Section 19 in Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2005
19. Additional Capitalization.
(1)The capital expenditure within the original scope of work actually incurred in respect of the following items after the date of commencement of operation and upto the cut off date may be admitted by the Commission, subject to prudence check.(i)Deferred liabilities(ii)Works deferred for execution(iii)Procurement of initial spares subject to the ceiling specified in Regulation 18.5.(iv)Liabilities to meet award of arbitration or for compliance of the order or decree of a court.(v)On account of change of law(vi)Any additional works / services which have become necessary for efficient and successful operation of the Generating Station, but not included in the original project cost.Note: The list is illustrative and not exhaustive.(2)Any expenditure on minor items / assets like normal tools and tackles, personal computers, furniture, air conditioners, etc. bought after the cut off date shall not be considered for additional capitalisation for determination of tariff.(3)The impact of additional capitalisation in tariff revision may be considered by the Commission twice in a tariff period, including revision of tariff after the cut off date.Note: 1. Any expenditure admitted on account of committed liabilities within the original scope of work and the expenditure deferred on techno-economic grounds but falling within the original scope of work shall be serviced in the normative debt equity ratio specified in Regulation 21.
