Public Notice : Notice issued under section 64(2) of the Electricity Act 2003
2008-09

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5.1 Coal Consumption

The generating unit uses coal from the collieries of Central Coalfields Ltd. (CCL). The coal is transported through road over a distance of about 34 to 49 kms. The completion of MGR system to transport coal is delayed and efforts are being made to complete this as early as possible. The Petitioner received Rs.8 crores from the Government of Jharkhand towards construction of MGR system in 2006-07.

In the tariff order for the year FY 2007-08 the Honourable Commission had allowed specific consumption of coal at 0.58 kg/kWh based on the normative heat rate of 2500 kcal/kWh. The normative levels are far from the ground situations experienced by most plants in India. The normative level of heat rate may be applicable for the stations operating at high level of efficiency and high plant load factor.
As per CEA’s Review of Performance of Thermal Power Stations (2006-07) average specific coal consumption for Eastern region as a whole it was 0.72 kg/kWh. However, the Honourable Commission approved only a normative specific consumption of coal of 0.56 kg/kWh. TTPS is incurring heavy loss due to low specific consumption allowed by the Honourable Commission.

The Tenughat Thermal Power Station is operating under various constraints.

Momentary outages due to tripping of transmission lines.
Outages due to other reasons.
Backing down of the units under instructions of JESB due to lack of load.

Due to the number of tripping of transmission lines and lack of load the generating units are backed down resulting in frequent shutting down and start ups. This impacts the fuel and plant efficiency adversely. In FY 2008-09 Petitioner has registered a specific coal consumption of 0.715 kg/kWh and heat rate of 3075 kCal/kWh. The Petitioner requests the Honourable Commission to consider the actual heat rate observed by the Petitioner in its generation plant.

Table 25: Specific Coal Consumption & Heat Rate for FY’09

Year	Specific Coal Consumption (kg/kWh)	Heat Rate (kCal/kWh)
2008-09	0.715	3075

The transport of coal on a bumpy road in fully loaded trucks is resulting in loss of coal by spilling from the trucks. In addition, there is loss due to wind, evaporation of moisture, during rainy season the coal powder gets washed out. All these factors result in loss of coal in transport and storage. The coal is weighed at loading end and at receiving end, the difference accounts for loss in transit. The experience has shown that the loss accounts to about 0.3% of coal transported. TVNL requests the Honourable Commission to allow 0.3% of total coal transported towards transit loss in FY 2008-09.

5.2 Specific Consumption of Oil

The specific consumption of secondary fuel (oil) during the last two years is given below:

Table 26: Specific Oil Consumption

Year	Specific Consumption (ml/kWh)
2006-07	2.31
2007-08	1.96
2008-09	2.78

The station authorities had brought down the oil consumption considerably during FY 2006-07 to 2.31 ml/kWh from the 6 – 14 ml/kWh levels experienced during FY 2000-01 to FY 2003-04. The norm of 2.0 ml/kWh may be workable for a station working efficiently. It may be difficult to limit the oil consumption to 2.0 ml for a station like TTPS with a numerous outages due to transmission line trippings, backing down of units, etc. For the FY 08, petitioner registered a specific oil consumption of 1.96 ml/kWh Though for FY 09, petitioner registered a specific oil consumption of 2.78 ml/kWh as unit I has also operated after repair.

5.3Fuel Prices and Costs

For the FY 09 the delivered cost of coal was Rs.1295.50 / MT The delivered cost of oil at the thermal station by the oil companies was Rs. 39045/kL during the year 2008-The cost of coal and oil consumption based on the actual prices for FY 2008-09 indicated above and the coal and consumption worked against the electricity generation results in an aggregate fuel cost of Rs.230.70 Crores for FY 2008-09 as detailed in the Table 27 below:

Table 27: Variable Cost

S.No	Item	Derivation	Unit	2008-09
1	Installed Capacity	IC	MW	420
	PLF	PLF	%	60.43%
	Generation	A = ICPLF8.76	MU	2223
	Auxiliary Consumption	B	%	8.37%
	Net Generation	C = A*(1-B)	MU	2037
2	Specific Coal Consumption	D	kg/kWh	0.715
	Total Coal Consumption	E = AD1000	MT	1589745.3
	Total Coal Consumption including transit losses @ 0.3%	E'' = E*1.003	MT	1594515
	Delivered Coal Price	F	Rs./MT	1295.50
	Total Coal Cost	G = E*F	Rs.lakhs	20656.94
3	Specific Oil Consumption	H	ml/kWh	2.78
	Tota Oil Consumption	I = A*H	kl	6181
	Delivered Oil Price	J	Rs./kl	39045.00
	Total Oil Cost	K = I*J	Rs.lakhs	2413.41
4	Coal Cost per Unit	L = G/C	Rs./kWh	1.014
	Oil Cost per Unit	M = K/C	Rs./kWh	0.118
5	Total Fuel Cost per unit	O = L+M	Rs./kWh	1.132
	Total Fuel Cost	N = G+K	Rs.lakhs	23070.35

The proposed variable/energy charges of Rs.230.70 Crores and expected generation of 2037 MUs would result in a energy tariff charge of Rs.1.132/kWh for FY 2008-09. The Petitioner requests the Honourable Commission to kindly approve this.