Grant of Connectivity,LTA, MTOA

In
Interstate Transmission system
Regulation 2009
P.S.Das, Ch.Manager
ERLDC, POSOCO

10/31/2019 ERLDC: POSOCO 1

 • Chapter 1: Definitions
• Chapter 2: General provisions
Contents

• Chapter 3: Connectivity
• Chapter 4: Long-term and Medium-term
Open Acces
• Chapter 5: Long-term Access
• Chapter 6: Medium-term Open Access
• Chapter 7: Conditions of LTA and MTOA
• Chapter 8: Information System
• Chapter 9: Repeals and Savings
10/31/2019 ERLDC: POSOCO 2
 Act and Regulatory Provisions

• Generation was de-licensed in the

Electricity Act 2003
• Evacuation of power ensured through
CERC notification of Long term open
access in Jan 2004
• Utilization of ISTS for generation projects
was granted by CTU under the regulatory
framework
 Energy Resources Map
Energy resources (coal, water etc.) unevenly distributed
Expected Generating Stations - 2025

 Coal – In Central India

Jammu Expected Installed Capacity (2025) : 6,00,000MW ‾ Chhattisgarh : 58000 MW
‾ Orissa : 30000 MW
Ludhiana
‾ Jharkhand : 15000 MW
NR Delhi NEPAL
SIKKIM

BHUTAN
‾ Madhya Pradesh:16000 MW
Partabpur
RAPP Jaipur Guwahati
Lucknow CHICKEN
NECK NER

AR
Patna

 Hydro – In North Eastern &

Koderma BANGLA

MM
Sasan DESH
Mudra ER

AN
Vindhyachal

MY
Gandhinagar

Pipavav
Indore Bhopal Korba
Kolkata
Northern Himalayan region
WR Akaltara Talcher/Ib Valley
Lara
Raipur Darlipali Bhubaneswar
Tarapur
Mumbai
Vizag  Coastal based
‾ Andhra Pradesh: 24000 MW
Girye Simhadri
Hyderabad

Tadri SR LEGEND
Kaiga Krishnapatnam

Ennore
Coal Based generation ‾ Tamil Nadu : 10000 MW
Hydro Based Generation

‾ Gujarat :
Bangalore
Mangalore
Kozhikode
Chennai
South Madras Coastal Generation
Nuclear generation
11000 MW
Cuddalore Ultra-Mega Generation
Load Centre Based Generation
Kayamkulam Load-Centre
Thiruvananthapuram
Kudankulam
 CERC approval for implementation

• Regulatory approval was sought for implementation of

the transmission system

 Based on grant of Open access

 Generation developers signing the BPTA
 Submission of bank guarantee

The transmission scheme is under various stages of

implementation

Above was developed based on CERC notification, Jan

2004
Regulatory frame work - August 2009
Applicant-Who can apply?
– Connectivity
• Generating station >= 250MW & CPP of exportable capacity
>=250MW
• 50MW above for hydro/renewables(vide amendment Dtd.3rd
Sep,2010)
• Bulk Consumer – 100 MW and above
• for hydro/renewables < 50 MW individually but
collectively aggregated to >= 50MW through lead generator
– Medium Term Open Access (MTOA) and Long Term
Access (LTA)
• a generating station including captive generating plant
• a consumer
• an Electricity Trader or
• a distribution licensee
Chapter I: Definitions
• Connectivity:
– for a generating station, including a captive generating
plant, a bulk consumer or an inter-State transmission
licensee means the state of getting connected to the inter-
State transmission system

• Long Term Access:

– Right to use the inter-State transmission system for a
period exceeding 12 years but not exceeding 25 years

• Consumer
– means any consumer eligible to avail open access as specified by
the State Commission under sub-section (2) of section 42 of the
Act;
 Definitions….. continued
• Long-term customer:
– means a person who has been granted long-term
access and includes a person who has been allocated
central sector generation that is electricity supply from a
generating station owned or controlled by the Central
Government;

• Medium-term open access:

– means the right to use the inter-State transmission
system for a period exceeding 3 months but not
exceeding 3 years;

• Medium-term customer
– means a person who has been granted medium-term
open access;
Definitions….. continued
• Nodal agency:
– means the Central Transmission Utility referred to in
regulation 4 hereof

• Regional entity
– means a person whose metering and energy
accounting are done at the regional level;

• Short-term open access

– has the meaning ascribed thereto in the Central
Electricity Regulatory Commission (Open Access in
inter-State Transmission) Regulations, 2008;
Definitions….. continued
• State network:
– means the intra-State transmission system owned by
the State Transmission Utility, transmission licensee
or the network of any other person who has been
granted licence by the State Commission to establish
or operate distribution lines within the State;
• Stranded transmission capacity:
– means the transmission capacity in the inter-State
transmission system which is likely to remain
unutilized due to relinquishment of access rights by a
long-term customer in accordance with regulation 16.
Chapter 2: General Provisions
• Scope
– Provided that a generating station, including captive generating
plant or a bulk consumer, seeking connectivity to the inter-State
transmission system cannot apply for long-term access or
medium-term open access without applying for connectivity:
– Provided further that a person may apply for connectivity and
long-term access or medium-term open access simultaneously.

• Nodal Agency
– The nodal agency for grant of connectivity, long-term access and
medium term open access to the inter-State transmission system
shall be the Central Transmission Utility.
General provisions….. contd
• Filing of Application

– Applications for grant of connectivity or long-term access or

medium-term open access shall be made to the nodal agency

– an application for connectivity is not required to be made by any

transmission licensee, since transmission system planning is
carried out in a coordinated manner by the Central Transmission
Utility and the Central Electricity Authority

– an inter-State transmission licensee other than Central

Transmission Utility, nevertheless, shall sign a connection
agreement with the Central Transmission Utility, as provided for
in Clause (5) of regulation 8 of these Regulations.
General provisions …contd
Application Fees
Sl No Quantum of power to Application fees ` lakhs
be injected/off taken
into/from ISTS for for for
Connectivity LTA MTOA
1 Up to 100MW 2 2 1
2 More than 100MW 3 3 2
and up to 500MW
3 More than 500MW 6 6 3
and upto 1000MW
4 More than 1000MW 9 9 4
General provisions …contd

• Time frame for processing

Chapter 3: Connectivity
• Grant of Connectivity
• The application for connectivity shall contain details such as,
proposed geographical location of the applicant, quantum of power to
be interchanged, that is the quantum of power to be injected in the
case of a generating station including a captive generating plant and
quantum of power to be drawn in the case of a bulk consumer, with
the inter-State transmission system and such other details as may be
laid down by the Central Transmission Utility in the detailed procedure

• Provided that where after filing of an application, there has been any
material change in the location of the applicant or change in the
quantum of power to be interchanged with the inter-State transmission
system, by more than :
– 100 MW in the case of generating station >= 250MW or CPP with
exportable capacity of > = 250MW
– 40% of the Installed capacity in the case of hydro station from 50
to 250MW
– 40% of the aggregate Installed capacity in the case of aggregated
generators individually < 50MW
Chapter 3: Connectivity
• Grant of Connectivity
1. Provided further that the application by the applicant in case of
aggregated capacity >= 50MW but individually < 50MW defined under
shall be considered by CTU only if all the generators, whose aggregate
capacity is connected at the single connection point, formalize a written
agreement among themselves that the lead generator shall act on behalf
of all the generators to undertake all operational and commercial
responsibilities for all the collective generators connected at that point in
following the provisions of the Indian Electricity Grid Code and all other
Regulations of the Commission, such as grid security, scheduling and
dispatch, collection and payment/ adjustment of Transmission charges,
UI charges, congestion and other charges, etc., and submit a copy of the
agreement to the CTU, with the application of connectivity, along with a
copy to the respective RLDC in whose control area it is located.
Amended vide order Dtd. 3rd Sep,2010
2. On receipt of the application, the nodal agency shall, in consultation and
through coordination with other agencies involved in inter-State
transmission system to be used, including State Transmission Utility, if
the State network is likely to be used, process the application and carry
out the necessary interconnection study as specified in the Central
Electricity Authority (Technical Standards for Connectivity to the Grid)
Regulations, 2007.
Connectivity…. contd
3. While granting connectivity, the nodal agency shall specify the name of the sub-
station or pooling station or switchyard where connectivity is to be granted. In
case connectivity is to be granted by looping-in and looping-out of an existing or
proposed line, the nodal agency shall specify the point of connection and name of
the line at which connectivity is to be granted. The nodal agency shall indicate the
broad design features of the dedicated transmission line and the timeframe for
completion of the dedicated transmission line.

4. The applicant and all Inter-State Transmission Licensees including the Central
Transmission Utility shall comply with the provisions of Central Electricity
Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007.

5. The applicant or inter-State transmission licensee, as the case may be, shall sign a
connection agreement with the Central Transmission Utility or inter-State
transmission licensee owning the sub-station or pooling station or switchyard or
the transmission line as identified by the nodal agency where connectivity is being
granted.
Provided that in case connectivity of a generating station, including captive
generating plant or bulk consumer is granted to the inter-State transmission
system of an inter-State transmission licensee other than the Central Transmission
Utility, a tripartite agreement as provided in the Central Electricity Authority
(Technical Standards for Connectivity to the Grid) Regulations, 2007 shall be
signed between the applicant, the Central Transmission Utility and such inter-State
transmission licensee.
 Connectivity … contd
6. The grant of connectivity shall not entitle an applicant to interchange
any power with the grid unless it obtains long-term access, medium-
term open access or short-term open access.

7. A generating station, including captive generating plant which has been

granted connectivity to the grid shall be allowed to undertake testing
including full load testing by injecting its infirm power into the grid
before being put into commercial operation, even before availing any
type of open access, after obtaining permission of the concerned RLDC,
which shall keep grid security in view while granting such permission.
This infirm power from a generating station or a unit thereof, other than
those based on non-conventional energy sources, the tariff of which is
determined by the Commission, will be governed by the Central
Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2009. The power injected into the grid from other
generating stations as a result of this testing shall also be charged at UI
rates.

8. A thermal generating station of 500 MW and above and a hydro

generating station or a generating station using renewable sources of
energy of capacity of 250 MW and above, other than a captive
generating plant, shall not be required to construct a dedicated
transmission line to the point of connection and such station shall be
taken into account for coordinated transmission planning by the
Central Transmission utility and Central Electricity Authority
Amended vide Order Dtd. 3rd Sep,2010
Chapter 4 : LTA & MTOA
• Criteria for Grant:
– CTU to consider augmentation of ISTS proposed
under the plans made by the Central Electricity
Authority.
– MTOA shall be granted
• if the resultant power flow can be accommodated in the
existing transmission system or the transmission system
under execution:
• no augmentation shall be carried out to the transmission
system for the sole purpose of granting medium-term open
access:
• Construction of a dedicated transmission line shall not be
construed as augmentation of the transmission system for
the purpose
 LTA & MTOA…. contd
Relative Priority:
1. Applications for long-term access or medium-term open access shall be
processed
• First-come-first-served basis separately for each of the aforesaid types
of access:
• Applications received during a month shall be construed to have arrived
concurrently.
• While processing applications for medium-term open access received
during a month, the application seeking access for a longer term shall
have higher priority.
• In the case of applications for long-term access requiring planning or
augmentation of transmission system, such planning or augmentation,
as the case may be, shall be considered on 30th of June and 31st of
December in each year in order to develop a coordinated transmission
plan, in accordance with the perspective transmission plans
• If an intra-State entity is applying for long-term access or medium-term
open access, concurrence of the State Load Despatch Centre shall be
obtained in advance and submitted along with the application to the
nodal agency
2. State Load Despatch Centre shall convey its concurrence to the applicant
within ten working days
• Where necessary infrastructure required for energy metering and time-
blockwise accounting already exists and required transmission capacity
in the State network exists
3. In case SLDC decides not to give concurrence, the same shall be
communicated to the applicant in writing, giving the reason for refusal within
the above stipulated period.
LTA & MTOA… contd
Interface Meters
1. Interface meters shall be installed –
– by the Central Transmission Utility for and at the cost of
the regional entities;
– by the State Transmission Utility for and at the cost of
the State entities.

2. Interface meters for the regional entities shall be open for

inspection by
– any person authorized by the Central Transmission Utility
and the Regional Load Despatch Centre.

3. Interface meters for the intra-State entities shall be open

for inspection
– by any person authorized by the State Transmission
Utility or the State Load Despatch Centre.
Chapter 5 : Long Term Access
• Application
– Name of the entity/ies
– Quantum of power to be transacted
– Name of the target region where electricity is proposed to be
interchanged in case augmentation required but exact
source/destination not firmed up
– Exact source of source of supply/destination of offtake to be
firmed up at least three years prior to availing intended date of
LTA
– Any other information sought by Nodal agency
– BG of Rs.10000/- per MW of power
• In favor of Nodal agency
• Validity till execution of LTA in case of augmentation
• Till operationalization of LTA when no augmentation reqd
• Encashment in case of withdrawal or relinquishment of
LTA rights prior to operationalization for no augmentation
• Discharged on submission of new BG for construction ph
in case of augmentation
Long Term Access….. contd
System Studies
1. Nodal agency to carry out the necessary system studies
through coordination with agencies including State
Transmission Utility, if the State network is likely to be
used
2. Based on the system studies, the nodal agency shall
specify the inter- State transmission system that would
be required to give long-term access. In case
augmentation to the existing inter-State transmission
system is required, the same will be intimated to the
applicant.
3. The Empowered Committee established in accordance
with the ‘Tariff based Competitive-bidding Guidelines for
Transmission Service’ issued by the Central
Government, may identify one or more elements needed
for augmentation of inter-State transmission system to
be developed through tariff based competitive bidding
Long Term Access….. contd
Communication of Estimate of Transmission Charges, etc.
• the date from which long-term access shall be granted
• an estimate of the transmission charges likely to be payable based on
the prevailing costs, prices and methodology of sharing of transmission
charges specified by the Commission.

Execution of Long-term Access Agreement

The applicant shall:
• sign an agreement for long-term access with the CTU.
• shall sign a tripartite long-term access agreement with the Central
Transmission Utility and the inter-State transmission licensee in case of
seeking LTA from ISTS licensee other than CTU
• The long–term access agreement shall contain
– the date of commencement of long-term access
– the point of injection of power into the grid
– point of drawal from the grid
– the details of dedicated transmission lines, if any
– In case augmentation of transmission system is required, the long-
term access agreement shall specify:
• the time line for construction of the facilities
• the bank guarantee required
• other details in accordance with the procedure.
Long Term Access…..contd
Information to RLDC and SLDC
Immediately after grant of long-term access, the
nodal agency shall inform the RLDCs and the SLDCs
concerned so that they can consider the same while
processing requests for grant of short-term open
access

Renewal of Term for Long-term access

– On expiry the LTA shall stand extended on a written request
provided by the long-term customer
– LTA customer to mention the period for extension that is
required
– The written request shall be submitted by the customer to
the Central Transmission Utility at least six months prior to
the date of expiry
– In case no written request, access shall stand withdrawn.
Long-term Access… contd
Relinquishment of access rights
1. A long-term customer may relinquish the long-term access rights fully
or partly before the expiry of the full term of long-term access, by
making payment of compensation for stranded capacity as follows:-

(a) Long-term customer who has availed access rights for at least 12 years

(i) Notice of one (1) year –

application to the CTU at least 1 (one) year prior to the date from which
such customer desires to relinquish the access rights, there shall be no
charges.

(ii) Notice of less than one (1) year –

application to the CTU at any time lesser than a period of 1 (one) year
customer shall pay an amount equal to 66% of the estimated
transmission charges (net present value) for the stranded transmission
capacity for the period falling short of a notice period of one (1) year.
Long-term Access… contd
Relinquishment of access rights..ctd

(b) Long-term customer who has not availed access rights for at least
12 (twelve) years

– such customer shall pay an amount equal to 66% of the

estimated transmission charges (net present value) for the
stranded transmission capacity for the period falling short of
12 (twelve) years of access rights:
– shall submit an application to CTU at least 1 (one) year prior to
the date
– in case a customer submits an application for relinquishment
of long term access rights at any time at a notice period of less
than one year, then such customer shall pay an amount equal
to 66% of the estimated transmission charges (net present
value) for the period falling short of a notice period of one (1)
year, in addition to 66% of the estimated transmission charges
(net present value) for the stranded transmission capacity for
the period falling short of 12(twelve) years of access rights.
Long-term Access ….. contd
• The discount rate that shall be applicable for computing
the net present value as referred to in sub-clause (a) and
(b) of clause (1) above shall be the discount rate to be
used for bid evaluation in the Commission’s Notification
issued from time to time in accordance with the
Guidelines for Determination of Tariff by Bidding Process
for Procurement of Power by Distribution Licensees
issued by the Ministry of Power.

• The compensation paid by the long-term customer for

the stranded transmission capacity shall be used for
reducing transmission charges payable by other long-
term customers and medium-term customers in the year
in which such compensation payment is due in the ratio
of transmission charges payable for that year by such
long term customers and medium-term customers.
Chapter 6: MTOA
Application for Medium-term Open Access
• The application for grant of medium-term open access
shall contain
– the point of injection into the grid, point of drawal from the grid
and the quantum of power for which medium-term open
access has been applied for.
• The start date of the medium-term open access shall
not be
– earlier than 5 months and
– not later than 1 year from the last day of the month in which
application has been made.
System Studies by the Nodal Agency
• On receipt of the application, the nodal agency shall, in
consultation and through coordination with other agencies
involved in inter-State transmission system to be used, including
State Transmission Utility, if the State network is likely to be used,
process the application and carry out the necessary system
studies as expeditiously as possible so as to ensure that the
decision to grant or refuse medium-term open access is made
within the timeframe
 MTOA…… contd
Grant of MTOA

The applicant shall:

• sign an agreement for MTOA with the CTU.
• shall sign a tripartite agreement with the Central Transmission
Utility and the inter-State transmission licensee in case of
MTOA from ISTS licensee other than CTU

• The MTOA shall contain

– the date of commencement of long-term access
– the point of injection of power into the grid
– point of drawal from the grid
– the details of dedicated transmission lines, if any
– Immediately after grant of MTOA, the nodal agency shall
inform the RLDCs and the SLDCs concerned so that they
can consider the same while processing requests for grant
of short-term open access
 MTOA ….. contd
• Execution of Dedicated Transmission Line
Medium-term customer may arrange for execution of the
dedicated transmission line at its own risk and cost before the
start date of the mediumterm open access.

• No overriding preference
On the expiry of period of the medium-term open access, the
medium-term customer shall not be entitled to any overriding
preference for renewal of the term.

• Exit option for medium-term customers

A medium-term customer may relinquish rights, fully or partly, by
giving at east 30 days prior notice to the nodal agency: Provided
that the medium-term customer relinquishing its rights shall pay
applicable transmission charges for the period of relinquishment
or 30 days which ever is lesser.
Chapter 7: Conditions of LTA & MTOA
Curtailment
1. Transmission constraints or in the interest of grid
security - transactions already scheduled may be
curtailed by the Regional Load Despatch Centre.

2. Subject to provisions of the Grid Code and any other

regulation specified by the Commission,
• the short-term customer shall be curtailed first
followed by the
• medium-term customers, which shall be followed
by
• the long term customers and
• amongst the customers of a particular category,
curtailment shall be carried out on pro rata basis.
Conditions of LTA & MTOA
• Transmission Charges

– The transmission charges for use of the inter-State transmission

system shall be recovered from the long-term customers and the
medium-term customers in accordance with terms and conditions
of tariff specified by the Commission from time to time

– Provided that if the State network is also being used in the access
as a part of inter-State transmission system for the conveyance of
electricity across the territory of an intervening State as well as
conveyance within the State which is incidental to such inter-
State transmission of electricity, recovery of charges for such
State network and terms and conditions thereof shall be in
accordance with the regulation as may be specified by the
Commission under 25 section 36 of the Act for intervening
transmission facilities, if such charges and terms and conditions
cannot be mutually agreed upon by the licensees;

– Provided that any disagreement on transmission charges for

such State network as specified above, shall not be the sole
reason for denying access and either party may approach the
Commission for determination of transmission charges for such
State network.
Conditions of LTA & MTOA
• Detailed Procedure
1. Subject to the provisions of these regulations,
• the Central Transmission Utility shall submit the detailed
procedure to the Commission for approval within 60 days of
notification of these regulations in the Official Gazette:

• Provided that prior to submitting the detailed procedure to

the Commission for approval, the Central Transmission
Utility shall make the same available to the public and invite
comments by putting the draft detailed procedure on its
website and giving a period of one month to submit
comments;

• Provided further that while submitting the detailed procedure

to the Commission, the Central Transmission Utility shall
submit a statement indicating as to which of the comments
of stakeholders have not been accepted by it along with
reasons thereof.
Conditions of LTA & MTOA
2.The detailed procedure submitted by the CTU shall, in
particular, include—
(a) The proforma for the connection agreement
(b) The proforma for the long-term access agreement
(c) The time line for phasing of construction/modification of the transmission
elements by the Central Transmission Utility/transmission licensee, as the
case may be, and the coming up of generation facilities or facilities of bulk
consumer, as the case may be, so as to match the completion times of the
two;
(d) Aspects such as payment security mechanism and bank guarantee during
the period of construction operation. Provided that the bank guarantee
during construction phase shall not exceed Rs. 5 lakh per MW of the total
power to be transmitted by that applicant through inter-State transmission
system.
(d) The proforma for the medium-term open access: agreement, referred to in
the second proviso to clause (1) of regulation 21 above.
(e) Provisions for collection of the transmission charges for inter- State
transmission system from the long-term customers or medium-term
customers, as the case may be, by the transmission licensee or the Central
Transmission Utility as and when so designated in accordance with the first
proviso to clause (1) of regulation 29 hereof and disbursement to the
Central Transmission Utility and/or the transmission licensees as the case
may be.
Conditions of LTA & MTOA
• Fees and charges for the Regional Load Despatch Centre
and the State Load Despatch Centre

1.The fees and charges for the Regional Load

Despatch Centre including charges for the
Unified Load Despatch and Communication
Scheme shall be payable by the long-term
customer and medium-term customer as may
be specified by the Commission.

2.The fees and charges for the State Load

Despatch Centre shall be payable as
applicable.
Conditions of LTA & MTOA
• Payment of transmission charges and Fees and Charges for the Regional Load
Despatch Centre
1. The transmission charges in respect of the LTA and MTOA
customer
• payable directly to the transmission licensee:
• CTU may be designated by the Commission as agency for the
purpose of collecting and disbursing the transmission charges
for ISTS
• CTU shall enter into agreements with the long-term customers
and medium-term customers for collection of transmission
charges and with the transmission licensees whose inter-State
transmission system is being used
• disbursement of transmission charges: pro rata to the
transmission charges payable to the transmission licensees
and to the Central Transmission Utility
• Provided also that the CTU shall be entitled to reimbursement
of reasonable costs incurred by it in collecting the
transmission charges

3. The fees and charges for RLDCs (including the charges for Unified
Load Despatch Scheme) and SLDCs shall be payable by the long-
term customer and medium-term customer directly to the RLDCs
or the SLDCs concerned.
Conditions of LTA & MTOA
Unscheduled Inter-change (UI) Charges
1. Scheduling of all transactions pursuant to grant of long-
term access and medium-term open access shall be
carried out on day-ahead basis in accordance with the
Grid Code.
2. Based on net metering on the periphery of each regional
entity, composite accounts for Unscheduled Interchanges
shall be issued for each regional entity on a weekly cycle:
Provided that Unscheduled Inter-changes accounting for
intra-State entities shall not be carried out at the regional
level.
3. The State utility designated for the purpose of collection or
disbursement of the Unscheduled Interchanges charges
from or to the intra- State entities shall be responsible for
timely payment of the State’s composite dues to the
regional Unscheduled Interchanges Pool Account Fund.
Conditions of LTA & MTOA
4. Any mismatch between the scheduled and the actual drawal at drawal
points and scheduled and the actual injection at injection points for the
intra- State entities shall be determined by the concerned State Load
Despatch Centre and covered in the intra-State Unscheduled
Interchanges accounting scheme.

5. Unless specified otherwise by the State Commission concerned, the

Unscheduled Interchanges rate for intra-State entity shall be 105% (for
overdrawals or under generation) and 95% (for under-drawals or over
generation) of the Unscheduled Interchanges rate at the periphery of
regional entity.

Transmission Losses
The buyers of electricity shall bear apportioned losses in the
transmission system as estimated by the Regional Power Committee.

Redressal Mechanism
All disputes arising out of or under these regulations shall be decided
by the Commission on an application made in this behalf by the
person aggrieved.
 Chapter 8: Information System
• The nodal agency shall post the following documents / information on its
website in a separate web-page titled “Long-term access and Medium-
term open access information”:
a) These regulations;
b) Detailed procedure;
c) List of applications, separately, for LTA and MTOA received by the nodal agency
along with necessary details.
d) Separate lists for LTA and MTOA granted, indicating-
(i) Name of customers;
(ii) Period of the access granted (start date and end date);
(iii) Point or points of injection;
(iv) Point or points of drawal;
(v) Transmission systems used (in terms of regions and States);
(vi) Capacity (MW) for which access has been granted.
e) List of applications where approval for connectivity or LTA or MTOA, as the case
may be, has not been granted along with reasons thereof.
• nodal agency to take steps in accordance with the requirements herein
to provide as much information suo motu to the public at regular
intervals through various means of communications, including internet,
so that information is disseminated widely and in such form and manner
which is easily accessible to the public.
Chapter 9: Repeal and Savings

(1) On commencement of these regulations, Regulation No.’s

4(1)(a), 4(ii), 5(i), 6(i), 7, 8(i), 9, 10, 11, 12, 16(i), 18, as far
as it applies to long-term customers, and 31(i) of the
Central Electricity Regulatory Commission (OpenAccess in
inter-State Transmission) Regulations, 2004, shall stand
repealed.
(2) Notwithstanding anything contained in clause (1), long-
term access granted in accordance with the Central
Electricity Regulatory Commission (Open Access in inter-
State Transmission) Regulations, 2004 shall continue to be
valid till the expiry of the term of long-term access.
 Issues
• Ensuring commitment of either parties (Jan 2004 regulation)

 BPTA was signed and BG was submitted

In the new regulation (Aug 2009) :

Readiness of the generation is more critically monitored for aspects like land
under possession, water , coal , environmental
Developers should realistically bring out the factual position so that an
adequate transmission proposal can be evolved and taken further after
examination from various aspects.
Any under-provision or over-provision of transmission network leads to Grid
operational problems like congestion, over-voltage situation – Ultimately
causing constraints in generation or ensuring power availability to
consumer.
As per IEGC ; Generation developers have apply for signing of connection
agreement also ensureapproval under Sec 68 of Act from Govt of India is
obtained
 PROCEDURES FOR
CONNECTIVITY/LTA/MTOA
 CONNECTIVITY PROCEDURES
• Eligibility

• Nodal agency

• No additional connectivity for same capacity

• Connection agreement / tripartite agreement

• Information to be submitted alongwith connectivity application:

– Site identification and land acquisition
– Environmental clearance
– Forest clearance(if applicable)
– Fuel arrangements
– Water linkage
– Affadavit alongwith these docs as per format CON-1

• Application as per Format CON-2

– Application during a month treated as received concurrently
PROCESSING TIMEFRAMES
 CONNECTIVITY PROCEDURES

• change in connectivity requirement Eligibility

– fresh application for change in requirement by > 100Mw/40% of IC, aggregate IC as
per format CON-2
• Intimation to applicant for grant of connectivity within 60days of last day of
month on which app. Received as per –CON3
• Additional information as per CON-4 at least > 2 years prior to physical
connectivity
• Further processing by CTU & intimation of connectivity details as per CON-5
• Connection agreement as per CON-6 & tripartite agreement in case of any
other ISTS licensee
• Nodal agency to provide copy of connectivity agreement to concerned
SLDC/RLDC
 CONNECTIVITY PROCEDURES
• No interchange of power except LTA/MTOA/STOA
• A generating station, including captive generating plant which has been
granted connectivity to the grid shall be allowed to undertake testing
including full load testing by injecting its infirm power into the grid before
being put into commercial operation, even before availing any type of open
access, after obtaining permission of the concerned Regional Load Despatch
Centre, which shall keep grid security in view while granting such
permission. This infirm power from a generating station or a unit thereof,
other than those based on non-conventional energy sources, the tariff of
which is determined by the Commission, will be governed by the Central
Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2009. The power injected into the grid from other generating
stations as a result of this testing shall also be charged at UI rates.
• In the procedures
– drawal of power for commissioning activities mentioned as allowable
without OA
– Station shall submit likely date of synchronization, likely quantum and
period of injection of infirm power before being put into commercial
operation to the SLDC and RLDC concerned at least one month in
advance.
 CONNECTIVITY PROCEDURES
• Conditions for construction of dedicated transmission system by CTU
• BG as per con-7 2.5L/mw FOR < 20kM & 5L/MW for > 20MW or only for
connectivity work in case line constructed by applicant
• Agreement with CTU as per CON-8
• For Connectivity/LTA concurrently max 5L/MW
• Time frame for commissioning from dt. of signing of BPTA/TSA
• Sharing of dedicated line
 MTOA PROCEDURES
• Nodal agency : CTU
• earlier than 5 months and later than 1 year from the last day of the month in
which application has been made
• MTOA  > 3 mo & < 3yrs with exception cl. For delay in CTU construction
• MTOANo augmentation of transmission system is envisaged &
Construction of dedicated transmission line shall not be construed as
augmentation of the transmission system.
• A power transaction involving combination of both multiple injections and
one drawl point in case the MTOA is sought by a single bulk consumer shall
not require filing of separate applications.
• Eligibility for MTOAgenerating station/captive generating plant/
consumer/Electricity Trader/distribution licensee/State Government owning
some quantum of power (like free power given to the State Government in
which the hydro station is located, equity power given to a State for allowing
a power station to be set up in the State), who desires to utilize ISTS for Inter
state transfer of power, provided the power station from which the power is
being sourced or the load, as the case may be, is already connected to the
grid, whether the State grid or the inter-State grid, or is likely to get
connected to the grid before the intended start date of MTOA
• Documentary evidences
 MTOA PROCEDURES

• No application for medium-term open access without applying for connectivity(if

not connected)
Whether connectivity reqd. in case embedded in a control area?
• Correctness of Application info to affirmed vide affidavit MTOA-I
• Application  MTOA-II with SLDC clearances
• SLDC clearances  MTOA-III within 10days or reasons for refusal
• Application fees:
 MTOA PROCEDURES
• MTOA timelines:
– All apps. In a month construed to have come together on last day of
month(M0)
– Approval on FCFS basis
– CTU studies & circulation to SLDC/RLDCs 15th of M1
– Calculation methodology for TTC , RM
– Comments on studies upto 25th of M1
– Provisional decision to grant MTOA  10th of M3
– Within a month, priority more for those seeking MTOA for longer duration
• CTU shall notify the following on 31st day of March of each year:
• Total Transfer Capability (TTC) for 4 (four) years. This may be revised by CTU due
to change in anticipated network topology or change of anticipated generation or
load at any of the nodes, giving reasons for such change. Transmission
Reliability Margin considered along with basis.
• Available Transfer Capability (ATC) for MTOA will be worked out after allowing the
already approved applications for Long-term access, Medium Term Open Access
and Transmission reliability margin.
• The grant of MTOA shall be subject to ATC as per MTOA-IV
• Sharing of transmission charges agreement  MTOA-V-30days
• BG for 2 months transmission charges – 30days bi-annual review
• Informtion to RLDC/SLDCs
• Tripartite agreement for other ISTS licensee
• No over-riding preference for previous holder
 MTOA SCHEDULING
• Priority
Underutilization of corridor
• If request for scheduling is consistently (for more than 5 days) lower than the
capacity granted by the Nodal Agency (i.e.; CTU), RLDC may issue a notice to
such MTOA customer asking the reasons for such under-utilization. The
MTOA customer shall furnish the reasons for such under-utilization and will
provide such details like the reduced requirement, likely period, etc. by the
following day. The un-utilized transfer capability will then be released for
scheduling of Short-term open access transaction.
• No refund of transmission charges shall be made due to above curtailment
• Transmission cherges as per Terms & conditions of Tariff-9-14
• Billing/collection & disbursement by CTU & adminstrative charge payable
• STU charges as per SERC norms
• Irrevocable revolving LC for 105% of average monthly charges 15 days
before MTOA commencement
• BG of 2mo also to be concurrently < 3mo prior to scheduled commencement
date and > 1mo after expiry of MTOA period
• RLDC/ULDC fees & charges payable to RLDC
• BG encashed in case of default & to be recouped
• Downsizing of application BG adjusted after expiry of MTOA period
 MTOA EXIT/DOWNSIZING
• At least 30 days notice
• Exit charges  minimum of [30 days of period of relinquishment]
• Exit charges used for reducing transmission charges payable by other long-
term customers and medium-term customers in the year in which such
compensation payment is due in the ratio of transmission charges payable
for that year by such long term customers and medium-term
• For upward revision fresh application
 LTA PROCEDURES
• Eligibility conditions same as MTOA
• For LTA applicant:
(i) already be connected to grid, whether the State grid or the inter-State grid,
(ii) have already been granted permission for connectivity to the grid
(iii) have already applied for connectivity to the grid
(iv) be making application for connectivity to the grid simultaneously with
this application in line with the Regulations

• Documents with application

• LTA 12 -25 Yrs period
• May require Transmission augmentation
• Provision of target regions in case PPAs(purchasing entities) not firmed up
• applicant shall have to firm up exact source of supply or destination, as the
case may be, at least 3 years prior to the intended date of availing long term
access at least for a capacity equivalent to 50% of the quantum of power for
which LTA has been sought for through signing of PPA with such grid
connected entity(ies)/ State Utilities.
 LTA PROCEDURES
• The augmentation of the transmission system as identified for grant of LTA
shall be undertaken only after fulfillment of above condition. In case a
common system augmentation/strengthening has been identified for more
than one generator, then the above condition of signing of PPA for at least
50% of LTA sought for, with the grid connected entity(ies)/ State Utilities,
shall have to be met by all the generators.

• In the event of failure of any generator meeting above condition of 3 years

prior to the intended date of availing long term access, the implementation of
augmentation/strengthening of system shall be undertaken in due
consideration of the same and if necessary with the approval of CERC for the
same.(Grant of regulatory approval for execution of ISTS schemes to CTU)

• For the balance capacity (not exceeding 50% of LTA sought for) for which
exact source of supply or destination could not be firmed up on long-term
basis, the augmentation/system strengthening further from the target region
shall be taken up only after identification of exact source/destination. CTU
shall be allowed up to 3 years time for such augmentation/system
strengthening from the target region to the exact source/destination. During
such period the applicant shall be liable to pay the transmission charges up
to the target region.
 LTA PROCEDURES
• Payment of such transmission charges for the balance capacity for which
exact source on long term basis is not known, shall not entitle the applicant
any right over the transmission system up to the target region and CTU may
release this balance transmission capacity up to target region for short-term
open access or the medium term open access till the applicant firms up
source/destination on long-term basis and its operationalisation.

• However, applicant may seek short-term open access or the medium term
open access separately till such time it gets long-term access for the balance
capacity as any other short-term open access customer or the medium term
open access customer.

• As it takes about 9 months for pre-investment activities and in addition

construction time for the transmission project as given in the CERC (Terms
and Conditions of Tariff)Regulations, 2009, applicant should expedite the
finalization the beneficiaries and intimate to CTU. The date of commencement
of LTA shall be applicable from atleast 3 years and 9 months (9 months time
required for project preparation and investment approval) from firming up
beneficiaries and signing of BPTA/TSA with them.
• Application for change in quantum/location as per MTOA procedures
• Nodal agency  CTU
 LTA PROCEDURES
• Application in Format LTA-2 with affidavit as per LTA-1
• Period for 12 to 25 yrs
• Not earlier than 3 yrs from last date of month of receipt of application
• Multiple injection to single pt or single injection to multiple point allowable
• Connectivity information to be furnished
• Embedded utilities  concurrance as per LTA-3
• BG of Rs.10,000/MW as per LTA-4
• BG will stand discharged with operationalization of long-term open access,
when augmentation of transmission system is not required or the
submission of appropriate bank guarantee required to be given by the
applicant to the CTU during construction phase when augmentation of
transmission system is required

• The bank guarantee may be encashed by the nodal agency,

(i) if the application is withdrawn by the applicant or
(ii) the long-term access rights are relinquished prior to the
operationalisation of such long-term access when augmentation of
transmission system is not required.
 LTA PROCEDURES
(iii) If the applicant fails to sign the Long Term Access Agreement with CTU
or a tripartite agreement with CTU and transmission licensee, as the case
may be, and fails to furnish appropriate BG for construction phase, within
stipulated time as indicated in the intimation letter.
(iv) If the applicant fails to revalidate the earlier furnished BG at least 30 days
prior to its expiry.
(v) If the applicant fails to firm up beneficiaries,3 years prior to intended date
of Long Term Access. Genuine requests for extension of time shall be
suitably accommodated on merit upon furnishing of documentary
evidence(s).
• Empowered Committee established in accordance with the ‘Tariff based
Competitive-bidding Guidelines for Transmission Service’ issued by the
Central Government, may identify one or more elements needed for
augmentation of inter-State transmission system to be developed through
tariff based competitive bidding:
• Provided that the agency identified to construct one or more elements
needed for augmentation of the inter-State transmission system for long-term
access shall be eligible for grant of transmission licence in accordance with
the regulations specified by the Commission from time to time and the
guidelines for competitive bidding for transmission issued by the Central
Government.
 LTA - APPLICATION PROCESSING
• The applications shall be processed on first-come-first-served basis. The
applications received during a month and upto the last day of the month shall
be construed to have arrived concurrently.
• System studies to be carried out by CTU methodology for TTC, RM
calculations similar to MTOA
• In case system augmentation not reqd CTU proposal to be discussed in
RPCs & planning forum & grant to be given within 120days
• Transmission system augmentation planning shall be considered on 30th of
June and 31st of December in each year in order to develop a coordinated
transmission plan. The applications received during 1st half of the calendar
year shall be considered together by 30th June and finalized by 31st Dec of
the same calendar year. Similarly application received during the 2nd half of
the calendar year shall be considered together by 31st December and
finalized by 30th June of the next calendar year. The intimation for grant of
LTA as per the provisions of Regulations shall be communicated to the
applicant and RLDC/NLDC with copy to all the constituent States of the
region(s) involved, transmission licensee (if any), concerned RPC(s) and CEA
• While granting long-term access in ISTS, the nodal agency shall
communicate to the applicant, the date from which long-term access is
granted and an estimate of the transmission charges likely to be payable
 LTA - APPLICATION PROCESSING
• Confirmation of LTA where system strengthening not required:
– Grant of LTA within 120days as per LTA-5
– Applicant to enter into BPTA/TSA within 30days
– LTA agreement/tripartite agreement within 30days
• Confirmation of LTA where system strengthening required:
– Same with system strengthening elements identified
– Nodal agency may further optimize without disadvantage to applicant
• Cosntruction Ph BG to be restricted to Rs.5L/MW in case of concurrent
application of connectivity/LTA & construction of dedicated line not required

UI accounting:
• Unless specified otherwise by the State Commission concerned, the
Unscheduled Interchanges rate for intra-State entity shall be 105% (for
overdrawals or under generation) and 95% (for under-drawals or over
generation) of the Unscheduled Interchanges rate at the periphery of regional
entity
 LTA - APPLICATION PROCESSING
• In case of applicants who have already firmed up the entity or entities to
whom electricity is proposed to be supplied or from whom electricity is
proposed to be procured for the entire quantum of power for which LTA has
been sought through signing of PPA or, in the case of Inter-State Generating
Stations owned by the Central Government or Ultra Mega Power Projects
coming up through the initiative of the Central Government, allocation of
power to various beneficiaries as notified by it, then the applicant shall not
be required to submit Bank Guarantee(BG) with the application form or the
Construction Stage BG. In such cases, however, the augmentation of the
transmission system as identified for grant of LTA shall be undertaken only
after agreement of the beneficiaries in Standing Committee on Power System
Planning/Regional Power Committee for bearing its transmission charges.
The applicant shall submit a copy of PPA or notification made by Govt. of
India, whichever is applicable. The long-term access agreement, may, in such
cases be directly signed by the beneficiaries with the CTU or tripartite
agreement with the CTU and ISTS, as the case may be
• System strengthening work to be taken up by CTU/Licensee/empowered
committee or on basis of competitive bidding
• Applicant  90days ahead w.r.t COD/commercialization
• Nodal 60days ahead intimation w.r.t payment security mech & intimation to
RLDCs/SLDCs
 LTA - APPLICATION PROCESSING
• Priority
• Transmission constraintsCurtailment nor refunds
• LTA may be extended as per the desired extension period on request by LTA
holder at least 6months in advance
Surrender of LTA rights
• Compensation for stranded transmission capacity for LTA customers having
availed access rights for 12yrs min
– Notice period of 1yrs no charges
– 66% of transmission charge(NPV) corr. to period which fell short of the
notice period of 1 year
• Compensation for stranded transmission capacity for LTA holders who have
availed access rights for less than 12yrs
– With a notice period of 1 yr transmission charges(NPV) corr. to 66% of
transmission charges for the period falling short of 12yrs
– For notice < 1yr, 66% of transmission charges(NPV) for the period short of notice
period of 1 year
• discount rate for NPV  the discount rate to be used for bid evaluation in the
Commission‟s Notification issued from time to time in accordance with the
Guidelines for Determination of Tariff by Bidding Process for Procurement of
Power by Distribution Licensees issued by the Ministry of Power
 LTA - APPLICATION PROCESSING
• Compensation reducing transmission charges payable by other long-term
customers and medium-term customers in the year in which such
compensation payment is due in the ratio of transmission charges payable
for that year by such long-term customers and medium-term customers
• However, some of the dedicated transmission system indicated at Annexure-
3 i.e. from the generation switchyard up to various pooling
points/substations shall be built, owned and operated by POWERGRID. The
transmission charges for these dedicated transmission system shall be paid
by the concerned generation developers.
• The charges for the transmission system (other than the dedicated system)
indicated at Annexure-3 would be borne by the generation developers in
proportion to capacity for which long term open access has been sought.
The transmission charges will be corresponding to phased development of
transmission system and in each time frame, charges should be shared by all
the generation developer whose generation projects are scheduled to come
up in that time frame or earlier.
• The long term Open Access Applicants would also have to share the
applicable Regional transmission charges in proportion to the Long term
capacity sought by them as per CERC norm.
 LTA - APPLICATION PROCESSING
• As the transmission system has been evolved considering target
beneficiaries and tentative allocation indicated by the developer(s) in their
application, some transmission strengthening may be required in the
receiving end/region once the beneficiaries/quantum of allocation is finalized.
The cost/tariff of such system strengthening would also have to be borne by
the developer(s) as and when identified.
• In the event of default by any developer under Clause 5 and 6 of this
Agreement, the transmission charges for the system mentioned at Annexure-
3 would be shared by balance developers. However, the damages collected
(if any) from the defaulting developer(s) under clause 5 & 6 of this agreement
shall be adjusted for the purpose of claiming transmission charges from the
balance (remaining) developers.
• QUESTIONS?

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