Section 110 in Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2009
110. Capital investments.
(1)The distribution licensee in accordance with the RERC (Investment Approval) Regulations, 2006 shall file a detailed capital investment plan for the ensuing year and subsequent four years for meeting the requirement of load growth, reduction in distribution losses, improvement in quality of supply, reliability, metering etc. The capital investment plan should be filed at the beginning of the Control Period, in accordance with RERC (Investment Approval) Regulations, 2006. The licensee may make upward or downward revision in the annual capital expenditure plan at the time of Annual Performance Review:Provided that the investment plan shall be an annual rolling plan and the period covered by the plan shall coincide with the period for which forecasts/estimates are being submitted as part of such application.(2)The investment plan shall be a least cost plan for undertaking investments on strengthening and augmentation of the distribution system for meeting the requirement of load growth, reduction in distribution losses, improvement in quality of supply, reliability, metering, etc.(3)The investment plan shall cover all capital expenditure projects to be undertaken by the distribution licensee in the MYT Control Period and shall be in such form as may be stipulated by the Commission from time to time.(4)The prior approval of the Commission shall be required for all capital expenditure schemes of a value exceeding Rs Ten (10) Crore.(5)The investment plan shall be accompanied by such information, particulars and documents as may be required showing the need for the proposed investments, alternatives considered, cost/benefit analysis and other aspects that may have a bearing on the wheeling tariff and retail tariffs. The investment plan shall also include capitalisation schedule and financing plan.(6)The distribution Licensee shall submit, along with the application for determination of tariff or along with the application for annual performance review, as the case may be, details showing the progress of capital expenditure projects, together with such other information, particulars or documents as the Commission may require for assessing such progress.(7)The Commission shall consider and approve the distribution licensee's capital investment plan, with modifications as required. The costs corresponding to the approved investment plan of the distribution licensee for a given year shall be considered for its revenue requirement.(8)The proportion of debt and equity for the approved capital investment shall be as per Regulation 17.
