Section 32 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
32. Pumped Storage Hydro Generating Stations.
(1)The fixed cost of a pumped storage hydro generating station shall be computed on annual basis, based on norms specified under these regulations, and recovered on monthly basis as capacity charge. The capacity charge shall be payable by the beneficiaries in proportion to their respective allocation in the saleable capacity of the generating station, i.e, the capacity excluding the free power to the home State:Provided that during the period between the date of commercial operation of the first unit of the generating station and the date of commercial operation of the generating station, the annual fixed cost shall be worked out based on the latest estimate of the completion cost for the generating station, for the purpose of determining the capacity charge payment during such period.(2)The capacity charge payable to a pumped storage hydro generating station for a calendar month shall be:(AFC x NDM / NDY) (in Rupees), if actual Generation during the month is >= 75 % of the Pumping Energy consumed by the station during the month and {(AFC x NDM / NDY) x (Actual Generation during the month during peak hours/ 75% of the Pumping Energy consumed by the station during the month) (in Rupees)}, if actual Generation during the month is < 75 % of the Pumping Energy consumed by the station during the month.Where,AFC = Annual fixed cost specified for the year, in RupeesNDM = Number of days in the monthNDY = Number of days in the yearProvided that there would be adjustment at the end of the year based on actual generation and actual pumping energy consumed by the station during the year.(3)The energy charge shall be payable by every beneficiary for the total energy scheduled to be supplied to the beneficiary in excess of the design energy plus 75% of the energy utilized in pumping the water from the lower elevation reservoir to the higher elevation reservoir, at a flat rate equal to the average energy charge rate of 20 paise per kWh, excluding free energy, if any, during the calendar month, on ex power plant basis.(4)Energy charge payable to the generating company for a month shall be:= 0.20 x {Scheduled energy (ex-bus) for the month in kWh - (Design Energy for the month (DEm) + 75% of the energy utilized in pumping the water from the lower elevation reservoir to the higher elevation reservoir of the month)} x (100 - FEHS) / 100.Where,DEm = Design energy for the month specified for the hydro generating station, in MWhFEHS = Free energy for home State, in per cent, as defined in regulation 42, if any.Provided that in case the Scheduled energy in a month is less than the Design Energy for the month plus 75% of the energy utilized in pumping the water from the lower elevation reservoir to the higher elevation reservoir of the month, then the energy charges payable by the beneficiaries shall be zero.(5)The generating company shall maintain the record of daily inflows of natural water into the upper elevation reservoir and the reservoir levels of upper elevation reservoir and lower elevation reservoir on hourly basis. The generator shall be required to maximize the peak hour supplies with the available water including the natural flow of water. In case it is established that generator is deliberately or otherwise without any valid reason, is not pumping water from lower elevation reservoir to the higher elevation during off-peak period or not generating power to its potential or wasting natural flow of water, the capacity charges of the day shall not be payable by the beneficiary. For this purpose, outages of the unit(s)/station including planned outages and the forced outages up to 15% in a year shall be construed as the valid reason for not pumping water from lower elevation reservoir to the higher elevation during off-peak period or not generating power using energy of pumped water or natural flow of water:Provided that the total capacity charges recovered during the year shall be adjusted on pro-rata basis in the following manner in the event of total machine outages in a year exceeds 15%:(ACC)adj = (ACC) R x (100-ATO)/85Where,(ACC)adj - Adjusted Annual Capacity Charges(ACC)R - Annual Capacity Charges recoveredATO - Total Outages in percentage for the year including forced and planned outagesProvided further that the generating station shall be required to declare its machine availability daily on day ahead basis for all the time blocks of the day in line with the scheduling procedure of Grid Code.(6)The concerned Load Despatch Centre shall finalise the schedules for the hydro generating stations, in consultation with the beneficiaries, for optimal utilization of all the energy declared to be available, which shall be scheduled for all beneficiaries in proportion to their respective allocations in the generating station.
