2. G1 G2 SERC SLDC SEB/STU State Govt. RLDC REB CTU CERC Central Govt. CEA ISTS ISGS Load L1L2 Intra State System IEGC to Operate on the periphery X=- GLG X= Drawl From Grid L= Total Load G=State Gen

3. COORDINATES/ RLDC REGIONAL GRID IPP STATE GENR. SHARE CENTRAL

4. AVAILABILITY BASED TARIFF

5. NEED FOR ABT LOW FREQUENCY DURING PEAK HOURS (48.0-48.5 HZ) HIGH FREQUENCY DURING OFF PEAK HOURS (50.5-51.0 HZ) RAPID & WIDE FREQUENCY CHANGES OF 1 HZ WITHIN 5 TO 10 Mts. FOR MANY HOURS IN A DAY VERY FREQUENT GRID DISTURBANCES,CAUSING TRIPPING OF GENERATING STATIONS IN 2 PART TARIFF FC+VC IS BEING CHARGED TO BENEFICIARIES IN PROPORTION TO ACTUAL ENERGY DRAWN

6. TERMINOLOGY TWO PART ABT 1.FIXED COST*CAPACITY CHARGES 2.VARIABLE COST*ENERGY CHARGES 3.MONTHLY DATA*15 Mts TIME BLOCK 4.JMR READINGS*SEMS READINGS OTHER TERMSIN ABT DECLARED CAPABILITY SCHEDULED ENERGY UNSCHEDULED INTERCHANGE (UI)

7.  What is Availability Based Tariff (ABT)?  Day-Ahead Scheduling  Regional Energy Accounting (REA)  Real time operation

8. Availability Based Tariff (ABT) will be applicable at the regional grid level only between the ISGS stations and the SEBs/STUs. However a similar scheme between the SEBs/STUs and the GENCOs and DISCOMs within the state is desirable.

9. Components of inter-utility tariff (Pre – ABT Mechanism)  Fixed charges  Interest on loans  Depreciation  O & M charges  Return on equity  Interest on Working Capital  Energy charges (fuel cost)  Incentives  Surcharge & other levies  No charge for reactive energy

10. Payment to Inter State Generating Stations (ISGS) from beneficiaries (Post Availability Based Tariff )  Capacity charges  Energy charges  Unscheduled Interchange (UI)

11. CAPACITY CHARGE Capacity charge will be related to ‘availability’ of the generating station and the percentage capacity allocated to the state. ‘Availability’ for this purpose means the readiness of the generating station to deliver ex-bus output expressed as a percentage of its rated ex-bus output capability.

12. Declared Capacity’ or ‘DC' means the capability of the generating station to deliver ex-bus electricity in MW declared by the such generating station in relation to any period of the day or whole of the day, duly taking into account the availability of fuel;. Note : In case of a gas turbine generating station or a combined cycle generating station, the generating station shall declare the capacity for units and modules on gas fuel and the liquid fuel separately, and these shall be scheduled separately. Total declared capacity and total scheduled generation for the generating station shall be the sum of the declared capacity and scheduled generation for gas fuel and liquid fuel for the purpose of computation of availability and Plant Load Factor respectively.

13. FIXED COST CALCULATION 1st Month = (1xACC1)/12 2nd Month = (2xACC2-1xACC1)/12 3rd Month = (3xACC3-2xACC2)/12 4th Month = (4xACC4-3xACC3)/12 5th Month = (5xACC5-4xACC4)/12 6th Month = (6xACC6-5xACC5)/12 7thMonth = (7xACC7-6xACC6)/12 8thMonth = (8xACC8-7xACC7)/12 9th Month = (9xACC9-8xACC8)/12 10th Month = (10xACC10-9xACC9)/12 11th Month = (11xACC11-10xACC10)/12 12th Month = (12xACC12-11xACC11)/12 ACC:1-12 REPRESENTS THE AMOUNT OF ANNUAL CAPACITY CHARGES, CORRESPONDING TO THE AVAILABILITY FOR THE CUMULATIVE PERIOD UPTO THE END OF CALCULATED MONTH

14. TWO PART TARIFF CONCEPTS FIXED PART RECOVERY PLFRECOVERY 0%50% OF FIXED COST 0%-62.78%50%-100% FIXED COST 62.78-68.48%DEAD BAND >68.48%INCENTIVE STARTS INCENTIVE AT 1 Ps/Kwh FOR EVERY 1% INCREASE IN PLF RISE ABOVE 68.48% (WHICH INCLUDES DEEMED GENERATION )

15. TWO PART TARIFF CONCEPTS FIXED PART TARIFF INCLUDES 1.RETURN ON EQUITY (ROE) 2.DEPRECIATION 3.INTEREST ON WORKING CAPITAL 4.MISC TAXES 5.O&M COST- WHICH INCLUDES a)EMPLOYEE COST b)REPAIR& MAINTENANCE COST c)OVERHEADS

16. ENERGY CHARGE Energy charges shall be worked out on the basis of a paise per kwh rate on ex-bus energy scheduled to be sent out from the generating station as per the following formula Energy charges = Rate of energy charges (paise/kwh) x Scheduled Generation (ex-bus MWh)

17. Scheduled Generation’ or ‘SG' at any time or for any period or time block means schedule of generation in MW ex-bus given by the Regional Load Dispatch Centre;. Note For the gas turbine generating station or a combined cycle generating station for any time block, if the average frequency for any time block, is below 49.52 Hz but not below 49.02 Hz and the scheduled generation is more than 98.5% of the declared capacity, the scheduled generation shall be deemed to have been reduced to 98.5% of the declared capacity, and if the average frequency of the for any time block is below 49.02 Hz and the scheduled generation is more than 96.5% of the declared capacity, the scheduled generation shall be deemed to have been reduced to 96.5% of the declared capacity.

19. TWO PART TARIFF CONCEPTS VARIABLE PART RECOVERY AS PER NORMS 1.AUX.POWER CONSPN : 3% 2. HEAT RATE (C C) : 2000 Kcal/kWh PRICE ESCALATION OF FUEL IS PROTECTED WITH FUEL PRICE ADJUSTMENT. FUEL COST= BASE COST+FUEL PRICE ADJ (FPA)

20. UNSCHEDULED INTERCHANGES (UI): 1. VARIATION IN ACTUAL GENERATION / DRAWAL WITH RESPECT TO SCHEDULED GENERATION / DRAWAL SHALL BE ACCOUNTED FOR THROUGH UNSCHEDULED INTERCHANGE (UI). 2. RATES BASED ON AV.FREQUENCYOF THE TIME BLOCK 3.CALCULATED WITH 15 MIN TIME BLOCK 4.UI RATES SHALL BE FREQUENCY DEPENDENT AND UNIFORM THROUGHOUT THE COUNTRY. 5.UI FOR BENEFICIARY SHALL BE EQUAL TO ITS TOTAL ACTUAL DRAWAL MINUS ITS TOTAL SCHEDULED DRAWAL.

21. Unscheduled Interchange(UI) Charges : (contd..) (i) Any generation up to 105% of the declared capacity in any time block of 15 minutes and averaging up to 101% of the average declared capacity over a day shall not be construed as gaming, and the generator shall be entitled to UI charges for such excess generation above the scheduled generation (SG). (ii) For any generation beyond the prescribed limits, the Regional Load Dispatch Centre shall investigate so as to ensure that there is no gaming, and if gaming is found by the Regional Load Dispatch Centre, the corresponding UI charges due to the generating station on account of such extra generation shall be reduced to zero and the amount shall be credited adjusted towards in UI account of beneficiaries in the ratio of their capacity share in the generating station.

22. UNSCHEDULED INTERCHANGE (UI) RATES

23. FREQUENCY IN HZ OLD RATE BASED ON ORDER DATED 26.03.04 NEW RATE BASED ON ORDER DTD. 15.07.04 FROMTOPs/KWh <49.0249.02600570 49.0249.04592561 49.0449.06584552 -------- 49.5049.52400345 49.5249.54392336 49.5449.56384327 49.5649.58376318 49.5849.60368309 49.6049.62360300 49.6249.64352291 -------- 49.7649.78296228 49.7849.80288219 49.8049.82280210 49.8249.84272204 49.8449.86264198 49.8649.88256192 -------- 50.4450.462418 50.4650.481612 50.4850.5086 >50.5000 NOTE: REVISED RATES WILL COME INTO EFFECT PROSPECTIVELY.

24. AVAILABILITY BASED TARIFF (A)CAPACITY CHARGE (B)ENERGY CHARGE (C)ADJUSTMENT FOR DEVIATIONS (U I CHARGE) (A) = a function of the Ex-Bus MW availability of Power Plant for the day declared before the day starts x SEB’s % allocation from the plant (B) = MWh for the day as per Ex-Bus drawal schedule for the SEB finalised before the day starts x Energy charge rate (C) = Σ (Actual energy interchange in a 15 minute time block – scheduled energy interchange for the time block) x UI rate for the time block TOTAL PAYMENT FOR THE DAY = (A) + (B) ± (C)

25. Hence under ABT : CAPACITY CHARGE and ENERGY CHARGE do not depend on actual plant generation / drawal. No metering required for this as they are based on off-line figures. All deviations taken care of by UI  No complication regarding deemed generation.  Perpetual incentive for maximizing generation and reducing drawal during deficit, but no incentive to over generate during surplus with in the UI norms.

26. FEATURES OF ABT In case of ISGS, RLDC WILL REVISE THE SCHEDULE IN CASE OF UNIT OUTAGE.IT WILL BE EFFECTIVE FROM THE 4TH TIME BLOCK COUNTING THE TIME BLOCK IN WHICH REVISION IS ADVICED BY THE GENERATOR TO BE 1ST ONE. IN CASE OF TRANSMISSION LINE BOTTLENECK RLDC WILL REVISE THE SCHEDULE. IT WILL BE EFFECTIVE FROM THE 4TH TIME BLOCK REVISION BY GENERATORS WILL BE EFFECTIVE FROM THE 6TH TIME BLOCK IN CASE OF GRID DISTURBANCE,SCHEDULES OF GENERATION AND DRAWAL SHALL BE DEEMED TO HAVE BEEN REVISED TO ACTUALS.GRID DISTURBANCE & IT’S DURATION WILL BE CERTIFIED BY RLDC IN ABT,TRANSMISSION LOSSES WILL BE APPORTIONED IN PROPORTION TO DRAWALS

27. OTHER COMPONENTS OF AVAILABILITY BASED TARIFF INCENTIVES: BASED ON SCHEDULED GENERATION ( NO DEEMED GENERATION) FROM 01-04-2004 ABOVE 80 %PLF- 25 Paise/Kwh –PAYABLE AS PER THE INDIVIDUAL ALLOTTED CAPACITY. PAYMENT ON MONTHLY BASIS,YEARLY ADJUSTED.

28. SCHEDULING : AS PER IEGC CODE. DEMONSTRATION OF DECLARED CAPABILITY: RLDC MAY ON ITS OWN OR REQUESTED BY BENEFICIERIES ASK FOR DEMONSTRATION OF DECLARED CAPABILTY. PENALTY ON FAILING TO DEMONSTRATE / MIS DECLARATION: –TWO DAYS FIXED CHARGES FOR FIRST TIME. –FOUR DAYS FIXED CHARGES FOR SECOND TIME. –SAME WAY IN GEOMETRICAL PROGRESSION. –CONTINUED GAMING BEYOND FIVE TIMES IN A YEAR CAN BE DEALT AS PER SECTION 45 OF ERC ACT. CONTD..

29. FINAL ABT ORDER TARGET GENERATION IS SET AT 80% AVAILABILITY INCENTIVE STARTS AT 80% PLF (SCHEDULED GENERATION) NO DEEMED GENERATION CONCEPT INCENTIVE FOR GENERATION BEYOND 80% PLF WITH A CEILING OF 25.0 Ps/Kwh. ROE IS AT 14% ALL OPERATIONAL NORMS WERE REVISED AS ON 01.04.04

30. TARIFF ORDER AUX.POWER CONSPN OPEN CYCLE : 1 % COMBINED CYCLE : 3 % HEAT RATE OPEN CYCLE : 2900 KCAL/KWH COMBINED CYCLE : 2000 KCAL/KWH

31. Operation and Maintenance expenses Normative operation and maintenance expenses shall be as follows, namely: Gas Turbine/Combined Cycle generating stations: (Rs. in lakh/MW) Gas Turbine/Combined Cycle generating stations other than small gas turbine power generating stations Small gas turbine power generating stations With warranty spares of 10 years Without warranty spares 2004-055.27.89.46 2005-065.418.119.84 2006-075.628.4410.24 2007-085.858.7710.65 2008-096.089.1211.07

32. TIME TABLE FOR EXCHANGE OF INFORMATION IN RESPECT OF SCHEDULING By 10.00 hrs.ISGSs shall advise NRLDC the Station-wise MW and MWh capabilities By 1100 Hrs.NRLDC shall advise the States / Beneficiaries the Station wise MW & MWh entitlements. By 1500 hrs.SLDCs/ Beneficiaries shall communicate the Station-wise requisitions and details of bilateral exchanges to NRLDC. By 1700 hrs.NRLDC shall convey the ex-power plant despatch schedule to each ISGS and net drawal schedule to each State / Beneficiary. The details of unrequisitioned surpluses shall also be intimated. By 2200 hrs.*ISGSs / States / Beneficiaries shall inform the modifications, if any, for incorporating in the final schedule By 2300 hrs.NRLDC shall issue the final despatch and drawal schedule. * Since issuing the final despatch and drawal schedule is a critical activity and considerable time is involved in its preparation and carrying out requisite moderation, if any, it has been agreed to complete this activity by 2100 hrs.

33. METERING AND ACCOUNTING: –METERING INSTALLATION,TESTING,OPERATION -MAINTENANCE OF METERS AND COLLECTION- TRASNSPORTATIONAND PROCESSING OF DATA REQUIRED FOR ACCOUNTING OF ENERGY CHARGES AND AVAILABILITY, FREQUENCY ON 15 MIN BLOCK SHALL BE PROVIDED BY PGCIL/RLDC. –DATA PROCESSED SHALL BE SUPPLIED BY RLDC TO REB FOR REGIONAL ENERGY ACCOUNTING ON MONTHLY BASIS AND UI CHARGES FOR BILLING ON WEEKLY BASIS. In case of a generating station, contracting to supply power only to the State in which it is located, the scheduling, metering and energy accounting shall be carried out by the respective State Load Despatch Centre.

34. Thank You