Upload
others
View
8
Download
0
Embed Size (px)
Citation preview
Submitted to Jharkhand State Electricity Regulatory Commission,Jharkhand State Electricity Regulatory Commission,Jharkhand State Electricity Regulatory Commission,Jharkhand State Electricity Regulatory Commission,
Ranchi
By
License Area – Saraikela - Kharasawan
JAMSHEDPUR UTILITIES & SERVICES COMPANY LIMITED
JAMSHEDPUR
November 11
Petition to
Hon’ble Jharkhand State Electricity Regulatory Commission for
Filing of Aggregate Revenue Requirement (“ARR”)
and
Determination of Tariff for 2012-13
of
Jamshedpur Utilities & Services Company Limited
TARIFF PETITION & FORMATS
I
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
BEFORE THE JHARKHAND STATE ELECTRICITY REGULATORY COMMISSION, RANCHI
Filing No…………
Case No…………
IN THE MATTER OF: Filing of the Aggregate Revenue Requirement (ARR) and
Determination of Tariff for FY 2012-13 for the Licensee
under Section 45, 46, 61, 62 and 86 of the Electricity Act,
2003 and as per the regulations of Jharkhand State
Electricity Regulatory Commission (JSERC) (Terms And
Conditions For Distribution Tariff) Regulation, 2010.
AND
IN THE MATTER Of: Jamshedpur Utilities and Service Company Limited
(hereinafter referred to as "JUSCO" which shall mean for
the purpose of this petition the Licensee), a company
incorporated under the provisions of the Companies Act,
1956 and having its main office at Jamshedpur - Petitioner
The Petitioner respectfully submits as under: -
1. Jamshedpur Utilities and Services Company Limited (JUSCO) is a company
incorporated in August 2003 under the provisions of The Companies Act, 1956
and is a wholly owned subsidiary of Tata Steel Limited.
2. JUSCO is the second power distribution licensee in Saraikela-Kharasawan area.
3. Pursuant to the enactment of the Electricity Act, 2003, JUSCO is required to
submit its ARR and Tariff Petitions as per procedures outlined in section 61, 62
and 64, of EA 2003, and the governing regulations thereof.
4. JUSCO had filed its last petition in January 2011 for approval of the ARR for FY
2009-10 and FY 2010-11 and determination of ARR & distribution tariff for FY
2011-12. The Hon’ble Commission issued its order on the same in August 2011.
The new tariff was applicable from 1st
September 2011.
II
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5. The present petition is filed with the Hon’ble Commission for truing up of
Aggregate Revenue Requirement (ARR) for the FY 2010-11; Review of the revised
estimated ARR for FY 2011-12; approval for the projected ARR of FY 2012-13 for
JUSCO as per the Electricity Act, 2003, as per the provisions of the regulations
issued by the Hon’ble Jharkhand State Electricity Regulatory Commission (JSERC)
(Terms and Conditions For Distribution Tariff) Regulations, 2004, and JSERC
(Terms and Conditions for Determination of Distribution Tariff) Regulations,
2010, for the area under its operation.
6. This application has been prepared in accordance with Section 61, 62 of the
Electricity act 2003 and has taken into consideration the provisions of the JSERC
(Terms and Conditions for Distribution Tariff) Regulations, 2004 and JSERC
(Terms and Conditions for Distribution Tariff) Regulations, 2010, as notified by
Hon’ble Jharkhand State Electricity Regulatory Commission.
7. JUSCO has made best efforts to provide the necessary data in the prescribed
formats. Along with this petition, JUSCO is also submitting the statutory formats
with data and information to the extent available and would make available any
additional data required by the Hon’ble Commission from time to time.
Prayers to the Commission:
The petitioner respectfully prays that the Hon’ble Commission may:
� Examine the proposal submitted by the petitioner as detailed in the enclosed
proposal for a favourable dispensation;
Pass suitable orders with respect of the net ARR for FY 2012-13 as proposed by
JUSCO in this petition amounting to 14,409 Lacs along with the relevant
operational and financial parameters as proposed in the petition;
� Pass suitable orders with respect to the ARR for FY 2010-11 and FY 2011-12 for
the expenses already incurred by JUSCO for serving its consumers and approve
treatment of the gap as proposed by JUSCO;
� Accordingly, permit the petitioner to recover the unrecovered gap of FY 2010-11,
2011-12 and the likely gap for FY 2012-13;
III
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
� JUSCO may also be permitted to propose suitable changes to the respective ARRs
and the mechanism of meeting the revenue on further analysis, prior to the final
approval by the Hon’ble Commission;
� Condone delay in submission of the petition and Hon’ble Commission is
requested to accept the same for further processing;
� Condone any inadvertent omissions/errors/shortcomings and permit JUSCO to
add/change/modify/alter this filing and make further submissions as may be
required at a future date;
� Pass such further order, as the Hon’ble Commission may deem fit and
appropriate keeping in view the facts and circumstances of the case.
Jamshedpur Utilities and Service Company Ltd.
Petitioner
Jamshedpur
Dated: 10th
November 2011
IV
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
TABLE OF CONTENTS
CHAPTER DESCRIPTION PAGE
Chapter 1. Introduction ______________________________________________ 1-1
Chapter 2. Overall approach for present filing ____________________________ 2-3
Chapter 3. Truing up for FY 2010-11 ___________________________________ 3-11
Chapter 4. Review of Performance in FY 2011-12 _________________________ 4-29
Chapter 5. ARR Determination for FY 2012-13 ___________________________ 5-52
Chapter 6. Proposed Tariff Schedule ___________________________________ 6-71
Chapter 7. Compliance to Directives ___________________________________ 7-85
V
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
LIST OF TABLES
TABLE DESCRIPTION PAGE
Table 1: Assumptions for Allocation of Assets and Costs ................................................. 2-5
Table 2: Assumptions with Rationale for APR FY2011-12 & ARR FY2012-13 ................... 2-8
Table 3: Energy Balance for FY 2010-11 .........................................................................3-11
Table 4: Power Purchase Cost FY 2010-11 ......................................................................3-12
Table 5: Operation and Maintenance Expenses for FY 2010-11 .....................................3-14
Table 6: Comparison of per Unit O&M Costs ..................................................................3-15
Table 7: Interest during Construction Calculation ..........................................................3-16
Table 8: CWIP, GFA and Depreciation for FY 2010-11 ....................................................3-17
Table 9: Gross Fixed Assets for FY 2010-11 .....................................................................3-18
Table 10: Depreciation Breakup for FY 2010-11 .............................................................3-19
Table 11: Interest on Normative Loan – FY 2010-11 ......................................................3-20
Table 12: Interest and Finance Charges for FY 2010-11 .................................................3-21
Table 13: Reasonable Rate of Return for FY 2010-11 .....................................................3-21
Table 14: Income Tax for FY 2010-11 ..............................................................................3-22
Table 15: Non-Tariff Income ...........................................................................................3-22
Table 16: Calculation of Sharing of Gains for FY 2010-11 ..............................................3-25
Table 17: Distribution Losses of Other Utilities ...............................................................3-26
Table 18: Past Recoveries & Other Gaps till FY 2009-10 .................................................3-27
Table 19: Summarised ARR and Revenue Gap for FY 2010-11 .......................................3-28
Table 20: Number of Consumers - FY 2011-12 (H1 + H2) ...............................................4-30
Table 21: Connected Load/Contract Demand for FY 2011-12 (H1 + H2) ........................4-31
Table 22: Average Load Factor FY 2011-12 ....................................................................4-32
Table 23: Energy Sales in FY 2011-12 (H1 + H2) .............................................................4-32
Table 24: Energy Sales in FY 2011-12 (Approved & Revised Projections) .......................4-33
Table 25: Energy Balance for FY 2011-12 .......................................................................4-34
Table 26: Power Purchase Cost for FY 2011-12 ..............................................................4-35
Table 27: Inflation Rate ...................................................................................................4-37
Table 28: Employee Cost for FY 2011-12 ........................................................................4-38
Table 29: Breakup of Employee Cost for FY 2011-12 (H1 + H2) ......................................4-39
Table 30: A & G Expenses for FY 2011-12 .......................................................................4-40
Table 31: Break up of A & G Expenses for FY 2011-12 (H1 + H2)....................................4-41
Table 32: O&M Expenses for FY 2011-12 ........................................................................4-42
Table 33: CWIP, GFA and Depreciation for FY 2011-12 ..................................................4-43
Table 34: GFA for FY 2011-12 .........................................................................................4-43
Table 35: Net Depreciation for FY 2011-12 .....................................................................4-44
VI
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 36: Normative Loans & Interest Cost for FY 2011-12 ............................................4-46
Table 37: Normative Equity & Return on Equity for FY 2011-12 ....................................4-47
Table 38: Revenue from Existing Tariff for FY 2011-12 – H1 ..........................................4-49
Table 39: Revenue from Existing Tariff for FY 2011-12 – H2 ..........................................4-49
Table 40: Revenue from Existing Tariff for FY 2011-12 – (H1 + H2)................................4-50
Table 41: Revised ARR for FY 2011-12 ............................................................................4-51
Table 42: Revenue Gap / (Surplus) for FY 2011-12 .........................................................4-51
Table 43: Calculation of Number of Consumers - FY 2012-13 ........................................5-52
Table 44: Connected Load - FY 2012-13 ..........................................................................5-53
Table 45: Average Load Factor - FY 2012-13 ..................................................................5-54
Table 46: Energy Sales - FY 2012-13 ...............................................................................5-55
Table 47: Energy Balance - FY 2012-13 ...........................................................................5-56
Table 48: RPO for JUSCO .................................................................................................5-58
Table 49: Power Purchase from Renewable Sources - FY 2012-13 .................................5-58
Table 50: Power Purchase Cost - FY 2012-13 ..................................................................5-59
Table 51: Employee Expenses - FY 2012-13 ....................................................................5-61
Table 52: A & G Expenses - FY 2012-13 ...........................................................................5-62
Table 53: Summary O & M Expenses - FY 2012-13 .........................................................5-62
Table 54: Capital Expenditure and Capitalization for FY 2012-13 ..................................5-64
Table 55: CWIP, GFA & Depreciation - FY 2012-13 .........................................................5-65
Table 56: Depreciation for FY 2012-13 ...........................................................................5-66
Table 57: Interest & Finance Charges for FY 2012-13 .....................................................5-67
Table 58: Return on Equity - FY 2011-12 .........................................................................5-68
Table 59: Revenue from Sale of Power at Existing Tariff - FY 2012-13 ...........................5-69
Table 60: Summary of ARR - FY 2012-13 ........................................................................5-70
Table 61: Revenue Gap / (Surplus) - FY 2012-13 .............................................................5-70
Table 62: Tariff for Different Domestic Categories .........................................................6-72
Table 63: Tariff for NDS Category ...................................................................................6-73
Table 64: Tariff for LTIS Category....................................................................................6-74
Table 65: Tariff for IAS Cagtegory ...................................................................................6-76
Table 66: Tariff for HTS Category ....................................................................................6-77
Table 67: Tariff for HTSS Category ..................................................................................6-79
Table 68: Tariff for Street Light Service ...........................................................................6-81
Table 69: Tariff for Rural Electric Co-operative/SHG ......................................................6-82
Table 70: Tariff for Military Engineering Service ............................................................6-82
Table 71: Tariff Schedule of Urban Micro Franchisee .....................................................6-83
VII
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
LIST OF ANNEXURES
Annexure A: Letter from TSL to Commission for Fuel Surcharge Approval .....................7-90
Annexure B : Entry Tax Gazetted Notification ................................................................7-91
Annexure C: Agreement with DVC for Bank Charges on Letter of Credit .......................7-92
Annexure D: Details of Addition of Expected Consumers in FY 2011-12.........................7-93
Annexure E: Power Purchase Bills for FY 2010-11 and FY 2011-12 H1 ...........................7-95
Annexure F : Debit/Credit Notes Raised by Tata Steel and DVC .....................................7-96
Annexure G : Annual Audited Accounts for FY 2011-12 ..................................................7-97
VIII
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
List of Abbreviations
Abbreviation Description
A&G Administration and General
APR Annual Performance Review
ARR Annual Revenue Requirement
AS Accounting Standard
BRPL BSES Rajdhani Power Limited
BYPL BSES Yamuna Power Limited
CAGR Compounded Average Growth Rate
CAPEX Capital Expenditure
CERC Central Electricity Regulatory Commission
CESC Calcutta Electric Supply Company
CGRF Consumer Grievance Redressal Forum
Ckt Km Circuit Kilo Meter
CPI Consumer Price Index
Crs Crores
CTU Central Transmission Utility
CWIP Capital Works In Progress
DF Distribution Franchisee
DPS Delayed Payment Surcharge
DS Domestic Service
DS HT Domestic Service High Tension
DSM Demand Side Management
DVC Damodar Valley Corporation
EA 2003 The Electricity Act 2003
F&A Finance & Accounts
FAS Financial Accounting System
FY Financial Year
GFA Gross Fixed Assets
HP Horse Power
HR Human Resources
HT High Tension
HTS High Tension Service
HTSS High Tension Special Service
IAS Irrigation & Agriculture Service
IDC Interest During Construction
ISU Industry Service - Utilities
IT Income Tax
IT Information Technology
JSERC Jharkhand State Electricity Regulatory Commission
IX
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
List of Abbreviations
Abbreviation Description
JTS Jamshedpur Town Services
JUSCO Jamshedpur Utilities and Service Company Limited
KV Kilo Volt
KVA Kilo Volt Ampere
KW Kilo Watt
kWh Kilo Watt Hours
LF Load Factor
LT Low Tension
LTIS Low Tension Industrial and Medium Power
MD Maximum Demand
MERC Maharashtra Electricity Regulatory Commission
MU Million Units
MVA Mega Volt Ampere
MW Megawatt
MYT Multiyear Tariff
NPCL Noida Power Corporation Limited
NDPL North Delhi Power Limited
NDS Non-Domestic Service
O&M Operation and Maintenance
PF Power Factor
PLR Prime Lending Rate
PPA Power Purchase Agreement
PSD Power Services Division
R&M Repairs and Maintenance
RoE Return on Equity
Rs. Rupees
SAP System, Application and Production
SBI State Bank of India
SERC State Electricity Regulatory Commission
SLM Straight Line Method
STU State Transmission Utility
TOD Time Of the Day
TPM Total Productivity Maintenance
TSL Tata Steel Limited
UPERC Uttar Pradesh Electricity Regulatory Commission
WPI Wholesale Price Index
w.e.f with effect from
YoY Year-on-Year
CHAPTER 1: Introduction Nov 2011 Page 1-1
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 1. Introduction
1.1 Background
1.1.1 Jamshedpur Utilities and Services Company Limited (JUSCO) is a Company
incorporated on 25th
August, 2003 under the provisions of the Companies Act,
1956. JUSCO is having its registered office at Sakchi Boulevard Road, Northern
Town, Bistupur, Jamshedpur – 831001. JUSCO is a wholly owned subsidiary of
Tata Steel Limited and became operational w.e.f 1st April 2004 with the
Transfer of Town related Services and Power Business Divisions.
1.1.2 JUSCO was incorporated primarily to cater the infrastructure and utility
services to the city of Jamshedpur. The Company's services encompass Water
and Waste Water Management, Power Services, Public Health & Horticulture
Services, and Planning Engineering & Construction. JUSCO conforms to the
standards of ISO-140001 (Environmental Management System), 18001 (OHSAS)
and ISO-9001 (Quality Management System). Power Service Division of JUSCO
is engaged in distribution of electricity for the city of Jamshedpur – as a
Franchisee of Tata Steel Limited (Licensee of Jamshedpur) as well as for the
revenue district of Saraikela – Kharasawan, in the capacity of Power
Distribution Licensee. JUSCO is also a recipient of TPM excellence award given
by JIPM of Japan.
1.1.3 In line with the provisions of (JSERC) (Terms and Conditions for Distribution
Tariff) Regulation, 2004 issued by the Hon’ble Commission, the licensee has to
file with the Commission, a tariff with statements containing the expected
revenue from the tariff charges including miscellaneous charges and other
charges, if any, for the ensuing financial year. The statement should also
include the current approved tariff and charges including the miscellaneous
charges along with details and explanations of assumptions made.
1.1.4 Further the Commission in November 2010 has issued JSERC (Terms and
Conditions for Determination of Distribution Tariff) Regulations, 2010
(hereinafter referred as JSERC Tariff Regulations 2010) which is applicable for
Transition period from 1st April 2011 to 31st March 2013. The elements of ARR
such as Distribution Loss, Return of Equity, Interest on loans etc for the
transition period i.e. FY 2011-12 are to be treated / based on JSERC Tariff
Regulations 2010.
CHAPTER 1: Introduction Nov 2011 Page 1-2
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
1.1.5 The determination of ARR has been based on the provisions of the following
Acts and Policies of the Government of India and principles outlined in the
relevant regulations notified by the Jharkhand State Electricity Regulatory
Commission:
� Provisions of Electricity Act 2003;
� Provisions of the National Electricity Policy;
� Provisions of the National Tariff Policy;
� Principles laid down in the JSERC (Terms and Conditions for Determining
Distribution Tariff), Regulations, 2004;
� Principles laid down in the JSERC (Terms and Conditions for Determination of
Distribution Tariff) Regulations, 2010 for transition period from April 2011 to
March 2013.
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-3
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 2. Overall approach for present filing
The Hon’ble Commission has notified the regulations relating to Terms and Conditions of
Tariff Regulations, 2004 for the distribution business in September 2004 which are
applicable till FY 2010-11. Further the Commission in November 2010 has notified JSERC
Tariff Regulations 2010 which is also applicable for transition period from 1st
April 2011
to 31st
March 2013 for elements of ARR such as Distribution Loss, RoE and Interest rate
etc. In line with the same, JUSCO is filing its ARR and Tariff Petition for consideration of
the Hon’ble Commission in the formats laid down for providing information relating to
past, current and future performance. The key aspects of the approach to the filing are
discussed below:
2.1 Regulations on Terms and Conditions of Tariff:
2.1.1 The Hon’ble Commission has issued a regulation JSERC (Terms and Conditions
for Determining Distribution Tariff), Regulations, 2004, notified as on 20th
September 2004 and also as per amendment issued by Jharkhand State
Gazette Notification No.- 520 Dated - 23/09/2005, it laid down the principles to
determine the tariff to be charged to the consumers. The regulation issues
stated that:
“31.2* Application for determining the ARR (Tariff):
(i) Unless explicitly mentioned in the Tariff Order, every year, by 1st of November,
every Distribution Licensee shall file with the Commission, a tariff application with
statements containing the expected revenue from the tariff charges including
miscellaneous charges and other charges, if any, for the ensuing financial year.
The statement should also include the current approved tariff and charges
including the miscellaneous charges along with details and explanations of
assumptions made.
Provided that non-compliance of this provision shall be treated as contravention
of Regulation.
(ii) The distribution licensee should file the ARR in the format given in the
annexure.
2.1.2 The Hon’ble Commission has issued JSERC Tariff Regulations 2010 which are
notified on 1st November 2010. The Hon’ble Commission has laid down the
principles of ARR and MYT filing for the transition as well as control period.
Further the timelines specified for filing the ARR & Tariff Petition for the 1st
year under transition period i.e. FY 2011-12 in regulation 4.3, section A12 is 1st
November.
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-4
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
2.1.3 As per the above Regulation, Distribution Licensee needs to file a tariff
application with the Hon’ble Commission by 1st of November of every year.
However it is submitted that due to pending signed audited accounts, actual
data / information for FY2011-12 H1 and other uncontrollable factors such as
festive season, the filing of the petition got delayed. The petitioner vide letter
dated 29th October 2011 has intimated and requested the Hon’ble Commission
to allow the petitioner to file the petition by 10th November 2011 and condone
the delay. Accordingly, the Annual Revenue Requirement and Tariff filing of
the Distribution business of JUSCO based on JSERC Tariff Regulations 2010 has
been developed and is enclosed.
2.2 Data/Information for ARR
2.2.1 This petition contains the truing-up of the ARR of FY 2010-11, figures of which
are based upon the certified annual accounts which will be submitted to
Hon’ble Commission in due course of time. The APR of FY 2011-12 is based
upon six months actual data and the estimation for second half of the year. The
ARR for FY 2012-13 has been projected based on the past performance and
expected growth in each element of cost and revenue for the ensuing year.
JUSCO has studied the past trends and other internal and external
developments to estimate the projections for FY 2012-13.
2.3 Allocation of Assets and Costs
2.3.1 For the purpose of the filing, since JUSCO is an integrated service provider for
Jamshedpur, the segregation and allocation of costs is based on information
currently available with JUSCO. The cost data is captured by JUSCO through the
Financial Accounting System maintained on SAP platform and separate cost
centres that have been created in the FAS through which identification of
directly allocable expenditures has been provided for. In case of expenditures
which are of common nature either across JUSCO or across the whole Power
Service Division, apportionment has been done on logical basis keeping in view
the generally accepted accounting norms and principles which are explained at
appropriate places. The Common Cost (Allocation of Cost for Common services)
of JUSCO Utility Services is identified between Employee Cost and A&G Cost
and then apportioned to Saraikela Project of Licensee based on the allocation
ratio provided in the below table along with the type/ nature of expenses
under each of the cost element/ head to ensure a fair allocation to the
Distribution function:
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-5
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 1: Assumptions for Allocation of Assets and Costs
Sr. Elements of ARR Expenses under each head Assumption with Rationale
a HR/ IR Recruitment, Training, Succession plan, Manpower
plan, Talent search, Wage Negotiation, Industrial
Relations Issues, Holiday plan, Retiral, Service rule,
Labour Statutes, Gate Pass , Medical card, discipline
management, performance management, annual
increment, wage revision etc
Allocation based on Number of Employees in
Saraikela Project vis-à-vis JUSCO
b IT Managing entire IT System and softwares, taking
care of new requirement, Managing maintenance of
all computers, laptop, printers etc, managing LAN etc
Allocation based on Number of PCs/laptop in
Saraikela Project vis-à-vis JUSCO
c Legal Managing all legal requirement of power services,
vetting of agreements, monitoring legal compliance,
Vetting of lease papers, Managing Court Cases etc.
Allocated Equally among all 8 segments of Services
within JUSCO and further allocating half of the PSD's
share to Saraikela Project
d GM (JTS) Secretariat Dealing with Government Administration, Dealing
with political issues etc, assisting to have new place
for new construction etc.
Allocation based on Ratio of Turnover of Saraikela
Project vis-à-vis JUSCO
e TPM Activity /
Improvement Initiatives
Organising employees participation in Total Quality
Management, TPM, Innovations, Knowledge
Management, Suggestion schemes, through several
self initiative project, events, other employee
motivational programmes including rewards and
recognition for better performing employee in these
Allocation based on Ratio of Turnover of Saraikela
Project vis-à-vis JUSCO
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-6
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Sr. Elements of ARR Expenses under each head Assumption with Rationale
areas.
f Accounts Managing Payroll, Vendor payment, managing fund,
Dealing with banks, preparation of MIS reports for
management, Audit of the books of a/c from the
statutory auditor, managing debtors & creditors,
dealing with tax authorities on account of sales tax,
CST, Professional tax, entry tax & income tax,
managing statutory compliances, monthly
preparation of cost reports, conducting review
meetings, preparation board notes for Board
Meeting & preparation of Audit Committee Meeting
reports
Allocation based on Ratio of Turnover of Saraikela
Project vis-à-vis JUSCO
g MD Secretariat Setting of Company's Mission, vision, strategy &
values, providing leadership direction, Approvals for
the Annual Business plan, Setting Short Term and
Long Term Goals.
Allocation based on Ratio of Turnover of Saraikela
Project vis-à-vis JUSCO
h Admin Managing Telephones, Fire alarm , Accommodation
& lodging, travel plans etc, dealing with Insurance
companies for insurance of company’s properties etc
Allocated Equally among all 8 segments of Services
within JUSCO and further allocating half of the PSD's
share to Saraikela Project
i Corp Communication Advertisement, dealing with media, updation of
company’s intranet system, organising events etc.
Allocated Equally among all 8 segments of Services
within JUSCO and further allocating half of the PSD's
share to Saraikela Project
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-7
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Sr. Elements of ARR Expenses under each head Assumption with Rationale
j Business Strategy Making Business plan, exploring new opportunity,
Company Secretary jobs,approving the CAPEX
required etc.
Allocated Equally among all 8 segments of Services
within JUSCO and further allocating half of the PSD's
share to Saraikela Project
k Security Providing 24X7 Security to the Offices, managing
patrolling for critical establishments etc
Allocated Equally among all 8 segments of Services
within JUSCO and further allocating half of the PSD's
share to Saraikela Project
l JUSCO Sahayog,
Billing and Collection
Issuing monthly invoices to consumers, collecting
payments, managing ATP machine, Solving
customers grievances relating to billing, managing
24X7 Jusco complaints redressal system, getting
customer satisfaction survey, reporting on
complaints management and analysing the gap etc
Allocation based on Number of consumers of
Saraikela Project vis-à-vis JUSCO
m GM – PSD Office General Management of Power Distribution
Business.
Equal allocation to Saraikela & Jamshedpur License
area
n Procurement Vendor registration, collecting Purchasing
Requisitions from Departments, asking quotations
from vendors, analysing the rates and awarding
order, meeting the inventories requirements of the
depts, dealing with vendors for procurement of
goods & services in case of emergency, vendor
development, etc
Allocation based on value of procurement of
Saraikela Project vis-à-vis JUSCO
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-8
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
2.4 Basis & Assumptions of Present Petition
2.4.1 As mentioned earlier, the present petition has been filed based on JSERC Tariff Regulations 2004 (to the extent applicable for FY 2010-
11 truing up) and JSERC Tariff Regulations 2010 for FY 2011-12 and FY 2012-13. The various assumptions/ basis/ rationale used for
projection of each of the element of APR & ARR are discusses as under:
Table 2: Assumptions with Rationale for APR FY2011-12 & ARR FY2012-13
Sr. Elements of ARR Assumption in FY 2011-12 Assumption in FY 2012-13
1 Distribution Loss In accordance with actual distribution loss data for first half of FY
12 and expected loss during second half;
In accordance with the JSERC (Terms and Conditions for
Distribution Tariff) Regulations, 2010;
2 Power Purchase Non-Renewable: As per existing and expected new Power
Purchase Agreements and demand in the licensed area;
Renewable: Solar @0.25% and Non-Solar @1.75%
Non-Renewable: As per existing and expected new Power
Purchase Agreements and demand in the licensed area;
Renewable: Solar @0.50% and Non-Solar @2.50%;
3 O&M Cost Employee Expenses: In accordance with actual employee
expenses for first half of FY 12 and expected expenses during
second half with an escalation index (Inflation);
A&G: In accordance with actual A&G expenses for first half of FY
12 and expected expenses during second half with an escalation
index (Inflation);
R&M Expenses: In accordance with the methodology adopted by
the Commission in Tariff Order 2011-12, overall R&M expenses
considered as percentage of GFA;
Employee Expenses: The figure for previous year has been
escalated with an escalation index (inflation);
A&G: The figure for previous year has been escalated with an
escalation index (inflation);
R&M Expenses: In accordance with the methodology adopted by
the Commission in Tariff Order 2011-12, overall R&M expenses
considered as percentage of GFA;
4 Capital Expenditure As per capital expenditure plan and approval by
Commission in previous petition with certain updations on
actual basis;
As per capital expenditure planned by the petitioner and
carried forward schemes of previous year;.
5 Capitalisation As per actual for first half of FY 12 and planned In accordance with the projected expenditure on existing
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-9
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Sr. Elements of ARR Assumption in FY 2011-12 Assumption in FY 2012-13
capitalisation for second half of FY 12. and new schemes.
6 Debt-Equity Ratio In the ratio of 70:30 as specified by the Hon’ble Commission
JSERC (Terms and Conditions for Distribution Tariff) Regulations,
2010;
In the ratio of 70:30 as specified by the Hon’ble Commission
JSERC (Terms and Conditions for Distribution Tariff) Regulations,
2010;
7 Depreciation As per JSERC (Terms and Conditions for Distribution Tariff)
Regulations 2010.
As per JSERC (Terms and Conditions for Distribution Tariff)
Regulations 2010.
8 Interest on Loans As specified in JSERC (Terms and Conditions for Distribution
Tariff) Regulations, 2010 & as approved by Hon’ble Commission
in Tariff order
As specified in JSERC (Terms and Conditions for Distribution
Tariff) Regulations, 2010 i.e. Interest rate to be taken as SBI PLR
as on 1st
April of the FY
9 Interest on Security
Deposit
As per specified by the Commission in ‘Jharkhand Electricity
Supply Code Regulations, 2005’.
As per specified by the Commission in ‘Jharkhand Electricity
Supply Code Regulations, 2005’.
10 Return on Equity As per JSERC (Terms and Conditions for Distribution Tariff)
Regulations, 2010 i.e. 15.5% (post tax)
As per JSERC (Terms and Conditions for Distribution Tariff)
Regulations, 2010 i.e. 15.5% (post tax)
12 Non Tariff Income As per JSERC (Terms and Conditions for Distribution Tariff)
Regulations, 2010, incidental to electricity business.
As per JSERC (Terms and Conditions for Distribution Tariff)
Regulations, 2010, incidental to electricity business.
13 Revenue Projections As per tariffs approved by Commission in FY 2011-12 T.O. In accordance with projected revenue gap for FY 13.
CHAPTER 2: Overall Approach for Tariff Filing Nov 2011 Page 2-10
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
2.4.2 The Hon’ble Commission has issued (Renewable Purchase Obligation and its
Compliance), Regulations 2010 which is applicable till March 2013. The
minimum Renewable Purchase Obligation (RPO) to be met is provided in the
regulations.
2.4.3 The petitioner vide letter no. PBD/553/59/10 dated 3rd November 2010 had
requested Hon’ble Commission to exempt from RPO for FY 2010-11 and defer
the applicability by 1 year and accordingly make the minimum RPO applicable
for FY 2011-12 as 2%. The Commission vide letter no JSERC/12/540 dated 22nd
November 2010 had granted the same. Accordingly, the Hon’ble Commission in
the tariff order clause 7.33 has approved quantum for Solar at 0.25% and for
Non-Solar at 1.75% for FY 2011-12. The RPO for FY 2012-13 has been taken at
0.50% for Solar and 2.50% for Non-Solar.
2.4.4 DSM Regulations – The Hon’ble Commission has issued DSM Regulations 2010
aiming at distribution licensees for energy conservation. The petitioner is
taking appropriate measures for the compliance of the same.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-11
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 3. Truing up for FY 2010-11
3.1 Background
3.1.1 JUSCO in its previous Tariff Petition had filed the provisional figures of the ARR
for FY 2010-11. The certified annual accounts of the licensee business are now
available and accordingly, the licensee wants to submit for the true up of FY
2010-11 before Hon’ble Commission. Therefore, in this chapter JUSCO
summarises each of the component of true-up for FY 2010-11 and requests the
Hon’ble Commission to true-up the ARR for FY 2010-11 and the resultant gap/
surplus for the FY 2010-11 accordingly.
3.1.2 In each of the table shown in this section, a comparison of the figures being
projected by JUSCO in its previous petition, figures approved by the Hon’ble
Commission and figures based on certified accounts have been shown.
3.2 Energy Balance
3.2.1 The Energy Balance for FY 2010-11 has been reflected in the table below. As
evident from the table, the figures of energy sales units, distribution loss and
power purchase units projected in the previous petition, approved by the
Hon’ble Commission as well as per the certified annual accounts are identical.
However, for the sake of presenting structured information with respect to the
Truing-Up of FY 2010-11 by the Hon’ble Commission, JUSCO has resubmitted
the same.
Table 3: Energy Balance for FY 2010-11
Projected Approved Audited
Energy Sales
Total Energy Sales 209.16 212.03 212.03
Overall Distribution Losses % 5.00% 1.65% 1.65%
Overall Distribution Losses 11.01 3.56 3.55
Total Energy Requirement 220.17 215.59 215.59
Power Purchase
Open Access/Others/Traders 17.15 6.27 6.27
DVC 4.97 3.39 3.39
- From Tata Steel Ltd (A)
132 kV 157.09 171.40 171.40
33 kV 38.87 33.14 33.14
6.6 kV 2.09 1.39 1.39
Total Power Purchase 220.17 215.59 215.59
Particulars 2010-11 (Million Units)
ENERGY REQUIREMENT
ENERGY Availability (MU)
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-12
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.2.2 It is requested to the Hon’ble Commission to kindly approve the energy balance
for FY 2010-11 as per actual audited accounts.
3.3 Power Purchase Cost
3.3.1 JUSCO had started its initial operation by procuring power from the only
available source i.e. Tata Steel Limited due to the proximity of its licensed area
to Jamshedpur – the licensed area of Tata Steel Limited. Tata Steel Limited has
been supplying power to JUSCO licensed area on availability basis. For FY 2010-
11, JUSCO had sourced its major portion of power requirement from Tata Steel
Limited. A small quantum of power has been sourced from DVC and through
open access for FY 2010-11.
3.3.2 The Hon’ble Commission in its 2011-12 tariff order had determined the average
power purchase rate of JUSCO as 2.95/ kWh from all three sources i.e. Tata
Steel Limited, DVC and Open Access for FY 2010-11. The average power
purchase rate of JUSCO from all sources as per audited accounts has arrived at
2.95 /kWh. The petitioner requests the Hon’ble Commission to approve the
same for FY 2010-11.
3.3.3 The power purchase cost is net of the credit/debit amount note raised by Tata
Steel and DVC received in FY2011-12, for supply of power as per Tariff Order
dated 26th August 2010. JUSCO has computed its power purchase cost for FY
2010-11 as shown in the table below:
Table 4: Power Purchase Cost FY 2010-11
Rs. in Lacs
Projected Approved Audited
Open Access/Others/Traders 815 245 244
DVC 200 119 119
Tata Steel Limited
132 KV 4,807 4,994 4,988
33 KV 1,189 966 964
6.6 KV 64 40 40
Total 7,076 6,364 6,356
Units Purchased (Million Units) 220.17 215.59 215.59
Cost (per kWh) 3.21 2.95 2.95
Particulars 2010-11 (Rs. in Lacs)
3.3.4 It is requested to the Hon’ble Commission to approve the Power Purchase Cost
for the FY 2010-11 at 6,356 Lacs.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-13
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.4 Operation and Maintenance Expenses
The Operation and Maintenance (O&M) Expenses includes Employee Cost, R&M
Expenses and A&G Expenses. The O&M Expenses of JUSCO comprises of two parts:
3.4.1 Direct Costs - These costs are incurred directly in the Jusco’s licensed operation
and are taken from the cost centers in which primarily following charges are
booked.
i. Repair & Maintenance expenditures for distribution network which includes
distribution lines, power & distribution transformers, substation equipments,
civil maintenance, spares, consumables, service contracts, Complaint
management etc.
ii. Wages and salaries for officers and staffs who are directly engaged in
JUSCO’s distribution business in Seraikela-Kharasawan.
iii. A & G expenses which are directly incurred in managing the distribution
business in Seraikela-Kharasawan operations. These includes regulatory and
legal charges, Consultancy Charges, Travel expenses, printing & stationery,
press advertisement, telephone and mobile expenses, insurance premium,
training, hired vehicle expenses, rent rates & taxes etc.
3.4.2 Costs incurred by Common Services of JUSCO for Seraikela-Kharasawan
power distribution business - These costs are categorised as common costs
and include the cost of various common services as given in Table-1. It is
pertinent to note that since these services are being shared by other business
of JUSCO also, only a part of the total cost commensurate to services being
offered is charged to Seraikela-Kharasawan business as per the basis given in
Table 1.
JUSCO would like to submit to the Hon’ble Commission that all the functions
mentioned in the Table 1 are essential to run the power distribution business.
However since these relates to common services it has been organised as
centralised departments providing services to all businesses of JUSCO. Setting up
separate set-up including manpower and offices for these functions would have
resulted in significantly higher cost to power distribution business.
JSERC (Distribution License Conditions) regulations, 2005 also provides for
reasonable allocation of Joint and common costs between licensed business and
other businesses of licensee.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-14
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
“16.3 The Distribution Licensee shall in respect of the licensed business and other
business:
(a) Keep such Allocation Statement as would be required, so that the
revenues, costs, assets, liabilities, reserves and provisions for, reasonably
attributable to the licensed business are separately identifiable in the
books of the distribution licensee.
(b) Adopt a fair and transparent cost allocation mechanism for the
reasonable allocation of Joint and common costs between the licensed
business and the other business.
JUSCO would like to submit that the cost for common services of JUSCO for
Seraikela-Kharasawan distribution business has been taken in line with the above
provisions of the regulations.
3.4.3 The summary of the O&M Expenses for FY 2010-11 has been depicted in table
below.
Table 5: Operation and Maintenance Expenses for FY 2010-11
Projected Approved Audited
O&M Expenses - Direct
Employee Cost 243 228 231
R&M Expenses 121 126 126
A&G Expenses 192 208 205
Total (A) 556 562 563
O&M Expenses - Common Cost of JUSCO
Employee Cost 112 131 131
R&M Expenses - - -
A&G Expenses 93 109 142
Total (B) 205 239 273
Less: Expenses Capitalised
Employee Cost - 11 -
R&M Expenses - -
A&G Expenses - 10 -
Total (C) - 21 -
Net O&M Expenses (A+B-C) 761 780 835
Particulars 2010-11 (Rs. in Lacs)
3.4.4 It may kindly be noted from the table above that for FY 2010-11, against the
approval of Hon’ble Commission in the tariff order of 780 Lacs, the petitioner
has incurred an amount of 835 Lacs.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-15
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.4.5 The small difference between the audited figures and approved figures of O &
M expenses is due to the fact that the approved figured were based on
estimates and projections made before completion of the year, whereas
audited figures has been taken based on actual expenditure incurred during
the full year.
3.4.6 We would like to submit to the Hon’ble Commission that Jusco’s O & M Cost
are lower than most other private and efficient utilities in the country. The
comparison of per unit O & M cost is depicted in Table No-6 below.
Table 6: Comparison of per Unit O&M Costs
Utility O&M
(Rs/kWh)
Reliance Infra 0.65
BYPL 0.59
CESC 0.49
BRPL 0.48
NDPL 0.47
JUSCO FY11 0.37
Source: T. O FY 2010-11 & FY 2009-10
3.4.7 Accordingly it is requested to Hon’ble Commission to approve the net O&M
expenses of 835 Lacs for FY 2010-11.
3.5 Capital Work in Progress, Gross Fixed Assets and Depreciation
The petitioner wants to submit that in the additional data gaps submission for previous
year tariff filing, it had provided with the Methodology for computation/ consideration
of Interest during Construction. The petitioner submits that since the Hon’ble
Commission has been approving debt-equity on Capitalisation amount and not on
Capital Expenditure amount, the petitioner is entitled for Interest during construction to
be claimed in gross fixed assets.
3.5.1 Interest during Construction (IDC) - It is submitted that Petitioner had in
advertently missed out the claim on account of Interest during construction in
its previous ARR for FY’08, FY’09, FY’10 and FY’11. The same is allowed to be
recovered in accordance with Distribution Tariff Regulations 2004 and
Distribution Tariff Regulations 2010.
As per Clause 6.10 of Distribution Tariff Regulations 2010-
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-16
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
6.10 The capital cost of the project shall include the following:
a) Expenditure incurred or projected to be incurred on original scope of
work, including the interest during construction and financing charges,
any gain or loss on account of foreign exchange risk variation, during
construction, on the loan – (i) being equal to 70% of the funds deployed, in
the event of the actual equity in excess of 30% of the funds deployed, by
treating the excess equity as normative loan, or (ii) being equal to the
actual amount of loan in the event of the actual equity less than 30% of
the funds deployed, - up to the date of commercial operation of the
project, as admitted by the Commission, after prudence check shall form
the basis for determination of Tariff;
Further, as per Clause 18 (note-5) of Distribution Tariff Regulations 2004, Interest
during Construction is allowed to be recovered as part of Capital Cost.
Accordingly the petitioner has calculated the IDC for FY’2008 onwards which is
tabulated below:
Table 7: Interest during Construction Calculation
Particulars 2007-08 2008-09 2009-10 2010-11
Closing CWIP 5,084.24 5,426.56 2,437.00 1,905.69
Amount Capitalised 2,921.35 4,259.84 1,851.00 805.69
Investment not Capitalised During the Year 2,162.89 1,166.72 586.00 1,100.00
Debt (70% of Investment not Capitalised) 1,514.02 816.71 410.20 770.00
Rate of Interest 11.75% 12.75% 12.75% 11.75%
Interest During Construction (Rs.Lacs) 88.95 52.06 26.15 45.24
Total IDC till 2009-10 (Rs.Lacs) 167
3.5.2 In accordance with above table the IDC, which is calculated based on the
approved CWIP figures during the year 2007-08 upto FY 2010-11, works out to
around 212 Lacs on normative basis. This amount is added into Capital WIP
and also considered while transferring assets to GFA base. The Hon’ble
Commission is requested to condone our earlier ommission and allow the IDC
for FY 2007-08, 2008-09, 2009-10 and 2010-11 as part of the capital cost.
3.5.3 The Capital Work in Progress (CWIP), Gross Fixed Assets (GFA) and the
consequent depreciation on GFA for FY 2010-11 are discussed hereunder. The
figures of CWIP and GFA have been derived from the audited accounts and the
IDC amount has been added to the same normative basis.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-17
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 8: CWIP, GFA and Depreciation for FY 2010-11
Projected Approved Audited*
Opening CWIP 586 586 586
Capex during the FY 1,572 1,107 1,107
Total CWIP 2,158 1,693 1,693
Add: IDC till FY 2010-11 - - 212
Total CWIP incl IDC 2,158 1,693 1,906
Less: Transferred to GFA incl IDC 255 593 806
Closing CWIP 1,903 1,100 1,100
Opening GFA 9,073 9,073 9,073
Transferred from CWIP 255 593 806
Closing GFA 9,328 9,666 9,879
Depreciation for the FY 577 579 591
Less: Depreciation on Assets created out of Consumer
Contribution
172 150 150
Net Depreciation 405 429 441
* Includes Normative IDC amount of Rs.212 Lacs till FY2010-11 in GFA additions
Particulars 2010-11 (Rs. in Lacs)
Capital Work in Progress (CWIP)
Gross Fixed Assets (GFA)
Depreciation
3.5.4 In FY 2010-11, the figures of closing CWIP and opening GFA are almost identical
with variation in Depreciation amount as compared to figures approved by
Hon’ble Commission in its previous Tariff Order and as per the certified annual
accounts due to change in final asset classification under various heads of fixed
assets and inclusion of normative IDC amount.
3.5.5 The details of Gross Fixed Assets and allocation of IDC amount for the FY 2010-
11 are provided in the table below:
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-18
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 9: Gross Fixed Assets for FY 2010-11
1 Land Devlopment 13 24 1 25 38
2 Offices & Showroom 537 1 12 13 550
3 Other Buildings 20 - 0 0 20
4 Transformers 775 350 25 375 1,149
5Switchgear including cable
connections2,515 2 55 57 2,572
6 Underground CABLE 2,564 111 59 169 2,734
7 Overhead Lines < 6.6kv (LT) 104 25 3 27 132
8 Overhead Lines > 6.6kv 2,086 35 47 82 2,168
9 Meters 32 2 1 3 35
10 Self propelled vehicles 3 5 0 5 8
11 Air conditionar (Portable) 7 - 0 0 7
12 Office furniture & fittings 10 2 0 3 13
13 Office Equipments 73 1 2 3 76
14 Street Light fittings 0 - 0 0 0
15 Communication System 1 5 0 5 6
16 Data Processing Machine 22 1 0 1 23
17 Software 155 30 4 34 188
18 Other Assets 155 0 3 4 159
Total (Rs.Lacs) 9,073 593 212 806 9,879
Sl.
No.Particulars of Assets
GFA as on
01.04.2010
Additions
during FY
2010-11
IDC
Allocation
GFA as on
31.03.2011
Additions
during FY
2010-11 in IDC
3.5.6 The computation of depreciation is based on Straight Line Method of
computation as prescribed in the Tariff Regulations issued by the Hon’ble
Commission using the rates as provided in Appendix II to the Tariff Regulations.
The depreciation costs proportionate to the extent of fixed assets being funded
through Consumer Contribution, has been deducted from the total
depreciation in order to arrive at the net depreciation allowable to be charged
in the ARR.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-19
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 10: Depreciation Breakup for FY 2010-11
1 Land Devlopment 0.00% - -
2 Offices & Showroom 3.02% 26 16 43
3 Other Buildings 3.02% 0 1 1
4 Transformers 7.81% 106 75 181
5 Switchgear including cable connections 7.84% 295 199 494
6 Underground CABLE 5.27% 155 140 295
7 Overhead Lines < 6.6kv (LT) 7.84% 6 9 15
8 Overhead Lines > 6.6kv 5.27% 161 112 273
9 Meters 12.77% 4 4 8
10 Self propelled vehicles 33.40% 3 2 4
11 Air conditionar (Portable) 33.40% 2 2 4
12 Office furniture & fittings 12.77% 2 1 3
13 Office Equipments 12.77% 10 10 20
14 Street Light fittings 12.77% 0 0 0
15 Communication System 12.77% 0 0 1
16 Data Processing Machine 12.77% 4 3 7
17 Software 9.00% 7 15 22
18 Other Assets - 20 0 20
Total (Rs.Lacs) 800 591 1,391
Sl.No. Particulars of AssetsRate of
Depreciation
Accumulated
Depn as on
01.04.2010
Depreciation
for FY 2010-11
Accumulated
Depn as on
31.03.2011
3.5.7 Accordingly, after deducting depreciation proportionate to the fixed assets
being contributed through consumer contribution i.e. 150 Lacs, the net
depreciation allowable to be charged to the ARR of FY 2010-11 computes to
441 Lacs as against 429 Lacs allowed by the Hon’ble Commission in its
previous Tariff Order.
3.5.8 It is requested to the Hon’ble Commission to approve the net depreciation
amount of 441 Lacs for FY 2010-11.
3.6 Interest and Finance Charges
3.6.1 In the absence of any actual loan being availed by JUSCO, the normative loans
have been computed considering the Capital Investment Norm in the
Regulatory regime in which Debt-Equity Ratio has been kept at 70:30.
Therefore, deemed addition to the normative loans have been taken at 70% of
the total CWIP capitalised during the Financial Year net of Consumer
Contribution being transferred to Capital Reserve (which is proportionate to
the Fixed Assets Capitalised) reduced by the Accumulated Depreciation. The
deemed repayment has been considered equivalent of the net depreciation
cost for the FY.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-20
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.6.2 Interest on Normative Loan - The normative interest is being computed on the
average balance of loan during the financial year. The normative interest rate
has been taken at 11.75% as approved by Commission in previous tariff order.
The interest on normative loan @11.75% on average loan balance of 4,104
Lacs works out to 482 Lacs against 493 Lacs approved by Hon’ble
Commission. The table below provides calculation of Interest on Normative
Loan for FY 2010-11:
Table 11: Interest on Normative Loan – FY 2010-11
Opening Balance 4,084
Add: Deemed Additions 481
Less: Deemed Repayments 441
Closing Balance 4,124
Average Balance 4,104
Interest Rate 11.75%
Interest on Normative Loan (A) 482
FY 2010-11
(Normative)Particulars
3.6.3 Interest on Security Deposit - The provision for Interest on Security Deposit has
been made @ 6.00% per annum. The Security deposit amount as on year end
FY 2010-11 stood at 1,939 Lacs. The corresponding Interest on Security
Deposit amount as per audited accounts & as approved by Hon’ble Commission
is 115 Lacs.
3.6.4 Bank Charges - In the previous tariff order, the Hon’ble Commission had stated
that bank charges @ 75,000 per month for Letter of Credit maintained with
bank shall be approved after JUSCO provides details of Agreement with DVC.
Accordingly, the Power Purchase Agreement with DVC is attached herewith as
Annexure C: Agreement with DVC for Bank Charges on Letter of Credit. The
bank charges compute to 1.59 Lacs for FY 2010-11 and the Hon’ble
Commission is requested to kindly approve the same.
3.6.5 Accordingly, the total Interest and Finance Charges for FY 2010-11 as computed
by JUSCO is tabulated as under:
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-21
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 12: Interest and Finance Charges for FY 2010-11
Projected Approved Audited *
Interest on Normative Loan (A) 465 493 482
Interest on Working Capital/ Bank Finance Charges
(B)
- - 1.59
Interest on Security Deposit (C) 111 115 115
Total Interest & Finance Charges (A+B+C) 576 608 599
Particulars 2010-11 (Rs. in Lacs)
3.6.6 Accordingly, the Hon’ble Commission is requested to approve the total interest
and finance charge amount of 599 Lacs sought in the true-up for FY 2010-11.
3.7 Reasonable Rate of Return
3.7.1 The deemed addition to the normative equity has been taken at 30% of the
total CWIP capitalised during the FY net of Consumer Contribution being
transferred to Capital Reserve (which is proportionate to the Fixed Assets
Capitalised). The normative return on equity is being computed @ 14% on the
average balance of normative equity during the FY 2010-11.
3.7.2 The Normative Equity Capital and Return on Equity projected by JUSCO in its
previous Tariff Petition, approved by the Hon’ble Commission in its Tariff Order
and computed by JUSCO for FY 2010-11 respectively is being summarised
under the table below.
Table 13: Reasonable Rate of Return for FY 2010-11
Rs. Lacs
Projected Approved Audited
Normative Equity Base 1,965 2,149 2,213
Normative Average Equity Base 2,029 2,121 2,153
Rate of Return 14% 14% 14%
Return on Equity 282 297 301
Particulars 2010-11 (Rs. in Lacs)
3.7.3 The difference is on account of normative IDC being considered in gross fixed
assets. Accordingly, the Hon’ble Commission is requested to approve the
Return on Equity of 301 Lacs for FY 2010-11.
3.8 Income Tax
3.8.1 Based on the RoE and Depreciation computation as described in the preceding
paras, the Normative Income Tax has been recomputed in accordance with the
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-22
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
methodology accepted by the Hon’ble Commission. The normative income tax
liability for FY 2010-11 is computed to be 202 Lacs as against determined by
the Hon’ble Commission at 203.20 Lacs in its review petition order. The
detailed computation for FY 2010-11 has been depicted in table below.
Table 14: Income Tax for FY 2010-11
Projected Approved Audited
Return on Equity 282 297 301
Income Tax Rate 33.22% 33.22% 33.22%
Gross RoE 423 445 451
Depreciation as per ARR 405 429 441
Depreciation as per IT Act (741) (755) (767)
Normative Interest on Loan 465 493 482
Taxable Income 553 612 608
Income Tax 184 203 202
Particulars 2010-11 (Rs. in Lacs)
3.8.2 The Hon’ble Commission is requested to approve the total amount of 202
lacs under head Income Tax for FY 2010-11.
3.9 Non Tariff Income
3.9.1 Non-Tariff Income includes Meter Rent, Delayed Payment Surcharge and
Supervision Charges among others. The amount of Non-Tariff Income for FY
2010-11, as per certified annual accounts is 20 Lacs and Hon’ble Commission
is requested to approve the same as detailed in below table:
Table 15: Non-Tariff Income
Meter Rent 7
Delayed Payment Surcharge 4
Supervision Charges 7
Miscellaneous Charges 2
TOTAL 20
ParticularsFY 2010-11
(Audited)
3.10 Revenue from sale of power
3.10.1 The figure of Revenue from Sale of Power as per certified annual accounts is
9,678 Lacs as against to 9,680 Lacs approved by Hon’ble Commission for FY
2010-11.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-23
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.10.2 Accordingly, the Commission is requested to kindly approve the actual revenue
of 9,678 Lacs for FY 2010-11.
3.11 Efficient Power Distribution Network: Sharing of Gains
3.11.1 Petitioner strongly believes and urges the Commission that it is genuinely
eligible for getting benefit arising out of achieving lower transmission and
distribution losses which is among one of the best in the Industry .
3.11.2 JUSCO would like to place that the target level specified for JUSCO has been
among the lowest as compared to other utilities not only in the state i.e. JSEB,
SAIL-Bokaro and TSL but also in the country.
3.11.3 Since its inception JUSCO has been controlling its T&D losses to the best in the
Industry. This has been achieved by deploying various technical and
management tools with tremendous sincere efforts to control the T&D losses.
3.11.4 In the last tariff order of JUSCO, Hon’ble Commission has opined that the lower
loss level achieved by the petitioner is primarily on account of favourable
consumer mix of the petitioner, which comprises mainly of HT consumers in a
small urban cluster. Hon’ble Commission has further opined that the petitioner
needs to conduct loss estimation study in order to correctly estimate the
existing loss levels as well as the impact of network upgradation on the loss
levels in future
3.11.5 JUSCO would like to place before the Hon’ble Commission that power
distribution at High Tension helps in reducing the Technical Losses in the
system. However the T&D losses in the system comprise of both Technical and
Non-Technical Losses. It is extremely important for the utility to control both
Technical as well as Non-Technical losses.
3.11.6 JUSCO would like to place before the Hon’ble Commission that It had been able
to contain the Non-Technical Losses at Zero by putting lot of hard work and
sincere efforts. These include-
• Maintenance of meter at a level of 100% working- The Staff and officers of JUSCO
continuously monitors sample energy meters at intervals which are suitably
adjusted in line with changing requirements and information received from site
on day to day basis. Informations on status of energymeters are received from
Modems installed for RMR, Installation audit by officers, information received
by meter reading group, complaint logged by JUSCO Sahyog. Any non-running
or defective or tampered meter are attended with breakdown priority on
round the clock basis. No meters are kept unattended. JUSCO has been sending
the Quarterly Report on T&D losses to the Hon’ble Commission, where such
cases are also mentioned. JUSCO would like to place to the Hon’ble
Commission that if these actions are not taken on time and with sincere
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-24
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
efforts, the T&D losses of JUSCO would have been much more higher that what
it is today.
• Branchwise and Distribution Transformer (DT) Wise Analysis of Losses- All the
lines at 33kV,11kV and DT for LT consumers are checked for individual losses .
Any abnormal loss levels are further analysed and corrective action is taken on
priority. People have to work beyond duty hours to check the same and
maintain the T&D loss levels at a level which is the best in the country.
• 100% compliance to energy meter sealing- 100% compliance to energymeter
sealing is maintained by the meter group to ensure that no possibility is left for
any pilferage.
• Non- Technical losses also include the theft and pilfer of energy from the system
by several means. JUSCO would like to place before the Hon’ble Commission
that across all the Utility in the country the major part of T&D losses is on
account of theft and pilfer of energy. More theft and pilfer is possible in less
time with HT power supply and therefore the risk of T&D loss going higher due
to theft and pilfer in the system are extremely higher that in case of Low
Tension Consumer. Secondly the mode of theft and pilfer in case of HT
consumer is extremely technology oriented and it becomes difficult for the
utility to detect such theft and pilfer if extra efforts are not put in by the
officers and staff of the licensee to check the same.
For example, a single HT supply with Contract Demand of 1000kVA may pilfer
and steal higher energy than 1000 numbers LT supply consumers in the same
time period. It is therefore extremely important that Licensee with higher
concentration of HT consumers should put in extra efforts and resources to
ensure that not a single energy meter, supply or line is kept/ installed in a
manner where theft and pilfer may take place. JUSCO has been able to achieve
the extremely low loss levels by putting extra efforts to ensure that not a single
point of theft and pilfer remains unattended for even a small time period.
• The design selection of network and other network items such as energy-meters,
CT/PT etc. also have been done after lot of hard work and dedicated efforts to
ensure that the possibility of energy theft is minimal.
• JUSCO would further like to draw the attention of the Hon’ble Commission that
doing 100% correct at 100% of times at 100 % of its transaction is extremely
difficult and requires a lot of efforts.
• The 80 - 20 rule also says that last 20% of work takes 80% of resource (time and
energy). The same is also applicable to T&D losses. Almost Zero non-technical
T&D losses had been achieved by JUSCO due to extra efforts that it had put-in
to do the same.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-25
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.11.7 Since the inception of its operations, JUSCO has been committed to take the
best possible measures to minimise its distribution losses. Its efforts have been
demonstrated in the form of lower level of distribution losses in the previous
years which have been the lowest among all utilities in the country.
3.11.8 JUSCO encourage and motivate its employees to adopt the most sincere
practices while dealing with consumers. It is evident in few cases, though not
recorded officially, that fraudulent practices followed by staff members of
utilities have been one of the major source of energy loss in the country. This
loss is almost zero in JUSCO’s network.
3.11.9 JUSCO shall continue to demonstrate its total commitment towards minimising
its distribution losses to the best possible level which has already achieved its
technical limits.
3.11.10 In view of the above facts and considerations, JUSCO is genuinely
convinced that it should be allowed the sharing of Gains on account of lower
T&D loss and request the Hon’ble Commission to kindly consider the same. This
will keep the motivation of JUSCO to continuously attempt to perform at lower
T&D loss levels.
3.11.11 JUSCO has considered a sharing of 50% of total savings with the
consumers and 50% to be added in its revenue requirement. JUSCO has
calculated an amount of 112.04 Lacs for FY 2011-12 and after sharing of 50%
amount with consumers in overall savings in power purchase cost. The
calculation is as below-
Table 16: Calculation of Sharing of Gains for FY 2010-11
Particulars Units FY 2009-10
(Rs in Lacs)
2010-11 (Rs. in
Lacs)
Energy Sales MUs 126.65 212.03
Loss approved by Commission % 5.00% 5.00%
Energy Requirement at normative Loss MUs 133.32 223.19
Actual Achieved Distribution Loss % 0.96% 1.65%
Actual Energy Purchased MUs 127.88 215.59
Actual Power Purchase Cost Rs. Lacs 3,855 6,356
Actual Average Power Purchase Cost Rs/kWh 3.01 2.95
Energy Saved/ Reduction in Power Purchase MUs 5.44 7.61
Savings in Power Purchase Cost Rs. Lacs 164 224
Shared with Consumers - 50% Rs. Lacs 82 112
Entitlement of JUSCO Rs. Lacs 82 112
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-26
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.11.12 An amount of 82 Lacs had been calculated towards saving in power
purchase cost for FY 2009-10. Here it is important to mention that though
Commission had not considered this amount in previous tariff order, at the
same time the eligibility for claiming this amount was not completely ruled by
the Hon’ble Commission and the Hon’ble Commission had directed the
Petitioner to conduct loss level study in its licensed area to estimate correct
losses.
3.11.13 The Petitioner had conducted an in-house estimation of losses and found that
the loss levels which is at present less than 2% in its licensed area is actual and
is sustainable throughout two years due to adopted best technological and
management practices by Petitioner.
3.11.14 The same methodology of sharing of savings in losses has been followed by
Delhi Electricity Regulatory Commission at the time of privatisation of
distribution segment in Delhi.
3.11.15 Hence the petitioner again requests the Commission to allow this sharing in
savings. This would set examples and standard before other utilities and would
also encourage them to reduce AT&C losses. However, at the same time any
disallowance of such savings would discourage the petitioner to adopt sincere
practices to reduce losses below the levels and standards set by the
Commission.
3.11.16 Following are the losses of some private sector utilities operating in
various parts of the country.
Table 17: Distribution Losses of Other Utilities
Utility Distribution Loss (%)
BYPL 25.89%
BRPL 19.83%
NDPL 18.27%
CESC 14.75%
TPL Ahmedabad 10.25%
Reliance - Mumbai 10.25%
Noida Power 8.00%
Tata Steel 7.75%
Source: T. O FY 2010-11 & FY 2009-10
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-27
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
3.11.17 The above figures show that the petitioner is highly efficient in managing its
distribution losses and hence is entitled to get the above discussed benefits.
Any allowance of such losses would encourage and set examples before other
utilities and authorities to reduce their losses to become efficient.
3.11.18 Hence an amount of 194 Lacs has been proposed towards savings in power
purchase cost due to reduction/ less distribution Losses for FY 2009-10 and FY
2010-11.
3.12 Past Recoveries
3.12.1 The past recoveries and other gaps as approved by the Hon’ble Commission in
the previous tariff order are provided in the table below:
Table 18: Past Recoveries & Other Gaps till FY 2009-10
Particulars 2010-11 (Rs. in Lacs)
Projected Approved Audited *
Revenue Gap/(surplus) for FY 2007-08 50 50 50
Revenue Gap/(surplus) for FY 2008-09 454 454 454
Revenue Gap/(surplus) for FY 2009-10 338 210 210
Carrying Cost on Regulatory Asset 172 14 14
Add: Past recoveries and other gaps 1,013 728 728
* Normative claim as approved in T.O.
3.13 Summarised ARR and Revenue Gap for FY 2010-11
3.13.1 The ARR and Revenue Gap for FY 2010-11 along with previous year filing and
approved figures are presented in the table below.
CHAPTER 3: True up for FY 2010-11 Nov 2011 Page 3-28
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 19: Summarised ARR and Revenue Gap for FY 2010-11
Projected Approved Audited *
Power Purchase Cost 7,076 6,364 6,356
O&M Expenses 761 780 835
Employee Costs 355 348 362
R&M Expenses 121 126 126
A&G Expenses 285 307 347
Depreciation 405 429 441
Interest & Finance Charges 576 608 599
Income Tax 184 203 202
Total Costs 9,001 8,384 8,434
Add: Reasonable Return 282 297 301
Less: Non-Tariff Income 27 20 20
Annual Revenue Requirement 9,256 8,661 8,715
Revenue at Existing Tariff 9,413 9,680 9,678
Revenue Gap/ (Surplus) for the year (157) (1,019) (963)
Add: Past recoveries and other gaps 1,013 728 728
Total Revenue Gap/ (Surplus) including
past periods
857 (292) (235)
Add: Sharing of Gains till FY 2010-11 - - 194
Total Revenue Gap/ (Surplus) including
past periods
857 (292) (41)
Energy Sales in Million Units 209 212 212
Cost of Supply 4.43 4.08 4.11
* Including normative claims
Particulars 2010-11 (Rs. in Lacs)
Costs
3.13.2 As can be seen from the table above the gap/ (surplus) as per Commission is
292 Lacs inclusive of previous years gaps & as per true-up submissions the
same is (235) Lacs. However the final revenue gap / (surplus) for FY 2010-11
computes to (41) Lacs which has reduced due to claim on Sharing of gains for
FY 2009-10 and FY 2010-11 as explained in preceding sections.
3.13.3 Accordingly, the Hon’ble Commission is requested to allow the revenue gap/
(surplus) of (41) Lacs and its treatment in the final computation of revenue
gap / (surplus).
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-29
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 4. Review of Performance in FY 2011-12
4.1 Performance of JUSCO FY 2011-12
4.1.1 In this section JUSCO outlines its performance for FY 2011-12 based on
provisional estimations and figures available in its records and books of
accounts for first six months (H1) of FY 2011-12. These provisional figures have
also been compared with the corresponding approval by the Hon’ble
Commission in its last Tariff Order.
4.2 Number of Consumers FY 2011-12
4.2.1 JUSCO has projected number of consumers for FY 2011-12 based on the actual
increase in number of consumers in first half of the year and also considering
the applications being processed during the balance half of the year.
4.2.2 JUSCO had planned substantial additions in LT consumers by laying distribution
network in those areas which are dominated by domestic and non-domestic
consumers and also rural consumers. It had also started laying network in
those targeted areas. However, against the expectations, consumers did not
turn up to get new connections from the petitioner. Besides, some of the poles
and wires etc., which were brought to be installed in such area, were reported
stolen from these areas. In view of this, there is deviation in number of
consumers projected in this petition for DS II, DS III and NDS II category
consumers. The other details are attached herewith as Annexure D: Details of
Addition of Expected Consumers in FY 2011-12
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-30
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 20: Number of Consumers - FY 2011-12 (H1 + H2)
Sr.
No.
Consumer Category Unit March 2011 At the end
of FY 2011-
12 H1
Expected
Addition in
FY 2011-12
H2
FY 2011-12
A Domestic (DS)
1 DS I Nos - - - -
2 DS II Nos 13 15 20 35
3 DS III Nos 72 79 8 87
4 DSHT Nos 9 11 7 18
B Non-Domestic (NDS)
5 NDS I Nos 0 - -
6 NDS II Nos 99 117 38 155
C Low Tension (LTIS)
7 LTIS Nos 51 56 21 77
D Irrigation & Agriculture Service (IAS)
8 IAS Nos - - -
E High Tension (HTS)
9 HTS 11 kV Nos 105 106 26 132
10 HTS 33 kV Nos 13 13 2 15
E High Tension Special (HTSS)
11 HTSS 11 kV Nos 2 2 - 2
12 HTSS 33 kV Nos 1 1 1 2
Total 365 400 123 523
4.2.3 As can be seen from the above table, the actual number of consumers have
increased for last year and there is further growth expected based on
applications pending for processing. The numbers of consumers projected by
JUSCO at the end of FY 2011-12 are 523 nos.
4.3 Connected Load FY 2011-12
4.3.1 Based on the addition of new consumers in FY 2011-12 in first half and the
pending load for release, the category wise connected load is provided in the
table below for FY 2011-12.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-31
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 21: Connected Load/Contract Demand for FY 2011-12 (H1 + H2)
Sr.
No.
Consumer Category Unit March 2011 At the end
of FY 2011-
12 H1
Expected
Addition in
Load FY
2011-12 H2
At the End of
March 12
A Domestic (DS)
1 DS I kW - - - -
2 DS II kW 44 53 21 74
3 DS III kW 804 851 147 998
4 DSHT kVA 1229 1979 2,877 4,856
B Non-Domestic (NDS) - -
5 NDS I kW - -
6 NDS II kW 1,006 1,166 210 1,413
C Low Tension (LTIS) - -
7 LTIS HP 3,168 3,427 989 4,416
D Irrigation & Agriculture Service (IAS) - -
8 IAS HP - -
E High Tension (HTS) - -
9 HTS 11 kV kVA 27,972 29,908 5,012 34,770
10 HTS 33 kV kVA 43,726 40,666 1,967 42,633
E High Tension Special (HTSS)
11 HTSS 11 kV kVA 1,350 1,600 - 1,600
12 HTSS 33 kV kVA 1,500 2,500 2,000 4,500
4.3.2 The connected load now projected by JUSCO for FY 2011-12 is deviating for
categories DS II, DS III and NDS II due to reason mentioned in 4.2.2. The other
details of connected are provided in Annexure D: Details of Addition of
Expected Consumers in FY 2011-12
4.4 Energy Sales FY 2011-12
4.4.1 JUSCO has projected energy sales based on the actual consumption for the first
half of FY 2011-12 and also considering the applications received and being
processed for balance period of FY 2011-12.
4.4.2 The provisional figure of average load factor has been arrived based on actual of
H1 of FY 2011-12.
4.4.3 The sales are projected by applying category wise load factor of previous year
and the same is in line with the methodology adopted in previous filing and
approval by Commission. The category wise average load factor as considered
in current filing is as below:
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-32
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 22: Average Load Factor FY 2011-12
Provisional
Domestic (DS)
DS I -
DS II 12.20%
DS III 12.09%
DSHT 11.24%
Non-Domestic (NDS)
NDS II 14.21%
Low Tension (LTIS)
LTIS 11.62%
High Tension (HTS)
HTS 11 kV 34.62%
HTS 33 kV 32.61%
High Tension Special (HTSS)
HTSS 11 kV 55.67%
HTSS 33 kV 21.71%
Cosnumer CategoryAverage Load
4.4.4 Based on the assumption of above load factor, the category wise sales
consumption as calculated by JUSCO for FY 2011-12 is presented in the table
below:
Table 23: Energy Sales in FY 2011-12 (H1 + H2)
H1 (Actual) H2 (Provisional) FY 2011-12
A Domestic (DS)
1 DS I - - - -
2 DS II 56,493 36,005 43,108 79,113
3 DS III 768,490 506,965 550,374 1,057,338
4 DSHT 3,064,823 1,755,240 3,029,018 4,784,258
B Non-Domestic (NDS) - - - -
5 NDS I - - - -
6 NDS II 1,205,551 861,518 898,500 1,760,018
C Low Tension (LTIS) - - - -
7 LTIS 3,684,129 2,171,579 2,326,656 4,498,235
D Irrigation & Agriculture Service (IAS) - - - -
8 IAS - - - -
E High Tension (HTS) - - - -
0 87,174,823 51,306,265 54,210,159 105,516,425
9 HTS 11 kV 104,486,580 60,596,424 61,287,204 121,883,628
10 HTS 33 kV - - - -
E High Tension Special (HTSS) 5,644,180 3,905,220 3,902,547 7,807,767
11 HTSS 11 kV 5,948,125 3,570,270 4,994,957 8,565,227
12 HTSS 33 kV - - - -
Total Units 212,033,193 124,709,486 131,242,523 255,952,009
Tota MU's 212 125 131 256
FY 2011-12Sr. No. Consumer Category FY 2010-11
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-33
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
4.4.5 Similarly the table below shows comparison of category-wise energy sales figure
for FY 2011-12 as approved by the Hon’ble Commission in its preceding Tariff
Petition, and the revised sales projection for FY 2011-12.
Table 24: Energy Sales in FY 2011-12 (Approved & Revised Projections)
Cosnumer Category Approved Provisional
Domestic (DS)
DS I
DS II 0.98 0.08
DS III 3.92 1.06
DSHT 3.69 4.78
Non-Domestic (NDS)
NDS I - -
NDS II 2.46 1.76
Low Tension (LTIS)
LTIS 3.97 4.50
Irrigation & Agriculture Service (IAS)
IAS - -
High Tension (HTS)
HTS 11 kV 90.11 105.52
HTS 33 kV 105.80 121.88
High Tension Special (HTSS)
HTSS 11 kV 7.09 7.81
HTSS 33 kV 5.80 8.57
Total (Thousand Units) 223,820 255,952
Total MUs 223.82 255.95
Sales 2011-12 (Million Units)
4.4.6 The increase in energy sales for HTS 11 kV and HTS 33 kV is mainly attributable
to the growth in industry has been better than anticipated. The growth in the
HT Industrial category has been more encouraging than projected earlier
therefore energy sale in this category has surpassed the projections in the
preceding tariff petition and approval figures of Hon’ble Commission.
4.4.7 It is also submitted that the actual sales for first half of FY 2011-12 has been 125
MUs which also an indication for consumption growth in license area.
4.4.8 Accordingly, the petitioner requests the Commission to approve the Sales of
255.95 MUs for FY 2011-12 as per revised projections.
4.5 Energy Balance
4.5.1 The major Energy Requirement of JUSCO is presently met by supply of power
from Tata Steel Ltd at two different voltage levels namely at 132 kV at Jojobera
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-34
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
and 6.6 kV at S-11 source at Jamshedpur and for DVC at 33 kV level. The table
below depicts the energy balance of JUSCO for FY 2011-12 based on the revised
projections of Energy Sales, Distribution Loss % and Source-wise power
purchase approved by the Hon’ble Commission and provisional figures being
recorded now by JUSCO.
Table 25: Energy Balance for FY 2011-12
Approved Provisional
Total Energy Sales 223.82 255.95
Overall Distribution Losses % 5.00% 2.16%
Overall Distribution Losses 11.78 5.64
Total Energy Requirement 235.60 261.59
- From Tata Steel Ltd (A)
132 kV 157.09 190.12
33 kV 38.87 -
6.6 kV 2.09 1.17
- RPO Purchases (B) 5.23
Solar 0.59 0.65
Non-Solar 4.12 4.58
- From DVC at 33 kV (C) 18.43 65.07
- From Others/Traders (D) 14.40 -
Total Energy Availability (A+B) 235.59 261.59
ENERGY Availability (MU)
ParticularsFY 2011-12 (MUs)
ENERGY REQUIREMENT
4.5.2 JUSCO had projected its Distribution Loss 5% in its preceding Tariff Petition and
the same was approved by Hon’ble Commission. However due to the efforts
made by the Petitioner in controlling and reducing the T&D losses as discussed
in section 3.11 of this Petition, the loss levels projected by the Petitioner are
only 2.16%. Accordingly, at energy sales of 255.95 million units and
distribution loss levels as mentioned above the total energy requirement of the
system stood at 261.59 MUs, which would be catered through power purchase
from Tata Steel Ltd at different voltage level from the input points and from
DVC at 33 kV.
4.5.3 The entire energy requirement of JUSCO for FY 2011-12 has been sourced from
Tata Steel Limited and DVC/open access route.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-35
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
4.6 Power Purchase Cost
4.6.1 This cost is a function of the energy requirement and price of available power
from the different source for meeting the requirement. The table below
depicts the power purchase cost for FY 2011-12 as approved by the Hon’ble
Commission in its Tariff Order for FY 2011-12 and the provisional figures based
on the books of accounts.
Table 26: Power Purchase Cost for FY 2011-12
MUsCost
(Rs Crs)
Cost
p.u.MUs
Cost
(Rs Crs)
Cost
p.u.
Tata Steel Limited
132 KV 157.09 42.27 2.69 190.12 55.51 2.92
33 KV 38.87 10.46 2.69 - - -
6.6 KV 2.09 0.56 2.68 1.17 0.34 2.92
DVC at 33 kV 18.43 6.50 3.53 65.07 24.68 3.79
Renewable Power
Solar 0.59 0.88 14.98 0.65 0.98 14.98
Non-Solar 4.12 2.06 5.00 4.58 2.29 5.00
Others/Traders 14.40 6.56 4.55 - - -
Total 235.59 69.29 2.94 261.59 83.81 3.20
FY 2011-12 (Provisional)
Particular
FY 2011-12 (Approved)
4.6.2 The Hon’ble Commission has approved the average power purchase cost for
JUSCO at 2.94 per kWh for FY 2011-12. However, presently the average cost
comes about 3.20 per kWh.
4.6.3 Tata Steel Ltd – The petitioner has projected the availability from TSL based on
actual purchase for first months. The power purchase rate considered for Tata
Steel Ltd is 2.92 /kWh which is based on approved cost of 2.69/kWh in
previous tariff order and 0.23 /kWh towards fuel surcharge for which
separate approval has been sought by Tata Steel Ltd vide letter no.
PBD/328/59/11 dated 22nd
October 2011. The letter to Commission is attached
as Annexure A: Letter from TSL to Commission for Fuel Surcharge Approval.
Subsequent to this letter from Tata Steel Ltd (TSL), it was informed to the
petitioner that Hon’ble Commission has directed TSL to file the petition for the
same.
4.6.4 DVC – It is submitted that JUSCO has been procuring power from DVC since
February 2011. It is further submitted that the power purchase cost of the
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-36
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
petitioner has gone upwards due to power purchase from DVC which is
required to meet increase in load growth and resultant energy sales.
4.6.5 It is further submitted by petitioner that in Oct’2011 DVC has given its approval
for further 10MVA power supply to JUSCO .. Accordingly, the power purchase
from DVC is projected for FY 2011-12 considering the additional supply.
4.6.6 The petitioner proposes to purchase above mentioned power from DVC to meet
the power demand in the area and also the power from DVC is based on
regulated tariff. It is submitted to Hon’ble Commission that if the petitioner
had relied on open market sources for short term/ immediate requirements,
the rate for such power purchase would have been more than 5 per unit.
4.6.7 The actual power purchase rate upto September 2011 on weighted average
basis computes to 3.73 /kWh. The power purchase cost from October 2011
has been considered from the latest available bill which is 3.82 /kWh.
Accordingly, the average power purchase rate for FY 2011-12 computes to
3.79 /kWh.
4.6.8 The bills of Tata Steel Ltd and DVC have been attached along with the petition in
Annexure E: Power Purchase Bills for FY 2010-11 and FY 2011-12 H1.
4.6.9 Renewable Power - As per JSERC (Renewable purchase obligation and its
compliance) Regulations, 2010 issued by Hon’ble Commission, the petitioner
has initiated the process of fulfilment of RPO requirements. An advertisement
had been issued in 2 English and 2 Hindi newspapers in this regard on 24th
October 2011; seeking participation from the bidders for providing renewable
energy and submit bids by 31st
October 2011. However there was no
participation in the bid process.
4.6.10 The purchase rates for solar and Non-Solar have been considered same as
approved by the Hon’ble Commission in previous tariff order.
4.6.11 Accordingly, the petitioner requests the Hon’ble Commission to kindly approve
the total power purchase cost of 8,381 Lacs for FY 2011-12.
4.7 Inflation Rate
4.7.1 The inflation rate in India was last reported at 9 percent in August of 2011.
Inflation rate refers to a general rise in prices measured against a standard
level of purchasing power. The most well known measures of Inflation are the
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-37
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
CPI which measures consumer prices, and the GDP deflator, which measures
inflation in the whole of the domestic economy. The Hon’ble Commission in
the previous tariff order for FY 2011-12 had applied the weightage of 55% and
45% for WPI-CPI rates which is applicable for Control period and not for
transition period of FY 2011-12 and FY2012-13.
4.7.2 Further the Tariff Regulations 2004 which are applicable for transition period to
the extent of O&M Expenses, do not specifically mention of any indices/
method for inflationary increase pass through.
4.7.3 The petitioner has computed the inflation rate considering past 18 months data
and applied for Employee and A&G direct costs for FY 2011-12. The data of
inflation which is used for projection purposes is provided in the below table:
Table 27: Inflation Rate
Month Rate
Apr-10 15.00%
May-10 13.75%
Jun-10 14.00%
Jul-10 13.90%
Aug-10 11.50%
Sep-10 9.90%
Oct-10 9.80%
Nov-10 9.70%
Dec-10 8.30%
Jan-11 9.40%
Feb-11 9.30%
Mar-11 8.50%
Apr-11 8.50%
May-11 9.40%
Jun-11 8.70%
Jul-11 8.60%
Aug-11 8.40%
Sep-11 9.00%
Average Inflation Rate 10.31%
Source: http://www.tradingeconomics.com/india/inflation-
cpi
4.8 Employee Cost
4.8.1 The Direct Employee Cost for FY 2011-12 is projected by JUSCO based on actual
expenditure for first six months and estimated expenditure for balance six
months. The total no of employees at the start of FY 2011-12 are 53 and the
number of employees expected at the end of FY 2011-12 are 72.
4.8.2 The Employee Cost for Common services of JUSCO was being apportioned to
the JUSCO’s licensee’s operations based on the principles explained in the
previous section.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-38
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
4.8.3 It is submitted that the direct employee costs for FY 2010-11 is 231.32 Lacs
for 53 number of employees. In line with the Commission’s approval, the
petitioner has considered inflationary increase of 10.31% over FY 2010-11
direct costs and common costs. Further the petitioner has also considered
increase in direct costs for the additions in number of employees expected in
FY 2011-12. The table below provides the details of employee cost for FY 2011-
12 as petitioned, approved and now revised based on half yearly performance.
Table 28: Employee Cost for FY 2011-12
Rs. Lacs
No of Employees 65 72 72
Employee Cost - Direct 344 328 305
Employee Cost - Common 134 134 144
Gross Employee Cost 478 462 449
Less: Employee capitalised - 16 -
Net Employee Cost 478 446 449
Sales (MUs) 221 224 256
Employee Cost/ Unit 0.22 0.20 0.18
ParticularsFY2011-12
Petition
2011-12-H2
Approved
FY 2011-12
Provisional
4.8.4 As can be seen from the above table, the employee cost has been marginally
higher than approved figures for FY 2011-12. Though the direct cost increase is
on lower side than approved figures, the allocation of cost for common services
has been slightly higher. The petitioner wants to submit Hon’ble Commission
that it has been able to manage its increasing business within the limited
resources which is evident from the employee cost per unit.
4.8.5 The majority of the cost is expected tin second half of the year for new
additions and also the inflationary impact. The table below provides the break-
up of employee cost for H1 (actual) and H2 (estimated) for FY 2011-12.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-39
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 29: Breakup of Employee Cost for FY 2011-12 (H1 + H2)
Salary (Basic) 42 67 110
Special Allowance 19 21 40
Wages Other Charges 21 35 57
House Rent Allowance 3 9 12
Conveyance Allowance 4 6 10
Staff Welfare Expenses 1 3 4
Leave Travel Assistance 2 4 6
Leave Salary 7 8 15
Superannuation Fund 6 10 16
Contribution to Provident fund 5 9 14
Gratuity 5 8 12
Other, if any (Employee benefit AS-15) 5 4 9
Employee Costs (Direct) 120 185 305
Common Cost of JUSCO 65 79 144
Gross Employee Cost 189 261 449
Less: Employees expenses capitalised - - -
Net Employee Cost 188 262 449
2011-12-H1
(Provisional)
2011-12-H2
(Estimatedl)
2011-12 -
TotalItem (Costs in Rs. Lacs)
4.8.6 As mentioned earlier, JUSCO has been able to managing its increasing business
within reasonable manpower strength. It is humbly submitted that Hon’ble
Commission is well aware of the available talent in power sector and due to
such limitations of required skill sets, it is very essential to retain such
employees in organisation. It is kindly requested to Hon’ble Commission to
approve the gross employee expenses including indirect expenses for FY 2011-
12 at 449 Lacs as per revised projections.
4.9 Repair and Maintenance Expenses
4.9.1 The Repair & Maintenance Expenses amount as approved by the Hon’ble
Commission in previous tariff order was about 134 lacs. As on 30th
September
2011 the actual expenditure incurred by the petitioner on R&M is about 64
Lacs and projected expenditure for second half of FY 2011-12 is 87.12 Lacs. It
is submitted that the material prices, labour charges and other costs are
increasing at a very higher rate and considering these elements, the petitioner
has revised its estimates for FY 2011-12. Further the petitioner also wants to
submit that In accordance with Jharkhand Act No. 11, 2011, an entry tax shall
be applicable from 15th
July 2011 on certain goods from outside the state to
local area. This will also to some extent increase the prices of equipments,
stores and spares.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-40
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
4.9.2 In the previous order Commission had observed that the expansion in capital
base but also stated that since most of the assets have been laid by the
Petitioner in the last two to three years, they would be covered under warranty
period and much of the repair works, if required, would be carried out free of
cost. However, Petitioner wants to submit that even though many assets were
new, generally guarantee on new assets remains only for one year that too is
only for limited type of repairs. Though, in some cases repair upto one year
may be free but maintenance always constitute costs and not done by the
supplier always free of cost.
4.9.3 Considering the above mentioned factors, the petitioner has assumed 20%
increase in R&M expenses over FY 2010-11 which works to 151.26 Lacs and
as a % of Opening GFA for FY 2011-12 works out to 1.53%. JUSCO requests the
Hon’ble Commission to kindly allow the R&M expenses as per revised
projections for FY 2011-12 at 151.26 Lacs.
4.10 Administration and General Expenses
4.10.1 The petitioner has estimated an amount of 300.87 Lacs towards A&G
expenses considering inflation rate of 10.31% over FY 2010-11 actual amount
except for Surcharge on Electricity duty amount which is taken as per actual till
June 2011. The A&G expenses sought in true-up for FY 2010-11 are 346.84
Lacs and the expenses approved by Hon’ble Commission for FY 2011-12 were
289 Lacs. The table below summarises the actual expenses for FY 2010-11,
approved figures for FY 2011-12 and revised projections for FY 2011-12 of A&G:
Table 30: A & G Expenses for FY 2011-12
Rs. Lacs
A&G Cost - Direct 205 188 203
A&G Cost - Common 142 110 98
Gross A&G Cost 347 298 301
Less: Exp capitalised - 9 -
Net A&G Cost 347 289 301
ParticularsFY2010-11
Actual
2011-12
Approved
FY 2011-12
Provisional
4.10.2 The break-up of Administration & General Expenses projected by JUSCO for FY
2011-12 into H1 and H2 are tabulated below:
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-41
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 31: Break up of A & G Expenses for FY 2011-12 (H1 + H2)
H1 H2 Total
Legal & Regulatory Charges 4 20 24
Consultancy Charges/ Retainer Fees 8 26 34
Travelling Expenses 8 9 17
Printing & Stationary 0 0 0
Donation - 0 0
Advertisement 5 7 12
Office Maintenance 3 3 6
Telephone & Mobile Expenses 2 3 5
Insurance Premium 7 1 8
Pvt Security Guards/ Home Guards 6 7 13
Miscellaneous Expenses 1 2 3
Vehicle Hire Expenses 1 1 2
Rent, Rates & Taxes 3 27 30
Surcharge on Electricity Duty 11 - 11
Software Development - 38 38
Total A&G Costs (Direct) 58 144 203
Common Cost of JUSCO 38 60 98
GROSS A&G COST 97 204 301
Less: A&G Expenses capitalised - - -
NET A&G COST 97 204 301
ParticularFY 2011-12 (Amount in Rs. Lacs)
4.10.3 The expenditure in second half of FY 2011-12 is slightly on higher side
compared to first half mainly due to following expenses to be incurred in later
half:
• Software development expenses;
• The payments for rents/ rates / taxes;
• Legal & Regulatory fees;
• Consultancy Charges.
4.11 Operation & Maintenance Expenses
4.11.1 The Operation & Maintenance Expenses comprising of Employee Cost, Repair &
Maintenance Expenses and Administrative & General Expenses for FY 2011-12
are summarised in the table below:
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-42
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 32: O&M Expenses for FY 2011-12
Rs. Lacs
FY 2010-11 FY 2011-12 FY 2011-12
Actual Approved Provisional
O&M Expenses - Direct
Employee Cost 231 329 305
R&M Expenses 126 134 151
A&G Expenses 205 188 203
Total (A) 563 651 659
Employee Cost 131 134 144
A&G Expenses 142 110 98
Total (B) 273 244 243
Less: Expenses Capitalised
Employee Cost - 17 -
R&M Expenses - - -
A&G Expenses - 9 -
Total (C) - 26 -
Net O&M Expenses (A+B-C) 835 869 901
Particular
O&M Expenses - Common Cost of JUSCO
4.11.2 It is submitted that the increase in O&M expense over last year is primarily due
to increased level of Business.The per unit O&M expense remains almost same
at the level of approximately 37 paisa per unit. The per Unit O&M cost of
JUSCO is among the best in the Industry as depicted in Table 6. Accordingly,
the petitioner requests the Hon’ble Commission to approve O&M Expenses of
901 Lacs for FY 2011-12.
4.12 Capital Work in Progress, GFA and Depreciation
4.12.1 The capital expenditure planned during the year is re-estimated at 1,197
Lacs and the additions to gross fixed assets are projected at 804 Lacs which
are approx 35% of the total CWIP. It is submitted that the revised projections
for FY 2011-12 are lower than the approved figures for FY 2011-12. The details
of the schemes are provided in the tariff filing formats.
4.12.2 The petitioner has not considered any IDC in this financial year and requests
Hon’ble Commission to allow petitioner to claim IDC at the time of truing-up or
as may be directed by Hon’ble Commission. The Capital Work in Progress,
Gross Fixed Assets and Depreciation for the FY 2011-12 approved by the
Hon’ble Commission in its Tariff Order for FY 2011-12 and the provisional
figures based on the books of accounts is depicted in the table below.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-43
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 33: CWIP, GFA and Depreciation for FY 2011-12
Rs. Lacs
Approved Provisional
Opening CWIP 1,100 1,100
Capex during the FY 1,943 1,197
Total CWIP 3,043 2,297
Less: Transferred to GFA 1,449 804
Closing CWIP 1,594 1,493
Opening GFA 9,666 9,879
Transferred from CWIP 1,449 804
Closing GFA 11,115 10,683
Total Depreciation 650 644
Less: Depreciation on Assets created out of
Consumer Contribution175 185
Net Deprecation 475 459
ParticularsFY 2011-12
Gross Fixed Assets (GFA)
Capital Work in Progress (CWIP)
Depreciation
4.12.3 The details of asset wise opening GFA and additions to GFA for FY 2011-12 are
provided in the table below:
Table 34: GFA for FY 2011-12
1 Land Devlopment 38 3 41
2 Offices & Showroom 550 45 595
3 Other Buildings 20 2 21
4 Transformers 1,149 94 1,243
5 Switchgear including cable connections 2,572 209 2,782
6 Underground CABLE 2,734 223 2,956
7 Overhead Lines < 6.6kv (LT) 132 11 142
8 Overhead Lines > 6.6kv 2,168 176 2,345
9 Meters 35 3 38
10 Self propelled vehicles 8 1 9
11 Air conditionar (Portable) 7 1 8
12 Office furniture & fittings 13 1 14
13 Office Equipments 76 6 82
14 Street Light fittings 0 0 0
15 Communication System 6 1 7
16 Data Processing Machine 23 2 25
17 Software 188 15 204
18 Other Assets 159 13 172
Total 9,878 804 10,682
Particulars of AssetsGFA as on
01.04.2011
Additions
during FY
2011-12
Retirement
during FY
2011-12
GFA as on
31.03.2012
Sl.
No.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-44
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
4.12.4 JUSCO submits that the computation of depreciation is based on Straight Line
Method of computation as prescribed in the Tariff Regulations issued by the
Hon’ble Commission using the rates as provided in Appendix II to the Tariff
Regulations. For Assets capitalised during the Financial Year, the depreciation is
being computed proportionately based upon the date of commissioning.
4.12.5 Accordingly, asset-wise total depreciation costs for FY 2011-12 before
deducting depreciation on account of assets created out of consumer
contribution capitalised is computed at 644 Lacs. The working of depreciation
on Fixed Assets is shown in the table below:
Table 35: Net Depreciation for FY 2011-12
1 Land Devlopment 0.00%
2 Offices & Showroom 3.02% 43 17 60
3 Other Buildings 3.02% 1 1 2
4 Transformers 7.81% 181 93 275
5 Switchgear including cable connections 7.84% 494 210 704
6 Underground CABLE 5.27% 295 150 445
7 Overhead Lines < 6.6kv (LT) 7.84% 15 11 26
8 Overhead Lines > 6.6kv 5.27% 273 119 392
9 Meters 12.77% 8 5 13
10 Self propelled vehicles 33.40% 4 3 7
11 Air conditionar (Portable) 33.40% 4 2 6
12 Office furniture & fittings 12.77% 3 2 5
13 Office Equipments 12.77% 20 10 30
14 Street Light fittings 12.77% 0 0 0
15 Communication System 12.77% 1 1 1
16 Data Processing Machine 12.77% 7 3 10
17 Software 9.00% 22 18 40
18 Other Assets - 20 - 20
Total 1,391 644 2,035
Sl.No. Particulars of Assets
Rate of
Deprecia
tion
Accumulated
Depn as on
01.4.2011
Depreciation
for FY 2011-
12 (H1+H2)
Accumulated
Depn as on
31.3.2012
4.12.6 The depreciation on assets created out of consumer contribution computes to
185 Lacs. Accordingly, the petitioner requests the Commission to kindly
approve the net depreciation amount of 459 Lacs for FY 2011-12 to be
claimed in ARR.
4.13 Interest and Finance Charges
4.13.1 Interest on Normative Loan - It is submitted that the entire capital expenditure
incurred by JUSCO has been funded through equity infusion and through
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-45
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
consumer contributions. However, as per the provisions of Regulation 11 of
JSERC (Terms and Conditions for Distribution Tariff) Regulations 2010,
normative loans shall be considered equal to the loan (if any) and amount of
equity in excess of 30% invested in the project. In case of JUSCO, the deemed
addition to the normative loans have been taken at 70% of the total CWIP
capitalised during the Financial Year net of Consumer Contribution being
transferred to Capital Reserve (which is proportionate to the Fixed Assets
Capitalised) reduced by the Accumulated Depreciation. The deemed
repayments of normative loans has been considered equivalent of the net
depreciation cost of the Financial Year. The normative interest rate has been
taken at 13.25%, in accordance with the approval of the Hon’ble Commission
in its previous Tariff Order for computation of normative interest for the year.
The interest on normative loan based on average loan balance works out to
607 Lacs for FY 2011-12.
4.13.2 Interest on Security Deposit - The provision for Interest on Security Deposit for
FY 2011-12 has been made @ 6.00% per annum in line with the regulations and
methodology as approved by Hon’ble Commission in previous tariff orders. The
Interest on Security Deposit works out to 146 Lacs for FY 2011-12 on security
balance of 2,455 Lacs.
4.13.3 Bank Charges - In the previous tariff order, the Hon’ble Commission had stated
that bank charges @ 75,000 per month for Letter of Credit maintained with
bank shall be approved after JUSCO provides details of Agreement with DVC.
The Power Purchase Agreement with DVC is attached herewith as Annexure C:
Agreement with DVC for Bank Charges on Letter of Credit. The bank charges
for FY 2011-12 compute to 9 Lacs and Hon’ble Commission is requested to
approve the same.
4.13.4 The Normative Loan and Interest and Finance Charges approved by the Hon’ble
Commission in its Tariff Order for FY 2011-12 and as per revised figures for FY
2011-12 is shown in the table below.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-46
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 36: Normative Loans & Interest Cost for FY 2011-12
Approved Provisional
Opening Balance 4,124
Add: Deemed Additions 1,367
Less: Deemed Repayments 459
Closing Balance 5,032
Average Balance 4,578
Interest Rate 13.25% 13.25%
Interest on Normative Loan (A) 484 607
Other/Bank Charges(B) - 9
Interest on Security Deposit (C) 122 146
Total Interest and Finance Charges
(A+B+C)606 761
ParticularsFY 2011-12
4.13.5 Accordingly, the Hon’ble Commission is requested to approve the Interest and
Finance Charges of 761 Lacs for FY 2011-12.
4.14 Reasonable Return on Equity
4.14.1 The deemed addition to the normative equity has been taken at 30% of the
total CWIP capitalised during the FY net of Consumer Contribution being
transferred to Capital Reserve (which is proportionate to the Fixed Assets
Capitalised). The normative return on equity is being computed @ 15.5% on
the average balance of normative equity during the FY, as being approved by
the Hon’ble Commission. The methodology of computation of normative equity
capital as well as the Rate of Return for FY 2011-12 has been taken as approved
by the Hon’ble Commission in its previous Tariff Order i.e. RoE % grossed up by
tax rate of 32.45% for FY 2011-12.
4.14.2 The comparison of Normative Equity Capital and Return on Equity as approved
by the Hon’ble Commission in its previous Tariff Order and now provisionally
computed for FY 2011-12 is shown in the table below.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-47
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 37: Normative Equity & Return on Equity for FY 2011-12
Opening Balance 2,213
Add: Deemed Additions 816
Closing Balance 3,029
Average Balance 2,293 2,621
Rate of Return 15.50% 15.50%
Income Tax Rate 32.45% 32.45%
RoE % grossed up with Tax 22.94% 22.94%
Return on Equity (Rs.Lacs) 526 601
ParticularsFY 2011-12
Approved
FY 2011-12
Provisional
4.14.3 Accordingly, the Hon’ble Commission is requested to approve the Return on
Equity of 601.3 Lacs for FY 2011-12.
4.15 Non Tariff Income
4.15.1 JUSCO had projected 27 Lacs as its Non-Tariff Income for FY 2011-12 in its
previous Tariff Petition and the Hon’ble Commission had approved 30 Lacs in
its Tariff Order for FY 2011-12. The non-tariff income provisionally projected
now for FY 2011-12 based on actual of H1 is 25.72 Lacs and the Hon’ble
Commission is requested to approve the same.
4.16 Demand Side Management (DSM) and CGRF Expenses
4.16.1 DSM Initiatives - The various initiatives taken by the petitioner for DSM
activities for FY 2011-12 and FY 2012-13 are as under:
a) Energy Conservation Initiatives: Energy conservation awareness programs
are proposed to be conducted in Seraikela-kharsawan district. This is planned
to be done for all Category of Consumers including Industrial Consumers,
Domestic Consumers and Commercial Consumers.
b) 100% CFL Compliant Consumer Base: A scheme is being devised to ensure
100% CFL compliant consumer base of JUSCO. Under this scheme the
following activities are proposed.
• Survey of use of incandescent lamp in domestic sector (door to door).
• Estimating the total no. of Incandescent lamp in domestic sector.
• Preparing a scheme for replacement of the Incandescent lamp with CFL
and communicating the scheme to the consumers.
• Exchanging Incandescent lamp with CFL lamps at attractive pricing. A
major part of the cost may be funded by JUSCO.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-48
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
• Cost benefit analysis of providing CFL lamps in place of incandescent lamp
reveals that the Payback period even for Licensee is less 2 years for such
investment in addition to other benefits.
c) Study of Power Factor (PF) and Load Factor (LF) of various industrial
consumers of JUSCO.
• Under this JUSCO will study the LF & PF patterns of various Industrial
consumers of JUSCO and will engage its resources to increase the LF & PF
of various industrial consumers. Consumers with lower LF &PF will be
undertaken on priority and necessary guidance would be provided to
them by JUSCO engineers or through expert agencies hired by JUSCO to
undertake this function.
Further analysis of the same will be done in due course and we are hopeful that
sufficient improvement may be witnessed in near future. JUSCO shall communicate the
Hon’ble Commission about these initiatives from time to time.
4.16.2 CGRF Initiatives – The position of CGRF Chairman was lying vacant as the one
nominated for the post did not join the office. The Hon’ble Commission
suggested the name of Mr. V.N Singh who has joined the CGRF on 15th
Oct
2011. The CGRF committee is sending its reports on time to time to the
Hon’ble commission.
4.16.3 The total DSM and CGRF expenses projected for FY 2011-12 is 46 Lacs. It is
submitted to Hon’ble Commission that the expenditure to be incurred for
DSM and CGRF activities may be approved on a provisionally basis and the
petitioner shall provide the details of the same in the subsequent filing under
True up of FY 2011-12.
4.17 Revenue from Existing Tariff for FY 2011-12
4.17.1 The consumer category-wise Revenue from Existing Tariff for first six months of
FY 2011-12 as per provisional figures in the books of accounts is given under
the table below.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-49
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 38: Revenue from Existing Tariff for FY 2011-12 – H1
Sales Average
Tariff
(000 Units)Fixed
Charges
Energy
Charges
Others
(Rebate/
Charges)
Total
Revenue(Rs/kWh)
Domestic (DS)
DS I - - - - - -
DS II 36 2 63 0 66 1.83
DS III 507 23 963 1 988 1.95
DSHT 1,755 504 2,896 1 3,401 1.94
Non-Domestic (NDS) - -
NDS I - - - - -
NDS II 862 739 3,411 2 4,152 4.82
Low Tension (LTIS) - -
LTIS 2,172 1,569 7,601 350 9,520 4.38
High Tension (HTS) - -
HTS 11 kV 51,306 27,392 223,103 (1,272) 249,223 4.86
HTS 33 kV 60,596 39,041 263,594 (9,440) 293,196 4.84
High Tension Special (HTSS) - -
HTSS 11 kV 3,905 3,217 9,763 (214) 12,766 3.27
HTSS 33 kV 3,570 4,757 8,926 (426) 13,257 3.71
Total 124,709 77,244 520,320 (10,996) 586,567 4.70
Cosnumer Category
Revenue from Sale of Power (Rs. in '000')
Table 39: Revenue from Existing Tariff for FY 2011-12 – H2
Sales Average
Tariff
(000 Units)Fixed
Charges
Energy
Charges
Others
(Rebate/
Charges)
Total
Revenue(Rs/kWh)
Domestic (DS)
DS I - - - - -
DS II 43 6 75 0 81 1.88
DS III 550 26 1,046 1 1,073 1.95
DSHT 3,029 1,165 4,998 2 6,165 2.04
Non-Domestic (NDS) - -
NDS I - - - - -
NDS II 899 933 3,549 2 4,484 4.99
Low Tension (LTIS) - - - - -
LTIS 2,327 1,987 8,143 373 10,504 4.51
High Tension (HTS) - - - - -
HTS 11 kV 54,210 30,980 235,814 (1,372) 265,422 4.90
HTS 33 kV 61,287 37,986 266,599 (9,491) 295,095 4.81
High Tension Special (HTSS) - -
HTSS 11 kV 3,903 2,851 9,756 (208) 12,400 3.18
HTSS 33 kV 4,995 8,019 12,487 (636) 19,870 3.98
Total 131,243 83,954 542,468 (11,327) 615,095 4.69
Revenue from Sale of Power (Rs. in Thousand)
Cosnumer Category
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-50
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 40: Revenue from Existing Tariff for FY 2011-12 – (H1 + H2)
Sales Average
Tariff
(000 Units)Fixed
Charges
Energy
Charges
Others
(Rebate/
Charges)
Total
Revenue(Rs/kWh)
Domestic (DS)
DS I - - - - -
DS II 79 8 138 1 147 1.86
DS III 1,057 49 2,009 3 2,061 1.95
DSHT 4,784 1,669 7,894 3 9,566 2.00
Non-Domestic (NDS) - - - - -
NDS I - - - - -
NDS II 1,760 1,671 6,960 4 8,635 4.91
Low Tension (LTIS) - - - - -
LTIS 4,498 3,556 15,744 724 20,024 4.45
High Tension (HTS) - - - - -
HTS 11 kV 105,516 58,372 458,917 (2,644) 514,645 4.88
HTS 33 kV 121,884 77,027 530,194 (18,931) 588,290 4.83
High Tension Special (HTSS) - - - - -
HTSS 11 kV 7,808 6,068 19,519 (421) 25,166 3.22
HTSS 33 kV 8,565 12,776 21,413 (1,062) 33,127 3.87
Total 255,952 161,197 1,062,788 (22,323) 1,201,662 4.69
Cosnumer Category
Revenue from Sale of Power (Rs. in '000')
4.17.2 As can be seen from the above table, the total revenue from existing tariff is
12,017 Lacs and accordingly the Hon’ble Commission is requested to approve
the same for FY 2011-12.
4.18 ARR and Revenue Gap for FY 2011-12
4.18.1 JUSCO now estimates its revised provisional Annual Revenue Requirement for
FY 2011-12 at 11,124 Lacs and revenue from sale of power at 12,017 Lacs.
Accordingly, the net revenue gap / (surplus) for FY 2011-12 works out to
(934) Lacs which is inclusive of revenue gap / (surplus) of (41) Lacs till FY
2010-11 subject to the review of accounts for FY 2010-11 by Hon’ble
Commission and sharing of gains due to low loss levels.
4.18.2 Based on the discussions in the preceding paras of this chapter, the table below
summarizes ARR for FY 2011-12 as projected by JUSCO in previous petition,
ARR approved by the Hon’ble Commission in its Tariff Order for FY 2011-12 and
revised provisional ARR computed for FY 2011-12.
CHAPTER 4: Review of Performance in FY 2011-12 Nov 2011 Page 4-51
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 41: Revised ARR for FY 2011-12
Rs. Lacs
Projected Approved Provisional
Costs
Power Purchase Cost 7,666 6,930 8,381
O&M Expenses 1,050 869 901
Employee Costs 478 446 449
R&M Expenses 233 134 151
A&G Expenses 339 289 301
Depreciation 476 475 459
DSM and CGRF Expenses 46 46 46
Interest & Finance Charges 571 606 761
Income Tax 230 - -
Total Costs 10,038 8,925 10,548
Add: Reasonable Return 347 526 601
Less: Non-Tariff Income 27 30 26
Total Costs 10,358 9,422 11,124
Energy Supplied (MU) 221 224 256
Cost of Supply 4.69 4.21 4.35
FY 2011-12Particulars
4.18.3 The revised revenue gap / (surplus) for FY 2011-12 considering past recoveries
as approved by Hon’ble Commission in previous tariff order and as re-
computed by petitioner in the current petition is as follows:
Table 42: Revenue Gap / (Surplus) for FY 2011-12
Rs. Lacs
ParticularsFY 2011-12
Approved
FY 2011-12
Provisional
Annual Revenue Requirement for FY 2011-12 9,422 11,123.9
Less: Revenue from Sale of Power at Existing Tariff 10,305 12,017
Revenue Gap/(Surplus) for FY 2011-12 (883) (893)
Add: Past Revenue Gap / (Surplus) till FY 2010-11 (292) (41)
Total Revenue Gap/(Surplus) for FY 2011-12 (1,175) (934)
4.18.4 Accordingly, the petitioner requests the Commission to kindly approve the
revenue gap / (surplus) of (934) Lacs inclusive of past recoveries and sharing
of revenue due to efficient system management of the Petitioner.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-52
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 5. ARR Determination for FY 2012-13
5.1 Introduction
5.1.1 In this section JUSCO outlines its projections for the FY 2012-13 in the light of
the performance for FY 2011-12 based on provisional figures available in the
books of JUSCO. Though the figures of FY 2011-12 have already been shown in
detail in the previous chapter, however for the purpose of explaining the basis
of projections for FY 2012-13 in a better way, the same have been reproduced
along with the projected figures of FY 2012-13 at appropriate places.
5.2 Number of Consumer’s and Load Projections
5.2.1 The projections of consumers are based on CAGR for previous three years. In
case of DSHT, the expected number of colonies and relevant consumers have
been taken based on the information on construction of hosuing
colonies/comples in the area and not in accordance with CAGR of previous
three years. Hence the CAGR in case of DSHT has been corrected by a factor
0.5. However, in case of other categories including HTS, the information from
field offices has been considered where consumers are willing to get the new
connections from Petitioner, hence, the growth rate has been assumed
equivalent to CAGR of previous three years. The Petitioner has identified rural
consumers in some of the areas for distributing new connections. The new
rural consumers are expected to be 100.
Table 43: Calculation of Number of Consumers - FY 2012-13
2012-13
Domestic (DS)
DS I - - - - 100
DS II 1 10 13 35 87% 65
DS III 38 60 72 87 20% 105
DSHT 3 7 9 18 60% 23
Non-Domestic (NDS) - - - - -
NDS I - - - - -
NDS II 25 66 99 155 53% 238
Low Tension (LTIS) - - - - -
LTIS 11 33 51 77 53% 118
High Tension (HTS) - - - - -
HTS 11 kV 35 83 105 132 26% 166
HTS 33 kV 5 11 13 15 17% 18
High Tension Special (HTSS) - - - - -
HTSS 11 kV - 1 2 2 41% 3
HTSS 33 kV - 1 1 2 41% 3
Total Consumers 118 272 365 523 838
Consumer Category 2008-09 2009-10 2010-11 2011-12 CAGR*
In case of DSHT the CAGR is corrected by a factor 0.5
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-53
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.2.2 JUSCO expects that approximately 315 number of consumers would be added
up in FY 2012-13, increasing the total number of consumers from 523 in FY
2011-12 to 838 in FY2012-13.
5.2.3 Accordingly, the growth projection in Connected Load / Contract Demand
growth has been depicted in the table below, based on the corresponding
increase in number of consumers. In respect of new applications, the
corresponding load enhancement has been projected based upon the average
load of the respective consumer category. It may be noted that, because of
availability of additional power supply from DVC and other sources, JUSCO will
be in a position to release new connection and therefore has projected fresh
addition to its Domestic, Non Domestic & HT Industrial consumer category. As
discussed earlier JUSCO has been able to procure power of around 10 MVA
from DVC since Feb 2011 onwards and further it has also arranged to get 10
MVA power from December 2011 from DVC.
Table 44: Connected Load - FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
Domestic (DS)
DS I kW - 100
DS II kW 74 108
DS III kW 998 1,170
DSHT kVA 4,856 7,284
Non-Domestic (NDS) - -
NDS I kW - -
NDS II kW 1,413 1,924
Low Tension (LTIS) - -
LTIS HP 4,416 5,907
High Tension (HTS) - -
HTS 11 kV kVA 34,770 41,882
HTS 33 kV kVA 42,633 48,317
High Tension Special (HTSS) - -
HTSS 11 kV kVA 1,600 1,600
HTSS 33 kV kVA 4,500 6,750
Consumer Category Unit
5.2.4 The average projected load factor of FY11-12 has been considered for
calculating the energy sales forecast for FY12-13.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-54
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 45: Average Load Factor - FY 2012-13
FY 2011-12 FY 2012-13
Provisional
Load Factor
applied for
Sales
Projection
Domestic (DS)
DS I - -
DS II 12.20% 12.20%
DS III 12.09% 12.09%
DSHT 11.24% 11.24%
Non-Domestic (NDS) - -
NDS I - -
NDS II 14.21% 14.21%
Low Tension (LTIS) - -
LTIS 11.62% 11.62%
Irrigation & Agriculture Service (IAS) - -
IAS - -
High Tension (HTS) - -
HTS 11 kV 34.62% 34.62%
HTS 33 kV 32.61% 32.61%
High Tension Special (HTSS) - -
HTSS 11 kV 55.67% 55.67%
HTSS 33 kV 21.71% 21.71%
Consumer Category
5.3 Energy Sales Projections
5.3.1 For calculating the forecasted energy sales, the time period for existing
consumers has been considered as 12 months, whereas for the new consumers
the time period of 6 months has only been considered based on fair estimates.
applications under process and new applications has been considered as 12
months and 6 months respectively, based on fair estimates.
5.3.2 The provisional Energy Sales for FY 2011-12 as well as the projected Energy
Sales for FY 2012-13 based on the methodology explained in the previous paras
for each consumer category is shown below.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-55
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 46: Energy Sales - FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
Domestic (DS)
DS I - 120,000
DS II 79,113 114,956
DS III 1,057,338 1,238,789
DSHT 4,784,258 7,171,476
Non-Domestic (NDS)
NDS I - -
NDS II 1,760,018 2,394,256
Low Tension (LTIS)
LTIS 4,498,235 6,013,001
High Tension (HTS)
HTS 11 kV 105,516,425 127,012,335
HTS 33 kV 121,883,628 138,040,231
High Tension Special (HTSS)
HTSS 11 kV 7,807,767 7,802,423
HTSS 33 kV 8,565,227 12,839,046
Total Units 255,952,009 302,746,512
Total in Mus 256 303
(Thousand Units)
Consumer Category
5.3.3 It is evident from the computation of energy sales shown in the table above,
that approx 85% of the energy consumption projected in FY 2012-13 is
expected to be on account of the existing consumers only.
5.4 Energy Balance
5.4.1 The Energy Balance of JUSCO for FY 2012-13 which is based on the provisional
data for Energy Purchase and Energy Sales and the resulting Distribution Loss
during the FY 2012-13 is shown under the table below. The Distribution Loss
level have been projected at 3.50%. which is lower than the loss level target of
5% specified in Regulations 2010. Since the inception of its operations, JUSCO
has been committed to take the best possible measures to minimise its
distribution losses. This has been possible by implementing several initiatives
and best practices from the power distribution industries which are also
discussed in chapter 3. JUSCO shall continue to demonstrate its total
commitment towards minimising its distribution losses to the best possible
level approaching technical limits.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-56
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 47: Energy Balance - FY 2012-13
FY 2011-12 FY 201 2-13
Provisio nal Project ed
Total Energy Sales 256 303
Overall D istribu tion Losses % 2.16% 3 .50%
Overall D istribu tion Losses 6 11
Total Energy Req uirem ent 262 314
- From Tata Steel Ltd (A)
132 kV 190 194
33 kV - -
6.6 kV 1 1
- RPO Purchases (B) 5 9
- From DVC at 33 k V (C) 65 82
- From O thers/Tra ders (D) - 27
Total Energy A vailab ility (A+B+C+D ) 262 314
Particu lars
ENERGY A vailab ility
ENERGY REQUIREMENT
5.4.2 With the increase in network spread, increase in load on the existing
distribution system and increase in number of low tension consumers in the
system, the Distribution Losses are likely to increase.
5.4.3 Accordingly, while projecting the Energy Requirement of the system for FY
2012-13, Energy Sales projections are being grossed up by estimated Distribution
Loss at 3.50% to arrive at the quantum of power purchase required to cater to
the expected demand. The details regarding the sources of power identified to
meet the requirement of power purchases as estimated above has been
discussed in subsequent paragraphs (heading Power Purchase Cost). Therefore,
JUSCO submits to the Hon’ble Commission to allow distribution losses at 3.50%,
which is amongst the lowest while comparing with the average distribution
losses of the other private Distribution Licensees in India. JUSCO submits that it
shall continue its endeavour towards operating at the lowest loss levels feasible
and accordingly the actual losses reported may be considered by the Hon’ble
Commission at the time of true – up of FY 2012-13 figures along with sharing of
gains & losses mechanism. JUSCO would like to bring to the notice of the Hon’ble
Commission that the projected loss level for FY12-13 at 3.5% are lower than the
Loss Target levels specified for JUSCO in the Regulations’2010 . This has been
made possible by various sincere efforts and hard work by the staff and officers
of JUSCO as explained in Section-3 previously. JUSCO has considered sharing of
Gains due to lower T&D losses in the APR of FY12-13.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-57
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.5 Power Purchase Cost
5.5.1 This cost is a function of the energy requirement and price of available power
from the different source for meeting the requirement.
5.5.2 JUSCO has been able to cater to its systems energy requirement majorly from
the power available from Tata Steel Ltd and remaining part from DVC.
5.5.3 For its continuous quest of getting a reliable and firm power source, JUSCO has
additionally tied-up 10 MVA power with Damodar Valley Corporation (DVC).
This will have total sanctioned capacity with DVC at 20 MVA for JUSCO.
5.5.4 Accordingly, for FY 2012-13, JUSCO has various sources of power i.e. Tata Steel
Ltd, DVC, Renewable purchase & other sources/ traders for unmet demand.
The source wise power purchase costs are discussed herewith.
5.5.5 Tata Steel Ltd - The power purchase rate considered for Tata Steel Ltd is 3.07
/kWh. This price is based on a moderate hike of 5% on proposed power
purchase price of 2.92 /kWh for FY 2011-12 and is in line with CERC Escalation
Rates for coal prices for bid evaluations issued recently. Tata Steel is selling coal
based power to JUSCO. A hike of 5% is justifiable considering high inflation
during the year combined with already hiked coal prices of regulated sale of
coal. The power purchase expenses for FY 2012-13 compute to 5,982 Lacs
for 195 MUs.
5.5.6 DVC – As mentioned earlier, the petitioner has managed to further tie-up 10
MVA of power for its license area wef December 2011 making it 20 MVA of
power from entire FY 201-12-13. It is estimated that power available from DVC
for FY 2012-13 will be 82 MUs. The rate for power purchase from DVC is
projected at Rs 4.01 per kWh for FY 2012-13 which is based on current price of
3.82 per unit and a nominal hike of 5% considering future coal price
increases. The same is also in line with CERC Escalation Rates for coal prices for
bid evaluations issued recently. The power purchase cost works out to 3,288
Lacs.
5.5.7 Renewable Sources - The Hon’ble Commission has issued (Renewable Purchase
Obligation and its Compliance), Regulations 2010 which is applicable till March
2013. However as discussed earlier in para 2.4.3, the petitioner had requested
for deferment of RPO by one year which was agreed by Hon’ble Commission
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-58
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
and accordingly the minimum Renewable Purchase Obligation (RPO) applicable
to petitioner is given below:
Table 48: RPO for JUSCO
Year Minimum Quantum of purchase in (%) from renewable
energy sources (in terms of energy in kWh)
Solar Non Solar Total
2011-12 0.25 1.75 2.00
2012-13 0.50 2.50 3.00
2013-14 1.00 3.00 4.00
5.5.8 The petitioner has projected power purchase cost for Renewable sources
considering rates as approved by Hon’ble Commission in previous tariff order.
The details of renewable power purchase cost are given in the table below:
Table 49: Power Purchase from Renewable Sources - FY 2012-13
Renewable Sources RPO (%) RPO ('000 Units)Rate
(Rs/kWh)Rs.Lacs
Solar Sources 0.50% 1,568 14.98 235
Non-Solar Sources 2.50% 7,840 5.00 392
Total 9,408 627
5.5.9 Traders/ Other Sources – It is submitted that due to increase in normal
consumption growth and additional load release, the present energy
availability from Tata Steel, DVC and Renewable would be insufficient to meet
the demand of license area. It is projected that entire shortfall of power will be
made good through open market/ traders/ exchanges etc which is estimated at
27 MUs for FY 2012-13. The prevailing short term market rates as per CERC
Market Monitoring Reports are around 4.50 to 4.75 for peak period and
accordingly rate of 4.25 per unit has been considered for such sources for FY
2012-13. The power purchase cost computes to 1,155 Lacs.
5.5.10 Summary of Power Purchase Cost: The summary of the total power purchase
cost for all sources for FY 2012-13 are computed in the table below:
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-59
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 50: Power Purchase Cost - FY 2012-13
Rs. in Lacs
FY 2011-12 FY 2012-13
Provisional Projected
Tata Steel Limited (A)
132 KV 5,551 5,946
33 KV - -
6.6 KV 34 37
RPO Purchases (B) 327 627
DVC (C) 2,468 3,288
Others / Traders (D) - 1,155
Total Power Purchase Cost (A+B+C+D) 8,381 11,052
Units Purchased (Thousand Units) 261,593 313,603
Cost (per kWh) 3.20 3.52
Particular
5.5.11 The petitioner requests the Hon’ble Commission to kindly approve 11,052
Lacs for FY 2012-13.
5.6 Operation and Maintenance Expenses
5.6.1 This section provides details of the Operation & Maintenance expenditure for
FY 2011-12 and FY 2012-13. O&M expenses comprise of the three main
expense heads of Employee Costs, Repairs & Maintenance Charges and
Administration & General Expenses.
5.6.2 As already discussed in the introductory chapter, JUSCO is an integrated service
provider, having 8 divisions namely Construction, Water Management, Water
Services, Public Health and Horticulture Services, Integrated Customer Services,
Fleet Management, Hospitality Services and Power Services Division (PSD)
which are further served by several common “back office functions” like HR, IT,
F&A, Procurement, Improvement Initiatives, Corporate Communication, etc.
The Financial Accounting System (FAS) is maintained on SAP platform and
separate cost centres have been created in the FAS through which
identification of directly allocable expenditures has been provided for. In case
of expenditures which are of common nature either across JUSCO or across the
whole Power Service Division, apportionment has been done on logical basis
keeping in view the generally accepted accounting norms or principles which
have already been explained in Introduction Chapter.
5.6.3 It may kindly be appreciated that, these common services if had not been
available to the Licensee operations from the Common Pool of JUSCO, then it
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-60
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
would have cost much higher for the Licensee to establish each of these
functions separately. Therefore, while availing the benefits of these pooled
common services at a relatively lower cost, it would be quite obvious to bear a
suitable portion of the cost incurred by these common functions of JUSCO.
Further, the Licensee’s Project is a part of one of main business segment of
JUSCO, i.e. Power Service Division (PSD) which serves to both Jamshedpur and
Saraikela project operations. Therefore, the common cost of PSD has also been
apportioned equally between Jamshedpur and Saraikela Projects.
5.6.4 JUSCO submits that the Hon’ble Commission has approved principle of
apportionment and the resulting Common Cost of JUSCO under O&M Expenses
in its pervious Tariff Order and the same have been followed for computation
of Common Cost for FY’s 2011-12 and 2012-13.
5.7 Inflation Rate
5.7.1 As explained earlier in para 4.7, the inflation rate of 10.31% has been
considered for projection of employee and other expenses for FY 2012-13.
5.8 Employee Costs
5.8.1 The projected direct employee cost for FY 2012-13 has been estimated at Rs
349.38 Lacs. JUSCO submits that it has planned to recruit additional man power
in FY 2012-13. It is expected that the number of employees will increase from
the existing level of 68 (first half of FY 2011-12) to 85 in the FY 2012-13. JUSCO
submits that the Hon’ble Commission may please consider these expenses for
additional manpower recruitment on proportionate basis of previous year and
permit JUSCO to incur and recover the same through the tariffs.
5.8.2 In addition to the above, certain increase in the employee expenses has also
been assumed to offset the effect of inflation and salary hikes, etc. for the
existing employees. This increase is considered at around 10.31% over the
previous year employee expenses at this stage. It is submitted that, the
increase % may be higher to retain/acquire the desired quality of man power
and the Hon’ble Commission shall allow the entire employee cost on actual
basis. It shall be noted that even at such a low level of operations, JUSCO has
still managed to maintain its employee cost and productivity parameters
comparable/better than other private sector electricity distribution utilities.
5.8.3 We would like to submit to the Hon’ble Commission that rise of Employee
expenditure is purely to meet the growing needs of the business and the
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-61
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
growing customer base mainly in Domestic category and to offset the
inflationary increases in cost.
5.8.4 The allocation of cost for common services for Employee cost i.e. Indirect Costs
are projected at Rs 159.29 Lacs for FY 2012-13 considering inflation rate over
previous year indirect cost of 144.40 Lacs. The table below provides the
employee cost for FY 2011-12 and FY 2012-13.
Table 51: Employee Expenses - FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
Salaries & Allowances
Salary (Basic) 109.54 125.51
Special Allowance 40.20 46.06
Wages Other Charges 56.72 64.99
House Rent Allowance 11.85 13.58
Conveyance Allowance 10.22 11.71
Reimb.- Chauffeur 3.80 4.36
Leave Travel Assistance 5.87 6.72
Leave Salary 14.97 17.16
Superannuation Fund 16.23 18.59
Contribution to Provident fund 13.63 15.61
Gratuity 12.23 14.02
Medical Expenses 1.07 1.22
Other, if any (Employee benefit AS-15) 8.59 9.84
Employee Costs (Direct) 304.93 349.38
Common Cost of JUSCO 144.40 159.29
Total Employee Cost 449.33 508.67
Particular
5.8.5 Accordingly, the petitioner requests the Hon’ble Commission to kindly allow
the amount of 508.67 Lacs for the aforesaid period against employee
expenses.
5.9 Repair and Maintenance Expenses
5.9.1 It is submitted that petitioner has to undertake repair of existing/
strengthening by providing new earthen pits of all the earthings including 132
kV, 33 kV substations, OT etc. In line with the Commission’s methodology,
JUSCO has considered 1.92% of R&M expenses as % of opening GFA.
Accordingly, this % is applied on opening GFA of FY 2011-12 for projecting R&M
expenses for FY 2012-13 which work out to 189.67 Lacs. It is submitted that
per unit R&M cost is same as in case of previous year at 0.06 per kWh.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-62
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.9.2 Therefore, JUSCO requests the Hon’ble Commission to kindly approve 189.67
Lacs as R&M expenses for FY 2012-13.
5.10 Administration & General Expenses
5.10.1 In line with the methodology & assumptions discussed in previous chapter of
FY 2011-12, the A&G Expenses for FY 2012-13 are projected considering an
inflation rate of 10.31% over previous year amount of 300.87 Lacs of FY
2011-12 for direct as well as common costs excluding surcharge on electricity
duty which is abolished. The table below provides the A&G expenses for FY
2012-13:
Table 52: A & G Expenses - FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
A&G Costs (Direct) 202.68 211.33
Common Cost of JUSCO 98.19 108.32
GROSS A&G COST 300.87 319.65
Less: A&G Expenses capitalised - -
NET A&G COST 300.87 319.65
Particular
5.10.2 The Hon’ble Commission is requested to kindly approve the expenses of
319.65 Lacs towards A&G for FY 2012-13.
5.10.3 Summary of O&M Expenses: The total provisional O&M Expenses for FY 2011-
12 and projected O&M Expenses for FY 2012-13 for JUSCO are being
summarised in the table below.
Table 53: Summary O & M Expenses - FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
O&M Expenses - Direct
Employee Cost 305 349
R&M Expenses 151 190
A&G Expenses 203 211
Total (A) 659 750
O&M Expenses - Common Cost of JUSCO
Employee Cost 144 159
A&G Expenses 98 108
Total (B) 243 268
Total O&M Expenses (A+B) 901 1,018
Particular
5.10.4 Accordingly, JUSCO submits to the Hon’ble Commission to approve the O&M
costs amounting 1,018 Lacs for FY 2012-13.
Chapter 5 ARR of FY 2013 Nov 2011 Page 5-63
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.11 Capital Expenditure Schemes
5.11.1 Capital Expenditure would be the key aspect of the expansion plan JUSCO. The
table below depicts the provisional capital expenditure incurred in FY 2011-12
towards the originally submitted capital scheme and it also summarises the
Phasing out of the Ongoing and New Capital Expenditure Schemes in FY 2012-
13.
Chapter 5 ARR of FY 2013 Page 5-64 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 54: Capital Expenditure and Capitalization for FY 2012-13
FY 2011-12
(Prov)
FY 2012-13 FY 2013-14
Ongoing Schemes (A)
1 132kV Line from DVC Chandil Substation 1,000 1,000 3,333 386 2,100 429 Major changes in scope. 3.5km overhead line is not possible due ROW issue, to be taken
through 132KV underground cable.
2 33 kV Overhead Line from Gamhari to Seraikela 325 325 325 95.00 207.84 - Progressing very slow due to major ROW issue from land owner.
3 11kV Overhead line for secondary distribution 135 135 135 48 77 - Details as per annexure-A
4 11/.433 V Distribution Transformers 168 168 168 86 59 Details as per annexure-A
5 Land for substations in various blocks of Seraikela-Kharsawan* 100 100 100 50 43 Details as per annexure-A
6 33/11kV substation at Seraikela 247 247 247 - 100 131 Engineering activity & BOM with specification is made ready. Material procurement &
erection to be taken up once 33KV line to seraikela is nearing completion.
7 LDC for distribution system in Seraikela-Kharasawan 400 100 70 6 Completed . Capitalisation in FY11-12
8 Vehicle for Testing Equipment/Staff movement 5 5 5 - Completed
9 Mobile Transformer on Van with trolley and switchgears 10 10 10 10 Finalisation of vendor is in progress.
10 56 MVA Power Transformer 370 370 Completed in FY 2009-10
11 33kV Feeder from TGS to Phase#7 alongwith terminal equipment 205 205 271 243 Delayed due to ROW from PWD for Tata-Kandra road.
12 New 33kV feeder in Large Sector Area. 150 150 150 130 19 Material received. Erection in progress
13 132kV Bay at Chandil with provision of 132/33kV Substation 490 490 490 - 190 300 Scheme have not started due to non availability of land. To be taken up during FY12-13.
14 Low Tension Lines in Adityapur & Gamharia Area. 100 100 100 10 90 In progress
15 High Tension Line in Adityapur & Gamharia Area. 400 400 400 90 176 134 In progress
16 33/11kV Substation in Adityapur Area for AIADA Phase 4 &6 430 430 430 - 344 86 Not started . To be taken up during FY12-13.
17 Augmentation of Transformation Capacity at 132kV/33kV Substation at TGS. 850 850 850 - 595 255 Not started . To be taken up during FY12-13.
18 GIS for New Connection/ power distribution management. 60 60 60 - - 60 To be completed in 12 months
19 Office and storage space in AIADA Phase#2 and Phase#7 substation. 80 80 80 40 40 Civil work has been started.
20 Video Surveillance System at 4 nos. of substation. 3.5 3.5 4 4 Completed
Total - old Schemes (A) 5,529 5,229 7,228 1,197 4,040 1,395
21 Fire Fighting system for 132/33 KV TGS substation 100 - 75 25 To be completed in 12 months from scheme approval.
22 Emergency restoration system in case of failure 132KV Transmission tower 250 - 125 125 To be completed in 12 months from scheme approval.
Total - New Schemes (B) 350 - 200 150
Gross Scheme Cost (A+B) 7,578 1,197 4,240 1,545
Remarks
New Schemes
Original
Scheme Cost
Scheme Cost
submitted
FY2011-12
Revised
Scheme Cost
FY2012-13
Phasing OutSl.
No.
Particulars
5.11.2 Accordingly, JUSCO submits to the Hon’ble Commission to approve the capital expenditure of 4,240 Lacs for FY 2012-13 and the
resultant capitalisation.
Chapter 5 ARR of FY 2013 Page 5-65 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.12 Capital Work in Progress and Gross Fixed Assets
5.12.1 Based on the progress of the schemes an amount of 2,410 Lacs is projected
to be capitalised during FY 2012-13. The petitioner has not considered any IDC
in this financial year and requests Hon’ble Commission to allow petitioner to
claim IDC at the time of performance review or as may be directed by Hon’ble
Commission. The Capital WIP and the Capitalisation of expenditure i.e.
additions to GFA projected for FY 2012-13 is summarised in the table below
along with provisional figures of FY 2011-12.
Table 55: CWIP, GFA & Depreciation - FY 2012-13
Rs. Lacs
FY 2011-12 FY 2012-13
Provisional Projected
Opening CWIP 1,100 1,493
Capex during the FY 1,197 4,240
Total CWIP 2,297 5,733
Less: Transferred to GFA 804 2,410
Closing CWIP 1,493 3,323
Opening GFA 9,879 10,683
Transferred from CWIP 804 2,410
Closing GFA 10,683 13,093
Depreciation for the year 644 745
Less: Depreciation on Assets created out of
Consumer Contribution185 211
Net Deprecation 459 534
Particulars
Depreciation
Gross Fixed Assets (GFA)
Capital Work in Progress (CWIP)
5.13 Depreciation
5.13.1 The computation of depreciation is based on Straight Line Method of
computation as prescribed in the Tariff Regulations issued by the Hon’ble
Commission using the rates as provided in Appendix II to the Tariff Regulations
and as per the methodology discussed in earlier chapter for FY 2011-12.
Accordingly, the provisional Depreciation for FY 2011-12 and projected
Depreciation for FY 2012-13 has been outlined in the table below.
5.13.2 However, the Hon’ble Commission in its Tariff Order had disallowed the
Depreciation Costs proportionate to the Gross Fixed Assets being contributed
by Consumer Contribution. Therefore, JUSCO has reduced the Depreciation
Costs in proportion to the Consumer Contribution estimated to be transferred
to Capital Reserve which is projected at 211 Lacs. The computation of
Depreciation Costs for 2012-13 has been depicted in the table below.
Chapter 5 ARR of FY 2013 Page 5-66 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 56: Depreciation for FY 2012-13
1 Land Devlopment 0.00% - - -
2 Offices & Showroom 3.02% 60 20 80
3 Other Buildings 3.02% 2 1 2
4 Transformers 7.81% 275 108 383
5 Switchgear including cable connections 7.84% 704 243 947
6 Underground CABLE 5.27% 445 173 618
7 Overhead Lines < 6.6kv (LT) 7.84% 26 12 38
8 Overhead Lines > 6.6kv 5.27% 392 138 529
9 Meters 12.77% 13 5 18
10 Self propelled vehicles 33.40% 7 3 11
11 Air conditionar (Portable) 33.40% 6 3 9
12 Office furniture & fittings 12.77% 5 2 7
13 Office Equipments 12.77% 30 12 41
14 Street Light fittings 12.77% 0 0 0
15 Communication System 12.77% 1 1 2
16 Data Processing Machine 12.77% 10 3 13
17 Software 9.00% 40 20 60
18 Other Assets - 20 - 20
Total 2,035 745 2,780
Sl.
No.Particulars of Assets
Rate of
Depreciation
Accumulated
Depn as on
01.04.2012
Depreciation
for FY 2012-13
Accumulated
Depn as on
31.03.2013
5.13.3 Accordingly, JUSCO submits to the Hon’ble Commission to approve the net
depreciation of 534 Lacs for FY 2012-13.
5.14 Interest and Finance Charges
The Interest costs have been estimated under the following three heads:
� Interest on Normative Debt;
� Bank Charges; and
� Interest on Security Deposit.
5.14.1 Interest on Long Term Debt
The Tariff Regulation issued by the Hon’ble Commission provides that:
“11.1 Interest on loan capital shall be computed loan-wise on the actual
outstanding loans duly taking into account the schedule of repayment and actual
interest rate.
11.2 Normative Loan will be equal to the loan and amount of equity in excess of
thirty percent (30%) invested into the project provided that the total of actual
loans, equity and the normative loan shall not exceed the cost of the project.”
Chapter 5 ARR of FY 2013 Page 5-67 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.14.2 The entire capital expenditure incurred by JUSCO has been funded through its
own resources i.e. through equity infusion and through consumer
contributions. However, as per the provisions of Regulation 11 of JSERC (Terms
and Conditions for Distribution Tariff Regulations), normative loans shall be
considered equal to the loan (if any) and amount of equity in excess of 30%
invested in the project.
5.14.3 The interest rate for computation of interest on normative loan is taken as per
SBI BPLR of 14.75% prevailing as on date. The interest on normative loan for
the FY 2012-13 works out to 810 Lacs for average normative loan balance of
5,493 Lacs.
5.14.4 Bank Charges – The bank charges have been considered at 18 lacs
considering quantum of 20 MVA for FY 2012-13 i.e. 1.50 Lacs per month.
5.14.5 Interest on Security Deposit - The Interest on security deposit is claimed as per
the provisions of JSERC Supply Code Regulations 2005 and projected at 180
Lacs for FY 2012-13 for average security deposit amount of 3,023 Lacs.
5.14.6 The table below summarise total interest and finance charges for FY 2012-13
Table 57: Interest & Finance Charges for FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
Opening Balance 4,124 5,032
Add: Deemed Additions 1,367 1,456
Less: Deemed Repayments 459 534
Closing Balance 5,032 5,954
Average Balance 4,578 5,493
Interest Rate 13.25% 14.75%
Interest on Normative Loan (A) 607 810
Other/Bank Charges(B) 9 18
Interest on Security Deposit (C) 146 180
Total Interest and Finance Charges (A+B+C) 761 1,008
Particulars
5.14.7 The Hon’ble Commission is requested to approve the total interest and finance
charges of 1,008 Lacs for FY 2012-13.
Chapter 5 ARR of FY 2013 Page 5-68 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.15 Reasonable Return on Equity
5.15.1 As per JSERC (Terms and Condition for Determination of Distribution Tariff)
Regulations, 2010 issued by the Hon’ble Commission, a return @ 15.5% (post
tax) on the equity base is considered and in line with methodology adopted in
previous tariff order.
5.15.2 The normative equity is estimated considering the CWIP capitalised during the
FY, the Debt: Equity norm of 70:30 and RoE at 15.5% for FY 2012-13. The base
considered for the opening balances of Gross Fixed Asset less Consumer
Contribution and 30% of the same is taken as equity base for return
computation. The return on equity is also computed and charged
proportionately on the assets capitalised during the year.
Table 58: Return on Equity - FY 2011-12
FY 2011-12 FY 2012-13
Provisional Projected
Opening Balance 2,213 3,029
Add: Deemed Additions 816 714
Closing Balance 3,029 3,743
Average Balance 2,621 3,386
Rate of Return 15.50% 15.50%
ROE grossed up with tax rate 22.94% 22.94%
Return on Equity 601 777
Particulars
5.15.3 JUSCO submits to the Hon’ble Commission to kindly approve ROE of 777 Lacs
as presented in the above table for FY 2012-13.
5.16 Demand Side Management (DSM) and CGRF Expenses
5.16.1 JUSCO in the chapter of FY 2011-12 has discussed about initiatives being taken
for DSM and CGRF activities and accordingly requests Hon’ble Commission to
approve same amount of 46 Lacs for FY 2012-13.
5.16.2 It is submitted to Hon’ble Commission that the expenditure to be incurred for
DSM and CGRF activities may be approved on a provisionally basis and the
petitioner shall provide the details of the same in the subsequent filing under
Annual Performance Review of FY 2012-13.
5.17 Non Tariff Filing
5.17.1 Non-Tariff Income includes Meter Rent, Delayed Payment Surcharge and
Supervision Charges among others. JUSCO has provisionally estimated its Non-
Tariff Income for FY 2012-13 at 25.72 Lacs similar to the level of FY 2011-12.
Chapter 5 ARR of FY 2013 Page 5-69 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5.18 Revenue from Sale of Power at Existing Tariff
5.18.1 Based on the projected sales, the revenue from sale of power at existing tariff
for FY 2012-13, computes to 13,828 Lacs.
5.18.2 The computation of revenue for FY 2012-13 has been similar that of FY 2011-12
H2. The consumer category-wise revenue details at existing tariff have been
shown in table below:
Table 59: Revenue from Sale of Power at Existing Tariff - FY 2012-13
Sales Average
Tariff
(000 Units)Fixed
Charges
Energy
Charges
Others
(Rebate/
Surcharges)
Total
Revenue(Rs/kWh)
Domestic (DS)
DS I 120 - 132 - 132 1.10
DS II 115 22 200 1 223 1.94
DS III 1,239 63 2,354 3 2,420 1.95
DSHT 7,171 3,496 11,833 4 15,334 2.14
Non-Domestic (NDS) -
NDS I -
NDS II 2,394 2,539 9,457 6 12,002 5.01
Low Tension (LTIS) -
LTIS 6,013 5,317 21,046 965 27,327 4.54
High Tension (HTS) -
HTS 11 kV 127,012 74,634 552,504 (3,215) 623,923 4.91
HTS 33 kV 138,040 43,051 600,475 (21,376) 622,149 4.51
High Tension Special (HTSS) -
HTSS 11 kV 7,802 5,702 19,506 (415) 24,793 3.18
HTSS 33 kV 12,839 24,057 32,098 (1,635) 54,520 4.25
Total 302,747 158,881 1,249,604 (25,662) 1,382,823 4.57
Cosnumer Category
Revenue from Sale of Power (Rs. in Thousand)
5.18.3 The petitioner, JUSCO submits to the Hon’ble Commission to kindly approve
the revenue of 13,828 Lacs for FY 2012-13 at existing tariffs.
5.19 Summary of ARR
5.19.1 Based on the above discussions, the table below summarizes JUSCO’s
provisional Aggregate Revenue Requirement for the FY 2011-12 and projected
Aggregate Revenue Requirement for the FY 2012-13 at Rs 11,124 Lacs and Rs
14,409 Lacs respectively.
Chapter 5 ARR of FY 2013 Page 5-70 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 60: Summary of ARR - FY 2012-13
FY 2011-12 FY 2012-13
Provisional Projected
Costs
Power Purchase Cost 8,381 11,052
O&M Expenses 901 1,018
Employee Costs 449 509
R&M Expenses 151 190
A&G Expenses 301 320
Depreciation 459 534
DSM & CGRF Expenses 46 46
Interest & Finance Charges 761 1,008
Income Tax -
Total Expenses 10,548 13,658
Add: Reasonable Return 601 777
Less: Non-Tariff Income 26 26
Aggregate Revenue Requirement 11,124 14,409
Revenue at Existing Tariff 12,017 13,828
Revenue Gap/ (Surplus) (893) 581
Sales in Thousand Units 255,952 302,627
Cost of Supply (Rs per kWh) 4.35 4.76
Particulars
5.19.2 The average cost of supply is computed as Rs 4.35 per kWh and Rs 4.76 per
kWh for FY 2011-12 and FY 2012-13 respectively. The increase in Cost of Supply
of FY 2012-13 over FY 2011-12 is due to increase in power purchase cost from
DVC and other inflationary increases under O&M expenses.
5.20 Revenue Gap\Surplus
5.20.1 Accordingly, JUSCO submits to the Hon’ble Commission to consider the
revenue gap / (surplus) for FY 2012-13 along with previous year’s gap/
(surplus). The net revenue gap/ (surplus) computes to (353) Lacs.
Table 61: Revenue Gap / (Surplus) - FY 2012-13
Rs. Lacs
FY 2012-13
Projected
Annual Revenue Requirement for FY 2012-13 14,409
Revenue from Sale of Power at Existing Tariff 13,828
Pure Gap for the Financial Year 581
Add: Past Recoveries and other gaps till FY 2011-12 (934)
Cummulative Revenue Gap/ (Surplus) (353)
Particulars
Proposed Tariff Schedule Page 6-71 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 6. Proposed Tariff Schedule
6.1 New/Proposed Consumer Category: Temporary Power Connections/Supply
Petitioner submits that every year it receives applications for temporary supply
i.e. during festivals/public/domestic functions etc. Petitioner requests the
Commission to kindly approve a tariff at the rate of Rs. 5 per kWh including fixed
charges for such temporary power supply. The tariff should be at higher side in
order to ensure that the temporary supply is not misused and is demanded by
customers for permanent nature of supply.
6.2 Domestic Service (DS)
Applicability
Domestic Service–I, Domestic Service–II, Domestic Service–III and Domestic
Service HT
This schedule shall apply to private residential premises for domestic use for
household electric appliances such as Radios, Fans, Televisions, Desert Coolers,
Air Conditioner, etc. and including Motors pumps for lifting water up to 1 BHP for
domestic purposes and other household electrical appliances not covered under
any other schedule.
This rate is also applicable for supply to religious institutions such as Temples,
Gurudwaras, Mosques, Church and Burial/Crematorium grounds and other
recognised charitable institutions, where no rental or fees are charged
whatsoever. If any fee or rentals are charged, such institution will be charged
under Non domestic category.
Category of Services:
a) Domestic Service – DS-1(a): - For Kutir Jyoti Connections metered only for
connected load up to 100 Watt for Rural Areas.
b) Domestic Service – DS-I (b): - For rural areas not covered by area indicated
under DS-II and for connected load not exceeding 2 KW.
c) Domestic Service – (DS-II): - For Urban areas covered by notified Area
Committee / Municipality / Municipal Corporation / All District Town / All
sub-divisional Town / All Block Headquarters / Industrial Area / contiguous
Proposed Tariff Schedule Page 6-72 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
sub-urban area all market places urban or rural and for connected load not
exceeding 4KW.
d) Domestic Service – (DS – III):-For Urban areas covered by notified Area
Committee / Municipality / Municipal Corporation / All District Town / All
sub-divisional Town / All Block Headquarters / Industrial Area / contiguous
sub-urban area all market places urban or rural and for connected load
exceeding 4KW. Rural Drinking Water supply managed by panchayats’ users
associations etc. will also be covered in this category.
e) Domestic service – HT (DS–HT) (Optional): - This Schedule shall apply for
Domestic Connection in Housing Colonies / Housing Complexes/ Houses of
multi storied buildings purely for residential use for single point metered
supply, with power supply at 11KV voltage level and load upto 75 KW.
Service Character:
a) For DS-I (a): AC, 50 Cycles, Single phase at 230 volts for Kutir Jyoti connection for
load upto 100 W
b) For DS-I (b): AC, 50 Cycles, Single Phase at 230 Volts for load below 2 KW.
c) For DS-II: AC, 50 Cycles, Single Phase at 230 Volts for installed load up to 4 KW.
d) For DS-III: AC, 50 Cycles, three phase at 400 Volts for installed load exceeding 4
KW.
e) For DS-HT: AC, 50 Cycles, at 11 KV Volts for installed load up to 75 KW.
Table 62: Tariff for Different Domestic Categories
Existing Proposed Unit Existing Proposed
DS-1(a), Kutir Jyoti
Connections,Metered Nil Nil Rs./kWh 1.1 1.10
DS-1(a), Kutir Jyoti
Connections,Unmetered
Rs. 30 per Connection
per Month
Rs. 30 per Connection
per Month Rs./kWh Nil Nil
DS-1(b), other rural domestic
consumers,metered Nil Nil Rs./kWh 1.1 1.10
DS-1(b), other rural domestic
consumers,unmetered
Rs. 70 per Connection
per Month
Rs. 70 per Connection
per Month Rs./kWh Nil Nil
Rs. 25 per Connection
per Month
Rs. 25 per Connection
per Month
Rs./kWh
(0-200 Units)1.5 1.50
Rs. 30 per Connection
per Month
Rs. 30 per Connection
per Month
Rs./kWh
(Above 200 Units)1.9 1.90
DS - III Rs. 50 per Connection
per Month
Rs. 50 per Connection
per Month Rs./kWh 1.9 1.90
DS HT Rs. 40 per kVA per
Month
Rs. 40 per kVA per
Month Rs./kWh 1.65 1.65
Consumer Category
Fixed Charge / Demand Charge Energy Charge (Rs./Unit)
DS - II <200
>200
Delayed Payment Surcharge
Proposed Tariff Schedule Page 6-73 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
For Domestic Service category, the delayed payment surcharge will be at the rate
of 1.5% per month and part thereof. The due date for making payment of energy
bills or other charges shall be fifteen days from the date of serving of bill.
6.3 Non-Domestic Service (NDS)
Applicability
This schedule shall apply to all consumers, using electrical energy for light, fan
and power loads for non-domestic purposes like shops, hospitals (govt. or
private), nursing homes, clinics, dispensaries, restaurants, hotels, clubs, guest
houses, marriage houses, public halls, show rooms, workshops, central air-
conditioning units, offices (govt. or private), commercial establishments,
cinemas, X – ray plants, schools and colleges (govt. or private), boarding / lodging
houses, libraries (govt. or private), research institutes (govt. or private), railway
stations, fuel – oil stations, service stations (including vehicle service stations), All
India Radio / T.V. installations, printing presses, commercial trusts / societies,
Museums, poultry farms, banks, theatres, common facilities in multi-storied
commercial office/buildings, Dharmshala, and such other installations not
covered under any other tariff schedule.
Service Category:
a) Non-Domestic Service (NDS) – I, Rural. For Rural Area not covered by area
indicated for NDS – II and for connected load not exceeding 2 KW.
b) Non-Domestic Service (NDS) – II, Urban. For Urban Areas covered by Notified
Areas Committee / Municipality / Municipal Corporation / All District Town /
All Sub-divisional Town / All Block Hqrs. / Industrial Area and Contiguous Sub-
urban area, market place rural or urban and for connected load up to 75KW.
This schedule shall also apply to commercial consumer of rural area having
connected load above 2 kW.
Service Character:
a) NDS–I: - AC 50 Cycles, Single phase at 230 Volts for loads up to 2 kW.
b) NDS–II: - AC 50 Cycles, Single phase at 230 Volts or Three Phase at 400 Volts
for load exceeding 2 kW and up to 4 kW.
Table 63: Tariff for NDS Category
Proposed Tariff Schedule Page 6-74 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Existing Proposed Unit Existing Proposed
NDS - I, <=2kW
metered Nil Nil Rs./kWh 1.35 1.35
NDS - I, unmetered
Rs. 120 per kW per month or part
thereof for connected load up to 1 kW,
Rs. 60 per kW per month for each
additional 1 kW or part thereof
Rs. 120 per kW per month or
part thereof for connected load up
to 1 kW, Rs. 60 per kW per
month for each additional 1 kW or
part thereof
Rs./kWh - -
NDS - II Rs. 110 per kW per month or part
thereof
Rs. 110 per kW per month or
part thereof Rs./kWh 3.95 3.95
Consumer CategoryFixed Charge Energy Charge (Rs./Unit)
Delayed Payment Surcharge
For Non Domestic Category, the Delayed Payment Surcharge will at the rate of
1.5% per month and part thereof. The due date for making payment of energy
bills or other charges shall be fifteen days from the date of serving of bill.
6.4 LOW TENSION INDUSTRIAL SERVICES (LTIS)
Applicability:
This schedule shall apply to all industrial units applying for a load of less than or
equal to 100 KVA (or equivalent in terms of HP or KW).
The equivalent HP for 100 KVA shall be 114 HP and the equivalent KW for 100
KVA shall be 85.044 KW.
Service Character:
LTIS – AC, 50 Cycles, Single Phase supply at 230 Volts or 3 Phase Supply at 400
volts for use of electricity energy Demand Based tariff upto 100 KVA and under
Installation based tariff for sanctioned load upto equivalent HP of 100 KVA.
Table 64: Tariff for LTIS Category
Existing Proposed Unit Existing Proposed
LTIS(Demand) Rs.
75/HP/Month
Rs.
75/HP/Month Rs./kWh 3.50 3.50
LTIS(Installation)
Rs.
165/KVA/Mon
th
Rs.
165/KVA/Mon
th
Rs./kWh 3.50 3.50
Consumer CategoryFixed Charge Energy Charge (Rs./Unit)
Installation Based Tariff: All consumers under this category and opting for
Installation based tariff shall be required to pay fixed charges per HP as per the
applicable tariff rates for this category. If the inspecting officer during the
inspection of a premises finds excess load (more than 114 HP) then the
inspecting officer has to serve one month notice to the consumer for
regularisation of excess load (above 114 HP). After the expiry of the said one
Proposed Tariff Schedule Page 6-75 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
month, the inspecting officer will inspect the premises again and if he still finds
unregularized load in the premises, action may be taken as per law.
Demand Based Tariff: All consumers under this category and opting for Demand
Based tariff shall be required to pay Demand charges per KVA at the rate
applicable to HT consumers drawing power at 11 KV. The restriction of
connected load will not apply to consumers opting for Demand Based Tariff.
The billing demand shall be the maximum demand recorded during the month or
75% of contract demand whichever is higher. In case higher actual demand is
recorded for three continuous months, the same shall be considered as the basis
for new contract demand of future months provided consumer gets into a new
Agreement for the revised contracted demand after payment of necessary
charges as applicable.
Delayed Payment Surcharge
For Low tension industrial and medium power category, the Delayed Payment
Surcharge will at the rate of 1.5% per month and part thereof. The due date for
making payment of energy bills or other charges shall be fifteen days from the
date of serving of bill.
Power Factor Penalty
Power Factor Penalty will be applicable in case of maximum demand meters.
In case average power factor in a month for a consumer falls below 0.85, a
penalty @ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for
every 0.1 fall below 0.60 to 0.30 (up to and including 0.30) shall be levied on
demand and energy charges.
Power Factor Rebate
Power factor rebate will be applicable in case of maximum demand meters.
In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand
and energy charges shall be applicable.
6.5 Irrigation and Agriculture Service (IAS)
Applicability
This schedule shall apply to all consumers for use of electrical energy for
Agriculture purposes including tube wells and processing of the agricultural
Proposed Tariff Schedule Page 6-76 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
produce, confined to Chaff-Cutter, Thresher, Cane crusher and Rice-Hauler, when
operated by the agriculturist in the field or farm and does not include Rice mills,
Flour mills, Oil mills, Dal mills, Rice-Hauler or expellers.
Service Category
a. IAS – I –For private tube wells and private lift irrigation schemes.
b. IAS – II – State Tube-wells & State lift Irrigation Pumps.
Service Character
AC 50 Cycles, Single Phase at 230 volts / 3 Phase at 400 volts.
Table 65: Tariff for IAS Cagtegory
Existing Proposed Unit Existing Proposed
IAS - I (Metered) Nil Nil Rs./kWh 0.50 0.50
IAS - I (Unmetered) Rs.
50/HP/month
Rs.
50/HP/month Rs./kWh Nil Nil
IAS - II (Metered) Nil Nil Rs./kWh 0.75 0.75
IAS - II (Unmetered) Rs.
200/HP/month
Rs.
200/HP/month Rs./kWh Nil Nil
Consumer CategoryFixed Charge Energe Charge (Rs./Unit)
Delayed Payment Surcharge
For Irrigation and Agriculture service category, the Delayed Payment Surcharge
will at the rate of 1.5% per month and part thereof. The due date for making
payment of energy bills or other charges shall be fifteen days from the date of
serving of bill.
Power Factor Penalty
In case average power factor in a month for a consumer falls below 0.85, a
penalty @ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for
every 0.1 fall below 0.60 to 0.30 (up to and including 0.30) shall be levied on
demand and energy charges.
Power Factor Rebate
In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand
and energy charges shall be applicable.
Proposed Tariff Schedule Page 6-77 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
6.6 High Tension Voltage Supply Service (HTS)
Applicability
The schedule shall apply for consumers having contract demand above 100 KVA.
Service Character
50 Cycles, 3 Phase at 6.6 KV/11 KV/33 KV or 132 KV
Table 66: Tariff for HTS Category
Existing Proposed Unit Existing Proposed
HTS - 11 kV
Rs. 165
per kVA
per Month
Rs. 165
per kVA
per Month
Rs./kWh 4.35 4.35
HTS - 33 kV
Rs. 165
per kVA
per Month
Rs. 165
per kVA
per Month
Rs./kWh 4.35 4.35
HTS - 132 kV
Rs. 165
per kVA
per Month
Rs. 165
per kVA
per Month
Rs./kWh 4.35 4.35
Consumer
Category
Demand Charge Energe Charge (Rs./Unit)
The billing demand shall be the maximum demand recorded during the month or
75% of the contract demand, whichever is higher. In case higher actual demand
is recorded for three continuous months, the same shall be considered as the
basis for new contract demand of future months provided consumer gets into a
new Agreement for the revised contracted demand after payment of necessary
charges as applicable.
The penalty on exceeding contract demand shall be 1.5 times the normal charges
for actual demand exceeding 110% of the contracted demand both on energy
commensurate to exceeded demand and exceeded demand;. For the purpose of
calculating the penal charges exceed demand shall be the difference of the actual
demand and Contract Demand.
Voltage Rebate
Voltage rebate to the HT consumers will be applicable as given below:
Existing Proposed
HTS - 33 kV 3.00% 3.00%
HTS - 132 kV 5.00% 5.00%
HTS - 220 kV 5.50% 5.50%
HTS - 440 kV 6.00% 6.00%
Consumer
Category
Voltage Rebate
Proposed Tariff Schedule Page 6-78 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Note: The above rebate will be applicable only on monthly basis and consumer
with arrears shall not be eligible for the above rate. However, the applicable
rebates shall be allowed to consumers with outstanding dues, wherein such dues
have been stayed by the appropriate authority/Courts.
Load Factor Rebate
Load Factor Rebate to the HT Consumers is proposed as given below:
Existing Proposed
40 - 60% Nil Nil
60 - 70% 7.50% 7.50%
70 -100% 10.00% 10.00%
Load FactorLoad Factor Rebate
Note: The above rebate will be applicable only on monthly basis and consumer
with arrears shall not be eligible for the above rate. However, the applicable
rebates shall be allowed to consumers with outstanding dues, wherein such dues
have been stayed by the appropriate authority/Courts.
Delayed Payment Surcharge
For High tension service category, the Delayed Payment Surcharge will be
charged on a weekly basis at the rate of 0.4% per week. The due date for making
payment of energy bills or other charges shall be fifteen days from the date of
serving of bill.
Power Factor Penalty
In case average power factor in a month for a consumer falls below 0.85, a
penalty @ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for
every 0.1 fall below 0.60 to 0.30 (up to and including 0.30) shall be levied on
demand and energy charges. For calculating the power factor rebate or Penalty
only first two digits of the Power factor calculated ( KWhr / KVAH ) shall be
considered (without rounding off the same.)
Power Factor Rebate
In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand
and energy charges shall be applicable.
TOD Tariff for HTS Consumers
TOD tariff proposed for HTS Consumers is given below-
Proposed Tariff Schedule Page 6-79 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Off Peak Hours: 00: 00 Hrs to 08:00 Hrs and 20:00 Hrs to 24:00 Hrs. 85% of
normal rate of energy charge.
Peak Hours: 08:00 Hours to 20:00 Hours.: 120% of normal rate of energy charge
6.7 HT Special Service (HTSS)
Applicability
This tariff schedule shall apply to all consumers who have a contracted demand
of 300 KVA and more for induction/arc furnace. In case of induction/arc furnace
consumers, the contract demand shall be based on the total capacity of the
induction/arc furnace and the equipment as per manufacturer technical
specification and not on the basis of measurement. This tariff schedule will not
apply to casting units having induction furnace of melting capacity of 500 Kg or
below.
The billing demand shall be the maximum demand recorded during the month or
75% of the contract demand, whichever is higher. In case higher actual demand
is recorded for three continuous months, the same shall be considered as the
basis for new contract demand of future months provided consumer gets into a
new Agreement for the revised contracted demand after payment of necessary
charges as applicable..
The penalty on exceeding contract demand shall be 1.5 times the normal charges
for actual demand exceeding 110% of the contracted demand both on energy
commensurate to exceeded demand and exceeded demand;. For the purpose of
calculating the penal charges exceed demand shall be the difference of the actual
demand and Contract Demand.
Table 67: Tariff for HTSS Category
Existing Proposed Unit Existing Proposed
HTSS - 11 kV Rs. 330 per
kVA per Month
Rs. 330 per
kVA per
Month
Rs./kW 2.50 2.50
HTSS - 33 kV Rs. 330 per
kVA per Month
Rs. 330 per
kVA per
Month
Rs./kW 2.50 2.50
HTSS - 132 kV Rs. 330 per
kVA per Month
Rs. 330 per
kVA per
Month
Rs./kW 2.50 2.50
Consumer CategoryDemand Charge Energe Charge
Voltage Rebate
Voltage rebate to the HTSS consumers will be applicable as given below:
Proposed Tariff Schedule Page 6-80 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Existing* Proposed
HTS - 33 kV 3.00% 3.00%
HTS - 132 kV 5.00% 5.00%
HTS - 220 kV 5.50% 5.50%
HTS - 440 kV 6.00% 6.00%
Consumer CategoryVoltage Rebate
Note: The above rebate will be applicable only on monthly basis and consumer
with arrears shall not be eligible for the above rate.
Load Factor Rebate
Load Factor Rebate to the HTSS Consumers is proposed as given below:
Existing Proposed
40 - 60% Nil Nil
60 - 70% 7.50% 7.50%
70 -100% 10.00% 10.00%
Load FactorLoad Factor Rebate
Note: The above rebate will be applicable only on monthly basis and consumer
with arrears shall not be eligible for the above rate.
Delayed Payment Surcharge
For High tension special service category, the Delayed Payment Surcharge will be
charged on a weekly basis at the rate of 0.4% per week. The due date for making
payment of energy bills or other charges shall be fifteen days from the date of
serving of bill.
Power Factor Penalty
In case average power factor in a month for a consumer falls below 0.85, a
penalty @ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for
every 0.1 fall below 0.60 to 0.30 (up to and including 0.30) shall be levied on
demand and energy charges. For calculating the power factor rebate or Penalty
only first two digits of the Power factor calculated ( KWhr / KVAH ) shall be
considered (without rounding off the same.)
Power Factor Rebate
In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand
and energy charges shall be applicable.
Proposed Tariff Schedule Page 6-81 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
6.8 Street Light Service (SS)
Applicability
This tariff schedule shall apply for use of Street Lighting System, including single
system in corporation, municipality, notified area committee, panchayats etc and
are also in areas not covered by municipalities and notified area committee
provided the lamps served from a point of supply is not less than 5.
Service Character
AC, 50 Cycles, single phase at 230 Volts or three phase at 400 Volts
Category of Service
a) SS–I: - Metered Street Light Service.
b) SS–II: - Unmetered Street Light Service.
Table 68: Tariff for Street Light Service
Existing Proposed Unit Existing Proposed
SS-I (Metered) Rs 25/connection/month Rs Rs./kWh 3.50 3.50
SS-II (Unmetered)
Rs. 110/100 watt lamp in
addition Rs. 25 would be
charged for each addition 50
watt lamp.
Rs. 110/100 watt lamp
in addition Rs. 25 would
be charged for each
addition 50 watt lamp.
Rs./kWh Nil Nil
Energe ChargeConsumer Category
Fixed Charge
Delayed Payment Surcharge
For Street Light service category, the Delayed Payment Surcharge will at the rate
of 1.5% per month and part thereof. The due date for making payment of energy
bills or other charges shall be fifteen days from the date of serving of bill.
6.9 Rural Electric Co-operative (REC)/Small Housing Group (SHG)
Applicability
This tariff schedule shall apply for use in Electric Cooperatives (licensee) for
supply at 11 kV or 400 Volts. It also includes village panchayats where domestic
and non domestic rural tariff is not applicable.
Service Character
AC, 50 Cycles, three phase at 11kV or 400 Volts.
Proposed Tariff Schedule Page 6-82 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 69: Tariff for Rural Electric Co-operative/SHG
Existing Proposed Unit Existing Proposed Existing Proposed
REC/SHG Nil Nil Rs./kWh 0.70 0.70 Nil Nil
Consumer
Category
Fixed Charge Energe Charge Minimum Monthly
Delayed Payment Surcharge
For Rural Electric Cooperative service category, the Delayed Payment Surcharge
will be charged at the rate of 1.5% per month and part thereof. The due date for
making payment of energy bills or other charges shall be fifteen days from the
date of serving of bill.
6.10 Bulk Supply to Military Engineering Service (MES)
Applicability
This tariff schedule shall apply to Military Engineering Services (MES) for a mixed
load in defence cantonment and related area.
Table 70: Tariff for Military Engineering Service
Existing Proposed Unit Existing Proposed Existing Proposed
Bulk Supply to MES Rs. 160 per kVA
per Month
Rs. 160 per
kVA per
Month
Rs./kWh 3.00 3.00 Nil Nil
Consumer CategoryFixed Charge Energe Charge Minimum Monthly
Delayed Payment Surcharge
For Military Engineering service category, the Delayed Payment Surcharge will at
the rate of 1.5% per month and part thereof. The due date for making payment
of energy bills or other charges shall be fifteen days from the date of serving of
bill.
6.11 Urban Micro Distribution Franchisees (UMDF)
Applicability
This tariff schedule shall apply to power supply to distribution transformer based
Urban Micro Distribution Franchisees for distribution of power in predominantly
domestic and predominantly commercial areas.
Service Character
230 Volt/ 400 Volt AC, 50 Cycles and load up to 1000 KVA
Proposed Tariff Schedule Page 6-83 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Table 71: Tariff Schedule of Urban Micro Franchisee
Existing Proposed Unit Existing Proposed Existing Proposed
DT based Urban Micro
Franchisee -
Predominantly
Domestic
NA
Rs 30 per
kVA per
month
Rs./kW NA 1.90 NA NA
DT based Urban Micro
Franchisee -
Predominantly
Commercial
NA
Rs 100 per
kVA per
month
Rs./kW NA 3.75 NA NA
Minimum Monthly Consumer Category
Fixed Charge Energe Charge (Rs./Unit)
Additional Clauses applicable across all tariff categories
1. Statutory Levy
Electricity Duty and any other duty shall be levied as per the Electricity Duty Act,
1948 (amended upto date) and other prevailing regulations as made applicable
from time to time.
2. Billing Maximum Demand for HT Consumers
The billing demand shall be the maximum demand recorded during the month or
75% of the contract demand, whichever is higher. In case higher actual demand
is recorded for three continuous months, the same shall be considered as the
basis for new contract demand of future months provided consumer gets into a
new Agreement for the revised contracted demand after payment of necessary
charges as applicable..
The penalty on exceeding contract demand shall be 1.5 times the normal charges
for actual demand exceeding 110% of the contracted demand both on energy
commensurate to exceeded demand and exceeded demand;. For the purpose of
calculating the penal charges exceed demand shall be the difference of the actual
demand and Contract Demand.
3. Industry Non Sunday off Scheme
To encourage off Sunday scheme a rebate of 4% instead of 1.5% is being
proposed and also penalty imposed at 8% instead of 2.5% for non use of the
same under the Non Sunday Off Scheme.
4. Dishonoured Cheque
In the event of dishonored cheque for payment against a particular bill, the
Licensee shall charge a minimum of 300 Rs or 0.5% of the billed amount,
whichever is higher. The DPS shall be levied extra as per the applicable terms and
conditions of DPS for the respective category.
Proposed Tariff Schedule Page 6-84 Nov 2011
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
5. Conversion factors
The following shall be the conversion factors, as and where applicable :
(PF=0.85):
1 Kilowatt (KW) = 1.176 Kilovolt ampere (kVA)
1 Kilowatt (KW) = 1 / 0.746 Horse Power (HP)
1 Horse Power (1 HP) = 0.878 Kilovolt ampere (KVA)
6. Miscellaneous Charges
Attached as Annexure H
Chapter 7: Compliance to Directives Nov 2011 Page 7-85
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Chapter 7. Compliance to Directives
7.1 Sales Estimates and Projections
Post approval of the terms of reference by the honorable Commission in its directive
named as “Sales estimates and projection” in the Tariff order of the year 2011-12,
dated: 27-Aug-2011, JUSCO has floated enquiries to market analysis consultants for
taking up the work. Enquiries were given to the following eight parties on 28-th and 29-
th of sep. 2011, out of which quotations were received from first six parties(in the box
below) only between different dates from 1-sep. to 12-th sep. 2011.Last two parties
decided not to quote.
Sr. No. Name of the Company
1. Business Analyst Group , Kolkata
2. Array Consultancy Services, Kolkata
3. Flow Consultants pvt. Ltd., Kolkata
4. DKB & Associates, Kolkata
5. TNS India
6. Market Insight Consultants, Delhi
7. Exellentia Globle Consultants, Kolkata
8. R. S. Market Research solutions, Delhi
7.1.1 M/S, Flow consultants was the lowest bidder (offer received on 01-10-2011) and
therefore was selected for this work. Sanction request is to place order on the
above party is being processed and order placement is expected by the end of
oct-2011.It is expected that the detailed study will be completed within 6-8
months of the placing of the order.
7.1.2 JUSCO has also communicated the same vide Letter No. PBD/342/59/11 dated:
01-11-2011.
7.2 Cost Estimates and Projections
7.2.1 The expenditures incurred by the common services of JUSCO and its basis has
been elaborated in section 2.3 and section 3.4.2 . It is submitted that JUSCO has
been diligently maintaining records for actual costs which are directly allocable
to Power Business. It is respectfully submitted to Hon’ble Commission that apart
from its Power Business services, JUSCO manages other businesses also and it
cannot be compared with any other utility which has power distribution services
as main business and the incurred expenditure gets allocated to main business
only. JUSCO has other businesses also and to optimise/ reduce burden on
Chapter 7: Compliance to Directives Nov 2011 Page 7-86
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
consumers, these resources are shared by Power Business Division rather than
hiring/ procuring separately for it which ultimately avoids duplication of costs.
7.2.2 It is further submitted that there are examples from utilities in the country which
have generation, transmission & distribution business under a single entity. For.
Eg Tata Power Company Limited, Reliance Infrastructure Limited, Torrent Power
etc and costs for common office expenditure as well as central services like
HR/IR, Administration, Accounts, Quality Improvement, Procurement etc. and
other senior resources are being allowed by Commission on allocation basis.
7.2.3 Similarly, JUSCO in its petitions has been providing the information for Common
cost allocation. It is humbly submitted that Hon’ble Commission may kindly
accept the justifications indiacted in the above sections and also in section 2.3
and 3.4.2 .
7.2.4 JSERC (Distribution License Conditions) regulations, 2005 also provides for
reasonable allocation of Joint and common costs between licensed business and
other businesses of licensee.
“16.3 The Distribution Licensee shall in respect of the licensed business and other
business:
(a) Keep such Allocation Statement as would be required, so that the
revenues, costs, assets, liabilities, reserves and provisions for, reasonably
attributable to the licensed business are separately identifiable in the
books of the distribution licensee.
(b) Adopt a fair and transparent cost allocation mechanism for the
reasonable allocation of Joint and common costs between the licensed
business and the other business.
JUSCO would like to submit that the cost for common services of JUSCO for
Seraikela-Kharasawan distribution business has been taken in line with the above
provisions of the regulations.
7.3 Distribution Loss Estimation
7.3.1 JUSCO wants to submit that the reports are prepared each quarter and are sent
regularly to the Hon’ble Commission along with the notes, as done in last
quarter.
Chapter 7: Compliance to Directives Nov 2011 Page 7-87
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
7.4 Cost of Supply Study
7.4.1 The petitioner submits that it intends to carry out the study based on the inputs
from Hon’ble Commission on the Cost of Service Report submitted by M/s.Tata
Steel Limited. This will also ensure that approach and methodology for JUSCO is
in line with Commission’s approval to the extent possible and applicable for the
licence area business.
The petitioner However submits that the attempt to conduct the study by its
own resources did not materialised due to the engagement of manpower in day
to day operations and also due to shortage of experts on the subject. JUSCO is
trying to find out and engage expert agencies to undertake such study. It is
expected that the same may take another 2 to 3 months to engage the agency
and further 4 to 5 months to submit the report.
7.5 Load Factor of High Tension Service Category
7.5.1 The petitioner submits that it has complied the directive vide Letter No.
PBD/329/59/11 & PBD/335/59/11.
7.6 Expansion of Services
7.6.1 The Petitioner would like to communicate that it has submitted its plan for
expansion of services vide Letter No. PBD/341/59/11 dated: 31-10-2011 and
same may be considered by Hon’ble Commission. The same is also annexed
herewith the petition.
7.7 Expenditure on Capital Works
7.7.1 The petitioner submits that Cost Benefit Analysis study for the scheme wise
capital expenditure is in process and will be submitted in due course.
7.8 Details about Repair and Maintenance
7.8.1 The petitioner submits that it has submitted the report vide Letter No.
PBD/348/59/11 dated 02.11.2011. Copy Annexed with the petition.
Chapter 7: Compliance to Directives Nov 2011 Page 7-88
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
7.9 Data Adequacy in Petition
7.9.1 The petitioner wants to submit that it has ensured to submit the petition within
the regulatory timeframe and also made concerted efforts to provide required
data/ information in the petition.
7.10 Separate Accounts
7.10.1 The petitioner humbly submits that direct costs are being recorded separately
and separate accounts are maintained for power business to the extent possible
and identifiable. However the costs incurred by common service ( refer Table1)
of JUSCO for Seraikela Power Distribution is arrived based on the principles
explained in section 2.3 and section 3.4.2 .The petitioner requests the Hon’ble
Commission to kindly accept the same based on the explanations given in section
3.4.2
7.11 Loss Estimation Study
7.11.1 The petitioner submits that it has been regularly complying with the
Commission’s directive on Energy Audit Reports and submitting on quarterly
basis. The petitioner submits to Hon’ble Commission that its losses are one of the
lowest in the country.
7.11.2 The loss levels reported by JUSCO are based on actual meter reading of the
Consumer and the source end and therefore it may not be necessary to conduct
the loss level estimation for the existing network. However, JUSCO would like to
place before the Hon’ble Commission that it has engaged the PRDC ( Power
Research Development Consultants) for conducting the load flow and short
circuit analysis of its network. The result of the study will also throw the
theoretical loss level that should be there in such a system. PRDC is one of the
best Consultants in the country on the subject and they also own the most
popular Mi-Power software for network analysis.
7.11.3 The impact of subsequent JUSCOs network growth can also be modelled in the
same study and result can be viewed.
7.11.4 Order on PRDC has been placed and it is expected that they will require another
8 to 10 months to plan and conduct the study.
7.11.5 JUSCO will communicate the progress of the same to the Hon’ble commission in
due course.
7.12 Service Area
7.12.1 The Petitioner submits that the expansion plan for its licensed area along with
the time schedules is complied vide Letter No. PBD/341/59/11 dated: 31-10-
2011.
Chapter 7: Compliance to Directives Nov 2011 Page 7-89
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
7.12.2 The Petitioner submits that the status of consumer applications pending and the
reasons thereof is complied vide Letter No. PBD/343/59/11 dated: 01-11-2011.
7.13 Status of CGRF & DSM Initiatives
7.13.1 The Petitioner submits that status report of implementation of CGRF and DSM
initiatives is in process and will be submitted to Hon’ble Commission in due
course.
7.14 Adjustment of Bills & payments/Receipts as per Revised Power Sale Rate of TSL
determined in Tariff Order dated 27th
August 2011
7.14.1 The petitioner submits that the adjustment of bill and payment, receipt as per
revised power sale rate of Tata Steel Limited has been reconciled and the
supplementary bills are raised.
7.15 Data Adequacy in Petition for FY 2012-13
7.15.1 The petitioner submits that it has ensured to submit the present petition within
the regulatory timeframe and also made concerted efforts to provide required
data/ information in the petition.
Annexure A Nov 2011 Page 7-90
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure A: Letter from TSL to Commission for Fuel Surcharge Approval
Annexure B Nov 2011 Page 7-91
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure B : Entry Tax Gazetted Notification
Annexure C Nov 2011 Page 7-92
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure C: Agreement with DVC for Bank Charges on Letter of Credit
Annexure D Nov 2011 Page 7-93
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure D: Details of Addition of Expected Consumers in FY 2011-12
Sr. No. Consumer Category Unit March 2011Upto Sep
2011
Connection
Under
Progress
Application in hand ( not
yet deposited inst
charges)
Applications not
responding
Total Consumers
Expected upto March
2012A Domestic (DS)
1 DS I Nos
2 DS II Nos 13 15 20 5 5 35
3 DS III Nos 72 79 4 19 15 87
4 DSHT Nos 9 11 4 4 1 18
B Non-Domestic (NDS)
5 NDS I Nos
6 NDS II Nos 99 117 22 24 8 155
C Low Tension (LTIS)
7 LTIS Nos 51 56 9 24 12 77
D Irrigation & Agriculture Service (IAS)
8 IAS Nos
E High Tension (HTS)
9 HTS 11 kV Nos 105 106 12 32 18 132
10 HTS 33 kV Nos 13 13 1 4 3 15
E High Tension Special (HTSS)
11 HTSS 11 kV Nos 2 2 0 1 1 2
12 HTSS 33 kV Nos 1 1 0 1 0 2
Total 365 400 72 114 63 523
Annexure D Nov 2011 Page 7-94
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Details of Addition in Expected Load in FY 2011-12
Sr. No. Consumer Category Unit March 2011Upto Sep
2011
Connection
Under
Progress
Application in hand ( not
yet deposited inst
charges)
Applications not
responding
Total Consumers
Expected upto March
2012A Domestic (DS)
1 DS I kW - -
2 DS II kW 44 53 21 14 14 74
3 DS III kW 804 851 111 131 95 998
4 DSHT kVA 1,229 1,979 2,047 1,230 400 4,856
B Non-Domestic (NDS)
5 NDS I kW -
6 NDS II kW 1,006 1,166 207 153 113 1,413
C Low Tension (LTIS)
7 LTIS HP 3,168 3,427 602 619 232 4,416
D Irrigation & Agriculture Service (IAS)
8 IAS HP -
E High Tension (HTS)
9 HTS 11 kV kVA 27,972 29,908 2,502 6,360 4,000 34,770
10 HTS 33 kV kVA 43,726 40,666 1,667 7,900 7,600 42,633
E High Tension Special (HTSS)
11 HTSS 11 kV kVA 1,350 1,600 - 200 200 1,600
12 HTSS 33 kV kVA 1,500 2,500 2,000 - 4,500
-
Total 80,799 82,150 7,157 18,607 12,654 95,260
Annexure E Nov 2011 Page 7-95
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure E: Power Purchase Bills for FY 2010-11 and FY 2011-12 H1
Annexure F Nov 2011 Page 7-96
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure F : Debit/Credit Notes Raised by Tata Steel and DVC
Annexure G Nov 2011 Page 7-97
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure G : Annual Audited Accounts for FY 2011-12
Annexure H Nov 2011 Page 7-98
Petition for True-up FY11, APR FY12 and ARR & Tariff Petition for FY2012-13
Annexure H: Miscellaneous Charges Schedule
Number of
ConsumersConsumption
Contract
demand /
Connected
Load
Fixed Charge Energy Charge Minimum
Charge
Revenue from
Fixed Charge
Revenue from
Energy Charge
Revenue from
Minimum
Charge
Rebate Other Charges Total RevenueShare in total
revenue
Average
revenue
Nos Units KW/BHP/KVA
Rs/KW
Rs/KVA
Rs/BHP
Rs/Month/
connection
Rs/KWH
Rs/KVAH
Rs/month/
connection
Rs/KW/
month
Rs/BHP/
month
Rs/KVA/
month
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)% age Rs/KWH
1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-
12+13)15 16
1 Domestic
DS-I (a), Kutir Jyoti (Unmetered)
DS-I (b), <= 2 KW
DS-II, < = 4 KW -Total 13 56,493 44 - 3.80 91.45 - 0.37 95.62 0.01% 1.69
0-200 39,545 25.00 1.50 20.00
201 & Above 16,948 30.00 1.90 20.00
DS- III, Above 4 KW 72 7,68,490 804 50.00 1.90 40.00 35.37 1,376.24 - (4.93) 1,406.68 0.15% 1.83
DS HT 9 30,64,823 1,229 40.00 1.65 30.00 634.09 4,830.85 - 0.64 5,465.58 0.56% 1.78
Domestic - Total 94 38,89,805 - 673.25 6,298.55 (3.92) 6,967.89 0.72% 1.79
0.00%
2 Non Domestic 0.00%
NDS-I,<= 2 KW - 0.00%
NDS-I unmetered - - - 0.00%
NDS-II, >2 KW to 4 KW 99 12,05,551 1,006 110.00 3.95 100.00 1,083.13 4,564.94 - 4.01 5,652.08 0.58% 4.69
Non Domestic - Total 99 12,05,551 1,083.13 4,564.94 4.01 5,652.08 0.58% 4.69
0.00%
3 Low Tension 0.00%
LTIS-I 51 36,84,129 3,168 75.00 3.50 60.00 2,459.54 12,894.21 (112.02) 783.80 16,025.52 1.66% 4.35
PWW LT
Low Tension - Total 51 36,84,129 - 2,459.54 12,894.21 (112.02) 783.80 16,025.52 1.66% 4.35
0.00%
4 Irrigation & Agricultural 0.00%
IAS- I 0.00%
IAS - I Unmetered 0.00%
IAS- II 0.00%
Agriculture - IAS - II (Unmetered) 0.00%
Irrigation & Agricultural - Total 0.00%
0.00%
5 High Tension Service 0.00%
HTS 0.00%
11 KV 105 8,71,74,823 27,972 165.00 4.35 250.00 45,265.13 3,67,435.33 377.70 (5,437.00) 4,670.83 4,12,311.99 42.60% 4.73
33 KV 13 10,44,86,580 43,726 165.00 4.35 250.00 65,735.34 4,39,663.81 1,465.07 (23,077.75) 3,958.01 4,87,744.46 50.40% 4.67
132 KV 0.00%
Sub Total - HTS 118 19,16,61,403 1,11,000.46 8,07,099.14 1,842.76 (28,514.75) 8,628.84 9,00,056.45 93.00% 4.70
0.00%
6 HT Special S 0.00%
11 KV 2 56,44,180 1,350 330.00 2.50 250.00 5,534.75 14,043.60 (258.56) 148.15 19,467.94 2.01% 3.45
33 KV 1 59,48,125 1,500 330.00 2.50 250.00 6,177.28 14,451.70 (772.86) (226.52) 19,629.60 2.03% 3.30
132 KV
Sub Total - HT Special S 3 1,15,92,305 11,712.03 28,495.30 (1,031.42) (78.37) 39,097.54 4.04% 3.37
High Tension - Total
7 Traction
RTS
RTS - Total
8 Street Light Service
SS-I
SS - II
Street Light Service - Total
9 MES
Total - Within State 365 21,20,33,193 - - 1,26,928.41 8,59,352.13 1,842.76 (29,658.20) 9,334.37 9,67,799.48 100.00% 4.56
Revenue from Tariff FY 2010-11
Sl. Consumer Category
Number of
ConsumersConsumption
Contract
demand /
Connected
Load
Fixed
Charge
Energy
Charge Minimum Charge
Revenue from
Fixed Charge
Revenue from
Energy Charge
Revenue from
Minimum
Charge
Rebate Other Charges Total RevenueShare in total
revenue
Average
revenue
Nos Units KW/BHP/KVA
Rs/KW
Rs/KVA
Rs/BHP
Rs/Month/
connection
Rs/KWH
Rs/KVAH
Rs/month/
connection
Rs/KW/ month
Rs/BHP/ month
Rs/KVA/ month
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)% age Rs/KWH
1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-
12+13)15 16
1 Domestic
DS-I (a), Kutir Jyoti (Unmetered)
DS-I (b), <= 2 KW
DS-II, < = 4 KW -Total 15 36,005 53 - - 2.47 63.02 - 0.28 65.77 0.01% 1.83 0-200 36,005 53 25.00 1.50 2.47 63.02 65.49 0.01% 1.82 201 & Above - - 30.00 1.90 - - - 0.00% -
DS- III, Above 4 KW 79 5,06,965 851 50.00 1.90 23.10 963.23 - 1.32 987.66 0.17% 1.95 DS HT 11 17,55,240 1,979 40.00 1.65 503.70 2,896.15 - 1.10 3,400.95 0.58% 1.94 Domestic - Total 105 22,98,209 2,883 529.27 3,922.40 2.70 4,454.37 0.76% 1.94
0.00%
2 Non Domestic 0.00%NDS-I,<= 2 KW 0.00%NDS-I unmetered 0.00%NDS-II, >2 KW to 75 KW 117 8,61,518 1,166 110.00 3.95 738.65 3,410.89 - 2.01 4,151.55 0.71% 4.82 Non Domestic - Total 117 8,61,518 1,166 738.65 3,410.89 2.01 4,151.55 0.71% 4.82
0.00%
3 Low Tension 0.00%LTIS-I 56 21,71,579 3,427 75.00 3.50 1,568.87 7,600.51 (59.16) 409.52 9,519.74 1.62% 4.38 PWW LT 0.00%Low Tension - Total 56 21,71,579 3,427 1,568.87 7,600.51 (59.16) 409.52 9,519.74 1.62% 4.38
0.00%
4 Irrigation & Agricultural 0.00%IAS- I 0.00%IAS - I Unmetered 0.00%IAS- II 0.00%Agriculture - IAS - II (Unmetered) 0.00%Irrigation & Agricultural - Total - 0.00%
0.00%
5 High Tension Service 0.00%
HTS 0.00%11 KV 106 5,13,06,265 29,908 165.00 4.35 27,391.74 2,23,102.56 (3,365.95) 2,094.36 2,49,222.72 42.49% 4.86 33 KV 13 6,05,96,424 40,666 165.00 4.35 39,041.27 2,63,594.45 (11,493.53) 2,053.43 2,93,195.61 49.99% 4.84 132 KV 0.00%Sub Total - HTS 119 11,19,02,690 70,574 66,433.01 4,86,697.01 (14,859.48) 4,147.80 5,42,418.33 92.47% 4.85
0.00%
6 HT Special S 0.00%11 KV 2 39,05,220 1,600 330 2.50 3,216.55 9,763.05 (213.68) - 12,765.93 2.18% 3.27 33 KV 1 35,70,270 2,500 330 2.50 4,757.21 8,925.68 (401.87) (24.05) 13,256.96 2.26% 3.71 132 KV 0.00%Sub Total - HT Special S 3 74,75,490 4,100 7,973.76 18,688.73 (615.55) (24.05) 26,022.88 4.44% 3.48 High Tension - Total
7 Traction
RTS
RTS - Total
8 Street Light Service
SS-I
SS - II
Street Light Service - Total
9 MES
Total - Within State 400 12,47,09,486 82,150 77,243.56 5,20,319.54 (15,534.19) 4,537.98 5,86,566.88 100.00% 4.70
Revenue from Tariff FY 2011-12 (H1)
Sl. Consumer Category
Number of
ConsumersConsumption
Contract
demand /
Connected
Load
Fixed ChargeEnergy
Charge Minimum Charge
Revenue from
Fixed Charge
Revenue from
Energy Charge
Revenue from
Minimum ChargeRebate Other Charges Total Revenue
Share in
total
revenue
Average
revenue
Nos UnitsKW/BHP/KV
A
Rs/KW
Rs/KVA
Rs/BHP
Rs/Month/
connection
Rs/KWH
Rs/KVAH
Rs/month/
connection
Rs/KW/ month
Rs/BHP/ month
Rs/KVA/ month
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)% age Rs/KWH
1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-
12+13)15 16
1Domestic
DS-I (a), Kutir Jyoti (Unmetered)
DS-I (b), <= 2 KW
DS-II, < = 4 KW -Total 35 43,108 74 5.88 75.01 - 0.33 81.22 0.01% 1.88 0-200 14 17,243 30 25 1.50 2.10 25.86 27.96 0.00% 1.62 201 & Above 21 25,865 44 30 1.90 3.78 49.14 52.92 0.01% 2.05
DS- III, Above 4 KW 87 5,50,374 998 50 1.90 26.10 1,045.71 - 1.44 1,073.25 0.17% 1.95 DS HT 18 30,29,018 4,856 40 1.65 1,165.44 4,997.88 - 1.90 6,165.22 1.00% 2.04 Domestic - Total 140 36,22,500 5,928 1,197.42 6,118.60 3.67 7,319.35 1.19% 2.02
0
2 Non Domestic 0NDS-I,<= 2 KW 0.00%NDS-I unmetered 0NDS-II, >2 KW to 75 KW 155 8,98,500 1,413 110 3.95 932.58 3,549.08 - 2.10 4,483.75 0.73% 4.99 Non Domestic - Total 155 8,98,500 1,413 932.58 3,549.08 2.10 4,483.75 0.73% 4.99
0
3 Low Tension 0LTIS-I 77 23,26,656 4,416 75 3.50 1,987.24 8,143.29 (65.36) 438.77 10,503.94 1.71% 4.51 PWW LT 0Low Tension - Total 77 23,26,656 4,416 1,987.24 8,143.29 (65.36) 438.77 10,503.94 1.71% 4.51
0
4 Irrigation & Agricultural 0IAS- I 0IAS - I Unmetered 0IAS- II 0.00%Agriculture - IAS - II (Unmetered) 0Irrigation & Agricultural - Total 0.00%
0
5 High Tension Service 0HTS 0
0PWW 11 KV 0PWW 33 KV 011 KV 132 5,42,10,159 34,770 165 4.35 30,980.07 2,35,814.19 (3,584.98) 2,212.90 2,65,422.19 43.15% 4.90 33 KV 15 6,12,87,204 42,633 165 4.35 37,986.00 2,66,599.34 (11,567.58) 2,076.84 2,95,094.60 47.98% 4.81 132 KV 0Sub Total - HTS 147 11,54,97,363 77,403 68,966.07 5,02,413.53 (15,152.55) 4,289.74 5,60,516.79 91.13% 4.85
0
6 HT Special S 011 KV 2 39,02,547 1,600 330 2.50 2,851.20 9,756.37 (207.55) - 12,400.01 2.02% 3.18 33 KV 2 49,94,957 4,500 330 2.50 8,019.00 12,487.39 (602.28) (33.65) 19,870.46 3.23% 3.98 132 KV 0Sub Total - HT Special S 4 88,97,504 6,100 10,870.20 22,243.76 (809.83) (33.65) 32,270.48 5.25% 3.63 High Tension - Total
7 Traction
RTS
RTS - Total
8 Street Light Service
SS-I
SS - II
Street Light Service - Total
9 MES
Total - Within State 523 13,12,42,523 95,260 83,953.51 5,42,468.26 (16,027.75) 4,700.62 6,15,094.32 100.00% 4.69
Revenue from Tariff FY 2011-12 (H2)
Sl. Consumer Category
Number of
ConsumersConsumption
Contract
demand /
Connected
Load
Fixed
Charge
Energy
Charge Minimum Charge
Revenue from
Fixed Charge
Revenue from
Energy Charge
Revenue from
Minimum
Charge
Rebate Other Charges Total RevenueShare in total
revenue
Average
revenue
Nos Units KW/BHP/KVA
Rs/KW
Rs/KVA
Rs/BHP
Rs/Month/
connection
Rs/KWH
Rs/KVAH
Rs/month/
connection
Rs/KW/ month
Rs/BHP/ month
Rs/KVA/ month
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)% age Rs/KWH
1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-
12+13)15 16
1 Domestic
DS-I (a), Kutir Jyoti (Unmetered) - - - 0 0 0 0 0 0
DS-I (b), <= 2 KW - - - 0 0.00 0 0 0 0 0 0
DS-II, < = 4 KW -Total 35 79,113 74 0 0 8.35 138.03 - - 0.60 146.98 0.01% 1.86
0-200 14 53,248 83 25 1.50 4.57 88.89 - - - 93.46 0.01% 1.76
201 & Above 21 25,865 44 30 1.90 3.78 49.14 - - - 52.92 0.00% 2.05
DS- III, Above 4 KW 87 10,57,338 998 50 1.90 49.20 2,008.94 - - 2.76 2,060.90 0.17% 1.95
DS HT 18 47,84,258 4,856 40 1.65 1,669.14 7,894.03 - - 3.00 9,566.16 0.80% 2.00
Domestic - Total 140 59,20,710 5,928 0 0 1,726.69 10,041.00 - - 6.36 11,773.72 0.98% 1.99
- - - 0 0 - - - - - -
2 Non Domestic - - - 0 0 - - - - - -
NDS-I,<= 2 KW - - - 0 0.00 - - - - - -
NDS-I unmetered - - - 0 0.00 - - - - - -
NDS-II, >2 KW to 75 KW 155 17,60,018 1,413 110 3.95 1,671.23 6,959.97 - - 4.11 8,635.31 0.72% 4.91
Non Domestic - Total 155 17,60,018 1,413 0 0 1,671.23 6,959.97 - - 4.11 8,635.31 0.72% 4.91
- - - 0 0 - - - - - -
3 Low Tension - - - 0 0 - - - - - -
LTIS-I 77 44,98,235 4,416 75 3.50 3,556.11 15,743.81 - (124.52) 848.29 20,023.68 1.67% 4.45
PWW LT - - - 0 0.00 - - - - - -
Low Tension - Total 77 44,98,235 4,416 0 0 3,556.11 15,743.81 - (124.52) 848.29 20,023.68 1.67% 4.45
- - - 0 0 - - - - - -
4 Irrigation & Agricultural - - - 0 0 - - - - - -
IAS- I - - - 0 0.00 - - - - - -
IAS - I Unmetered - - - 0 0.00 - - - - - -
IAS- II - - - 0 0.00 - - - - - -
Agriculture - IAS - II (Unmetered) - - - 0 0.00 - - - - - -
Irrigation & Agricultural - Total - - - 0 0 - - - - - -
- - - 0 0 - - - - - -
5 High Tension Service - - - 0 0 - - - - - -
HTS - - - 0 0 - - - - - -
Railway 11 KV -
PWW 11 KV -
PWW 33 KV -
11 KV 132 10,55,16,425 34,770 165 4.35 58,371.81 4,58,916.76 - (6,950.93) 4,307.27 5,14,644.91 42.83% 4.88
33 KV 15 12,18,83,628 42,633 165 4.35 77,027.27 5,30,193.78 - (23,061.11) 4,130.27 5,88,290.22 48.96% 4.83
132 KV - - - 0 0.00 - - - - - -
Sub Total - HTS 147 22,74,00,053 77,403 0 0 1,35,399.08 9,89,110.54 - (30,012.04) 8,437.54 11,02,935.13 91.78% 4.85
- - - 0 0 - - - - - -
6 HT Special S - - - 0 0 - - - - - -
11 KV 2 78,07,767 1,600 330 2.50 6,067.75 19,519.42 - (421.23) - 25,165.94 2.09% 3.22
33 KV 2 85,65,227 4,500 330 2.50 12,776.21 21,413.07 - (1,004.15) (57.70) 33,127.42 2.76% 3.87
132 KV - - - 0 0.00 - - - - - -
Sub Total - HT Special S 4 1,63,72,994 6,100 0 0 18,843.96 40,932.48 - (1,425.38) (57.70) 58,293.36 4.85% 3.56
High Tension - Total - - - 0 0 - - - - - -
- - - 0 0 - - - - - -
7 Traction - - - 0 0 - - - - - -
RTS - - - 0 0.00 - - - - - -
RTS - Total - - - 0 0 - - - - - -
- - - 0 0 - - - - - -
8 Street Light Service - - - 0 0 - - - - - -
SS-I - - - 0 0.00 - - - - - -
SS - II - - - 0 0.00 - - - - - -
Street Light Service - Total - - - 0 0 - - - - - -
- - - 0 0 - - - - - -
9 MES - - - 0 0.00 - - - - - -
Total - Within State 523 25,59,52,009 95,260 0 0 1,61,197.07 10,62,787.80 - (31,561.94) 9,238.60 12,01,661 100.00% 4.69
Revenue from Tariff FY 2011-12
Sl. Consumer Category
Number of
ConsumersConsumption
Contract
demand /
Connected
Load
Fixed
Charge
Energy
Charge
Minimum
Charge
Revenue from
Fixed Charge
Revenue from
Energy Charge
Revenue from
Minimum
Charge
Rebate Other Charges Total RevenueShare in total
revenue
Average
revenue
Nos Units KW/BHP/KVA
Rs/KW
Rs/KVA
Rs/BHP
Rs/Month/
connection
Rs/KWH
Rs/KVAH
Rs/month/
connection
Rs/KW/
month
Rs/BHP/
month
Rs/KVA/
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)
Rs. Thousand
(Yearly)% age Rs/KWH
1 2 3 4 5 6 7 8 9 10 11 12 1314= (9+10+11-
12+13)15 16
1 Domestic
DS-I (a), Kutir Jyoti (Unmetered)
DS-I (b), <= 2 KW 100 1,20,000 100 0 1.10 - 132.00 132.00 0.01% 1.10 DS-II, < = 4 KW -Total 65 1,14,956 108 0 22.00 200.02 - 0.88 222.90 0.02% 1.94
0-200 26 45,983 25 1.50 7.86 68.97 0.35 77.18 0.01% 1.68 201 & Above 39 68,974 30 1.90 14.14 131.05 0.53 145.72 0.01% 2.11
DS- III, Above 4 KW 105 12,38,789 1,170 50 1.90 62.86 2,353.70 - 3.24 2,419.79 0.17% 1.95 DS HT 23 71,71,476 7,284 40 1.65 3,496.32 11,832.93 - 4.49 15,333.75 1.11% 2.14 Domestic - Total 194 86,45,221 8,562 0 3,581 14,519 8.61 18,108 1.31% 2.09
0
2 Non Domestic 0NDS-I,<= 2 KW 0.00 NDS-I unmetered 0.00 NDS-II, >2 KW to 75 KW 238 23,94,256 1,924 110 3.95 2,539.02 9,457.31 - 5.59 12,001.92 0.87% 5.01 Non Domestic - Total 238 23,94,256 1,924 0 2,539.02 9,457.31 5.59 12,001.92 0.87% 5.01
0
3 Low Tension 0LTIS-I 118 60,13,001 5,907 75 3.50 5,316.51 21,045.50 (168.92) 1,133.95 27,327.05 1.98% 4.54 PWW LT 0 0.00 Low Tension - Total 118 60,13,001 5,907 0 0 5,316.51 21,045.50 (168.92) 1,133.95 27,327.05 1.98% 4.54
0 0
4 Irrigation & Agricultural 0 0IAS- I 0 0.00 IAS - I Unmetered 0 0.00 IAS- II 0 0.00 Agriculture - IAS - II (Unmetered) 0 0.00 Irrigation & Agricultural - Total 0 0
0 0
5 High Tension Service 0 0HTS 0 0Railway 11 KV - - 0 0 - - - PWW 11 KV 0 0.00 PWW 33 KV 0 0.00 11 KV 166 12,70,12,335 41,882 165 4.35 74,633.81 5,52,503.66 (8,399.47) 5,184.75 6,23,922.74 45.12% 4.91 33 KV 18 13,80,40,231 48,317 165 4.35 43,050.80 6,00,475.00 (26,054.23) 4,677.77 6,22,149.35 44.99% 4.51 132 KV 0 0.00 Sub Total - HTS 184 26,50,52,566 0 0 1,17,684.61 11,52,978.66 (34,453.69) 9,862.52 12,46,072.09 90.11% 4.70
0 0
6 HT Special S 0 011 KV 3 78,02,423 1,600 330 2.50 5,702.40 19,506.06 (414.97) - 24,793.49 1.79% 3.18 33 KV 3 1,28,39,046 6,750 330 2.50 24,057.00 32,097.62 (1,548.10) (86.49) 54,520.02 3.94% 4.25 132 KV 0 0.00 Sub Total - HT Special S 6 2,06,41,469 0 0 29,759.40 51,603.67 (1,963.07) (86.49) 79,313.52 5.74% 3.84 High Tension - Total 28,56,94,034.81 0 0 13,25,385.61
0 0
7 Traction 0 0RTS 0 0.00 RTS - Total 0 0
0 0
8 Street Light Service 0 0SS-I 0 0.00 SS - II 0 0.00 Street Light Service - Total 0 0
0 0
9 MES 0 0.00
0 0
Total - Within State 738 30,27,46,512 0 0 158881 1249604 (36,585.68) 10924 1382823 100.00% 4.57
Revenue from Tariff FY 2012-13 (Existing)
Sl. Consumer Category
Rs. Lacs Rs. Lacs Rs. Lacs
1 Meter Rent 6.68 7.31 7.31
2 Delayed Payment Surcharge 4.43 14.53 14.53
3 Miscellaneous Charges 7.17 2.39 2.39
4 Supervision Charges 1.99 1.49 1.49
TOTAL 20.27 25.72 25.72
Jamshedpur Utilities & Services Company Ltd.
Revenue from Non - Tariff Income
ParticularSl.FY 2010-11
(Actual)
FY 2011-12
(Provisional)
FY 2012-13
(Projected)
ARR Formats - ARR and Tariff Petition FY 2011-12
FY 2010-11 FY 2011-12 FY 2012-13
Actual Provisional Projected
Energy Sales
LT Supply 8,779 12,179 17,052
HT Supply - 2,43,773 2,85,694
Total Energy Sales 8,779 2,55,952 3,02,747
Overall Distribution Losses % 1.65% 2.16% 3.50%
Overall Distribution Losses 4 6 11
Total Energy Requirement 2,15,587 2,61,593 3,13,727
Power Purchase
Open Access/Others/Traders 6,272 - -
DVC 3,385 65,073 81,906
RPO - 5,232 9,408
Solar - 654 1,568
Non-Solar - 4,578 7,840
- From Tata Steel Ltd (A) 2,05,930 1,91,289 1,95,114
132 kV 1,71,405 1,90,116 1,93,918
33 kV 33,139 - -
6.6 kV 1,386 1,173 1,196 - - -
Total Energy Availability (A+B) 2,15,587 2,61,593 3,13,603
ENERGY Availability
ENERGY REQUIREMENT
Particulars
Energy Balance (000' Units)
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
FY 2010-11 FY 2011-12 FY 2012-13
Actual Provisional Projected
Salaries & AllowancesSalary (Basic) 83.10 109.54 125.51
Special Allowance 30.50 40.20 46.06
Wages Other Charges 43.03 56.72 64.99
House Rent Allowance 8.99 11.85 13.58
Conveyance Allowance 7.75 10.22 11.71
Reimb.- Chauffeur 2.89 3.80 4.36
Leave Travel Assistance 4.45 5.87 6.72
Leave Salary 11.36 14.97 17.16
Superannuation Fund 12.31 16.23 18.59
Contribution to Provident fund 10.34 13.63 15.61
Contribution to TEPS 0.00 0.00 0.00
Gratuity 9.28 12.23 14.02
Medical Expenses 0.81 1.07 1.22
Other, if any (Employee benefit AS-15) 6.51 8.59 9.84
Employee Costs (Direct) 231.32 304.93 349.38
Common Cost of JUSCO 130.90 144.40 159.29
Gross Employee Cost 362.22 449.33 508.67
Less: Expenses Capitalised 0.00 0.00 0.00
Net Employee Cost 362.22 449.33 508.67
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
Employee Cost (Rs in Lacs)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Actual Provisional ProjectedPlant & Machinery 117.74 8.63 177.17
Civil Works 5.15 82.07 7.75
Office Equipment 3.15 60.56 4.74
Total R&M Costs 126.05 151.26 189.67
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
R&M Expenses (Rs in Lacs)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Actual Provisional ProjectedLegal & Regulatory Charges 21.89 24.15 26.64
Consultancy Charges/ Retainer Fees 31.02 34.22 37.75
Travelling Expenses 15.57 17.18 18.95
Printing & Stationary 0.21 0.23 0.25
Donation 0.15 0.17 0.18
Advertisement 10.94 12.07 13.32
Office Maintenance 0.00 5.51 6.08
Telephone & Mobile Expenses 4.31 4.76 5.25
Fee & Subscription 0.00 0.00 0.00
Insurance Premium 6.96 7.68 8.48
Entertainment 0.00 0.00 0.00
Pvt Security Guards/ Home Guards 11.87 13.09 14.45
Miscellaneous Expenses 2.66 2.93 3.23
Training 0.00 0.00 0.00
0 0.00 0.00 0.00
Vehicle Hire Expenses 1.87 2.06 2.28
Rent, Rates & Taxes 26.84 29.61 32.67
Expenses on CGRF 0.00 0.00 0.00
Surcharge on Electricity Duty 36.49 11.10 0.00
Software Development 34.37 37.91 41.82
Total A&G Costs (Direct) 205.16 202.68 211.33
Common Cost of JUSCO 141.69 98.19 108.32
GROSS A&G COST 346.84 300.87 319.65
Less: A&G Expenses capitalised 0.00 0.00 0.00
NET A&G COST 346.84 300.87 319.65
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
A&G Expenses (Rs in Lacs)
Particulars
1 Power Purchase Cost 6,356 8,381 11,052
2 Operation & Maintenance Expenses 835 901 1,018
2.1 Employee Cost 362 449 509
2.2 Repairs & Maintenance Expenses 126 151 190
2.3 Administration & General Expenses 347 301 320
3 Depreciation 441 459 534
4 Interest and Finance Charges 599 761 1,008
5 DSM & CGRF Expenses 46 46
6 Income Tax 202 - -
7 Sub Total 8,434 10,548 13,658
8 Add: Reasonable Return 301 601 777
9 Total Expenditure 8,735 11,150 14,435
10 Less: Non Tariff Income 20 26 26
11 Aggregate Revenue Requirement 8,715 11,123.9 14,409
12 Revenue from Sale of Power @ Existing Tariff 9,678 12,017 13,828
13 Sharing of Gains 194 -
14 Revenue Gap / (Surplus) (769) (893) 581
15 Previous Year Gap/(Surplus) 728 (41) (934)
16 Net Revenue Gap/(Surplus) (41) (934) (353)
Power Sale (Mus) 212.03 255.95 302.63
16 Average Cost of Supply 4.11 4.35 4.76
Sr. No. Particulars (Costs in Rupees Lacs)2012-13
(Projected)
FY 2010-11
(Actual)
2011-12 -
Total
ParticularsFY 2010-11
(Actual)
2011-12 -
Total
2012-13
(Projected)
Opening Balance 2,093 2,213 3,029
Add: Deemed Additions 119 816 714
Closing Balance 2,213 3,029 3,743
Average Equity Base 2,153 2,621 3,386
Rate of Return 14.00% 15.50% 15.50%
Income Tax Rate 33.22% 32.45% 32.45%
Return on Equity 301 601.3 777
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12 ( Rs in lakhs)
Rs in lakhs
Particulars
Approved Audited
Costs
Power Purchase Cost 6,364.0 6,356.4
O&M Expenses 780.2 835.1
Employee Costs 347.6 362.2
R&M Expenses 126.0 126.0
A&G Expenses 306.6 346.8
Depreciation 429.0 441.4
Interest & Finance Charges 608.0 599.0
Income Tax 203.2 202.0
Total Costs 8,384.4 8,434.0
Add: Reasonable Return 297.0 301.4
Less: Non-Tariff Income 20.0 20.3
Annual Revenue Requirement 8,661.4 8,715.1
Add: Sharing of Gains till FY 2010-11 - 194.1
Revenue at Existing Tariff 9,680.0 9,678.0
Past Year Gaps /(Surplus)* 728.0 728.0
Net Revenue Gap/(Surplus) including past year gap292.0 (40.8)
Energy Sales in Million Units 212.0 212.0
Cost of Supply 4.1 4.1
FY 2010-11
ARR Formats - ARR and Tariff Petition FY 2011-12
Jamshedpur Utilities & Services Company Ltd.
Energy Unit
(Million
Units)
Rs in lakhs Rs/Unit
Energy Unit
(Million
Units)
Rs in lakhs Rs/UnitEnergy Unit
(000 Units)Rs in lakhs Rs/Unit
Tata Steel Limited
132 KV 171.40 4,987.88 2.91 190.12 5,551.38 2.92 193.92 5,945.53 3.07
33 KV 33.14 964.35 2.91 - - - -
6.6 KV 1.39 40.33 2.91 1.17 34.24 2.92 1.20 36.67 3.07
RPO Purchases - - 5.23 326.86 6.25 9.41 626.89 6.66
DVC at 33 kV 3.39 119.42 3.53 65.07 2,468.17 3.79 81.91 3,288.17 4.01
Others / Traders 6.27 244.42 3.90 - - 27.17 1,154.91
Total 215.59 6,356.41 2.95 261.59 8,380.65 3.20 313.60 11,052.17 3.52
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
At the
begining
of the year
Addition
During the
year
Deduction
During the
year
At the end
of year
Accumulated
Depn as on
01.04.2009
Depreciation
for FY 2009-10
Accumulated
Depn as on
31.03.2010
At the
begining
of the
year
Addition
During the
year
Deduction
During the
year
At the end
of year
Accumulated
Depn as on
01.04.2010
Depreciation
for FY 2010-
11
Accumulated
Depn as on
31.03.2011
At the
begining of
the year
Addition
During the
year
Deduction
During the
year
At the end
of year
Accumulated
Depn as on
01.04.2010
Depreciation
for FY 2010-
11
Accumulated
Depn as on
31.03.2011
1 Land Devlopment 13.02 24.53 0.81 37.55 - - - 37.55 3.06 - 40.60 - - - 40.60 9.16 - 49.76 - - -
2 Offices & Showroom 537.14 12.77 11.82 549.91 26.12 16.41 42.54 549.91 44.76 - 594.66 42.54 17.28 59.82 594.66 134.15 - 728.82 59.82 19.98 79.81
3 Other Buildings 19.59 - 0.43 19.59 0.44 0.59 1.03 19.59 1.59 - 21.18 1.03 0.62 1.65 21.18 4.78 - 25.96 1.65 0.71 2.36
4 Transformers 774.73 374.53 24.71 1,149.26 106.29 75.13 181.42 1,149.26 93.54 - 1,242.80 181.42 93.41 274.83 1,242.80 280.36 - 1,523.16 274.83 108.01 382.85
5 Switchgear including cable connections 2,515.05 57.28 55.31 2,572.33 295.01 199.43 494.43 2,572.33 209.36 - 2,781.70 494.43 209.88 704.31 2,781.70 627.53 - 3,409.22 704.31 242.68 947.00
6 Underground CABLE 2,564.43 169.47 58.78 2,733.90 155.25 139.61 294.86 2,733.90 222.51 - 2,956.41 294.86 149.94 444.80 2,956.41 666.94 - 3,623.35 444.80 173.38 618.18
7 Overhead Lines < 6.6kv (LT) 104.25 27.44 2.83 131.69 5.68 9.25 14.92 131.69 10.72 - 142.41 14.92 10.75 25.67 142.41 32.13 - 174.54 25.67 12.42 38.09
8 Overhead Lines > 6.6kv 2,086.42 81.92 46.62 2,168.35 160.69 112.11 272.80 2,168.35 176.48 - 2,344.83 272.80 118.92 391.73 2,344.83 528.97 - 2,873.80 391.73 137.51 529.24
9 Meters 32.13 2.59 0.75 34.72 3.75 4.27 8.02 34.72 2.83 - 37.55 8.02 4.61 12.63 37.55 8.47 - 46.02 12.63 5.34 17.97
10 Self propelled vehicles 2.88 5.25 0.17 8.13 2.59 1.84 4.43 8.13 0.66 - 8.80 4.43 2.83 7.26 8.80 1.98 - 10.78 7.26 3.27 10.53
11 Air conditionar (Portable) 6.94 0.15 0.15 7.09 1.68 2.34 4.02 7.09 0.58 - 7.67 4.02 2.46 6.49 7.67 1.73 - 9.40 6.49 2.85 9.34
12 Office furniture & fittings 10.19 2.76 0.28 12.95 1.61 1.48 3.09 12.95 1.05 - 14.01 3.09 1.72 4.81 14.01 3.16 - 17.17 4.81 1.99 6.80
13 Office Equipments 73.04 2.97 1.63 76.01 10.18 9.52 19.70 76.01 6.19 - 82.20 19.70 10.10 29.80 82.20 18.54 - 100.74 29.80 11.68 41.48
14 Street Light fittings 0.35 0.01 0.01 0.36 0.06 0.05 0.11 0.36 0.03 - 0.39 0.11 0.05 0.16 0.39 0.09 - 0.48 0.16 0.06 0.21
15 Communication System 1.27 5.09 0.14 6.36 0.15 0.49 0.64 6.36 0.52 - 6.88 0.64 0.85 1.48 6.88 1.55 - 8.43 1.48 0.98 2.46
16 Data Processing Machine 21.64 1.12 0.49 22.77 3.81 2.84 6.65 22.77 1.85 - 24.62 6.65 3.03 9.67 24.62 5.55 - 30.17 9.67 3.50 13.17
17 Software 154.62 33.64 4.05 188.25 6.77 15.43 22.20 188.25 15.32 - 203.58 22.20 17.63 39.83 203.58 45.93 - 249.50 39.83 20.39 60.22
18 Other Assets 155.29 3.74 3.42 159.02 19.94 0.48 20.42 159.02 12.94 - 171.97 20.42 - 20.42 171.97 38.79 - 210.76 20.42 - 20.42
Total 9,072.99 805.26 212.40 9,878.25 800.03 591.26 1,391.29 9,878.25 804.00 - 10,682.25 1,391.29 644.07 2,035.36 10,682.25 2,409.82 - 13,092.07 2,035.36 744.75 2,780.11
Sr. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Gross Fixed Assets Depreciation Gross Fixed Assets Depreciation Gross Fixed Assets Depreciation
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12 ( Rs in lakhs)
Rs in Lakhs
Balance at
the
beginning
of the
year
Additions
during the
Year
Transfer
to Capital
Reserve
Balance at
the end of
the Year
Additions
during the
Year
Transfer
to Capital
Reserve
Balance at
the end of
the Year
Additions
during the
Year
Transfer
to Capital
Reserve
Balance at
the end of
the Year
1Consumer Contribution towards Cost
of Capital asset280.02 518.71 663.71 135.02 570.58 586.32 119.28 627.64 615.64 131.28
Sr
NoParticulars
2010-11 2011-12 2012-13
Actual
Working
Strength at
the End of
Year
Actual
Working
Strength at
the End of
H1 of FY
Expected
Working
Strength at
the End of
Year
Expected
Working
Strength at
the End of
Year
Direct/ Full Time Employees
1 Chief/DGM 3 3 3 3
2 Senior Manager 5 6 6 8
3 Manager 12 12 12 16
4 Deputy Manager 9 8 12 16
5 Others 17 27 27 30
6 Sub Total 46 56 60 73
-
In-direct/ Part Time Employees/Outsourced* -
-
1 Other 7 12 12 12
2 Total 53 68 72 85
* Others Outsourced is not included in wages
FY 2012-13
Sl.No Particulars
FY 2010-11 FY 2011-12
Rs. Lacs
FY 2011-12
(Prov)
FY 2012-13 FY 2013-14
Ongoing Schemes (A)
1 132kV Line from DVC Chandil Substation 1,000 1,000 3,333 386 2,100 429 Major changes in scope. 3.5km overhead line is not possible due ROW issue, to be taken
through 132KV underground cable.
2 33 kV Overhead Line from Gamhari to Seraikela 325 325 325 95.00 207.84 - Progressing very slow due to major ROW issue from land owner.
3 11kV Overhead line for secondary distribution 135 135 135 48 77 - Details as per annexure-A
4 11/.433 V Distribution Transformers 168 168 168 86 59 Details as per annexure-A
5 Land for substations in various blocks of Seraikela-Kharsawan* 100 100 100 50 43 Details as per annexure-A
6 33/11kV substation at Seraikela 247 247 247 - 100 131 Engineering activity & BOM with specification is made ready. Material procurement &
erection to be taken up once 33KV line to seraikela is nearing completion.
7 LDC for distribution system in Seraikela-Kharasawan 400 100 70 6 Completed . Capitalisation in FY11-12
8 Vehicle for Testing Equipment/Staff movement 5 5 5 - Completed
9 Mobile Transformer on Van with trolley and switchgears 10 10 10 10 Finalisation of vendor is in progress.
10 56 MVA Power Transformer 370 370 Completed in FY 2009-10
11 33kV Feeder from TGS to Phase#7 alongwith terminal equipment 205 205 271 243 Delayed due to ROW from PWD for Tata-Kandra road.
12 New 33kV feeder in Large Sector Area. 150 150 150 130 19 Material received. Erection in progress
13 132kV Bay at Chandil with provision of 132/33kV Substation 490 490 490 - 190 300 Scheme have not started due to non availability of land. To be taken up during FY12-13.
14 Low Tension Lines in Adityapur & Gamharia Area. 100 100 100 10 90 In progress
15 High Tension Line in Adityapur & Gamharia Area. 400 400 400 90 176 134 In progress
16 33/11kV Substation in Adityapur Area for AIADA Phase 4 &6 430 430 430 - 344 86 Not started . To be taken up during FY12-13.
17 Augmentation of Transformation Capacity at 132kV/33kV Substation at TGS. 850 850 850 - 595 255 Not started . To be taken up during FY12-13.
18 GIS for New Connection/ power distribution management. 60 60 60 - - 60 To be completed in 12 months
19 Office and storage space in AIADA Phase#2 and Phase#7 substation. 80 80 80 40 40 Civil work has been started.
20 Video Surveillance System at 4 nos. of substation. 3.5 3.5 4 4 Completed
Total - old Schemes (A) 5,529 5,229 7,228 1,197 4,040 1,395
21 Fire Fighting system for 132/33 KV TGS substation 100 - 75 25 To be completed in 12 months from scheme approval.
22 Emergency restoration system in case of failure 132KV Transmission tower 250 - 125 125 To be completed in 12 months from scheme approval.
Total - New Schemes (B) 350 - 200 150
Gross Scheme Cost (A+B) 7,578 1,197 4,240 1,545
Remarks
New Schemes
Sl.
No.
Particulars Original
Scheme Cost
Scheme Cost
submitted
FY2011-12
Revised
Scheme Cost
FY2012-13
Phasing Out
Rs in lakhs
Sr.No. Particulars FY 2010-11
A Current Assets, Loans and Advances
Sundry Debtors 1,034.04
Cash and Bank Balances 0.03
Loans and Advances 225.99
TOTAL OF 'A' 1,260.06
B Current Liabilities and Provisions
Current Liabilities 2,797.71
TOTAL OF 'B' 2,797.71
C NET CURRENT ASSETS (A - B) (1,537.66)
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
1 Return on Equity 301 406 525
2 Income Tax Rate in % 33.22% 32.45% 32.45%
3 Grossing up of RoE {1/(1-2)} 451 601 777
4 Add: Depreciation as per ARR 441 459 534
5 Less: Depreciation as per IT Act (767) (741) (741)
6 Add: Normative Interest on Loan 482 607 810
7 Taxable Income (3+4-5+6) 608 926 1,381
8 Income Tax 202 300 448
Return on Equity
2011-12 -
Provisional
2012-13
(Projected)
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12
Income Tax (Rs in lakhs)
Sl.No. ParticularsFY 2010-
11tual)
Unit Existing Proposed Existing Proposed
DS - I Rs. Per Connection per Month - 20.00 1.10 1.10
DS - II (< 201) Rs. Per Connection per Month 35.00 35.00 1.50 1.50
DS II (> 201) Rs. Per Connection per Month 50.00 50.00 1.90 1.90
DS - III Rs. Per Connection per Month 90.00 90.00 1.90 1.90
DS HT Rs. per kVA per Month 65.00 65.00 1.65 1.65
NDS - I Rs. Per Connection per Month - - 1.35 1.35
NDS - II Rs. per kW per Month 110.00 150.00 3.95 3.95
LTIS Rs. per HP per Month 75.00 110.00 3.50 3.50
IAS (Metered) Not Applicable - - - -
High Tension - - - -
HTS - 11 kV Rs.per kVA per Month 165.00 165.00 4.35 4.35
HTS - 33 kV Rs.per kVA per Month 165.00 165.00 4.35 4.35
HTS - 132 kV Rs.per kVA per Month 165.00 165.00 4.35 4.35
HTSS - 11 kV Rs.per kVA per Month 330.00 330.00 2.50 2.50
HTSS - 33 kV Rs.per kVA per Month 330.00 330.00 2.50 2.50
HTSS - 132 kV Rs.per kVA per Month 330.00 330.00 2.50 2.50
Panchayats, Self Helf Groups.
Micro/Nano DF Not Applicable - - - -
Bulk Supply to MES Rs. per kVA per Month 160.00 - 3.00 3.00
Temporary Supply Not Applicable - - - -
Energe Charge
(Rs./kWh)
Domestic Category
Non-Domestic Category
LT Industrial and Medium Power
Irrigation and Agriculture Services
High Tension Special (Proposed to be Merged in HTS)
Bulk Supply
Jamshedpur Utilities & Services Company Ltd.
ARR Formats - ARR and Tariff Petition FY 2011-12Existing Vs Proposed Tariff
Consumer Category and
Consumption Slabs
Fixed Charge
DeloitteHaskins & Sells
Chartered AccountantsBengal Intelligent ParkBuilding Alpha, 1st FloorBlock - EP& GP,Sector - VSalt Lake Electronics ComplexKolkata - 700 091India
Tel. : +91 (33) 6612 1000Fax: +91 (33) 6612 1001
On the basis of examination of audited books of accounts of Jamshedpur Utilities And Services Company
Limited (tithe Company") for the year ended 31st March, 2011, and according to the information and
explanations given to us by the management, we hereby certify that the information mentioned in
Annexure 1 and 2 (read with the notes thereon) relating to Power Business Division of the Company,
have been extracted frqm such books of accounts and other records maintained by the Company.
This certificate is issued at the request of the Company for onward submission to Jharkhand State
Electricity Regulatory Commission and should not be used for any other purpose.
For Deloitte Haskins & ~elisChartered Accountants(ICAI Registration' No. 302009E)
~6}J~Abhijit BandyopadhyayPartner.Membership No. 054785
Kolkata: ,"-Cp (... November, 2011
JAMSHEDPUR UTILITIES AND SERVICESCOMPANY LIMITEDPOWER BUSINESS DIVISION
STATEMENT OF AFFAIRS AS ON 31ST MARCH 2011
- AS AT AS AT•SCHEDULE 31.03.2011 31.03.2010
Rupees Rupees
SOURCESOF FUNDS:
Capital Employed 508,081,414 485,311,225Capital Contribution 1 250,310,112 209,528,241Defe"rred Tax Liability 51,954,264 40,149,867
TOTAL SOURCESOF FUNDS 810,345,790 734,989,333
APPLICATION OF FUNDS:
FIXEDASSETS 2
>-~ Gross Block 966,628,980 907,300,233Less: Depreciation/amortization 112,518,017 66,424,896Net Block 854,110,963 840,875,337Capital work-in-progress 110,000,388 58,638,896
964,111,351, 899,514,233
CURRENT ASSETS, LOANS & ADVANCESSundry Debtors . 103,403,617 64,532,610Cash & Bank Balances 3,000 441,986Loans and Advances 22,599,000 1,595,534
126,005,617 66,570,130
LESS:CURRENT LIABILITIES & PROVISIONSCurrent Liabilities 3 279,771,178 231,095,030
NET CURRENT ASSETS/ (LIABILITIES) (153,765,561) (164,524,900)
TOTAL APPLICATION OF FUNDS 810,345,790 734,989,333
~NOTES ON BALANCE SHEETAND PROFIT AND LOSS
6 "
ACCOUNT "
For and on behalf ofJamshedpur Utilities and Services Company Limited
rJEDPUR UTILITIES AND SERVICESCOMPANY LIMITEDer f3usiness Division
OFIT & LOSSACCOUNT FORTHE YEAR ENDED ON 31ST MARCH 2011
•• SCHEDULE April to March 11 April to March 10.'Rupees Rupees
INCOME:
I
income from Power Sale 969,116,284 553,729,025
( Units sold 212033192 kwh previous year 126651368 kwh)i Other Income 4 916,123 3,213,927i\TOTAL INCOME 970,032,407 556,942,952
EXPENDITURE:
Purchase of Power 680,587,671 372,525,299~ ating Expenses 5 53,106,871 32,987,900Dl::fJreciation 46,093,121 38,510,931
Less: Transfer from capital contribution 11,089,145 6,981,853Interest paid 11,516,200 7,483,370Administration and General Expenses (Allocation) 27,258,592 18,490,437
TOTAL EXPENDITURE 807,473,310 463,016,084
PROFIT BEFORETAXES . 162,559,097 93,926,868
NOTES ON BALANCE SHEET AND PROFIT AND LOSS6
ACCOUNT
For and on behalf ofJar;;.'\hedpur Utilities and Services Company Limited
/'
~Managing Director
("'
!<.olkoio.. ,,,~/~ovember, 2011
JAMSHEDPUR UTILITIES AND SERVICES COMPANY LIMITED
Power Business Division
SCHEDULE FORMING PART OF STATEMENT OF AFFAIRS
AS AT AS AT
31.03.2011 31.03.2010.Rupees Rupees
SCHEDULE 1: Capital Contribution
Contrbution for Capital expendiure :
Balance as per last year 209,528,241 100,573,178
Add : Amount received during the year. 51,871,016 115,936,916
261,399,257 216,510,094Less: Transfer to Profit and Loss Account 11,089,145 6,981,853
250,310,112 209,528,241
I IAdjustment during Additions During
Depreciation as at For the periodParticulars As at 31.03.2010 the period Apr'10- the Period Apr'10- As at 31.03.2011 As at 31.03.2011 As at 31.03.2011
31.03.2010 Apr'lO-Mar'l1Mar'l1 Mar'l1 ..
I II Rupees II II Rupees II Rupees
"Rupees II Rupees II Rupees II Rupees I
Tangible AssetsLand 2,371,829 2,371,829 2,371,829
Building 30,933,361 94,600 31,027,961 1,081,203 504,342 1,585,545 29,442,416(30,785,174) (148,188) (30,933,361) (579,203) (502,000) (1,081,203) (29,852,159)
Plant and Machinery 864,357,671 53,147,125 917,504,796 62,434,445 42,698,277 105,132,722 812,372,074(687,760,043) (996,530) (177,594,158) (864,357,671) (26,253,321) (36,181,124) (62,434,445 ) (801,923,226)
Furniture & Fixtures and 972,876 248,513 1,221,389 390,285 174,364 564,649 656,740Office Equipments (542,573) (430,303) (972,876) (96,931) (293,354) (390,285) (582,591)
Vehicles 288,245 507,578 795,823 126,107 113,029 239,136 556,687(288,245) (288,245) (82,870) (43,237) (126,107) (162,138)
Intangible AssetsLICENSES 7,758,755 7,758,755 905,188 1,551,751 2,456,939 5,301,816
(7,758,755) (7,758,755) (905,188) (905,188) (6,853,567)
SOFTWARE 2,989,324 2,959,102 5,948,426 1,487,668 1,051,358 2,539,026 3,409,400(2,847,283) (142,04~) (2,989,324) (901,640) (586,028) (1,487,668) (1,501,656)
TOTAL 907,300,232 59,328,747 966,628,979 66,424,896 46,093,121 112,518,017 854,110,962Previous Year (722,223,318) (996,530) (186,073,444) (907,300,232) (27,913,964) (38,510,931) (66,424,896) (840,875,336)
AS AT AS AT
31.03.2011 31.03.2010Rupees Rupees
SCHEDULE 3 : CURRENT LIABILITIES
a) Sundry Creditors 24,579,990 25,695,263b) Other Liabilities 241,688,942 177,397,336c) Advance from customers ( Consumer Contribution) 13,502,246 28,002,431
279,771,178 231,095,030
JAMSHEDPUR UTILITIES AND SERVICESCOMPANY LIMITEDPower Business DivisionSCHEDULE FORMING PART OF STATEMENT OF AFFAIRS
a) Service Income
b) Miscellaneous Income
April to March 11Rupees
717,036
199,087
April to March 10Rupees
2,999,730
214,197
a) Cost of Servicesb) Payments to and Provisions for Employeesc) Consumption ofStores& Sparesd) Repairs and Maintenance expensese) Rentf) Travelling and Conveyance Expensesg) Legal & Professional Feesh) Advertisement & Promotional Expensesi) Rates & Taxes
j) Insurance Chargesk) Other Expenses
916,123
8,721,12123,131,7376,669,926
315,318330,786
1,557,2472,188,9161,094,4502,340,204
696,4776,060,689
4,793,11615,361,5015,673,804
92,34385,670
715,8312,053,092
975,3661,129,086
53,106,871
6. Jamshedpur Utilities and Services Company LimitedPower Business DivisionSchedule Forming part of Balance Sheet and Profit and Loss Account
The accounts has been prepared under the historical cost convention on an accrual
basis in accordance with the Generally Accepted Accounting Principles, Accounting
Standards issued by the Institute of Chartered Accountants of India,as applicable, and
the relevant provisions of the Companies Act, 1956.
Jamshedpur Utilities Services Company Limited ("JUSCO") was incorporated on 25th
August, 2003 under the provisions of the Companies Act, 1956 as a wholly owned
subsidiary of Tata Steel. Under the provisions of Electricity Act 2003, JUSCOwas granted
a parallel distribution license in Dec' 2006 to distribute power by creating its own
distribution network in the revenue district of Seraikela-Kharasawan. The Seraikela-
Kharsawan district of Jharkhand is contiguous to Jamshedpur. Jusco (Power Business
Department) purchases power from Tata Steel and sells it to domestic, industrial and
Commercial LT and HT consumers.
The Financial statement are prepared from the records maintained in the SAP system of
the Company, in which data relating to power business division are maintained in
separate cost centers. Besides directly identifiable expenses recorded in the specific cost
centers, certain common attributable expenses are allocated to power business division
on predefined, consistent and reasonable basis as estimated by the management.
Apart directly attributable expenses to power bU5iness divi9ion, certain common
expenses are allocated on following basis:
Cost of Legal Department, Business Equal among all segments/departmentsStrategy Department, Administration
Department, Corporate Communication
Department and Security Department.
Cost of General Manager - Secretariat Ratio of Turnover&Town Services Department, TPM
6. Jamshedpur Utilities and Services Company LimitedPower Business DivisionSchedule Forming part of Balance Sheet and Profit and Loss Account
I Department, Accounts, M D Secreta riat
i Department
Cost of Human Resource (HR) Department No. of Employees
Cost of Information Technology Number of PCs/ Laptops
Department
Cost of Billing and Collection Department Number of consumers
Cost of GM - PSDOffice Department Equal between Services Division and
Power Business Division
Cost of Procurement Department Value of procurement
. Income is recognized on accrual basis on rendering of services and excludes electricity
duty. /f. Contribution from consumers
Contribution received from consumers towards installation of assets pertaining to
distribution of 'power is credited to capital reserve on capitalization of related assets. An
amount in proportion to the depreciation charge for the year on such assets is
transferred to the profit and loss account.
1. Depreciation on Plant and machinery is provided on straight line basis at the
rates specified in Schedule XIV to the Companies Act, 1956. Intangible Assets are
amortized on straight line basis over the useful life or 5 years which"ever is lower.
2. Vehicle, office equipment and furniture fixture are depreciated on straight line
basis over the estimated useful life of the assets or Schedule XIV rates, whichever is
higher. The details of estimated useful life for each category of assets is as under:
Assets Useful life
Vehicle 6.67 years
Office equipment 10.00 yearsFurniture & Fixtures 5.00 years
3.. Assets valued below Rs. 5,000/-(Rupees Five Thousand Only) and Mobile Phones
are depreciated over a period 1 year from the date of capitalization
Jamshedpur Utilities and Services Company LimitedPower Business DivisionSchedule Forming part of Balance Sheet and Profit and Loss Account
Fixed Assets are stated at cost of acquisition less accumulated depreciation andimpairment loss (if any). Cost of acquisition includes duties (net of cenvat), taxes,
incidental expenses, erection / commissioning expenses and financial charges up to the
date the asset is ready for its intended use. Intangible assets are stated at cost less
accumulated amortization. Advances given to suppliers for identified capital
projects/expenditure are included in capital work in progress.
The deferred tax liability has arisen on account of timing difference with respect to the
written down value of the fixed assets.
Normative expenses such as interest on working capital, interest on Debt and Return on
Equity has not been considered in the accounts.
j. Previous year figures have been regrouped / re-arranged, where-ever
necessary.
Signatory to Schedule 1 to 6
Notes to Accounts and Accounting Policies