1. 1 Karnataka Power Corporation Limited

2. 2 Hydro-thermal mix ALL INDIA – 106111 MW as on 1.4.2003 KARNATAKA 6539 MW 1.4.2003 (KPCL+VVNL+IPP+CGS)

3. 3 Installed Capacity of Karnataka Installed Capacity of Karnataka- 6539mw Hydro-Thermal Mix of KPCL--Total capacity 4350.505mw 4

4. 4 INSTALLED CAPACITY Thermal Hydel Wind Total KPCL 1470 2875.95 4.55 4350.50 VVNL 128 221 - 349 Central 840 - 840 Private 776.90 130.02 92.20 999.12 Total 3215 3227 97 6539 Total non-conventional : 440 MW (wind+mini hydel+biomass+cogeneration)

5. 5 Growth in Installed Capacity - KPCL

6. 6 Performance of KPCL Stations Apr - Sep (2003 - 04) 2003- 04 2002-03 Total Generation (MU) 8912 8400 Thermal (MU) 5434 5041 Hydel (MU) 3467 3352 Wind Farm (MU) 10.883 7.081 RTPS PLF 84.16 % 91.09%

7. 7 List of projects executed (MW) RTPS - 7X210 = 1470 THERMAL Sharavathy-10x 103.5 = 1035 Linganamakki-2x27.5 = 55 Nagjhari-3x150+3x135 = 855 Supa-2x50= 100 Varahi-2x115 = 230 Mani Dam-2x4.5= 9 Ghataprabha-2x16 = 32 HYDEL Mallapur-2x4.5 = 9 Mini hydel = 1.75 Bhadra = 39.2 Kadra 3x50 = 150 Kodasalli 3x 40 = 120 Gerusoppa 4 x 60 = 240 Total hydel= 2875.95 Kappatagudda - = 4.555 WIND Grand total = 4350.505

8. 8 Particulars 97-98 98-99 99-00 00-01 01-02 02-0303-04 (30.9.03) Generation 5538 6013 7762 8904 8954 10292 5433 (MU) P L F (%) 75.26 81.72 81.52 80.67 81.12 90.39 84.16 Av. Factor 88.60 90.44 87.41 87.63 84.78 92.39 86.47 Aux. Cons % 8.26 8.21 8.00 8.15 8.53 8.50 8.68 Sp.Coal Cons. 0.711 0.706 0.713 0.678 0.637 0.642 0.66 (kg/kwh) Station heat rate 2720 2589 2544 2486 2498 2504 Sp. Oil Cons. 0.771 1.09 1.237 1.546 1.084 0.668 0.7 (ml/kwh) PLF - National average - 72% CEA norms for 210 MW units, aux. consumption - 9.5% spec. oil consumption - 3.5 ml/kwh Performance of RTPS

9. 9 Particulars 97-98 98-99 99-00 00-01 01-02 02-03 03-04 (30.9.03) Generation ( Million Units) 10350 9858 11711 10544 9268* 6846** 3469 Total inflows (TMC) 341 282 323 307 208 192 182 Av. Factor % 89.12 89.95 89.16 92.64 87.34# 85.35# 86.38 Aux. Cons % 1.22 1.07 1.10 1.06 0.94 1.19 -- Performance of Hydro stations * due to poor monsoon; ** due to worst monsoon# units under R&M

10. 10 Employees position Capacity in mws Corporate in Nos. Workmen in Nos. Total in Nos. Hydro288126043785 Thermal147080815822390 Corporate office --435251686 Total6811

11. 11 DETAILS OF O&M EXPENDITURE, AND ESTABLISHMENT EXPENSES (IN RS CRORES) YearO&M expenditure Establishment expenses HydroRTPSTotal 93-949.809.8119.6160.66 94-956.036.4112.4471.29 95-968.4218.7727.1996.90 96-979.0822.8531.93114.03 97-989.3027.1736.47116.44 98-998.9327.2836.21133.55 99-0013.6129.6043.21194.41 00-0112.5332.9545.48253.86 01-0211.3738.6950.06256.88 02-03 12.0944.46 56.55 231.22 03-045.2222.5227.74196.43

12. 12 Annual availability factor of generating stations in % Hydel Station96-9797-9898-9999-0000-0101-0202-03 SGS81.0290.7990.2893.5093.8890.9292.21 LPH87.9093.8092.2898.5195.2499.0087.35 Bhadra73.7774.5292.4491.9490.7175.4781.85 NPH83.3687.0188.6883.6191.5081.3575.20 SPH96.7575.3784.1087.1987.0388.0594.71 VUGPH97.4295.1092.3988.5292.8190.00 MDPH85.0094.6384.3090.3984.2386.2181.23 GDPH99.4699.5795.7799.0786.5681.7490.31 Kadra 86.4298.3483.7493.8591.7786.48 KODASALLI 78.4691.5990.7592.1094.59 GERUSOPPA 84.1075.33 AVERAGE HYDRO84.4989.1289.9589.1692.4887.3485.35 AVERAGE Thermal85.7388.2190.4487.4187.6384.6192.39 Kappatagudda wind farm 91.3588.7199.3898.65

13. 13 Sharavathi & Linganamakki O&M cost (Rs Lakhs) Item95-9696-9797-9898-9999-0000-0101-02 Employee cost1371.621697.981904.841862.392314.262358.902516.48 Administrative & Misc. exp73.8150.8492.6792.7497.45126.84163.19 Operation & Maintenance Expenses632.55421.23409.69396.22528.74415.11337.26 Corporate Office Exp allocated436.38434.01361.08540.81940.941798.531749.82 TOTAL2514.362604.062768.282892.163881.394699.384766.75

14. 14 Nagjhari & Supa- O&M cost ITEM95-9696-9797-9898-9999-0000-0101-02 1Employee cost1848.672068.662262.672353.182011.741953.921970.34 2 Administrative & Misc. expenses114.05101.43119.08136.9190.3880.6085.02 3 Operation & Maintenan ce Expenses344.51333.04344.68412.07215.86267.46238.12 4 Corporate Office Expenses allocated484.52500.63408.96667.50741.751427.231330.22 TOTAL2791.753003.763135.393569.663059.733729.213623.70

15. 15 Varahi & Mani Dam Power House - O&M cost ITEM95-9696-9797-9898-9999-0000-0101-02 Employee cost1140.791263.381238.141295.361655.831664.491667.45 Administrative & Misc. exp79.5272.9879.1294.51101.46114.89113.13 Consumption of Stores & Spares142.60177.73243.7785.41166.64145.24206.77 Corporate Office Expenses allocated286.21302.82234.15339.31615.661193.261152.66 TOTAL1649.121816.911795.181814.592539.593117.883140.01

16. 16 For future plant norms justification can be discussed up-front. For existing plant : - There is a need to understand Industry as it exists. - Environment under which it is performing - Norms shall address enabling provision to pull up performance. While wielding carrot/stick care is needed as it may danger the Industry. Salient submission

17. 17 Tariff norms shall cover methodology of Tariff fixation of existing plants considering a) capacity of the plant b) Vintage/Technology c) Present level of performance d) Level of redundancy/stock of Insurance spares e) Type of fuel. F) Constraints for improvements g) Possibility of sustenance of the present level of performance Salient submission

18. 18 Should spell the - Principle guiding fixation of base level of performance for reward/penalty. Norms shall be dynamic to absorb improvement in performance as Industry matures. - Hence provision for review/revision indicating review period - Shall cover the basic frame structure of Tariff setting Fixed/variable components - Pass through components with reasons Salient submission

19. 19 Merit order dispatch: - Present system considers only the variable cost irrespective of fixed cost. - Hence power with high fixed and low variable cost gets dispatched on priority. - Care shall be taken while posting Take or pay commitment for fuel in fixed comportment. - Shall provide for risk mitigation such as for: - Coal - Railways - Monsoon vagaries Salient submission

20. 20 Peak & off peak tariff for hydro stations Insurance of hydel assets Impact due to poor receivables Impact of size of hydro plants on: -Availability -Auxiliary consumption Impact of the inheritance of chronic problems on plant availability Salient submission

21. 21 ROE - 16%(Post tax) - 80 : 20 Debt- equity - Translates to Net ROE 13.33% SHR - 2500 Kcal/Kwh or Actuals whichever is lower for 210MW AC - 9% AVF/PLF - 80%/ 75% No LC rebate after due date Operating Norms- Thermal

22. 22 AC - 1% for overground 1.5% for underground AVF - 85% Peak an off peak tariff Review for Design Energy Two-part tariff structure Incentives No LC rebate after due date Operating Norms- Hydro

23. 23 O & M - Base year 2002-03 (actuals) - Escalation linked to Index - No adjustment factor for improved productivity Operating Norms

24. 24