Section 7 in Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010
7. Process to determine Point of Connection Transmission Charges and Losses allocations.
(1)The process to determine the allocation of transmission charges and losses shall be as under, and as per timelines set out subsequently in Chapter 7 of these regulations:(a)The Implementing Agency shall collect the Basic Network data pertaining to the network elements and the generation and load at the various network nodes from all concerned entities including Designated ISTS Customers, transmission licensees, NLDC, RLDCs, SLDCs, RPCs;(aa)[ No transmission charges and losses for the use of ISTS network shall be payable for the generation based on solar and wind power resources for a period of 25 years from the date of commercial operation of such generation projects if they fulfill the following conditions: [Added by Notification No. L-1/44/2010-CERC, dated 27.3.2019 (w.e.f. 15.6.2010).](i)Such generation capacity has been awarded through competitive bidding process in accordance with the guidelines issued by the Central Government;(ii)Such generation capacity has been declared under commercial operation between 13.2.2018 till 31.3.2022;(iii)Power Purchase Agreement(s) have been executed for sale of such generation capacity to all entities including Distribution Companies for compliance of their renewable purchase obligations.](b)The Basic Network shall not contain any electricity system, electrical plant or line below 132 kV except where generators are connected to the grid at 110 kV. Power flow into a lower voltage system from the voltage levels indicated in the definition of the Basic Network shall be considered as load at that sub-station. Power flow from a lower voltage system into the electricity systems at the voltage levels shall be considered as generation at that sub-station;(c)The dedicated transmission lines constructed, owned and operated by the ISTS Licensees shall be considered to be a part of the Basic Network. Dedicated lines constructed, owned and operated by the generator shall not be considered Page 8 of 42 as a part of the Basic Network. In the latter case, the generator will be deemed to be connected directly to the ISTS;(d)[ Nodal generation information shall be based on the forecast data provided by the DICs. Such forecast data shall incorporate estimate of total maximum injection into the grid, considering the injection under long term access, medium term open access and short term open access during an Application Period. The forecast data submitted by the DICs shall be vetted by the Implementing Agency based on historical maximum generation levels obtained from the NLDC/RLDCs/SLDCs. Any variation in the forecast generation shall be communicated to the concerned DIC by the Implementing Agency. [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]The forecast generation in respect of each DIC shall be normalized with respect to forecast All India Peak Demand met to create base case for load generation balance to arrive at the approved injection.Approved injection figures so arrived shall be validated by the Validation Committee based on the injection data submitted by the DICs. In case data submitted by any DIC is different from the data computed on the basis of last three years' actual data, requisite justification by the concerned DIC shall be submitted for considering its data.The generating station for which three years' data are not available, forecast shall be prepared based on available data and the data submitted by the concerned generating station. In case no data is submitted by the generating station, estimated injection as prepared by the Implementing Agency shall be considered as approved injection.In case of DICs which are injecting into the grid for the first time, approved injection based on norms formulated by the Validation Committee for generation based on different types of stations shall be considered.All withdrawal DICs shall also submit estimated maximum generation from their own generating stations during the Application Period to the Implementing Agency to prepare the Base Case for load generation balance. The data as validated by the Validation Committee shall be final.Mis-declaration by a DIC beyond +/- 20% for two consecutive quarters shall be treated as gaming. Unless reasonably explained by the concerned DIC, the Implementing Agency shall report the matter to the Commission for appropriate directions.](e)[ Forecast demand data shall be submitted by the DICs for each node or a group of nodes in a zone, identified by the Implementing Agency under these regulations. The forecast demand data shall incorporate estimate of maximum withdrawal. The forecast demand data submitted by DICs shall be vetted by the Implementing Agency based on historical demand met of each DIC during the periods corresponding to the Application Period. Any variation in the forecast demand shall be communicated by the Implementing Agency to the concerned DIC. [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]In case data submitted by a DIC is different from the data forecast on the basis of last three years actual data, requisite justification shall be submitted by the concerned DIC for considering its data. The data as validated by the Validation Committee shall be final.Mis-declaration by a DIC beyond +/- 20% for two consecutive quarters shall be treated as gaming. Unless reasonably explained by the concerned DIC, the Implementing Agency shall report the matter to the Commission for appropriate directions.](f)Implementing Agency shall prepare detailed procedures and formats for collection of the generation and demand data from each Designated ISTS Customer and the data pertaining to the Basic Network within 30 days of the notification of these regulations;(g)[ In the event of difference of opinion between any DIC and the Implementing Agency with regard to the revised generation and demand data so obtained, the Validation Committee shall take final decision after considering the point of view of the concerned DIC and the Implementing Agency.] [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).](h)The Implementing Agency shall run AC load flows using the Basic Network, nodal generation and nodal demand. To ensure Load Generation balance, adjustment may be required to be made on the vetted generation and demand data.(i)[ Basic Network along with the converged load flow results for the injection and withdrawal data as per sub-clauses (d) and (e) of clause (1) of this Regulation shall be validated by the Validation Committee. The Basic Network, nodal generation, nodal demand and the load flow results for each Application Period shall be validated by the Validation Committee not later than 15 days prior to the commencement of each Application Period. The approved Basic Network, nodal generation, nodal demand along with the load flow results shall be made available on the websites of the Commission and the Implementing Agency immediately after its approval by the Validation Committee. [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]Provided that non-submission of data in time for computation of transmission charges shall be treated as non-compliance of the regulations and action as considered appropriate shall be taken by the Commission after giving an opportunity of hearing to the defaulting DIC.](j)Approved Basic Network, nodal generation and nodal demand data shall form the base for computation of Marginal Participation factors and loss allocation factors.(k)[ Consequent to development of load flows on the Basic Network, the Hybrid Methodology shall be applied by the Implementing Agency on the Basic Network to determine the transmission charges and loss allocation factors attributable to each node in the power system.] [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).](l)[ Overall charges to be shared among the nodes shall be computed based on the Yearly Transmission Charges apportioned to each of the lines of the ISTS Licensees. The Yearly Transmission Charges, computed for the assets for each voltage level and conductor configuration shall be provided by the respective ISTS transmission licensees. The ISTS Licensees, deemed ISTS Licensees and owners of the non-ISTS Lines certified by the Regional Power Committees shall give the total Yearly Transmission Charges of their transmission assets, whose charges are to be recovered through the PoC mechanism in the application period along with circuit kilometers at each voltage level and for each conductor configuration. The total Yearly Transmission Charges shall be apportioned for each voltage level and conductor configuration based on the ratio of the indicative cost levels furnished by CTU at the beginning of each year or application period and approved by the Commission: [Substituted by Notification No. L-1/44/2010-CERC, dated 24.11.2011 (w.e.f. 15.6.2010).][Provided further that there shall be nine slab rates for PoC charges. The slab rates shall be computed by the Implementing Agency based on the methodology given in Annexure-I to these regulations. The slab rates shall be approved by the Commission for each Application Period. The number of slabs shall be reviewed by the Commission after two years.]][***] [Deleted 'sub-clause (m)' by Notification No. L-1/44/2010-CERC, dated 24.11.2011 (w.e.f. 15.6.2010).](n)[ For the computation of transmission charges at each node as per Hybrid Methodology, cost of ISTS transmission licensees whose lines feature on the Basic Network shall be considered: [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]Provided that in case of STU lines which are physically inter-State lines and whose tariff is approved by the Commission, such tariff shall be considered for computation of PoC chages:Provided further that in case of non-ISTS lines (lines owned by STUs but being used for carrying inter-State power as certified by respective RPCs), the asset-wise tariff as approved by the respective State Commission shall be considered. Where asset-wise tariff is not available, the tariff as computed by the Commission based on the ARR of the STUs (as approved by respective State Commissions) by adopting the methodology similar to the methodology used for ISTS transmission licensees shall be considered. The transmission charges received by the concerned STU on this account shall be adjusted in its approved Annual Revenue Requirement.](o)[ The participation factors, and the Point of Connection nodal and zonal rates thus determined, shall be computed for each Application Period. Detailed methodology for preparing the Base Case shall be in accordance with the methodology given in Annexure-I to these regulations. [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]Provided that the load flow studies shall be carried out by the Implementing Agency for each Application Period.](p)In order to give proper signals towards transmission charges based on distance and direction, the transmission charge per circuit kilometre shall have to be made uniform for each voltage level and conductor configuration. For this purpose, total transmission charges to be recovered for all lines of a given voltage level and conductor configuration shall be divided by the total circuit kilometre for that voltage level and line configuration in order to arrive at the average transmission charge per circuit kilometre for that voltage level and conductor configuration. [***] [Deleted 'Such charges shall then be attributed to peak and other than peak periods of each season based on the hours constituting these periods.' by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).] The total transmission charge for each line shall be recovered in proportion to the participation factors as detailed in Annexure - I to these Regulations. The process shall thereby ensure that the total charges for the lines are fully recovered;(q)[ The recovery of the Yearly Transmission Charges (YTC) of the ISTS network shall be based on the Hybrid Methodology (PoC charge), Reliability Support Charge and HVDC Charge. Ten percent (10%) of the Yearly Transmission Charges shall be recovered through Reliability Support Charge Sharing methodology. The Commission may review the weightage accorded to Reliability Support Charge whenever deemed necessary. The Reliability support charge rates shall be determined separately and shall not be mixed with zonal PoC rates. The Reliability Support Charge shall be payable by the DICs in proportion to their Approved Withdrawal. In case of Injection DIC shaving Long Term Access to target region, Reliability Support Charges shall also be payable in proportion to their Approved Injection.] [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).](r)The loss allocation factors shall be computed for each season using the Hybrid method as explained in Annexure - I to these regulations. The loss allocation factors shall be applied to the total losses, computed as per the procedures developed by the NLDC under these regulations, to attribute losses to each Designated ISTS Customer .(s)[ The losses shall be apportioned to the DICs by suitably adjusting their scheduled MWs. The extent of adjustment shall be on the basis of losses apportioned to each DIC based on the Hybrid Methodology. The Detailed Procedure for application of losses to various DICs shall be modified by NLDC with the approval of the Commission. [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]Provided that there shall be nine slabs for calculation of transmission losses which shall be expressed in terms of percentage. There shall be 4 steps above the average loss and 4 steps below the average loss with a slab size of 0.25% subject to minimum loss of Zero percent. The slabs may be reviewed by the Commission after two years.](t)The Implementing Agency shall aggregate the charges for geographically and electrically contiguous nodes on the ISTS to create zones, in order to arrive at uniform zonal charge in Rs / MW / month. Implementing Agency shall create zones for generation and demand. Such zoning shall be governed by the following considerations:(i)Zones shall contain relevant nodes whose costs (as determined from the output from the Hybrid method) are within the same range.(ii)The nodes within zones shall be combined in a manner such that they are geographically and electrically proximate. The demand zones shall normally be the state control areas except in the case of North Eastern States, which are considered as a single demand zone. Generation zones are formed by combining the generators connected to the ISTS.(iii)The same zone can act as a generation zone as well as a demand zone for the purpose of calculation of Generation and demand zonal charges respectively. Even as it is preferable to have similar zones for generation and demand, this shall be pursued only when practical, and other conditions for zoning are met(iv)Transmission charges for thermal power generators either directly connected with ISTS or through pooling stations that are designed to handle generation capacity of more than 1500 MW for inter-state transfer shall be determined as charges at these specific nodes (such nodes would be considered as separate generation zones) and not clubbed with other generator nodes in the area.(v)Transmission charges for hydro power generators either directly connected with ISTS or through pooling stations that are designed to handle generation capacity of more than 500 MW for inter-state transfer shall be determined as charges at these specific nodes (such nodes would be considered as separate generation zones) and not clubbed with other generator nodes in the area.(iv)[ Any inter-State Generating Station connected to the 400 kV inter-State Transmission System (including those connected to both 400 kV ISTS and STU) shall be treated as a separate zone and shall not be clubbed with other generator nodes in the area, for the purpose of calculation of PoC injection rate: [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).]Provided that in case of a merchant power plant in a State connected to 400 kV inter-State Transmission System, with zero LTA or part LTA, injection considered in the Base Case or LTA, whichever is higher, shall be considered to arrive at the PoC injection rate.](vii)[ In case an ISGS is connected only to STU network and the shares of the beneficiaries of the said station are being delivered through the STU network, such a line of the STU network shall be considered as an ISTS for the purpose of these regulations.] [Substituted by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).](u)No transmission charges for the use of ISTS network shall be charged to solar based generation. This shall be applicable for the useful life of the projects commissioned in next three years.(v)No transmission losses for the use of ISTS network shall be attributed to solar based generation. This shall be applicable for the useful life of the projects commissioned in next three years.[Provided that the above provision shall also be applicable for the useful life of the projects commissioned during the period 1.7.2014 to 30.6.2017.] [Added by Notification No. L-1/44/2010-CERC, dated 1.4.2015 (w.e.f. 15.6.2010).](y)[ No transmission charges and losses for the use of ISTS network shall be payable for the capacity of the generation projects based on solar resources for a period of 25 years from the date of commercial operation of the such generation projects if they fulfill the following conditions: [Added by Notification No. L-1/44/2010-CERC, dated 14.12.2017 (w.e.f. 15.6.2010).](i)Such generation capacity has been awarded through competitive bidding; and(ii)Such generation capacity has been declared under commercial operation between 1.7.2017 and [12.2.2018]; and(iii)Power Purchase Agreement(s) have been executed for sale of power from such generation capacity to the Distribution Companies for compliance of their renewable purchase obligation.(z)No transmission charges and losses for the use of ISTS network shall be payable for the generation based on wind power resources for a period of 25 years from the date of commercial operation of such generation if they fulfill the following conditions:(i)Such generation capacity has been awarded through competitive bidding; and(ii)Such generation capacity has been declared under commercial operation between 30.9.2016 till [12.2.2018] [Substituted '31.12.2019' by Notification No. L-1/44/2010-CERC, dated 27.3.2019 (w.e.f. 15.6.2010).]; and(iii)Power Purchase Agreement(s) have been executed for sale of such generation capacity to the Distribution Companies for compliance of their renewable purchase obligations.](2)Detailed methodological aspects are set out in Annexure - I to these regulations. The Commission may modify or update the above processes from time to time based on the emergent needs for determining the Point of Connection transmission charges and allocation of losses.
