariff Regulations 2004 which are applicable for transition period to

the extent of O&M Expenses, do not specifically mention of any indices/

method for inflationary increase pass through.

4.7.3 The petitioner has computed the inflation rate considering past 18 months data

and applied for Employee and A&G direct costs for FY 2011-12. The data of

inflation which is used for projection purposes is provided in the below table:

Table 27: Inflation Rate

Month Rate

Apr-10 15.00%

May-10 13.75%

Jun-10 14.00%

Jul-10 13.90%

Aug-10 11.50%

Sep-10 9.90%

Oct-10 9.80%

Nov-10 9.70%

Dec-10 8.30%

Jan-11 9.40%

Feb-11 9.30%

Mar-11 8.50%

Apr-11 8.50%

May-11 9.40%

Jun-11 8.70%

Jul-11 8.60%

Aug-11 8.40%

Sep-11 9.00%

Average Inflation Rate 10.31%

Source: http://www.tradingeconomics.com/india/inflation-

cpi

4.8 Employee Cost

4.8.1 The Direct Employee Cost for FY 2011-12 is projected by JUSCO based on actual

expenditure for first six months and estimated expenditure for balance six

months. The total no of employees at the start of FY 2011-12 are 53 and the

number of employees expected at the end of FY 2011-12 are 72.

4.8.2 The Employee Cost for Common services of JUSCO was being apportioned to

the JUSCO’s licensee’s operations based on the principles explained in the

previous section.



4.8.3 It is submitted that the direct employee costs for FY 2010-11 is 231.32 Lacs

for 53 number of employees. In line with the Commission’s approval, the

petitioner has considered inflationary increase of 10.31% over FY 2010-11

direct costs and common costs. Further the petitioner has also considered

increase in direct costs for the additions in number of employees expected in

FY 2011-12. The table below provides the details of employee cost for FY 2011-

12 as petitioned, approved and now revised based on half yearly performance.

Table 28: Employee Cost for FY 2011-12

Rs. Lacs

No of Employees 65 72 72

Employee Cost - Direct 344 328 305

Employee Cost - Common 134 134 144

Gross Employee Cost 478 462 449

Less: Employee capitalised - 16 -

Net Employee Cost 478 446 449

Sales (MUs) 221 224 256

Employee Cost/ Unit 0.22 0.20 0.18

ParticularsFY2011-12

Petition

2011-12-H2

Approved

FY 2011-12

Provisional

4.8.4 As can be seen from the above table, the employee cost has been marginally

higher than approved figures for FY 2011-12. Though the direct cost increase is

on lower side than approved figures, the allocation of cost for common services

has been slightly higher. The petitioner wants to submit Hon’ble Commission

that it has been able to manage its increasing business within the limited

resources which is evident from the employee cost per unit.

4.8.5 The majority of the cost is expected tin second half of the year for new

additions and also the inflationary impact. The table below provides the break-

up of employee cost for H1 (actual) and H2 (estimated) for FY 2011-12.



Table 29: Breakup of Employee Cost for FY 2011-12 (H1 + H2)

Salary (Basic) 42 67 110

Special Allowance 19 21 40

Wages Other Charges 21 35 57

House Rent Allowance 3 9 12

Conveyance Allowance 4 6 10

Staff Welfare Expenses 1 3 4

Leave Travel Assistance 2 4 6

Leave Salary 7 8 15

Superannuation Fund 6 10 16

Contribution to Provident fund 5 9 14

Gratuity 5 8 12

Other, if any (Employee benefit AS-15) 5 4 9

Employee Costs (Direct) 120 185 305

Common Cost of JUSCO 65 79 144

Gross Employee Cost 189 261 449

Less: Employees expenses capitalised - - -

Net Employee Cost 188 262 449

2011-12-H1

(Provisional)

2011-12-H2

(Estimatedl)

2011-12 -

TotalItem (Costs in Rs. Lacs)

4.8.6 As mentioned earlier, JUSCO has been able to managing its increasing business

within reasonable manpower strength. It is humbly submitted that Hon’ble

Commission is well aware of the available talent in power sector and due to

such limitations of required skill sets, it is very essential to retain such

employees in organisation. It is kindly requested to Hon’ble Commission to

approve the gross employee expenses including indirect expenses for FY 2011-

12 at 449 Lacs as per revised projections.

4.9 Repair and Maintenance Expenses

4.9.1 The Repair & Maintenance Expenses amount as approved by the Hon’ble

Commission in previous tariff order was about 134 lacs. As on 30th

September

2011 the actual expenditure incurred by the petitioner on R&M is about 64

Lacs and projected expenditure for second half of FY 2011-12 is 87.12 Lacs. It

is submitted that the material prices, labour charges and other costs are

increasing at a very higher rate and considering these elements, the petitioner

has revised its estimates for FY 2011-12. Further the petitioner also wants to

submit that In accordance with Jharkhand Act No. 11, 2011, an entry tax shall

be applicable from 15th

July 2011 on certain goods from outside the state to

local area. This will also to some extent increase the prices of equipments,

stores and spares.



4.9.2 In the previous order Commission had observed that the expansion in capital

base but also stated that since most of the assets have been laid by the

Petitioner in the last two to three years, they would be covered under warranty

period and much of the repair works, if required, would be carried out free of

cost. However, Petitioner wants to submit that even though many assets were

new, generally guarantee on new assets remains only for one year that too is

only for limited type of repairs. Though, in some cases repair upto one year

may be free but maintenance always constitute costs and not done by the

supplier always free of cost.

4.9.3 Considering the above mentioned factors, the petitioner has assumed 20%

increase in R&M expenses over FY 2010-11 which works to 151.26 Lacs and

as a % of Opening GFA for FY 2011-12 works out to 1.53%. JUSCO requests the

Hon’ble Commission to kindly allow the R&M expenses as per revised

projections for FY 2011-12 at 151.26 Lacs.

4.10 Administration and General Expenses

4.10.1 The petitioner has estimated an amount of 300.87 Lacs towards A&G

expenses considering inflation rate of 10.31% over FY 2010-11 actual amount

except for Surcharge on Electricity duty amount which is taken as per actual till

June 2011. The A&G expenses sought in true-up for FY 2010-11 are 346.84

Lacs and the expenses approved by Hon’ble Commission for FY 2011-12 were

289 Lacs. The table below summarises the actual expenses for FY 2010-11,

approved figures for FY 2011-12 and revised projections for FY 2011-12 of A&G:

Table 30: A & G Expenses for FY 2011-12

Rs. Lacs

A&G Cost - Direct 205 188 203

A&G Cost - Common 142 110 98

Gross A&G Cost 347 298 301

Less: Exp capitalised - 9 -

Net A&G Cost 347 289 301

ParticularsFY2010-11

Actual

2011-12

Approved

FY 2011-12

Provisional

4.10.2 The break-up of Administration & General Expenses projected by JUSCO for FY

2011-12 into H1 and H2 are tabulated below:



Table 31: Break up of A & G Expenses for FY 2011-12 (H1 + H2)

H1 H2 Total

Legal & Regulatory Charges 4 20 24

Consultancy Charges/ Retainer Fees 8 26 34

Travelling Expenses 8 9 17

Printing & Stationary 0 0 0

Donation - 0 0

Advertisement 5 7 12

Office Maintenance 3 3 6

Telephone & Mobile Expenses 2 3 5

Insurance Premium 7 1 8

Pvt Security Guards/ Home Guards 6 7 13

Miscellaneous Expenses 1 2 3

Vehicle Hire Expenses 1 1 2

Rent, Rates & Taxes 3 27 30

Surcharge on Electricity Duty 11 - 11

Software Development - 38 38

Total A&G Costs (Direct) 58 144 203

Common Cost of JUSCO 38 60 98

GROSS A&G COST 97 204 301

Less: A&G Expenses capitalised - - -

NET A&G COST 97 204 301

ParticularFY 2011-12 (Amount in Rs. Lacs)

4.10.3 The expenditure in second half of FY 2011-12 is slightly on higher side

compared to first half mainly due to following expenses to be incurred in later

half:

• Software development expenses;

• The payments for rents/ rates / taxes;

• Legal & Regulatory fees;

• Consultancy Charges.

4.11 Operation & Maintenance Expenses

4.11.1 The Operation & Maintenance Expenses comprising of Employee Cost, Repair &

Maintenance Expenses and Administrative & General Expenses for FY 2011-12

are summarised in the table below:



Table 32: O&M Expenses for FY 2011-12

Rs. Lacs

FY 2010-11 FY 2011-12 FY 2011-12

Actual Approved Provisional





Total (A) 563 651 659



Total (B) 273 244 243

Less: Expenses Capitalised

Employee Cost - 17 -

R&M Expenses - - -

A&G Expenses - 9 -

Total (C) - 26 -

Net O&M Expenses (A+B-C) 835 869 901

Particular


4.11.2 It is submitted that the increase in O&M expense over last year is primarily due

to increased level of Business.The per unit O&M expense remains almost same

at the level of approximately 37 paisa per unit. The per Unit O&M cost of

JUSCO is among the best in the Industry as depicted in Table 6. Accordingly,

the petitioner requests the Hon’ble Commission to approve O&M Expenses of

901 Lacs for FY 2011-12.

4.12 Capital Work in Progress, GFA and Depreciation

4.12.1 The capital expenditure planned during the year is re-estimated at 1,197

Lacs and the additions to gross fixed assets are projected at 804 Lacs which

are approx 35% of the total CWIP. It is submitted that the revised projections

for FY 2011-12 are lower than the approved figures for FY 2011-12. The details

of the schemes are provided in the tariff filing formats.

4.12.2 The petitioner has not considered any IDC in this financial year and requests

Hon’ble Commission to allow petitioner to claim IDC at the time of truing-up or

as may be directed by Hon’ble Commission. The Capital Work in Progress,

Gross Fixed Assets and Depreciation for the FY 2011-12 approved by the

Hon’ble Commission in its Tariff Order for FY 2011-12 and the provisional

figures based on the books of accounts is depicted in the table below.



Table 33: CWIP, GFA and Depreciation for FY 2011-12

Rs. Lacs


Opening CWIP 1,100 1,100

Capex during the FY 1,943 1,197

Total CWIP 3,043 2,297

Less: Transferred to GFA 1,449 804

Closing CWIP 1,594 1,493

Opening GFA 9,666 9,879

Transferred from CWIP 1,449 804

Closing GFA 11,115 10,683

Total Depreciation 650 644

Less: Depreciation on Assets created out of

Consumer Contribution175 185

Net Deprecation 475 459




Depreciation

4.12.3 The details of asset wise opening GFA and additions to GFA for FY 2011-12 are

provided in the table below:

Table 34: GFA for FY 2011-12

1 Land Devlopment 38 3 41

2 Offices & Showroom 550 45 595

3 Other Buildings 20 2 21

4 Transformers 1,149 94 1,243

5 Switchgear including cable connections 2,572 209 2,782

6 Underground CABLE 2,734 223 2,956

7 Overhead Lines < 6.6kv (LT) 132 11 142

8 Overhead Lines > 6.6kv 2,168 176 2,345

9 Meters 35 3 38

10 Self propelled vehicles 8 1 9

11 Air conditionar (Portable) 7 1 8

12 Office furniture & fittings 13 1 14

13 Office Equipments 76 6 82

14 Street Light fittings 0 0 0

15 Communication System 6 1 7

16 Data Processing Machine 23 2 25

17 Software 188 15 204

18 Other Assets 159 13 172

Total 9,878 804 10,682

Particulars of AssetsGFA as on

01.04.2011

Additions

during FY

2011-12

Retirement

during FY

2011-12

GFA as on

31.03.2012

Sl.

No.



4.12.4 JUSCO submits that the computation of depreciation is based on Straight Line

Method of computation as prescribed in the Tariff Regulations issued by the

Hon’ble Commission using the rates as provided in Appendix II to the Tariff

Regulations. For Assets capitalised during the Financial Year, the depreciation is

being computed proportionately based upon the date of commissioning.

4.12.5 Accordingly, asset-wise total depreciation costs for FY 2011-12 before

deducting depreciation on account of assets created out of consumer

contribution capitalised is computed at 644 Lacs. The working of depreciation

on Fixed Assets is shown in the table below:

Table 35: Net Depreciation for FY 2011-12

1 Land Devlopment 0.00%



4 Transformers 7.81% 181 93 275





9 Meters 12.77% 8 5 13








17 Software 9.00% 22 18 40

18 Other Assets - 20 - 20

Total 1,391 644 2,035

Sl.No. Particulars of Assets

Rate of

Deprecia

tion

Accumulated

Depn as on

01.4.2011

Depreciation

for FY 2011-

12 (H1+H2)

Accumulated

Depn as on

31.3.2012

4.12.6 The depreciation on assets created out of consumer contribution computes to

185 Lacs. Accordingly, the petitioner requests the Commission to kindly

approve the net depreciation amount of 459 Lacs for FY 2011-12 to be

claimed in ARR.


4.13.1 Interest on Normative Loan - It is submitted that the entire capital expenditure

incurred by JUSCO has been funded through equity infusion and through



consumer contributions. However, as per the provisions of Regulation 11 of

JSERC (Terms and Conditions for Distribution Tariff) Regulations 2010,

normative loans shall be considered equal to the loan (if any) and amount of

equity in excess of 30% invested in the project. In case of JUSCO, the deemed

addition to the normative loans have been taken at 70% of the total CWIP

capitalised during the Financial Year net of Consumer Contribution being


Capitalised) reduced by the Accumulated Depreciation. The deemed

repayments of normative loans has been considered equivalent of the net

depreciation cost of the Financial Year. The normative interest rate has been

taken at 13.25%, in accordance with the approval of the Hon’ble Commission

in its previous Tariff Order for computation of normative interest for the year.

The interest on normative loan based on average loan balance works out to

607 Lacs for FY 2011-12.

4.13.2 Interest on Security Deposit - The provision for Interest on Security Deposit for

FY 2011-12 has been made @ 6.00% per annum in line with the regulations and

methodology as approved by Hon’ble Commission in previous tariff orders. The

Interest on Security Deposit works out to 146 Lacs for FY 2011-12 on security

balance of 2,455 Lacs.

4.13.3 Bank Charges - In the previous tariff order, the Hon’ble Commission had stated

that bank charges @ 75,000 per month for Letter of Credit maintained with

bank shall be approved after JUSCO provides details of Agreement with DVC.

The Power Purchase Agreement with DVC is attached herewith as Annexure C:

Agreement with DVC for Bank Charges on Letter of Credit. The bank charges

for FY 2011-12 compute to 9 Lacs and Hon’ble Commission is requested to

approve the same.

4.13.4 The Normative Loan and Interest and Finance Charges approved by the Hon’ble

Commission in its Tariff Order for FY 2011-12 and as per revised figures for FY

2011-12 is shown in the table below.



Table 36: Normative Loans & Interest Cost for FY 2011-12



Add: Deemed Additions 1,367

Less: Deemed Repayments 459


Average Balance 4,578

Interest Rate 13.25% 13.25%

Interest on Normative Loan (A) 484 607

Other/Bank Charges(B) - 9

Interest on Security Deposit (C) 122 146

Total Interest and Finance Charges

(A+B+C)606 761


4.13.5 Accordingly, the Hon’ble Commission is requested to approve the Interest and

Finance Charges of 761 Lacs for FY 2011-12.

4.14 Reasonable Return on Equity

4.14.1 The deemed addition to the normative equity has been taken at 30% of the

total CWIP capitalised during the FY net of Consumer Contribution being


Capitalised). The normative return on equity is being computed @ 15.5% on

the average balance of normative equity during the FY, as being approved by

the Hon’ble Commission. The methodology of computation of normative equity

capital as well as the Rate of Return for FY 2011-12 has been taken as approved

by the Hon’ble Commission in its previous Tariff Order i.e. RoE % grossed up by

tax rate of 32.45% for FY 2011-12.

4.14.2 The comparison of Normative Equity Capital and Return on Equity as approved

by the Hon’ble Commission in its previous Tariff Order and now provisionally

computed for FY 2011-12 is shown in the table below.



Table 37: Normative Equity & Return on Equity for FY 2011-12


Add: Deemed Additions 816


Average Balance 2,293 2,621

Rate of Return 15.50% 15.50%

Income Tax Rate 32.45% 32.45%

RoE % grossed up with Tax 22.94% 22.94%

Return on Equity (Rs.Lacs) 526 601


Approved

FY 2011-12

Provisional

4.14.3 Accordingly, the Hon’ble Commission is requested to approve the Return on

Equity of 601.3 Lacs for FY 2011-12.

4.15 Non Tariff Income

4.15.1 JUSCO had projected 27 Lacs as its Non-Tariff Income for FY 2011-12 in its

previous Tariff Petition and the Hon’ble Commission had approved 30 Lacs in

its Tariff Order for FY 2011-12. The non-tariff income provisionally projected

now for FY 2011-12 based on actual of H1 is 25.72 Lacs and the Hon’ble

Commission is requested to approve the same.

4.16 Demand Side Management (DSM) and CGRF Expenses

4.16.1 DSM Initiatives - The various initiatives taken by the petitioner for DSM

activities for FY 2011-12 and FY 2012-13 are as under:

a) Energy Conservation Initiatives: Energy conservation awareness programs

are proposed to be conducted in Seraikela-kharsawan district. This is planned

to be done for all Category of Consumers including Industrial Consumers,

Domestic Consumers and Commercial Consumers.

b) 100% CFL Compliant Consumer Base: A scheme is being devised to ensure

100% CFL compliant consumer base of JUSCO. Under this scheme the

following activities are proposed.

• Survey of use of incandescent lamp in domestic sector (door to door).

• Estimating the total no. of Incandescent lamp in domestic sector.

• Preparing a scheme for replacement of the Incandescent lamp with CFL

and communicating the scheme to the consumers.

• Exchanging Incandescent lamp with CFL lamps at attractive pricing. A

major part of the cost may be funded by JUSCO.



• Cost benefit analysis of providing CFL lamps in place of incandescent lamp

reveals that the Payback period even for Licensee is less 2 years for such

investment in addition to other benefits.

c) Study of Power Factor (PF) and Load Factor (LF) of various industrial

consumers of JUSCO.

• Under this JUSCO will study the LF & PF patterns of various Industrial

consumers of JUSCO and will engage its resources to increase the LF & PF

of various industrial consumers. Consumers with lower LF &PF will be

undertaken on priority and necessary guidance would be provided to

them by JUSCO engineers or through expert agencies hired by JUSCO to

undertake this function.

Further analysis of the same will be done in due course and we are hopeful that

sufficient improvement may be witnessed in near future. JUSCO shall communicate the

Hon’ble Commission about these initiatives from time to time.

4.16.2 CGRF Initiatives – The position of CGRF Chairman was lying vacant as the one

nominated for the post did not join the office. The Hon’ble Commission

suggested the name of Mr. V.N Singh who has joined the CGRF on 15th

Oct

2011. The CGRF committee is sending its reports on time to time to the

Hon’ble commission.

4.16.3 The total DSM and CGRF expenses projected for FY 2011-12 is 46 Lacs. It is

submitted to Hon’ble Commission that the expenditure to be incurred for

DSM and CGRF activities may be approved on a provisionally basis and the

petitioner shall provide the details of the same in the subsequent filing under

True up of FY 2011-12.

4.17 Revenue from Existing Tariff for FY 2011-12

4.17.1 The consumer category-wise Revenue from Existing Tariff for first six months of

FY 2011-12 as per provisional figures in the books of accounts is given under

the table below.



Table 38: Revenue from Existing Tariff for FY 2011-12 – H1

Sales Average

Tariff

(000 Units)Fixed

Charges

Energy

Charges

Others

(Rebate/

Charges)

Total

Revenue(Rs/kWh)

Domestic (DS)

DS I - - - - - -

DS II 36 2 63 0 66 1.83

DS III 507 23 963 1 988 1.95

DSHT 1,755 504 2,896 1 3,401 1.94

Non-Domestic (NDS) - -

NDS I - - - - -

NDS II 862 739 3,411 2 4,152 4.82

Low Tension (LTIS) - -

LTIS 2,172 1,569 7,601 350 9,520 4.38

High Tension (HTS) - -

HTS 11 kV 51,306 27,392 223,103 (1,272) 249,223 4.86

HTS 33 kV 60,596 39,041 263,594 (9,440) 293,196 4.84

High Tension Special (HTSS) - -

HTSS 11 kV 3,905 3,217 9,763 (214) 12,766 3.27

HTSS 33 kV 3,570 4,757 8,926 (426) 13,257 3.71

Total 124,709 77,244 520,320 (10,996) 586,567 4.70

Cosnumer Category

Revenue from Sale of Power (Rs. in '000')

Table 39: Revenue from Existing Tariff for FY 2011-12 – H2

Sales Average

Tariff

(000 Units)Fixed

Charges

Energy

Charges

Others

(Rebate/

Charges)

Total

Revenue(Rs/kWh)

Domestic (DS)

DS I - - - - -

DS II 43 6 75 0 81 1.88

DS III 550 26 1,046 1 1,073 1.95

DSHT 3,029 1,165 4,998 2 6,165 2.04


NDS I - - - - -

NDS II 899 933 3,549 2 4,484 4.99

Low Tension (LTIS) - - - - -

LTIS 2,327 1,987 8,143 373 10,504 4.51

High Tension (HTS) - - - - -

HTS 11 kV 54,210 30,980 235,814 (1,372) 265,422 4.90

HTS 33 kV 61,287 37,986 266,599 (9,491) 295,095 4.81


HTSS 11 kV 3,903 2,851 9,756 (208) 12,400 3.18

HTSS 33 kV 4,995 8,019 12,487 (636) 19,870 3.98

Total 131,243 83,954 542,468 (11,327) 615,095 4.69

Revenue from Sale of Power (Rs. in Thousand)

Cosnumer Category



Table 40: Revenue from Existing Tariff for FY 2011-12 – (H1 + H2)

Sales Average

Tariff

(000 Units)Fixed

Charges

Energy

Charges

Others

(Rebate/

Charges)

Total

Revenue(Rs/kWh)

Domestic (DS)

DS I - - - - -

DS II 79 8 138 1 147 1.86

DS III 1,057 49 2,009 3 2,061 1.95

DSHT 4,784 1,669 7,894 3 9,566 2.00

Non-Domestic (NDS) - - - - -

NDS I - - - - -

NDS II 1,760 1,671 6,960 4 8,635 4.91


LTIS 4,498 3,556 15,744 724 20,024 4.45


HTS 11 kV 105,516 58,372 458,917 (2,644) 514,645 4.88

HTS 33 kV 121,884 77,027 530,194 (18,931) 588,290 4.83

High Tension Special (HTSS) - - - - -

HTSS 11 kV 7,808 6,068 19,519 (421) 25,166 3.22

HTSS 33 kV 8,565 12,776 21,413 (1,062) 33,127 3.87

Total 255,952 161,197 1,062,788 (22,323) 1,201,662 4.69

Cosnumer Category

Revenue from Sale of Power (Rs. in '000')

4.17.2 As can be seen from the above table, the total revenue from existing tariff is

12,017 Lacs and accordingly the Hon’ble Commission is requested to approve

the same for FY 2011-12.

4.18 ARR and Revenue Gap for FY 2011-12

4.18.1 JUSCO now estimates its revised provisional Annual Revenue Requirement for

FY 2011-12 at 11,124 Lacs and revenue from sale of power at 12,017 Lacs.

Accordingly, the net revenue gap / (surplus) for FY 2011-12 works out to

(934) Lacs which is inclusive of revenue gap / (surplus) of (41) Lacs till FY

2010-11 subject to the review of accounts for FY 2010-11 by Hon’ble

Commission and sharing of gains due to low loss levels.

4.18.2 Based on the discussions in the preceding paras of this chapter, the table below

summarizes ARR for FY 2011-12 as projected by JUSCO in previous petition,

ARR approved by the Hon’ble Commission in its Tariff Order for FY 2011-12 and

revised provisional ARR computed for FY 2011-12.



Table 41: Revised ARR for FY 2011-12

Rs. Lacs

Projected Approved Provisional

Costs

Power Purchase Cost 7,666 6,930 8,381

O&M Expenses 1,050 869 901

Employee Costs 478 446 449



Depreciation 476 475 459

DSM and CGRF Expenses 46 46 46

Interest & Finance Charges 571 606 761

Income Tax 230 - -

Total Costs 10,038 8,925 10,548

Add: Reasonable Return 347 526 601

Less: Non-Tariff Income 27 30 26

Total Costs 10,358 9,422 11,124

Energy Supplied (MU) 221 224 256

Cost of Supply 4.69 4.21 4.35

FY 2011-12Particulars

4.18.3 The revised revenue gap / (surplus) for FY 2011-12 considering past recoveries

as approved by Hon’ble Commission in previous tariff order and as re-

computed by petitioner in the current petition is as follows:

Table 42: Revenue Gap / (Surplus) for FY 2011-12

Rs. Lacs


Approved

FY 2011-12

Provisional

Annual Revenue Requirement for FY 2011-12 9,422 11,123.9

Less: Revenue from Sale of Power at Existing Tariff 10,305 12,017

Revenue Gap/(Surplus) for FY 2011-12 (883) (893)

Add: Past Revenue Gap / (Surplus) till FY 2010-11 (292) (41)

Total Revenue Gap/(Surplus) for FY 2011-12 (1,175) (934)

4.18.4 Accordingly, the petitioner requests the Commission to kindly approve the

revenue gap / (surplus) of (934) Lacs inclusive of past recoveries and sharing

of revenue due to efficient system management of the Petitioner.

Chapter 5 ARR of FY 2013 Nov 2011 Page 5-52


Chapter 5. ARR Determination for FY 2012-13

5.1 Introduction

5.1.1 In this section JUSCO outlines its projections for the FY 2012-13 in the light of

the performance for FY 2011-12 based on provisional figures available in the

books of JUSCO. Though the figures of FY 2011-12 have already been shown in

detail in the previous chapter, however for the purpose of explaining the basis

of projections for FY 2012-13 in a better way, the same have been reproduced

along with the projected figures of FY 2012-13 at appropriate places.

5.2 Number of Consumer’s and Load Projections

5.2.1 The projections of consumers are based on CAGR for previous three years. In

case of DSHT, the expected number of colonies and relevant consumers have

been taken based on the information on construction of hosuing

colonies/comples in the area and not in accordance with CAGR of previous

three years. Hence the CAGR in case of DSHT has been corrected by a factor

0.5. However, in case of other categories including HTS, the information from

field offices has been considered where consumers are willing to get the new

connections from Petitioner, hence, the growth rate has been assumed

equivalent to CAGR of previous three years. The Petitioner has identified rural

consumers in some of the areas for distributing new connections. The new

rural consumers are expected to be 100.

Table 43: Calculation of Number of Consumers - FY 2012-13

2012-13

Domestic (DS)

DS I - - - - 100

DS II 1 10 13 35 87% 65

DS III 38 60 72 87 20% 105

DSHT 3 7 9 18 60% 23

Non-Domestic (NDS) - - - - -

NDS I - - - - -

NDS II 25 66 99 155 53% 238


LTIS 11 33 51 77 53% 118


HTS 11 kV 35 83 105 132 26% 166

HTS 33 kV 5 11 13 15 17% 18

High Tension Special (HTSS) - - - - -

HTSS 11 kV - 1 2 2 41% 3

HTSS 33 kV - 1 1 2 41% 3

Total Consumers 118 272 365 523 838

Consumer Category 2008-09 2009-10 2010-11 2011-12 CAGR*

In case of DSHT the CAGR is corrected by a factor 0.5



5.2.2 JUSCO expects that approximately 315 number of consumers would be added

up in FY 2012-13, increasing the total number of consumers from 523 in FY

2011-12 to 838 in FY2012-13.

5.2.3 Accordingly, the growth projection in Connected Load / Contract Demand

growth has been depicted in the table below, based on the corresponding

increase in number of consumers. In respect of new applications, the

corresponding load enhancement has been projected based upon the average

load of the respective consumer category. It may be noted that, because of

availability of additional power supply from DVC and other sources, JUSCO will

be in a position to release new connection and therefore has projected fresh

addition to its Domestic, Non Domestic & HT Industrial consumer category. As

discussed earlier JUSCO has been able to procure power of around 10 MVA

from DVC since Feb 2011 onwards and further it has also arranged to get 10

MVA power from December 2011 from DVC.

Table 44: Connected Load - FY 2012-13

FY 2011-12 FY 2012-13

Provisional Projected

Domestic (DS)

DS I kW - 100

DS II kW 74 108

DS III kW 998 1,170

DSHT kVA 4,856 7,284


NDS I kW - -

NDS II kW 1,413 1,924


LTIS HP 4,416 5,907


HTS 11 kV kVA 34,770 41,882

HTS 33 kV kVA 42,633 48,317


HTSS 11 kV kVA 1,600 1,600

HTSS 33 kV kVA 4,500 6,750

Consumer Category Unit

5.2.4 The average projected load factor of FY11-12 has been considered for

calculating the energy sales forecast for FY12-13.



Table 45: Average Load Factor - FY 2012-13

FY 2011-12 FY 2012-13

Provisional

Load Factor

applied for

Sales

Projection

Domestic (DS)

DS I - -

DS II 12.20% 12.20%

DS III 12.09% 12.09%

DSHT 11.24% 11.24%


NDS I - -

NDS II 14.21% 14.21%


LTIS 11.62% 11.62%

Irrigation & Agriculture Service (IAS) - -

IAS - -


HTS 11 kV 34.62% 34.62%

HTS 33 kV 32.61% 32.61%


HTSS 11 kV 55.67% 55.67%

HTSS 33 kV 21.71% 21.71%

Consumer Category

5.3 Energy Sales Projections

5.3.1 For calculating the forecasted energy sales, the time period for existing

consumers has been considered as 12 months, whereas for the new consumers

the time period of 6 months has only been considered based on fair estimates.

applications under process and new applications has been considered as 12

months and 6 months respectively, based on fair estimates.

5.3.2 The provisional Energy Sales for FY 2011-12 as well as the projected Energy

Sales for FY 2012-13 based on the methodology explained in the previous paras

for each consumer category is shown below.



Table 46: Energy Sales - FY 2012-13

FY 2011-12 FY 2012-13


Domestic (DS)

DS I - 120,000

DS II 79,113 114,956

DS III 1,057,338 1,238,789

DSHT 4,784,258 7,171,476

Non-Domestic (NDS)

NDS I - -

NDS II 1,760,018 2,394,256

Low Tension (LTIS)

LTIS 4,498,235 6,013,001

High Tension (HTS)

HTS 11 kV 105,516,425 127,012,335

HTS 33 kV 121,883,628 138,040,231


HTSS 11 kV 7,807,767 7,802,423

HTSS 33 kV 8,565,227 12,839,046

Total Units 255,952,009 302,746,512

Total in Mus 256 303

(Thousand Units)

Consumer Category

5.3.3 It is evident from the computation of energy sales shown in the table above,

that approx 85% of the energy consumption projected in FY 2012-13 is

expected to be on account of the existing consumers only.

5.4 Energy Balance

5.4.1 The Energy Balance of JUSCO for FY 2012-13 which is based on the provisional

data for Energy Purchase and Energy Sales and the resulting Distribution Loss

during the FY 2012-13 is shown under the table below. The Distribution Loss

level have been projected at 3.50%. which is lower than the loss level target of

5% specified in Regulations 2010. Since the inception of its operations, JUSCO

has been committed to take the best possible measures to minimise its

distribution losses. This has been possible by implementing several initiatives

and best practices from the power distribution industries which are also

discussed in chapter 3. JUSCO shall continue to demonstrate its total

commitment towards minimising its distribution losses to the best possible

level approaching technical limits.



Table 47: Energy Balance - FY 2012-13

FY 2011-12 FY 201 2-13

Provisio nal Project ed

Total Energy Sales 256 303

Overall D istribu tion Losses % 2.16% 3 .50%

Overall D istribu tion Losses 6 11

Total Energy Req uirem ent 262 314


132 kV 190 194

33 kV - -

6.6 kV 1 1

- RPO Purchases (B) 5 9

- From DVC at 33 k V (C) 65 82

- From O thers/Tra ders (D) - 27

Total Energy A vailab ility (A+B+C+D ) 262 314

Particu lars

ENERGY A vailab ility

ENERGY REQUIREMENT

5.4.2 With the increase in network spread, increase in load on the existing

distribution system and increase in number of low tension consumers in the

system, the Distribution Losses are likely to increase.

5.4.3 Accordingly, while projecting the Energy Requirement of the system for FY

2012-13, Energy Sales projections are being grossed up by estimated Distribution

Loss at 3.50% to arrive at the quantum of power purchase required to cater to

the expected demand. The details regarding the sources of power identified to

meet the requirement of power purchases as estimated above has been

discussed in subsequent paragraphs (heading Power Purchase Cost). Therefore,

JUSCO submits to the Hon’ble Commission to allow distribution losses at 3.50%,

which is amongst the lowest while comparing with the average distribution

losses of the other private Distribution Licensees in India. JUSCO submits that it

shall continue its endeavour towards operating at the lowest loss levels feasible

and accordingly the actual losses reported may be considered by the Hon’ble

Commission at the time of true – up of FY 2012-13 figures along with sharing of

gains & losses mechanism. JUSCO would like to bring to the notice of the Hon’ble

Commission that the projected loss level for FY12-13 at 3.5% are lower than the

Loss Target levels specified for JUSCO in the Regulations’2010 . This has been

made possible by various sincere efforts and hard work by the staff and officers

of JUSCO as explained in Section-3 previously. JUSCO has considered sharing of

Gains due to lower T&D losses in the APR of FY12-13.




5.5.1 This cost is a function of the energy requirement and price of available power

from the different source for meeting the requirement.

5.5.2 JUSCO has been able to cater to its systems energy requirement majorly from

the power available from Tata Steel Ltd and remaining part from DVC.

5.5.3 For its continuous quest of getting a reliable and firm power source, JUSCO has

additionally tied-up 10 MVA power with Damodar Valley Corporation (DVC).

This will have total sanctioned capacity with DVC at 20 MVA for JUSCO.

5.5.4 Accordingly, for FY 2012-13, JUSCO has various sources of power i.e. Tata Steel

Ltd, DVC, Renewable purchase & other sources/ traders for unmet demand.

The source wise power purchase costs are discussed herewith.

5.5.5 Tata Steel Ltd - The power purchase rate considered for Tata Steel Ltd is 3.07

/kWh. This price is based on a moderate hike of 5% on proposed power

purchase price of 2.92 /kWh for FY 2011-12 and is in line with CERC Escalation

Rates for coal prices for bid evaluations issued recently. Tata Steel is selling coal

based power to JUSCO. A hike of 5% is justifiable considering high inflation

during the year combined with already hiked coal prices of regulated sale of

coal. The power purchase expenses for FY 2012-13 compute to 5,982 Lacs

for 195 MUs.

5.5.6 DVC – As mentioned earlier, the petitioner has managed to further tie-up 10

MVA of power for its license area wef December 2011 making it 20 MVA of

power from entire FY 201-12-13. It is estimated that power available from DVC

for FY 2012-13 will be 82 MUs. The rate for power purchase from DVC is

projected at Rs 4.01 per kWh for FY 2012-13 which is based on current price of

3.82 per unit and a nominal hike of 5% considering future coal price

increases. The same is also in line with CERC Escalation Rates for coal prices for

bid evaluations issued recently. The power purchase cost works out to 3,288

Lacs.

5.5.7 Renewable Sources - The Hon’ble Commission has issued (Renewable Purchase

Obligation and its Compliance), Regulations 2010 which is applicable till March

2013. However as discussed earlier in para 2.4.3, the petitioner had requested

for deferment of RPO by one year which was agreed by Hon’ble Commission



and accordingly the minimum Renewable Purchase Obligation (RPO) applicable

to petitioner is given below:

Table 48: RPO for JUSCO

Year Minimum Quantum of purchase in (%) from renewable

energy sources (in terms of energy in kWh)

Solar Non Solar Total

2011-12 0.25 1.75 2.00

2012-13 0.50 2.50 3.00

2013-14 1.00 3.00 4.00

5.5.8 The petitioner has projected power purchase cost for Renewable sources

considering rates as approved by Hon’ble Commission in previous tariff order.

The details of renewable power purchase cost are given in the table below:

Table 49: Power Purchase from Renewable Sources - FY 2012-13

Renewable Sources RPO (%) RPO ('000 Units)Rate

(Rs/kWh)Rs.Lacs

Solar Sources 0.50% 1,568 14.98 235

Non-Solar Sources 2.50% 7,840 5.00 392

Total 9,408 627

5.5.9 Traders/ Other Sources – It is submitted that due to increase in normal

consumption growth and additional load release, the present energy

availability from Tata Steel, DVC and Renewable would be insufficient to meet

the demand of license area. It is projected that entire shortfall of power will be

made good through open market/ traders/ exchanges etc which is estimated at

27 MUs for FY 2012-13. The prevailing short term market rates as per CERC

Market Monitoring Reports are around 4.50 to 4.75 for peak period and

accordingly rate of 4.25 per unit has been considered for such sources for FY

2012-13. The power purchase cost computes to 1,155 Lacs.

5.5.10 Summary of Power Purchase Cost: The summary of the total power purchase

cost for all sources for FY 2012-13 are computed in the table below:



Table 50: Power Purchase Cost - FY 2012-13

Rs. in Lacs

FY 2011-12 FY 2012-13


Tata Steel Limited (A)

132 KV 5,551 5,946

33 KV - -

6.6 KV 34 37

RPO Purchases (B) 327 627

DVC (C) 2,468 3,288

Others / Traders (D) - 1,155

Total Power Purchase Cost (A+B+C+D) 8,381 11,052

Units Purchased (Thousand Units) 261,593 313,603

Cost (per kWh) 3.20 3.52

Particular

5.5.11 The petitioner requests the Hon’ble Commission to kindly approve 11,052

Lacs for FY 2012-13.

5.6 Operation and Maintenance Expenses

5.6.1 This section provides details of the Operation & Maintenance expenditure for

FY 2011-12 and FY 2012-13. O&M expenses comprise of the three main

expense heads of Employee Costs, Repairs & Maintenance Charges and

Administration & General Expenses.

5.6.2 As already discussed in the introductory chapter, JUSCO is an integrated service

provider, having 8 divisions namely Construction, Water Management, Water

Services, Public Health and Horticulture Services, Integrated Customer Services,

Fleet Management, Hospitality Services and Power Services Division (PSD)

which are further served by several common “back office functions” like HR, IT,

F&A, Procurement, Improvement Initiatives, Corporate Communication, etc.

The Financial Accounting System (FAS) is maintained on SAP platform and

separate cost centres have been created in the FAS through which

identification of directly allocable expenditures has been provided for. In case

of expenditures which are of common nature either across JUSCO or across the

whole Power Service Division, apportionment has been done on logical basis

keeping in view the generally accepted accounting norms or principles which

have already been explained in Introduction Chapter.

5.6.3 It may kindly be appreciated that, these common services if had not been

available to the Licensee operations from the Common Pool of JUSCO, then it



would have cost much higher for the Licensee to establish each of these

functions separately. Therefore, while availing the benefits of these pooled

common services at a relatively lower cost, it would be quite obvious to bear a

suitable portion of the cost incurred by these common functions of JUSCO.

Further, the Licensee’s Project is a part of one of main business segment of

JUSCO, i.e. Power Service Division (PSD) which serves to both Jamshedpur and

Saraikela project operations. Therefore, the common cost of PSD has also been

apportioned equally between Jamshedpur and Saraikela Projects.

5.6.4 JUSCO submits that the Hon’ble Commission has approved principle of

apportionment and the resulting Common Cost of JUSCO under O&M Expenses

in its pervious Tariff Order and the same have been followed for computation

of Common Cost for FY’s 2011-12 and 2012-13.

5.7 Inflation Rate

5.7.1 As explained earlier in para 4.7, the inflation rate of 10.31% has been

considered for projection of employee and other expenses for FY 2012-13.

5.8 Employee Costs

5.8.1 The projected direct employee cost for FY 2012-13 has been estimated at Rs

349.38 Lacs. JUSCO submits that it has planned to recruit additional man power

in FY 2012-13. It is expected that the number of employees will increase from

the existing level of 68 (first half of FY 2011-12) to 85 in the FY 2012-13. JUSCO

submits that the Hon’ble Commission may please consider these expenses for

additional manpower recruitment on proportionate basis of previous year and

permit JUSCO to incur and recover the same through the tariffs.

5.8.2 In addition to the above, certain increase in the employee expenses has also

been assumed to offset the effect of inflation and salary hikes, etc. for the

existing employees. This increase is considered at around 10.31% over the

previous year employee expenses at this stage. It is submitted that, the

increase % may be higher to retain/acquire the desired quality of man power

and the Hon’ble Commission shall allow the entire employee cost on actual

basis. It shall be noted that even at such a low level of operations, JUSCO has

still managed to maintain its employee cost and productivity parameters

comparable/better than other private sector electricity distribution utilities.

5.8.3 We would like to submit to the Hon’ble Commission that rise of Employee

expenditure is purely to meet the growing needs of the business and the



growing customer base mainly in Domestic category and to offset the

inflationary increases in cost.

5.8.4 The allocation of cost for common services for Employee cost i.e. Indirect Costs

are projected at Rs 159.29 Lacs for FY 2012-13 considering inflation rate over

previous year indirect cost of 144.40 Lacs. The table below provides the

employee cost for FY 2011-12 and FY 2012-13.

Table 51: Employee Expenses - FY 2012-13

FY 2011-12 FY 2012-13


Salaries & Allowances

Salary (Basic) 109.54 125.51

Special Allowance 40.20 46.06

Wages Other Charges 56.72 64.99

House Rent Allowance 11.85 13.58

Conveyance Allowance 10.22 11.71

Reimb.- Chauffeur 3.80 4.36

Leave Travel Assistance 5.87 6.72

Leave Salary 14.97 17.16

Superannuation Fund 16.23 18.59

Contribution to Provident fund 13.63 15.61

Gratuity 12.23 14.02

Medical Expenses 1.07 1.22

Other, if any (Employee benefit AS-15) 8.59 9.84

Employee Costs (Direct) 304.93 349.38

Common Cost of JUSCO 144.40 159.29

Total Employee Cost 449.33 508.67

Particular

5.8.5 Accordingly, the petitioner requests the Hon’ble Commission to kindly allow

the amount of 508.67 Lacs for the aforesaid period against employee

expenses.

5.9 Repair and Maintenance Expenses

5.9.1 It is submitted that petitioner has to undertake repair of existing/

strengthening by providing new earthen pits of all the earthings including 132

kV, 33 kV substations, OT etc. In line with the Commission’s methodology,

JUSCO has considered 1.92% of R&M expenses as % of opening GFA.

Accordingly, this % is applied on opening GFA of FY 2011-12 for projecting R&M

expenses for FY 2012-13 which work out to 189.67 Lacs. It is submitted that

per unit R&M cost is same as in case of previous year at 0.06 per kWh.



5.9.2 Therefore, JUSCO requests the Hon’ble Commission to kindly approve 189.67

Lacs as R&M expenses for FY 2012-13.

5.10 Administration & General Expenses

5.10.1 In line with the methodology & assumptions discussed in previous chapter of

FY 2011-12, the A&G Expenses for FY 2012-13 are projected considering an

inflation rate of 10.31% over previous year amount of 300.87 Lacs of FY

2011-12 for direct as well as common costs excluding surcharge on electricity

duty which is abolished. The table below provides the A&G expenses for FY

2012-13:

Table 52: A & G Expenses - FY 2012-13

FY 2011-12 FY 2012-13


A&G Costs (Direct) 202.68 211.33

Common Cost of JUSCO 98.19 108.32

GROSS A&G COST 300.87 319.65

Less: A&G Expenses capitalised - -

NET A&G COST 300.87 319.65

Particular

5.10.2 The Hon’ble Commission is requested to kindly approve the expenses of

319.65 Lacs towards A&G for FY 2012-13.

5.10.3 Summary of O&M Expenses: The total provisional O&M Expenses for FY 2011-

12 and projected O&M Expenses for FY 2012-13 for JUSCO are being

summarised in the table below.

Table 53: Summary O & M Expenses - FY 2012-13

FY 2011-12 FY 2012-13



Employee Cost 305 349

R&M Expenses 151 190

A&G Expenses 203 211

Total (A) 659 750


Employee Cost 144 159

A&G Expenses 98 108

Total (B) 243 268

Total O&M Expenses (A+B) 901 1,018

Particular

5.10.4 Accordingly, JUSCO submits to the Hon’ble Commission to approve the O&M

costs amounting 1,018 Lacs for FY 2012-13.



5.11 Capital Expenditure Schemes

5.11.1 Capital Expenditure would be the key aspect of the expansion plan JUSCO. The

table below depicts the provisional capital expenditure incurred in FY 2011-12

towards the originally submitted capital scheme and it also summarises the

Phasing out of the Ongoing and New Capital Expenditure Schemes in FY 2012-

13.

Chapter 5 ARR of FY 2013 Page 5-64 Nov 2011


Table 54: Capital Expenditure and Capitalization for FY 2012-13

FY 2011-12

(Prov)

FY 2012-13 FY 2013-14

Ongoing Schemes (A)

1 132kV Line from DVC Chandil Substation 1,000 1,000 3,333 386 2,100 429 Major changes in scope. 3.5km overhead line is not possible due ROW issue, to be taken

through 132KV underground cable.

2 33 kV Overhead Line from Gamhari to Seraikela 325 325 325 95.00 207.84 - Progressing very slow due to major ROW issue from land owner.

3 11kV Overhead line for secondary distribution 135 135 135 48 77 - Details as per annexure-A

4 11/.433 V Distribution Transformers 168 168 168 86 59 Details as per annexure-A

5 Land for substations in various blocks of Seraikela-Kharsawan* 100 100 100 50 43 Details as per annexure-A

6 33/11kV substation at Seraikela 247 247 247 - 100 131 Engineering activity & BOM with specification is made ready. Material procurement &

erection to be taken up once 33KV line to seraikela is nearing completion.

7 LDC for distribution system in Seraikela-Kharasawan 400 100 70 6 Completed . Capitalisation in FY11-12

8 Vehicle for Testing Equipment/Staff movement 5 5 5 - Completed

9 Mobile Transformer on Van with trolley and switchgears 10 10 10 10 Finalisation of vendor is in progress.

10 56 MVA Power Transformer 370 370 Completed in FY 2009-10

11 33kV Feeder from TGS to Phase#7 alongwith terminal equipment 205 205 271 243 Delayed due to ROW from PWD for Tata-Kandra road.

12 New 33kV feeder in Large Sector Area. 150 150 150 130 19 Material received. Erection in progress

13 132kV Bay at Chandil with provision of 132/33kV Substation 490 490 490 - 190 300 Scheme have not started due to non availability of land. To be taken up during FY12-13.

14 Low Tension Lines in Adityapur & Gamharia Area. 100 100 100 10 90 In progress

15 High Tension Line in Adityapur & Gamharia Area. 400 400 400 90 176 134 In progress

16 33/11kV Substation in Adityapur Area for AIADA Phase 4 &6 430 430 430 - 344 86 Not started . To be taken up during FY12-13.

17 Augmentation of Transformation Capacity at 132kV/33kV Substation at TGS. 850 850 850 - 595 255 Not started . To be taken up during FY12-13.

18 GIS for New Connection/ power distribution management. 60 60 60 - - 60 To be completed in 12 months

19 Office and storage space in AIADA Phase#2 and Phase#7 substation. 80 80 80 40 40 Civil work has been started.

20 Video Surveillance System at 4 nos. of substation. 3.5 3.5 4 4 Completed

Total - old Schemes (A) 5,529 5,229 7,228 1,197 4,040 1,395

21 Fire Fighting system for 132/33 KV TGS substation 100 - 75 25 To be completed in 12 months from scheme approval.

22 Emergency restoration system in case of failure 132KV Transmission tower 250 - 125 125 To be completed in 12 months from scheme approval.

Total - New Schemes (B) 350 - 200 150

Gross Scheme Cost (A+B) 7,578 1,197 4,240 1,545

Remarks

New Schemes

Original

Scheme Cost

Scheme Cost

submitted

FY2011-12

Revised

Scheme Cost

FY2012-13

Phasing OutSl.

No.

Particulars

5.11.2 Accordingly, JUSCO submits to the Hon’ble Commission to approve the capital expenditure of 4,240 Lacs for FY 2012-13 and the

resultant capitalisation.



5.12 Capital Work in Progress and Gross Fixed Assets

5.12.1 Based on the progress of the schemes an amount of 2,410 Lacs is projected

to be capitalised during FY 2012-13. The petitioner has not considered any IDC

in this financial year and requests Hon’ble Commission to allow petitioner to

claim IDC at the time of performance review or as may be directed by Hon’ble

Commission. The Capital WIP and the Capitalisation of expenditure i.e.

additions to GFA projected for FY 2012-13 is summarised in the table below

along with provisional figures of FY 2011-12.

Table 55: CWIP, GFA & Depreciation - FY 2012-13

Rs. Lacs

FY 2011-12 FY 2012-13


Opening CWIP 1,100 1,493

Capex during the FY 1,197 4,240

Total CWIP 2,297 5,733

Less: Transferred to GFA 804 2,410

Closing CWIP 1,493 3,323

Opening GFA 9,879 10,683

Transferred from CWIP 804 2,410

Closing GFA 10,683 13,093

Depreciation for the year 644 745

Less: Depreciation on Assets created out of

Consumer Contribution185 211

Net Deprecation 459 534

Particulars

Depreciation



5.13 Depreciation

5.13.1 The computation of depreciation is based on Straight Line Method of

computation as prescribed in the Tariff Regulations issued by the Hon’ble

Commission using the rates as provided in Appendix II to the Tariff Regulations

and as per the methodology discussed in earlier chapter for FY 2011-12.

Accordingly, the provisional Depreciation for FY 2011-12 and projected

Depreciation for FY 2012-13 has been outlined in the table below.

5.13.2 However, the Hon’ble Commission in its Tariff Order had disallowed the

Depreciation Costs proportionate to the Gross Fixed Assets being contributed

by Consumer Contribution. Therefore, JUSCO has reduced the Depreciation

Costs in proportion to the Consumer Contribution estimated to be transferred

to Capital Reserve which is projected at 211 Lacs. The computation of

Depreciation Costs for 2012-13 has been depicted in the table below.



Table 56: Depreciation for FY 2012-13

1 Land Devlopment 0.00% - - -



4 Transformers 7.81% 275 108 383





9 Meters 12.77% 13 5 18








17 Software 9.00% 40 20 60

18 Other Assets - 20 - 20

Total 2,035 745 2,780

Sl.

No.Particulars of Assets

Rate of

Depreciation

Accumulated

Depn as on

01.04.2012

Depreciation

for FY 2012-13

Accumulated

Depn as on

31.03.2013

5.13.3 Accordingly, JUSCO submits to the Hon’ble Commission to approve the net

depreciation of 534 Lacs for FY 2012-13.


The Interest costs have been estimated under the following three heads:

� Interest on Normative Debt;

� Bank Charges; and

� Interest on Security Deposit.

5.14.1 Interest on Long Term Debt

The Tariff Regulation issued by the Hon’ble Commission provides that:

“11.1 Interest on loan capital shall be computed loan-wise on the actual

outstanding loans duly taking into account the schedule of repayment and actual

interest rate.

11.2 Normative Loan will be equal to the loan and amount of equity in excess of

thirty percent (30%) invested into the project provided that the total of actual

loans, equity and the normative loan shall not exceed the cost of the project.”



5.14.2 The entire capital expenditure incurred by JUSCO has been funded through its

own resources i.e. through equity infusion and through consumer

contributions. However, as per the provisions of Regulation 11 of JSERC (Terms

and Conditions for Distribution Tariff Regulations), normative loans shall be

considered equal to the loan (if any) and amount of equity in excess of 30%

invested in the project.

5.14.3 The interest rate for computation of interest on normative loan is taken as per

SBI BPLR of 14.75% prevailing as on date. The interest on normative loan for

the FY 2012-13 works out to 810 Lacs for average normative loan balance of

5,493 Lacs.

5.14.4 Bank Charges – The bank charges have been considered at 18 lacs

considering quantum of 20 MVA for FY 2012-13 i.e. 1.50 Lacs per month.

5.14.5 Interest on Security Deposit - The Interest on security deposit is claimed as per

the provisions of JSERC Supply Code Regulations 2005 and projected at 180

Lacs for FY 2012-13 for average security deposit amount of 3,023 Lacs.

5.14.6 The table below summarise total interest and finance charges for FY 2012-13

Table 57: Interest & Finance Charges for FY 2012-13

FY 2011-12 FY 2012-13


Opening Balance 4,124 5,032

Add: Deemed Additions 1,367 1,456

Less: Deemed Repayments 459 534

Closing Balance 5,032 5,954


Interest Rate 13.25% 14.75%

Interest on Normative Loan (A) 607 810

Other/Bank Charges(B) 9 18

Interest on Security Deposit (C) 146 180

Total Interest and Finance Charges (A+B+C) 761 1,008

Particulars

5.14.7 The Hon’ble Commission is requested to approve the total interest and finance

charges of 1,008 Lacs for FY 2012-13.



5.15 Reasonable Return on Equity

5.15.1 As per JSERC (Terms and Condition for Determination of Distribution Tariff)

Regulations, 2010 issued by the Hon’ble Commission, a return @ 15.5% (post

tax) on the equity base is considered and in line with methodology adopted in

previous tariff order.

5.15.2 The normative equity is estimated considering the CWIP capitalised during the

FY, the Debt: Equity norm of 70:30 and RoE at 15.5% for FY 2012-13. The base

considered for the opening balances of Gross Fixed Asset less Consumer

Contribution and 30% of the same is taken as equity base for return

computation. The return on equity is also computed and charged

proportionately on the assets capitalised during the year.

Table 58: Return on Equity - FY 2011-12

FY 2011-12 FY 2012-13


Opening Balance 2,213 3,029

Add: Deemed Additions 816 714

Closing Balance 3,029 3,743


Rate of Return 15.50% 15.50%

ROE grossed up with tax rate 22.94% 22.94%

Return on Equity 601 777

Particulars

5.15.3 JUSCO submits to the Hon’ble Commission to kindly approve ROE of 777 Lacs

as presented in the above table for FY 2012-13.

5.16 Demand Side Management (DSM) and CGRF Expenses

5.16.1 JUSCO in the chapter of FY 2011-12 has discussed about initiatives being taken

for DSM and CGRF activities and accordingly requests Hon’ble Commission to

approve same amount of 46 Lacs for FY 2012-13.

5.16.2 It is submitted to Hon’ble Commission that the expenditure to be incurred for

DSM and CGRF activities may be approved on a provisionally basis and the

petitioner shall provide the details of the same in the subsequent filing under

Annual Performance Review of FY 2012-13.

5.17 Non Tariff Filing

5.17.1 Non-Tariff Income includes Meter Rent, Delayed Payment Surcharge and

Supervision Charges among others. JUSCO has provisionally estimated its Non-

Tariff Income for FY 2012-13 at 25.72 Lacs similar to the level of FY 2011-12.



5.18 Revenue from Sale of Power at Existing Tariff

5.18.1 Based on the projected sales, the revenue from sale of power at existing tariff

for FY 2012-13, computes to 13,828 Lacs.

5.18.2 The computation of revenue for FY 2012-13 has been similar that of FY 2011-12

H2. The consumer category-wise revenue details at existing tariff have been

shown in table below:

Table 59: Revenue from Sale of Power at Existing Tariff - FY 2012-13

Sales Average

Tariff

(000 Units)Fixed

Charges

Energy

Charges

Others

(Rebate/

Surcharges)

Total

Revenue(Rs/kWh)

Domestic (DS)

DS I 120 - 132 - 132 1.10

DS II 115 22 200 1 223 1.94

DS III 1,239 63 2,354 3 2,420 1.95

DSHT 7,171 3,496 11,833 4 15,334 2.14

Non-Domestic (NDS) -

NDS I -

NDS II 2,394 2,539 9,457 6 12,002 5.01

Low Tension (LTIS) -

LTIS 6,013 5,317 21,046 965 27,327 4.54

High Tension (HTS) -

HTS 11 kV 127,012 74,634 552,504 (3,215) 623,923 4.91

HTS 33 kV 138,040 43,051 600,475 (21,376) 622,149 4.51

High Tension Special (HTSS) -

HTSS 11 kV 7,802 5,702 19,506 (415) 24,793 3.18

HTSS 33 kV 12,839 24,057 32,098 (1,635) 54,520 4.25

Total 302,747 158,881 1,249,604 (25,662) 1,382,823 4.57

Cosnumer Category

Revenue from Sale of Power (Rs. in Thousand)

5.18.3 The petitioner, JUSCO submits to the Hon’ble Commission to kindly approve

the revenue of 13,828 Lacs for FY 2012-13 at existing tariffs.

5.19 Summary of ARR

5.19.1 Based on the above discussions, the table below summarizes JUSCO’s

provisional Aggregate Revenue Requirement for the FY 2011-12 and projected

Aggregate Revenue Requirement for the FY 2012-13 at Rs 11,124 Lacs and Rs

14,409 Lacs respectively.



Table 60: Summary of ARR - FY 2012-13

FY 2011-12 FY 2012-13


Costs

Power Purchase Cost 8,381 11,052

O&M Expenses 901 1,018

Employee Costs 449 509

R&M Expenses 151 190

A&G Expenses 301 320

Depreciation 459 534

DSM & CGRF Expenses 46 46

Interest & Finance Charges 761 1,008

Income Tax -

Total Expenses 10,548 13,658

Add: Reasonable Return 601 777

Less: Non-Tariff Income 26 26

Aggregate Revenue Requirement 11,124 14,409

Revenue at Existing Tariff 12,017 13,828

Revenue Gap/ (Surplus) (893) 581

Sales in Thousand Units 255,952 302,627

Cost of Supply (Rs per kWh) 4.35 4.76

Particulars

5.19.2 The average cost of supply is computed as Rs 4.35 per kWh and Rs 4.76 per

kWh for FY 2011-12 and FY 2012-13 respectively. The increase in Cost of Supply

of FY 2012-13 over FY 2011-12 is due to increase in power purchase cost from

DVC and other inflationary increases under O&M expenses.

5.20 Revenue Gap\Surplus

5.20.1 Accordingly, JUSCO submits to the Hon’ble Commission to consider the

revenue gap / (surplus) for FY 2012-13 along with previous year’s gap/

(surplus). The net revenue gap/ (surplus) computes to (353) Lacs.

Table 61: Revenue Gap / (Surplus) - FY 2012-13

Rs. Lacs

FY 2012-13

Projected

Annual Revenue Requirement for FY 2012-13 14,409

Revenue from Sale of Power at Existing Tariff 13,828

Pure Gap for the Financial Year 581

Add: Past Recoveries and other gaps till FY 2011-12 (934)

Cummulative Revenue Gap/ (Surplus) (353)

Particulars

Proposed Tariff Schedule Page 6-71 Nov 2011


Chapter 6. Proposed Tariff Schedule

6.1 New/Proposed Consumer Category: Temporary Power Connections/Supply

Petitioner submits that every year it receives applications for temporary supply

i.e. during festivals/public/domestic functions etc. Petitioner requests the

Commission to kindly approve a tariff at the rate of Rs. 5 per kWh including fixed

charges for such temporary power supply. The tariff should be at higher side in

order to ensure that the temporary supply is not misused and is demanded by

customers for permanent nature of supply.

6.2 Domestic Service (DS)

Applicability

Domestic Service–I, Domestic Service–II, Domestic Service–III and Domestic

Service HT

This schedule shall apply to private residential premises for domestic use for

household electric appliances such as Radios, Fans, Televisions, Desert Coolers,

Air Conditioner, etc. and including Motors pumps for lifting water up to 1 BHP for

domestic purposes and other household electrical appliances not covered under

any other schedule.

This rate is also applicable for supply to religious institutions such as Temples,

Gurudwaras, Mosques, Church and Burial/Crematorium grounds and other

recognised charitable institutions, where no rental or fees are charged

whatsoever. If any fee or rentals are charged, such institution will be charged

under Non domestic category.

Category of Services:

a) Domestic Service – DS-1(a): - For Kutir Jyoti Connections metered only for

connected load up to 100 Watt for Rural Areas.

b) Domestic Service – DS-I (b): - For rural areas not covered by area indicated

under DS-II and for connected load not exceeding 2 KW.

c) Domestic Service – (DS-II): - For Urban areas covered by notified Area

Committee / Municipality / Municipal Corporation / All District Town / All

sub-divisional Town / All Block Headquarters / Industrial Area / contiguous



sub-urban area all market places urban or rural and for connected load not

exceeding 4KW.

d) Domestic Service – (DS – III):-For Urban areas covered by notified Area

Committee / Municipality / Municipal Corporation / All District Town / All

sub-divisional Town / All Block Headquarters / Industrial Area / contiguous

sub-urban area all market places urban or rural and for connected load

exceeding 4KW. Rural Drinking Water supply managed by panchayats’ users

associations etc. will also be covered in this category.

e) Domestic service – HT (DS–HT) (Optional): - This Schedule shall apply for

Domestic Connection in Housing Colonies / Housing Complexes/ Houses of

multi storied buildings purely for residential use for single point metered

supply, with power supply at 11KV voltage level and load upto 75 KW.

Service Character:

a) For DS-I (a): AC, 50 Cycles, Single phase at 230 volts for Kutir Jyoti connection for

load upto 100 W

b) For DS-I (b): AC, 50 Cycles, Single Phase at 230 Volts for load below 2 KW.

c) For DS-II: AC, 50 Cycles, Single Phase at 230 Volts for installed load up to 4 KW.

d) For DS-III: AC, 50 Cycles, three phase at 400 Volts for installed load exceeding 4

KW.

e) For DS-HT: AC, 50 Cycles, at 11 KV Volts for installed load up to 75 KW.

Table 62: Tariff for Different Domestic Categories

Existing Proposed Unit Existing Proposed

DS-1(a), Kutir Jyoti

Connections,Metered Nil Nil Rs./kWh 1.1 1.10

DS-1(a), Kutir Jyoti

Connections,Unmetered

Rs. 30 per Connection

per Month


per Month Rs./kWh Nil Nil

DS-1(b), other rural domestic

consumers,metered Nil Nil Rs./kWh 1.1 1.10

DS-1(b), other rural domestic

consumers,unmetered


per Month


per Month Rs./kWh Nil Nil


per Month


per Month

Rs./kWh

(0-200 Units)1.5 1.50


per Month


per Month

Rs./kWh

(Above 200 Units)1.9 1.90

DS - III Rs. 50 per Connection

per Month


per Month Rs./kWh 1.9 1.90

DS HT Rs. 40 per kVA per

Month

Rs. 40 per kVA per

Month Rs./kWh 1.65 1.65

Consumer Category

Fixed Charge / Demand Charge Energy Charge (Rs./Unit)

DS - II <200

>200

Delayed Payment Surcharge



For Domestic Service category, the delayed payment surcharge will be at the rate

of 1.5% per month and part thereof. The due date for making payment of energy

bills or other charges shall be fifteen days from the date of serving of bill.

6.3 Non-Domestic Service (NDS)

Applicability

This schedule shall apply to all consumers, using electrical energy for light, fan

and power loads for non-domestic purposes like shops, hospitals (govt. or

private), nursing homes, clinics, dispensaries, restaurants, hotels, clubs, guest

houses, marriage houses, public halls, show rooms, workshops, central air-

conditioning units, offices (govt. or private), commercial establishments,

cinemas, X – ray plants, schools and colleges (govt. or private), boarding / lodging

houses, libraries (govt. or private), research institutes (govt. or private), railway

stations, fuel – oil stations, service stations (including vehicle service stations), All

India Radio / T.V. installations, printing presses, commercial trusts / societies,

Museums, poultry farms, banks, theatres, common facilities in multi-storied

commercial office/buildings, Dharmshala, and such other installations not

covered under any other tariff schedule.

Service Category:

a) Non-Domestic Service (NDS) – I, Rural. For Rural Area not covered by area

indicated for NDS – II and for connected load not exceeding 2 KW.

b) Non-Domestic Service (NDS) – II, Urban. For Urban Areas covered by Notified

Areas Committee / Municipality / Municipal Corporation / All District Town /

All Sub-divisional Town / All Block Hqrs. / Industrial Area and Contiguous Sub-

urban area, market place rural or urban and for connected load up to 75KW.

This schedule shall also apply to commercial consumer of rural area having

connected load above 2 kW.

Service Character:

a) NDS–I: - AC 50 Cycles, Single phase at 230 Volts for loads up to 2 kW.

b) NDS–II: - AC 50 Cycles, Single phase at 230 Volts or Three Phase at 400 Volts

for load exceeding 2 kW and up to 4 kW.

Table 63: Tariff for NDS Category




NDS - I, <=2kW

metered Nil Nil Rs./kWh 1.35 1.35

NDS - I, unmetered

Rs. 120 per kW per month or part

thereof for connected load up to 1 kW,

Rs. 60 per kW per month for each

additional 1 kW or part thereof

Rs. 120 per kW per month or

part thereof for connected load up

to 1 kW, Rs. 60 per kW per

month for each additional 1 kW or

part thereof

Rs./kWh - -

NDS - II Rs. 110 per kW per month or part

thereof

Rs. 110 per kW per month or

part thereof Rs./kWh 3.95 3.95

Consumer CategoryFixed Charge Energy Charge (Rs./Unit)


For Non Domestic Category, the Delayed Payment Surcharge will at the rate of

1.5% per month and part thereof. The due date for making payment of energy


6.4 LOW TENSION INDUSTRIAL SERVICES (LTIS)

Applicability:

This schedule shall apply to all industrial units applying for a load of less than or

equal to 100 KVA (or equivalent in terms of HP or KW).

The equivalent HP for 100 KVA shall be 114 HP and the equivalent KW for 100

KVA shall be 85.044 KW.

Service Character:

LTIS – AC, 50 Cycles, Single Phase supply at 230 Volts or 3 Phase Supply at 400

volts for use of electricity energy Demand Based tariff upto 100 KVA and under

Installation based tariff for sanctioned load upto equivalent HP of 100 KVA.

Table 64: Tariff for LTIS Category


LTIS(Demand) Rs.

75/HP/Month

Rs.

75/HP/Month Rs./kWh 3.50 3.50

LTIS(Installation)

Rs.

165/KVA/Mon

th

Rs.

165/KVA/Mon

th

Rs./kWh 3.50 3.50

Consumer CategoryFixed Charge Energy Charge (Rs./Unit)

Installation Based Tariff: All consumers under this category and opting for

Installation based tariff shall be required to pay fixed charges per HP as per the

applicable tariff rates for this category. If the inspecting officer during the

inspection of a premises finds excess load (more than 114 HP) then the

inspecting officer has to serve one month notice to the consumer for

regularisation of excess load (above 114 HP). After the expiry of the said one



month, the inspecting officer will inspect the premises again and if he still finds

unregularized load in the premises, action may be taken as per law.

Demand Based Tariff: All consumers under this category and opting for Demand

Based tariff shall be required to pay Demand charges per KVA at the rate

applicable to HT consumers drawing power at 11 KV. The restriction of

connected load will not apply to consumers opting for Demand Based Tariff.

The billing demand shall be the maximum demand recorded during the month or

75% of contract demand whichever is higher. In case higher actual demand is

recorded for three continuous months, the same shall be considered as the basis

for new contract demand of future months provided consumer gets into a new

Agreement for the revised contracted demand after payment of necessary

charges as applicable.


For Low tension industrial and medium power category, the Delayed Payment

Surcharge will at the rate of 1.5% per month and part thereof. The due date for

making payment of energy bills or other charges shall be fifteen days from the

date of serving of bill.

Power Factor Penalty

Power Factor Penalty will be applicable in case of maximum demand meters.

In case average power factor in a month for a consumer falls below 0.85, a

penalty @ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for

every 0.1 fall below 0.60 to 0.30 (up to and including 0.30) shall be levied on

demand and energy charges.

Power Factor Rebate

Power factor rebate will be applicable in case of maximum demand meters.

In case average power factor as maintained by the consumer is more than 85%, a

rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand

and energy charges shall be applicable.

6.5 Irrigation and Agriculture Service (IAS)

Applicability

This schedule shall apply to all consumers for use of electrical energy for

Agriculture purposes including tube wells and processing of the agricultural



produce, confined to Chaff-Cutter, Thresher, Cane crusher and Rice-Hauler, when

operated by the agriculturist in the field or farm and does not include Rice mills,

Flour mills, Oil mills, Dal mills, Rice-Hauler or expellers.

Service Category

a. IAS – I –For private tube wells and private lift irrigation schemes.

b. IAS – II – State Tube-wells & State lift Irrigation Pumps.

Service Character

AC 50 Cycles, Single Phase at 230 volts / 3 Phase at 400 volts.

Table 65: Tariff for IAS Cagtegory


IAS - I (Metered) Nil Nil Rs./kWh 0.50 0.50

IAS - I (Unmetered) Rs.

50/HP/month

Rs.

50/HP/month Rs./kWh Nil Nil

IAS - II (Metered) Nil Nil Rs./kWh 0.75 0.75

IAS - II (Unmetered) Rs.

200/HP/month

Rs.

200/HP/month Rs./kWh Nil Nil

Consumer CategoryFixed Charge Energe Charge (Rs./Unit)


For Irrigation and Agriculture service category, the Delayed Payment Surcharge

will at the rate of 1.5% per month and part thereof. The due date for making

payment of energy bills or other charges shall be fifteen days from the date of

serving of bill.





demand and energy charges.

Power Factor Rebate






6.6 High Tension Voltage Supply Service (HTS)

Applicability

The schedule shall apply for consumers having contract demand above 100 KVA.

Service Character

50 Cycles, 3 Phase at 6.6 KV/11 KV/33 KV or 132 KV

Table 66: Tariff for HTS Category


HTS - 11 kV

Rs. 165

per kVA

per Month

Rs. 165

per kVA

per Month

Rs./kWh 4.35 4.35

HTS - 33 kV

Rs. 165

per kVA

per Month

Rs. 165

per kVA

per Month

Rs./kWh 4.35 4.35

HTS - 132 kV

Rs. 165

per kVA

per Month

Rs. 165

per kVA

per Month

Rs./kWh 4.35 4.35

Consumer

Category

Demand Charge Energe Charge (Rs./Unit)


75% of the contract demand, whichever is higher. In case higher actual demand

is recorded for three continuous months, the same shall be considered as the

basis for new contract demand of future months provided consumer gets into a

new Agreement for the revised contracted demand after payment of necessary

charges as applicable.

The penalty on exceeding contract demand shall be 1.5 times the normal charges

for actual demand exceeding 110% of the contracted demand both on energy

commensurate to exceeded demand and exceeded demand;. For the purpose of

calculating the penal charges exceed demand shall be the difference of the actual

demand and Contract Demand.

Voltage Rebate

Voltage rebate to the HT consumers will be applicable as given below:

Existing Proposed

HTS - 33 kV 3.00% 3.00%

HTS - 132 kV 5.00% 5.00%

HTS - 220 kV 5.50% 5.50%

HTS - 440 kV 6.00% 6.00%

Consumer

Category

Voltage Rebate



Note: The above rebate will be applicable only on monthly basis and consumer

with arrears shall not be eligible for the above rate. However, the applicable

rebates shall be allowed to consumers with outstanding dues, wherein such dues

have been stayed by the appropriate authority/Courts.

Load Factor Rebate

Load Factor Rebate to the HT Consumers is proposed as given below:

Existing Proposed

40 - 60% Nil Nil

60 - 70% 7.50% 7.50%

70 -100% 10.00% 10.00%

Load FactorLoad Factor Rebate


with arrears shall not be eligible for the above rate. However, the applicable

rebates shall be allowed to consumers with outstanding dues, wherein such dues

have been stayed by the appropriate authority/Courts.


For High tension service category, the Delayed Payment Surcharge will be

charged on a weekly basis at the rate of 0.4% per week. The due date for making


serving of bill.





demand and energy charges. For calculating the power factor rebate or Penalty

only first two digits of the Power factor calculated ( KWhr / KVAH ) shall be

considered (without rounding off the same.)

Power Factor Rebate




TOD Tariff for HTS Consumers

TOD tariff proposed for HTS Consumers is given below-



Off Peak Hours: 00: 00 Hrs to 08:00 Hrs and 20:00 Hrs to 24:00 Hrs. 85% of

normal rate of energy charge.

Peak Hours: 08:00 Hours to 20:00 Hours.: 120% of normal rate of energy charge

6.7 HT Special Service (HTSS)

Applicability

This tariff schedule shall apply to all consumers who have a contracted demand

of 300 KVA and more for induction/arc furnace. In case of induction/arc furnace

consumers, the contract demand shall be based on the total capacity of the

induction/arc furnace and the equipment as per manufacturer technical

specification and not on the basis of measurement. This tariff schedule will not

apply to casting units having induction furnace of melting capacity of 500 Kg or

below.






charges as applicable..






Table 67: Tariff for HTSS Category


HTSS - 11 kV Rs. 330 per

kVA per Month

Rs. 330 per

kVA per

Month

Rs./kW 2.50 2.50


kVA per Month

Rs. 330 per

kVA per

Month

Rs./kW 2.50 2.50


kVA per Month

Rs. 330 per

kVA per

Month

Rs./kW 2.50 2.50

Consumer CategoryDemand Charge Energe Charge

Voltage Rebate

Voltage rebate to the HTSS consumers will be applicable as given below:



Existing* Proposed

HTS - 33 kV 3.00% 3.00%

HTS - 132 kV 5.00% 5.00%

HTS - 220 kV 5.50% 5.50%

HTS - 440 kV 6.00% 6.00%

Consumer CategoryVoltage Rebate


with arrears shall not be eligible for the above rate.

Load Factor Rebate

Load Factor Rebate to the HTSS Consumers is proposed as given below:

Existing Proposed

40 - 60% Nil Nil

60 - 70% 7.50% 7.50%

70 -100% 10.00% 10.00%

Load FactorLoad Factor Rebate


with arrears shall not be eligible for the above rate.


For High tension special service category, the Delayed Payment Surcharge will be

charged on a weekly basis at the rate of 0.4% per week. The due date for making


serving of bill.





demand and energy charges. For calculating the power factor rebate or Penalty

only first two digits of the Power factor calculated ( KWhr / KVAH ) shall be

considered (without rounding off the same.)

Power Factor Rebate






6.8 Street Light Service (SS)

Applicability

This tariff schedule shall apply for use of Street Lighting System, including single

system in corporation, municipality, notified area committee, panchayats etc and

are also in areas not covered by municipalities and notified area committee

provided the lamps served from a point of supply is not less than 5.

Service Character

AC, 50 Cycles, single phase at 230 Volts or three phase at 400 Volts

Category of Service

a) SS–I: - Metered Street Light Service.

b) SS–II: - Unmetered Street Light Service.

Table 68: Tariff for Street Light Service


SS-I (Metered) Rs 25/connection/month Rs Rs./kWh 3.50 3.50

SS-II (Unmetered)

Rs. 110/100 watt lamp in

addition Rs. 25 would be

charged for each addition 50

watt lamp.

Rs. 110/100 watt lamp

in addition Rs. 25 would

be charged for each

addition 50 watt lamp.

Rs./kWh Nil Nil

Energe ChargeConsumer Category

Fixed Charge


For Street Light service category, the Delayed Payment Surcharge will at the rate

of 1.5% per month and part thereof. The due date for making payment of energy


6.9 Rural Electric Co-operative (REC)/Small Housing Group (SHG)

Applicability

This tariff schedule shall apply for use in Electric Cooperatives (licensee) for

supply at 11 kV or 400 Volts. It also includes village panchayats where domestic

and non domestic rural tariff is not applicable.

Service Character

AC, 50 Cycles, three phase at 11kV or 400 Volts.



Table 69: Tariff for Rural Electric Co-operative/SHG

Existing Proposed Unit Existing Proposed Existing Proposed

REC/SHG Nil Nil Rs./kWh 0.70 0.70 Nil Nil

Consumer

Category

Fixed Charge Energe Charge Minimum Monthly


For Rural Electric Cooperative service category, the Delayed Payment Surcharge

will be charged at the rate of 1.5% per month and part thereof. The due date for

making payment of energy bills or other charges shall be fifteen days from the

date of serving of bill.

6.10 Bulk Supply to Military Engineering Service (MES)

Applicability

This tariff schedule shall apply to Military Engineering Services (MES) for a mixed

load in defence cantonment and related area.

Table 70: Tariff for Military Engineering Service


Bulk Supply to MES Rs. 160 per kVA

per Month

Rs. 160 per

kVA per

Month

Rs./kWh 3.00 3.00 Nil Nil

Consumer CategoryFixed Charge Energe Charge Minimum Monthly


For Military Engineering service category, the Delayed Payment Surcharge will at

the rate of 1.5% per month and part thereof. The due date for making payment

of energy bills or other charges shall be fifteen days from the date of serving of

bill.

6.11 Urban Micro Distribution Franchisees (UMDF)

Applicability

This tariff schedule shall apply to power supply to distribution transformer based

Urban Micro Distribution Franchisees for distribution of power in predominantly

domestic and predominantly commercial areas.

Service Character

230 Volt/ 400 Volt AC, 50 Cycles and load up to 1000 KVA



Table 71: Tariff Schedule of Urban Micro Franchisee


DT based Urban Micro

Franchisee -

Predominantly

Domestic

NA

Rs 30 per

kVA per

month

Rs./kW NA 1.90 NA NA

DT based Urban Micro

Franchisee -

Predominantly

Commercial

NA

Rs 100 per

kVA per

month

Rs./kW NA 3.75 NA NA

Minimum Monthly Consumer Category

Fixed Charge Energe Charge (Rs./Unit)

Additional Clauses applicable across all tariff categories

1. Statutory Levy

Electricity Duty and any other duty shall be levied as per the Electricity Duty Act,

1948 (amended upto date) and other prevailing regulations as made applicable

from time to time.

2. Billing Maximum Demand for HT Consumers






charges as applicable..






3. Industry Non Sunday off Scheme

To encourage off Sunday scheme a rebate of 4% instead of 1.5% is being

proposed and also penalty imposed at 8% instead of 2.5% for non use of the

same under the Non Sunday Off Scheme.

4. Dishonoured Cheque

In the event of dishonored cheque for payment against a particular bill, the

Licensee shall charge a minimum of 300 Rs or 0.5% of the billed amount,

whichever is higher. The DPS shall be levied extra as per the applicable terms and

conditions of DPS for the respective category.



5. Conversion factors

The following shall be the conversion factors, as and where applicable :

(PF=0.85):

1 Kilowatt (KW) = 1.176 Kilovolt ampere (kVA)

1 Kilowatt (KW) = 1 / 0.746 Horse Power (HP)

1 Horse Power (1 HP) = 0.878 Kilovolt ampere (KVA)

6. Miscellaneous Charges

Attached as Annexure H

Chapter 7: Compliance to Directives Nov 2011 Page 7-85


Chapter 7. Compliance to Directives

7.1 Sales Estimates and Projections

Post approval of the terms of reference by the honorable Commission in its directive

named as “Sales estimates and projection” in the Tariff order of the year 2011-12,

dated: 27-Aug-2011, JUSCO has floated enquiries to market analysis consultants for

taking up the work. Enquiries were given to the following eight parties on 28-th and 29-

th of sep. 2011, out of which quotations were received from first six parties(in the box

below) only between different dates from 1-sep. to 12-th sep. 2011.Last two parties

decided not to quote.

Sr. No. Name of the Company

1. Business Analyst Group , Kolkata

2. Array Consultancy Services, Kolkata

3. Flow Consultants pvt. Ltd., Kolkata

4. DKB & Associates, Kolkata

5. TNS India

6. Market Insight Consultants, Delhi

7. Exellentia Globle Consultants, Kolkata

8. R. S. Market Research solutions, Delhi

7.1.1 M/S, Flow consultants was the lowest bidder (offer received on 01-10-2011) and

therefore was selected for this work. Sanction request is to place order on the

above party is being processed and order placement is expected by the end of

oct-2011.It is expected that the detailed study will be completed within 6-8

months of the placing of the order.

7.1.2 JUSCO has also communicated the same vide Letter No. PBD/342/59/11 dated:

01-11-2011.

7.2 Cost Estimates and Projections

7.2.1 The expenditures incurred by the common services of JUSCO and its basis has

been elaborated in section 2.3 and section 3.4.2 . It is submitted that JUSCO has

been diligently maintaining records for actual costs which are directly allocable

to Power Business. It is respectfully submitted to Hon’ble Commission that apart

from its Power Business services, JUSCO manages other businesses also and it

cannot be compared with any other utility which has power distribution services

as main business and the incurred expenditure gets allocated to main business

only. JUSCO has other businesses also and to optimise/ reduce burden on



consumers, these resources are shared by Power Business Division rather than

hiring/ procuring separately for it which ultimately avoids duplication of costs.

7.2.2 It is further submitted that there are examples from utilities in the country which

have generation, transmission & distribution business under a single entity. For.

Eg Tata Power Company Limited, Reliance Infrastructure Limited, Torrent Power

etc and costs for common office expenditure as well as central services like

HR/IR, Administration, Accounts, Quality Improvement, Procurement etc. and

other senior resources are being allowed by Commission on allocation basis.

7.2.3 Similarly, JUSCO in its petitions has been providing the information for Common

cost allocation. It is humbly submitted that Hon’ble Commission may kindly

accept the justifications indiacted in the above sections and also in section 2.3

and 3.4.2 .

7.2.4 JSERC (Distribution License Conditions) regulations, 2005 also provides for

reasonable allocation of Joint and common costs between licensed business and

other businesses of licensee.

“16.3 The Distribution Licensee shall in respect of the licensed business and other

business:

(a) Keep such Allocation Statement as would be required, so that the

revenues, costs, assets, liabilities, reserves and provisions for, reasonably

attributable to the licensed business are separately identifiable in the

books of the distribution licensee.

(b) Adopt a fair and transparent cost allocation mechanism for the

reasonable allocation of Joint and common costs between the licensed

business and the other business.

JUSCO would like to submit that the cost for common services of JUSCO for

Seraikela-Kharasawan distribution business has been taken in line with the above

provisions of the regulations.

7.3 Distribution Loss Estimation

7.3.1 JUSCO wants to submit that the reports are prepared each quarter and are sent

regularly to the Hon’ble Commission along with the notes, as done in last

quarter.



7.4 Cost of Supply Study

7.4.1 The petitioner submits that it intends to carry out the study based on the inputs

from Hon’ble Commission on the Cost of Service Report submitted by M/s.Tata

Steel Limited. This will also ensure that approach and methodology for JUSCO is

in line with Commission’s approval to the extent possible and applicable for the

licence area business.

The petitioner However submits that the attempt to conduct the study by its

own resources did not materialised due to the engagement of manpower in day

to day operations and also due to shortage of experts on the subject. JUSCO is

trying to find out and engage expert agencies to undertake such study. It is

expected that the same may take another 2 to 3 months to engage the agency

and further 4 to 5 months to submit the report.

7.5 Load Factor of High Tension Service Category

7.5.1 The petitioner submits that it has complied the directive vide Letter No.

PBD/329/59/11 & PBD/335/59/11.

7.6 Expansion of Services

7.6.1 The Petitioner would like to communicate that it has submitted its plan for

expansion of services vide Letter No. PBD/341/59/11 dated: 31-10-2011 and

same may be considered by Hon’ble Commission. The same is also annexed

herewith the petition.

7.7 Expenditure on Capital Works

7.7.1 The petitioner submits that Cost Benefit Analysis study for the scheme wise

capital expenditure is in process and will be submitted in due course.

7.8 Details about Repair and Maintenance

7.8.1 The petitioner submits that it has submitted the report vide Letter No.

PBD/348/59/11 dated 02.11.2011. Copy Annexed with the petition.



7.9 Data Adequacy in Petition

7.9.1 The petitioner wants to submit that it has ensured to submit the petition within

the regulatory timeframe and also made concerted efforts to provide required

data/ information in the petition.

7.10 Separate Accounts

7.10.1 The petitioner humbly submits that direct costs are being recorded separately

and separate accounts are maintained for power business to the extent possible

and identifiable. However the costs incurred by common service ( refer Table1)

of JUSCO for Seraikela Power Distribution is arrived based on the principles

explained in section 2.3 and section 3.4.2 .The petitioner requests the Hon’ble

Commission to kindly accept the same based on the explanations given in section

3.4.2

7.11 Loss Estimation Study

7.11.1 The petitioner submits that it has been regularly complying with the

Commission’s directive on Energy Audit Reports and submitting on quarterly

basis. The petitioner submits to Hon’ble Commission that its losses are one of the

lowest in the country.

7.11.2 The loss levels reported by JUSCO are based on actual meter reading of the

Consumer and the source end and therefore it may not be necessary to conduct

the loss level estimation for the existing network. However, JUSCO would like to

place before the Hon’ble Commission that it has engaged the PRDC ( Power

Research Development Consultants) for conducting the load flow and short

circuit analysis of its network. The result of the study will also throw the

theoretical loss level that should be there in such a system. PRDC is one of the

best Consultants in the country on the subject and they also own the most

popular Mi-Power software for network analysis.

7.11.3 The impact of subsequent JUSCOs network growth can also be modelled in the

same study and result can be viewed.

7.11.4 Order on PRDC has been placed and it is expected that they will require another

8 to 10 months to plan and conduct the study.

7.11.5 JUSCO will communicate the progress of the same to the Hon’ble commission in

due course.

7.12 Service Area

7.12.1 The Petitioner submits that the expansion plan for its licensed area along with

the time schedules is complied vide Letter No. PBD/341/59/11 dated: 31-10-

2011.



7.12.2 The Petitioner submits that the status of consumer applications pending and the

reasons thereof is complied vide Letter No. PBD/343/59/11 dated: 01-11-2011.

7.13 Status of CGRF & DSM Initiatives

7.13.1 The Petitioner submits that status report of implementation of CGRF and DSM

initiatives is in process and will be submitted to Hon’ble Commission in due

course.

7.14 Adjustment of Bills & payments/Receipts as per Revised Power Sale Rate of TSL

determined in Tariff Order dated 27th

August 2011

7.14.1 The petitioner submits that the adjustment of bill and payment, receipt as per

revised power sale rate of Tata Steel Limited has been reconciled and the

supplementary bills are raised.

7.15 Data Adequacy in Petition for FY 2012-13

7.15.1 The petitioner submits that it has ensured to submit the present petition within

the regulatory timeframe and also made concerted efforts to provide required

data/ information in the petition.

Annexure A Nov 2011 Page 7-90


Annexure A: Letter from TSL to Commission for Fuel Surcharge Approval

Annexure B Nov 2011 Page 7-91


Annexure B : Entry Tax Gazetted Notification

Annexure C Nov 2011 Page 7-92


Annexure C: Agreement with DVC for Bank Charges on Letter of Credit

Annexure D Nov 2011 Page 7-93


Annexure D: Details of Addition of Expected Consumers in FY 2011-12

Sr. No. Consumer Category Unit March 2011Upto Sep

2011

Connection

Under

Progress

Application in hand ( not

yet deposited inst

charges)

Applications not

responding

Total Consumers

Expected upto March

2012A Domestic (DS)

1 DS I Nos

2 DS II Nos 13 15 20 5 5 35

3 DS III Nos 72 79 4 19 15 87

4 DSHT Nos 9 11 4 4 1 18


5 NDS I Nos

6 NDS II Nos 99 117 22 24 8 155


7 LTIS Nos 51 56 9 24 12 77


8 IAS Nos


9 HTS 11 kV Nos 105 106 12 32 18 132

10 HTS 33 kV Nos 13 13 1 4 3 15


11 HTSS 11 kV Nos 2 2 0 1 1 2

12 HTSS 33 kV Nos 1 1 0 1 0 2

Total 365 400 72 114 63 523

Annexure D Nov 2011 Page 7-94


Details of Addition in Expected Load in FY 2011-12

Sr. No. Consumer Category Unit March 2011Upto Sep

2011

Connection

Under

Progress

Application in hand ( not

yet deposited inst

charges)

Applications not

responding

Total Consumers

Expected upto March

2012A Domestic (DS)

1 DS I kW - -

2 DS II kW 44 53 21 14 14 74

3 DS III kW 804 851 111 131 95 998

4 DSHT kVA 1,229 1,979 2,047 1,230 400 4,856


5 NDS I kW -

6 NDS II kW 1,006 1,166 207 153 113 1,413


7 LTIS HP 3,168 3,427 602 619 232 4,416


8 IAS HP -


9 HTS 11 kV kVA 27,972 29,908 2,502 6,360 4,000 34,770

10 HTS 33 kV kVA 43,726 40,666 1,667 7,900 7,600 42,633


11 HTSS 11 kV kVA 1,350 1,600 - 200 200 1,600

12 HTSS 33 kV kVA 1,500 2,500 2,000 - 4,500

-

Total 80,799 82,150 7,157 18,607 12,654 95,260

Annexure E Nov 2011 Page 7-95


Annexure E: Power Purchase Bills for FY 2010-11 and FY 2011-12 H1

Annexure F Nov 2011 Page 7-96


Annexure F : Debit/Credit Notes Raised by Tata Steel and DVC

Annexure G Nov 2011 Page 7-97


Annexure G : Annual Audited Accounts for FY 2011-12

Annexure H Nov 2011 Page 7-98


Annexure H: Miscellaneous Charges Schedule

Number of

ConsumersConsumption

Contract

demand /

Connected

Load

Fixed Charge Energy Charge Minimum

Charge

Revenue from

Fixed Charge

Revenue from

Energy Charge

Revenue from

Minimum

Charge

Rebate Other Charges Total RevenueShare in total

revenue

Average

revenue

Nos Units KW/BHP/KVA

Rs/KW

Rs/KVA

Rs/BHP

Rs/Month/

connection

Rs/KWH

Rs/KVAH

Rs/month/

connection

Rs/KW/

month

Rs/BHP/

month

Rs/KVA/

month

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)% age Rs/KWH

1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-

12+13)15 16

1 Domestic

DS-I (a), Kutir Jyoti (Unmetered)

DS-I (b), <= 2 KW

DS-II, < = 4 KW -Total 13 56,493 44 - 3.80 91.45 - 0.37 95.62 0.01% 1.69

0-200 39,545 25.00 1.50 20.00

201 & Above 16,948 30.00 1.90 20.00

DS- III, Above 4 KW 72 7,68,490 804 50.00 1.90 40.00 35.37 1,376.24 - (4.93) 1,406.68 0.15% 1.83

DS HT 9 30,64,823 1,229 40.00 1.65 30.00 634.09 4,830.85 - 0.64 5,465.58 0.56% 1.78

Domestic - Total 94 38,89,805 - 673.25 6,298.55 (3.92) 6,967.89 0.72% 1.79

0.00%

2 Non Domestic 0.00%

NDS-I,<= 2 KW - 0.00%

NDS-I unmetered - - - 0.00%

NDS-II, >2 KW to 4 KW 99 12,05,551 1,006 110.00 3.95 100.00 1,083.13 4,564.94 - 4.01 5,652.08 0.58% 4.69

Non Domestic - Total 99 12,05,551 1,083.13 4,564.94 4.01 5,652.08 0.58% 4.69

0.00%

3 Low Tension 0.00%

LTIS-I 51 36,84,129 3,168 75.00 3.50 60.00 2,459.54 12,894.21 (112.02) 783.80 16,025.52 1.66% 4.35

PWW LT

Low Tension - Total 51 36,84,129 - 2,459.54 12,894.21 (112.02) 783.80 16,025.52 1.66% 4.35

0.00%

4 Irrigation & Agricultural 0.00%

IAS- I 0.00%

IAS - I Unmetered 0.00%

IAS- II 0.00%

Agriculture - IAS - II (Unmetered) 0.00%

Irrigation & Agricultural - Total 0.00%

0.00%

5 High Tension Service 0.00%

HTS 0.00%

11 KV 105 8,71,74,823 27,972 165.00 4.35 250.00 45,265.13 3,67,435.33 377.70 (5,437.00) 4,670.83 4,12,311.99 42.60% 4.73

33 KV 13 10,44,86,580 43,726 165.00 4.35 250.00 65,735.34 4,39,663.81 1,465.07 (23,077.75) 3,958.01 4,87,744.46 50.40% 4.67

132 KV 0.00%

Sub Total - HTS 118 19,16,61,403 1,11,000.46 8,07,099.14 1,842.76 (28,514.75) 8,628.84 9,00,056.45 93.00% 4.70

0.00%

6 HT Special S 0.00%

11 KV 2 56,44,180 1,350 330.00 2.50 250.00 5,534.75 14,043.60 (258.56) 148.15 19,467.94 2.01% 3.45

33 KV 1 59,48,125 1,500 330.00 2.50 250.00 6,177.28 14,451.70 (772.86) (226.52) 19,629.60 2.03% 3.30

132 KV

Sub Total - HT Special S 3 1,15,92,305 11,712.03 28,495.30 (1,031.42) (78.37) 39,097.54 4.04% 3.37

High Tension - Total

7 Traction

RTS

RTS - Total

8 Street Light Service

SS-I

SS - II

Street Light Service - Total

9 MES

Total - Within State 365 21,20,33,193 - - 1,26,928.41 8,59,352.13 1,842.76 (29,658.20) 9,334.37 9,67,799.48 100.00% 4.56

Revenue from Tariff FY 2010-11

Sl. Consumer Category

Number of


Contract

demand /

Connected

Load

Fixed

Charge

Energy

Charge Minimum Charge

Revenue from

Fixed Charge

Revenue from

Energy Charge

Revenue from

Minimum

Charge


revenue

Average

revenue


Rs/KW

Rs/KVA

Rs/BHP

Rs/Month/

connection

Rs/KWH

Rs/KVAH

Rs/month/

connection

Rs/KW/ month

Rs/BHP/ month

Rs/KVA/ month

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand


1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-

12+13)15 16

1 Domestic


DS-I (b), <= 2 KW

DS-II, < = 4 KW -Total 15 36,005 53 - - 2.47 63.02 - 0.28 65.77 0.01% 1.83 0-200 36,005 53 25.00 1.50 2.47 63.02 65.49 0.01% 1.82 201 & Above - - 30.00 1.90 - - - 0.00% -

DS- III, Above 4 KW 79 5,06,965 851 50.00 1.90 23.10 963.23 - 1.32 987.66 0.17% 1.95 DS HT 11 17,55,240 1,979 40.00 1.65 503.70 2,896.15 - 1.10 3,400.95 0.58% 1.94 Domestic - Total 105 22,98,209 2,883 529.27 3,922.40 2.70 4,454.37 0.76% 1.94

0.00%

2 Non Domestic 0.00%NDS-I,<= 2 KW 0.00%NDS-I unmetered 0.00%NDS-II, >2 KW to 75 KW 117 8,61,518 1,166 110.00 3.95 738.65 3,410.89 - 2.01 4,151.55 0.71% 4.82 Non Domestic - Total 117 8,61,518 1,166 738.65 3,410.89 2.01 4,151.55 0.71% 4.82

0.00%

3 Low Tension 0.00%LTIS-I 56 21,71,579 3,427 75.00 3.50 1,568.87 7,600.51 (59.16) 409.52 9,519.74 1.62% 4.38 PWW LT 0.00%Low Tension - Total 56 21,71,579 3,427 1,568.87 7,600.51 (59.16) 409.52 9,519.74 1.62% 4.38

0.00%

4 Irrigation & Agricultural 0.00%IAS- I 0.00%IAS - I Unmetered 0.00%IAS- II 0.00%Agriculture - IAS - II (Unmetered) 0.00%Irrigation & Agricultural - Total - 0.00%

0.00%

5 High Tension Service 0.00%

HTS 0.00%11 KV 106 5,13,06,265 29,908 165.00 4.35 27,391.74 2,23,102.56 (3,365.95) 2,094.36 2,49,222.72 42.49% 4.86 33 KV 13 6,05,96,424 40,666 165.00 4.35 39,041.27 2,63,594.45 (11,493.53) 2,053.43 2,93,195.61 49.99% 4.84 132 KV 0.00%Sub Total - HTS 119 11,19,02,690 70,574 66,433.01 4,86,697.01 (14,859.48) 4,147.80 5,42,418.33 92.47% 4.85

0.00%

6 HT Special S 0.00%11 KV 2 39,05,220 1,600 330 2.50 3,216.55 9,763.05 (213.68) - 12,765.93 2.18% 3.27 33 KV 1 35,70,270 2,500 330 2.50 4,757.21 8,925.68 (401.87) (24.05) 13,256.96 2.26% 3.71 132 KV 0.00%Sub Total - HT Special S 3 74,75,490 4,100 7,973.76 18,688.73 (615.55) (24.05) 26,022.88 4.44% 3.48 High Tension - Total

7 Traction

RTS

RTS - Total


SS-I

SS - II


9 MES

Total - Within State 400 12,47,09,486 82,150 77,243.56 5,20,319.54 (15,534.19) 4,537.98 5,86,566.88 100.00% 4.70

Revenue from Tariff FY 2011-12 (H1)


Number of


Contract

demand /

Connected

Load

Fixed ChargeEnergy


Revenue from

Fixed Charge

Revenue from

Energy Charge

Revenue from

Minimum ChargeRebate Other Charges Total Revenue

Share in

total

revenue

Average

revenue

Nos UnitsKW/BHP/KV

A

Rs/KW

Rs/KVA

Rs/BHP

Rs/Month/

connection

Rs/KWH

Rs/KVAH

Rs/month/

connection

Rs/KW/ month

Rs/BHP/ month

Rs/KVA/ month

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand


1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-

12+13)15 16

1Domestic


DS-I (b), <= 2 KW

DS-II, < = 4 KW -Total 35 43,108 74 5.88 75.01 - 0.33 81.22 0.01% 1.88 0-200 14 17,243 30 25 1.50 2.10 25.86 27.96 0.00% 1.62 201 & Above 21 25,865 44 30 1.90 3.78 49.14 52.92 0.01% 2.05

DS- III, Above 4 KW 87 5,50,374 998 50 1.90 26.10 1,045.71 - 1.44 1,073.25 0.17% 1.95 DS HT 18 30,29,018 4,856 40 1.65 1,165.44 4,997.88 - 1.90 6,165.22 1.00% 2.04 Domestic - Total 140 36,22,500 5,928 1,197.42 6,118.60 3.67 7,319.35 1.19% 2.02

0

2 Non Domestic 0NDS-I,<= 2 KW 0.00%NDS-I unmetered 0NDS-II, >2 KW to 75 KW 155 8,98,500 1,413 110 3.95 932.58 3,549.08 - 2.10 4,483.75 0.73% 4.99 Non Domestic - Total 155 8,98,500 1,413 932.58 3,549.08 2.10 4,483.75 0.73% 4.99

0

3 Low Tension 0LTIS-I 77 23,26,656 4,416 75 3.50 1,987.24 8,143.29 (65.36) 438.77 10,503.94 1.71% 4.51 PWW LT 0Low Tension - Total 77 23,26,656 4,416 1,987.24 8,143.29 (65.36) 438.77 10,503.94 1.71% 4.51

0

4 Irrigation & Agricultural 0IAS- I 0IAS - I Unmetered 0IAS- II 0.00%Agriculture - IAS - II (Unmetered) 0Irrigation & Agricultural - Total 0.00%

0

5 High Tension Service 0HTS 0

0PWW 11 KV 0PWW 33 KV 011 KV 132 5,42,10,159 34,770 165 4.35 30,980.07 2,35,814.19 (3,584.98) 2,212.90 2,65,422.19 43.15% 4.90 33 KV 15 6,12,87,204 42,633 165 4.35 37,986.00 2,66,599.34 (11,567.58) 2,076.84 2,95,094.60 47.98% 4.81 132 KV 0Sub Total - HTS 147 11,54,97,363 77,403 68,966.07 5,02,413.53 (15,152.55) 4,289.74 5,60,516.79 91.13% 4.85

0

6 HT Special S 011 KV 2 39,02,547 1,600 330 2.50 2,851.20 9,756.37 (207.55) - 12,400.01 2.02% 3.18 33 KV 2 49,94,957 4,500 330 2.50 8,019.00 12,487.39 (602.28) (33.65) 19,870.46 3.23% 3.98 132 KV 0Sub Total - HT Special S 4 88,97,504 6,100 10,870.20 22,243.76 (809.83) (33.65) 32,270.48 5.25% 3.63 High Tension - Total

7 Traction

RTS

RTS - Total


SS-I

SS - II


9 MES

Total - Within State 523 13,12,42,523 95,260 83,953.51 5,42,468.26 (16,027.75) 4,700.62 6,15,094.32 100.00% 4.69

Revenue from Tariff FY 2011-12 (H2)


Number of


Contract

demand /

Connected

Load

Fixed

Charge

Energy


Revenue from

Fixed Charge

Revenue from

Energy Charge

Revenue from

Minimum

Charge


revenue

Average

revenue


Rs/KW

Rs/KVA

Rs/BHP

Rs/Month/

connection

Rs/KWH

Rs/KVAH

Rs/month/

connection

Rs/KW/ month

Rs/BHP/ month

Rs/KVA/ month

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand


1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-

12+13)15 16

1 Domestic

DS-I (a), Kutir Jyoti (Unmetered) - - - 0 0 0 0 0 0

DS-I (b), <= 2 KW - - - 0 0.00 0 0 0 0 0 0

DS-II, < = 4 KW -Total 35 79,113 74 0 0 8.35 138.03 - - 0.60 146.98 0.01% 1.86

0-200 14 53,248 83 25 1.50 4.57 88.89 - - - 93.46 0.01% 1.76

201 & Above 21 25,865 44 30 1.90 3.78 49.14 - - - 52.92 0.00% 2.05

DS- III, Above 4 KW 87 10,57,338 998 50 1.90 49.20 2,008.94 - - 2.76 2,060.90 0.17% 1.95

DS HT 18 47,84,258 4,856 40 1.65 1,669.14 7,894.03 - - 3.00 9,566.16 0.80% 2.00

Domestic - Total 140 59,20,710 5,928 0 0 1,726.69 10,041.00 - - 6.36 11,773.72 0.98% 1.99

- - - 0 0 - - - - - -

2 Non Domestic - - - 0 0 - - - - - -

NDS-I,<= 2 KW - - - 0 0.00 - - - - - -

NDS-I unmetered - - - 0 0.00 - - - - - -

NDS-II, >2 KW to 75 KW 155 17,60,018 1,413 110 3.95 1,671.23 6,959.97 - - 4.11 8,635.31 0.72% 4.91

Non Domestic - Total 155 17,60,018 1,413 0 0 1,671.23 6,959.97 - - 4.11 8,635.31 0.72% 4.91

- - - 0 0 - - - - - -

3 Low Tension - - - 0 0 - - - - - -

LTIS-I 77 44,98,235 4,416 75 3.50 3,556.11 15,743.81 - (124.52) 848.29 20,023.68 1.67% 4.45

PWW LT - - - 0 0.00 - - - - - -

Low Tension - Total 77 44,98,235 4,416 0 0 3,556.11 15,743.81 - (124.52) 848.29 20,023.68 1.67% 4.45

- - - 0 0 - - - - - -

4 Irrigation & Agricultural - - - 0 0 - - - - - -

IAS- I - - - 0 0.00 - - - - - -

IAS - I Unmetered - - - 0 0.00 - - - - - -

IAS- II - - - 0 0.00 - - - - - -

Agriculture - IAS - II (Unmetered) - - - 0 0.00 - - - - - -

Irrigation & Agricultural - Total - - - 0 0 - - - - - -

- - - 0 0 - - - - - -

5 High Tension Service - - - 0 0 - - - - - -

HTS - - - 0 0 - - - - - -

Railway 11 KV -

PWW 11 KV -

PWW 33 KV -

11 KV 132 10,55,16,425 34,770 165 4.35 58,371.81 4,58,916.76 - (6,950.93) 4,307.27 5,14,644.91 42.83% 4.88

33 KV 15 12,18,83,628 42,633 165 4.35 77,027.27 5,30,193.78 - (23,061.11) 4,130.27 5,88,290.22 48.96% 4.83

132 KV - - - 0 0.00 - - - - - -

Sub Total - HTS 147 22,74,00,053 77,403 0 0 1,35,399.08 9,89,110.54 - (30,012.04) 8,437.54 11,02,935.13 91.78% 4.85

- - - 0 0 - - - - - -

6 HT Special S - - - 0 0 - - - - - -

11 KV 2 78,07,767 1,600 330 2.50 6,067.75 19,519.42 - (421.23) - 25,165.94 2.09% 3.22

33 KV 2 85,65,227 4,500 330 2.50 12,776.21 21,413.07 - (1,004.15) (57.70) 33,127.42 2.76% 3.87

132 KV - - - 0 0.00 - - - - - -

Sub Total - HT Special S 4 1,63,72,994 6,100 0 0 18,843.96 40,932.48 - (1,425.38) (57.70) 58,293.36 4.85% 3.56

High Tension - Total - - - 0 0 - - - - - -

- - - 0 0 - - - - - -

7 Traction - - - 0 0 - - - - - -

RTS - - - 0 0.00 - - - - - -

RTS - Total - - - 0 0 - - - - - -

- - - 0 0 - - - - - -

8 Street Light Service - - - 0 0 - - - - - -

SS-I - - - 0 0.00 - - - - - -

SS - II - - - 0 0.00 - - - - - -

Street Light Service - Total - - - 0 0 - - - - - -

- - - 0 0 - - - - - -

9 MES - - - 0 0.00 - - - - - -

Total - Within State 523 25,59,52,009 95,260 0 0 1,61,197.07 10,62,787.80 - (31,561.94) 9,238.60 12,01,661 100.00% 4.69

Revenue from Tariff FY 2011-12


Number of


Contract

demand /

Connected

Load

Fixed

Charge

Energy

Charge

Minimum

Charge

Revenue from

Fixed Charge

Revenue from

Energy Charge

Revenue from

Minimum

Charge


revenue

Average

revenue


Rs/KW

Rs/KVA

Rs/BHP

Rs/Month/

connection

Rs/KWH

Rs/KVAH

Rs/month/

connection

Rs/KW/

month

Rs/BHP/

month

Rs/KVA/

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand

(Yearly)

Rs. Thousand


1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-

12+13)15 16

1 Domestic


DS-I (b), <= 2 KW 100 1,20,000 100 0 1.10 - 132.00 132.00 0.01% 1.10 DS-II, < = 4 KW -Total 65 1,14,956 108 0 22.00 200.02 - 0.88 222.90 0.02% 1.94

0-200 26 45,983 25 1.50 7.86 68.97 0.35 77.18 0.01% 1.68 201 & Above 39 68,974 30 1.90 14.14 131.05 0.53 145.72 0.01% 2.11

DS- III, Above 4 KW 105 12,38,789 1,170 50 1.90 62.86 2,353.70 - 3.24 2,419.79 0.17% 1.95 DS HT 23 71,71,476 7,284 40 1.65 3,496.32 11,832.93 - 4.49 15,333.75 1.11% 2.14 Domestic - Total 194 86,45,221 8,562 0 3,581 14,519 8.61 18,108 1.31% 2.09

0

2 Non Domestic 0NDS-I,<= 2 KW 0.00 NDS-I unmetered 0.00 NDS-II, >2 KW to 75 KW 238 23,94,256 1,924 110 3.95 2,539.02 9,457.31 - 5.59 12,001.92 0.87% 5.01 Non Domestic - Total 238 23,94,256 1,924 0 2,539.02 9,457.31 5.59 12,001.92 0.87% 5.01

0

3 Low Tension 0LTIS-I 118 60,13,001 5,907 75 3.50 5,316.51 21,045.50 (168.92) 1,133.95 27,327.05 1.98% 4.54 PWW LT 0 0.00 Low Tension - Total 118 60,13,001 5,907 0 0 5,316.51 21,045.50 (168.92) 1,133.95 27,327.05 1.98% 4.54

0 0

4 Irrigation & Agricultural 0 0IAS- I 0 0.00 IAS - I Unmetered 0 0.00 IAS- II 0 0.00 Agriculture - IAS - II (Unmetered) 0 0.00 Irrigation & Agricultural - Total 0 0

0 0

5 High Tension Service 0 0HTS 0 0Railway 11 KV - - 0 0 - - - PWW 11 KV 0 0.00 PWW 33 KV 0 0.00 11 KV 166 12,70,12,335 41,882 165 4.35 74,633.81 5,52,503.66 (8,399.47) 5,184.75 6,23,922.74 45.12% 4.91 33 KV 18 13,80,40,231 48,317 165 4.35 43,050.80 6,00,475.00 (26,054.23) 4,677.77 6,22,149.35 44.99% 4.51 132 KV 0 0.00 Sub Total - HTS 184 26,50,52,566 0 0 1,17,684.61 11,52,978.66 (34,453.69) 9,862.52 12,46,072.09 90.11% 4.70

0 0

6 HT Special S 0 011 KV 3 78,02,423 1,600 330 2.50 5,702.40 19,506.06 (414.97) - 24,793.49 1.79% 3.18 33 KV 3 1,28,39,046 6,750 330 2.50 24,057.00 32,097.62 (1,548.10) (86.49) 54,520.02 3.94% 4.25 132 KV 0 0.00 Sub Total - HT Special S 6 2,06,41,469 0 0 29,759.40 51,603.67 (1,963.07) (86.49) 79,313.52 5.74% 3.84 High Tension - Total 28,56,94,034.81 0 0 13,25,385.61

0 0

7 Traction 0 0RTS 0 0.00 RTS - Total 0 0

0 0

8 Street Light Service 0 0SS-I 0 0.00 SS - II 0 0.00 Street Light Service - Total 0 0

0 0

9 MES 0 0.00

0 0

Total - Within State 738 30,27,46,512 0 0 158881 1249604 (36,585.68) 10924 1382823 100.00% 4.57

Revenue from Tariff FY 2012-13 (Existing)


Rs. Lacs Rs. Lacs Rs. Lacs

1 Meter Rent 6.68 7.31 7.31

2 Delayed Payment Surcharge 4.43 14.53 14.53

3 Miscellaneous Charges 7.17 2.39 2.39

4 Supervision Charges 1.99 1.49 1.49

TOTAL 20.27 25.72 25.72

Jamshedpur Utilities & Services Company Ltd.

Revenue from Non - Tariff Income

ParticularSl.FY 2010-11

(Actual)

FY 2011-12

(Provisional)

FY 2012-13

(Projected)

ARR Formats - ARR and Tariff Petition FY 2011-12

FY 2010-11 FY 2011-12 FY 2012-13

Actual Provisional Projected

Energy Sales

LT Supply 8,779 12,179 17,052

HT Supply - 2,43,773 2,85,694

Total Energy Sales 8,779 2,55,952 3,02,747

Overall Distribution Losses % 1.65% 2.16% 3.50%

Overall Distribution Losses 4 6 11

Total Energy Requirement 2,15,587 2,61,593 3,13,727

Power Purchase

Open Access/Others/Traders 6,272 - -

DVC 3,385 65,073 81,906

RPO - 5,232 9,408

Solar - 654 1,568

Non-Solar - 4,578 7,840

- From Tata Steel Ltd (A) 2,05,930 1,91,289 1,95,114

132 kV 1,71,405 1,90,116 1,93,918

33 kV 33,139 - -

6.6 kV 1,386 1,173 1,196 - - -

Total Energy Availability (A+B) 2,15,587 2,61,593 3,13,603

ENERGY Availability

ENERGY REQUIREMENT

Particulars

Energy Balance (000' Units)



FY 2010-11 FY 2011-12 FY 2012-13

Actual Provisional Projected

Salaries & AllowancesSalary (Basic) 83.10 109.54 125.51

Special Allowance 30.50 40.20 46.06

Wages Other Charges 43.03 56.72 64.99

House Rent Allowance 8.99 11.85 13.58

Conveyance Allowance 7.75 10.22 11.71

Reimb.- Chauffeur 2.89 3.80 4.36

Leave Travel Assistance 4.45 5.87 6.72

Leave Salary 11.36 14.97 17.16

Superannuation Fund 12.31 16.23 18.59

Contribution to Provident fund 10.34 13.63 15.61

Contribution to TEPS 0.00 0.00 0.00

Gratuity 9.28 12.23 14.02

Medical Expenses 0.81 1.07 1.22

Other, if any (Employee benefit AS-15) 6.51 8.59 9.84

Employee Costs (Direct) 231.32 304.93 349.38

Common Cost of JUSCO 130.90 144.40 159.29

Gross Employee Cost 362.22 449.33 508.67

Less: Expenses Capitalised 0.00 0.00 0.00

Net Employee Cost 362.22 449.33 508.67



Employee Cost (Rs in Lacs)

Particulars

FY 2010-11 FY 2011-12 FY 2012-13

Actual Provisional ProjectedPlant & Machinery 117.74 8.63 177.17

Civil Works 5.15 82.07 7.75

Office Equipment 3.15 60.56 4.74

Total R&M Costs 126.05 151.26 189.67



R&M Expenses (Rs in Lacs)

Particulars

FY 2010-11 FY 2011-12 FY 2012-13

Actual Provisional ProjectedLegal & Regulatory Charges 21.89 24.15 26.64

Consultancy Charges/ Retainer Fees 31.02 34.22 37.75

Travelling Expenses 15.57 17.18 18.95

Printing & Stationary 0.21 0.23 0.25

Donation 0.15 0.17 0.18

Advertisement 10.94 12.07 13.32

Office Maintenance 0.00 5.51 6.08

Telephone & Mobile Expenses 4.31 4.76 5.25

Fee & Subscription 0.00 0.00 0.00

Insurance Premium 6.96 7.68 8.48

Entertainment 0.00 0.00 0.00

Pvt Security Guards/ Home Guards 11.87 13.09 14.45

Miscellaneous Expenses 2.66 2.93 3.23

Training 0.00 0.00 0.00

0 0.00 0.00 0.00

Vehicle Hire Expenses 1.87 2.06 2.28

Rent, Rates & Taxes 26.84 29.61 32.67

Expenses on CGRF 0.00 0.00 0.00

Surcharge on Electricity Duty 36.49 11.10 0.00

Software Development 34.37 37.91 41.82

Total A&G Costs (Direct) 205.16 202.68 211.33

Common Cost of JUSCO 141.69 98.19 108.32

GROSS A&G COST 346.84 300.87 319.65

Less: A&G Expenses capitalised 0.00 0.00 0.00

NET A&G COST 346.84 300.87 319.65



A&G Expenses (Rs in Lacs)

Particulars

1 Power Purchase Cost 6,356 8,381 11,052

2 Operation & Maintenance Expenses 835 901 1,018

2.1 Employee Cost 362 449 509

2.2 Repairs & Maintenance Expenses 126 151 190

2.3 Administration & General Expenses 347 301 320

3 Depreciation 441 459 534

4 Interest and Finance Charges 599 761 1,008

5 DSM & CGRF Expenses 46 46

6 Income Tax 202 - -

7 Sub Total 8,434 10,548 13,658

8 Add: Reasonable Return 301 601 777

9 Total Expenditure 8,735 11,150 14,435

10 Less: Non Tariff Income 20 26 26

11 Aggregate Revenue Requirement 8,715 11,123.9 14,409

12 Revenue from Sale of Power @ Existing Tariff 9,678 12,017 13,828

13 Sharing of Gains 194 -

14 Revenue Gap / (Surplus) (769) (893) 581

15 Previous Year Gap/(Surplus) 728 (41) (934)

16 Net Revenue Gap/(Surplus) (41) (934) (353)

Power Sale (Mus) 212.03 255.95 302.63

16 Average Cost of Supply 4.11 4.35 4.76

Sr. No. Particulars (Costs in Rupees Lacs)2012-13

(Projected)

FY 2010-11

(Actual)

2011-12 -

Total


(Actual)

2011-12 -

Total

2012-13

(Projected)

Opening Balance 2,093 2,213 3,029

Add: Deemed Additions 119 816 714

Closing Balance 2,213 3,029 3,743

Average Equity Base 2,153 2,621 3,386

Rate of Return 14.00% 15.50% 15.50%

Income Tax Rate 33.22% 32.45% 32.45%

Return on Equity 301 601.3 777


ARR Formats - ARR and Tariff Petition FY 2011-12 ( Rs in lakhs)

Rs in lakhs

Particulars

Approved Audited

Costs

Power Purchase Cost 6,364.0 6,356.4

O&M Expenses 780.2 835.1

Employee Costs 347.6 362.2

R&M Expenses 126.0 126.0

A&G Expenses 306.6 346.8

Depreciation 429.0 441.4

Interest & Finance Charges 608.0 599.0

Income Tax 203.2 202.0

Total Costs 8,384.4 8,434.0

Add: Reasonable Return 297.0 301.4

Less: Non-Tariff Income 20.0 20.3

Annual Revenue Requirement 8,661.4 8,715.1

Add: Sharing of Gains till FY 2010-11 - 194.1

Revenue at Existing Tariff 9,680.0 9,678.0

Past Year Gaps /(Surplus)* 728.0 728.0

Net Revenue Gap/(Surplus) including past year gap292.0 (40.8)

Energy Sales in Million Units 212.0 212.0

Cost of Supply 4.1 4.1

FY 2010-11



Energy Unit

(Million

Units)

Rs in lakhs Rs/Unit

Energy Unit

(Million

Units)

Rs in lakhs Rs/UnitEnergy Unit

(000 Units)Rs in lakhs Rs/Unit

Tata Steel Limited

132 KV 171.40 4,987.88 2.91 190.12 5,551.38 2.92 193.92 5,945.53 3.07

33 KV 33.14 964.35 2.91 - - - -

6.6 KV 1.39 40.33 2.91 1.17 34.24 2.92 1.20 36.67 3.07

RPO Purchases - - 5.23 326.86 6.25 9.41 626.89 6.66

DVC at 33 kV 3.39 119.42 3.53 65.07 2,468.17 3.79 81.91 3,288.17 4.01

Others / Traders 6.27 244.42 3.90 - - 27.17 1,154.91

Total 215.59 6,356.41 2.95 261.59 8,380.65 3.20 313.60 11,052.17 3.52

Particulars

FY 2010-11 FY 2011-12 FY 2012-13



At the

begining

of the year

Addition

During the

year

Deduction

During the

year

At the end

of year

Accumulated

Depn as on

01.04.2009

Depreciation

for FY 2009-10

Accumulated

Depn as on

31.03.2010

At the

begining

of the

year

Addition

During the

year

Deduction

During the

year

At the end

of year

Accumulated

Depn as on

01.04.2010

Depreciation

for FY 2010-

11

Accumulated

Depn as on

31.03.2011

At the

begining of

the year

Addition

During the

year

Deduction

During the

year

At the end

of year

Accumulated

Depn as on

01.04.2010

Depreciation

for FY 2010-

11

Accumulated

Depn as on

31.03.2011

1 Land Devlopment 13.02 24.53 0.81 37.55 - - - 37.55 3.06 - 40.60 - - - 40.60 9.16 - 49.76 - - -

2 Offices & Showroom 537.14 12.77 11.82 549.91 26.12 16.41 42.54 549.91 44.76 - 594.66 42.54 17.28 59.82 594.66 134.15 - 728.82 59.82 19.98 79.81

3 Other Buildings 19.59 - 0.43 19.59 0.44 0.59 1.03 19.59 1.59 - 21.18 1.03 0.62 1.65 21.18 4.78 - 25.96 1.65 0.71 2.36

4 Transformers 774.73 374.53 24.71 1,149.26 106.29 75.13 181.42 1,149.26 93.54 - 1,242.80 181.42 93.41 274.83 1,242.80 280.36 - 1,523.16 274.83 108.01 382.85

5 Switchgear including cable connections 2,515.05 57.28 55.31 2,572.33 295.01 199.43 494.43 2,572.33 209.36 - 2,781.70 494.43 209.88 704.31 2,781.70 627.53 - 3,409.22 704.31 242.68 947.00

6 Underground CABLE 2,564.43 169.47 58.78 2,733.90 155.25 139.61 294.86 2,733.90 222.51 - 2,956.41 294.86 149.94 444.80 2,956.41 666.94 - 3,623.35 444.80 173.38 618.18

7 Overhead Lines < 6.6kv (LT) 104.25 27.44 2.83 131.69 5.68 9.25 14.92 131.69 10.72 - 142.41 14.92 10.75 25.67 142.41 32.13 - 174.54 25.67 12.42 38.09

8 Overhead Lines > 6.6kv 2,086.42 81.92 46.62 2,168.35 160.69 112.11 272.80 2,168.35 176.48 - 2,344.83 272.80 118.92 391.73 2,344.83 528.97 - 2,873.80 391.73 137.51 529.24

9 Meters 32.13 2.59 0.75 34.72 3.75 4.27 8.02 34.72 2.83 - 37.55 8.02 4.61 12.63 37.55 8.47 - 46.02 12.63 5.34 17.97

10 Self propelled vehicles 2.88 5.25 0.17 8.13 2.59 1.84 4.43 8.13 0.66 - 8.80 4.43 2.83 7.26 8.80 1.98 - 10.78 7.26 3.27 10.53

11 Air conditionar (Portable) 6.94 0.15 0.15 7.09 1.68 2.34 4.02 7.09 0.58 - 7.67 4.02 2.46 6.49 7.67 1.73 - 9.40 6.49 2.85 9.34

12 Office furniture & fittings 10.19 2.76 0.28 12.95 1.61 1.48 3.09 12.95 1.05 - 14.01 3.09 1.72 4.81 14.01 3.16 - 17.17 4.81 1.99 6.80

13 Office Equipments 73.04 2.97 1.63 76.01 10.18 9.52 19.70 76.01 6.19 - 82.20 19.70 10.10 29.80 82.20 18.54 - 100.74 29.80 11.68 41.48

14 Street Light fittings 0.35 0.01 0.01 0.36 0.06 0.05 0.11 0.36 0.03 - 0.39 0.11 0.05 0.16 0.39 0.09 - 0.48 0.16 0.06 0.21

15 Communication System 1.27 5.09 0.14 6.36 0.15 0.49 0.64 6.36 0.52 - 6.88 0.64 0.85 1.48 6.88 1.55 - 8.43 1.48 0.98 2.46

16 Data Processing Machine 21.64 1.12 0.49 22.77 3.81 2.84 6.65 22.77 1.85 - 24.62 6.65 3.03 9.67 24.62 5.55 - 30.17 9.67 3.50 13.17

17 Software 154.62 33.64 4.05 188.25 6.77 15.43 22.20 188.25 15.32 - 203.58 22.20 17.63 39.83 203.58 45.93 - 249.50 39.83 20.39 60.22

18 Other Assets 155.29 3.74 3.42 159.02 19.94 0.48 20.42 159.02 12.94 - 171.97 20.42 - 20.42 171.97 38.79 - 210.76 20.42 - 20.42

Total 9,072.99 805.26 212.40 9,878.25 800.03 591.26 1,391.29 9,878.25 804.00 - 10,682.25 1,391.29 644.07 2,035.36 10,682.25 2,409.82 - 13,092.07 2,035.36 744.75 2,780.11

Sr. No Particulars

FY 2010-11 FY 2011-12 FY 2012-13

Gross Fixed Assets Depreciation Gross Fixed Assets Depreciation Gross Fixed Assets Depreciation


ARR Formats - ARR and Tariff Petition FY 2011-12 ( Rs in lakhs)

Rs in Lakhs

Balance at

the

beginning

of the

year

Additions

during the

Year

Transfer

to Capital

Reserve

Balance at

the end of

the Year

Additions

during the

Year

Transfer

to Capital

Reserve

Balance at

the end of

the Year

Additions

during the

Year

Transfer

to Capital

Reserve

Balance at

the end of

the Year

1Consumer Contribution towards Cost

of Capital asset280.02 518.71 663.71 135.02 570.58 586.32 119.28 627.64 615.64 131.28

Sr

NoParticulars

2010-11 2011-12 2012-13

Actual

Working

Strength at

the End of

Year

Actual

Working

Strength at

the End of

H1 of FY

Expected

Working

Strength at

the End of

Year

Expected

Working

Strength at

the End of

Year

Direct/ Full Time Employees

1 Chief/DGM 3 3 3 3

2 Senior Manager 5 6 6 8

3 Manager 12 12 12 16

4 Deputy Manager 9 8 12 16

5 Others 17 27 27 30

6 Sub Total 46 56 60 73

-

In-direct/ Part Time Employees/Outsourced* -

-

1 Other 7 12 12 12

2 Total 53 68 72 85

* Others Outsourced is not included in wages

FY 2012-13

Sl.No Particulars

FY 2010-11 FY 2011-12

Rs. Lacs

FY 2011-12

(Prov)

FY 2012-13 FY 2013-14

Ongoing Schemes (A)

1 132kV Line from DVC Chandil Substation 1,000 1,000 3,333 386 2,100 429 Major changes in scope. 3.5km overhead line is not possible due ROW issue, to be taken

through 132KV underground cable.

2 33 kV Overhead Line from Gamhari to Seraikela 325 325 325 95.00 207.84 - Progressing very slow due to major ROW issue from land owner.

3 11kV Overhead line for secondary distribution 135 135 135 48 77 - Details as per annexure-A

4 11/.433 V Distribution Transformers 168 168 168 86 59 Details as per annexure-A

5 Land for substations in various blocks of Seraikela-Kharsawan* 100 100 100 50 43 Details as per annexure-A

6 33/11kV substation at Seraikela 247 247 247 - 100 131 Engineering activity & BOM with specification is made ready. Material procurement &

erection to be taken up once 33KV line to seraikela is nearing completion.

7 LDC for distribution system in Seraikela-Kharasawan 400 100 70 6 Completed . Capitalisation in FY11-12

8 Vehicle for Testing Equipment/Staff movement 5 5 5 - Completed

9 Mobile Transformer on Van with trolley and switchgears 10 10 10 10 Finalisation of vendor is in progress.

10 56 MVA Power Transformer 370 370 Completed in FY 2009-10

11 33kV Feeder from TGS to Phase#7 alongwith terminal equipment 205 205 271 243 Delayed due to ROW from PWD for Tata-Kandra road.

12 New 33kV feeder in Large Sector Area. 150 150 150 130 19 Material received. Erection in progress

13 132kV Bay at Chandil with provision of 132/33kV Substation 490 490 490 - 190 300 Scheme have not started due to non availability of land. To be taken up during FY12-13.

14 Low Tension Lines in Adityapur & Gamharia Area. 100 100 100 10 90 In progress

15 High Tension Line in Adityapur & Gamharia Area. 400 400 400 90 176 134 In progress

16 33/11kV Substation in Adityapur Area for AIADA Phase 4 &6 430 430 430 - 344 86 Not started . To be taken up during FY12-13.

17 Augmentation of Transformation Capacity at 132kV/33kV Substation at TGS. 850 850 850 - 595 255 Not started . To be taken up during FY12-13.

18 GIS for New Connection/ power distribution management. 60 60 60 - - 60 To be completed in 12 months

19 Office and storage space in AIADA Phase#2 and Phase#7 substation. 80 80 80 40 40 Civil work has been started.

20 Video Surveillance System at 4 nos. of substation. 3.5 3.5 4 4 Completed

Total - old Schemes (A) 5,529 5,229 7,228 1,197 4,040 1,395

21 Fire Fighting system for 132/33 KV TGS substation 100 - 75 25 To be completed in 12 months from scheme approval.

22 Emergency restoration system in case of failure 132KV Transmission tower 250 - 125 125 To be completed in 12 months from scheme approval.

Total - New Schemes (B) 350 - 200 150

Gross Scheme Cost (A+B) 7,578 1,197 4,240 1,545

Remarks

New Schemes

Sl.

No.

Particulars Original

Scheme Cost

Scheme Cost

submitted

FY2011-12

Revised

Scheme Cost

FY2012-13

Phasing Out

Rs in lakhs

Sr.No. Particulars FY 2010-11

A Current Assets, Loans and Advances

Sundry Debtors 1,034.04

Cash and Bank Balances 0.03

Loans and Advances 225.99

TOTAL OF 'A' 1,260.06

B Current Liabilities and Provisions

Current Liabilities 2,797.71

TOTAL OF 'B' 2,797.71

C NET CURRENT ASSETS (A - B) (1,537.66)



1 Return on Equity 301 406 525

2 Income Tax Rate in % 33.22% 32.45% 32.45%

3 Grossing up of RoE {1/(1-2)} 451 601 777

4 Add: Depreciation as per ARR 441 459 534

5 Less: Depreciation as per IT Act (767) (741) (741)

6 Add: Normative Interest on Loan 482 607 810

7 Taxable Income (3+4-5+6) 608 926 1,381

8 Income Tax 202 300 448

Return on Equity

2011-12 -

Provisional

2012-13

(Projected)



Income Tax (Rs in lakhs)

Sl.No. ParticularsFY 2010-

11tual)

Unit Existing Proposed Existing Proposed

DS - I Rs. Per Connection per Month - 20.00 1.10 1.10

DS - II (< 201) Rs. Per Connection per Month 35.00 35.00 1.50 1.50

DS II (> 201) Rs. Per Connection per Month 50.00 50.00 1.90 1.90

DS - III Rs. Per Connection per Month 90.00 90.00 1.90 1.90

DS HT Rs. per kVA per Month 65.00 65.00 1.65 1.65

NDS - I Rs. Per Connection per Month - - 1.35 1.35

NDS - II Rs. per kW per Month 110.00 150.00 3.95 3.95

LTIS Rs. per HP per Month 75.00 110.00 3.50 3.50

IAS (Metered) Not Applicable - - - -

High Tension - - - -

HTS - 11 kV Rs.per kVA per Month 165.00 165.00 4.35 4.35



HTSS - 11 kV Rs.per kVA per Month 330.00 330.00 2.50 2.50



Panchayats, Self Helf Groups.

Micro/Nano DF Not Applicable - - - -

Bulk Supply to MES Rs. per kVA per Month 160.00 - 3.00 3.00

Temporary Supply Not Applicable - - - -

Energe Charge

(Rs./kWh)

Domestic Category

Non-Domestic Category

LT Industrial and Medium Power

Irrigation and Agriculture Services

High Tension Special (Proposed to be Merged in HTS)

Bulk Supply


ARR Formats - ARR and Tariff Petition FY 2011-12Existing Vs Proposed Tariff

Consumer Category and

Consumption Slabs

Fixed Charge

DeloitteHaskins & Sells

Chartered AccountantsBengal Intelligent ParkBuilding Alpha, 1st FloorBlock - EP& GP,Sector - VSalt Lake Electronics ComplexKolkata - 700 091India

Tel. : +91 (33) 6612 1000Fax: +91 (33) 6612 1001

On the basis of examination of audited books of accounts of Jamshedpur Utilities And Services Company

Limited (tithe Company") for the year ended 31st March, 2011, and according to the information and

explanations given to us by the management, we hereby certify that the information mentioned in

Annexure 1 and 2 (read with the notes thereon) relating to Power Business Division of the Company,

have been extracted frqm such books of accounts and other records maintained by the Company.

This certificate is issued at the request of the Company for onward submission to Jharkhand State

Electricity Regulatory Commission and should not be used for any other purpose.

For Deloitte Haskins & ~elisChartered Accountants(ICAI Registration' No. 302009E)

~6}J~Abhijit BandyopadhyayPartner.Membership No. 054785

Kolkata: ,"-Cp (... November, 2011

JAMSHEDPUR UTILITIES AND SERVICESCOMPANY LIMITEDPOWER BUSINESS DIVISION

STATEMENT OF AFFAIRS AS ON 31ST MARCH 2011

- AS AT AS AT•SCHEDULE 31.03.2011 31.03.2010

Rupees Rupees

SOURCESOF FUNDS:

Capital Employed 508,081,414 485,311,225Capital Contribution 1 250,310,112 209,528,241Defe"rred Tax Liability 51,954,264 40,149,867

TOTAL SOURCESOF FUNDS 810,345,790 734,989,333

APPLICATION OF FUNDS:

FIXEDASSETS 2

>-~ Gross Block 966,628,980 907,300,233Less: Depreciation/amortization 112,518,017 66,424,896Net Block 854,110,963 840,875,337Capital work-in-progress 110,000,388 58,638,896

964,111,351, 899,514,233

CURRENT ASSETS, LOANS & ADVANCESSundry Debtors . 103,403,617 64,532,610Cash & Bank Balances 3,000 441,986Loans and Advances 22,599,000 1,595,534

126,005,617 66,570,130

LESS:CURRENT LIABILITIES & PROVISIONSCurrent Liabilities 3 279,771,178 231,095,030

NET CURRENT ASSETS/ (LIABILITIES) (153,765,561) (164,524,900)

TOTAL APPLICATION OF FUNDS 810,345,790 734,989,333

~NOTES ON BALANCE SHEETAND PROFIT AND LOSS

6 "

ACCOUNT "

For and on behalf ofJamshedpur Utilities and Services Company Limited

rJEDPUR UTILITIES AND SERVICESCOMPANY LIMITEDer f3usiness Division

OFIT & LOSSACCOUNT FORTHE YEAR ENDED ON 31ST MARCH 2011

•• SCHEDULE April to March 11 April to March 10.'Rupees Rupees

INCOME:

I

income from Power Sale 969,116,284 553,729,025

( Units sold 212033192 kwh previous year 126651368 kwh)i Other Income 4 916,123 3,213,927i\TOTAL INCOME 970,032,407 556,942,952

EXPENDITURE:

Purchase of Power 680,587,671 372,525,299~ ating Expenses 5 53,106,871 32,987,900Dl::fJreciation 46,093,121 38,510,931

Less: Transfer from capital contribution 11,089,145 6,981,853Interest paid 11,516,200 7,483,370Administration and General Expenses (Allocation) 27,258,592 18,490,437

TOTAL EXPENDITURE 807,473,310 463,016,084

PROFIT BEFORETAXES . 162,559,097 93,926,868

NOTES ON BALANCE SHEET AND PROFIT AND LOSS6

ACCOUNT

For and on behalf ofJar;;.'\hedpur Utilities and Services Company Limited

/'

~Managing Director

("'

!<.olkoio.. ,,,~/~ovember, 2011

JAMSHEDPUR UTILITIES AND SERVICES COMPANY LIMITED

Power Business Division

SCHEDULE FORMING PART OF STATEMENT OF AFFAIRS

AS AT AS AT

31.03.2011 31.03.2010.Rupees Rupees

SCHEDULE 1: Capital Contribution

Contrbution for Capital expendiure :

Balance as per last year 209,528,241 100,573,178

Add : Amount received during the year. 51,871,016 115,936,916

261,399,257 216,510,094Less: Transfer to Profit and Loss Account 11,089,145 6,981,853

250,310,112 209,528,241

I IAdjustment during Additions During

Depreciation as at For the periodParticulars As at 31.03.2010 the period Apr'10- the Period Apr'10- As at 31.03.2011 As at 31.03.2011 As at 31.03.2011

31.03.2010 Apr'lO-Mar'l1Mar'l1 Mar'l1 ..

I II Rupees II II Rupees II Rupees

"Rupees II Rupees II Rupees II Rupees I

Tangible AssetsLand 2,371,829 2,371,829 2,371,829

Building 30,933,361 94,600 31,027,961 1,081,203 504,342 1,585,545 29,442,416(30,785,174) (148,188) (30,933,361) (579,203) (502,000) (1,081,203) (29,852,159)

Plant and Machinery 864,357,671 53,147,125 917,504,796 62,434,445 42,698,277 105,132,722 812,372,074(687,760,043) (996,530) (177,594,158) (864,357,671) (26,253,321) (36,181,124) (62,434,445 ) (801,923,226)

Furniture & Fixtures and 972,876 248,513 1,221,389 390,285 174,364 564,649 656,740Office Equipments (542,573) (430,303) (972,876) (96,931) (293,354) (390,285) (582,591)

Vehicles 288,245 507,578 795,823 126,107 113,029 239,136 556,687(288,245) (288,245) (82,870) (43,237) (126,107) (162,138)

Intangible AssetsLICENSES 7,758,755 7,758,755 905,188 1,551,751 2,456,939 5,301,816

(7,758,755) (7,758,755) (905,188) (905,188) (6,853,567)

SOFTWARE 2,989,324 2,959,102 5,948,426 1,487,668 1,051,358 2,539,026 3,409,400(2,847,283) (142,04~) (2,989,324) (901,640) (586,028) (1,487,668) (1,501,656)

TOTAL 907,300,232 59,328,747 966,628,979 66,424,896 46,093,121 112,518,017 854,110,962Previous Year (722,223,318) (996,530) (186,073,444) (907,300,232) (27,913,964) (38,510,931) (66,424,896) (840,875,336)

AS AT AS AT

31.03.2011 31.03.2010Rupees Rupees

SCHEDULE 3 : CURRENT LIABILITIES

a) Sundry Creditors 24,579,990 25,695,263b) Other Liabilities 241,688,942 177,397,336c) Advance from customers ( Consumer Contribution) 13,502,246 28,002,431

279,771,178 231,095,030

JAMSHEDPUR UTILITIES AND SERVICESCOMPANY LIMITEDPower Business DivisionSCHEDULE FORMING PART OF STATEMENT OF AFFAIRS

a) Service Income

b) Miscellaneous Income

April to March 11Rupees

717,036

199,087

April to March 10Rupees

2,999,730

214,197

a) Cost of Servicesb) Payments to and Provisions for Employeesc) Consumption ofStores& Sparesd) Repairs and Maintenance expensese) Rentf) Travelling and Conveyance Expensesg) Legal & Professional Feesh) Advertisement & Promotional Expensesi) Rates & Taxes

j) Insurance Chargesk) Other Expenses

916,123

8,721,12123,131,7376,669,926

315,318330,786

1,557,2472,188,9161,094,4502,340,204

696,4776,060,689

4,793,11615,361,5015,673,804

92,34385,670

715,8312,053,092

975,3661,129,086

53,106,871

6. Jamshedpur Utilities and Services Company LimitedPower Business DivisionSchedule Forming part of Balance Sheet and Profit and Loss Account

The accounts has been prepared under the historical cost convention on an accrual

basis in accordance with the Generally Accepted Accounting Principles, Accounting

Standards issued by the Institute of Chartered Accountants of India,as applicable, and

the relevant provisions of the Companies Act, 1956.

Jamshedpur Utilities Services Company Limited ("JUSCO") was incorporated on 25th

August, 2003 under the provisions of the Companies Act, 1956 as a wholly owned

subsidiary of Tata Steel. Under the provisions of Electricity Act 2003, JUSCOwas granted

a parallel distribution license in Dec' 2006 to distribute power by creating its own

distribution network in the revenue district of Seraikela-Kharasawan. The Seraikela-

Kharsawan district of Jharkhand is contiguous to Jamshedpur. Jusco (Power Business

Department) purchases power from Tata Steel and sells it to domestic, industrial and

Commercial LT and HT consumers.

The Financial statement are prepared from the records maintained in the SAP system of

the Company, in which data relating to power business division are maintained in

separate cost centers. Besides directly identifiable expenses recorded in the specific cost

centers, certain common attributable expenses are allocated to power business division

on predefined, consistent and reasonable basis as estimated by the management.

Apart directly attributable expenses to power bU5iness divi9ion, certain common

expenses are allocated on following basis:

Cost of Legal Department, Business Equal among all segments/departmentsStrategy Department, Administration

Department, Corporate Communication

Department and Security Department.

Cost of General Manager - Secretariat Ratio of Turnover&Town Services Department, TPM

6. Jamshedpur Utilities and Services Company LimitedPower Business DivisionSchedule Forming part of Balance Sheet and Profit and Loss Account

I Department, Accounts, M D Secreta riat

i Department

Cost of Human Resource (HR) Department No. of Employees

Cost of Information Technology Number of PCs/ Laptops

Department

Cost of Billing and Collection Department Number of consumers

Cost of GM - PSDOffice Department Equal between Services Division and

Power Business Division

Cost of Procurement Department Value of procurement

. Income is recognized on accrual basis on rendering of services and excludes electricity

duty. /f. Contribution from consumers

Contribution received from consumers towards installation of assets pertaining to

distribution of 'power is credited to capital reserve on capitalization of related assets. An

amount in proportion to the depreciation charge for the year on such assets is

transferred to the profit and loss account.

1. Depreciation on Plant and machinery is provided on straight line basis at the

rates specified in Schedule XIV to the Companies Act, 1956. Intangible Assets are

amortized on straight line basis over the useful life or 5 years which"ever is lower.

2. Vehicle, office equipment and furniture fixture are depreciated on straight line

basis over the estimated useful life of the assets or Schedule XIV rates, whichever is

higher. The details of estimated useful life for each category of assets is as under:

Assets Useful life

Vehicle 6.67 years

Office equipment 10.00 yearsFurniture & Fixtures 5.00 years

3.. Assets valued below Rs. 5,000/-(Rupees Five Thousand Only) and Mobile Phones

are depreciated over a period 1 year from the date of capitalization

Jamshedpur Utilities and Services Company LimitedPower Business DivisionSchedule Forming part of Balance Sheet and Profit and Loss Account

Fixed Assets are stated at cost of acquisition less accumulated depreciation andimpairment loss (if any). Cost of acquisition includes duties (net of cenvat), taxes,

incidental expenses, erection / commissioning expenses and financial charges up to the

date the asset is ready for its intended use. Intangible assets are stated at cost less

accumulated amortization. Advances given to suppliers for identified capital

projects/expenditure are included in capital work in progress.

The deferred tax liability has arisen on account of timing difference with respect to the

written down value of the fixed assets.

Normative expenses such as interest on working capital, interest on Debt and Return on

Equity has not been considered in the accounts.

j. Previous year figures have been regrouped / re-arranged, where-ever

necessary.

Signatory to Schedule 1 to 6

Notes to Accounts and Accounting Policies

Documents

Petition to Hon’ble Jharkhand State Electricity Regulatory