| 1.
Executive Summary The Petitioner owns and operates an installed power generation capacity of
420 MW with two units of 210 MW each. Historically the
generating units have been operating at much below their
potential because of transmission constraints and frequent
tripping of transmission lines. In addition JSEB has not been in
a position to consume the power generated when both the units
operate and the station is asked to back down. However, in
2006-07, the plant has shown an impressive performance that can
be attributed to both the units being able to dispatch
simultaneously.
Table 1 provides the performance of the generating units during the period
2000-2007.
Table 1: Generation Performance (MU)
|
Year |
Generation (MUs) |
Total |
Station
PLF (%) |
Auxiliary Consumption
(%) |
|
Unit –I |
Unit-II |
|
2000-01 |
741 |
589 |
1330 |
36.11 |
16.09 |
|
2001-02 |
305 |
851 |
1156 |
31.39 |
15.79 |
|
2002-03 |
185 |
1183 |
1368 |
37.18 |
15.58 |
|
2003-04 |
616 |
731 |
1248 |
36.62 |
16.00 |
|
2004-05 |
1326 |
- |
1326 |
36.04 |
17.60 |
|
2005-06 |
1240 |
289 |
1529 |
41.56 |
14.23 |
|
2006-07 |
1412 |
1303 |
2715 |
73.80 |
12.04 |
|
Based on last year’s performance the Petitioner has projected the
following for the FY 2007-08:
Table 2: Projected Generation Parameters for FY’07
|
Year |
Generation (MU) |
PLF (%) |
Auxiliary
Consumption (%) |
Heat Rate (kCal/kWh) |
Specific
Coal Consumption (kCal/kg) |
Specific Oil
Consumption (kCal/kg) |
|
2007-08 |
1679 |
45.6 |
12.00 |
2821 |
0.656 |
2.31 |
However, Unit I of plant recently suffered a major breakdown due to sudden
load throw-off resulting in severe damage of all the moving and
guide blades of the LP turbines and it is expected to be back in
operation only in FY 2008-09. This has resulted in an increase
in fixed charges for the Petitioner per unit of generation.
The fixed costs
projected for the year 2007-08 are summarized below:
Table 3: Summary of Fixed Costs (Rs.Crores)
|
|
Proposed for 2007-08 |
|
Interest on Loan |
86.71 |
|
Depreciation |
43.88 |
|
O&M Expenses |
142.40 |
|
Interest on Working Capital |
15.19 |
|
Return on Equity |
14.00 |
|
Income Tax |
- |
|
Total |
302.18 |
The cost of coal is billed by Central Coalfields Limited (CCL) at
Rs.1097.89/MT and the transportation cost by road is
Rs.160.85/MT. The delivered cost of coal at the thermal station
was Rs.1258.73/MT during the FY 2006-07. Assuming a modest 5%
increase in the cost of coal and transport the estimated cost
per MT is considered at Rs.1321.67/MT for the year 2007-08.
Table 4: Summary of Variable Costs (Rs.Crores)
|
S.No |
Item |
Unit |
2006-07
(Actual) |
2007-08
(Proposed) |
|
1 |
Coal
Cost per Unit |
Rs./kWh |
0.948 |
0.995 |
|
|
Oil
Cost per Unit |
Rs./kWh |
0.073 |
0.080 |
|
2 |
Total Fuel Cost per Unit |
Rs./kWh |
1.021 |
1.075 |
The non-tariff income
is estimated at Rs.116.96 lakhs during the FY 2006-07 and is
projected to be Rs.117.30 lakhs for the FY 2007-08.
The sum of fixed and energy costs gives the total revenue
requirement of the company for the FY 2005-06. The revenue
requirement less other income will be the revenue to be raised
through tariff. This has been worked out in the Table 5 below
Table 5: Revenue Requirement
|
Particular |
(Rs. crores) |
|
Fixed Charges |
302.18 |
|
Energy Charges |
158.90 |
|
Revenue Requirement |
461.08 |
|
Other Income |
1.17 |
|
Revenue to be raised through Tariff in FY 2007 |
459.91 |
The Petitioner has estimated a revenue requirement of Rs.459.95 crores
after adjusting for its non-tariff income and derived the
following fixed and energy components of tariff:
Table 6: Proposed Tariff Increase
|
Tariff Component |
Rs./kWh |
|
Fixed Charges Proposed |
1.80 |
|
Energy Charges Proposed |
1.075 |
|
Tariff Proposed |
2.875 |
|
Existing Tariff |
1.90 |
|
Increase in Tariff requested |
0.975 |
The Petitioner requests the Honourable
Commission to approve the estimated Rs.0.975/kWh increase in its
tariff.
|
