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HUKKERI TARIFF FILINGS

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					       BEFORE THE KARNATAKA ELECTRICITY REGULATORY COMMISSION
                                   AT BANGALORE

                                               FILE NO.___________

                                               CASE NO.___________


IN THE MATTER OF:

APPLICATION UNDER SECTION 62 OF THE ELECTRICITY ACT, 2003 READ WITH
KERC (TARIFF) REGULATIONS, 2000 AND REGULATION 2.3 OF KERC (TERMS
AND CONDITIONS FOR DETERMINATION OF TARIFF FOR DISTRIBUTION AND
RETAIL SALE OF ELECTRICITY) REGULATIONS, 2006 FOR DETERMINATION OF
AGGREGATE REVENUE REQUIREMENT (ARR) AND TARIFF FILING FOR THE
PERIOD FROM      FY - 2011 TO FY -2013

AND
IN THE MATTER OF:

HUKERI RURAL ELECTRIC CO-OPERATIVE
SOCIETY LIMITED
Hukkeri Taluk, Belgaum District - 591 309                      ...APPLICANT



                                     AFFIDAVIT


I, Revappa Boragi, son of Basappa Boragi, aged 59 years working as Managing Director
of the Applicant and residing at Hukkeri, do hereby solemnly affirm and state on oath

follows.



 1.    I am the Managing Director of the Applicant Society and I am duly authorized by

       the said Applicant to make this affidavit. I am conversant with the facts of the

       matter and hence I am competent to depose to this Affidavit.



 2.    The averments made in paragraphs 1 to 25 of the Application accompanying this

       Affidavit, herein now marked with letter “A” are true to the best of my
       knowledge, information and belief.
                                            2




3.      I further say that the statements made and data presented in the aforesaid
        Application are true to the best of my knowledge, as per records of the Applicant

        Society and based on estimations. Further, to my knowledge and belief, no

        material information has been concealed in the aforesaid Application.




        Solemnly affirmed at Hukkeri on this 21st day of March 2011 that the contents of

        the above affidavit are true to my knowledge, no part of it is false and nothing

        material has been concealed therefrom.




     Identified by me:


     Place:Hukkeri                                        DEPONENT

     Date :21-03-2011
                                             3

                                                                              ‘A’
       BEFORE THE KARNATAKA ELECTRICITY REGULATORY COMMISSION
                                    AT BANGALORE

                                                     FILE NO.___________

                                                     CASE NO.___________


IN THE MATTER OF:

APPLICATION UNDER SECTION 62 OF THE ELECTRICITY ACT, 2003 READ WITH
KERC (TARIFF) REGULATIONS, 2000 AND REGULATION 2.3 OF KERC (TERMS
AND CONDITIONS FOR DETERMINATION OF TARIFF FOR DISTRIBUTION AND
RETAIL SALE OF ELECTRICITY) REGULATIONS, 2006 FOR DETERMINATION OF
AGGREGATE REVENUE REQUIREMENT (ARR) AND TARIFF FILING FOR THE
PERIOD FROM FY - 2011 TO FY -2013

AND

IN THE MATTER OF:

HUKERI RURAL ELECTRIC CO-OPERATIVE
SOCIETY LIMITED
Hukkeri Taluk, Belgaum District - 591 309                     ...APPLICANT


MEMORANDUM OF APPLICATION UNDER SECTION 62 OF THE ELECTRICITY ACT,
2003 READ WITH KERC (TARIFF) REGULATIONS, 2000 AND REGULATION 2.3
OF KERC (TERMS AND CONDITIONS FOR DETERMINATION OF TARIFF FOR
DISTRIBUTION AND RETAIL SALE OF ELECTRICITY) REGULATIONS, 2006 FOR
DETERMINATION OF AGGREGATE REVENUE REQUIREMENT (ARR) AND TARIFF
FILING FOR THE PERIOD FROM FY - 2011 TO FY -2013


The Applicant above-named most respectfully submits as under:-

1.     Introduction


1.1.      The address of the Applicant for the purposes of summons and notices and

          like purposes is as per the cause title.
                                          4

2.0    Statutory Adherence
2.1.    Hukkeri Rural Electric Co-operative Society Limited (hereinafter called as the

       “Applicant” or “Society”) is submitting this Application for approval of

       Aggregate Revenue Requirement, Expected Revenue and Tariff Application for

       FY-11, FY - 12 and FY -13 under the provisions of the Electricity Act, 2003,

       hereinafter called as the “Act”) read with KERC (Tariff) Regulations, 2000,

       KERC (Terms and Conditions for Determination of Tariff for Distribution and

       Retail Sale of Electricity) Regulations, 2006 (hereinafter called as the “MYT

       Regulations”) for the kind consideration and approval of the Hon‟ble

       Commission.


2.2.   In this Application the Applicant has sought to diligently follow the principles

       and guidelines laid down in the License for Distribution and Retail Supply of

       Electricity, the Electricity Act, 2003, MYT Regulations, Tariff Orders and

       various directions issued by the Honorable Commission from time to time.

       The Applicant is filing ARR before the Hon'ble Commission for the second

       control period under the MYT Regime. The Society          is submitting the ERC

       (Expected Revenue from Charges) for the 2 nd Control Period from 2010- 11 to

       2012-13 and Tariff filing for FY -11, FY -12 and FY -13 for the kind

       consideration and approval of the Hon'ble Commission.

2.3.   The projected numbers are based on actual accounts for FY -10 and they have

       been duly adjusted for growth in income, changes in expenses and also

       changes in assets and liabilities as per the expectations of the Society. In the

       course of validation by the Hon'ble Commission the licensee will provide the

       necessary updated information, if required.

2.4    A draft copy of this Application along with proposal for modification of tariff is

       placed before the Board of the Society, in its meeting held on 8 th March 2011

       and the Board of the Society approved the same. The Board also authorised
                                           5

         the Managing Director of the Society to sign and submit the same before the

         Hon‟ble Commission, in accordance with the applicable Regulations of the

         Hon‟ble Commission. The Board of the Society also authorised the Managing

         Director of the Society to take such steps as may be necessary and to sign

         and execute all deeds, applications, documents and writings that may be

         required, on behalf of the Society and also delegated all above powers to the

         to the Managing Director and generally to do all acts, deeds and things that

         may be necessary, proper, expedient or incidental for the purpose of

         implementing the same. A copy of the same is enclosed as ANNEXURE –1

2.5.    The Society has also filed delay condonation application, explaining the reasons

         for delay in filing this application and for condonation of delay in filing this

         Application.

3.       Brief set of Facts

         The Society is a holder of Retail Supply License granted by the Hon‟ble

         Commission, under Section 14 of the Act, for carrying out the business of

         retail supply of electrical energy, within Hukkeri Taluk of Belgaum District of

         Karnataka State.

 4.0.    Tariff Data

         The data for the years from FY- 08 to FY - 10 are based on audited accounts.

         The projections for the control period for FY-11 have been arrived based on

         the historical data from FY - 08 to FY - 10 and expectations of the Applicant.

         The projections for the control period for FY - 12 and FY - 13 in growth in

         income, changes in expenses and also changes in assets and liabilities are

         provided based on the historical data from FY 08 to FY 10 and expectations of

         the Applicant. During the course of the validation by the Hon‟ble Commission,

         the Applicant will provide the necessary updated information, if sought by this

         Hon‟ble Commission.
                                            6

5.0.   Profile

       The applicant Society is the only Rural Electric Cooperative Society in the

       State of Karnataka serving about 83,000 consumers spread over about

       991.49 sq. km under the license granted to the Society by the Hon‟ble

       Commission, under section 14 of the Act.

5.1.   Consumer Profile as on 31st March, 2010
           [[




           TABLE 1: Consumer Profile

                Sl. No.     Tariff Category        Number of Installations

                   1.     LT - 2 (a)                              63474

                   2.     LT - 2 (b)                                 54

                   3.     LT – 3                                   4952

                   4.     LT - 4 (a)                              18382

                   5.     LT - 4 (b)                                 09

                   6.     LT-4 (c)                                   03

                   7.     LT – 5 (b)                               1593

                   8.     LT – 6 (Street Lights)                    240

                   9.     LT -6 (Water Supply)                      535

                   10.    LT -7 (Temporary)                         156

                          LT Sub Total                           89398

                   11.    HT-1                                        3

                   12.    HT-2 (a)                                    5

                   13.    HT – 2 (b)                                  5

                   14.    HT – 3                                      4

                          HT Sub Total                               17

                          GRAND TOTAL                            89415
                                        7

5.2.   Brief History of the Society


       The Society is incorporated under the provisions of the Karnataka Co-

       operative Societies Act, 1959, as a Co-operative Society and was one of the

       five pilot Rural Electric Co-operative Societies established on 21-07-1969

       through Rural Electrification Corporation Limited (REC), New Delhi, as per the

       decision of the Government of India and based on sponsorship from United

       States Agency for International Development (USAID) in collaboration with

       National Rural Electric Cooperative Association (NRECA), of the United States

       of America.



       Society was the first Rural Electric Cooperative Society to be registered in

       India and is the only one working in Karnataka State.

       Initially, the Government of Karnataka (GoK) granted the license for

       distribution of electricity to the Society on 12-10-1970. Since then, the

       Society is engaged in the distribution of electricity to Hukkeri Taluka.

       Thereafter, KERC was constituted under the Karnataka Electricity Reforms

       Act, 1999. The Society was granted the license initially for a period of five

       years, in October, 2001. After coming into force of the Act in 2003, KERC, by

       its order No. L/1/06 dated 14th November, 2006, granted the licence for

       distribution of electricity within its licenced area for a period of twenty five

       (25) years from 19th October, 2006, under the provisions of the Act.



5.3.   Assets


       The Society at the time of its constitution (in 1970) purchased assets worth

       Rs. 45.77 Lakhs from the then Karnataka Electricity Board (KEB). The present
                                         8

       assets, as on 31st March, 2010 held by the Society are worth about Rs. 30.05

       crores excluding the Special Reserve Fund of Rs. 6.42 crores.

       During the Financial Year 2009-10, after payments and outgoings towards

       energy purchase, transmission charges and maintenance charges etc, the

       Society created assets worth Rs. 2.07 crores, without any Governmental

       support or any other fiscal support.


5.4.   Membership


       As per the Bye-laws of the Society, every consumer should be a member of

       the Society by holding at least one fully paid up equity share of face value of

       Rs.100/- each. Presently, as on 31st December, 2010 there are 74,670

       members who have paid the share amount of Rs. 3.59 crores including the

       State Government share amounting to Rs. 41.70 Lakhs.



5.5.   Work Division


       Hukkeri Taluka, the distribution area of the Society is divided in the following

       divisions each headed by a Section Officer:


       1. Hukkeri East

       2. Hukkeri West

       3. Sankeshwar

       4. Yamakanamaradi

       5. Hidakal Dam
                                        9

                                      Chairman – Vice
                                       Chairman and
                                     Board of Directors
                                          (12 Nos)
                                     Directly Elected by
                                        the Members




                                    Managing Director
                  (JRCS – Deputed by the Department of Co-operation, GoK)




              Manager                    Resident Engineer            Accounts Officer
           (Establishment)                (Technical)                   (Accounts)




5.6.   Impressive Financials:


       The Society is sponsored and financed by REC. The Society received the initial

       capital loan Rs. 173.40 Lakhs from REC in 1969-70, 1st revised project loan of

       Rs. 25 lakhs in 1979 and 2nd revised project loan of Rs. 85 lakhs in 1983,

       totaling Rs. 283.40 lakhs as loan with an interest charge of 9.5% per annum.

       Society has been promptly repaying this loan and as of March 2010, a sum of

       Rs. 273.20 Lakhs has been remitted back by the Society along with interest.

       The Society is prepared to repay the balance amount of Rs. 10.20 lakhs in

       one stretch, however, the REC looking at the repayment record of the Society
                                             10

            is not insisting on the same. On the other hand, REC has given a “Prompt

            Payment Rebate” of one percent per annum on the amount remitted to it by

            the Society.


            Being impressed by the prompt re-payment of loan by the Society, REC

            converted the interest charges paid for the initial ten (10) years into a Special

            Reserve Fund which has been now grown to Rs. 6.42 crores, to be vested

            with the Society. The said amount has been invested in Term Call Deposits

            maintained with DCC Bank Belgaum, Hukkeri Branch, in the name of the

            Society itself. But, REC retained the Fixed Deposit Receipts with itself, in

            terms of the said conversion/Grant. The Society is perhaps the only Rural

            Electricity Co-operative in the entire Country which has been incentivized with

            the Special Reserve Fund by REC.


5.7.        Rajiv Gandhi Grameen Vidyudeekarana Yojana (RGGY)



       a)   Being impressed by the robust financial track record of the Society, REC has

            sanctioned Rs. 7.21 Crores under the prestigious RGGVY to the Society.

            Around 14,074 Below Poverty Level (BPL) families are the direct beneficiaries

            of this scheme as they are to receive free electricity under this scheme.

            Society proposes to complete this scheme in 12 months. The actual work has

            been inaugurated by the Hon‟ble Chief Minister of Karnataka on 05th February

            2011 and the work has been started thereafter.


5.8.        Self Reliance – Backward Integration



       a)    Society has evolved a self sufficient financial regime and not borrowed any

             sums from any banks or financial institutions, except the balance amount of

             Rs. 10.20 lakhs from REC, as stated above.
                                      11



b)   Society has attained self reliance on almost all respects through its backward

     integration process.


c)   Society has set up Shri. Durudundeshwara Transformer Manufacturing and

     Repair Unit at Hukkeri. This unit has the capability to indigenously

     manufacture and cater to the total requirement of the Society.



d)   The Unit has earned such repute that even HESCOM Limited has entrusted its

     failed transformer repairs to the Society. Last year around 500 transformer of

     HESCOM Limited alone have been repaired in the said unit.



e)   Any transformer failed in the Society‟s distribution area are repaired and

     reinstalled within 24-48 hours, which is far exceeding the KERC (Licensees'

     Standards of Performance) Regulations - 2004.



f)   Society has an indigenous RCC/PSC/PCC Cement Poles Manufacturing Facility

     called as Shri. Appana Gowda Patil Cement Pole Manufacturing Unit. The Unit

     has the capacity to manufacture around 32 Cement poles per day. Society is

     in the approved list of vendors and will cater requirements of the HESCOM.

     The Society has established another RCC Pole manufacturing unit at

     Sankehshwar Town with an installed capacity of 30 poles per day, at a cost of

     Rs. 7.12 lakhs, which was met with the internal accruals of the Society.



g)   All mild steel materials for Over Head Line such as Transformer Centre Sets,

     Four Pin Cross Arms, Special Three Pin Cross Arms, GOI Sets, Double Pole

     Sets etc., are indigenously manufactured at Hukkeri by Society, which

     completely takes care of its own requirements and additionally caters to the

     requirements of HESCOM Limited.
                                         12



5.9.    Modernization Drive

        The entire administrations of the Society Viz., Establishment, Stores, Shares,

        Billing and Accounts are computerized way back in 2000. Spot Billing System

        is recently introduced. All Time Payment (ATP) machines are recently installed

        in Hukkeri and Sankeshwar Town. Another ATP machines will be installed at

        Yamkanamaradi, very shortly. The Society is in the process of digitizing all

        consumer records and will be completed within three months.


5.10.   Master Unit Sub Stations (MUSS)


        The total connected load of the Society is around 104 MW. To meet this

        demand the following Sub Stations are functioning at Hukkeri:-


        1. Hukkeri - 2 Nos. x 10 MVA Transformers – 110 / 11 kV Sub-station

        2. Hidakal Dam - 2 x 10 MVA Transformers – 110 / 11 kV Sub-station

        3. Sankeshwar - 2 Nos. x 10 MVA Transformers – 110 /11 kV Sub-station

        4. Hattaragi - 2 Nos. x 10 MVA Transformers – 110 / 11 kV Sub-station

        5. Kanagala - 1 No. x 5 MVA Transformers – 33 / 11 kV Sub-station

        6. Hebbal - 2 No. x 5 MVA Transformers – 33 / 11 kV Sub-station




5.11.   Distribution Transformer Centres (DTCs)

        There are about 1485 number of DTCs with various capacities as on 31st

        March, 2010.



5.12.   Consumer Friendly Measures

   a)   The Applicant is having a website of its own (www.hrecs.com) and established

        email communication facilities with its email id hukeriruralele@yahoo.co.in.
                                              13




   b)    Consumers can approach the Section Officers of the Society at the following

         phone numbers, which are made available to the consumers:


               Sl. No     Name of the Section           Phone Number

                  1.      Hukkeri East and West         08333 – 265030

                  2.      Sankeshwari                   08333 – 273396

                  3.      Yamakanamaradi                08333 - 276245

                  4.      Hidkal Dam                    08333 - 263230



   c)     The Consumer Grievance Redressal Forum (CGRF):

          The same has been explained under the head “Commission‟s Directives and

          Compliances”.

5.13.     Employees Strength


5.13.1    In    1986, the Joint   Registrar    of Co-operative Society (JRCS)   of the

          Government of Karnataka sanctioned 227 posts for the Society. The present

          Working Staff strength is about 219.

5.13.2    It is submitted that in 1986, there was only one 110 kV sub-station and only

          2 sub-stations of 33 kV capacity. Presently, the power requirements of the

          Society have been catered by four 110 kV (installation of another 110 kV sub-

          station is under progress) and two 33 kV substations. The total number of

          consumers in 1986 was about 30,000, which nearly tripled over last 25 years.

          The system of the Society demands recruiting of many more staff. But, due to

          the dedicated services of the employees of the Society, the Society manages

          its affairs with the existing manpower. The appended list at Form - D6A

          shows the particulars of sanctioned and working employees comprehensively.
                                              14

5.14.        Collection, Billing and Vigilance

             The Society has an efficient collection and billing mechanism. The Society has

             established 32 Billing Centres for facilitating the consumers. This mechanism

             has improvised with introduction of Spot Billing System. ATP machines are

             recently installed in Hukkeri and Sankeshwar Town. Vigilance Squad is also

             established for diligent check of thefts and unauthorised usage of electricity.


5.15.        Tariff Regime


        a)   The Society is paying the Bulk Supply Tariff to HESCOM as decided by the

             Hon‟ble Commisison, from time to time.


        b)   Transmission charges are paid directly to Karnataka Power Transmission

             Corporation Limited (KPTCL) as approved by the Hon‟ble Commission, from

             time to time.


5.16.        Government of Karnataka (GoK) Support


   a)        Of the total power consumption within the Society‟s service area, about 74%

             of power is consumed by IP Sets (Agriculture). The actual tariff for IP Sets are

             as decided by KERC in its MYT Order dated 07th March, 2008, in which the

             Hon‟ble Commission directed the Society to follow the tariff as applicable to

             HESCOM. Accordingly, the Society was charging Rs. 0.40 per each unit of

             power supplied to IP Sets against the actual cost of power supply, leaving

             considerable shortfall on account of each unit of power supplied to IP Set

             consumers, from time to time. The cross subsidy element has also very less

             compared to consumer profiles of State owned ESCOMs. The GoK used to

             release the balance of IP Set power supply cost as subsidy to the Society only

             after the annual performance review of the Society is carried out by KERC,

             based on the audited accounts, audited by the auditors of the Department of
                                               15

              Co-operation, Government of Karnataka, till the year 2010. In the current

              year, GoK is releasing IP Set Subsidy on monthly basis, as per the provisional

              claims of the Society.


       b)     The Application for Annual Performance Review (APR) filed by the Society, for

              FY - 10 is pending before the Hon‟ble KERC.

6.0.         Compliance with Directives of the Hon’ble Commission


              The status of compliance to the Directives of the Society is as under:


            a) HT/LT Ratio: As per the submissions made by the Society, the Hon’ble

               Commission noted the need to reduce the HT/ LT Ratio existing at 1 : 3.3.


              Compliance:


              The Society has made serious efforts to reduce the Ratio. The present HT/ LT

              Ratio have been changed to 1 : 3.2 as on 31st March, 2010.



              The Society proposes to improve the HT/LT ratio by providing 100 additional

              DTCs & corresponding 11 kV lines, in the control period. It is stated that the

              Society is trying to be efficient by undertaking program of adding more than

              100 distribution transformers of different capacities and that stringent vigilant

              activities are being undertaken in respect of domestic, commercial and small

              scale industrial consumers. This will be extended to IP category as well, in

              due course of time.      Out of this target, the Society has added nearly 50

              distribution transformers as on 28th February, 2011.


       b)     DC/MNR installations: The society has indicated that there has been

              reduction in the percentage of DC/MNR installations over the years. In the

              year 2002-03 the percentage of DC/MNR to total installations was 1.56% and

              the same has been reduced to 0.42% during the year 2009-10. The
                                 16

Commission appreciates the efforts of the Society in complying with the

directives of the Commission to bring down the ratio of MNR installations to

less than 1%.


Compliance:

Society submits that current status of failure of MNR Meters are as follows:


          TABLE 2:    STATEMENT SHOWING MNR METERS


   Sl. No          Year         Total No of      MNR         MNR Meters in
                               Installations   Meters in    Percentage term
                                               numbers            (%)
         1.      2007-08          84235           801             0.95

         2.      2008-09          86637           595             0.69

         3.      2009-10          88101           373             0.42

         4.    2010 – Up to       91192           851             0.93
              December, 2010



Society submits that current statement showing failure of transformers is as

below:



     TABLE 3:      STATEMENT SHOWING TRANSFORMER FAILURES


   Sl. No          Year          Total No of        No. of      Percenta
                                  existing      Transformers      ge of
                                Transformer       failed and     failures
                                  Centers          repaired        (%)
         1.      2007-08              1326          180          13.57

         2.      2008-09              1417          196          13.83

         3.      2009-10              1485          330          22.22

         4.     2010 - Upto           1551          190          12.25
              December, 2010
                                         17

c)    Directive on Computerization:

       The Commission mandated the Society to implement computerization in its
       operation.
       Compliance:
       It is submitted that with effect from June, 2009 the Society has introduced

       Spot Billing through Handheld electronic device. The Society has recently

       started a website www.hrecs.com and has updated the latest information for

       the benefit of the consumers and other stakeholders, who can send e-mails

       on their queries, compliments or complaints. The computerization in Energy

       Billing is fully completed. The computerization          of the Inventory and

       Establishment   segments    is   also    100%    complete.    The   entire   salary

       disbursement of the employees of the Society is through the aid of

       computerization through its own indigenized and customized software based

       on Visual Basic (VB), which too is completed. The accounting software

       implementation is under progress, which may be completed within a month

       time.


d)     Establishment of CGRF

       The Hon’ble Commission had issued directions to establish CGRF in terms of
       the regulations framed by the Hon’ble Commission.
       Compliance:

       The Society has been exempted from establishing the CGRF, vide Hon‟ble
       Commission‟s letter dated 7th September 2006. As per this letter, the
       consumer grievances of the Society are entrusted to the CGRF, HESCOM. The
       Society has been giving wide publicity to this effect. It is pertinent to mention
       that no complaint has been filed against the Society so far before the CGRF of
       HESCOM.

 e)   Implementation     of   Regulations      on   Consumer   Complaint   handling   and
       Licensees Standards of Performance
       Compliance:


       The Society is dutifully following all applicable regulations framed by the

       Hon‟ble Commission to the best of its ability.
                                            18


f)    New Directive- Segregation of accounts into distribution and retail

           supply business


           Compliance:

           It is submitted that the Society is availing power supply at 11 kV interface

           point entirely from HESCOM Limited.       The entire business of the Society

           consisting of Retail Supply Business and in the humble opinion of the Society,

           the segregation of accounts into distribution and retail supply business may

           not be practicable. Hence, the Society requests the Hon‟ble Commission to

           waive the said requirement, as far as the Society is concerned.


g)         New Directive- filing of tariff application:
       [




           The Commission has introduced differential retail supply tariff for each of the

           distribution licensees. As such the Society is directed to file its tariff

           application for determination of distribution and retail supply tariff for the

           next financial year as per MYT / Tariff Regulations.


           Compliance

           The Society is hereby filing the Application as directed.


h)         New Directive- Prudence Check for Capital Works:


     As per the Orders of the Hon’ble ATE, the Commission would conduct a

     prudence check on the capital expenditure incurred by the Society. In this

     regard the Society is directed to furnish the required information as per the

     formats prescribed from time to time.

     Compliance:

     The Society is herewith furnishing a detailed list of Capital Outlay for the year

     from 2009-10 as also projected up to 2012-13.
                                                                             19


                            TABLE- 4: STATEMENT SHOWING THE CAPITAL OUTLAY FOR THE YEAR FROM 2009-10 to 2012-13

                                         Position   Rate As
                                                                                           Proposed work programme
Sl.No             Particulers              of         Per
                                         Assets
                                          as on     Common                  2010-11                      2011-12                   2012-13
                                          31-03-
                                           2010     S.R in Rs    Qnty             Amount       Qnty          Amount       Qnty        Amount
   1    H.T Lines
        a) 11 KV Lines                    1072      182,471.00        30      5,474,130.00          25     4,561,775.00     20       3,649,420.00
   2    L.T Lines

        a) 3 Phase 5 Wire                              _          _                   _         _                  _       _             _
        b) 3 Phase 4 Wire                 3377      122,759.00        20      2,455,180.00          20     2,455,180.00     15       1,841,385.00
        c) 1 Phase 3 Wire                           128,987.00        10      1,289,870.00       7.5         967,402.50    7.5        967,402.50
        d) 1 Phase 2 Wire                           104,000.00        10      1,040,000.00       7.5         780,000.00    7.5        780,000.00
   3    Transforme Centres
        a) 500 KVA Transform Center         1
        b) 200 KVA Transform Center         1
        c) 150 KVA Transform Center         1
        d) 315 KVA Transform Center         1
        e) 100 KVA Transform Center        776      164,352.00         5          821,760.00        5        821,760.00        5      821,760.00
        f) 63/50 KVA Transform Center      509      122,813.00        35      4,298,455.00          30     3,684,390.00     25       3,070,325.00
        g) 25 KVA Transform Center         111       89,339.00         5          446,695.00        5        446,695.00        5      446,695.00
        h) Others (10 & 15 KVA)            85          _          _                   _         _                  _       _             _
   4    Service connection
        a) Agriculture -HT                  4          _               1              _             1              _           1         _
        b) Industrial -HT                  13          _               1              _             1              _       _             _
        c) Agriculture -LT                18391       3,000.00     450        1,350,000.00      450        1,350,000.00    450       1,350,000.00
        d) Industrial -LT                 1593        3,000.00     120            360,000.00    120          360,000.00    120        360,000.00
        e) Domestic                       63528       1,500.00    1850        2,775,000.00     1850        2,775,000.00   1850       2,775,000.00
        f) Commercial                     4952        1,500.00     170            255,000.00    170          255,000.00    170        255,000.00
        g) Street Light Brackets           240         _          1 50                -         1 50               -      1 50            -

                                                      Total                  20,566,090.00                18,457,202.50            16,316,987.50
   5    Improvement Works
        a) 11 KV Line                       _       182,471.00         9      1,642,239.00          8      1,459,768.00        7     1,277,297.00
        b) 100 KVA Transform Center         _       164,352.00        45      7,395,840.00          40     6,574,080.00     35       5,752,320.00
        c) LT Line 3 Ph.4 Wire              _       122,759.00        4.5         552,415.50        4        491,036.00    3.5        429,656.50

                                                      Total                   9,590,494.50                 8,524,884.00              7,459,273.50

        Grand Total                                                          30,156,584.50                26,982,086.50            23,776,261.00
                                      20

7.   Annual Review of Performance


     The Applicant has already furnished the details as per audited accounts for FY

     08 and FY 09, for Annual performance Review. This Hon‟ble Commission was

     pleased to pass orders dated 03rd July 2009 and 6th July 2010, in respect of

     FY 08 and FY 09, respectively.


     Further, the Application for Annual Performance Review for FY-10 filed by the

     Applicant is pending consideration of this Hon‟ble Commission.



8.   Energy Input at interface points:


     TABLE 5:      Quantum of input energy at interface points


                        Actual quantum of          Percentage
           Year         Input at Interface        Growth over
                           points (MU)            previous year
         2005-06                149                    0.67
         2006-07                184                   23.49
         2007-08                175                  (-) 4.89
         2008-09                178                    1.71
         2009-10                183                    2.81



     TABLE 6:      Quantum of energy sales

                                                     Percentage
                          Actual quantum of
             Year                                   Growth over
                             Sales (MU)
                                                    previous year
            2005-06               126                    0.80
            2006-07               155                   23.01
            2007-08               148                  (-) 4.52
            2008-09               151                    2.03
            2009-10               155                    2.65


     The quantum of energy input and sales for the previous years are depicted in

     the above tables. When compared to the previous year for FY 07, the

     percentage growth of energy input for FY -08, FY-09 and FY -10 at interface

     points are (-)4.89%, 1.71% and 2.81% respectively.
                                       21



9     SALE FORECAST:



      Energy Sale and Growth Rate from FY 06 to FY 10 and the quantum of energy

      input and sales for the previous years are depicted in the above tables. When

      compared to the previous year for FY 07, the percentage growth of energy

      sales for FY -08, FY-09 and FY -10       are (-) 4.52%, 2.03% and 2.65%

      respectively.



10.   Number of installations:



      As per Regulation No. 2.5.2 of the MYT Regulations, the Annual Revenue

      Requirement (ARR) for Retail Supply Business shall be on the expected

      revenue from charges at the existing tariff.   In order to estimate ERC, the

      accurate sale forecast is necessary.     The energy sale for control period

      depends upon the population, policies of the Government, the various

      schemes under implementation, the number of hours of supply available to

      consumers etc. These facts have an impact on growth of installations. Hence

      the Society has analyzed the growth of installations in the area of supply for

      the period from FY-06 to September, 2010. Due to various reasons, some of

      the installations across the categories are being dismantled. This fact is also

      considered in estimation of sale forecast. In order to have accurate sale

      forecast, year end number of installations and total energy sold across the

      categories during respective year is reviewed to ascertain the growth.     The

      number of installations and growth rate for the period from FY-06 to FY-10

      were as follows:
                                                                     22

                     Table 7: Number of Installations and Growth Rate From FY-06 to FY-10

   Tariff      FY 05-      FY 06-       % of          FY 07-         % of                      % of                     % of          CA.
                                                                                  08-09                   09-10
 category        06          07        Growth           08          Growth                    Growth                   Growth       Growth
LT1 -BJ              0           0           0              0             0               0         0             0          0      0
LT-
                10438       10688             2.40        10992           2.84     11333         3.10      11627            2.59       2.73
2(a)(ii)U
LT-2
                47566     47625               0.12        48674           2.20     50235         3.21      51847            3.21       2.19
(a)(iii) V
LT-2(b)(i)
                   16             20     25.00               23       15.00           23         0.00         26           13.04      13.26
U
LT-2 (b)(ii)
                   25             26          4.00           26           0.00        27         3.85         28            3.70       2.89
V
LT-3(i) U        2128         2147     0.89                 2165        0.84        2201         1.66       2232             1.41       1.20
LT-3(ii)V        2558         2563         0.20             2640        3.00        2693         2.01       2720             1.00       1.55
LT-4(a)(i)      16518        16993         2.88            17492        2.94       17829         1.93      18382             3.10       2.71
LT - 4b            15           14        -6.67               14        0.00          13        -7.14          9           -30.77     -11.14
LT- 4c              3            3         0.00                2      -33.33           3        50.00          3             0.00       4.17
LT-5(b)          1463         1472         0.62             1493        1.43        1542         3.28       1593             3.31       2.16
LT-6WS            475          479         0.84              476       -0.63         504         5.88        535             6.15       3.06
LT-6STL           216          220         1.85              222        0.91         218        -1.80        240            10.09       2.76
LT-7              150          159         6.00              150       -5.66         141        -6.00        156            10.64       1.25
LT             81571        82409        38.13            84369      -10.46       86762        59.97      89398            27.48      28.78
HT-1WS              2            2         0.00                3       50.00           3         0.00          3             0.00      12.50
HT-2(a)ii           5            5         0.00                5        0.00           4       -20.00          5            25.00       1.25
HT - 2(b) ii        5            5         0.00                5        0.00           5            0          5             0.00       0.00
HT -
                    3              3          0.00            3           0.00            4     33.33             4         0.00       8.33
3(a)(i)
HT                 15             15            0            16            50        16        13.33         17               25      22.08
LT+HT          81586        82424        38.13            84385      39.54        86778        73.30      89415            52.48      50.86


                     It can be observed that the average growth rate of installations is 38.13,

                     39.54, 73.30, 52.48 for the year FY-07, FY-08, FY-09, and FY-10 respectively.

                     The CAGR for five years is 50.86%. On the basis of compounded annual

                     growth rate of installations, the number of installations for the control period

                     is estimated as follows. (The abnormal variations in growth such as minus

                     growth are avoided/not taken into account, for further estimation.) The

                     installations for the control period are as follows:

                    Table 8:            No. of installations for control period


                         Tariff          09-10                 Gr            CAGR             10-11        11-12               12-13
                  LT1 -BJ                             0              0              0                 0                0                0
                  LT-2(a)(iii)V                51847               3.21           2.19         53511         54680                  55875
                  LT-2(a)(ii)U                 11627               2.59           2.73         11929         12255                  12590
                  LT-2(b)(ii)V                       28            3.70           2.89             29                 30               31
                  LT-2(b)(i)U                        26        13.04             13.26             29                 33               38
                  LT-3(ii)V                     2720               1.00           1.55          2747          2790                   2833
                                          23


      LT-3(i)U             2232        1.41          1.20    2263        2291             2318
      LT-4a               18382        3.10          2.71   18952       19466         19993
      LT - 4b                  9     -30.77      -11.14          6           6               5
      LT- 4c                   3       0.00          4.17        3           3               3
      LT-5(b)              1593        3.31          2.16    1646        1681             1717
      LT-6WS                535        6.15          3.06     568          585             603
      LT-6STL               240       10.09          2.76     264          272             279
      LT-7                  156       10.64          1.25     158          156             175
      LT                 89398        27.48         28.78   92106      94247         96461
      HT-1WS                   3       0.00         12.50        3           3               4
      HT-2(a)II                5      25.00          1.25        6           6               6
      HT - 2(b)II              5       0.00          0.00        5           5               5
      HT - 3(a)(i)             4       0.00          8.33        4           4               5
      HT                     17       25.00         22.08      18           19             20

      LT+HT              89415        52.48         50.86   92124      94266         96481
11.     Energy Sale:

        In order to arrive estimated energy sale for the entire control period, Society

        has made assumption that the number of consumers will increase as

        estimated in the above Tables and power supply will be available to

        consumers in all three years as follows:


      1) Twelve hours 3-Phase supply and Twelve hours single phase supply will be

           available to consumers in urban areas.


      2) 8 hours 3 Phase supply and 8 hours single phase supply be available in rural

           areas.


      3) Energy sale is closely linked with number of consumers in each category.

           Society has considered consumption pattern for a period of previous 5 years

           and growth rate is arrived. The growth of the energy sales for the period

           from FY-06 to FY-10 are as follows:
                                                                              24

                                        Table 9: Energy sale and growth rate from FY-06 to FY-10


                 FY-06 In     FY-07 In          GR       FY-08 In          GR       FY-09 In      GR           Energy            GR             CA.
 Tariff
                   MU            MU            In%          MU            In%          MU        In%          for FY-10         In%             GR
LT1 - BJ                0            0             0            0             0            0         0                0                0               0
LT-
                  10095944         11462996      13.54        11691151      1.99     11888447         1.69      12038345          1.26          4.62
2(a)(iii)V
LT-
                   5920832         4952121      -16.36         5039226      1.76      5205994         3.31       5506063          5.76          -1.38
2(a)(ii)U
LT-
                     25930           30391       17.20           41999     38.20        45460         8.24           43283        -4.79         14.71
2(b)(ii)V
LT-
                     27534           29151        5.87           34760     19.24        34885         0.36           36995        6.05           7.88
2(b)(i)U
LT-3(ii)V           837596         1033249       23.36         1148011     11.11      1407997        22.65       1837896         30.53          21.91

LT-3(i)U           1378454         1295253       -6.04         1389373      7.27      1603447        15.41       1804126         12.52           7.29
LT-4a             89896434       114884866       27.80       107723054     -6.23     109243258        1.41     112694601          3.16           6.53
LT - 4b             134607           193472      43.73          140808    -27.22        77113    -45.24              56009       -27.37        --14.02
LT- 4c               19134           13782      -27.97            5781    -58.05         1770    -69.38               2451       38.47         -29.23

LT-5(b)            3026323         3277093        8.29         3114499     -4.96      3475226        11.58       3786805          8.97           5.97
LT-6WS             3647359         4039054       10.74         4203670      4.08      4124348        -1.89       4240229          2.81           3.93
LT-6STL            1845117         2056480       11.46         2016387     -1.95      2027992         0.58       2151020          6.07           4.04
LT-7                 44286           28397      -35.88           77598    173.26        44674    -42.43              95754      114.34          52.32
LT               116899550      143296305       75.74        136626317    158.48    139180611    -93.71        144293577        197.78          84.57
HT-1WS             2796277         3092225       10.58         3492702     12.95      3815919         9.25       3910944          2.49           8.82
HT-
                   4770528         5320792       11.53         5718142      7.47      5295274        -7.40       5224209          -1.34          2.57
2(a)II
HT -
                    601729           584369      -2.89          640239      9.56       542485    -15.27              520859       -3.99         -3.14
2(b)II
HT -
                   1403972         3111896      121.65         1893645    -39.15      2029536         7.18       1455396         -28.29         15.35
3(a)(i)
HT                 9572506       12109282      140.88         11744728     -9.17     11683214        -6.23      11111408        -31.13          23.59

                 126472056      155405587      216.62        148371045    149.31    150863825    -99.95        155404985        166.65         108.16
LT+HT


                            Table 10:     Energy Sale for Control Period:

       Energy sale for Control Period
        Sl
       No.      Particulars        FY10                        Gr. in %   CA. GR        FY-11                FY-12             FY-13
             1    LT-1 BJ                                0         0.00      0.00                0                    0                    0
             2    LT-2(a)iii (V)               12038345            1.26      4.62      12190133          12753299              13342482
             3    LT-2(a)ii (U)                 5506063            5.76     -1.38       5823428              5742936            5663557
             4    LT-2(b) ii (V)                  43283           -4.79    14.71           41210               47273              54229
             5    LT-2(b)i (U)                    36995            6.05      7.88          39233               42324              45660
             6    LT-3(ii) (V)                  1837896          30.53     21.91        2399055              2924718            3565561
             7    LT-3(i) (U)                   1804126          12.52       7.29       2029921              2177872            2336607
             8    LT-4(a)                     112694601            3.16      6.53     116254983         123850369             131941991
                                                             25


 9   LT-4(b) 10 HP               56009       -27.37    -14.02           40681            34976        30071
10   LT-4(c)                       2451       38.47    -29.23            3394             2402            1700
11   LT-5(b)                   3786805         8.97         5.97      4126319          4372585      4633548
12   LT-6(ws)                  4240229         2.81         3.93      4359366          4530879      4709141
13   LT-6(Stl)                 2151020         6.07         4.04      2281511          2373614      2469435
14   LT-7(temp)                  95754      114.34         52.32       205239           312626       476203
     LT Total              144293577       197.78      84.57        149794472    159165875       169270186
 1   HT-1 (ws)                 3910944         2.49         8.82      4008335          4361861      4746566
 2   HT-2(a) (ii) Ind.         5224209        -1.34         2.57      5154098          5286368      5422034
     HT-2(b) (ii)
 3   Comm.                      520859        -3.99        -3.14       500095           484368       469136
 4   HT-3 (a)(i) Irr.          1455396       -28.29        15.35      1043676          1203849      1388604
     HT Total               11111408        -31.13     23.59        10706204      11336447       12026340
     LT + HT Total         155404985       166.65     108.16        160500676    170502322       181296526


                         The DCB statements for the month of April-09 to March-10 are taken into

                         account for classification of Urban and Rural categories.

               12.       Energy requirement:

                         On the basis of energy sale estimated above and considering distribution

                         loss/transmission loss, the energy requirement of the Society, for the Control

                         Period is estimated as follows:

                         Table 11:    Energy requirement for the previous period


                             Particulars           FY-08                 FY-09              FY-10

                                               KERC    Actual         KERC    Actual      KERC   Actual
                           Energy
                           Purchase from
                           HESCOM (MU)
                                             191.65        175.32    195.82   178.28    199.55   183.24
                           including
                           Transmission
                           loss
                           LESS Trans
                                                           26.95              27.60               27.84
                           Loss (MU)
                           LESS Trans                                         15.48               15.19
                                                       15.37%
                           Loss %                                              %                   %
                           Energy Sold
                                                           148.37             150.68             155.40
                           (MU)
                           Distribution
                                              14.70        15.37     14.60    15.48      14.50    15.19
                           Loss (%)
                                26

Table 12: Estimation of Energy requirement for control period



              Particulars                FY-11      FY-12        FY-13
  Energy Purchase from HESCOM
                                        201.562     221.718      243.890
  (MU)
  LESS Trans Loss (MU)                   30.532     33.478       36.660
  LESS Trans Loss %                     15.15%      15.10%       15.03%

  Energy Available (MU)                  171.03     188.24       207.23



Energy Requirement of the Society for the year FY-11 as per CAGR will be

171.03 MUs. Energy Requirement of the Society for the year FY-12 as per

CAGR will be 188.24 MUs. Energy Requirement of the Society for the year FY-

13 as per CAGR will be 207.23 MUs.


TABLE 13:     The recorded consumption for FY 10


 Urban consumption        14.93 MU         9.61 %

 Rural consumption        140.48 MU        90.39 %

            Total         155.41MU         100 %




Based on this, the energy requirements for control period have been worked

out on pro-rata basis, for the hours of supply as noted above.


Table 14:


                           Urban           Rural
   Sl.      Financial
                        consumption    consumption    Total in Units
   No.        year
                          in Units        in Units
    1       FY-2011         9002122      162022755      171024877
    2       FY-2012        10015660      178222563      188238223
    3       FY-2013        10860918      196371850      207232768
                                            27

13.   Revenue from sale of power:


            Table 15:   Revenue details:
      SL.                                                                Actual
      No         Category of           Actual             Actual       Revenue for
       .          consumer          Revenue FY08       Revenue FY09       FY10
             LT Installations
      1      Bhagya Jyothi /
             Kutir Jyothi
                                            --              --              --
      2      Domestic (All
             electric home &
             domestic lighting)       46852644.00        47831763.00     49414451.00
      3      Private professional
             institutions                  403579.00       430024.00       430634.00
      4      Commercial and
             Non residential          16395052.00        19364025.00     23196175.00
      5      Irrigation Pumpsets
                                      66568481.00        67659633.00     69864905.00
      6      LT Industry              13628085.00        14988799.00     16371817.00
      7      Public Water Supply
                                      14637933.00        14303117.00     14856676.00
      8      Public Lighting
                                       6815623.00         6868680.00      7738557.00
      9      Temporary Supply              662153.00       414440.00       846209.00
             LT Total               165963550.00       171860481.00    182719424.00
             HT Installations
      8      HT – 1 Public Water
             Supply                   12305391.00        13607923.00     13842994.00
      9      HT – 2(a)
             Industrial, Non
             Commercial and
             Non Industrial
             including Railways       25794805.00        24065805.00     24954934.00
      10     HT – 2(b)
             Commercial                3900987.00         3424870.00      3296692.00
      11     HT – 3 Irrigation &
             Agriculture farms,
             list includes
             societies etc.            2917155.00         2690169.00      2671312.00
      12     HT – 4 Private
             residential
             apartments
             HT Total                44918338.00        43788767.00     44765932.00
             Total (LT + HT)        210881888.00       215649248.00    227485356.00
             Inter ESCOM
             Sales
             Grand Total
                                                28

Table 16: Abstract of Sales and Revenue for FY-08, FY-09 and FY -10



                          KERC                        KERC                 KERC
                                       Actual                   Actual                 Actual
       Particulars       Approval                    Approval             Approval
                               FY-08                       FY-09                FY-10
Sales in MU               191.65   148.37             195.82   150.68      199.55    155.40
Revenue incl. of
misc. charges in                      3683.43                   3635.61                2348.45
Rs. Lakhs.




            The Society has been charging the tariff to its consumers as applicable to the

            consumers of HESCOM‟s Tariff Order, 2005 in terms of the order No. B/06/6

            dated 07th March, 2008 passed by the Hon‟ble Commission, in the matter of

            Application of the Society for Approval of ERC for FY 08-10 under MYT

            framework.


14.         O &M Costs:

            The Details of the calculations of O & M Expenditure are shown below:

            TABLE: 17: O&M Expenses for FY-11, FY-12 and FY-13:


                                                                    Rs. In Lakhs
                           Actuals        Estimation         Estimation   Estimation
           Particulars
                           for FY 10      For FY 11          For FY 12    For FY 13
           R&M
                             138.22              149.92          162.61       176.36
           Expenses
           Employee
                             340.45              390.71          449.86       519.62
           Cost
           A&G
                              66.47                  40.32        37.92        38.62
           Expenses
              Total          545.14             580.95          650.39       734.60



14.1        For FY-11, the R&M Expense is computed as Rs. 149.92 Lakhs after 8.46%

            increase over the previous year of FY-10. In Employees Cost, the basic salary

            is shown an increase of 14.76% over the previous year, in FY -11, with

            increase in DA and payment of statutory bonus.
                                       29


14.2    For FY-12, the R&M Expense is computed as Rs. 162.61 Lakhs after 8.46%

       increase over the previous year of FY-11. In Employees Cost, the basic salary

       is shown an increase of 15.13% over the previous year, in FY -11, with

       increase in DA and payment of statutory bonus.


14.3    For FY-13, the R&M Expense is computed as Rs. 176.36 Lakhs after 8.46%

       increase over the previous year of FY-12. In Employees Cost, the basic salary

       is shown an increase of 15.50% over the previous year, in FY -11, with

       increase in DA and payment of statutory bonus.


14.4   The Administration and General Expenses (A&G) for FY-10 stands at Rs. 66.47

       Lakhs as against 30.94 lakhs in FY -09. The increase in expenditure on this

       head in FY -10 was due to general body meeting of the Society and election

       to the Board of the Society. The Society estimates an expenditure of

       Rs. 40.32 lakhs in FY -11, Rs. 37.92 lakhs in FY - 12 and Rs. 38.62 lakhs for

       FY -13.


14.5   For FY-11, FY-12 and FY -13, the O&M expenses are computed as Rs. 580.95,

       650.39 & 734.60 Lakhs, respectively, as per estimation.


15.    Depreciation:

       TABLE 18:
                                                           (Rs. In Lakhs)
                    Particulars             FY-11       FY-12    FY-13


            Opening GFA
                                            1716.48   1772.12    1834.14
            Add Additions during the
                                              73.19      80.44     87.19
            year
            Less Retirement of assets        -17.55     -18.42    -19.51
            Closing GFA                     1772.12   1834.14    1901.82
            Avg. Depreciation Rate             3.24       3.50      3.69
            Depreciation                      0.57        0.64     0.70
                                          30

15.1.   The Gross Depreciation for FY-10 was Rs. 58.47 lakhs, as per actual accounts.

         However, the net depreciation was Rs. 44.64 Lakhs after charging the

         depreciation to an extent of Rs. 13.83 Lakhs incurred on account of assets

         created out of „Consumer Contribution towards Cost of Capital Assets‟, to the

         said account in FY -10. The depreciation is calculated on the basis of MYT

         Regulations and CERC Notification No. L-7/25(5)/2003 –CERC dated 26-3-

         2004 by considering an average depreciation rate of 3.09%.

15.2.   The Gross Depreciation for FY-11 is estimated as Rs. 73.19 lakhs, as per actual

         accounts. However, the net depreciation will be Rs. 55.64 lakhs after charging

         the Depreciation to an extent of Rs. 17.55 Lakhs to be incurred on account of

         assets created out of „Consumer Contribution towards Cost of Capital Assets‟,

         to the said account, in FY -11. The depreciation is projected on the basis of

         MYT Regulations and CERC Notification No. L-7/25(5)/2003 –CERC dated 26-

         3-2004 by considering an average depreciation rate of 3.24%.


15.3.   The Gross Depreciation for FY-12 is estimated as Rs. 80.44 lakhs, as per actual

         accounts. However, the net depreciation will be Rs. 62.02 lakhs after charging

         the Depreciation to an extent of Rs. 18.42 Lakhs to be incurred on account of

         assets created out of „Consumer Contribution towards Cost of Capital Assets‟,

         to the said account, in FY -12. The depreciation is projected on the basis of

         MYT Regulations and CERC Notification No. L-7/25(5)/2003 –CERC dated 26-

         3-2004 by considering an average depreciation rate of 3.50%.

15.4.   The Gross Depreciation for FY-13 is estimated as Rs. 87.19 lakhs, as per actual

         accounts. However, the net depreciation will be Rs. 67.68 lakhs after charging

         the Depreciation to an extent of Rs. 19.51 Lakhs to be incurred on account of

         assets created out of „Consumer Contribution towards Cost of Capital Assets‟,

         to the said account, in FY -13. The depreciation is projected on the basis of
                                             31

           MYT Regulations and CERC Notification No. L-7/25(5)/2003 –CERC dated 26-

           3-2004 by considering an average depreciation rate of 3.69%.

15.5.   The Society has not shown any charges towards Advance Against Depreciation in

           all three years of the control period.

15.6.    The proposed additions to Gross Fixed Assets (GFA) are subject to prudence

           check on the availability of provisional/audited accounts.

16.      Interest Charges

16.1.     Interest on Consumer Security Deposit:

           TABLE 19:
                                                          (Rs. In Lakhs)

                                               FY -11        FY -12       FY -13
            Consumer Security Deposit at       645.67        716.67       796.67
            the beginning of the year
            Interest @ 6% per annum            38.74         43.00        47.80



           As per KERC (Interest on Security Deposit) Regulations, 2005, the Hon‟ble

           Commission is requested to allow the interest charges at a rate of 6% on the

           consumer security deposit to an extent of Rs. 38.74 lakhs, 43.00 lakhs and

           47.80 lakhs, for FY-11, FY -12 and FY -13, respectively


16.2.    Interest charges on Working Capital:

                   TABLE 20: Interest charges on working capital
                                                                       Rs. in Lakhs.

                     Particulars                  FY 11       FY 12         FY 13
           One-twelfth of the amount of
           O&M Exp.                               58.10        65.03          73.46
           Stores, materials and supplies
           1% of Opening balance of GFA           30.05        33.10          35.82
           One-sixth of the receivables
                                               1071.16        1195.91      1369.87
           Total Working Capital
                                               1159.31       1294.04       1479.15
           Rate of Interest (% p.a.)           11.75%        11.75%        11.75%
           Interest charges on Working
           Capital                                136.20      152.05       173.80
                                          32

        The Society has estimated the total working capital requirement, for the

        control period, in accordance with the provisions in MYT Regulations. Further,

        the said Regulations stipulate that the Rate of Interest on working capital

        shall be on normative basis and equal to the short-term Prime Lending Rate

        of State Bank of India as on 1 st April of the year. As the short-term Prime

        Lending Rate of State Bank of India is 11.75%, the Society has considered

        the interest rate of 11.75% for estimating the interest charges on working

        capital against the proposal of the Society, considering the hardening of

        interest rates.


16.3   Interest and Finance Charges

        TABLE 21:
                                                        Rs. In Lakhs.
          Particulars         Actual in   Projected     Projected       Projected
                               FY 10      in FY 11      in FY 12        in FY 13
        Interest on Loan
              Capital           1.27            2.51       0.60           0.29
            Interest on
        Working Capital          Nil           136.20     152.05         173.80
        Interest payable
           on consumer
             deposits          35.10           38.74      43.00           47.80
       Other Interest and
         finance charges         0               0          0               0
       Total Interest &
       Finance Charges         36.37           177.45    195.65          221.89


        The Hon‟ble Commission may consider the proposed capital investment in the

        ARR for the control period for allowing interest & finance charges. Fresh

        borrowings may be considered as proposed by the Society may be trued up

        subject to actuals.

        The Commission may approve interest charges to an extent of Rs. 177.45, Rs.

        195.65 & Rs. 221.89 Lakhs for FY-11, FY -12 and FY -13, respectively, subject

        to actuals at the time of truing up.
                                       33

17.    Other Debits:

       The Society is of the view that other debits & prior period expenses can not

       be estimated over a three-year period. The Applicant hereby seeks the liberty

       to file suitable proposal for consideration of such expenses as per actuals

       based on audited accounts during the Annual Performance Review.

18.    Return on Equity (RoE):

       The Society has considered Share capital and Reserves & Surplus for the

       purpose of computation of RoE and the estimated figures are as below;

       TABLE 22: TABLE CALCULATING RoR

          Particulars                 FY-11         FY-12      FY-13
          Paid Up Share Capital       348.90        363.90     378.90
          Reserves and surplus       1039.10       1062.89    1072.89
          Closing Balance of         1388.00       1426.79    1451.79
          Equity
          RoE @ 14% on closing       194.32        199.75     203.25
          balance


19.    POWER PURCHASE FOR FY-11:

19.1   The entire power requirement of the Society has been sourced from HESCOM.

       The estimated Power purchase cost of the Society for the control period is as

       follows.

       TABLE 23: Power Purchase Cost


                  PARTICULARS        FY -11        FY -12     FY -13
          Units to be Purchased in    201.562       221.718    243.890
          MU
          Price in paise per unit      252.71        242.77     253.73
          Transmission charges to        30.28        29.19      31.14
          KPTCL (paise per unit)
          SLDC charges (paise per           0.23       0.20       0.19
          unit)
          Total Average cost paise     272.51        272.16     285.06
          per unit
          Total Power Purchase       5492.76       6034.27     6952.38
          cost (Rs. in lakhs)
                                           34

         The power Purchase cost, KPTCL Transmission Charges and SLDC Charges

         have been taken into account as approved by the Hon‟ble Commission in

         HESCOM Tariff Order -2010 dated 7-12-2010.


19.2         The Society has carried out several measures to reduce Technical and

         Commercial Losses by carrying out system improvement works such as:

         o     New feeders
         o     New T/Cs
         o     Re-arrangements of loads, etc.,


       The Society has taken steps to bring down the distribution losses by:


       a. Fully completing of Metering of street light installations.


       b. The Society has plans of metering all DTCs within a span of one year.


       c. A pilot scheme of Nirantara Jyothi has been planned and a proposal for the

             same has been submitted to GoK for approval, to provide quality power

             supply to rural areas. The scheme involves drawing additional 11 kV feeders

             to cater the IP Set loads exclusively. This will result into better load

             management, providing quality power to rural areas and facilitates in

             reduction of losses.

20       ANNUAL REVENUE REQUIREMENTS FY -11, FY -12 & FY 13

                   Table 24: ARR for FY -11, FY -12 & FY 13:
                                                                         (Rs. in Lakhs.)

                  Details                    FY-11         FY-12        FY-13
              2   Expenditure
                  Power Purchase                 5492.76     6034.27     6952.38
                  R&M Expense                     149.92      162.61      176.36
                  Employee Expenses               390.71      449.86      519.62
                  A&G Expense                      40.32       37.92       38.62
                  Depreciation                     55.64       62.03       67.68
                  Advance against
                  depreciation                         0            0           0
                                           35

                Interest & Finance
                Charges                             2.51       0.60        0.29
                Less: Interest & other
                expenses capitalised              -71.00     -71.50      -74.00
                Other Debits (incl. Prov
                for Bad debts)                    38.74      43.00        47.80
                Extraordinary Items                   0          0            0
                Other (Misc.)-net prior
                period credit                     136.20     152.05     173.80
                Total                           6235.80    6870.84    7902.55
            3   ROE 14%                           194.32     199.75     203.25
            4   Other Income                        7.30       7.36       7.48
            5   Provision for taxes                73.83     104.96     113.12
                Sub Total
                Annual Revenue
                Requirement
            6   (2)+(3)+(5)-(4)                 6511.25    7182.91     8226.40


21.     SECTORIAL ENERGY FORECAST for FY10


21.1   Basis


       The audited accounts of the Society for FY-08, FY -09 and FY -10 are available.

       For FY-11, FY -12 and FY -13, the estimation of energy sale is based on the

       growth achieved in FY-09 over FY-08. For un-metered categories like IP Sets

       installations, the consumption figures for FY-11, FY-12 and FY -13 are arrived at

       as per the assessment procedure in vogue. For street light installations, the

       consumption figures for the control period FY-11 to FY -13 are arrived based on

       the specific consumption/annum of FY 10.

       Number of installations as at the end of 31 st March 2008, 31st March 2009 and

       31st March 2010 have been considered from the data available in the DCB

       statements. The Society has made every effort to project only live installations

       in the statements, which is now being filed before the Hon‟ble Commission. The

       figures currently furnished are true reflection of the Society‟s operation and

       consumer base.
                                             36

         The number of installations and sale forecast for FY11 to FY -13 has been

         arrived on the basis of growth of FY-10 over FY-09 and FY-09 over FY-08,

         Compounded Annual Growth Rate (CAGR) values and specific consumption. All

         these parameters and average realization rates for each tariff category were

         utilized to make forecast for power sale for FY -11, FY -12 and FY -13. The

         forecast is dealt in detail in each category in the following paragraphs.


21.2       LT CATEGORY:

21.2.1      LT-2 (a) Installations:

           Growth of consumers and consumption



               TABLE 25:         Rural Installations:



                                       FY-08           FY-09        FY-10
            Consumers (Nos)             48674          50235        51847
            Consumption
            (Units)                   11691151       11888447     12038345



                                       FY-11           FY-12        FY-13
            Consumers (Nos)             53511          54680        55875
            Consumption
            (Units)                   13528068       14946115     16454282



           The number of installations based on DCB figures for FY-08, FY-09 and FY -10

           are 48674, 50235 and 51847 respectively. For FY-11, FY-12 & FY -13 the

           number of installations is estimated at 53511, 54680, 55875 respectively.


           For FY-11, 53511 No. of installations are estimated based on the one year

           growth rate of 3.21% FY-11 over FY-10.


           For FY-12, 54680 No. of installations are estimated based on the one year

           growth rate of 2.19% FY-12 over FY-11.
                                37

For FY-13, 55875 No. of installations are estimated based on the one year

growth rate of 2.19% FY-13 over FY-12.


The energy sales for FY - 08, FY - 09 and FY -10 under this category are

11691151 Units, 11888447 units and 12038345 units respectively.       For FY

11, FY 12 and FY 13, the power consumption is estimated as 13528068 units,

14946115 Units, 16454282 Units, respectively.



For FY-11, 13528068 units are estimated based on the one year growth rate

of 12.37% FY-11 over FY-10.


For FY-12, 14946115 units are estimated based on the one year growth rate

of 10.48% FY-12 over FY-11.

For FY-13, 16454282 units are estimated based on the one year growth rate

of 10.09% FY-13 over FY-12.
[




TABLE 26: Urban Installations:


                           FY-08         FY-09        FY-10
    Consumers (Nos)         10992         11333       11627
    Consumption
    (Units)               5039226        5205994     5506063



                              FY-11        FY-12        FY-13
    Consumers (Nos)           11929        12255        12590
    Consumption
    (Units)                 5695128       6305980      6942298


The number of installations based on DCB figures for FY-08, FY-09 and FY -10

are 10992, 11333, and 11627 respectively. For FY-11, FY-12 & FY -13 the

number of installations are estimated at 11929, 12255, 12590 respectively.

For FY-11, 11929 No. of installations are estimated based on the one year

growth rate of 2.60% FY-11 over FY-10.
                                           38


         For FY-12, 12255 No. of installations are estimated based on the one year

         growth rate of 2.73% FY-12 over FY-11.

         For FY-13, 12590 No. of installations are estimated based on the one year

         growth rate of 2.73% FY-13 over FY-12.


         The energy sales for FY08, FY09 and FY 10 under this category are 5039226

         Units, 5205994 Units and 5506063 units respectively. For FY - 11, FY - 12

         and FY - 13, the power consumption is estimated as 5695128 units, 6305980

         Units, 6942298 Units, respectively.


         For FY-11, 5695128 units are estimated based on the one year growth rate of

         3.43% FY-11 over FY-10.


         For FY-12, 6305980 units are estimated based on the one year growth rate of

         10.72% FY-12 over FY-11.

         For FY-13, 6942298 units are estimated based on the one year growth rate of

         10.39% FY-13 over FY-12.


21.2.2   LT-2 (b) Installations

         TABLE 27: LT-2 (b) Installations:

         Growth of consumers and consumption

                                     FY-08         FY-09      FY-10
           Consumers (Nos)             49           50          50
           Consumption
           (Units)                   76759         80345       80278




                                    FY-11         FY-12      FY-13
          Consumers (Nos)             58            63         69
          Consumption
          (Units)                   85512         131766     145063
                                           39

         The number of installations for FY-08, FY-09 and FY 10 are 49 and 50 & 54

         respectively. For FY11, FY-12 & FY 13, the numbers of installations are 58 and

         63 & 69 respectively.

         For FY-11, 58 No. of installations are estimated based on the one year growth

         rate of 8% FY-11 over FY-10.


         For FY-12, 63 No. of installations are estimated based on the one year growth

         rate of 8.62% FY-12 over FY-11.

         For FY-13, 69 No. of installations are estimated based on the one year growth

         rate of 9.52% FY-13 over FY-12.


         The energy sales for FY-08, FY-09 and FY 10 stands at 76759 Units and 80345,

         80278 Units respectively. For FY11, FY-12 & FY 13, 85512, 131766 & 145063

         Units respectively.

         For FY-11, 85512 units are estimated based on the one year growth rate of

         6.52% FY-11 over FY-10.


         For FY-12, 131766 units are estimated based on the one year growth rate of

         54.09% FY-12 over FY-11.

         For FY-13, 145063 units are estimated based on the one year growth rate of

         10.09% FY-13 over FY-12.


21.2.3   LT-3 Installations

         TABLE 28: LT-3 Installations:

         Growth of consumers and consumption


                                     FY-08         FY-09        FY-10
           Consumers (Nos)           4805           4894        4952
           Consumption
                                    2537384       3011444      3642022
           (Units)
                                          40


                                      FY-11       FY-12        FY-13
           Consumers (Nos)            5010         5081         5151
           Consumption
           (Units)                  3403395       3840060     4227548


         The number of installations for FY-08, FY-09 and FY 10 are 4805, 4894 and

         4952 respectively. The number of installations for FY- 11, FY -12 and FY - 13

         works out to be 5010 and 5081 & 5151 respectively.

         For FY-11, 5010 No. of installations are estimated based on the one year

         growth rate of 1.17% FY-11 over FY-10.


         For FY-12, 5081   No. of installations are estimated based on the one year

         growth rate of 1.41% FY-12 over FY-11.

         For FY-13, 5151 No. of installations are estimated based on the one year

         growth rate of 1.37% FY-13 over FY-12.


         The energy sales are 2537384 Units and 3011444 & 3642022 Units for FY-08,

         FY-09 and FY -10 respectively. For FY -11, 3403395 Units, for FY – 12,

         3840060 Units and for FY-13 4227548 Units.

         For FY-11, 3403395 units are estimated based on the one year growth rate of

         (-)6.55% FY-11 over FY-10.


         For FY-12, 3840060 units are estimated based on the one year growth rate of

         12.83% FY-12 over FY-11.

         For FY-13, 4227548 units are estimated based on the one year growth rate of

         10.09% FY-13 over FY-12.


21.2.4   LT-4(a) Installations:


          Month wise IP set consumption as approved by KERC for FY-08, FY -09 and

          FY- 10 is shown below:
                                41


TABLE 29: LT-4(a) Installations:
                                             In Units

   Sl.No.    Month          FY-08          FY-09          FY-10
      1      Apr 07                                      12307588
      2      May-07                                      10622939
      3      Jun-07         29074456      29941368        7748526
      4      Jul-07                        8649200        5197029
      5      Aug-07                        8345843       10453564
      6      Sep-07         19854276       4553183        6905401
      7      Oct-07                        9123104        6901142
      8      Nov-07                        8847684        7712314
      9      Dec-07         29147140       9507680       10796991
     10      Jan-08                       10381721       10075458
     11      Feb-08                        9260934       10931278
     12      Mar-08         29647182      10632532       13042371
              Total      107723054      109243258       112694601




Growth of consumers and consumption in LT 4 Category


TABLE 30:

                             FY-08         FY-09         FY-10
   Consumers (Nos)           17492          17829         18382
   Consumption
   (Units)                107723054      109243258      112694601


                             FY-11         FY-12         FY-13
   Consumers (Nos)           18952          19466         19993
   Consumption
   (Units)                124510848      136588320      150374268

The Society proposes to add 570 numbers of LT(4a) installations for FY-11.

The Society has regularized all unauthorized IP Set installations, brought to

the knowledge of the Society, as per the directions of the Commission.

However, Government of Karnataka vide letter dated 13.03.2009 sought for

the pending details of the unauthorized IP sets as on 31.03.2007 and directed

to regularize the same before 31.03.2009, the same was complied with.
                                         42

         The monthly assessed consumption of IP sets as directed by the Commission

         through metering of predominantly feeding IP sets are being furnished to the

         Commission regularly. A table showing the monthly consumption for FY-08,

         FY-09 and FY-10 are furnished above.


         For FY 11, the specific consumption per H.P. per year is estimated as 1,344

         units. The specific consumption       of 6,636 units/annum/ installation is

         considered for arriving at the IP Set consumption for FY-11.


         Similarly, for FY 12, the specific consumption per H.P. per year is estimated

         as 1,440 units. The specific consumption of 7109 units/annum/installation is

         considered for arriving at the IP Set consumption for FY-12.


         For FY -13, the specific consumption per H.P. per year is estimated as 1,548

         units. The specific consumption of 7,644 units/annum/ installation is

         considered for arriving at the consumption for FY -13.

21.2.5 : LT-4(b) & LT-4(c) Installations:


         TABLE 31: LT-4(b) & LT-4(c) Installations:


          Growth of consumers and consumption



                                      FY-08         FY-09         FY-10
             Consumers (Nos)            16            16            12
             Consumption
             (Units)                 146589         78883         58460


                                      FY-11         FY-12         FY-13
             Consumers (Nos)             9             9                8
             Consumption
             (Units)                  102614        150590        165786
                                43

The Society estimated the number of installations for LT 4(b) for FY-11 at 6

as the first year growth rate of FY-09 over FY-08 is -7 % and 4 year CAGR is -

12.5%. The consumption for FY-11 is arrived at 85512 units based on 1 year

growth rate of 52.67%.


The Society estimated the number of installations for LT 4(b) for FY-12 at 6

as the first year growth rate of FY-09 over FY-08 is -7% and 4 year CAGR is -

12.5%. The consumption for FY-12 is arrived at 112943 Units based on 1 year

growth rate of 32.07%.



The Society estimated the number of installations for LT 4(b) for FY-13 at 5

as the first year growth rate of FY-09 over FY-08 is -7% and 4 year CAGR is -

12.5%. The consumption for FY-13 is arrived at 124340 units, based on 1

year growth rate of 10.09%.



For LT 4(c) for FY-11, the three numbers of installations is arrived taking a

growth rate of 0%. The consumption for FY-11 is retained at 17102 Units,

based as the first year growth rate is 597.75%.



For LT4(c) for FY-12, the three numbers of installations is arrived taking a

growth rate of 0%. The consumption for FY-12 is retained at 37647 Units,

based as the first year growth rate is 120.13%.



For LT4(c) for FY-13, the three numbers of installations is arrived taking a

growth rate of 0%. The consumption for FY-13 is retained at 41446 Units

based as the 1 year growth rate is 10.09%.
                                          44

21.2.6   LT-5 Installations:
[

          TABLE 32: LT-5 Installations:
          Growth of consumers and consumption


                                       FY-08          FY-09     FY-10
             Consumers (Nos)            1493          1542       1593
             Consumption
             (Units)                  3114499        3475226   3786805


                                       FY-11          FY-12     FY-13
             Consumers (Nos)            1646          1681       1717
             Consumption
             (Units)                  3830957        4235360   4662737

          The number of installations for FY-08, FY -09 and FY-10 are 1493 and 1542,

          1593 respectively.    For the year FY-11, FY-12 & FY-13 the number of

          installations are 1646, 1681 & 1717 respectively.

          For FY-11, 1646 No. of installations are estimated based on the one year

          growth rate of 3.33% FY-11 over FY-10.


          For FY-12, 1681   No. of installations are estimated based on the one year

          growth rate of 2.13% FY-12 over FY-11.

          For FY-13, 1717 No. of installations are estimated based on the one year

          growth rate of 2.14% FY-13 over FY-12.


          The energy sales for FY-08, FY-09 and FY-10 are 3114499 Units and

          3475226, 3786805 Units respectively. For FY-11,FY-12 & FY-13 are 3830957,

          4235360 & 4662737 Units respectively.

         For FY-11, 3830957 units are estimated based on the one year growth rate of

         9.16% FY-11 over FY-10.


         For FY-12, 4235360 units are estimated based on the one year growth rate of

         10.57% FY-12 over FY-11.
                                          45

         For FY-13, 4662737 units are estimated based on the one year growth rate of

         10.09% FY-13 over FY-12.

21.2.7   LT-6: Water Supply Installations:

          TABLE 33: LT-6 Water Supply Installations:

          Growth of consumers and consumption



                                         FY-08         FY-09          FY-10
              Consumers (Nos)             476           504            535
              Consumption
              (Units)                  4203670        4124348        4240229


                                       FY-11          FY-12          FY-13
              Consumers
              (Nos)                      568           585             603
              Consumption
              (Units)                 4651877        5138903         5657455


          The number of installations under this category for FY-08, FY-09 and FY -10

          are 476, 504 and 535 respectively. For FY-11, FY-12 & FY-13 the number of

          installations are estimated 568, 585 & 603 respectively.

          For FY-11, 568 No. of installations are estimated based on the one year

          growth rate of 6.16% FY-11 over FY-10.


          For FY-12, 585    No. of installations are estimated based on the one year

          growth rate of 2.99% FY-12 over FY-11.

          For FY-13, 603 No. of installations are estimated based on the one year

          growth rate of 3.07% FY-13 over FY-12.

          The consumption figures in respect of this category of installation are

          4203670, 4124348, Units and 4240229 Units for FY-08, FY-09 and FY -10

          respectively. For FY-11, FY-12 & FY-13 are estimated 4651877, 5138903 &

          5657455 respectively.
                                          46

         For FY-11, 4651877 units are estimated based on the one year growth rate of

         9.71% FY-11 over FY-10.


         For FY-12, 5138903 units are estimated based on the one year growth rate of

         10.47% FY-12 over FY-11.

         For FY-13, 5657455 units are estimated based on the one year growth rate of

         10.09% FY-13 over FY-12.


21.2.8   LT-6 Public Lighting Installations:

         TABLE 34:     LT-6 Public Lighting Installations:

         Growth of consumers and consumption



                                       FY-08         FY-09         FY-10
              Consumers (Nos)           222            218          240
                Consumption
                  (Units)            2016387        2027992      2151020


                                       FY-11         FY-12         FY-13
              Consumers (Nos)           264            272          279
                Consumption
                  (Units)            2257528        2503568      2756196


         The number of installations under this category for FY-08, FY-09 and FY -10

         are 222, 218 and 240 respectively and the number of installations is

         estimated at 264 for FY - 11. Number of installations is estimated at 272 for

         FY -12 and number of installations is estimated at 279 for FY - 13.

         For FY-11, 264 No. of installations are estimated based on the one year

         growth rate of 10% FY-11 over FY-10.


         For FY-12, 272    No. of installations are estimated based on the one year

         growth rate of 3% FY-12 over FY-11.
                                          47

          For FY-13, 279 No. of installations are estimated based on the one year

          growth rate of 2.57% FY-13 over FY-12.

          The consumption figures in respect of this category of installation are

          2016387, 2027992, Units and 2151020 Units for FY-08, FY-09 and FY -10

          respectively. For FY -11, 2257528, FY-12, 2503568, FY-13, 2756196       Units

          are estimated.

          For FY-11, 2257528 units are estimated based on the one year growth rate of

          4.95% FY-11 over FY-10.


          For FY-12, 2503568 units are estimated based on the one year growth rate of

          10.90% FY-12 over FY-11.

          For FY-13, 2756196 units are estimated based on the one year growth rate of

          10.09% FY-13 over FY-12.

21.2.9   LT-7 Installations:

          TABLE 35: LT-7 Installations:

          Growth of consumers and consumption



                                        FY-08       FY-09        FY-10
            Consumers (Nos)              150         141          156
            Consumption (Units)         77598       44674        95754


                                        FY-11       FY-12        FY-13
            Consumers (Nos)              158         165          175
            Consumption (Units)        119717      150591       165786


          The number of installation under this category for FY-08, FY-09 & FY-10 are

          150, 141 & 156 respectively and the number of installations estimated for FY-

          11, FY-12 & FY-13 are 158, 165 & 175 respectively.
                                          48

          For FY-11, 158 No. of installations are estimated based on the one year

          growth rate of 1.28% FY-11 over FY-10.


          For FY-12, 165   No. of installations are estimated based on the one year

          growth rate of 4.43% FY-12 over FY-11.

          For FY-13, 175 No. of installations are estimated based on the one year

          growth rate of 6.06% FY-13 over FY-12.


          The consumption figures in respect of this category of installation are 77598

          Units and 44674, 95754 Units for FY08, FY-09 and FY -10 respectively. For

          FY-11, 119717, FY-12, 150591 & FY-13, 165786 Units are estimated.

          For FY-11, 119717 units are estimated based on the one year growth rate of

          25.02% FY-11 over FY-10.


          For FY-12, 150591 units are estimated based on the one year growth rate of

          25.78% FY-12 over FY-11.

          For FY-13, 165786 units are estimated based on the one year growth rate of

          10.09% FY-13 over FY-12.


21.3     HT CATEGORY

21.3.1    HT-1 INSTALLATIONS


          TABLE 36:    HT-1 Installations:


          Growth of consumers and consumption



                                        FY-08       FY-09        FY-10
            Consumers (Nos)               3           3            3
            Consumption (Units)        3492702     3815919      3910944


                                        FY-11       FY-12        FY-13
            Consumers (Nos)               3           3            4
            Consumption (Units)        4138802     4593012      5056480
                                          49

         The number of installations under this category for FY-08, FY-09 and FY -10

         are 3 in all three years. The first year growth rate of 0% is considered and the

         number of installations is estimated at 3 for FY -11. Number of installations is

         also estimated at 3 for FY -12 and number of installations is estimated at 4

         for FY13.



         The consumption figures in respect of this category of installation are

         3492702 Units and 3815919, 3910944 Units for FY08, FY-09 and FY -10

         respectively. For FY -11, 4138802, FY-12, 4593012 & FY-13, 5056480 Units

         are estimated.

         For FY-11, 4138802 units are estimated based on the one year growth rate of

         5.82% FY-11 over FY-10.


         For FY-12, 4593012 units are estimated based on the one year growth rate of

         10.97% FY-12 over FY-11.

         For FY-13, 5056480 units are estimated based on the one year growth rate of

         10.09% FY-13 over FY-12.


21.3.2   HT-2 (a) Installations:


         TABLE 37:        HT-2 (a) Installations:

         Growth of consumers and consumption



                                         FY-08        FY-09        FY-10
            Consumers (Nos)                5            4            5
            Consumption (Units)         5718142      5295274      5224209



                                         FY-11        FY-12        FY-13
            Consumers (Nos)                6            6            6
            Consumption (Units)         6037178      6663633      7336040
                                            50

          The number of installations under this category for FY-08, FY-09 and FY -10

          are 5, 4 and 5 respectively and the number of installations is estimated at 6

          for FY -11. Number of installations is estimated at 6 for FY -12 and number of

          installations is estimated at 6 for FY -13.


          The consumption figures in respect of this category of installation are

          5718142 Units and 5295274, 5224209 Units for FY08, FY-09 and FY -10

          respectively. For FY-11, 6037178, FY-12, 6663633 & FY-13, 7336040 units

          are estimated.


          For FY11, 6037178 Units is computed based on first year growth rate of

          15.56% FY-11 over FY-10.


          For FY12, 6663633 Units is computed based on first year growth rate of

          10.37% FY -12 over FY - 11.


          For FY13, 7336040 Units is computed based on first year growth rate of

          10.09% FY-13 over FY-12.



21.3.3   HT-2 (b) Installations:


          TABLE 38: HT-2 (b) Installations:

          Growth of consumers and consumption



                                          FY-08         FY-09      FY-10
             Consumers (Nos)                 5            5          5
             Consumption
             (Units)                     640239         542485    520859




                                          FY-11         FY-12      FY-13
             Consumers (Nos)                 5            5          5
             Consumption
             (Units)                     649895         752953    828931
                                          51



         The number of installations under this category for FY-08, FY-09 and FY -10

         are 5, 5 and 5 respectively. The first year growth rate of 0% is considered

         and the number of installations is estimated at 5 for FY11. Number of

         installations is estimated at 5 for FY12 and number of installations is

         estimated at 5 for FY13.


         The consumption figures in respect of this category of installation are 640239,

         542485 Units and 520859 Units for FY08, FY-09 and FY -10 respectively.


         The consumption figures in respect of this category of installation are 649895,

         752953 Units and 828931 Units for FY-11, FY-12 and FY -13 respectively.


         For FY -11, 649895 Units is computed based on first year growth rate of

         24.77% FY-11 over FY-10.


         For FY -12, 752953 Units is computed based on first year growth rate of

         15.86% FY-12 over FY-11.



         For FY -13, 828931 Units is computed based on first year growth rate of

         10.09% FY-13 over FY-12.


21.3.4 HT-3(a) Installations:

         TABLE 39: HT-3(a) Installations:


         Growth of consumers and consumption

                                       FY-08         FY-09          FY-10
           Consumers (Nos)                3             4              4
           Consumption (Units)        1893645       2029536        1455396


                                       FY-11         FY-12          FY-13
           Consumers (Nos)                4             4              5
           Consumption (Units)        2013358       2237372        2459898
                                  52



The number of installations under this category for FY-08, FY-09 and FY -10

are 3, 4 and 4 respectively. The first year growth rate of 33.33% is

considered and the number of installations is estimated at 4 for FY -11.




Number of installations is estimated at 4 for FY- 12 and number of

installations is estimated at 5 for FY13.



The consumption figures in respect of this category of installation are

1893645, 2029536 Units and 1455396 Units for FY - 08, FY-09 and FY -10

respectively.



The consumption figures in respect of this category of installation are

2013358, 2237372 Units and 2459898 Units for FY -11, FY-12 and FY -13

respectively.



For FY - 11, 2013358 Units is computed based on first year growth rate of

38.34% FY-11 over FY-10.



For FY - 12, 2237372 Units is computed based on first year growth rate of
11.13% FY-12 over FY-11.



For FY - 13, 2459898 Units is computed based on first year growth rate of
9.95% FY-13 over FY-12.
                                               53

               TABLE 40:

                    Summary of Sale of Energy for FY-08, FY-09 and FY-10.


SL.       Category of           Actuals for   Actuals for     Actuals for      %         %
No.        consumer                FY08         FY-09           FY-10       growth     growth
                                                                             of FY-   of FY-10
                                                                            09 over   over FY-
                                                                             FY-08       09
      LT Installations
  1   Bhagya Jyothi / Kutir         0                0            0           0          0
      Jyothi
  2   Domestic (All electric      16730377      17094441        17544408     2.18       2.63
      home & domestic
      lighting)
  3   Private professional           76759            80345        80278     4.67      -0.08
      institutions
  4   Commercial and Non           2537384          3011444      3642022     18.68     20.94
      residential
  5   Irrigation Pumpsets        107869643     109322141       112753061     13.47      3.13
  6   LT Industry                  3114499          3475226      3786805     11.58      8.96
  7   Public Water Supply          4203670          4124348      4240229     -1.89      2.81
  8   Public Lighting              2016387          2027992      2151020     0.57       6.06
  9   Temporary Supply               77598            44674        95754    -42.43     114.34
      LT Total                  136626317     139180611       144293577      6.83     158.79
      HT Installations
  8   HT – 1 Public Water          3492702          3815919      3910944     9.25       2.49
      Supply
  9   HT – 2(a) Industrial,        5718142          5295274      5224209     -7.40     -1.34
      Non Commercial and
      Non Industrial
      including Railways
10    HT – 2(b)                    6409239           542485       520859    -15.27     -3.99
      Commercial
11    HT – 3 Irrigation &          1893645          2029536      1455396     7.18      -28.29
      Agriculture farms, list
      includes societies etc.
12    HT – 4 Private                      -               -             -      -         -
      residential
      apartments
      HT Total                   11744728      11683214        11111408      -6.23    -31.13
      Total (LT + HT)           148371045     150863825       155404985      0.60     127.66
                                             54

22.       Annual Revenue Requirement and Tariff Revision for FY-11, FY -12 and

           FY -13.


           The Society is furnishing the details of projections and Annual Revenue

           Requirement for FY - 11, FY -12 and FY -13 and tariff revision for FY - 11, FY

           -12 and FY -13, in the following paragraphs;



  22.1     Energy Input at interface points projected for FY -11, FY -12 and FY -

           13:


            TABLE 41:


                     Details             For FY -11   For FY -12   For FY -13



              Power Purchase (MU)         201.562      221.718       243.89
               Sale of Power (MU)          171.03      188.24        207.23
                     Loss %                15.15          15.10      15.03
                 Average Cost of
                 Supply (in paise)       272.5128     272.1602     285.0622



22.2.      Qantum of input energy at interface points


           TABLE 42:


                                           Quantum of         Percentage
                       Year              power purchase      Growth over
                                             (MU)            previous year
                 2007-08   (Actuals)            175.324                   -
                 2008-09   (Actuals)            178.276                1.68
                 2009-10   (Actuals)            183.238                2.78
                 2010-11   (Projected)          201.562               10.00
                 2011-12   (Projected)          221.718               10.00
                 2012-13   (Projected)            243.89              10.00



         The energy available at interface points were 175.324 MU, 178.276 MU and

         183.238 MU for FY 08, FY-09 and FY-10 respectively. It is proposed to draw
                                           55

        201.562 MU, 221.718 MU and 243.89 MU for FY-11, FY -12 and FY -13

        respectively. This represents an increase of 1.68% and 2.78% growth for FY-09

        and FY-10 respectively. In the opinion of the Society, these modified projections

        are reasonable.



22.3.     Quantum of energy sales


          TABLE 43:
                                                         Percentage of
                                       Quantum of
                        Year                              Growth over
                                       Sales (MU)
                                                         previous year
              2007-08   (Actual)          148.37                -
              2008-09   (Actual)          15O.68              1.56
              2009-10   (Actual)          155.40              3.13
              2010-11   (Projected)       171.03             10.06
              2011-12   (Projected)       188.24             10.06
              2012-13   (Projected)       207.23             10.09



          The quantum of energy input and sales for the previous years are depicted in

          the above tables. The sales figure for FY - 08, FY - 09 and FY -10 were 243.89

          MU, 15O.68 MU and 155.40 MU. The energy input and sales figures projected

          in MYT filing have been suitably modified taking into consideration the

          historical growth registered in the previous years.

22.4       Annual Revenue Requirement

         TABLE 44:
                                                   in Rs. in Lakhs.

        Sl.                                        FY11           FY12        FY13
        No.               Details                Projected      Projected   Projected
               Power Purchase                      201.562        221.718     243.890
               Sale of Power (MU)                   171.03         188.24     207.230
               Loss %                              15.15%         15.10%      15.03%
               Average Cost of Supply
                                (in Rs)               3.18          3.24        3.37

           1   Receipts
               Revenue from tariffs & Miscell.
           a   Charges                             6401.77        7175.55     8218.92
                                         56

        b    RE subsidy from Govt.                    -              -            -
             Revenue to wires business
             Total
        2    Expenditure
        a    Power Purchase                   5492.76      6034.27       6952.38
        b    R&M Expense                       149.92       162.61        176.36
        c    Employee Expenses                 390.71       449.86        519.62
        d    A&G Expense                        40.32        37.92         38.62
        e    Depreciation                       55.64        62.03         67.68
             Advance against depreciation
        f    Interest & Finance Charges           2.51            0.60         0.29
             Less: Interest & other
        g    expenses capitalised               -71.00      -71.50        -74.00
        h    Other Debits                       136.20      152.05        173.80
         i   Extraordinary Items                 38.74       43.00         47.80
             Other (Misc.)-net prior period
        j    credit
             Total                            6235.80      6870.84       7902.55
        3    ROE 14%                          194.32       199.75        203.25
        4    Other Income
        5    Provision for taxes                73.83       104.96        113.12
             Annual Revenue
             Requirement (2)+(3)+(5)-
        6    (4)                              6503.95     7175.55        8218.92
             Surplus(+) / Shortfall(-) :
        7    (1)-(6)                          -102.18         -            -
             before tariff revision


       Average cost of supply for FY-11, FY -12 and FY -13



22.5   Category wise Revenue from existing tariff for FY -11. FY -12 and

       FY13:



       Taking into consideration the proposed tariff and projected demand, the

       revenue realization from sale of power works out to Rs. 63,61,55,157/-.

       Rs. 71,31,07,640/- lakhs and Rs. 81,66,68,612/-, for FY - 11, FY - 12 and

       FY - 13 respectively, excluding Miscellaneous Income such as reconnection

       fee, Public lighting handling charges, delayed payment charges etc. of the

       respective years. Category wise revenue from sale of power is indicated in the

       following table:
                                           57



           TABLE 45:
Category wise Revenue:
                                        Projected       Projected         Projected
SL.                                    Revenue for     Revenue for       Revenue for
No.      Category of consumer             FY11            FY12              FY-13
        LT Installations
1       Bhagya Jyothi / Kutir
        Jyothi                             0                 0                 0
    2   Domestic (All electric home
        & domestic lighting)            57488504.00      66278677.00       73442258.00
    3   Private professional
        institutions                      499079.00        768948.00         852562.00
    4   Commercial and Non
        residential                     23763167.00      26530731.00       29282816.00
    5   Irrigation Pumpsets            453116468.00    508163360.00      589715003.00
    6   LT Industry                     17130345.00     18639091.00       20702552.00
    7   Public Water Supply             18925545.00     20772901.00       22969267.00
    8   Public Lighting                  9169606.00     10112358.00       11135032.00
    9   Temporary Supply                  897878.00      1129433.00        1243395.00
                  LT Total            580990592.00    652395499.00      749342885.00
             HT Installations
    8   HT – 1 Public Water Supply      17348888.00      19074886.00       21034957.00
    9   HT – 2(a) Industrial, Non
        Commercial and Non
        Industrial including
        Railways                        31802282.00      34770294.00       38734291.00
 10     HT – 2(b) Commercial             3899370.00       4517718.00        4973586.00
 11     HT – 3 Irrigation &
        Agriculture farms, list
        includes societies etc.          2114026.00       2349241.00        2582893.00
 12     HT – 4 Private residential
        apartments                               0               0                 0
                  HT Total             55164566.00     60712139.00       67325727.00
             Total (LT + HT)          636155158.00    713107638.00      816668612.00
              Misc. Charges             3060799.00      3712000.00        4476000.00
                Grand Total           639215957.00    716819638.00      821144612.00



22.6       Miscellaneous Revenue and other income:

           This comprises income mainly from interest on delayed payment charges,

           reconnection fee etc. The Society has estimated this income at Rs. 30.61, Rs.

           37.12 lakhs and Rs. 44.76 Lakhs, for FY-11, FY- 12 and FY-13 respectively.
                                         58

        TABLE 46: Miscellaneous charges from consumers


       Particulars                                  FY 11        FY 12      FY 13
       Reconnection Fee in lakh Rs.                     0.05        0.07       0.10
       Interest on belated Payment charges in           9.00       10.00      12.00
       lakhs Rs.
       Other receipts                                 21.56        27.05      29.50
       Sub Total                                    30.61        37.12      44.76
       Less
       Withdrawal of Revenue Demand                   Nil         Nil         Nil
       Sub Total                                     Nil          Nil        Nil
       Grand Total (of Difference)                  30.61        37.12      44.76


23.1    Surplus /deficit:

        The Society may incur a cash loss of Rs. 101.31 lakhs on account of sale of

        power to consumers other than IP Sets in FY -11. The Society is proposing to

        make good of this loss out of Rs. 136.20 lakhs which is the notional interest

        on working capital included in the cost of supply for FY – 11.


        For FY -12 and FY – 13, the Society is proposing no loss no profit in the

        projections in which notional interest on working capital and Return on Equity

        at 14% is included.


        In all three years of control period, the Society is not seeking any subsidy

        from the GoK. However, the GoK is supposed to reimburse the cost of supply

        towards the power supply to IP Set consumers, as per its policy to give free

        power to IP Sets. Hence in the control period receivable on account of IP Sets

        is taken at cost of supply rate after deducting the available cross subsidy.


23.2    Distribution Loss


        The Society has reduced the distribution loss level to 15.15 % for FY11 from

        15.19% in FY 10; 15.10% in FY -12 and 15.03% in FY -13, which shows a

        reduction to an extent of 0.04%. 0.09% and 0.07% loss in FY11, FY-12 and
                                               59

              FY -13, respectively. The Society prays the Hon‟ble Commission to approve

              the same.


  24         TARIFF REVISION PROPOSALS


  24.1         For FY -11

              The Society has not proposed any revision of tariff to any category of

              consumers for FY - 11 except for IP Set consumers. The Society is proposing

              to fix IP Set tariff up to 10 HP at the cost of supply price, which will be

              Rs. 3.64 per unit, effective from 1-4-2010 till 31-3-2011. The said price of

              Rs. 3.64 is subject to the determination of cost of supply to IP Set consumers,

              by this Hon‟ble Commission.


  24.2.      For FY -12 and FY -13:



 24.2.1.     LT CATEGORY WISE TARIFF REVISION


              The detailed tariff proposal for the ensuing year (FY-11 and FY -12) is

              furnished in Format D - 21.


24.2.1.2.      LT - 1 Bhagyajyothi / Kutirjyothi

              The Society does not have any consumers under this category. Hence, the

              Socity is not proposing any tariff to this category of consumers


 24.2.1.3.    LT 2(a)     Domestic Lighting & AEH



              The estimated specific consumption of this category of consumers of the

              Society is 474 units per month per consumer for FY10. The Energy Charges

              for the slabs has been proposed to increase at 4.25 paise per unit per month

              in FY -12 and FY -13, respectively, with a view to bring them closer to the

              Average Cost of Supply.
                                 60


The energy charges proposed to be increased as indicated in the table below.



TABLE 47:
Proposed Tariff for LT 2(a)(i)                            (in Rs.)
   Particulars                 Existing            Proposed tariff
                               Tariff           For FY-2  For FY-13
   Fixed     Charges     per
   month
       First KW                       20           20            20
       Additional KW                  30           30            30
   Energy Charges per
   month
   Cons.< 30 units
                                  1.85            2.18          2.16
   Cons.>30, <= 100 units
                                  2.90            3.33          3.29
   Cons.>100, <= 200 units
                                  3.60            4.36          4.32
   Cons.>200, <= 300 units
                                  4.20            5.21          5.14
   Cons.>300, <= 400 units
                                  4.45            5.19          5.15
    Cons.>400 units
                                  4.70            5.20          5.14


TABLE 48:


Proposed Tariff for LT 2(a)(ii)                             (in Rs.)


   Particulars                        Existing     Proposed Tariff
                                      Tariff
                                                  FY-12       FY-13
   Fixed Charges per month
       First KW                            10       10           10
       Additional KW                       20       20           20
   Energy Charges per month
   Cons.< 30 units
                                       1.85         2.16        2.24
   Cons.>30, <= 100 units
                                       2.90         3.26        3.36
   Cons.>100, <= 200 units
                                       3.60         4.36        4.48
   Cons.>200, <= 300 units
                                       4.10         4.88        5.04
   Cons.>300, <= 400 units
                                       4.35         4.90        5.05
      Cons.>400 units
                                       4.60         4.89        5.04
                                             61



24.2.1.4    LT – 2(b) Private Professional Institutes

           These categories of consumers constitute private, professional educational

           institutes. The Energy Charges for all the existing slab consumptions have

           been proposed to be increased by 5.62 paise/unit for FY -12 and 5.63 paise

           /unit for FY -13, respectively, as indicated in the table below.




           Proposed Tariff for LT 2(b) (i)                               (in Rs.)
           TABLE 49:


              Particulars                         Existing     Proposed Tariff
                                                  Tariff
                                                             FY-12     FY-13
              Fixed Charges per month                30        30         30
              subject to a minimum of Rs
              60/-
              Energy Charges per month
                 Cons.< 100 units
                                                    4.15       4.56       4.51
                 Cons.>100, <= 200 units
                                                    4.65       5.08       5.02
                 Cons.>200, <= 400 units
                                                    4.9        5.64       5.60
                 For the balance units
                                                    5.25       6.21       6.15



           Proposed Tariff for LT 2(b) (ii)                               (in Rs.)
           TABLE 50:
              Particulars                     Existing        Proposed Tariff
                                              Tariff
                                                             FY-12     FY-13
              Fixed Charges per month               20          20        20
              subject to a minimum of Rs.
              40/-
              Energy Charges per
              month
                 Cons.< 100 units                              5.10
                                                   4.15                   5.18
                 Cons.>100, <= 200 units                       5.73
                                                   4.65                   5.80
                 Cons.>200, <= 400 units                       6.10
                                                   4.90                   6.16
                 For the balance units             5.25        6.55       6.63
                                                62

24.2.1.5        LT 3: Commercial

           The existing commercial tariff is above the average cost of supply and is the

           main component for the cross subsidy in tariffs to IP Sets. In view of un-met

           gap in the financials of the Society, it becomes all the more necessary to

           propose to increase this category also. Hence it is proposed to increase

           Energy charges by 6.20 paise/unit for FY -12 and 6.29 paise/unit for FY -13,

           respectively, as indicated in the table below.
           [




           TABLE 51:

           Proposed Tariff for LT 3(i)                               (in Rs.)


                    Particulars                  Existing    Proposed Tariff
                                                 Tariff
                                                            FY-12       FY-13
                    Fixed Charges Per KW             35        35          35
                    per month
                    Demand based Tariff
                    (Optional)
                    Fixed Charges Per KW per         50       50           50
                    month
                    Energy Charges per
                    month
                       For the first 50 units        5.05     5.60        5.68
                      For the balance units          6.00     6.80        6.89
           [[




           TABLE 52:

           Proposed Tariff for LT 3 (ii)                                (in Rs.)

                  Particulars                    Existing    Proposed Tariff
                                                 Tariff
                                                            FY-12       FY-13
                  Fixed Charges per KW Per           25        25          25
                  Month
                  Demand based Tariff
                  (Optional)
                  Fixed Charges Per KW per           40       40           40
                  month
                  Energy Charges per
                  month
                     For the first 50 units          5.05     5.40        5.46
                    For the balance units            6.00     6.40        6.45
                                            63

24.2.1.6   LT 4 Agricultural I P Sets


           As at the end of FY-10, there are around 18382 registered IP Set consumers.

           Energy consumption under this category for FY-10 is 11.269 MUs based on

           assessed consumption. For FY -11, taking into consideration the specific

           consumption of 6570 units/I P set/year and the figure of 18952 IP set

           installations, the consumption is expected to grow up to 12.451 MUs during

           FY - 11.



           For FY-12, taking into consideration the specific consumption of 7016 units/I

           P set/year and the figure of 19466 IP set installations, the consumption is

           expected to grow up to 13.658 MUs during FY12.



           For FY - 13, taking into consideration the specific consumption of 7521 units/I

           P set/year and the figure of 19993 IP set installations, the consumption is

           expected to grow up to 15.037 MUs during FY- 13.



           The Society is proposing to fix IP Set tariff up to 10 HP at the cost of supply

           price adjusted after cross subsidy, which will be Rs. 3.71 and Rs. 3.92 per

           unit, for FY -12 and FY – 13, respectively. The said prices are subject to the

           determination of cost of supply to IP Set consumers, by this Hon‟ble

           Commission.



              Particulars                                   Proposed tariff
                                                        for FY 12  For FY 13
              Monthly Fixed Charges                         Nil          Nil

              Energy Charges per unit per month            3.72         3.92
                                 64

Proposed Tariff for LT4 (b)


For this category of consumers, it is proposed to increase Energy charges by

25 paise/unit in FY -12 and FY-13, respectively, as indicated in the table

below.



TABLE: 53
Applicable to IP sets above 10 HP


   Particulars                    Existing        Proposed tariff
                                  Tariff      for FY 12  For FY 13
   Monthly Fixed Charges per           30            30      30
   HP
   Energy Charges per unit            1.00       1.25       1.25
   per month



Proposed Tariff for LT 4(c): Applicable to Private Horticultural

Nurseries, coffee and Tea plantations irrespective of sanctioned load.



It is proposed to increase Energy charges by 25 paise/unit, in FY-12 and FY -

13, respectively, as indicated in the table below.




TABLE : 54



  Particulars                    Existing         Proposed tariff
                                 Tariff       for FY 12 For FY 13
  Monthly Fixed Charges per           30             30      30
  HP
  Energy Charges per unit             1.00       1.25       1.25
  per month
                                            65

24.2.1.7   LT 5: Industrial, Non-Industrial Heating and Motive Power

           The Energy Charges for all the existing slab consumptions have been

           proposed to be increased As per the proposed tariff the slab wise rates are

           given below.


           TABLE 55:

           Proposed Tariff for LT – 5 (b)                   (in Rs )


             Particulars                         Existing            Proposed tariff
                                                 Tariff         for FY 12   For FY 13
             Fixed Charges per HP per
             Month
             < 5 HP                                       20             20            20
             5 – 40 HP                                    25             25            25
             40 – 67 HP                                   35             35            35
             > 67 HP                                     100            100           100
             Energy Charges per month
             Cons.< 500 units
                                                         3.30           3.60          3.69
             Cons.< 500, <= 1000 units
                                                         3.80           4.20          4.32
             Cons.> 1000 units
                                                         4.05           4.60          4.73


           TABLE 56:

           Demand based Tariff (per KW)

             Particulars                  Existing            Proposed tariff
                                          Tariff          for FY 12  For FY 13
             Fixed     Charges      per
             month per KW
             > 5 HP, < 40 HP
                                                    40             40           40
             >40 HP, < 67 HP
                                                    60             60           60
             > 67 HP
                                                   150            150          150
             Energy Charges per
             month
             Cons.< 500 units
                                                  3.30           3.60          3.69
             Cons.< 500, <= 1000
             units                                3.80           4.20          4.32
             Cons.> 1000 units
                                                  4.05           4.60          4.73
                                             66



24.2.1.8    LT 6(a) : Water Supply, Sewerage, Pumping, etc.


            It is proposed to increase the tariff by 60 paise per unit increase for both

            water supply installations and street light installations for FY -11 and FY -12,

            respectively.


             TABLE 57:

               Proposed Tariff for LT – 6(a)                        (in Rs )


              Particulars                   Existing          Proposed tariff
                                            Tariff        for FY 12  For FY 13
              Water Supply
              Installations
              Fixed Charges (Rs per HP               35           35            35
              per Month)
              Energy Charges (Rs per               3.10         3.70           3.74
              unit)




 24.2.1.9    LT 6(b) : Street light

            It is proposed to increase the tariff by 70 paise per unit increase for both

            water supply installations and street light installations for FY -11 and FY -12,

            respectively.



            TABLE 58:                   Street light


              Particulars                   Existing          Proposed tariff
                                            Tariff        for FY 12  For FY 13
              Fixed Charges (Rs per kW               50           50            50
              per Month)
              Energy Charges (Rs per               3.10         3.80           3.82
              unit)
                                               67

  24.2.1.10     LT – 7: Temporary Power Supply

              It is proposed to increase the tariff by 150 paise per unit increase for both

              water supply installations and street light installations for FY -11 and FY -12,

              respectively.



              TABLE 59:

              Proposed Tariff for LT – 7                                  (in Rs.)


                 Particulars                   Existing           Proposed tariff
                                               Tariff         for FY 12  For FY 13
                 Fixed    Charges    for
                 sanctioned Load of 67
                 HP and below
                 Weekly Minimum Per KW               150            150          150
                 Energy Charges per                       6       7.50          7.50
                 month




 24.2.2.    HT CATEGORY WISE TARIFF REVISION

              The details of tariff proposal are furnished in Tariff Format D-21 of ERC &

              Tariff Filing Formats for FY10


24.2.2.1    HT – 1: Public Water Supply and Sewage Pumping Installations


              Minimum charges Rs. 180 per kVA per month. It is proposed to increase the

              Energy charges to the extent of Rs. 0.65 per unit i.e. Rs. 3.15 per unit to Rs.

              3.80   & Rs. 3.83 per unit to meet the cost of supply in FY -12 and       FY-13

              respectively.


 24.2.2.2    HT - 2(a) Industrial, Non Industrial and Non Commercial


              It is proposed to increase the energy charges by 80 paise per unit up to one

              lakh unit and 60 paise per unit above one lakh unit consumption in both FY -

              12 and FY -13, respectively, as indicated in the table below.
                                             68

            TABLE 60:

            Proposed Tariff for HT 2(a)(ii)                 (in Rs.)


               Particulars              Existing             Proposed tariff
                                        Tariff          for FY 12   For FY 13
               Demand Charges                170           170               170
               per kVA
               Energy Charges
               Cons.< 1 lakh units/         3.80           4.60          4.71
               month
               For the balance units        4.30           4.90          5.00



 24.2.2.3    HT 2 (b) Commercial


            There exists two consumption slabs for billing this category of consumers i.e.

            <=2 lakh units and > 2 lakh units per month which have been proposed to

            increase by 115 paise per unit as detailed below, for both FY -12 and FY -13,

            respectively.


            TABLE 61:

            Proposed Tariff for HT 2(b)(ii)               (in Rs.)


               Particulars                   Existing         Proposed tariff
                                             Tariff       for FY 12  For FY 13
               Demand Charges per kVA              190            190              190
               Energy Charges
               Cons.< 2 lakh units/                4.85           6.00         6.00
               month
               Cons.>2 lakh units/month            5.15           6.30         6.30




24.2.2.4    HT 3(a) Agriculture



            It is proposed to increase the energy charges by 25 paise per unit, for both FY

            -12 and FY -13, respectively, as indicated in the table below.
                                                    69

                 TABLE 62:

                 Proposed Tariff for HT 3(a) (i)                      (in Rs.)


                     Particulars        Existing Tariff               Proposed tariff
                                                              for FY 12     For FY 13
                                    80ps. /unit subject       1.05 Rs. /unit     1.05 Rs. /unit
                    Energy
                                    to annual minimum         subject to         subject to annual
                    Charges/Minimum
                                    of Rs.1000/HP/            annual             minimum of
                    Charges
                                    annum                     minimum of         Rs.1000/HP/
                                                              Rs.1000/HP/        annum
                                                              annum



       24.3.     Summary of Tariff Revision

                 The revenue at proposed tariff works out to Rs. 7114.21 lakhs and Rs.

                 8162.90 lakhs, for FY -12 and FY -13, respectively. The category wise tariff

                 revision proposal is detailed in the table below:


                 TABLE 63:

   24.3.1.     Summary of Tariff Revision across categories



                                                                                Proposed           %
           Category of the consumers
                                                           Existing            Revenue for      Increase
                                                           Revenue               FY -11
LT 1           Bhagya Jyoti/ Kutira Jyoti                     0                     0                 0

LT2(a)(i)                                                      0                 0                     0
LT2(a)(ii)     Urban local bodies                          16554157.00        19080695.00         15.26%
LT2(a)(iii)    Village Panchayath                          32860294.00        38407808.00         16.88%
LT2(b)(i)      Urban Local Bodies Area                       196990.00          213630.00          8.45%
LT2(b)(ii)     Village Panchayath Area                       233644.00          285449.00         22.17%
LT 3(i)        Urban Local Bodies Area                     11528134.00        12678528.00          9.98%
LT 3(ii)       Village Panchayath Area                     11668041.00        11084639.00          (-)5%
LT 4 (a)(i)    Below 10 HP IP set                          69681525.00       452841680.00       549.87%
LT 4(b)        Irrigation Pump sets (above 10 HP)            175169.00          247650.00       41.38%
LT 4(C)        Private Horticulture Nurseries                  8211.00           27138.00       230.50%
LT 5(b)        Urban Local Bodies                          16371817.00        17130345.00          4.63%
LT 6           Water Supply – Rural                        14856676.00        18925545.00         27.39%
LT 6           Public Lighting – Rural                      7738557.00         9169606.00         18.49%
LT 7           Temporary Power Supply                        846209.00          897878.00          6.11%
               LT Total                                  182719424.00       580990591.00         72.78%
                                                    70

HT 1             Public Water Supply and Sewage
                 Pumping                                   13842994.00        17348888.00     25.33%
HT 2(a)(ii)      Urban Local Bodies Area                   24954934.00        31802282.00     27.44%
HT 2(b)(ii)      Village Panchayath Area                    3296692.00         3899370.00     18.28%
                                                                                                   (-
HT 3(a)(i)       Urban Local Bodies Area                    2671312.00        2114026.00     )20.86%
                 HT Total                                 44765932.00       55164566.00      50.19%
                 Grand Total                             227485356.00      636155157.00      61.49%


       24.3.2.     Summary of Tariff Revision across categories
                   TABLE 64:



                                                                         Proposed
                                                                                             %
              Category of the consumers              Existing            Revenue for
                                                                                          Increase
                                                     Revenue             FY -12
       LT2(a)(ii)     Urban local bodies               19080695.00         21440332.00      12.37%
       LT2(a)(iii)    Village Panchayath               38407808.00         44838345.00      16.74%
       LT2(b)(i)      Urban Local Bodies Area             213630.00           347297.00     62.57%
       LT2(b)(ii)     Village Panchayath Area             285449.00           421652.00     47.72%
       LT 3(i)        Urban Local Bodies Area          12678528.00         14084516.00      11.08%
       LT 3(ii)       Village Panchayath Area          11084639.00         12446215.00      12.28%
       LT 4 (a)(i)    Below 10 HP IP set              452841680.00        507828603.00      12.14%
       LT 4(b)        Irrigation Pump sets (above
                      10 HP)                                247650.00        281939.00    (-)13.85%
       LT 4(C)        Private Horticulture
                      Nurseries                           27138.00            52819.00      94.63%
       LT   5(b)      Urban Local Bodies               17130345.00         18639091.00       8.81%
       LT   6         Water Supply – Rural             18925545.00         20772901.00       9.76%
       LT   6         Public Lighting – Rural           9169606.00         10112358.00      10.28%
       LT   7         Temporary Power Supply             897878.00          1129433.00      25.79%
                      LT Total                       580990591.00        652395501.00       12.29%
       HT 1           Public Water Supply and
                      Sewage Pumping                   17348888.00         19074886.00       9.95%
       HT 2(a)(ii)    Urban Local Bodies Area          31802282.00         34770294.00       9.33%
       HT 2(b)(ii)    Village Panchayath Area           3899370.00          4517718.00       1.59%
       HT 3(a)(i)     Urban Local Bodies Area           2114026.00          2349241.00      11.13%
                      HT Total                        55164566.00         60712139.00        8.00%
                      Grand Total                    636155157.00        713107640.00       12.10%
                                             71

24.3.3. Summary of Tariff Revision across categories
TABLE 65:


                                                                  Proposed
                                                                                        %
        Category of the consumers              Existing           Revenue for
                                                                                     Increase
                                               Revenue            FY -13
LT2(a)(ii)     Urban local bodies                21440332.00        23256698.00        8.47%
LT2(a)(iii)    Village Panchayath                44838345.00        50185560.00       11.93%
LT2(b)(i)      Urban Local Bodies Area              347297.00          384217.00      10.63%
LT2(b)(ii)     Village Panchayath Area              421652.00          468345.00      11.07%
LT 3(i)        Urban Local Bodies Area           14084516.00        15574369.00       10.58%
LT 3(ii)       Village Panchayath Area           12446215.00        13708447.00       10.14%
LT 4 (a)(i)    Below 10 HP IP set               507828603.00       589345505.00       16.05%
LT 4(b)        Irrigation Pump sets (above
               10 HP)
                                                    281939.00          310850.00      10.25%
LT 4(C)        Private Horticulture
               Nurseries
                                                    52819.00           58648.00       11.03%
LT   5(b)      Urban Local Bodies                18639091.00        20702552.00       11.07%
LT   6         Water Supply – Rural              20772901.00        22969267.00       10.57%
LT   6         Public Lighting – Rural           10112358.00        11135032.00       10.11%
LT   7         Temporary Power Supply             1129433.00         1243395.00       10.09%
               LT Total                        652395501.00       749342885.00        14.86%
HT 1           Public Water Supply and
               Sewage Pumping                    19074886.00        21034957.00       10.28%
HT 2(a)(ii)    Urban Local Bodies Area           34770294.00        38734291.00       11.40%
HT 2(b)(ii)    Village Panchayath Area            4517718.00         4973586.00       10.09%
HT 3(a)(i)     Urban Local Bodies Area            2349241.00         2582893.00        9.95%
               HT Total                         60712139.00        67325727.00        10.43%
               Grand Total                     713107640.00       816668612.00        14.40%

24.4.       Additional Revenue from tariff hike


            The Society would earn Rs. 2274.85 lakhs excluding miscellaneous revenue

            for FY - 10 at existing tariff. The proposed increased tariff across all

            categories will lead to additional revenue of about Rs. 4086. 70 Lakhs, Rs.

            769.52 lakhs and Rs. 1035.61 lakhs which will fully meet the revenue gap of

            FY -11, FY -12 and FY -13, respectively. In this calculation, the existing IP Set

            Tariff is considered at the rate of 62 paise and IP Set tariff for FY – 11 is

            taken as 364 paise and For FY -12, the same is taken as 372 paise ad for FY

            -13, the same is taken as 392 paise, respectively.
                                              72



25.       PRYAER


          WHEREFORE, in the light of above submissions, the Applicant Society prays

          that the Hon'ble Commission may be pleased to:


         a)   Consider and approve the Annual Revenue Requirement of the Society

              for FY -11, FY -12 and FY -13 respectively;



         b)      Consider and approve the tariff proposals of the Society for FY -11, FY -

              12 and FY -13 respectively;



         c) Allow the recovery of expenses incurred by the Society in respect of this

              filing through tariff, while truing up of the accounts of the Society;



         d)   Pass such other and further orders as may deem fit in the circumstances

              mentioned above, in the interest of justice.

Place: Hukkeri

Date:21-3-2011                                            APPLICANT

				
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