Section-3: Annual Revenue Requiremet

3. Annual Revenue Requirement for FY 2012-13:

3.1. Determination of ARR requires assessment of energy sales as well as cost of
various elements like power purchase cost, O&M expenses, interest cost and
depreciation, etc. Projection of the petitioners with respect to various
components of ARR, the Commission’s analysis thereon and decision with
respect to items given below are discussed in the following paras:
(1) Energy sales
(2) Losses, both transmission and distribution
(3) Power purchase cost, including transmission charges and SLDC
charges
(4) Operation and maintenance expenses
(5) Interest and finance charges, including interest on working capital
(6) Depreciation
(7) Revenue from existing tariff
(8) Non-tariff and other income
(9) Revenue deficit based on existing tariff
4. Energy Sales
4.1. Discoms have worked out the energy sales on the basis of actual sales of
previous years. The consumer category wise sales projected by the three
Discoms vis-a-vis that approved vide the Commission’s MYT order dated
15.4.2010 and the energy sales being approved now by the Commission have
been discussed in the following sub-paras.
4.2. It may be mentioned that all consumers in the State, except Flat Rate
Agriculture consumers, have metered energy supply and fall within the
metered category. Commission normally considers Compounded Annual
Growth Rate (CAGR) of 3 or 5 previous years, as the case may be, in assessing
energy requirement in a year. However, in case of Agriculture, connected
load and specific consumption have been used for calculating sales as
adopted in tariff order of FY 2011-12. This methodology is more appropriate
than using CAGR of sales as agricultural consumption varies considerably on
year to year basis due to erratic nature of rainfall in the State. In addition,
supply hours for agriculture in the past have varied considerably due to
various reasons, which also lead to significant changes in consumption of
power in agriculture. This methodology has been used in this order for
estimating the energy sales of Agriculture consumers (both metered and flat
rate).
4.3. Commission has, accordingly, analyzed separately the projections of energy
sales for FY 2012-13 by Discoms in respect of the following consumer
categories with respect to the different methodologies adopted to finalize
energy of such categories:

51
 (1) All consumers category, except Agriculture
(2) Agriculture consumers (Metered)
(3) Agriculture consumers (Flat Rate)
4.4. Petitioners’ Submission
4.4.1. Energy Sales for Metered Categories (except Agriculture)
4.4.1.1. The Discoms have submitted that they have followed the methodology as
approved by the Hon’ble Commission and accordingly considered the 3-
year CAGR for Domestic and Non-domestic categories and 5-year CAGR
for remaining categories except Agriculture based on the energy sales from
FY 2006-07to FY 2011-12. The details of category-wise sales are provided in
the table-7.
4.4.2. Energy sales to Agriculture Metered (M) consumers
4.4.2.1. The Discoms have retained the energy sales approved for FY 2011-12 under
the Agriculture Category (metered) for the existing consumers. In addition,
petitioner has planned for an addition of 6000 consumers for JVVNL, 4000 for
AVVNL and 5000 for JdVVNL for FY 2012-13.
4.4.2.2. The Discoms have further submitted that the conversion of flat rate
consumers to metered category is being faced with public resistance. The
petitioner has therefore not considered consumption for converted
category for FY 2012-13 due to very slow pace of conversion. The Discoms
have furnished the following information regarding no. of consumers,
connected load and specific consumption in their petition.
Table 1-Agriculture (M) sales for FY 2012-13-JVVNL
Particulars Consumers Connected Total Specific Consumption
(Number) load per connected consumption (sales)
consumer load (kW) (kWh/kW/year) (MU)
(kW)
Existing 385976 5.91 2363817 1883 4451
Add:
Nil Nil Nil Nil Nil
converted
New 6000 7.94 47640 1883 90
Total 391976 2411457 4541

Table 2-Agriculture (M) sales for FY 2012-13- AVVNL

Particulars Consumers Connected Total Specific Consumption
(Number) load per Connected consumption (Sales)
consumer load (KW) (kWh/kW/year) (MU)
(KW)
Existing 289667 6.09 1768353 1475 2608
Add:
Nil Nil Nil Nil Nil
converted
New 4000 6.5 26000 1475 38
Total 293667 1794353 2646

52
 Table 3-Agriculture (M) sales for FY 2012-13- JdVVNL
Particulars Consumers Connected Total Specific Consumption
(Number) load per Connected consumption (Sales)
consumer load (KW) (kWh/kW/year (MU)
(KW) )
Existing 201865 18.48 3946852 1429 5640
Add:
Nil Nil Nil Nil Nil
converted
New 5000 28 140000 1429 200
Total 206865 4086852 5840

4.4.3. Energy Sales for Agriculture Flat Rate (FR) Consumers

4.4.3.1. The Discoms in their supplementary submission have submitted the data on
connected load, specific consumption and sales of flat rate consumers. The
conversion of flat rate consumers has not been considered for FY 12-13 due
to slow rate of conversion from flat rate to metered category.
4.4.3.2. Jaipur Discom has proposed for a higher connected load per consumer
and specific consumption as compared to that approved in the previous
tariff order dated 8.09.11.
4.4.3.3. In reply to data gaps conveyed by the Commission, Discoms indicated the
following details regarding the number of consumers, connected load and
specific consumption which corresponds to the growth rate based on
CAGR assumed by them in the petition.
Table: 4-Agriculture (FR) Sales for FY 2012-13 – JVVNL
Particulars Consumers Connected Total Specific Consumption
(Number) load per Connected consumption (sales)
consumer (KW) load (KW) (kWh/kW/year) (MU)
Existing 42172 7.04 296982 1946 578
Less:
Nil Nil Nil Nil Nil
converted
Total 42172 296982 578

Table: 5-Agriculture (FR) Sales for FY 2012-13– AVVNL

Particulars Consumers Connected Total Specific Consumption
(Number) load per Connected consumption (sales)
consumer (KW) load (KW) (kWh/kW/year (MU)
)
Existing 68565 8.94 624730 1945 1215
Less:
Nil Nil Nil Nil Nil
converted
Total 68565 8.94 624730 1945 1215

53
 Table: 6-Agriculture (FR) Sales for FY 2012-13– JdVVNL
Particulars Consumers Connected Total Specific Consumption
(Number) load per Connected consumption (sales)
consumer load (KW) (kWh/kW/year) (MU)
(KW)
Existing 43385 16.67 735828 1945 1419
Less:
Nil Nil Nil Nil Nil
converted
Total 43385 735828 1945 1419

4.4.4. Total energy sales projected by Discoms:

4.4.4.1. The projection of energy sales of different consumer categories discussed in
preceding sub-paras and comparison with energy sales approved in MYT
order dated 15.4.2010 are as given in the following table:
Table: 7- Total Energy Sales for FY 2012-13- Discoms’ Projection (MU)
Consumer Category
JVVNL AVVNL JdVVNL Total
As per As per As per As per As per As per As per As per
MYT petition MYT petitio MYT petition MYT petitio
order order n order order n
1. Metered Category except Agriculture
(i)Domestic 3611 4409 2220 2413 2197 2256 8028 9078
(ii)Non-Domestic 1383 1231 625 540 653 542 2661 2313
(iii)Public Street Light 49
119 111 52 172 219 343 379
(iv)Small Industry 292 278 227 252 251 236 770 766
(v)Medium Industry 780 710 697 707 552 488 2029 1905
(vi)Large Industry 4852 4626 2731 2326 1357 1075 8940 8027
(Viii)Public Water Works (S) 289 257 237 237 251 296 777 790
(viii)Public Water Works (M) 32 26 32 31 111 115 175 172
(ix)Public Water Works (L) 117 140 161 147 440 433 718 720
(x)Mixed Load 539 674 296 463 540 703 1375 1840
(xi)Electric Traction 367 441 0 0 0 0 367 441
2. Agriculture Metered
Agriculture (Metered) 2963 4541 3164 2647 4209 5840 10336 13028
3. Agriculture Flat Rate
Agriculture (Flat Rate) 260 578 368 1215 357 1419 985 3224
Total Sales 15606 18021 10811 11026 11090 13620 37507 42683

54
4.5. Commission’s Analysis
4.5.1. Energy Sales for Metered Categories (except Agriculture)
4.5.1.1. Commission’s energy assessment for FY 2012-13 of the said categories is
based on 12 months actual sale (unaudited) of Metered Categories for FY
2011-12, as submitted by Discoms and tabulated as under:

Table: 8-Actual Sales of the three Discoms for FY 2011-12 (MU)

Consumer Category JVVNL AVVNL JdVVNL Total
Domestic 3142 2114 1994 7250
Non-Domestic 1188 514 528 2230
Public Street Light 110 53 118 281
Small Industry 267 247 212 726
Medium Industry 637 612 478 1727
Large Industry 3835 2446 1105 7386
PWW (S) 218 198 214 630
PWW (M) 26 35 103 164
PWW (L) 143 150 352 645
Mixed Load 366 256 493 1115
Railway Traction 370 0 0 370
Total 10302 6625 5597 22524

4.5.1.2. In the Tariff Order dated 8.09.11 the Commission had considered 3-year
CAGR for Domestic and Non-domestic categories and 5-year CAGR for
remaining categories except Agriculture for computation of energy.
Considering the same approach, the Commission has considered the
energy sales on the basis of 3-year (from FY 2008-09 to FY 2011-12) CAGR for
Domestic and Non-domestic categories and 5-year CAGR (from FY 2006-07
to FY 2011-12) for remaining categories (except agriculture) based on the
energy sales from FY 2006-07 to FY 2011-12.
4.5.1.3. The 3-year CAGR and 5-year CAGR for different consumer categories and
the growth rate, accordingly adopted by the Commission and the energy
sales are as given in the tables below:
Table: 9-Growth rates and energy sales for FY 2012-13 – JVVNL
Consumer 5-Year CAGR 3-Year CAGR Growth Rate Energy Sales
Category Adopted by (MU)
Commission
Domestic 14% 13% 13% 3549
Non-Domestic 13% 12% 12% 1336
Public Street Light 15% 14% 15% 127
Small Industry 4% 4% 4% 277
Medium Industry 9% 7% 9% 691
Large Industry 13% 12% 13% 4337

55
 Consumer 5-Year CAGR 3-Year CAGR Growth Rate Energy Sales
Category Adopted by (MU)
Commission
PWW (S) 5% 3% 5% 229
PWW (M) -2% -4% -2% 25
PWW (L) 10% 13% 10% 157
Mixed Load 17% 14% 17% 430
Electric Traction 6% 7% 6% 391
Total 11551

Table: 10-Growth rates and energy sales (MU) for 2012-13– AVVNL
Consumer 5-Year CAGR 3-Year CAGR Growth Rate Energy
Category Adopted by Sales
Commission
Domestic 15% 14% 14% 2413
Non-Domestic 12% 10% 10% 565
Public Street Light 7% 9% 7% 57
Small Industry 5% 5% 5% 261
Medium Industry 10% 9% 10% 672
Large Industry 9% 7% 9% 2654
PWW (S) 8% 5% 8% 213
PWW (M) 2% 5% 2% 36
PWW (L) 10% 6% 10% 164
Mixed Load 19% 18% 19% 304
Electric Traction 0 0 0 0
Total 7340

Table: 11-Growth rates and energy sales for FY 2012-13– JdVVNL

Consumer 5-Year 3-Year Growth Rate Energy Sales
Category CAGR CAGR Adopted by (MU)
Commission
Domestic 13% 12% 12% 2236
Non-Domestic 11% 9% 9% 574
Public Street Light 25% 14% 25% 147
Small Industry 6% 4% 6% 224
Medium Industry 9% 10% 9% 523
Large Industry 3% 5% 3% 1136
PWW (S) 6% 3% 6% 227
PWW (M) 2% 1% 2% 105
PWW (L) 7% 7% 7% 379
Mixed Load 11% 11% 11% 549
Electric Traction 0
Total 6100

56
4.5.2. Agriculture Metered (M) consumers
4.5.2.1.Commission has accepted Discoms’ submissions in the reply to data gaps
with respect to, number of existing, and new consumers to be converted
from flat rate to metered category.
4.5.2.2.The Commission observed that there were several discrepancies in the
submission of the Discoms. These included mismatch in the closing no. of
consumers and connected load for a given year and the opening/existing
no. of consumer and connected load per consumer for the next year.
Further, the Discoms have submitted varying values for connected load per
consumer in their reply to data gaps. In the preliminary reply to data gaps,
the Discoms retained the connected load and specific consumption as
approved by the Commission in the tariff order dated 08.09.11.
Subsequently, in the detailed reply to data gaps, Jodhpur and Jaipur
Discoms have revised their submission with respect connected load per
consumer for FY 2011-12. The Commission has observed discrepancy in the
Discoms submission in the detailed reply of data gaps; In case of Jaipur the
connected load per consumer for the converted consumer for FY 2011-12 is
coming out to be less than 1KW per consumer per year which is erroneous.
4.5.2.3.The Commission has approved the sales for FY 2012-13 using the following
assumptions
1) For metered category, the no. of consumers for all Discoms have
been taken as per their reply to data gaps. Connected load per
consumer in case of JVVNL and AVVNL have also been taken as per
their reply to data gaps. However, in case of JdVVNL due to
inconsistency of data supplied from time to time, the connected
load per consumer has been taken as per last order dated 8.9.11.
The specific consumption for all Discoms has been taken as
submitted by them.
2) Specific consumption and connected load per consumer for flat rate
consumers has been allowed as approved by the Commission in
order dated 8.9.11, as the submission of the Discoms in the detailed
reply to data gaps is inconsistent.
3) The Commission has considered that new consumer would be in the
metered category for 6 months and hence average connected load
has been considered in case of new consumers for working out their
annual consumption.
4.5.2.4.Accordingly, the connected load and estimated sales for FY 2012-13 as
approved have been provided below :

57
 Table: 12-Agriculture (M) sales approved by the Commission for FY 2012-13 -
JVVNL

Specific
Average Connected Projected
No. of Consumption
Particulars Connected Load Consumption
consumers (kWh/
Load (kW) (kW) (MU)
kW/Year)
Existing Metered Consumers 324807 6 2083853 1883 3924
No. of consumers converted Nil Nil Nil Nil Nil
New Consumers added 6000 7.94 23820 1883 45
Total 330807 2131493 3969

Table: 13-Agriculture (M) sales approved by the Commission for FY 2012-13 -

AVVNL

Specific
Average Connected Projected
No. of Consumption
Particulars Connected Load Consumption
consumers (kWh/
Load (kW) (kW) (MU)
kW/Year)
Existing Metered Consumers 292602 6.16 1802494 1475 2659
No. of consumers converted Nil Nil Nil Nil Nil
New Consumers added 4000 6.50 13000 1475 19
Total 296602 1828494 2678

Table: 14-Agriculture (M) sales approved by the Commission for FY 2012-13 -

JdVVNL

Specific
Average Connected Projected
No. of Consumption
Particulars Connected Load Consumption
consumers (kWh/
Load (kW) (kW) (MU)
kW/Year)
Existing Metered Consumers 183582 18.48 3392595 1429 4848
No. of consumers converted Nil Nil Nil Nil Nil
New Consumers added 5000 28.00 70000 1429 100
Total 188582 3532595 2858 4948
4.5.3. Energy Sales for Agriculture Flat Rate (FR) Consumers
Connected Load per Consumer for Flat Rate Consumers
4.5.3.1.The Commission has observed that the Discoms have escalated the
connected load per consumer in the revised submission in the reply to data
gaps. The Commission has retained the connected load per consumer
approved in the tariff order dated 08.9.11 for all Discoms as there is no
reason for increasing its connected load.
Specific Consumption for Flat Rate Consumers
4.5.3.2.The Commission has observed that Jaipur discom in their detailed reply to
data gaps have escalated the specific consumption of the flat category
consumers.

58
 4.5.3.3.The Commission, as discussed in the previous order, does not agree with the
escalation of specific consumption of agriculture flat rate consumers and
has retained the specific consumption of 1945 kWh/kW/year for the
computation of consumption of this category for FY 2012-13.
4.5.3.4.Further, the Discoms have not proposed for any conversion in the flat rate
category in lieu of slow rate of conversion. The Commission directs the
Discoms to expedite the process of conversion and complete the
conversion of all flat rate consumers to the metered category in the
stipulated time schedule (March 2014).
4.5.3.5.The energy sales approved by the Commission for Agriculture (FR) category
for the three Discoms for FY 2012-13 have been provided in the tables
below:
Table: 15-Agriculture (FR) sales approved by the Commission for FY 2012-13 - JVVNL
Particulars Consumers Connected load Total Specific Consumption
(Number) per consumer connected consumption (sales)
(KW) load (KW) kWh/kW/year (MU)
Existing 48603 6.5 315919 1945 614
Less: converted Nil Nil Nil Nil Nil
Total 48603 315919 614

Table: 16-Agriculture (FR) sales approved by the Commission for FY 2012-13- AVVNL
Particulars Consumers Connected load Total Specific Consumption
(Number) per consumer Connected consumption (sales)
(KW) load (KW) (kWh/kW/year) (MU)
Existing 68683 8.94 614151 1945 1195
Less: converted Nil Nil Nil Nil Nil
Total 68683 614151 1945 1195

Table: 17 -Agriculture (FR) sales approved by the Commission for FY 2012-13 -JdVVNL
Particulars Consumers Connected Total Specific Consumption
(Number) load per connected consumption (sales)
consumer (KW) load (KW) kWh/kW/year (MU)
Existing 41568 16.67 692939 1945 1348
Less: converted Nil Nil Nil Nil Nil
Total 41568 692939 1945 1348

4.5.4. Energy Sales as approved by the Commission for all categories

4.5.4.1.Based on the adopted growth rates discussed in the preceding paragraphs
and agriculture sales, as worked out on the basis of connected load and
accepted specific consumption, the energy sales for Discoms are being
approved as under:

59
Table:18-Energy Sales approved by the Commission for Discoms for FY 2012-13
(MU)
Consumer Category JVVNL AVVNL JdVVNL Total
Domestic 3549 2413 2236 8199
Non-Domestic 1336 565 574 2475
Public Street Light 127 57 147 331
Agriculture (Metered) 3969 2678 4948 11595
Agriculture (Flat) 614 1195 1348 3157
Small Industry 277 261 224 762
Medium Industry 691 672 523 1887
Large Industry 4337 2654 1136 8128
Public Water Works (S) 229 213 227 670
Public Water Works (M) 25 36 105 166
Public Water Works (L) 157 164 379 700
Mixed Load 430 304 549 1283
Electric Traction 391 0 0 391
Total Sales 16134 11212 12396 39742

5. Transmission and distribution losses

5.1. Distribution Loss
5.1.1. Petitioners’ Submission
5.1.1.1. The Discoms have submitted that they have been continuously working
towards the reduction in distribution losses and have succeeded in
implementing various schemes including feeder renovation program,
installation of single phase transformers, various reform programs focusing
on industrial and urban consumers.
5.1.1.2. Jaipur discom has submitted the distribution loss levels as approved in MYT
order whereas Jodhpur and Ajmer Discoms have proposed distribution loss
lower than that approved in the MYT order.
5.1.1.3. The distribution loss as proposed by the petitioner and that approved in the
MYT order is provided in the table below
Table: 19-Distribution Losses for 2012-13 – Petitioners’ Submission
Name of Discom Losses as per MYT order Losses Proposed for FY
12-13
JVVNL 18.00% 18.00%
AVVNL 23.00% 20.00%
JdVVNL 19.00% 18.00%

5.1.2. Commission’s Analysis

5.1.2.1. For FY 2012-13, the Commission has accepted the distribution losses as
proposed by Jaipur Discom, which is at the same level as approved earlier
by the Commission in MYT order. Ajmer and Jodhpur Discoms have
proposed lower distribution losses for FY 2012-13as compared to that

60
 approved in the MYT order dated 15.04.10. Commission has accepted the
projections of distribution losses of Ajmer and Jodhpur Discoms for FY 2012-
13 as reduction in losses is in the best interest of consumer. The distribution
loss target as approved by the Commission for FY 12-13 is as under:
Table: 20-Distribution Losses for FY12-13
Name of Discom Losses Proposed Losses Approved
by Discoms by Commission
JVVNL 18.00% 18.00%
AVVNL 20.00% 20.00%
JdVVNL 18.00% 18.00%

5.2. AT&C Losses

The Commission has observed that the collection efficiency for the Discoms
of Rajasthan is 100%. Hence the target for AT&C losses has been approved
same as the target approved for Distribution losses for the 3 Discoms for FY
2012-13.
5.3. Transmission Losses
5.3.1. The Discoms have considered the intra-state transmission loss level for FY 2012-
13 as approved by the Commission in its tariff order for FY 2011-12. The
interstate transmission losses have been taken as the average of past 52
weeks for northern region and 14 weeks average for eastern region as
available at CEA website.
5.3.2. The levels of transmission loss as proposed by the Discoms have been shown
in the following table.

Table: 21 - levels of transmission loss

Approved by Commission
Particulars Proposed
for FY 2011-12
Intra-State Transmission Losses 4.30% 4.30%
Inter-State Transmission Losses
Northern Region 3.66% 3.34%
Eastern Region 2.69%

5.3.3. Commission’s Analysis

5.3.3.1. With respect to intra-state transmission losses, the Commission has adopted
transmission loss of 4.20%, which is the loss approved by the Commission vide
the RVPN transmission tariff order dated 23.12.2011as against the loss of
4.30% considered by Discoms. However, the average transmission loss
outside the State (interstate losses) has been shown by Discoms as 3.34% for
the Northern Region and an additional 2.69% for Eastern. The Commission
has taken actual average losses of 3.71% as per information furnished by
RVPN for the year 2011-12.

61
 6. Energy Requirement as approved vis-à-vis petitioners’ submission
6.1. On the basis of the sales, distribution and transmission losses discussed
above, the energy requirement proposed by Discoms and approved by the
Commission for FY 2012-13 is given in the following table:
Table: 22- Energy Requirement for FY 2012-13 (MU)
Particulars JVVNL AVVNL JdVVNL Total
Proposed Approved Proposed Approved Proposed Approved Proposed Approved
Energy Sales to
18021 16134 11026 11212 13620 12396 42667 39742
Consumers (MU)
Distribution Loss (%) 18% 18.00% 20.00% 18%
20% 18%
Add: Distribution
3956 3542 2757 2803 2990 2721 9703 9066
Loss (MU)
Energy Required at
Discoms periphery 21977 19676 13783 14015 16610 15117 52370 48808
(MUs)
Intra-State Transmission
Losses (%)
4.30% 4.20% 4.30% 4.20% 4.30% 4.20% 4.30% 4.20%
Add: Intra-State
Transmission Losses 987 863 619 614 746 663 2352 2140
(MU)
Energy Requirement at
Transco periphery
22965 20538 14402 14629 17357 15780 54724 50947
Inter-State Transmission
Losses (%)
3.34% 3.71% 3.34% 3.71% 3.34% 3.71% 3.34% 3.71%
Add: Inter-States
Transmission Loss
260 303 191 200 208 207 659 710
Gross Energy
Requirement (MU)
23225 20841 14593 14830 17565 15987 55383 51657

7. Power Purchase Cost

7.1. Petitioners’ Submission
7.1.1. Discoms have projected requirement of power purchase for FY 2012-13
considering the sales projection and loss projection, as submitted in their
petition. The power requirement has been planned to be met through
power purchase from state generating units, allocation from shared
projects, purchase from renewable sources, latest allocation of power from
the central generating stations, entitlement from new generating stations
and purchase through short term sources.
7.1.2. Discoms have submitted that they have made the following assumptions
while projecting the power purchase cost for FY 2012-13:
• Availability of energy from all power plants has been shared amongst
JVVNL, AVVNL and JdVVNL in the ratio 39:29:32.
• The latest allocation of power from the Central Generating Stations
including, coal, gas and nuclear power stations has been considered as
per CEA’s letter dated 05.11.2011.
• The availability from RFF has been wholly allocated to JVVNL.

62
 • Availability of power from state generating stations has been considered
on the basis of the latest tariff order issued by RERC for RVUN stations for FY
2011-12. The availability of central generating stations is based on the 2
year average installed capacity and PLF for each plant.
• For central generating stations, variable charge per unit for FY 2012-13 has
been projected by considering an escalation of 5% over the approved
variable charges of FY 2011-12. For RVUN stations, the variable charge per
unit has been considered as per the latest RVUN tariff orders
7.1.3. Summary of the power purchase quantum and cost as submitted by Discoms
is as under:
Table:23-Power Purchase (MU) and Cost (Rs. Cr.) for FY 2012-13 – submitted by
Discoms
Stations Jodhpur Total
Jaipur Discom Ajmer Discom Discom
Units Cost Units Cost Units Cost Units Cost
NTPC 2735 808 2034 601 2244 663 7013 2072
NHPC 766 224 570 167 628 183 1964 574
SJVNL 227 85 169 64 183 70 579 219
NPCIL 1204 370 896 275 988 304 3088 949
RVUN/ State
10546 3302 7842 2353 9228 2765 27616 8420
Generation
Shared Projects 1210 45 900 42 993 41 3103 128
Others 307 121 93 41 102 45 502 207
Non-conventional
1056 466 852 373 862 378 2770 1217
Sources
Short term purchases 5174 2070 1240 496 2333 933 8747 3499
Inter-discom
sale/purchase
Total 23225 7491 14593 4410 17565 5382 55383 17283

7.2. Commission’s Analysis

7.2.1. While estimating energy availability and power purchase cost for 2012-13, the
Commission has considered the generation from state generating units
based on their latest tariff petitions, instead of power availability based on
the latest tariff order as assumed by Discoms in their petition. The latest
position of allocation (as per CEA) as well as actual availability of previous
year from Central Generating Stations has been taken into consideration.
Likewise, the position as per latest tariff orders/petitions has been considered
in working out power purchase cost, as discussed later in the order.
7.2.2. For estimating the power purchase cost, the Commission has considered
availability from various sources for the State as a whole. For working out
Discom wise availability and cost, the allocation of power to JVVNL, AVVNL
and JdVVNL from all generating stations has been considered in the ratio of
39%, 29% and 32% respectively, except that100% allocation of RFF share has
been considered for JVVNL.

63
7.3. Energy Availability and Cost for FY 2012-13
7.3.1. RVUN Stations
7.3.1.1. For existing RVUN generating stations, including KTPS-VII & STPS-VI, the
Commission has considered the PLF and energy availability as per the Tariff
petition for FY 2012-13 of RVUN generation stations dated 29.12.11. The fixed
and variable charge per unit for the RVUN plants namely, KTPS, SSTPS,
RGTPS, DCCPP and Mahi have been considered as per the interim tariff
order dated 27.03.12.
7.3.1.2. The energy availability and cost from RVUN’s generating stations as
considered by the Commission have been shown in the table below :
Table: 24-PLF, Energy Availability (MU) and cost (Rs. Cr.)- RVUN stations for FY 2012-13
Station Energy Availability Cost
KTPS 8596 2567
STPS 9805 3621
RGTPS 644 194
Dholpur GTPP 2254 853
Mahi Hydel Station (Mahi) 174 19
Mini and Micro Hydel 2 1
Generating Stations (MMH)

7.3.2. Chabbra
7.3.2.1. The availability for Chabbra plants I and II has been considered as per the
latest petition (Feb 2012) for FY 2012-13. The per unit variable and fixed
charges have been considered as that approved in the interim tariff order
dated 30.03.12.
7.3.2.2. The energy availability and total power purchase cost for Chabbra have
been summarized in the table below
Table: 25-Energy Availability (MU) and cost (Rs. Cr.)- Chabbra plant for FY 2012-
13
Station Energy Availability Total Cost
Chabbra – I 1594 457
Chabbra – II 1594 457

7.3.3. Lignite based projects

7.3.3.1. The lignite based projects include Giral Lignite power Limited, Rajwest
limited and Barsingsar power project. The availability for Giral I and II has
been considered as per the petition for FY 2012-13. The per unit charge for
FY 2012-13 for Giral II has been considered as per the latest order dated
31.05.12. The per unit charge of Giral-I has also been considered as per
latest order of the Commission. The petitioners have not considered
availability of power from Barsingsar lignite based project whereas 1130 MU

64
 is likely to be received from this station during the year 2012-13. The same
has been considered as availability from this station for the year 2012-13. The
actual per unit rate of power available from this station during FY 2011-12
has been considered for the current year.
7.3.3.2. For Rajwest, availability has been considered for all the 4 plants as per the
petition for FY 2012-13dated22.02.2012. The per unit charge has been
considered as per the interim tariff order dated 02.04.2012.
7.3.3.3. The energy availability and total power purchase cost for Lignite based
projects have been summarized in the table below
Table: 26-Energy Availability (MU) and cost (Rs. Cr.)- Lignite plants for FY 2012-13
Station Energy Availability Total Cost
Giral – I 692 173
Giral – II 704 174
Rajwest 2977 996
Barsingsar 1130 305
Total 5503 1648

7.3.4. Nuclear Power Corporation of India Ltd. (NPCIL)

7.3.4.1. The Discoms have considered availability for NPCIL plants as per the
availability mentioned in the website of NRPC. For FY 2012-13, the
Commission has considered the actual availability of FY 2011-12 as
submitted by the Discoms. The variable charge per unit for FY 2012-13 has
been computed by the Commission by escalating the variable charges
approved for FY 2011-12 in the order dated 8.09.11 by 5% as proposed by
the Discoms.
7.3.4.2. The energy availability and total power purchase cost for NPC plant have
been summarized in the table below
Table: 27-Energy Availability (MU) and cost (Rs. Cr.)- NPC for FY 2012-13
Energy Availability Total Cost
3482 1078

7.3.5. Partnership projects (PP)

7.3.5.1. Total Power purchase quantum for partnership projects has been
considered as per petition of RVPN for FY 2012-13. Further, the total cost for
partnership projects has been considered as per RVPN Tariff petition for FY
12-13 and allocated among the Discoms in the ratio of 39:29:32 for JVVNL,
AVVNL and JdVVNL respectively. Energy availability and total power
purchase cost for partnership projects have been summarized in the table
below :

65
 Table: 28- Energy Availability (MU) and cost (Rs. Cr.)- Partnership Projects for FY 2012-
13
Energy Availability Total Cost

2668 120.79

7.3.6. NTPC, NHPC & Others

7.3.6.1. The actual power purchase quantum and cost of FY 2011-12 for existing
plants of NTPC, NHPC& Others sources have been used for estimation of
power purchase cost from these sources.
7.3.6.2. The quantum of power purchase from these sources for FY 12-13 has been
retained at the same level as the actual for FY 2011-12 submitted by the
Discoms. To account for cost escalation, 5% increase has been allowed in
variable component of FY 2011-12 to estimate the likely power cost from
these sources for FY 2012-13 as proposed by the Discoms.
7.3.6.3. The fixed charge for NTPC, NHPC & Others sources has been approved as
per the actual fixed charge submitted by the Discoms for FY 2011-12.
7.3.6.4.The energy availability and total power purchase cost for NTPC, NHPC, Tehri,
SJVNL & other plants have been summarized in the table below.

Table: 29 - Energy Availability (MU) and cost (Rs. Cr.)- NTPC & NHPC and Other
Generating Stations for FY 2012-13
Plants Energy Availability Total Cost
NTPC Stations 7158 2089
NHPC Stations 1507 397
Nathpa-Jhakri 595 173
Tehri Hydro 323 81
Tala 52 11
RFF 363 133
Total 9998 2884

7.3.7. Non-Conventional Energy Sources

7.3.7.1. The Commission has observed that the Discoms have submitted higher
availability from non-conventional sources as compared to last year.
However, as per estimate of the Commission, the available capacity is likely
to meet the renewable purchase obligation of the Discoms specified by the
Commission in RERC (Power Purchase and Procurement Process of
Distribution Licensee) Regulations, 2011. Accordingly, the Commission has
taken the availability from non-conventional energy sources to the extent of
RPO specified for various sources except in case of bio-mass for which the
submission of Discom has been accepted.
Cost of Non-Conventional Sources

66
7.3.7.2. Solar including bundled power
The average purchase price of Rs. 4.81/kWh as approved for FY 2011-12 has
been considered allowing an escalation of 3% for FY 2012-13. The escalation
is on account of increase in component of conventional power, whose tariff
is likely to rise due to increase in cost of fuel.
7.3.7.3. Wind

For FY 2012-13, charges have been considered by escalating

average purchase price of Rs. 4.00 approved for FY 2011-12 in the
order dated 08.09.2011 by 3% on account of change in quantum of
purchase and the later purchases being higher than average rate.
7.3.7.4. Biomass
The Commission has considered the variable charge per unit for biomass
plant for by allowing for an escalation of 5% over estimated average price
of Rs. 4.75 per unit approved in FY 2011-12 in the order dated 08.09.2011.
Accordingly, the total cost and availability for the three Discoms from non-
conventional sources has been summarized in the table below:

Table: 30 -Energy Availability (MU) and cost (Rs. Cr.)- Solar, wind & biomass for FY
2012-13
Plants Energy Availability Total Cost

Solar including bundled power 387 192

Wind 2635 1085
Bio mass 464 231
Total 3486 1509

7.3.7.5. Short term Sources

7.3.7.5.1. After considering the energy available to Discoms based on their
respective allocated shares, the Commission has estimated a shortfall in
energy availability for all the 3 Discoms. Commission has considered that
this shortfall will be met by procuring additional quantum of power
through short term sources which has been estimated for the purpose of
calculating ARR at an average rate of Rs. 4.00/unit. The Govt. of India has
issued guidelines for short term procurement of power by distribution
licensees through tariff based competitive bidding. Clause 3.2 of these
guidelines state that in case procurement of short term power exceeds
the approved annual short term procurement plan, the procurer(s) shall
obtain prior approval from the appropriate Commission or any
appropriate body as may have been constituted for the purpose by the
appropriate Commission.

67
7.3.7.5.2. The Commission in RERC (Power Purchase and Procurement Process of
Distribution Licensee) Regulations, 2004 has already formed an Energy
Assessment Committee consisting of CMDs of STU, RVUN, each Distribution
Licensee and In-charge of SLDC which shall consider the assessment of
availability of demand of electricity and finalize power purchase
requirement. The same Committee may act as an appropriate body for
the purpose of para 3.2 of guidelines for short term procurement of power
through tariff based competitive bidding. However, the Discoms may
approach the Commission for adoption of tariff if the same is higher than
the highest rate approved by the Commission for conventional power.
7.4. Total Power Purchase Cost
7.4.1. Based on the above, the summary of source wise and Discom wise breakup
of power purchase quantum and cost for 2012-13 as considered by the
Commission for the 3 Discoms is given in the table below:
Table:31-Energy Availability (MU) and cost (Rs. Cr.) for FY 2012-13
Stations JVVNL AVVNL JdVVNL Total
Units Cost Units Cost Units Cost Units Cost
NTPC 2792 815 2076 606 2291 669 7158 2089
NHPC 588 155 437 115 482 127 1507 397
NPCIL 1358 420 1010 312 1114 345 3482 1078
RVUN/ State Generation 9619 3186 7153 2369 7893 2614 24664 8169
Shared Projects 1041 47 774 35 854 39 2668 121
Others 742 237 281 77 310 85 1334 399
Lignite Based Power Plants 2146 643 1596 478 1761 527 5503 1648
Non-conventional 1360 588 1011 438 1116 483 3486 1509
Bilateral/ Trading 1197 479 493 197 167 67 1856 743
Inter Discom Purchase 0 0 0 0 0 0 0 0
Total 20841 6569 14830 4627 15987 4955 51657 16151
8. Transmission Charges
8.1. Petitioners’ Submission
8.1.1. The Discoms have submitted that actual transmission charges for FY 2010-11
have been considered. Further, the RVPN charges and the SLDC charges
have been considered on the basis of cost approved by the Commission for
FY 2011-12 with an escalation of 5% for FY 2012-13. The details of the
transmission and SLDC charges submitted by Discoms have been
summarized in the table below:
Table: 32- Transmission Charges & SLDC Charges for 2012-13 (Rs.Crore)
Discoms’ submission
Particulars Total
JVVNL AVVNL JdVVNL
PGCIL Charges 147 108 132 387
RVPN Charges 650 530 530 1710

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 SLDC Charges 14 11 11 36
Total Transmission Charges 811 649 673 2133

8.2. Commission’s Analysis

8.2.1. The Commission has considered the RVPN and SLDC charges for FY 2012-13 as
per the interim order dated 30.03.12.
8.2.2. Actual PGCIL charges paid during the year 2011-12 have been allowed as
submitted by the Discoms for FY 2012-13
8.2.3. Commission has considered allocation of these charges in the ratio of
39:29:32 for Jaipur, Ajmer and Jodhpur Discoms, respectively. The
transmission & SLDC charges, accordingly, approved by the Commission for
FY 2012-13 are as under:
Table: 33-Transmission Charges approved by the Commission for FY 2012-13 (Rs.Crore)
Particulars JVVNL AVVNL JdVVNL Total
PGCIL Charges 184 150 154 488
RVPN Charges 626 465 514 1605
SLDC Charges 11 8 9 28
Total Transmission Charges 821 623 677 2121

9. Operation and Maintenance Expenses

9.1. Petitioners’ Submission
9.1.1. Discoms have estimated O&M expenses based on the O&M norms specified
in RERC Tariff Regulations, 2009. They have further submitted that the
regulation 25(4) of the RERC (Terms and Conditions of Tariff) Regulations
2009 provides a normative growth rate of 5.72% per annum subject to
revision on account of annual escalation linked to WPI in the subsequent
year for the purpose of true-up. Since the WPI for the FY 2010-11 has
increased 9.56% as compared to the FY 09-10 i.e. from 130.98 to 143.32 basis
points, the Discoms have considered 9.56% escalation for FY 2010-11 and
resumed the 5.72% escalation subsequently.
9.1.2. The O&M expenses projected by Discoms for FY 2012-13 have been
summarized below:
Table: 34-Operation and Maintenance Expenses for FY 2012-13 (Rs.crore)
Particulars JVVNL’s AVVNL’s JdVVNL’s Total
submission submission submission
Employee Costs 574 351 434 1359
Administrative & General Costs 66 40 50 156
Repairs & Maintenance Costs 132 81 100 313
Total O&M Costs 772 473 583 1828
Expenses to be Capitalized 128 78 97 303
Net O&M Costs charged to revenue 644 394 487 1525

69
9.2. Commission’s Analysis
9.2.1. Commission has allowed O&M expenses in accordance with Regulation 119
of RERC Tariff Regulations, 2009.
9.2.2. The Commission has retained the 5.72% escalation for each year form FY
2009-10 to FY 2012-13 as provided in the regulations. The revision in O&M
expenses for FY 2010-11 is not in the ambit of this petition and shall be dealt
with in the true up petition for FY 2010-11
9.2.3. Commission has considered sales allowed for FY 2012-13 for projecting
normative O&M expenses. O&M expenses capitalized have been
considered in the same ratio as projected by Discoms. O&M expenses
approved by the Commission for Discoms for FY 2012-13have been
summarized below:
Table: 35-Operation and Maintenance Expenses approved by the Commission for FY
2012-13 (Rs. Crore)

Particulars Approved Approved Approved Total

JVVNL AVVNL JdVVNL
Employee Costs 496 344 381 1221
Administrative & General Costs 57 40 44 141
Repairs & Maintenance Costs 114 79 88 281
Total O&M Costs 667 464 513 1644
Expenses to be Capitalized 111 77 85 273
Net O&M Costs charged to revenue 557 387 428 1372

10. Terminal Benefit

10.1. Petitioners’ Submission
10.1.1. Discoms have considered terminal benefit upto FY 2008-09 as approved by
the Commission in the tariff order dated 8.09.11. The Discoms have further
considered additional terminal benefit in accordance with the Provisional
accounts of FY 2010-11 and considered escalation in terminal benefit for FY
2011-12 and FY 2012-13.
10.1.2. The terminal benefit submitted by the Discoms for FY 2012-13 has been
tabulated below.
Table: 36-Terminal Benefit for FY 2012-13(Rs.crore)
Particular JVVNL AVVNL JdVVNL Total
Terminal Benefit upto FY 207 181 105 493
08-09
Terminal Benefits for FY 08- 300 228 367 895
09 onwards
Total Terminal Benefit 507 409 472 1388
submitted

70
10.2. Commission’s Analysis
10.2.1. The Commission in its order dt.8.9.2011 had allowed 50% of the terminal
liability upto FY 2011-12 to be spread during the remaining control period.
The Commission has retained the same for FY 2012-13. Accordingly, liability
allowed by the Commission for FY 2012-13 is as under:
Table: 37-Terminal Benefit approved by the Commission for FY 2012-13 – (Rs.Crore)
Particular JVVNL AVVNL JdVVNL Total
Total Terminal Benefit Approved 207 181 105 493

11. Interest and Finance charges and interest on working capital

11.1. Capitalization
11.2. Petitioners’ Submission
11.2.1. The Capital Investment and capitalization proposed by Discoms is shown in
the table below.

Table: 38- Capital Expenditure and Capitalization proposed (Rs.crores)

JVVNL AVVNL JdVVNL
Particulars FY 2012-13 FY 2012-13 FY 2012-13 Total
Projected Projected Projected
Capital Expenditure 983 605 685 2273
Capitalization 943 623 727 2293

11.3. Commission’s Analysis

11.3.1. The Commission is considering only 80% of the proposed capitalization for ARR
since the investment plan has not yet been approved. Accordingly, the
capitalization is being allowed as under:
Table: 39-Projected capitalization approved by the Commission for FY 2012-13
(Rs.Crore)
Particulars Approved Approved Approved Total
JVVNL AVVNL JdVVNL
Capitalization 754 498 582 1834

12. Interest on loans, Lease Rentals and Finance charges

12.1. Petitioners’ Submission
12.1.1. The Discoms have projected interest and finance charges for FY 2012-13
based on the provisional un-audited accounts of FY 2010-11. The Discoms
have submitted that the revenue gap for the previous years have not been
amortized through a cost reflective tariff and hence have considered
funding of the gap through debt. Therefore the Discoms have considered
interest on funding of the regulatory gap.
12.1.2. The Interest Charges and Finance Charges for FY 2012-13 have been
summarized in the table below:

71
 Table: 40- Interest and Financing charges for FY 2012-13 (Rs. crore)
JVVNL’s AVVNL’s JdVVNL’s
Description Total
submission submission submission
Interest Charges 2389 2548 2337 7274
Interest Expenses Capitalized 439
188 184 67

Total Interest & Finance Charges 2201 2364 2270 6835

12.1.3. Further, the Discoms have considered the interest rates at 14% as per the
prevailing SBI PLR rate for new loans.
12.2. Commission’s Analysis
12.2.1. The interest and finance charges with respect to the assets capitalized have
been calculated by the Commission considering the following:
a) The closing balance of long-term loans for FY 2011-12 allowed in the Tariff
Order dated 08.09.11, has been considered by the Commission as the
opening balance of FY 2012-13.
b) The long-term loans required for capitalization during the year have been
reduced by the amount of consumer contribution, capital grants and equity
received during the year.
c) Repayment for FY 2012-13 has been pegged at the depreciation allowed by
the Commission for FY 2012-13 as prescribed in the RERC Tariff Regulations,
2009.
d) Capitalization for FY 2012-13 has been considered as discussed in foregoing
paragraphs.
e) Since only 80% capitalization has been allowed by the Commission, the
equity, consumer contribution and grants have also been taken to the extent
of 80% of the total projected by the Discom.
f) The Weighted average interest rate projected by JVVNL, AVVNL and JdVVNL
is 11.14%, 14.57% and 11.96% respectively. It is observed that AVVNL has
projected a significantly higher interest rate than other Discoms although the
lending agencies are broadly the same. Therefore, there is no reason to
allow the projected rate in case of AVVNL. The Commission has considered
a rate of 11.96% for AVVNL as allowed to JdVVNL. AVVNL should strive to
obtain long term loans at the rates at which other Discoms are getting them
from the same sources.
g) Finance Charges have been allowed as sought by the three Discoms.
h) Security deposit has been considered as submitted by Discoms in their
working capital format. Interest on security deposit has been allowed as per
the prevailing bank rate. RBI has increased the bank rate from 6% to 9% w.e.f.
17.4.2012 and the increased rate has been considered for the purpose of
computation of interest on security deposit.

72
 i) Interest capitalized has been taken as per the ratio of interest capitalized and
total gross interest charges submitted by Discoms.
j) Based on the above, the approved interest and finance charges (with
respect to the assets capitalized) approved for FY 2012-13 for the three
Discoms have been summarized in the tables below:
Table: 41-Interest and Finance Charges approved by the Commission for
FY 2012-13 (Rs.crore)
Approved Approved Approved Total
Particulars JVVNL AVVNL JdVVNL

Opening balance of LTL 4017 2708 2397 9122

Capitalisation 754 498 582 1834
Capital expenditure financed by Equity 198 122 153 474
Capital expenditure financed by
Consumer Contribution and grants 93 89 73 254
Receipt of LTL for Capital expenditure 463 287 356 1106
Principal Repayment 372 290 257 919
Closing balance of LTL 4108 2705 2496 9309
Average LTL 4063 2706 2447 9216
Average Interest rate of LTL (%) 11.14% 11.96% 11.96%
Interest Charges on LTL 453 324 293 1070
Interest on Security Deposit 56 36 29 121
Finance Charges & Lease Rental 29 16 95 141
Gross Interest Charges 538 376 417 1331
Interest Expenses Capitalized 42 27 12 81
Total Interest & Financing Charges 495 349 405 1250

12.2.2. Additional loan to meet revenue gap of past years

12.2.2.1. The uncovered revenue deficit upto 31-3-2009 assessed as Rs. 15,540 Cr. in
the MYT order, has increased further in FY 2009-10, FY 2010-11 and FY 2012-13
on account of increase in cost of supply on the one hand and the inability
of licensees to get the cost increase adjusted through tariff revision or else
through additional subsidy from the State Government.
12.2.2.2. Since the Government has decided to liquidate accumulated deficit as on
31-3-2009, the unfunded gap approved by the Commission in the tariff order
dated 08.09.11 i.e. for the period after 31.3.2009 is being admitted for the
purpose of loan and is tabulated below:

Table: 42-Unfunded Gap for FY 2009-10 to FY 2011-12 (Rs.crore)

Licensee Unfunded Gap
FY 10 FY 11 FY 12 Total
JVVNL 519 396 1771 2686
AVVNL 1112 1353 1351 3816
JdVVNL 1109 1322 2302 4733
Grand 2740 3071 5424 11235
Total

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12.2.2.3. The weighted average rate of interest has been considered for the
computation of interest liability on the unfunded gaps for all the Discoms.
12.2.2.4. The Commission presently has not considered amortization of the unfunded
gap during FY 2009-10 and 2010-11 and the regulatory assets created in FY
2011-12.
12.2.2.5. The additional interest allowed on above amount and the total interest
charges for all Discoms for FY 2012-13 have been summed up in the table
give below:

Table: 43- Interest charges for all Discoms for FY 2012-13(Rs.crore)

Particulars Approved Approved Approved Total
JVVNL AVVNL JdVVNL
2686 3816 4733 11235
Additional loan to meet revenue gap
11.14% 11.96% 11.96%
Average Interest rate (%)
299 456 566 1321
Interest liability
Total Interest ( for capitalized assets) 495 349 405 1250
and finance charges
Total Interest and finance charges 795 805 972 2571

12.3. Interest on Working Capital

12.4. Petitioners’ Submission
12.4.1. Discoms estimated their working capital requirement for FY 2012-13 as per the
RERC Tariff Regulations and the same has been tabulated below:
Table: 44- Interest on Working Capital for FY 2012-13 (Rs. Crore)
Description JVVNL’s AVVNL’s JdVVNL’s Total
submission submission submission
O&M expenses (as per norms) 67 33 41 141
Maintenance Spare (as per norms) 121 59 73 253
Receivables (as per norms) 1488 1065 1211 3764
Less:
Security deposit of Consumers 620 403 324 1347
Total Working Capital 1057 754 1000 2811
Interest Rate (%) 14.00% 14.00% 14.00% 14.00%
Interest on Working Capital 148 106 140 394

12.4.2. The Petitioner has further submitted that it has considered the SBI PLR rate in
terms of the RERC regulations for the purpose of interest on working capital.
Accordingly, the Discoms have considered the SBI PLR rate of 14% for FY 12-
13 based on prevalent SBI PLR rate.

74
12.5. Commission’s Analysis
12.5.1. The normative working capital requirement together with interest there-on has
been calculated by the Commission considering the following:
• The Commission has proposed a change in its Tariff Regulations relating
to interest on working capital keeping in view the fact that the Banks
have switched over to base rate system of lending in place of PLR and
that the present market rate of interest on short term borrowings is no
longer aligned with PLR of SBI. Accordingly, for the purpose of
calculating interest on working capital, the Commission has considered
PLR of 14% upto August, 2012 and SBI base rate of 9.3% existing during
first six months of FY 2011-12 plus 250 basis points as proposed in the
amendment to the existing Regulations. The rate of interest thus works
out to 11.8% and has been adopted from September, 2012 onwards.
• O&M expenses approved by the Commission for FY 2012-13, have been
considered for the purpose of calculation of working capital
requirement.
• Receivables have been considered based on ARR approved by the
Commission for FY 2012-13.
• Security deposit submitted by Discoms has been considered by the
Commission for FY 2012-13.
12.5.1.1. Accordingly, the interest on working capital considered by the Commission
is as under:
Table: 45-Interest on Working Capital approved by the Commission for FY 2012-13
(Rs.crore)
Description Approved Approved Approved Total
JVVNL AVVNL JdVVNL
O&M expenses (as per norms) 46 32 36 114
Maintenance Spare (as per norms) 84 58 64 206
Receivables (as per norms) 1149 844 925 2918
Less:
Security deposit of Consumers 620 403 324 1347
Total Working Capital 660 531 701 1892
Interest Rate (%) 12.72% 12.72% 12.72% 12.72%
Interest on Working Capital 84 68 89 241
13. Depreciation
13.1. Petitioners’ Submission
13.1.1. The Discoms have submitted that they have considered the specified rates as
provided in the RERC Tariff regulation in Appendix-I based on Straight Line
Method (SLM)
13.1.2. The submission of the three Discoms with respect to depreciation has been
tabulated below:

75
 Table: 46-Depreciation for FY 2012-13 (Rs. crore)
Particulars JVVNL’s submission AVVNL’s submission JdVVNL’s Total
submission
Depreciation 515 419 346 1280

13.2. Commission’s Analysis

13.2.1. Commission has allowed depreciation based on the following consideration:
• The closing balance of depreciable asset for FY 2011-12 allowed in the
Tariff order dated 08.09.11 has been considered by the Commission as
the opening balance for FY 2012-13.
• For FY 2012-13, capitalization has been considered as discussed earlier.
• Depreciable assets for FY 2012-13 have been reduced by the amount of
consumer contribution and capital grants projected for the year.
• Consumer contribution and grant submitted by the three Discoms
respectively, for FY 2012-13 has been considered.
• Average depreciation rate has been calculated as a percentage of
depreciation during the year on the average of opening and closing
GFA, as submitted by the three Discoms respectively, for FY 2012-13.
13.2.1.1. Deprecation allowed by the Commission for each of the three Discoms has
been tabulated below.
Table: 47-Depreciation allowed by the Commission for FY 2012-13
(Rs.Crore)
Particulars Approved Approved Approved Total
JVVNL AVVNL JdVVNL
Depreciable Assets at the beginning of the 6775 5,325 4664
Year 16,764
Capitalization during the year 754 498 582 1,834
less Consumer Contribution and Capital 93 89 73
Grants during the year 255
Depreciable Assets added during the Year 662 410 509 1,581
Depreciable Assets at the end of the Year 7437 5,735 5173
18,345
Average Depreciable Assets during the Year 7106 5,530 4918.4 17,554
Average Depreciation Rate 5.23% 5.25% 5.22%
Depreciation 372 290 257 919
290
14. Return on Equity
14.1. Petitioners’ Submission
14.1.1. Discoms have submitted that since the licensees have not been able to
recover the full cost from the tariffs as explained earlier and have to
depend on the GoR subsidy to meet the revenue gap, the licensees have
not proposed any return on equity for FY 12-13.

76
 14.2. Commission’s Observation
14.2.1. Since, Discoms have not sought Return on Equity; the Commission has also not
considered Return on Equity.
15. Non-tariff Income
15.1. Petitioners’ Submission
15.1.1. Discoms have projected Non-Tariff Income for FY 2012-13, including interest
on loan from staff, interest on fixed deposit, gain on sale of fixed assets, sale
of scrap, delayed payment surcharge, investments, miscellaneous receipts
etc. as given below:
Table: 48-Non-Tariff Income for FY 2012-13 (Rs.Crore)
Particulars JVVNL AVVNL JdVVNL Total
Total Non-tariff Income 209 230 85 524

15.1.2. The Discoms have further submitted that they have considered the Non-Tariff
Income for the FY 10-11 as per the provisional accounts for FY 10-11 and
projected the same for the FY 11-12 and FY 12-13 by considering a growth
rate of 10% for each year.
15.2. Commission’s Analysis
15.2.1. Commission observes that non-tariff income cannot be accurately estimated.
Therefore, the Commission has considered the non-tariff Income for FY 2012-
13 as projected by Discoms. The same, therefore, is being allowed.
16. Aggregate Revenue Requirement
16.1. Petitioners’ Submission
16.1.1. The Annual Revenue Requirement for FY 2012-13 proposed by the three
Discoms has been given in the table below:
Table: 49-Summary of ARR for FY 2012-13 – Discoms’ submission (Rs.Crore)
2012-13
Particulars JVVNL AVVNL JdVVNL Total
1 Power purchase 7491 4,410 5,382 17283
2 Transmission Charges:
(i)PGCIL 147 108 132 387
(ii)RVPN 650 530 530 1710
(iii)SLDC 14 11 11 36
3 O&M Expense (Normative) 644 394 487 1525
4 Terminal Benefit 507 409 472 1388
5 Interest and Finance Charges 2201 2,364 2,270 6835
6 Interest on Working Capital (Normative) 148 106 140 394
7 Depreciation 515 419 347 1281
8 Gross Aggregate Revenue Requirement 12317 8751 9771 30838
9 Less: Non-Tariff Income 209 230 85 524
10 Aggregate Revenue Requirement 12108 8,523 9,685 30314

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16.2. Commission’s Approval
16.2.1. Commission has approved the ARR for FY 2012-13 based on the items of
expenditure discussed in the preceding sections and the same has been
summarized in the table below:
Table: 50 Summary of ARR for all the three Discoms for FY 2012-13
– Approved by Commission (Rs.Crore)
Particulars JVVNL AVVNL JdVVNL Total
1 Power purchase 6569 4627 4955 16151
2 Transmission Charges 0
(i)PGCIL 184 150 154 488
(ii)RVPN 626 465 514 1605
(iii)SLDC 11 8 9 28
3 Operation and Maintenance Expenses 557 387 428 1372
4 Terminal Benefit 207 181 105 493
5 Interest and Finance Charges 795 805 972 2571
6 Interest on working Capital 84 68 89 241
7 Depreciation 372 290 257 919
8 Aggregate Revenue Requirement
9404 6981 7481 23866
9 Less: Non Tariff Income 209 230 85 524
10 Net Aggregate Revenue Requirement 23342
9195 6751 7396

17. Revenue and Revenue deficit based on existing tariff

17.1. Petitioners’ Submission
17.2. Revenue on existing tariff
17.2.1. Discoms have projected the revenue from sale of power based on the
projected energy sales for different consumer categories. The revenue for
each category has been calculated on the basis of retail tariff approved by
the Commission vide order dt. 08.09.11.
17.3. Electricity Duty and Cash Support :
17.3.1. Discoms have shown Electricity Duty and cash support for FY 2012-13 as under
:
Table: 51 –Electricity Duty and Cash support for FY 2012-13 (Rs.crore)

Particular JVVNL’s AVVNL’s JdVVNL’s Toal

submission submission submission
Electricity Duty 494 356 300 1150

Transitional Cash 156 116 128 400

Support

17.3.2. The revenue in FY 2012-13 from existing tariff as per Discoms’ submission is as
under:

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 Table: 52- Revenue from existing tariff for FY 2012-13– Discoms’ submission
(Rs.Crore)
Consumer Category JVVNL AVVNL JdVVNL Total
Domestic 1973 1132 1,037 4,142
Non-Domestic 818 366 360 1,544
Public Street Light 49 21 93 163
Agriculture (Metered) 692 402 840 1,934
Agriculture (Flat) 86 179 208 473
Small Industry 144 132 119 395
Medium Industry 383 377 265 1,025
Large Industry 2429 1367 596 4,392
Public Water Works (S) 108 103 125 336
Public Water Works (M) 13 16 58 87
Public Water Works (L) 72 81 228 381
Mixed Load 351 240 356 947
Electric Traction 234 0 0 234
Total Revenue 7353 4413 4,285 16,051

17.4. Revenue Deficit

17.4.1. The revenue deficits submitted by Discoms for FY 2012-13 at the existing tariff
have been provided in the table below:

Table: 53-Revenue deficit/Surplus at existing tariff for FY 2012-13(Rs.Crore)

Particular JVVNL AVVNL JdVVNL Total

12108 8523 9685 30314
Aggregate Revenue Requirement
Revenue generation for Full Year at 7353 4413 4285 16051
existing tariff (including other charges
including ED & other income)
Electricity Duty 494 356 300 1150
Transitional Cash Support from GoR 156 116 128 400
4105 3637 4972 12714
Net Revenue Deficit

17.4.2. Commission’s Analysis :

17.4.3. Commission has calculated the revenue from existing tariff on the basis of
consumer category wise energy sales approved by the Commission and
retail tariff as approved by the Commission vide order dt.08.09.11. In their
petition Discoms have shown Govt. subsidy Rs. 1.40/unit for BPL category, Rs.
0.80/unit for small Domestic, Rs. 0.46/unit for agriculture metered general
category and Rs. 90/HP for agriculture flat general category at present tariff.
Commission has worked out revenue at the tariff determined by it i.e. at
revenue based on full tariff as the Discoms are receiving the subsidy
component from the government and the balance revenue from the
consumers based on the effective energy charge. Other income proposed
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 by Discoms has been accepted. The estimated revenue at existing tariff for
different consumer categories for all the three Discoms for FY 2012-13 has
been summarized in the tables below:
Table: 54- Revenue from existing Tariff for FY 2012-13- Approved by the Commission
(Rs.Crore)
Consumer categories JVVNL AVVNL JdVVNL Total

Domestic 1598 1097 1004 3699

Non-Domestic 879 380 379 1638
Public Street Light 56 25 63 144
Agriculture (Metered) 604 407 713 1724
Agriculture (Flat) 91 177 197 465
Small Industry 144 136 114 394
Medium Industry 375 360 282 1017
Large Industry 2285 1531 627 4443
Public Water Works (Small) 101 97 101 299
Public Water Works (Medium) 13 18 54 85
Public Water Works (Large) 81 89 201 371
Bulk Supply to Mixed Load 239 165 288 692
Electric Traction 209 0 0 209
Total Revenue from Tariff 6675 4481 4023 15179
17.4.4. Considering the ARR and Revenue at existing tariff as determined by the
Commission and subsidy from Government & Transitional support as shown
by Discoms in their petition, the revenue gap for all the three Discoms for FY
2012-13 at the existing tariff works out as under:
Table: 55-Revenue deficit/Surplus at existing tariff for FY 2012-13 – Approved by the
Commission (Rs.Crore)
Particular JVVNL AVVNL JdVVNL Total
Aggregate Revenue Requirement 9195 6751 7396 23342
Revenue generation for Full Year at
existing tariff (including other income) 6675 4481 4023 15179
Revenue Deficit 2520 2270 3374 8163

Support from Govt. including ED retention 494 356 300 1150

Transitional Cash Support from GoR 156 116 128 400
Net Revenue Deficit 1870 1798 2946 6614
Note: The Govt. support of Rs. 1550 Crore (Rs. 1150+Rs. 400 Crore) is over and
above the subsidy to be given by the State Government against tariff of
specific consumer groups determined by Commission.

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