JAMMU AND KASHMIR STATE POWER DEVELOPMENT CORPORATION LIMITED PUBLIC NOTICE Objections/ comments invited from various stakeholders on ARR filing and Tariff Petition of Hydro Electric Stations, Gas Turbine and Transmission Line of JKSPDC for FY 2011-12. The Jammu & Kashmir State Power Development Corporation (JKSPDC) is wholly owned by the State Government of Jammu & Kashmir. JKSPDC was incorporated as Jammu and Kashmir State Power Development Corporation Private Limited on 16 th February 1995 under the Companies Act, 1956. Subsequently, the Corporation was converted into a public limited Company and the name was changed to Jammu and Kashmir State Power Development Corporation Limited and a new Certificate of Incorporation was issued by the Registrar of Companies, Jammu & Kashmir, at Jammu on 24 th November, 1999. JKSPDC on 28 th February, 2011 has filed the annual revenue requirement (ARR) for FY 2011-12 with the Hon ble Jammu and Kashmir State Electricity Regulatory Commission in respect of its hydro electric stations, transmission line and gas based thermal power stations. The ARR petition has been filed in accordance with the J&KSERC (Terms & Conditions of Determination OF Hydro Generation Tariff) Regulations, 2005 notified vide 5/JKSERC/2005 dated 23.09.2005 and extended till 31.03.2012 through notification 06/JKSERC/2010 dated 29.10.2010. The Commission has admitted the petition and directed the JKSPDC to publish a public notice for inviting objections/ comments from various stakeholders. 1. Hydro Electric Power Stations JKSPDC has 20 hydro electric power stations (HEPs) with a total installed capacity of 763.70 MW; this includes the 9 MW Mohra HEP which has not been functional since the floods of 1992. Out of the total 20 HEPs, 18 hydro power stations were commercially in operation before April 1, 2009. Baglihar HEP Stage-I has been commissioned on April 1, 2009. The details of total installed capacity, unit wise installed capacity and date of commissioning of all the three units of Baglihar HEP Stage I are mentioned below: Table 1: Installed Capacity of Hydel Power Stations Power Capacity of each Installed Unit House unit (MW) Capacity (MW) Commissioning A. Jhelum River Basin 1 Unit I 35.00 Feb, 1978 Lower Unit II 35.00 105.00 Jan, 1979 Jhelum Unit III 35.00 Nov, 1979 2 Upper Unit I 11.30 Dec, 1973 22.60 Sindh I Unit II 11.30 July, 1974 Unit I 3.00 Feb, 1955 3 Ganderbal Unit II 3.00 Feb, 1955 15.00 Unit III 4.50 1961 Unit IV 4.50 1961 4 Unit I 35.00 June, 2000 Upper Unit II 35.00 105.00 Sept, 2001 Sindh II Unit III 35.00 June, 2002 5 Karnah Unit I 1.00 1991 2.00 Unit II 1.00 1997 6 Pahalgam Unit I 1.50 June, 2005 3.00 Unit II 1.50 June, 2005 B. Chenab Basin Unit I 4.66 1971 7 Chenani Unit II 4.66 1971 23.30 I Unit III 4.66 1971 Unit IV 4.66 1975
8 9 Power House Chenani II Chenani III 10 Baderwah 11 Baglihar C. Ravi Basin 12 Sewa III D. Indus Basin 13 Iqbal Bridge 14 Hunder 15 Sumoor 16 Bazgo 17 Igo- Mercellong 18 Marpachoo 19 Haftal Unit Capacity of each Installed unit (MW) Capacity (MW) Commissioning Unit V 4.66 1975 Unit I 1.00 1996 2.00 Unit II 1.00 1996 Unit I 2.50 2003 Unit II 2.50 7.50 2003 Unit III 2.50 2003 Unit I 0.50 May, 2005 1.00 Unit II 0.50 May, 2005 Unit I 150 Unit II 150 450 01 April 2009 Unit III 150 Unit I 3.00 June, 2002 Unit II 3.00 9.00 Oct, 2002 Unit III 3.00 June, 2003 Unit I 1.25 Nov, 1995 Unit II 1.25 3.75 1996 Unit III 1.25 1996 Unit I 0.20 1995 0.40 Unit II 0.20 1995 Unit I 0.05 1993 0.10 Unit II 0.05 1993 Unit I 0.15 1994 0.30 Unit II 0.15 1994 Unit I 1.50 1/6/2005 3.00 Unit II 1.50 19/08/2005 Unit I 0.25 2006 Unit II 0.25 0.75 2006 Unit III 0.25 2006 Unit I 0.50 2006-2007 1.00 Unit II 0.50 2006-2007 Total capacity 754.70 2. Gas Based Thermal Power Stations JKSPDC owns and operated Gas Based Thermal Power Stations as listed below which are operated only on call from transmission & distribution utility i.e. JKPDD because of prohibitive cost of power generation. Government of Jammu and Kashmir bears only the cost of fuel whenever the units are operated. S. 1 2 Table 2: Particulars of Gas Turbine Stations Name of Power House Unit Capacity of Each unit (MW) Installed Capacity (MW) Commissioning Unit I 25.0 1989-90 Gas Turbine Station - I Unit II 25.0 75.00 1989-90 Pampore Unit III 25.0 1989-90 Unit I 25.0 1993-94 Gas Turbine Station - II Unit II 25.0 1993-94 100.00 Pampore Unit III 25.0 1993-94 Unit IV 25.0 1993-94 Total Thermal capacity 175.00 3. Baglihar Transmission System JKSPDC has commissioned a 400kV D/C line from Baglihar to Kishenpur and two bays at 400kV Kishenpur substation of PGCIL. The tariff for the same has been determined and submitted by JKSPDC separately
4. Energy sale within the state The entire quantity of the electricity generated by the hydro electric power plants which have been commercially commissioned is being sold within the state to the JKPDD with the exception of Baglihar HEP Stage I where 50% of the power generated is sold to JKPDD and the balance 50% is sold through Power Trading Corporation to meet the lender s requirement. 5. Present status of billing energy The present billing of energy generated from 18 HEPs is being done as per the Hon ble Commission s Order dated April 30 th, 2010 applicable for FY 2010-11. Billing for Baglihar is being done @ Rs.3.71 per kwh for FY 2010-11 as allowed by the Hon ble Commission and for FY 2011-12 it shall be done @Rs.3.62 per kwh as per Power Purchase Agreement with JKPDD dated 13 December 2000 pending issuance of Tariff Order by the Hon ble Commission in this regard. 6. Determination of Tariff of 8 HEPs The Hon ble Commission has approved completion costs of 8 HEPs. Accordingly tariff for these 8 HEPs has been calculated in accordance with the procedure defined in Chapter 4 of JKSERC Regulations, 2005 dated 23 September 2005. JKSPDC has filed the Petition for determination of tariff for FY 2011-12 in respect of these 8 HEPs in accordance with the procedure defined in Chapter 4 of JKSERC Regulations, 2005 of dated 23 September 2005. The Annual Fixed Charges (AFC) for FY 2011-12 required and tariff proposed by JKPDC for these 8 HEPs has been summarized in the table below. Table 3: AFC & Indicative Tariff for FY 11-12 for 8 HEPs No Name of HEP Total Annual Fixed Charges Indicative Tariff (Rs In Millions) (Rs per kwh) 1 USHP II 626.05 1.42 2 Chenani III 84.40 2.32 3 Sewa III 102.63 3.14 4 Pahalgam 88.24 5.97 5 Igo-Merchellong 78.55 5.00 6 Bhaderwah 14.22 1.73 7 Marpachoo 19.97 5.32 8 Haftal 24.89 5.15 7. Determination of Tariff of 10 Old HEPs The Hon ble Commission has approved the completion cost of 10 old HEPs. Accordingly the tariff has been calculated with the procedure defined in Chapter 4.of JKSERC Regulations, 2005 dated 23 September 2005. JKSPDC has filed the Petition for determination of tariff for FY 2011-12 in respect of these 10 old HEPs in accordance with the procedure defined in Chapter 4 of JKSERC Regulations, 2005 of dated 23 September 2005. The Annual Fixed Charges (AFC) for FY 2011-12 required and tariff proposed by JKSPDC in respect of 10 old HEPs has been summarized in the table below. Table 4: AFC & Indicative Tariff for FY 11-12 for 10 HEPs No Name of HEP Total Annual Fixed Charges Indicative Tariff (Rs In Millions) (Rs per kwh) 1 USHP - I 81.15 0.77 2 Lower Jhelum 409.25 0.68 3 Ganderbal 53.60 0.60 4 Chenani I 84.89 0.78 5 Karnah 33.03 2.94 6 Iqbal 36.87 1.75 7 Bazgo 3.00 2.78 8 Sumoor 2.02 4.53 9 Hunder 4.17 2.38 10 Chenani-II 11.76 0.99
8. Determination of Tariff of Baglihar HEP Stage I Baglihar HEP was declared commercially operational on 1st April 2009 along with 67 km of 400 kv D/C transmission line from Baglihar to Kishaenpur for evacuation of power from the project. The 400 kv D/C transmission line has been connected with 2 nos. 400 kv lines terminating bays at Grid sub-station Kishaenpur of PGCIL. The petition for approval of capital cost and tariff determination of Baglihar Hydro Electric Project for the FY 2009-10 and FY 2010-11 was submitted as per the directives of Hon ble Commission in December 2010 and pending disposal. The tariff proposal and AFC requirement for the FY 2011-12 has been submitted by JKSPDC in this petition on the basis of the same parameters. The tariff proposal has been submitted on the basis of the following regulations: a) For Baglihar - Hydro for FY 2011-12 The tariff for this is submitted as per directive of Hon ble Commission and procedure defined in chapter 1 and chapter 2 of JKSERC (terms & conditions of determination of hydro generation tariff) Regulation 2005 dated 23 September 2005. b) For Baglihar Transmission System for FY 2011-12 JKSERC has not issued any Regulations for Transmission system. The tariff petition for this has been prepared based on the regulations of Central Electricity Regulatory Commission dated 19 January 2009 applicable for the years 2009-14. The Annual Fixed Charges (AFC) for FY 2011-12 required and tariff proposed by JKPDC in respect of Baglihar HEP Stage I has been summarized in the table below. Table 5: AFC & Indicative Tariff for FY 2011-12 for Baglihar HEP Stage I Total Annual Fixed Name of HEP Charges (Rs In Millions) Baglihar HEP (including transmission Indicative Tariff (Rs per kwh) 9686.20 3.88 9. Compensation on account of O&M expenses incurred for Gas Power Station Gas Power Station I and II are operated on the directions of the Power Development Department / State Government. The transmission and distribution utility, JKPDD allows its operation only in acute emergency condition because of high/ prohibitive cost of fuel for generation. JKSPDC has submitted that in order to maintain the gas turbines in running conditions to operate in emergency, staff has been provided and timely plant maintenance is also being carried out by the JKSDPC. JKSPDC has submitted that actual O&M expenses should be compensated on account of such gas power stations. For this purpose, JKSDC is required to be compensated with the Actual O&M charges. 10. Reimbursement of expenses incurred on account of Mohra HEP Mohra HEP has been generating any power since the damage suffered in floods in 1992. However, JKSPDC has submitted that the switchyard is being used for the power distribution by JKPDD and therefore the utility must get Annual Fixed Charges amounting to Rs.34.95 Million on account of salary, wages and O&M Expenses. 11. Additional submissions The utility has made some further submissions in the Petition which are as follows: a) Approval of additional O&M charges in respect of 10 old HEPs for the years FY 09, FY 10 and FY 11. b) Approval of reimbursement on account of income tax paid to the authorities amounting to Rs. 7,16,08,860/- c) Approval of reimbursement filing fee of Rs.2 Lac. d) Passing of appropriate orders in respect of additional submissions made in Para 10 of the Petition.
12. Copies of the ARR petition can be obtained on written request from the offices of JKSPDC as mention below: 13. Address: Jammu & Kashmir State Power Development Corporation Limited Hotel Shaw Inn Boulevard, Srinagar-190001 Or from, Jammu & Kashmir State Power Development Corporation Limited Ashok Nagar Satwari, Jammu -180004 14. The Commission has directed JKSPDC to invite comments/ suggestions from the public on the above Petition through this Notice. Suggestions/ comments may be sent to the Secretary, Jammu & Kashmir State Electricity Regulatory Commission by 11-04-2011 The contact details of the Commission are as provided below:- Jammu & Kashmir State Electricity Regulatory Commission (JKSERC), Ambedkar (Panama) Chowk, Railway Road, Jammu-180012 (J&K) Ph No s 0191-2470160, 2470183 Fax. 0191-2470163 Emial: jkserc@gmail.com, jkserc@nic.in 15. Every person/ organization/ entity who intends to file objections and/ or provide comments/ suggestions can submit the same in English, Urdu or in Hindi, in six copies, and should carry the full name, postal address and e-mail address (if any) of the sender. It should be indicated whether the objection is being filed on behalf of any organization, consumer or consumer group. It should also be mentioned if the sender wants to be heard in person, in which case opportunity would be given by the Commission at the Public Hearing to be held at Srinagar for which no separate notice will be given. 16. JKSPDC shall reply to each of the objections/comments/suggestions received within three days of the receipt of the same but not later than 15-04-2011, 2011 for all the objections and comments/suggestions received till 15-04-2011, 2011. Stakeholders can submit their rejoinders on replies provided by JKSPDC either during the public hearing or latest by18-04, 2011. 17. It should also be mentioned if the sender wants to be heard in person, in which case opportunity would be given by the Commission at the Public Hearing to be held at Srinagar on 18 April 2011 and Jammu on 21 April 2011 and for which no separate notice will be given. Time and venue of the public hearing shall be as given below: Srinagar Date: 18 April 2011 Time: 11.00 AM Venue: Auditorium, IMPA, Moulana Azad Road, Srinagar Jammu Date: 21 April 2011 Time: 11.00 AM Venue: Conference Hall, JKSERC, Ambedkar (Panama) Chowk, Railway Road, Jammu Senior General Manager Corporate Office, JKSPDC Jammu