Reference note on pre-pages:

Appeal No. 226 of 2016: Partially Allowed and Remanded dated 08.11.2017.

The Commission vide order dated 18.03.2016 in Petition No. 184/TT/2013, has
reduced tariff claimed by the Appellant on account of following issues:-

(a) Date for commencement of tariff;

(b) Capital cost reduction for AC Substation Portion of the Licensed Asset;
(c) Reduction of loan outstanding by cumulative depreciation till the date
of license.

Adani Power Ltd (APL) was granted LTA in Northern Region on 17.7.2009 for bi-
pole transmission line. The Commission granted the Transmission Line on
29.7.2013. Appellant filed Petition No. 184/TT/2013 for determination of annual
transmission charges for tariff of Asset-I (500 kV) and Asset II (400kV). The
Commission vide order dated 18.12.2013 granted provisional tariff.

The Commission vide its order dated 18.3.2016 reduced the tariff claimed by the
Appellant on account of date for commencement of tariff, reduction of capital cost of
AC Substation Portion and reduction of loan outstanding by cumulative depreciation
till the date of license.

Aggrieved by the impugned order dated 18.03.2016 in Petition No. 184/TT/2013 of

the Commission, the Appellant has filed the present appeal before the Hon'ble
Tribunal.

The main issues raised and decided by the Appellant in the present Appeal
according to the Tribunal are :

i) Reduction of Tariff claimed by the Appellant on account of date for

commencement of tariff.
ii) Reduction of capital cost of AC Substation Portion.
iii) Reduction of loan outstanding by cumulative depreciation till date of TL.

APTEL held that

i) The Tariff commencement date is to be considered as date of grant of TL i.e.

29.7.2013 and the Commission was directed to work out the capital cost as
on 28.7.1013 and other tariff components including interest on loan as pe the
provisions of the Tariff Regulations, 2009.
ii) The opening loan as on date of tariff commencement date is to be
considered after reducing it by cumulative depreciation as done by CERC.
iii) CERC on the issue of depreciation on pruned capital cost as on date of tariff
determination submitted that this issue is being dealt in true up petition filed
by the Appellant, so, with consent of parties this issue is not dealt in the
present case.

The Appeal is partially allowed and the impugned order dated 18.3.2016 by the
Commission is remanded back to the Commission allowing the date of grant of
Transmission License i.e. 29.7.2013 as the date of tariff commencement for the
transmission assets of the Appellant and to determine the capital cost of the said
transmission assets including Bhiwani & Dehgam sub stations as on date of grant of
Transmission License as decided above including consequential reliefs to the
Appellant.

Submitted Please

Anisha Shrivastava
16.03.2018

Asst. Chief (law)