Section 12 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Determination of Multi Year Generation Tariff) Regulations, 2016
12. Hydro power generating station.
- Components of tariff :12.1The Tariff for supply of electricity from a hydro power generating station shall comprise of capacity charge and energy charge to be derived in the manner specified in these Regulations, for recovery of annual fixed cost consisting of the following components :(a)Return on Equity ;(b)Interest and Financing Charges on Loan Capital ;(c)Depreciation ;(d)Operation and Maintenance Expenses ;(e)Interest Charges on Working Capital ;Less :(f)Non-Tariff IncomeNorms of operation12.2The norms of operation for hydro power station shall be as under.12.3Normative Annual Plant Availability Factor (NAPAF): The Normative Annual Plant Availability Factor for hydro generating stations shall be determined by the Commission as per the following criteria :(a)Storage and pondage type plants with head variation between full reservoir level (FRL) and Minimum Draw Down Level (MDDL) of up to 8% and where plant availability is not affected by silt : 90%(b)Storage and pondage type plants with head variation between FRL and MDDL of more than 8%, where plant availability is not affected by silt: Plant-specific allowance to be provided in NAPAF for reduction in NAPAF for reduction in MW output capability as reservoir level falls over the months. As a general guidelines the allowance on this account in terms of multiplying factor may be worked out from the projection of annual average of net head, applying the formula := (Average head/Rated head) +0.02Alternatively in case of a difficulty in making such projection, the multiplying factor may be determined as := (Head at MDDL/Rated head) x 0.5 + 0.52(c)Pondage type plants where plant availability is significantly affected by silt : 85%(d)Run-of-river type plants : NAPAF to be determined plant-wise, based on 10 day design energy data, moderated by past experience where available/relevant.12.4A further allowance may be made by the Commission in NAPAF determination under special circumstances e.g. abnormal silt problem or other operating conditions, and known plant imitations.12.5In case of a new hydro-electric project the developer shall have the option of approaching the Commission in advance for fixation of NAPAF based on the principles enumerated in Regulation12.3, 12.4.12.6In case of pumped storage hydro generating stations, the quantum of electricity required for pumping water from down-stream reservoir to up-stream reservoir shall be arranged by the beneficiaries duly taking into account the transmission and distribution losses etc. up to the bus bar of the generating station. In return, beneficiaries shall be entitled to equivalent energy of 75% of the energy utilized in pumping the water from the lower elevation reservoir to the higher elevation reservoir from the generating station during peak hours and the generating station shall be under obligation to supply such quantum of electricity during peak hours :Provided that in the event of the beneficiaries failing to supply the desired level of energy during off-peak hours, there will be pro-rata reduction in their energy entitlement from the station during peak hours :Provided further that the beneficiaries may assign or surrender their share of capacity in the generating station, in part or in full, or the capacity may be reallocated by the Central Government, and in that event, the owner or assignee of the capacity share shall be responsible for arranging the equivalent energy to the generating station in off-peak hours, and be entitled to corresponding energy during peak hours in the same way as the original beneficiary was entitled.12.7Auxiliary Energy Consumption (AUX): The norms for auxiliary energy consumption shall be as under :(a)Surface hydro generating stationsi. With rotating mounted on the generator shaft : 0.7%ii. With static excitation system : 1%(b)Underground hydro generating stationsi. With rotating exciters mounted on the generator shaft : 0.9%ii. With static excitation system : 1.2%Transformation Losses, from generation voltage to transmission voltage = 0.5% of energy generatedComputation and Payment of Capacity Charges and Energy Charges for Hydro Generating Stations :12.8The annual fixed cost of a hydro generating station shall be computed, based on norms specified under these Regulations, and recovered on monthly basis under capacity charge (inclusive of incentive) and energy charge, which shall be payable by the Beneficiaries in proportion to their respective allocation in the saleable capacity of the generating station, that is to say, in 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 provisionally be worked out based on the latest estimate of the completion cost for the generating station, for the purpose of determining the Capacity Charge and Energy Charge payable during such period.12.9The capacity charge (inclusive of incentive) payable to a hydro generating station for a calendar month shall be -= AFC x 0.5 x NDM / NDY x (PAFM / NAPAF) (in Rupees)Where,AFC -Annual Fixed Cost specified for the Year, in Rupees ;NAPAF -Normative Plant Availability Factor in percentage ;NDM -Number of Days in the month ;NDY -Number of Days in the Year ;PAFM -Plant Availability Factor achieved during the month, in Percentage.12.10The PAFM shall be computed in accordance with the following formula :PAFM = 10000 x i=Iā NDCi / {N x IC x (100 -AUX)} %Where,AUX -Normative auxiliary energy consumption in percentage ;DCi -Declared Capacity (in ex-bus MW) for the ith Day of the month which the station can deliver for at least three (3) hours, as certified by the nodal load dispatch centre after the Day is over ;IC -Installed Capacity (in MW) of the complete generating station ;N -Number of Days in the month12.11The energy charge shall be payable by every Beneficiary for the total energy scheduled to be supplied to the Beneficiary, excluding free energy, if any, during the calendar month, on ex power plant basis, at the computed energy charge rate. Total Energy Charge payable to the Generating Company for a month shall be := (Energy Charge Rate in Rs. / kWh) x {Scheduled Energy (ex-bus) for the month in kWh} x (100 -FEHS) / 100.12.12Energy Charge Rate (ECR) in Rupees per kWh on ex-power plant basis, for a hydro generating station, shall be determined up to three decimal places based on the following formula, subject to the Regulation12.14 :ECR = AFC x 0.5 x 10 / {DE x (100 -AUX) x(100 -FEHS)}Where,DE -Annual Design Energy specified for the hydro generating station, in MWh, subject to the provision in Regulation12.13 ;FEHS -Free energy for home State, in per cent, if any.12.13In case actual total energy generated by a hydro generating station during a Year is less than the Design Energy for reasons beyond the control of the Generating Company, the following treatment shall be applied on a rolling basis :-(i)in case the energy shortfall occurs within 10 years from the Date of Commercial Operation of a generating station, the ECR for the Year following the Year of energy shortfall shall be computed based on the formula specified in Regulation 12.12 with the modification that the DE for the Year shall be considered as equal to the actual energy generated during the Year of the shortfall, till the energy charge shortfall of the previous Year has been made up, after which normal ECR shall be applicable ;(ii)in case the energy shortfall occurs after ten years from the Date of Commercial Operation of a generating station, the following shall apply. Suppose the specified annual Design Energy for the station is DE MWh, and the actual energy generated during the concerned (first) and the following (second) financial year is A1 and A2 MWh respectively, A1 being less than DE. Then, the Design Energy to be considered in the formula as specified in Regulation of these Regulation for calculating the ECR for the third financial year shall be moderated as (A1 + A2 -DE) MWh, subject to a maximum of DE MWh and a minimum of A1 MWh ;(iii)Actual energy generated (e.g. A1, A2) shall be arrived at by multiplying the net metered energy sent out from the station by 100 / (100 -AUX).12.14In case the Energy Charge Rate (ECR) for a Hydro generating station, as computed in Regulation12.12 , exceeds eighty paise per kWh, and the actual saleable energy in a Year exceeds {DE x (100 -AUX) x (100 -FEHS) / 10000} MWh, the energy charge for the energy in excess of the above shall be billed at eighty paise per kWh only :Provided that in a year following a year in which total energy generated was less than the Design Energy for reasons beyond the control of the generating company, the Energy Charge Rate shall be reduced to eighty paise per kWh after the energy charge shortfall of the previous year has been made up.12.15The 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 year :Provided 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.12.16The 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.12.17Energy 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 :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.12.18The 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 outages :Provided 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.12.19The 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.
