Section 6 in Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005
6. Filing Procedure. - 6.1 Every Distribution Licensee shall file for each of its licensed business an application for approval of its Aggregate Revenue Requirement (ARR) for each year of the Control Period, not less than 120 days before the commencement of the first year of the Control Period. This filing shall be in such form and in such manner as specified and in accordance with the Guidelines issued by the Commission. The Distribution Licensees may file such applications for ARR of the first Control Period within a period not less than 90 days before the commencement of the Control Period.
6.2The ARR filing for the Distribution business shall be for the entire Control Period. For the Retail Supply business the ARR filing will be on annual basis for the first Control Period and the entire Control Period for the subsequent Control Periods.6.3ARR for Distribution Business. - The ARR filings shall contain the following:(a)The Operation and Maintenance (O&M) costs which include employee-related costs, repair & maintenance costs and administrative & general costs, estimated for the Base Year and the year prior to the Base Year in complete detail, together with the forecast for each year of the Control Period based on the norms proposed by the Distribution Licensee including indexation and other appropriate mechanisms in terms of the principles enunciated in this Regulation for O&M cost allowance.(b)Regulated Rate Base (RRB) for the Base Year and each year of the Control Period which requires submission of the working capital requirement and a detailed scheme/project-wise Capital Investment Plan with a capitalisation schedule covering each year of the Control Period consistent with the Commission's approved Resource Plan.(c)A proposal for appropriate capital structure and its cost of financing (interest cost and return on equity) for the purpose of computing Weighted Average Cost of Capital.(d)Targets proposed for reduction of distribution losses during the Control Period duly adhering to the Licensees' Standards of Performance Regulation.(e)Details of depreciation, including Advance against depreciation if any required and capitalisation schedules for each year of the Control Period.(f)Description of external parameters proposed to be used for indexation;(g)Details of taxes on income;(h)Any other relevant expenditure;(i)Proposals for sharing of gains and losses;(j)Proposals for efficiency parameter targets;(k)Proposals for rewarding efficiency in performance(l)Any other matters considered appropriate6.4ARR for Retail Supply Business. - The ARR for Retail Supply Business shall contain:(a)Power purchase costs for each year of the Control Period. The power purchase costs shall also include the transfer price of own generation for the supply business in line with the Power Procurement Plan approved by the Commission as part of the Distribution Licensee's Resource Plan.(b)All other items mentioned for the distribution business to the extent applicable and in accordance with cost allocation statement mentioned in clause 5 of this Regulation.
