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BEFORE THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION

LUCKNOW

IN THE MATTER OF: Suo-moto proceedings on preparation and implementation of Availability Based Tariff (ABT) in the State.

AND IN THE MATTER OF:

1. U.P. Power Transmission Company Ltd., 7th Floor, Shakti Bhawan,

14,Ashok Marg, Lucknow. 2. U.P. Power Corporation Ltd., 7th Floor, Shakti Bhawan, 14,Ashok Marg,

Lucknow. 3. U.P. Rajya Vidyut Utpadam Nigam Ltd.(UPRVUNL), 7th Floor, Shakti

Bhawan, 14, Ashok Marg, Lucknow. 4. U.P. Jal Vidyut Nigam Ltd.(UPJVNL), 4th Floor, Shalimarg Square, 126/31,

B.N. Road, Lalbagh, Lucknow. 5. Madhyanchal Vidyut Vitaran Nigam Ltd., Prag Narain Road, Lucknow. 6. Poorvanchal Vidyut Vitaran Nigam Ltd., 132 KV S/s, Bhikari Vidyut Nagar,

Varanasi. 7. Paschimanchal Vidyut Vitaran Nigam Ltd., Victoria Park, Meerut. 8. Dakshanchal Vidyut Vitaran Nigam Ltd.,Vidyut Bhawan, Gailana Road,

Agra 9. Kanpur Electric Supply Co. Ltd., KESA House, Kanpur. 10. Noida Power Company Ltd., Commercial Complex, H-Block, Alpha-II

Sector, Greater Noida City. 11. Power System U.P. Power Corporation Ltd., 5th Floor, Shakti Bhawan,

14,Ashok Marg, Lucknow. The following were present:

1. Sri. Awanish Awasthi, MD, UPPCL 2. Sri. Raghav Shankar, CE, Communication & Control, UPPCL 3. Sri. V.K Srivastava, SE (US), UPPCL 4. Sri. V.P Trivedi, SE(SA), UPPCL 5. Sri. R.K Johar, CE(PS), UPPCL 6. Sri. Rama Agarwal, SE, MVVNL 7. Sri. S.K Agarwal, EE, DVVNL, Agra 8. Sri. Jayant Nayak, PWC, Consultant 9. Sri. S.C Ahuja, CE, RAU 10. Sri. Rajive Goyal, Manger (Op) NPCL 11. Sri. Arun Kumar, CE, UPJVNL 12. Sri. O.P Verma, EE, UPJVNL 13. Sri. Jagdish Roy, NTPC 14. Sri. V.K Upadhyay, EE(EMDI), HTPS

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15. Sri. D.K Mishra, EE, BTPS-Obra 16. Sri. Rajeev Kr. Sharma, EE, EMD, Panki-TPS 17. Sri. U.S Gupta, EE (Comm.), UPRVUNL 18. Sri. H.Aslam, Sr.AE(Comm.), UPRVUNL 19. Sri. Tasneem, EE, E&SMD, BTPS-Anpara 20. Sri. A.K Gupta, AE (EMDI), Harduaganj

ORDER (Date of hearing 26.7.07)

1.0 Background: 1.1 The Central Government, in 1992, considered to effect reforms in

electricity and determination of tariff and appointed ECC, USA Consultant

to study the power sector in India and recommend appropriate remedial

measures. The Consultant recommended implementation of Availability

Based Tariff (ABT) in view of extreme variation of grid frequency from

below 48 Hz to above 52 Hz for large durations. The Government of India

accepted the report of consultant and constituted taskforce for further

discussion and implementation under Chairmanship of Chairman, Central

Electricity Authority. The Authority set up Regional Committees for

discussion with all concerned and made final recommendation along with

a draft notification for implementation of ABT to the Government of India in

May, 1998. The Govt. of India enacted the Electricity Regulatory

Commission’s Act, 1998 in August,98 which vested function of regulation

of electricity industry into the Central Commission and State

Commissions instead of appropriate Governments. In view of the said

enactment, the Ministry of Power transferred records of recommendations,

decisions and deliberations to the Central Electricity Regulatory

Commissions for further discussions and appropriate orders with matter.

The Central Commission disposed of the matter by Order dt.4.1.2000. The

said Order prescribed grid operation between 49.02 Hz to 50.5 Hz. The

ABT has been implemented in phases in different regions in India.

1.2 The ABT has brought significant improvement in grid frequency and

improved compliance to contracts of power purchase. UPERC appreciated

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the benefits of ABT and directed UP Power Corporation Ltd. in Tariff Order

dt.10.6.03 to file a proposal for implementation of ABT in the State.

1.3 After enactment of the Electricity Act,03, a need was felt to initiate

concerted efforts for implementation of ABT & Open Access with all

concerned in the State. With this view, suo motto proceeding for their

implementation was initiated by calling a meeting of all concerned on

29.6.04 by the Commission.

1.4 The National Electricity Policy notified by the Central Government on

12.2.05 under section 3 of the Electricity Act, 2003 (hereinafter referred to

as the Act), recognizing its positive impacts, seeks SERCs to introduce

Availability Based Tariff(ABT) within a year.

The clause 5.7.1 of the Policy states, “The ABT regime introduced by CERC at the national level has had a positive impact. It has also enabled a credible settlement mechanism for intra-day power transfers from licenses with surpluses to licenses experiencing deficits. SERCs are advised to introduce the ABT regime at the State level within one year.

1.5 The Tariff Policy, vide GOI Notification dt.6.1.06, reiterates the resolution

of the Central Government adopted in the National Electricity Policy to

implement ABT in the State by 1.4.06.

2.0 Record of suo motto proceedings

(a) UPPCL was requested, by letters dt.21.1.04 & 20.2.04 to file a

proposal for implementation of ABT as directed in Tariff Order

dt.10.6.03. Seeing no response, the Commission convened a

meeting of representatives of UPPCL, UPRVUNL, and UPJVNL &

distribution companies on 29.6.04, to assess the state of

preparedness and to promote concerted efforts of parties who were

material for implementation of ABT. The participants were unanimous

to implement ABT and Open Access in the State. Following

directions were passed, vide Minutes of Meeting (MoM) dt.29.6.04 to:

(i) examine the infra-structural requirement of State Load Despatch

Center (SLDC),

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(ii) specify the time and phasing for placing the infrastructure in

operation,

(iii) form a task force consisting of representatives drawn from

generating companies and licensees to work under the

supervision of senior officers of SLDC & UPPCL as STU.

(iv) create a unit in each distribution company and generating

company to assist SLDC in discharge of its functions,

obligations and duties,

(v) generating companies, UPPCL and distribution company to

make realistic assessment of their technical, commercial &

financial requirements.

(b) Subsequently, a meeting was convened on 11.1.05 to discuss the

progress made in compliance to directions passed on 29.6.04 and

Multi Buyer-Multi Seller scheme (MBMS) submitted by UPPCL. It was

informed that state generator interface with Transmission system and

distribution system were being provided with ABT meters and data

from such 866 meters (out of 944 installed meters) had been

received. Tendering for installation of 265 V-SAT was stated to be in

progress. One hundred eight (108) non-ABT compliant meters were

also to be changed. However, no information about expansion of

SCADA below 220 KV level and formation of task force could be

furnished. Distribution companies had not established controls at

their end to coordinate with and to receive instructions from SLDC

due to stated reasons of lack of manpower. The State of

preparedness was not encouraging except for NPCL, which had

made some progress. It was also observed that MBMS scheme was

not in the sprit of ABT as such UPPCL was directed, vide minutes

dt.11.1.05 to:

(i) review MBMS proposal in light of ABT order, Draft UPERC

(Terms & Condition of Generation Tariff) Regulation,2004,

Indian Electricity Grid Code and UP Electricity Grid Code etc,

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(ii) allocate Power Purchase Agreements (PPAs) among

Distribution companies before 9th June,05,

(iii) specify time and phasing for putting desired infrastructure in

place,

(iv) form taskforce as directed on 29.6.04,

(v) start mock ABT exercise from 1.2.05

(vi) submit the plan for augmentation of transmission and

distribution system.

(c) Further in the meeting held on 24.4.05, the Commission required

UPPCL to submit a report on the compliance of directions issued by

the Commission in tariff order 2004-05 and in meetings held on

dt.29.6.04 and 11.1.05. It was informed to the Commission that

existing PPAs should be honored by UPPCL till 9.6.05 and

thereafter-new PPAs would be signed with distribution companies.

Regarding preparation of ABT, it was also apprised that 95% of total

1400 meters had been installed and energy & UI accounting was

being done on the basis of recorded data received from such meters.

V-SAT links were expected to be commissioned in 4 to 5 months.

Unified Scheme unit of UPPCL, co-coordinating installation of

infrastructure, informed that the Distribution licensees had already

been given a blueprint for creation of control rooms at their end

although it had received no feedback. It was proposed by UPPCL

that ABT in the State might be implemented from April, 2006 but the

Commission decided to take a decision after adequate preparation

was made. The Commission observed that SLDC, being a distinct

entity under the Electricity Act, 2003 (hereinafter referred to as EA,03

or the Act ) to be operated by STU, should be functionally

independent. Accordingly, UPPCL agreed to maintain a separate

account for SLDC from 1st April, 2005.

1) In meeting held on 19.12.05, the Commission was informed that

1284 meters, out of total requirement of 1380 meters, had been

installed and meters for Railways were being procured. Some

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problem with cabling was reported to have hampered the installation

of meters at power stations of UPRVUNL. Regarding V-SAT

installation, the first part of the tender had been opened by that time.

The Scheduling and Unscheduled Interchange accounting software

was not being used because the generating stations and distribution

companies were not participating due to lack of infrastructure.

Regarding implementation of Open Access and development of

SLDC procedure, the Commercial Wing of UPPCL was stated to be

responsible for the same. In consideration of past conduct of parties,

the Commission directed:

(i) UPRVUNL to take remedial measures and co-operate with

STU in installation of meters,

(ii) STU to ensure completion of metering at all points including

power stations of State Generating Companies, Captive

Plants and other Non-Conventional Energy Source based

plants,

(iii) STU to complete the work on war footings,

(iv) STU to start full-fledged mock ABT exercise and prevail

upon the generating companies and the distribution licensee

to fall in line,

(v) All distribution companies and generating companies to set

up controls immediately with necessary infrastructure and

manpower as specified by STU,

(vi) UPPCL to establish co-ordination among various agencies

responsible in implementation of open access and ABT.

2) The issues of implementation of ABT also came up for discussion of

Co-ordination Forum on 20.7.06. The Forum suggested that ABT

should be implemented w.e.f.1.8.06 on trial basis and a report be

furnished to the Commission about its success after two months.

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3) The actions taken by Unified Scheme unit of UPPCL have been

communicated through various letters and minutes of meeting. It is

evident from such communications that:

(i) infra-structural and manpower requirement for setting up

controls was conveyed to UPRVUNL, UPJVNL & all

distribution companies by letter dt.1.2.05 and 24.3.05.

(ii) an activity schedule drawn for the purpose of Scheduling &

Despatch was also sent UPRVUNL, UPJVNL & all

distribution companies by letter dt.24.3.05.

(iii) As per minutes of meeting 18.4.06, headway was made by

UPRVUNL, UPJVNL & all distribution companies as

compared to review undertaking on 22.9.05 by the Core

group.

4) The Commission required Chief Engineer, Transmission and Chief

Engineer, Power System, UP Power Corporation Ltd. (UPPCL) to

submit a report on success of ABT enforced in the State on trial basis

w.e.f.1.8.06, vide letters no. UPERC/D(G)/ABT/06/2097 dt.5.10.06

and UPERC/D(G)/OA-ABT/06/659 dt.23.11.06. The addressees were

also required to submit the status of compliance to the provisions of

UPERC (Terms & Conditions of Open Access) Regulations, 2004

and UPERC (Procedure, Terms & Conditions for Payment of Fee &

Charges to State Load Despatch Center and other related provisions)

Regulation, 2004.

5) Chief Engineer, Power System has informed, vide letter

no.09/CEPS/EE-2/UPERC dt.4.1.07 that:

(i) 0.2 class accuracy ABT meters have been installed at

almost all power stations,

(ii) Procurement of MRI equipments, computers has been

undertaken,

(iii) Software are under test, and

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(iv) Consultant has been asked to conduct a training on

scheduling, revision of schedule and related aspects of ABT.

3.0 Proposal for implementation of ABT

It was more than 3 years from first meeting that satisfactory progress had

been made for implementation of these schemes, The Commission

decided that implementation of ABT in the State cannot be delayed in view

of stipulations made in the National Electricity Policy & Tariff Policy. In this

consideration, the Commission proposed to implement ABT w.e.f.1.8.07 in

a discussion paper prepared for initiating a dialogue on the issue. The

interested parties and stakeholders were appealed, through a Public

Notice dt.15.6.07 published in newspapers, to submit their

objections/suggestions & comments on the proposal. The hearing in the

matter was fixed for 26.7.07 by a Public Notice dt.13.7.07 published in

newspapers. The information about these notices was also conveyed to

STU, distribution companies & generating companies of the State by

letters.

4.0 Response to the discussion paper

The following comments have been received:

(i) Tathagat Abhikarta Kalyan Samiti Trust has written a letter

dt.18.6.07 in reference to Public Notice dt.15.6.07 but does not

discuss ABT

(ii) Unified scheme, a unit of UPPCL, in message dt.29.6.07

received through fax, has submitted that -

• Software of energy accounting is found to have some

shortcomings.

• ABT management of 4X110 MW Tanda TPS is being done

by Power System since 1.12.05. Energy account is being

prepared on Excel software

• Metering is complete at all five generating stations of

UPRVUNL (except at few places) and these stations are

unable to process MRI due to lack of manpower and

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computers for processing data for preparation of weekly

ABT details for further processing at EASC of MBMS.

• Discoms have not established load management system,

control rooms to regulate power.

• Hot line communication between MBMS unit and Discom

control rooms have not been established.

• Work on V-SAT installation could not be started.

• Manpower requirement for MBMS unit has been sent.

• Meters at all transmission-discom interfaces have been

installed, commissioned, MRI received, processed and

monthly account of discoms prepared.

• a draft notification has been sent to GOUP for allocation

of PPAs among the distribution companies.

(iii) NPCL has made following comments in his letter dt. 30.6.07 -

• Independent SLDC must be established before

implementation of ABT.

• Each discom must have known allocation of power.

• The proposed interim arrangement of allocation of share is

no better than the mock exercise already done in this

regard and that would be grossly unfair to the consumers

of the company inasmuch as the allocation of energy has

been proposed in favor of all discoms based on their

present consumption while NPCL is allocated 45 MW,

which has been continuing for last more than 5 years.

• The proposal does not mention about transmission losses.

• The proposal does not make requirement of real time

integration of schedules.

• SLDC must be authorized by all discoms to schedule

resources as per the requirement of the grid in line with

S.6.5(5) of IEGC .

• SLDC must have separate website.

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• How the overdrawl by an Open Access customer would be

governed in ABT.

• There must be penal provisions of non-compliance of ABT.

(iv) North Central Railways, in letter dt.4.7.07, as stated that Railway

be exempted from ABT for traction supply and existing system of

tariff may be followed.

5.0 Hearing dt.26.7.07

5.1 UPPCL has made following written submissions in the hearing:

(a) Metering status as on 30.7.07 of Special Energy Meters -

• The Meters at all existing 132/33 KV, 20/40 MVA transformers

have been installed totaling to 1453 in number.

• 134 meters have been installed at generating stations of

UPRVUNL

• At generating stations of UPJVNL, 62 meters have been

installed.

• The Meters at interstate/intrastate transmission lines are under

the process of installation.

• The Meters for Railways Traction Feeders have been

procured. One meter commissioned and 17 allotted for

installation.

• Tenders have been invited for procurement of ABT meters for

ex-bus measurement of energy at generation end and for new

sub-stations.

(b) Meter reading instruments have been procured in 162 nos. out

of which 10 instruments have been allotted to UPRVUNL and

rest would be used by transmission.

(c) Energy drawl of all discoms during FY 05-06 and 06-07 has

been submitted.

(d) Status of preparedness at generating stations of UPRVUNL-

(i) Anpara – 0.2 accuracy meters except at 11 KV MGR feeder

installed. Installation of computer & Internet connectivity are

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under process. Software installation shall follow computer

installation and MRI instrument is to be delivered by the firm.

(ii) Obra-A&B – Only 0.2 accuracy meter installation is

complete.

(iii) Paricha – 0.2 accuracy meters, except at station

transformers III, IV & GT- IV, have been installed.

Installation of computer & Internet connectivity is complete

and MRI instrument is to be delivered by the firm.

(iv) Panki – 0.2 accuracy meters installation is complete. MRI

instrument is to be delivered by the firm.

(v) Harduaganj – 0.2 accuracy meters installation is complete.

Computers & telephone connection for Internet connectivity

are available. MRI instrument is to be delivered by the firm.

5.2 Sri. Awanish Awasthi, MD, UPPCL, who is also MD, UPRVUNL , has

submitted that all boundary meters at transmission-distribution interface

have been installed and at few places accuracy of metering may be affected

due to old CT&PT. It is also stated that most of the generating stations in

the State are old and subjecting them to ABT would have severe

commercial implications on them. Regarding preparedness at the level of

distribution licensees, it is stated that the capacity development of discoms

to deal with scheduling and revision of schedules would take some time.

The controls in each discom is also take more time to come in operation.

Regarding allocation of PPAs among distribution companies, MD, UPPCL

informed that that a draft notification had already been sent for

consideration of the Government of UP and copy of the same draft had also

been submitted to the Commission. MD, UPPCL has further informed that

NPCL has not set up 132 KV S/s as earlier directed by the Commission.

The Commission directed NPCL to submit the status of the S/s and

milestones for the same might be decided with UPPCL & UPPTCL.

The Commission observed that for the success of Open Access under

the provisions of the Electricity Act, 03, implementation of ABT would be

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the first step and the State has already lagged behind by more than a year

from the target specified by the Central Government in the National

Electricity Policy and Tariff Policy. In the given situation, there could be an

argument to revise target for implementation of ABT but the Commission

found that some of generating stations, say Anpara & Paricha TPS, are

rather well equipped in terms of infrastructure required for operation of

ABT in comparison to other generating stations of UPRVUNL &

distribution licensees, therefore, phased implementation of ABT could be

considered as best option to start with. All present in the hearing were

requested to deliberate on that possibility.

MD, UPPCL has submitted that it would not be possible for the

distribution companies to subscribe to the technical and commercial

requirements of ABT at present due to lack of infrastructure and even if it

is presumed tobe possible, the energy accounting and UI accounting

bySLDC would become a complex exercise to be dealt with the present

capabilities available with SLDC. Among generating stations, it is stated

that only Anpara TPS is the latest generating station of UPRVUNL, which

meets all infrastructure requirements.

In light of written and oral submissions as above, SLDC and STU are

found in the state of implementation of ABT in phases as metering at

generating stations and transmission-distribution interface is complete. We

hope that the software could be firmed up by the time first phase starts.

Procurement of MRI instruments is being undertaken and training of

personnel should be concluded during the time available before

successive phasings come in operation. Similarly, generating stations and

distribution licensees, who have not established controls, shall utilize this

time for preparation and ensure that they are ready (as per guidelines of

STU already conveyed to them) when they are required so prepared by

phasing specified hereunder by the Commission. As a matter of fact, each

generating station of UPRVUNL & UPJVNL already have communication

links established with SLDC situated at Shakti Bhawan, and the same can

be used for setting up controls. There are Area Load Despatch Centres

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(ALDC), which have function to enforce the instructions of Central Control.

These ALDCs shall continue to function under the commands of the

Central Control (i.e.SLDC).

The Commission directed UPPCL to approach the State Govt. for

establishment of SLDC under section 31 of the Act.

After discussion, the Commission decided to bring Anpara A&B TPS,

UPPCL, consolidated entity of all Government Discoms, NPCL, Open

Access customers, co-generation plants, captive plants, traders and all

future generating stations under all provisions of ABT after four months of

date of the hearing followed by Paricha TPS after next four months.

UPPCL, for that matter, may represent its four subsidiary distribution

companies & KESCO, as a single entity.

6.0 Effective date of implementation 6.1 In view of the decision taken in the hearing, the effective date of

implementation of 1st phase shall be 1st December, 2007 which will cover

Anpara A&B TPS, UPPCL, consolidated entity of all Government

Discoms, NPCL, Open Access customers, co-generation plants, captive

plants, traders and all future generating stations.

In the 2nd phase, Paricha TPS shall be brought under ABT with

effect from 1st April,2008.

The effective date of implementation of ABT among various

Government Distribution Companies and other existing generating

stations of U.P. Rajya Vidyut Utpadam Nigam Ltd.(UPRVUNL) and U.P.

Jal Vidyut Nigam Ltd.(UPJVNL) shall be decided in due course by an

order.

STU shall file a petition on 1st April,2008 for the consideration of the

Commission for giving effect to ABT among various Government

Distribution Companies and remaining existing generating plants.

6.2 UPPCL shall prepare drawl schedule considering load requirements of

Madhyanchal Vidyut Vitran Nigam Ltd., Purvanchal Vidyut Vitran Nigam

Ltd., Dakshinanchal Vidyut Vitran Nigam Ltd., Paschimanchal Vidyut

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Vitran Nigam Ltd. & Kanpur Electricity Supply Company. The drawl of

NPCL (to the extent as agreed in PPA) shall be considered with the

requirement of Paschimanchal Vidyut Vitran Nigam Ltd. Unscheduled

Interchange, if any, from Anpara A&B shall be booked on UPPCL who

shall reallocate the same among distribution companies in proportion to

their shares in Anpara A&B. Unscheduled Interchange, in case of NPCL,

shall be booked directly to NPCL.

7.0 Establishment of SLDC Power System unit established and controlled by UP Power Corporation

Ltd. has been discharging all functions of SLDC under the Indian

Electricity Act,1910, and thereafter under ABT order passed by CERC.

Section 31 of EA, 03 provides for the State Govt. to establish State Load

Despatch Centre to be operated by a Govt. company or any authority or

Corporation established or constituted by or under any State Act and until

such establishment is made, the STU shall operate the State Load

Despatch Centre. Under this section of the Act,03, SLDC shall not engage

in business of trading in electricity. UPPCL, a Company formed under

section 13 of the UP Electricity Reforms Act,1999, was primarily formed

to undertake transmission and distribution of electricity in the State. Under

section 31 read with section 40 & 41 of EA,03, the transmission licensee is

not permitted to engage in trading of electricity and for this reason, the re-

organisation of UPPCL has become imminent because of it being a

holding company of four distribution companies engaged in the business

of distribution of electricity and thus have inherent power to engage in

trading in electricity. The State Govt. has formed a company, Uttar

Pradesh Power Transmission Corporation Ltd. (UPPTCL) incorporated on

13th July, 06 under the Companies Act, 1956. In the matter of approval of

Power Purchase Agreement, Pet no.356-363 of 2006 UPPCL Vs. M/s

Bajaj Hindustan Ltd., UPPCL has stated that UPPTCL has been notified

as STU under EA,03 by the State Govt. Therefore in view of above,

UPPCL can no longer operate and exercise administrative control on its

unit ‘Power System’ which is discharging functions of SLDC.

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The State Govt. was requested by the Commission to establish

SLDC under section 31 of the Act or authorize STU to operate State Load

Dispatch Centre vide UPERC letter no. UPERC/D(G)/Secy/Transys/2442

dt.29.12.06.

Establishment of SLDC and its operation by STU is a pre-condition

for implementation of ABT. Therefore, existing ‘Power System’ unit of

UPPCL shall be recognized as SLDC and UPPCL shall transfer its

functional and administrative control under UPPTCL immediately until the

State Govt. decides otherwise. The above decision of the Commission

might not be construed as usurping the power of the State Government.

The State Governmentt. shall have final decision in this regard and till that

time, the above arrangement shall operate.

8.0 Applicable Regulations, Codes & Definitions

Under ABT, due regard shall be made, inter alia, to following:

(a) CERC order dt.4.1.2000 passed in matter of Availability Based Tariff

and other orders passed in the matter of ABT from time to time.

(b) UPERC (Terms & Conditions of Generation tariff), Regulations, 2004

and amendments thereof.

(c) UPERC (Terms & Conditions of Open Access) Regulations, 2004 and

amendments thereof.

(d) UPERC (Procedure, Terms & Conditions for Payment of Fee &

Charges to State Load Despatch Center and other related provisions)

Regulation, 2004 and amendments thereof.

(e) UPERC (Terms and Conditions for Supply of Power and Fixation of

Tariff for sale of power from Captive Generating Plants, Co-generation,

Renewable Sources of Energy and Other Non-Conventional Sources

of Energy based Plants to a Distribution Licensee) Regulations, 2005

and amendments thereof.

(f) UPERC (Terms and Conditions for Determination of Transmission

Tariff ) Regulations, 2006

(g) Indian Electricity Grid Code (IEGC)as amended from time to time

(h) UP Electricity Grid Code (UPEGC) as amended from time to time.

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For the purpose of this order-

(i) beneficiary shall mean Licensee or any person who has purchased the

capacity from a generating station.

(ii) Open access customer means a beneficiary or a person using or

intending to use the transmission system and/or distribution system of

the licensee in the State for transmission or wheeling of electricity.

(iii) State Sector Generating Stations (SSGS) shall mean Generating

station connected with State Transmission System including IPP,

Captive Generating plant, Co-generation plant and non-conventional

energy sources (NCES) based plant.

(iv) Inter-State Generating Stations (ISGS) includes Central Sector

Generating Station (CSGS) and any other generating station which has

arrangement of supply of electricity to more than one State. ISGS shall

also include such generating station which has a power purchase

agreement to supply electricity to State of UP involving territories of UP

and any other State entitled for free power.

(v) User shall mean to refer to the persons/agencies using state

transmission system.

Words and expressions used and not defined herein shall have meanings

assigned to them in the EA,03 and relevant Regulations and Codes.

9.0 Duties, Obligations and Functions of SLDC

The duties, obligations and functions of SLDC shall be as specified under

section 32 & 33 of the Act,03 read with provisions of orders, Regulations &

Codes mentioned in Para 8 above.

10.0 Duties, Obligations and Functions of STU

The duties, obligations and functions of STU shall be as specified under

section 39,40 &41 of the Act,03 read with provisions of orders,

Regulations & Codes mentioned in Para 8 above.

Besides above, STU shall also have following function & duties

under ABT to:

(a) provide metering at interface points of generating stations,

distribution companies and open access customer with the

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transmission system and/or distribution system, as the case may

be.

STU shall ensure compliance of requirements of special

energy meters as specified in Annexure-2 of the UP Electricity Grid

Code.

Further, in case open access consumer is connected directly

to a transmission or distribution sub-station, special energy meter

shall be installed at such sub-station for metering purpose.

(b) ensure establishment-operation-maintenance of communication

system between all concerned and SLDC,

(c) record and transfer data to SLDC including meter readings,

(d) take meter readings jointly with a representative of a distribution

company or generating company or open access customer, as the

case may be

(e) periodically check accuracy of meter and take corrective action in

case of metering system is not accurate or has become defective

without disturbing regular recording of energy at the metering point,

(f) minimize the time taken by SLDC in revision of schedule so that

the impact of UI charges could be kept to the minimum,

(g) to formulate a procedure for meeting contingency in long & short

run daily scheduling,

(h) announce the procedure for temporary suspension and re-

assumption of UI in case of grid disturbance.

11.0 Dissemination of information STU & SLDC shall also ensure to put up on web site, the rules or the

procedures framed by them under UPERC (Terms & Conditions of Open

Access) Regulations, 2004 and UPERC (Procedure, Terms & Conditions

for Payment of Fee & Charges to State Load Despatch Center and other

related provisions) Regulation, 2004 and amendments thereof.

12.0 Duties, Obligations and Functions of a generating company The duties, obligations and functions of generating company (State

generating stations, captive generating plants, non-conventional sources

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of energy or any other person supplying electricity within the State),

distribution licensee, other transmission licensees and open access

customer shall be as provided under the Orders, Regulations & Codes,

mentioned in Para – 8 above, read with the provisions of the EA,03.

13.0 Methodology of Scheduling and Calculating Availability The methodology of scheduling and calculating availability shall be as

follows:

(i) The generator shall make an advance declaration of capability of its

generating station. The declaration shall be for that capability which

can be actually made available.

The declaration shall be for the capability of the generating station

to deliver ex-bus MW for the next day either as one figure for the

whole day or as different figures for different periods of the day.

The capability as declared by the generator, also referred to as the

declared capacity, shall form the basis of generation scheduling.

(ii) While making or revising its declaration of capability, the generator

shall ensure that the declared capability during peak hours is not

less than that during other hours. However, exception to this rule

shall be allowed in case of tripping/re-synchronisation of units as a

result of forced outage of units.

(iii) Generation scheduling shall be done in accordance with the

operating procedure stipulated in the Indian Electricity Grid

Code/U.P. Electricity Grid Code.

(iv) Based on the declaration of the State generator, the State Load

Despatch Centre shall communicate their shares to the

beneficiaries out of which they shall give their requisitions.

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The beneficiaries, while making requisition, shall also keep in its

consideration the availability from Central Sector Generating

Stations already communicated to it by Regional Load Despatch

Centre (RLDC) through State Load Despatch Centre, Co-

generators, Mini/Micro Hydels and other sources etc. (v) Based on the requisitions given by the beneficiaries and taking into

account technical limitations on varying the generation, availability

from Central Sector Generating Stations as finalized by Regional

Load Despatch Centre and also taking into account transmission

system constraints, if any, the State Load Despatch Centre shall

prepare the economically optimal generation schedules and drawal

schedules and communicate the same to the generator and the

beneficiaries.

(vi) The scheduled generation and actual generation shall be ex-bus at

the generating station. For beneficiaries, the scheduled and actual

net drawals shall be at their respective receiving points.

(vii) For calculating the net drawal schedules of beneficiaries, the

transmission losses shall be apportioned to their drawal schedules

for the time being.

Transmission Losses shall be calculated as per Regulation

3.3 of UPERC (Terms and Conditions for Detemination of

Transmission Tariff ) Regulations, 2006.

Provided that a refinement may be specified by the

Commission in future depending on the preparedness of the

respective State Load Despatch Centre.

(viii) In case of forced outage of a unit, the State Load Despatch Centre

shall revise the schedules on the basis of revised declared

capability. The revised declared capability and the revised

schedules shall become effective from the 4th time block, counting

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the time block in which the revision is advised by the generator to

be the first one.

(ix) In the event of bottleneck in evacuation of power due to any

constraint, outage, failure or limitation in the transmission system,

associated switchyard and sub- stations owned by the State

Transmission Utility or any other transmission licensee involved in

inter-state transmission (as certified by the State Load Despatch

Centre ) necessitating reduction in generation, the State Load

Despatch Centre shall revise the schedules which shall become

effective from the 4th time block, counting the time block in which

the bottleneck in evacuation of power has taken place to be the first

one. Also, during the first, second and third time blocks of such an

event, the scheduled generation of the generating station shall be

deemed to have been revised to be equal to actual generation, and

the scheduled drawals of the beneficiaries shall be deemed to have

been revised to be equal to their actual drawals.

(x) In case of any grid disturbance, scheduled generation of all the

generating stations and scheduled drawal of all the beneficiaries

shall be deemed to have been revised to be equal to their actual

generation/drawal for all the time blocks affected by the grid

disturbance. Certification of grid disturbance and its duration shall

be done by the State Load Despatch Centre.

(xi) Revision of declared capability by the generator(s) and requisition

by beneficiary(ies) for the remaining period of the day shall also be

permitted with advance notice. Revised schedules/declared

capability in such cases shall become effective from the 6th time

block, counting the time block in which the request for revision has

been received in the State Load Despatch Centre to be the first

one.

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(xii) If, at any point of time, the State Load Despatch Centre observes

that there is need for revision of the schedules in the interest of

better system operation, it may do so on its own, and in such

cases, the revised schedules shall become effective from the 4th

time block, counting the time block in which the revised schedule is

issued by the State Load Despatch Centre to be the first one.

(xiii) Generation schedules and drawal schedules issued/revised by the

State Load Despatch Centre shall become effective from

designated time block irrespective of communication success.

(xiv) For any revision of scheduled generation, including post facto

deemed revision, there shall be a corresponding revision of

scheduled drawals of the beneficiaries.

(xv) A procedure for recording the communication regarding changes to

schedules duly taking into account the time factor shall be evolved

by the State Transmission Utility.

(xvi) The banking as well as withdrawal of power, by captive, co-

generation, solar, municipal waste, industrial wastes including solid,

semi solid, liquid and gaseous wastes and biogas generating plant

shall be subject to day ahead scheduling.

14.0 Procedure for Scheduling The following procedure shall be observed for scheduling-

(i) Each day, starting from 00.00 hours to 24.00 hours, shall be divided

into 96 time blocks of 15 minutes intervals for the purposes of scheduling and despatch and energy accounting.

(ii) By 9.00 a.m. every day all SSGS shall advise the SLDC, the station wise ex-power plant MW and MWh capability as foreseen for each time block of the next day i.e. from 00.00 hours to 24.00 hours of the following day.

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(iii) The SLDC shall also receive information from RLDC regarding the MW and MWh entitlements for the State beneficiaries from Central Sector Generating stations for each 15 minute time blocks for the next day by 10.00 AM.

(iv) SLDC shall compile the above information, taking in to account bilateral exchanges, if any, and apportion it for the next day based on the entitlements of the beneficiaries in the State Sector Generating Stations, Inter-State Generating Stations and bilateral exchanges and communicate the same to all the beneficiaries by 11.00 AM.

(v) The beneficiaries shall prepare the drawal schedule according to their foreseen load pattern and their own generating capability (if any, from generating plants such as that owned by the beneficiary itself, Captive Plants and NCES based plants connected to their distribution system), and advise the SLDC by 1.00 PM. their drawal schedule for each of the SSGS and ISGS and long term, short term bilateral trades in which they have shares.

(vi) SLDC shall compile the drawal schedules received from beneficiaries and convey by 3.00 PM. the drawal schedule for each of ISGS to RLDC and SSGS in which the beneficiaries have shares, long term bilateral interchanges and approved short-term bilateral interchanges.

(vii) The SLDC may give standing instruction to RLDC such that RLDC itself may decide the drawal schedules for the State.

(viii) By 5.00 PM each day, the SLDC shall receive the “net drawal schedule” for the State in MW from RLDC for each 15 minute time block, for the next day.

(ix) SLDC shall apportion the net drawal schedule for the State received from RLDC among the beneficiaries based on their entitlements approved by Government of UP (GOUP) in the ISGS and bilateral trades. SLDC shall also revise the despatch schedule of each of the SSGS (if necessary) in the light of net drawal schedule communicated by RLDC. SLDC shall convey by 6.00 PM. each day the following:

(a) The ex-power plant “despatch schedule” to each SSGS in MW

for each 15-minute time block, for the next day.

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(b) The “net drawal schedule” from ISGS, SSGS and bilateral trades to each of the beneficiary in MW for each 15-minute time block, for the next day.

(x) While finalizing the drawal and despatch schedules as above, the

SLDC shall ensure that the same are operationally reasonable, particularly in terms of ramping up and ramping down rates and ratio between minimum and maximum generation. SLDC shall also check that the resulting power flows do not give rise to any transmission constraints. In case of any foreseen generation/transmission constraints, the SLDC shall moderate the schedules to the required extent, under intimation to the concerned beneficiaries/SSGS.

(xi) The summation of the station-wise ex-power plant generation

schedules for all the SSGS/ISGS, along with bilateral exchanges, if any, after deducting the apportioned transmission losses (estimated as per 13.0 (vii)), shall constitute the beneficiaries net drawal schedule.

(xii) The Beneficiaries /State Sector Generating Companies may inform

SLDC about any modification / changes to be made in the drawal schedule and bilateral inter changes/foreseen despatch capabilities, if any, to SLDC by 9.00 PM.

(xiii) The SLDC shall inform any modification / changes to be made in

the station wise drawal schedule of ISGS and bilateral inter changes, if any, to RLDC by 10.00 PM.

(xiv) The SLDC shall receive from RLDC the final ‘drawal schedule’

against Central allocation along with bilateral exchanges of power, if any, by 11.00 PM.

(xv) The SLDC shall review and revise the despatch schedules of the

SSGS and drawal schedules of the beneficiaries in the light of final drawal schedule received from RLDC and convey by 11.30 PM:

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(a) The final ex-power plant “despatch schedule” to each SSGS in MW for each 15-minute time block, for the next day.

(b) The final “net drawal schedule” from ISGS, SSGS and bilateral trades to each of the beneficiary in MW for each 15-minute time block, for the next day.

(xvi) In case of forced outage of a SSGS unit, SLDC shall revise the

schedules on the basis of revised declared capability by the SSGS. The revised declared capability and revised schedules shall become effective from the 4th time block, counting the time block in which the revision is advised by the SSGS to be the first one.

In case of forced outage of an ISGS unit, SLDC shall

receive revised schedule from RLDC drawn on the basis of revised declared capability by the ISGS. The revised declared capability and revised schedules shall become effective from the 4th time block, counting the time block in which the revision is advised by the ISGS to be the first one.

(xvii) In the event of bottleneck in evacuation of power due to any

constraint, outage, failure or limitation in the intra- State Transmission System, associated switchyard and sub- stations owned by the State Transmission Utility or any other transmission licensee involved in intrastate transmission (as certified by the SLDC) necessitating reduction in generation, the SLDC shall revise the schedules which shall become effective from the 4th time block, counting the time block in which the bottleneck in evacuation of power has taken place to be the first one. Also, during the first, second and third time blocks of such an event, the scheduled generation of the SSGS shall be deemed to have been revised to be equal to actual generation, and the scheduled drawals of the beneficiaries shall be deemed to have been revised to be equal to their actual drawals.

In the event of bottleneck in evacuation of power due to any

constraint, outage, failure or limitation in the Inter- State

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Transmission System, necessitating reduction in generation of ISGS, the SLDC shall receive revised schedules from RLDC which shall become effective from the 4th time block, counting the time block in which the bottleneck in evacuation of power has taken place to be the first one.

(xviii) In case of any grid disturbance, scheduled generation of all the

SSGS and scheduled drawal of all the beneficiaries shall be deemed to have been revised to be equal to their actual generation/drawal for all the time blocks affected by the grid disturbance. Certification of grid disturbance and its duration shall be done by the SLDC.

(xix) Revision of declared capability by the SSGS and requisition by

beneficiary (ies) during any time block shall also be permitted with advance notice. Revised schedules/declared capability in such cases shall become effective from the 6th time block, counting the time block in which the request for revision has been received in the SLDC to be the first one.

In case of revision of declared capability by the ISGS and

requisition by beneficiary (ies) during any time block shall also be permitted on intimation from RLDC. Revised schedules/declared capability in such cases shall become effective from the 6th time block, counting the time block in which the request for revision has been received in the RLDC to be the first one. SLDC shall intimate all the State beneficiaries about such modifications in the drawal/despatch schedules and advise them to effect corresponding change in their drawal schedules.

(xx) If, at any point of time, the SLDC observes that there is need for

revision of the schedules in the interest of better system operation, it may do so on its own, and in such cases, the revised schedules shall become effective from the 4th time block, counting the time block in which the revised schedule is issued by the SLDC to be the first one.

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If, at any point of time, the RLDC observes that there is need for revision of the schedules in the interest of better system operation, it may do so on its own, and in such cases, the revised schedules shall become effective from the 4th time block, counting the time block in which the revised schedule is issued by the RLDC to be the first one. On intimation of such revision by RLDC, SLDC shall intimate all the State beneficiaries about such modifications in the drawal/despatch schedules and advise them to effect corresponding change in their drawal schedules.

(xxi) To discourage frivolous revisions, the SLDC may, at its sole

discretion, refuse to accept schedule/capability revision.

(xxii) After the operating day is over at 2400 hours, the schedule finally implemented during the day (taking into account all before-the-fact changes in despatch schedule of generating stations and drawal schedule of the Users) shall be issued by SLDC. These schedules shall be the datum for commercial accounting. The average ex-bus capability for each of the generating stations shall also be worked out based on all before-the-fact advise to SLDC.

(xxiii) SLDC shall properly document all above information i.e. station-

wise foreseen ex-power plant capabilities advised by the generating stations, the drawal schedules advised by beneficiaries, all schedules issued by the SLDC, and all revisions/updating of the above.

(xxiv) The procedure for scheduling and the final schedules issued by

SLDC, shall be open to all users for any checking/verification, for a period of 5 days. In case any mistake/omission is detected, the SLDC shall forthwith make a complete check and rectify the same.

(xxv) A procedure for recording the communication regarding changes to

schedules duly taking into account the time factor shall be evolved by SLDC in consultation with STU and Users.

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(xxvi) SLDC shall assign suitable functions to the ALDCs to help it in discharge of its different functions under section-32 of the EA-2003 including scheduling and despatch.

(xxvii) Availability declaration, requisitions and schedules shall be rounded

off to one if they are made in fraction.

15.0 Unscheduled Interchange

For the purpose of unscheduled interchange -

(1)Variation between actual generation or actual drawal and scheduled

generation or scheduled drawal shall be accounted for through

Unscheduled Interchange (UI) Charges. UI for a generating station shall

be equal to its actual generation minus its scheduled generation. UI for a

beneficiary or an open access customer shall be equal to its total actual

drawal minus its total scheduled drawal. UI shall be worked out for each

15 minute time block. Charges for all UI transactions shall be based on

average frequency of the time block and the following rates as specified

by CERC in notification dt.26.4.07 or as revised form time to time by

CERC;

Average frequency of time block (Hz) Below Not below

UI Rate (Paise per kWh)

---- 50.50 0.0 50.50 50.48 6.0 50.48 50.46 12.0 ----- ----- ----- ----- ----- -----

49.84 49.82 204.0 49.82 49.80 210.0 49.80 49.78 219.0 49.78 49.76 228.0 ----- ------ ------ ----- ------ ------

49.54 49.52 336.0 49.52 49.50 345.0 49.50 49.48 361.0 49.48 49.46 377.0 ----- ----- ----- ---- ----- -----

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49.04 49.02 729.0 49.02 ----- 745.0

(Each .02 Hz step is equivalent to 6 Paisa/KWh in 50.5- 49.8 Hz frequency

range, to 9 paisa/KWh in 49.8-49.5 Hz frequency range and to 16 paisa/KWh in 49.5-49.02 Hz).

(2) State & bilateral Inter -state Generating Stations:

(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 State Load

Despatch Centre shall investigate so as to ensure that there is no

gaming, and if gaming is found by the State Load Despatch 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 adjusted in UI account of beneficiaries in the ratio of their capacity

share in the generating station.

(iii) On operation, actual generation of co-generation, solar, municipal waste,

industrial wastes including solid, semi solid, liquid and gaseous wastes

and bio-gas generating plant referred to as (NCES) shall be deemed as

the actual schedule.

16.0 Reactive Power (i) The beneficiaries shall provide local Var compensation/generation

such that they do not draw VArs from the EHV grid, particularly under low-voltage condition although it may not be possible at present. Therefore, to discourage VAr drawals by Beneficiaries or an open access customer (OAC) connected to the State Power Grid; VAr exchanges shall be allowed and priced as follows:

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(a) pay for VAr drawal when voltage at the metering point is below 97%

(b) get paid for VAr return when voltage is below 97% (c) get paid for VAr drawal when voltage is above 103% (d) pay for VAr return when voltage is above 103%.

(ii) Provided that there shall be no charge/payment for VAr drawal/return by a Beneficiary/OAC on its own line (radial line) emanating directly from a generating station.

(iii) The charge/payment for VArs, shall be at a nominal paise/kVArh rate as may be specified by CERC from time to time, and will be between the Beneficiary or OAC and the State Reactive Pool Account operated by SLDC for VAr interchanges.

(iv) Notwithstanding the above, SLDC may direct a beneficiary or OAC to curtail its VAr drawal/injection in case the security of grid or safety of any equipment is endangered.

(v) In general, the Beneficiaries or OAC shall endeavor to minimize the Var drawal at an interchange point when the voltage at that point is below 95% of rated, and shall not return VAr when the voltage is above 105%. ICT taps at the respective drawal points may be changed to control the Var interchange as per a Beneficiary’s or OAC request to the SLDC, but only at reasonable intervals as instructed by SLDC.

(vi) Switching in/out of all 400 KV and 220 KV bus and line Reactors and capacitors throughout the State Power Grid shall be carried out as per instructions of SLDC. Tap changing on all 400/220 KV or 400/132 KV or 220/132 KV ICTs shall also be done as per SLDCs instructions only.

(vii) The SSGS shall generate/absorb reactive power as per instructions of SLDC, within capability limits of the respective generating units, that is without sacrificing on the active generation required at that time. No payments shall be made to the generating companies for such VAr generation/absorption, except in cases, i.e. a hydro generating station being asked to run in synchronous condenser mode.

(viii) VAr exchange directly between Beneficiaries and/or OACs on the interconnecting lines owned by them (singly or jointly) generally address or cause a local voltage problem, and generally do not

30

have an impact on the voltage profile of the regional grid. Accordingly, the management/control and commercial handling of the VAr exchanges on such lines shall be as per following provisions, on case-by-case basis as below:

(a) The two concerned Beneficiaries and/or OAC may mutually

agree not to have any charge/payment for VAr exchanges

between them on an interconnecting line.

(b) The two concerned Beneficiaries and/or OAC may mutually agree to adopt a payment rate/scheme for VAr exchanges between them identical to or at variance from that specified by CERC for VAr exchanges with Inter State Transmission System. If the agreed scheme requires any additional metering, the same shall be arranged by the concerned Beneficiaries and/or OAC.

(c) In case of a disagreement between the concerned Beneficiaries or OAC (e.g. one party wanting to have the charge/payment for VAr exchanges, and the other party refusing to have the scheme), the scheme as specified in Annexure-3 of the UP Electricity Grid Code shall be applied. Per kVArh rate shall be as specified by CERC for VAr exchanges with Inter State Transmission System.

(d) The computation and payments for such VAr exchanges shall be effected as mutually agreed between the two Beneficiaries and/or OAC.

17.0 Metering Arrangements

Metering arrangements, including installation, testing and operation and

maintenance of meters and collection, transportation and processing of

data required for accounting of energy exchanges and average frequency

on 15 minute time block basis shall be organised by the State

Transmission Utility in consultation with State Load Despatch Centre. All

concerned entities (in whose premises the special energy meters are

installed), shall fully cooperate with the State Transmission Utility/State

Load Despatch Centre and extend the necessary assistance by taking

weekly meter readings and transmitting them to the State Load Despatch

Centre. The State Load Despatch Centre, on the basis of processed data

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of meters along with data relating to declared capability and schedules

etc., shall issue the State Accounts for energy as well as UI charges on

weekly basis. UI accounting procedures, framed by SLDC under

regulation 6(iii) of UPERC (Procedure, Terms & Conditions for Payment

of Fee & Charges to State Load Despatch Center and other related

provisions) Regulation, 2004, shall be governed by the orders of the

Central Commission. However, the UI mis-match, if any, is calculated on

daily basis and apportioned to all UI pool members in the ratio 50:50 to the

paying and receiving members in the ratio of the original UI amount drawn

out.

It is noted that the V-SAT links have not been established for

automatic and real time transfer of information to SLDC. Therefore, STU

shall –

(i) establish V-SAT links at the earliest,

(ii) arrange adequate MRI instrument to ensure that transfer of data to

SLDC for energy/UI accounting is not delayed due to inadequacy or

faulty MRI instruments,

(iii) ensure sustained development of SCADA from present 220 KV

system to lower voltage system upto 33 KV,

(iv) update the requirement of additional ABT meters due to expansion

of the transmission system and its interfacing with a generating

station or distribution systems or a licensee or a Open Access

customer, and

(vi) ensure to incorporate these features in the transmission system and

expansion planning to be undertaken u/s 39 of the Act, 03 in co-

ordination with all concerned.

18.0 Billing & Payment Billing & payment shall be done in following manner:

(i) The beneficiaries shall pay to the respective SSGS, Capacity charges corresponding to plant availability and Energy charges for the scheduled despatch, as per the relevant notifications and

32

orders of UPERC. The respective Generating Stations shall issue the bills for these charges to each beneficiary on monthly basis.

(ii) The sum of the above two charges from all beneficiaries shall fully

reimburse the SSGS for generation according to the given despatch schedule. In case of a deviation from the despatch schedule, the concerned SSGS shall be additionally paid for excess generation through the UI mechanism approved by UPERC. In case of actual generation being below the given despatch schedule, the concerned SSGS shall pay back to the concerned beneficiary through the UI mechanism for the shortfall in generation.

(iii) The summation of station-wise ex-power plant despatch schedules

from each generating station and any bilaterally agreed interchanges of each beneficiary shall be adjusted for transmission losses, and the net drawal schedule so calculated shall be compared with the actual net drawal of the beneficiary. In case of excess drawal, the beneficiary shall be required to pay through the UI mechanism for the excess drawal of energy. In case of underdrawal, the beneficiary shall be paid back through the UI mechanism, for the energy not drawn.

(iv) When requested by a beneficiary, SLDC shall assist the beneficiary

in locating a buyer/seller and arranging a scheduled interchange within or outside the state boundary. The SLDC shall act only as a facilitator (not a trader / broker), and shall assume no liabilities under the agreement between the parties, except (i) ascertaining that no component of the power system of any other user shall be overstressed by such interchange/trade, and (ii) incorporating the agreed interchange/trade in the net interchange schedules for the concerned Beneficiary.

(v) State Energy Accounts and the statement of UI charges shall be

prepared by the SLDC on a weekly basis and these shall be issued to all the Beneficiaries by Saturday for the seven-day period ending on the previous Sunday mid-night. Payment of UI charges shall

33

have a high priority and the concerned Beneficiaries/party shall pay the indicated amounts within 10 (ten) days of issue of the statement into a state UI pool account operated by the SLDC. The Beneficiaries/party who have to receive the money on account of UI charges would then be paid out from the State UI pool account, within three (3) working days.

(vi) The UI charges billed by RLDC under section 6.1(d) of IEGC shall

be allocated to the beneficiaries based on the State Energy Account prepared by SLDC within two working days from the receipt of the Weekly Bill. The concerned beneficiary shall settle the bill within seven days from the date of issue of the Bill.

(vii) The SLDC shall also issue the weekly statement for VAr charges,

to all Beneficiaries who have a net drawal/injection of reactive energy under low/high voltage conditions. These payments shall also have a high priority and the concerned Beneficiaries shall pay the indicated amounts into State Reactive Account operated by the SLDC within 10 (ten) days of issue of statement. The Beneficiaries who have to receive the money on account of VAr charges would then be paid out from the State Reactive Pool Account, within three (3) working days. SLDC shall also make/receive payments from the regional reactive account for reactive VArs drawn/supplied for inter-regional transfer of power.

(viii) If payments against the above UI and VAr charges are delayed by

more than two days, i.e., beyond twelve (12) days from statement issue, the defaulting beneficiary shall have to pay simple interest @ 0.04% for each day of delay. The interest so collected shall be paid to the beneficiaries who had to receive the amount, payment of which got delayed.

(ix) The money remaining in the state reactive account after pay-out of

all VAr charges upto 31st March of every year shall be utilized for training of the SLDC operators, and other similar purposes which would help in improving/streamlining the operation of the respective State Power Grid.

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(x) In case the voltage profile of a State Power Grid improves to an

extent that the total pay-out from the regional VAr charges account for a week exceeds the total amount being paid-in for that week, and if the regional state account has no balance to meet the deficit, the pay-outs shall be proportionately reduced according to the total money available in the above account.

(xi) The SLDC shall table the complete statement of State UI account

and the State Reactive Energy account before the State Power Committee formed under the U.P. Electricity Grid Code, on a quarterly basis.

(xii) All 15-minute energy figures (net scheduled, actually metered and

UI) shall be rounded off to the nearest 0.01 MWh. 19.0 Allocation of PPA

UPPCL has sent a draft notification for consideration of GOUP for

allocation of PPAs among distribution companies of the State. UPPCL

may act according to the recommendations made in the said draft

modification for the purpose of this order till GOUP decides the issue. While requisitioning capacity from any generating station, due care

shall be exercised that the minimum schedule is not less than the

operational capability of machines. If a generating station has prescribed

any floor capacity due to vintage, the same shall be taken care of.

Besides allocation of capacities, the draft notification also proposes

that transmission charges to PGCIL, UPPTCL and SLDC shall be

distributed in the ratio of percentage share attributed to each and no

consumer will be fed directly either from state generator or station

transformers or transmission sub-station. Control station or microwave

station or fiber optic station responsible for maintaining the power system

will receive energy from stations supply of particular area. For energy

received from Power Trading Companies through Open Access, UI

charges will be booked to all discoms as per their percentage share

allocation. The Commission has no objection to these proposals.

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20.0 Generating Stations not having PPA etc.:

The Commission has framed Regulations, named at Para 8(e) of this

Order, for sale of electricity from captive generating plants to the

distribution licensee on an agreement reached between them. These

Regulations applies to captive generating plants having installed capacity

of 3 MW or above. There may be plants which don’t have any agreement

for sale of surplus capacity with distribution licensee but seek to sale

capacity that may become surplus at any point of time.

The National Electricity Policy stresses the need for harnessing surplus capacity available with captive generating plants. The clause 5.2.26 of the policy states, “A large number of captive and standby generating stations in India have surplus capacity that could be supplied to the grid continuously or during certain time periods. These plants offer a sizeable and potentially competitive capacity that could be harnessed for meeting demand for power. Under the Act, captive generators have access to licensees and would get access to consumers who are allowed open access. Grid inter-connections for captive generators shall be facilitated as per section 30 of the Act. This should be done on priority basis to enable captive generation to become available as distributed generation along the grid. Towards this end, non-conventional energy sources including co-generation could also play a role. Appropriate commercial arrangements would need to be instituted between licensees and the captive generators for harnessing of spare capacity energy from captive power plants. The appropriate Regulatory Commission shall exercise regulatory oversight on such commercial arrangements between captive generators and licensees and determine tariffs when a licensee is the off-taker of power from captive plant.”

The provision Clause 6.3 of Tariff Policy in this regard is as below:

“Captive generation is an important means to making competitive power available. Appropriate Commission should create an enabling environment that encourages captive power plants to be connected to the grid. Such captive plants could inject surplus power into the grid subject to the same regulation as applicable to generating companies. Firm supplies may be bought from captive plants by distribution licensees using the guidelines issued by the Central Government under section 63 of the Act. The prices should be differentiated for peak and off-peak supply and the tariff should include variable cost of generation at actual levels and reasonable compensation for capacity charges.

36

Alternatively, a frequency based real time mechanism can be used and the captive generators can be allowed to inject into the grid under the ABT mechanism. Wheeling charges and other terms and conditions for implementation should be determined in advance by the respective State Commission, duly ensuring that the charges are reasonable and fair. Grid connected captive plants could also supply power to non-captive users connected to the grid through available transmission facilities based on negotiated tariffs. Such sale of electricity would be subject to relevant regulations for open access.”

In consideration of the aforesaid provisions of the National

Electricity Policy and Tariff Policy , the Commission provides an

arrangement for sale of surplus capacity from the captive generating

plants, which have not signed PPA, as below:

Generating station, connected with the grid and having capacity not

less than 3 MW and does not have PPA signed or entered into any other

contract for supply of power, may inject power into the grid for sale at rate

equivalent to UI rates linked to frequency as specified under Para 15(1)

above. Such generating station shall ensure to have installed ABT

compatible meters at interface points as specified by STU before

supplying power to grid and prior information of such intention given to

SLDC along with other details as may be required by SLDC. Such

generating station shall also establish communication, as specified by

STU, with SLDC and the transfer the data recorded in the interface meters

to SLDC at intervals as may be directed by SLDC. Metering of energy

specified from such generating stations shall be made at the sub-station of

STU to which it connects. After metering arrangement made and

communication system established, the generating station shall

communicate its intention to SLDC for the intention of supplying power

under this provision.

(R.D. Gupta) (P.N Pathak) (Vijoy Kumar) Member Member Chairman

Lucknow; Dated : 24/25Th Sept, 2007