Public Notice : Notice issued under section 64(2) of the Electricity Act 2003
2009-10

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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 2008-09 the petitioner registered specific consumption of coal at 0.715 kg/kWh based on the heat rate of 3075 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.

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.

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

Year	Specific Coal Consumption (kg/kWh)	Heat Rate (kCal/kWh)
2009-10	0.720	3100

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 2009-10.

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)
2007-08	1.96
2008-09	2.78
2009-10	2.50

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 09, petitioner registered a specific oil consumption of 2.78 ml/kWh . Petitioner is working to reduce this level of consumption and hence is targeting to achieve a level of 2.50 ml/kwh for FY 10.

5.3 Fuel Prices and Costs

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 2008-09.

Petitioner projects landed cost of coal at Rs.1300/MT which is only an increase of Rs.5/MT and delivered cost of oil is expected to be at the level of Rs.39045/kL.

The cost of coal and oil consumption based on the projected prices for FY 2009-10 indicated above and the coal and consumption worked against the electricity generation results in an aggregate fuel cost of Rs.259.71 Crores for FY 2009-10 as detailed in the Table 27 below:

Table 27: Variable Cost

S.No	Item	Derivation	Unit	2008-09	2009-10
1	Installed Capacity	IC	MW	420	420
	PLF	PLF	%	60.43%	67.68%
	Generation	A = ICPLF8.76	MU	2223	2490
	Auxiliary Consumption	B	%	8.37%	9.00%
	Net Generation	C = A*(1-B)	MU	2037	2266
2	Specific Coal Consumption	D	kg/kWh	0.715	0.720
	Total Coal Consumption	E = AD1000	MT	1589801	1792859
	Total Coal Consumption including transit losses @ 0.3%	E'' = E*1.003	MT	1594570	1798238
	Delivered Coal Price	F	Rs./MT	1295.50	1300.00
	Total Coal Cost	G = E*F	Rs.lakhs	20657.66	23377.09
3	Specific Oil Consumption	H	ml/kWh	2.78	2.5
	Tota Oil Consumption	I = A*H	kl	6181	6225
	Delivered Oil Price	J	Rs./kl	39045.20	39045.20
	Total Oil Cost	K = I*J	Rs.lakhs	2413.43	2430.64
4	Coal Cost per Unit	L = G/C	Rs./kWh	1.014	1.032
	Oil Cost per Unit	M = K/C	Rs./kWh	0.118	0.107
5	Total Fuel Cost per unit	O = L+M	Rs./kWh	1.132	1.139
	Total Fuel Cost	N = G+K	Rs.lakhs	23071.09	25807.74

The proposed variable/energy charges of Rs.258.07 Crores and expected generation of 2265 MUs would result in a energy tariff charge of Rs.1.139/kWh for FY 2009-10. The Petitioner requests the Honourable Commission to kindly approve this.